Swedish engineering group Sandvik recorded an 11% organic increase in mining orders in the third quarter, supported by demand for equipment, spare parts and services. Its tungsten-powder business also more than doubled its orders and revenue as tighter global supply and higher prices strengthened the market for the strategic metal.
The results indicate that mining companies continue to invest in operating assets, even as financing for new greenfield developments remains selective. Spending is increasingly directed towards equipment replacement, maintenance, productivity improvements and technologies that can extend the life of existing mines.
Sandvik’s Mining division generated approximately €1.75 billion in orders and €1.76 billion in revenue during the quarter. Revenue increased 23% organically, while adjusted operating earnings reached approximately €383 million, equivalent to a margin of around 21.8%.
Brownfield Investment Drives Mining Equipment Demand
Aftermarket orders increased 16%, reflecting strong equipment utilisation at producing mines and continued spending on replacement parts, maintenance and operational efficiency.
Equipment orders were broadly stable year on year. Excluding major individual contracts, underlying equipment demand increased 23%, indicating stronger purchasing activity across a wider customer base. Sandvik identified brownfield investment at existing mining operations as the principal source of market growth. Established producers are continuing to expand capacity, replace equipment and improve productivity at operating sites.
This trend highlights the difference between investment in producing mines and the development of new projects. Existing operations can often justify expenditure through higher throughput, lower operating costs or longer mine lives, while greenfield projects must overcome permitting, infrastructure and financing challenges before generating revenue. For Europe, improving existing mining operations could be an important part of strengthening raw-material supply alongside the development of new deposits.
Tungsten Prices and Supply Constraints Support Growth
Sandvik’s tungsten-powder business delivered another strong result, with orders and revenue more than doubling year on year amid significantly higher prices and tighter international supply.
Tungsten is used in hard metals, industrial cutting tools, aerospace components, defence applications and advanced manufacturing. Its supply chain is highly concentrated, with China holding a dominant position in primary production and processing. This concentration has increased the strategic importance of businesses capable of combining raw-material sourcing, recycling, powder production and downstream manufacturing.
Sandvik said its vertically integrated business model provides a competitive advantage by connecting primary materials, recycled tungsten, powder processing and the manufacture of cutting tools and related industrial products. Recycling can reduce dependence on imported primary tungsten and provide an alternative feedstock during periods of export restrictions or geopolitical disruption. The latest results therefore highlight the value of downstream processing capabilities as well as the impact of higher commodity prices.
Processing and Recycling Gain Strategic Importance
Sandvik’s performance reflects a broader shift in the mining and industrial supply chains, where access to raw materials is increasingly linked to the ability to process and manufacture them into usable products.
For European manufacturers, diversified sourcing and recycling could help reduce exposure to concentrated international suppliers. However, expanding downstream capacity does not automatically eliminate supply risks, which also depend on feedstock availability, processing costs and market conditions. Sandvik’s latest results did not include announcements of new mine-construction financing or public-sector funding. The reported figures represent customer orders and operating revenue, rather than new investment commitments from the European Investment Bank, Global Gateway or EU member states.
The company also reported an 8% organic decline in orders in its Rock Processing division, partly reflecting a comparison period that included several large contracts.
Mining Investment Remains Selective
Despite weaker orders in Rock Processing, Sandvik’s mining results point to continued investment in operating assets, equipment replacement and productivity improvements.
For investors, the figures suggest that mining expenditure remains strongest where producers can link spending to measurable operational benefits. Tungsten adds another dimension, demonstrating how supply constraints and strategic demand can strengthen the commercial value of processing and recycling businesses. The broader implication for Europe’s critical-minerals strategy is that supply security depends on more than owning mineral deposits. Processing capacity, recycling infrastructure and downstream manufacturing increasingly determine whether strategic raw materials can reach industrial customers reliably.
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