Australia-based rental company Emeco is preparing to establish a new mining equipment rental business in Chile beginning July 2012, the company announced on its website. Emeco Holdings Limited approved the final investment decision to expand into the copper-rich mining region of Chile. An initial investment of $50 million has been committed, which represents 10 new 240-tonne trucks plus related ancillary equipment and working capital.
“We believe the fundamentals of the copper-gold market in Chile are very attractive for Emeco,” said managing director and CEO Keith Gordon. “The region is experiencing significant mining volumes today and the forecast growth in volumes over the next five years represents a great opportunity for the business. We believe we can build a sustainable business in Chile given that the majority of mines in the region operate towards the lower end of the global cost curve.”
Ian Testrow, currently president of North American operations, will be responsible for the new business in addition to his North America responsibilities.
Emeco is based in Perth, Australia, with North American operations headquartered in Edmonton, Alberta, Canada. The company is actively involved in rentals in the oil sands region of Alberta, and is No. 85 on the RER 100.