Emeco pushing into Chilean mining

Emeco Holdings has invested $50 million to expand its mining equipment rental business into Chile, establishing a new avenue of growth and gaining exposure to a new market.

Perth-based Emeco announced today that its Chilean operations would commence early in financial year 2012-13.

“We believe the fundamentals of the copper-gold market in Chile are very attractive for Emeco,” managing director Keith Gordon said.

“The region is experiencing significant mining volumes today and the forecast growth in volumes over the next five years represents a great opportunity for the business.

“We believe we can build a sustainable business in Chile given that the majority of mines in the region operate towards the lower end of the global cost curve.”

Mr Gordon said the initial $50 million investment would go towards purchasing ten new 240 tonne trucks and related ancillary equipment.

He said the first five trucks were expected to be working early in FY13.

“for the past 18 months we have been focused on optimising our core businesses, improving shareholder returns and exploring opportunities for growth,” Mr Gordon said.

“Chile was identified as an attractive growth market which also provides commodity and market diversification benefits.”

At close of trade today Emeco stocks were up 1.8 per cent, trading at $1.09.