Construction equipment maker Caterpillar Inc believes demand for critical minerals as the clean energy transition gathers pace will translate to solid returns for its mining business, CEO Jim Umpleby said in an interview on Tuesday.
“Mining capital expenditures have been relatively subdued over the last few years and we believe that will increase,” he told Reuters after the company’s investor day meetings. Increased demand of minerals will expand the total addressable marketing in renewables, Umpleby said. “That requires more mining equipment, which gives us an opportunity,” he said.
Caterpillar’s overall cash flow for capex spending increased to $346 million in 2022 from $252 million last year, with the company allocating investments towards scaling tech, artificial intelligence and environment, sustainability and governance services.