Emeco wins Chilean contract

Perth-based mining equipment supplier Emeco Holdings has secured an agreement with Chilean mining contractor Fe Grande, which is expected to generate between $27 million and $32 million in revenue per year.

The agreement will allow Emeco to utilise more than 50 per cent, or $64 million worth, of its current Chilean fleet for up to five years.

Emeco chief executive officer Ken Lewsey said the agreement provided the company with an excellent platform to grow its 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 said.

In May, Emeco said it would cop a $41 million writedown after it closed its Indonesian operations, as well as a further $13.5 million tax hit in a series of downgrades.

Emeco’s share price rose by 4.65 per cent to 22.5 cents per share at 12pm.