Emeco exits underground contract mining

Australian mining equipment rental company Emeco has sold its underground contract mining business to Macmahon Holdings but will continue to rent underground mining equipment.

The deal sees Emeco’s division Pit N Portal exit contracting, with Macmahon taking on Emeco’s underground mining contracts in return for transferring A$10.1 million (€6.1 million) worth of underground and surface mining equipment to Emeco.

Macmahon has also signed a five year preferred rental supplier and ‘first right to bid’ agreement with Emeco on Macmohan’s equipment rental contracts.

Pit n Portal has now exited contract mining and will operate as Emerco Underground, focused on asset management, equipment rebuilds and rental services.

Ian Testrow, Emeco’s CEO and managing director, said the exit from underground mining contracts would allow it to focus on its core business of underground and surface mining equipment rental.

He added; “Our mid-life asset model, supported by our Force workshops capability, enables us to source, rebuild and refurbish machines at a significantly lower cost than new assets, driven by our scale and engineering capabilities. This cost and quality advantage drives Emerco’s industry leading margins and returns in rental.

“The preferred rental agreement with Macmahon enables us to support the growth of one of Australia’s leading contract miners, in both surface and underground. By supporting Macmahon and our other contracting customers, we can continue to grow our core rental bsuiness”.

Emeco continues to grow With minimal effect felt from Covid-19, mining equip rental firm enjoys revenue and profit growth