Suppliers news: Thiess signs contract in Chile

Queensland, Australia-based contract miner Thiess has landed a A$137-million contract for work at Antofagasta’s Encuentro Oxides open-pit copper project under development in Chile.

Significantly, the deal represents the large contractor’s first foray into the Americas.

The four-year services agreement was announced in July, and Thiess began pre-stripping right away. Once built, the Encuentro Oxides mine could produce 50,000 tonnes of copper cathode per year, starting in the second half of 2016.

Thiess is a division of CIMIC Group (ASX: CIM), which streamlined four divisions (Thiess, Leighton Contractors, HWE and Leighton Asia Mining) into one entity in 2014, creating the world’s largest mine contractor, according to the company. In 2014 Thiess generated A$6.5 billion in revenue and A$1 billion in profit before tax. Outside of Chile, the company operates at 24 mine sites in Australia, Indonesia, India, Mongolia, New Zealand and Botswana. CIMIC has an A$8-billion market capitalization.

“This project, the first venture for Thiess’ New Markets division, marks a significant milestone for Thiess as a global mining business,” CIMIC Group CEO Marcelino Fernandez Verdes said. “Through Thiess’ expert contract mining capabilities, we plan to further diversify into new, reliable markets, including those in the Americas.”