Vancouver-based Finning wins $500M in Chilean mining deals

Finning wins $500M in Chilean mining deals

The world’s largest Caterpillar equipment dealer says it has won three mining contracts in Chile worth a combined $497 million.

Vancouver-based Finning International Inc.says its South American operations were awarded the contracts to provide equipment and maintenance services in the South American nation.

The deals are comprised of $247-million in new equipment and $250-million in maintenance services, according to the firm.

Finning has been awarded a $13-million equipment sale along with a letter of intent for a five-year maintenance contract, valued at $120-million, by CAP Minería for its El Romeral iron ore mine, approximately 500 kilometres north of the Chilean capital of Santiago.

According to Finning, the equipment package includes 20 Cat 793F trucks and three 6060BH hydraulic shovels.

The equipment will be delivered throughout 2013 and 2014.

Finning has also been awarded a contract valued at $62 million from an undisclosed mining company to provide mobile equipment to one of its mines in Chile.

The firm 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 its El Teniente’s new and first open pit mine, Rajo Sul in the Andes mountains.

The $55-million equipment package will be delivered in the fourth quarter of 2012.

Source: Canadian Manufacturing newsletter