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Emeco wins Chilean mining equipment contract

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Emeco Holdings has won a five year mining equipment hire and rental contract with Chilean contractor Fe Grande.

The five year agreement is predicted to generate revenuves of between $27 million and $32 million annually over the period of the contract.

"This significant project will utilise up to $64 million of our Chilean fleet and represents over 50 per cent utilisaton for this business unit," the company said.

"This is a major win for Emeco in Chile and provides and excellent platform over the next five years to further grow the Chilean business and look for future expansion in Latin America," Emeco CEO Ken Lewsey said.

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

Since opening its Chilean business unit in 2012 Emeco has deployed more than $100 million worth of fleet, averaging 80 per cent utilisation.

Around 40 per cent of this fleet was relocated from other Emeco business units.

Earlier this year the mining equipment hire and rental company announced an exit from Indonesia due to expected poor earnings from the business over the long-term given the unfavourable conditions in the Indonesian mining industry,” it said in a company statement.

“The dynamics of the Indonesian mining industry do not support us maintaining an ongoing presence in this market,” CEO Ken Lewsey said at the time.

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