VANCOUVER, British Columbia, Sept. 16, 2019 (GLOBE NEWSWIRE) -- Finning International Inc. (FTT.TO) ("Finning") announced today that its South American operation has been awarded a contract by Teck Resources Limited (“Teck”) to deliver new equipment and product support to Teck’s Quebrada Blanca Phase 2 (“QB2”) operations in northern Chile.
Finning will supply an initial fleet of Caterpillar 794AC electric drive off-highway trucks and other large mining machines to Teck’s QB2 open pit copper mine. The accompanying product support agreement for the initial fleet runs for five years.
In addition, Finning will work closely with Caterpillar to provide Teck’s QB2 operations with Caterpillar’s Command for Hauling system, Caterpillar’s 794AC AHS (Autonomous Haulage Technology) kits, and ancillary kits to enable autonomous operations as QB2 ramps up to full copper production in 2022.
"We are pleased to partner with Teck in developing QB2, one of the world’s premier copper assets, and are excited to deliver and support the first fleet of electric drive, autonomous off-highway trucks in Chile. Our goal is to support Teck in operating efficiently and cost effectively, while improving productivity and safety," said Scott Thomson, president & CEO, Finning International. “Our Integrated Knowledge Centre in Antofagasta, Chile is using data-driven insights and innovative processes and technologies to reduce cost per ton and improve equipment availability for our customers. We remain constructive on the long-term outlook for copper and are well positioned to capture equipment and product support opportunities as mining activity in Chile begins to recover,” concluded Mr. Thomson.
“Working with Teck and our dealer Finning, our experts will provide QB2 state-of-the art technology and services to help it operate with greater safety and productivity,” said Denise Johnson, group president Resource Industries, Caterpillar Inc. “Chile remains an important region of the world for mining, and we are pleased to be able to be part of Teck’s operations.”
Finning International is the world's largest Caterpillar equipment dealer delivering unrivalled service to customers for over 85 years. Finning sells, rents, and provides parts and service for equipment and engines to help customers maximize productivity. Headquartered in Vancouver, B.C., the Company operates in Western Canada, Chile, Argentina, Bolivia, the United Kingdom and Ireland.
About Quebrada Blanca Phase 2(1)
The QB2 project is one of the world’s largest undeveloped copper resources located in Tarapacá Region of northern Chile. When complete, QB2 will be a premier asset, with low operating costs, an initial mine life of 28 years, and significant potential for further growth. Construction of QB2 was sanctioned by the project partners in December 2018. First copper production is planned for the second half of 2021.
Teck holds an indirect 60% interest in Compañía Minera Teck Quebrada Blanca SA ("QBSA") which owns QB2. Sumitomo Metal Mining Co., Ltd. and Sumitomo Corporation together have a collective 30% indirect interest in QBSA. ENAMI, a Chilean state agency, has a 10% non-funding interest in QBSA.
|Finning Investor Relations||Finning Media & Government Relations|
|Mauk Breukels||Elisha McCallum|
|Vice President, Investor Relations & Corporate Affairs||Director, Global Communications|
|(604) 331-4934||(778) 668-0185|
This news release contains statements about Finning’s business outlook, objectives, plans, strategic priorities and other statements that are not historical facts. A statement Finning makes is forward-looking when it uses what Finning knows and expects today to make a statement about the future. Forward-looking statements may include terminology such as aim, anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, project, seek, should, strategy, strive, target, and will, and variations of such terminology. Forward-looking statements in this news release include, but are not limited to, statements with respect to: Finning’s supply of an initial fleet of Caterpillar 794AC electric drive off-highway trucks and other large mining machines to Teck’s QB2 open pit copper mine; Finning’s plans to provide Teck’s QB2 operations with Caterpillar’s Command for Hauling system, Caterpillar’s 794AC AHS (Autonomous Haulage Technology) kits, and ancillary kits to enable autonomous operations testing and production; Finning’s goal of assisting Teck to operate efficiently and cost effectively, while improving productivity and safety, Finning’s intention to reduce cost per ton and improve equipment availability for Finning’s customers, including Teck; Finning’s long-term outlook for copper and that Finning is well positioned to capture equipment and product support opportunities as mining activity in Chile begins to recover. All such forward-looking statements are made pursuant to the ‘safe harbour’ provisions of applicable Canadian securities laws.
Unless otherwise indicated by us, forward-looking statements in this report reflect Finning’s expectations at the date in this news release. Except as may be required by Canadian securities laws, Finning does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties and are based on several assumptions which give rise to the possibility that actual results could differ materially from the expectations expressed in or implied by such forward-looking statements and that Finning’s business outlook, objectives, plans, strategic priorities and other statements that are not historical facts may not be achieved. As a result, Finning cannot guarantee that any forward-looking statement will materialize. Factors that could cause actual results or events to differ materially from those expressed in or implied by these forward-looking statements include: general economic and market conditions and economic and market conditions in the regions in which Finning operates; foreign exchange rates; commodity prices; the level of customer confidence and spending, and the demand for, and prices of, Finning’s products and services; Finning’s ability to maintain its relationship with Caterpillar; Finning’s dependence on the continued market acceptance of its products, including Caterpillar products, and the timely supply of parts and equipment; Finning’s ability to continue to sustainably reduce costs and improve productivity and operational efficiencies while continuing to maintain customer service; Finning’s ability to manage cost pressures as growth in revenue occurs; Finning’s ability to negotiate satisfactory purchase or investment terms and prices, obtain necessary regulatory or other approvals, and secure financing on attractive terms or at all; Finning’s ability to manage its growth strategy effectively; Finning’s ability to effectively price and manage long-term product support contracts with its customers; Finning’s ability to reduce costs in response to slowing activity levels; Finning’s ability to attract sufficient skilled labour resources as market conditions, business strategy or technologies change; Finning’s ability to negotiate and renew collective bargaining agreements with satisfactory terms for Finning’s employees and the Company; the intensity of competitive activity; Finning’s ability to raise the capital needed to implement its business plan; regulatory initiatives or proceedings, litigation and changes in laws or regulations; stock market volatility; changes in political and economic environments for operations; the occurrence of one or more natural disasters, pandemic outbreaks, geo-political events, acts of terrorism or similar disruptions; the availability of insurance at commercially reasonable rates or that the amount of insurance coverage will be adequate to cover all liability or loss incurred by Finning; the potential of warranty claims being greater than Finning anticipates; the integrity, reliability and availability of, and benefits from information technology and the data processed by that technology; and Finning’s ability to protect itself from cybersecurity threats or incidents. Forward-looking statements are provided in this news release for the purpose of giving information about management’s current expectations and plans and allowing investors and others to get a better understanding of Finning’s operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose.
Forward-looking statements made in this report are based on a number of assumptions that Finning believed were reasonable on the day Finning made the forward-looking statements including but not limited to (i) that general economic and market conditions will be maintained; (ii) that the level of customer confidence and spending, and the demand for, and prices of, Finning’s products and services will be maintained; (iii) Finning’s ability to successfully execute its plans and intentions; (iv) Finning’s ability to attract and retain skilled staff; (v) that the level of market competition will be maintained; (vi) the products and technology offered by Finning’s competitors; and (vii) that our current good relationships with Caterpillar, our suppliers, service providers and other third parties will be maintained. Some of the assumptions, risks, and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in this news release are discussed in Section 4 of the Company’s current annual information form (“AIF”) and in the annual management discussion and analysis (“MD&A”) for the financial risks.
Finning cautions readers that the risks described in the MD&A and the AIF are not the only ones that could impact Finning. Additional risks and uncertainties not currently known to Finning or that are currently deemed to be immaterial may also have a material adverse effect on Finning’s business, financial condition, or results of operation.