Finning International said this week that its operations in Chile have been awarded three significant contracts to provide equipment and maintenance services to leading mining companies in Chile. The combined value of the contracts is U.S. $497 million, comprised of $247 million in new equipment and $250 million in maintenance services.
Finning was awarded a $130 million equipment sale along with a letter of intent for a five-year maintenance contract, valued at $120 million, by CAP Mineria for its El Romeral iron ore mine. Capitalizing on Finning’s expanded product portfolio following its acquisition of the former Bucyrus business, the equipment package includes 20 Cat 793F trucks along with three 6060BH hydraulic shovels. The equipment will be included in Finning’s backlog in the fourth quarter and will be delivered throughout 2013 and 2014.
Finning was also awarded a contract valued at $62 million from a large mining company to provide mobile equipment to one of its mines in Chile, which will be delivered in the first quarter of 2013. And an eight-year maintenance services contract valued at $130 million was inked with Codelco, to provide parts and services for equipment sold earlier this year for its El Teniente open pit mine Rajo Sur. This $55 million equipment package will be delivered during the fourth quarter.
“These contract wins are a testament to our leadership position in the mining sector and underscore our commitment to meeting the ongoing needs of our mining customers,” said Marcelo Marchese, president of Finning South America.
Finning, based in Vancouver, B.C., Canada, operates in western Canada, Chile, Argentina, Bolivia, Uruguay, the United Kingdom and Ireland.