Weir Group wins PS40 million tailings solution contract in Chile
Weir Group PLC on Wednesday reported it has been awarded a £40 million sustainable tailings solution contract in Chile.
The Glasgow, Scotland-based engineering company said it was selected by Codelco, the world’s largest copper producer, to supply its tailings transport solution at the Talabre tailings dam expansion project in the Atacama region of Chile.
The expansion project will combine the thickened tailings streams from three major mines in the area: Ministro Hales, Chuquicamata, and Radomiro Tomic. Talabre is expected to have a total productive life of 20 years.
Weir’s solution will involve a combination of GEHO positive displacement pumps and WARMAN centrifugal pumps, which will transport more than 10,000 dry tonnes per hour, using less energy than other available solutions, the company said.
The initial £40 million contract awards will be booked in the second quarter of 2025, and the firm expects to recognise revenue over the course of the fourth quarter and early 2026, ‘in line with project cut-off dates’.
The company noted that the receipt of orders associated with the contract do not change its full-year guidance for 2025. Weir in late April said it anticipates growth in constant currency revenue and operating profit, together with achievement of its margin and cash conversion targets. Free operating cash conversion is expected between 90% and 100%.
Weir did not in April provide a specific revenue or profit forecast.
‘We are delighted to have secured these significant contracts for our tailings management solutions, which include both our market leading GEHO and WARMAN ranges that provide energy-efficient tailings transportation at scale,’ said Chief Executive Officer Jon Stanton.
‘Our engineers have developed a differentiated solution, particularly addressing Codelco’s stringent sustainability goals for operating in the water-scarce climate and geology of the Atacama region. Our proven experience on large scale tailings operations as well as local presence mean Codelco can come to expect the world class service Weir is known for.’
Shares in Weir Group were up 1.5% at 2,524.00 pence each in London on Wednesday morning. The stock has risen 22% over the past year.
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