Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Canadian company Finning International Inc. (TSX:FTT), Caterpillar’s equipment distributor in Chile, announced it will invest over US$350 millions in the South American country the year.
Local financial newspaper “Diario Financiero,” publishes that about US$300 millions will go towards the purchase of mining equipment manufacturer Bucyrus, acquired by Caterpillar in November 2010.
Finning South America CEO, Juan Carlos Villegas, said the company is focused now on building a plant south of the capital, Santiago, which will require a total investment of US$ 22 million.
With the completion of the plant, expected by April this year, Finning will have achieved a major shift from importing equipment to producing it locally, under Caterpillar’s supervision, said the executive.
Finning South America is also investing in investing about US$12 million in a training center in the northern part of Chile, which will allow training up to 650 workers per shift.
