Emeco wins multi-million dollar Chilean rental contract

Australian mining equipment rental company Emeco has won a five-year contract with a Chilean mining contractor Fe Grande worth between AU$27 million (€19 million) and AU$32 million (€22 million) in revenues a year.

Emeco said the project would use up to AU$64 million (€44.6 million) of its Chilean fleet, or over 50% utilisation.

Emeco CEO Ken Lewsey said the deal was a significant win for Emeco in Chile, providing a platform over the next five years to further grow the Chilean business and look for future expansion in Latin America.

“It supports our longer term ambitions in creating additional value in diversifying our business across geographies, commodities and services,” he added.

In February 2012, Emeco announced its intention to establish a mining equipment rental business in Chile, beginning in July 2012. It said the investment decision was backed by its view of the strong fundamentals of the Chilean copper industry and the prospects for long-term growth in the region.

The company said its Chilean rental fleet was now worth over AU$100 million (€69.6 million) and averaged 80% utilisation. It said around 40% of this fleet had been relocated from other Emeco business units as the company deployed its assets to match market demand.