Austin Engineering has been awarded a massive three year supply contract with Vale.
The contract, which is a supply agreement, will see equipment supplied to Vale for its Brazilian operations for ongoing production schedules and equipment replacement programs.
The equipment includes products such as dump truck bodies, buckets, and ancillary equipment.
Although the value of this contract is yet to be confirmed, the previous contract for these services was approximately USD$200 million, with the current contract set to be split between two companies, although Austin has confirmed it will receive the larger portion of the contract.
In its first year the contract is predicted to be valued at around USD$59 million worth of equipment.
Vale added that it will then review its equipment requirements after the first year, and every six months after that in light of its needs and budgets.
The miner is also in discussions with Austin over scheduled maintenance programs similar to the kind used by it in the Pilbara.
Austin will provide the equipment from its manufacturing facilities in Colombia and Chile, later assembling on the sites in Brazil.
Michael Buckland, Austin's managing director, stated that "this is a very important contract for the company and it continues our successful strategy for expansion into South America".
"The contract has been in negotiation for over a year and it is pleasing to bring it to a successful conclusion and for Vale to recognise Austin as a preferred supplier of mining products.
"We see this as only a commencement of our expansion strategy in Brazil and we are confident that the establishment of operations in the country will lead to orders from other Brazilian mining customers. There is significant potential for exponential growth in revenue and probability over the coming years from our operations throughout South America."