01/07/2015 - 10:30

Thiess wins $137m contract in Chile

01/07/2015 - 10:30

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The mining arm of Cimic Group has won a $137 million operations contract at the Encuentro Oxides open pit copper mine in Chile, in partnership with local mining equipment supplier Emeco Holdings.

Thiess wins $137m contract in Chile
Cimic Group chief executive Marcelino Fernandez Verdes.

The mining arm of CIMIC Group has won a $137 million operations contract at the Encuentro Oxides open pit copper mine in Chile, in partnership with local mining equipment supplier Emeco Holdings.

Thiess will begin pre-strip operations at the Antofagasta Minerals-owned site from today, and is the company’s first contract win in South America.

The four-year project will be delivered in partnership with Emeco, which had been providing services to the project’s previous operator, Fe Grande, and will continue to provide mining and ancillary fleet to support the contract.

“This project, the first venture for Theiss’s new markets division, marks a significant milestone for Thiess as a global mining business,” Cimic chief executive Marcelino Fernandez Verdes said.

Emeco managing director Ken Lewsey said the partnership with Thiess would provide scope to explore other opportunities together.

“Encuentro is currently our largest contract in the Latin American market and allows us to expand our footprint in the region with multiple opportunities already identified,” Mr Lewsey said.

The Encuentro project is estimated to produce an average of 50,000 tonnes of copper cathode per annum.

“Expanding Thiess’s strong mining service capabilities into the Americas, and leveraging our strong base in Australia and Asia, allows us to offer mining solutions to clients in the resource-rich regions of north and South America, in addition to Africa where we currently work,” Thiess managing director Michael Wright said.

Emeco shares were trading 4.9 per cent higher to 8.5 cents each at 10:20am.

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