Copper demand drives Austin’s Chilean growth

Increased copper production in Chile and the positive outlook for copper are driving growth of the Chilean business of mining equipment manufacturer Austin Engineering.

The Perth company told investors that Austin Chile had won a $2.5 million order for a full Cat 7495 dipper bucket for a local customer – a product it acquired with the purchase of Mainetec in 2022.

The order is a boost to strong growth in Austin’s Chile business, which is being driven by a resurgence in copper production in Chile as global demand for the metal used in electric vehicles accelerates, according to the company.

The customised dipper bucket, valued at over $2.5 million, will be manufactured at Austin’s La Negra manufacturing facility (pictured), near Antofagasta, with delivery scheduled for Q1 2025.

Designed by Austin’s engineering team, the 86-tonne dipper will be able to move approximately 100 tonnes of material per pass.

Austin CEO and Managing Director David Singleton said: “The Chilean Copper Commission is predicting record production for Chile in FY25, up 6 percent year-on-year, and we therefore expect to see this continue to drive growth in Austin Chile into FY25.

“South America is a major dipper bucket market and this order is another demonstration of how the acquisition of Mainetec has hugely strengthened our product line-up and allowed Austin to become much more competitive in this region.”

The new order is Austin’s fourth dipper bucket order following the acquisition of Mainetec.

Two dipper buckets have already been delivered in Australia and a high-performance Armadillo electric rope shovel dipper bucket is due for delivery to a US-based copper mine in Q4 2024.

Austin’s Group order book to end-March 2024 was at a multi-year high of approximately $201 million, which is a ~30% year-on-year increase.

Austin maintained its Full Year FY24 guidance given at the Half Year result for full year revenue to grow by circa 24 percent to $310 million NPAT to increase by circa 75 percent to $31 million- $33 million.

Picture: Austin Engineering/Truck trays in Austin’s manufacturing facility at La Negra, Chile