Finning's US$400 million Codelco sale

Panorama

Finning International has announced that its South American division has received a Letter of Intent from Codelco, Chile's state-owned mining company, that includes the supply of 20 Caterpillar 797 mining trucks and 15 pieces of support equipment, plus a ten-year maintenance and repair contract.

The approximate value of the deal, including the maintenance services, is US$400 million. The Letter of Intent is subject to final project approval by Codelco's Board which is expected in mid 2010. The equipment will be delivered in the first half of 2011 to Codelco's Ministro Hales mine.

Located halfway between Chuquicamata and Calama in northern Chile's Atacama Desert, the Ministro Hales mine development is a copper sulfide deposit with estimated reserves of 219Mt of copper.

"We are extremely pleased to be partnering with Codelco," said Mike Waites, president and chief executive officer of Finning International. "Winning this contract underscores our commitment to our customers and our focus in the mining sector. Mining continues to provide solid growth for Finning and we are proud to have earned the reputation as the leading heavy mining equipment supplier and service partner in the world's largest copper producing region, Chile."

"Providing unrivalled product support is the cornerstone of our business and we look forward to working with Codelco to maximize their equipment productivity," stated Juan Carlos Villegas, president, Finning South America. "The investments we have made to expand our facilities and capabilities in recent years have strengthened our mining presence and further enhanced our ability to meet and exceed the expectations and growing needs of our customers."