Chile grants Finning International $500 million in mining contracts

Canadian heavy equipment dealer Finning International (TSX:FTT) said Thursday it has been awarded contracts worth a total of $497 million from several Chilean mining companies, said the firm in a press release.

The largest of the contracts, won by the South American branch of the Vancouver-based firm, is a $130-million equipment sale deal paired with a five-year maintenance letter of intent worth $120 million, awarded by CAP Minera for the El Romeral iron ore mine in northern Chile.

The world’s largest dealer of Caterpillar equipment also received an eight-year maintenance contract, worth $130 million, for $55 million of equipment purchased earlier by Codelco for the Rajo Sur open pit mine at the El Teniente copper operation in Chile.

"We are extremely pleased to secure these significant mining contracts which will help drive our continued growth in the near and distant future," said in a statement Marcello Marchese, president of Finning South America. "These contract wins are a testament to our leadership position in the mining sector and underscore our commitment to meeting the ongoing needs of our mining customers."

Finning operates in western Canada, Chile, Argentina, Bolivia, Uruguay, as well as in the United Kingdom and Ireland.