AUSTIN SECURES MILLION DOLLAR CHILE MINING CONTRACT

AUSTIN SECURES MILLION DOLLAR CHILE MINING CONTRACT

 AUSTIN Engineering (ASX:ANG) has been awarded a $14.5 million contract with a state-owned copper mining company in Chile.

The five-year contract with Codelco is for the provision of heavy equipment lifting and support services for its Gabriela Mistral mine.

The mine, nicknamed Gaby and located 120km south of Calama, has an expected operating life of 15 years.

Additional spot services are expected to boost the base value of the contract by between $2.5 and $4 million dollars over its life.

The contract will commence mid-September.

The Brisbane-based company’s share price increased 5.85 per cent to $4.34 on the back of today’s news.

Managing director Michael Buckland says the expansion of Austin’s business in the Calama area will provide further revenue growth opportunities.

“The Gaby contract provides five years of base earnings contribution plus additional earnings from the provision of spot services for our best margin-performing business,” says Buckland.

ANG has recently secured dump truck tray repair work from the Gaby mine and will chase more repair work from the mine and the wider Codelco organisation, which boasts five large mines in the area.

The latest news follows the award of a three-year contract for on-site services and off-site repairs for Codelco’s Ministro Hales mine as announce by Austin on August 7.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

A game changer? Aspiring to the new standard on workplace mental health
Partner Content
Work health and safety regulators have been more active in the area of mental health ri...
Aon
Advertisement

Related Stories

Wood Tech plans PPE manufacturing boost with $12m Rogers Industries acquisition

Wood Tech plans PPE manufacturing boost with $12m Rogers Industries acquisition

Manufacturer The Wood Tech Group will strengthen its diversificatio...

Tomas Steenackers’ National Optical Care expands further in Queensland

Tomas Steenackers’ National Optical Care expands further in Queensland

National Optical Care (NOC), founded by 2018 Australian Young Entre...

WA to open quarantine-free travel bubble with QLD from Friday

WA to open quarantine-free travel bubble with QLD from Friday

Western Australian Premier Mark McGowan has announced his state&nbs...

Screen Queensland to begin construction on new Cairns film studio in 2022

Screen Queensland to begin construction on new Cairns film studio in 2022

Business is booming in the Queensland screen sector and Cairns is s...