Emeco Holdings Wins Five Year Equipment Contract
Chilean mining contractor Fe Grande has awarded Emeco Holdings with a five year equipment hire and rental contract.
"This is a major win for Emeco in Chile and provides an excellent platform over the next five years to further grow the Chilean business and look for future expansion in Latin America," Emeco CEO Ken Lewsey said.
"This significant project will utilize up to $64 million of our Chilean fleet and represents over 50 percent utilization for this business unit.”
The contract is expected to generate roughly $32 million annually over the period of the contract.
"It supports our longer term ambitions in creating additional value in diversifying our business across geographies, commodities, and services," Lewsey said.
Since 2002, Emeco has implemented more than $100 million worth of fleet.
Fe Grande is a Chilean contractor engaged in the construction of public works projects including highways, bridges, mine site development, tunnels and hydro plants.
Mining equipment growth
According to a new market report by Transparency Market Research, the global mining equipment market is expected to reach $117 billion by 2018.
Large project in Brazil, Russia, Australia, Africa another regions are expected to drive the mining equipment industry in coming years. The surface mining equipment sector accounts for nearly 37 percent of the market.
Asia Pacific accounted for the largest regional market for mining equipment at 60 percent. The region is expected to be the fastest growing region in the coming years due to increased production and related machinery sales in India, China and Indonesia.
