Edmonton Sun
BUSINESS Tuesday, July 23, 2002
Finning digs into $39M mining deals
Contracts are with world's largest copper producer
By CP
VANCOUVER -- Finning International Inc., which sells and services the Caterpillar line of construction and mining equipment, has netted $39 million in contracts with the world's largest copper producer.
Finning's Chilean unit has secured a deal with government-owned Codelco for two Caterpillar offroad trucks and a complete maintenance package for the vehicles.
Also, the Vancouver-based firm has renewed a maintenance and repair contract with Codelco for two more years. The contract covers 29 pieces of equipment. The two deals together are worth $39 million, Finning said yesterday.
Shares of Finning were trading at $23.10, down $1.20 - or nearly 5% - on the Toronto Stock Exchange.
"These contracts demonstrate the Chilean copper mine industry's ongoing need for large Caterpillar trucks and Finning's position as the leader in equipment distribution and service support in Chile," said Doug Whitehead, president and chief executive of Finning.
"Chile's vast copper mines - the lowest cost copper mines in the world - continue to represent a tremendous growth opportunity for Finning."
Codelco Chile accounts for 15.9% of global copper production. It is the largest Chilean corporation. In 2001, Codelco produced 1.7 million tons of fine copper.
Finning sells, rents, finances and provides customer support services for Caterpillar equipment and engines, and complementary equipment, in Western Canada, the United Kingdom and Chile.
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