AUSTIN SECURES MILLION DOLLAR CHILE MINING CONTRACT
13 August 2013,
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.