re: I need help to identify a component on speed control circuit board

Yes and yes you are reading it correctly, and an equivalent would be OK.
A higher rating would improve reliability as long as it fits the component location on the PCB.

I am a little surprised its only rated at 3 Amps I would have considered 5 Amp or upward suitable.

That is one impressive sander so lets hope you get it purring again. I would be at a lost without mine, considering the amount of time is saves and the finish it produces, my dust collector hates it though as it blocks the cloth filters fairly quickly, regardless of the deputy.