Finning Awarded Mining contracts in Chile valued at approximately $500 Million (US)
Friday, Nov 09, 2012Finning International Inc. (TSX:FTT) announced today that its South American operations 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 $497 million (US), comprised of $247 million in new equipment and $250 million in maintenance services.
Finning has been 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 their El Romeral iron ore mine. Capitalizing on Finning's expanded product portfolio following its acquisition of the former Bucyrus business, the equipment package includes twenty Cat 793F trucks along with three 6060BH hydraulic shovels. The equipment will be included in Finning's backlog in Q4 2012 and will be delivered throughout 2013 and 2014.
In addition, Finning has been awarded a contract valued at $62 million from a large mining company to provide mobile equipment to one of its mines in Chile. The equipment will be included in the Q4 2012 backlog and delivered in the first quarter of 2013.
Finning has also secured an eight-year maintenance services contract valued at $130 million with Codelco. Under this contract, Finning will provide parts and services for equipment sold earlier this year to Codelco for their El Teniente's new and first open pit mine, Rajo Sur. This $55 million equipment package, which is included in the September 30, 2012 backlog, is being delivered in the fourth quarter of this year.
"We are extremely pleased to secure these significant mining contracts which will help drive our continued growth in the near and distant future," said Marcello Marchese, president of Finning South America. "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."
Finning International Inc. (TSX:FTT) is the world's largest Caterpillar equipment dealer delivering unrivalled service to customers since 1933. Finning sells, rents and services equipment and engines to help customers maximize productivity. Headquartered in Vancouver, B.C., the Company operates in western Canada, Chile, Argentina, Bolivia, Uruguay, as well as in the United Kingdom and Ireland.