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Ritchie Bros to auction EMECO’s excess mining equipment

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Ritchie Bros. has entered into an agreement to deliver excess mining equipment dispersal services to EMECO, collaborating with the mining services supplier to deliver what it says is competitive integrated sales and marketing solutions for the sale of heavy earthmoving equipment.

EMECO is one of Australia’s largest, independent mining equipment rental businesses, providing tailored earthmoving equipment solutions for mining companies – with operations in key mining regions of Australia.

With this joint agreement, EMECO has received a dedicated storefront on Ritchie Bros. IronPlanet, a custom branded seller page that includes EMECO listings for sale. Assets will either be sold via both Marketplace-E and IronPlanet auctions with the approach tailored to deliver the optimal result, Ritchie Bros. says.

Ritchie Bros. Sales Director, Finlay Massey, said: “We are pleased to be working in collaboration with EMECO to deliver innovative solutions to the dispersal of excess assets. With a shared focus on asset solutions, this agreement is the foundation for a strong partnership and complements our efforts to diversify our sales solutions.

“We are uniquely positioned to deliver EMECO with our substantial resources, industry expertise and extensive buyer database to maximise the return on sale of surplus EMECO assets.”

EMECO Steve Crofts, GM HME Disposals, said: “We have been in the mining business for 50 years providing heavy earthmoving equipment to mining companies and contractors across coal, gold, copper, bauxite and iron ore. We are pleased to start selling surplus assets through Ritchie Bros. to the global mining industry.

“Ritchie Bros.’ multichannel sales approach will allow us to sell equipment when, how, and where, we choose.”

EMECO carries out a comprehensive scope of work from its component and rebuilding company, Force Equipment, to its line boring company, Borex, and underground mining services company, Pit N Portal.

EMECO says its operations are supported by close to 1,300 employees equipped with proprietary asset management and fleet optimisation technology and more than 1,000 units of heavy equipment in various quality brands such as Caterpillar, Hitachi, Liebherr and Komatsu.

Emeco secures more haul trucks, dozers in effort to even supply-demand balance

Equipment maintenance, Mining equipment, Mining finance, Mining services, , , , ,

Emeco Holdings’ confidence in the market has led it to investing in a large package of “strategic core assets” comprising mainly 240-t haul trucks and Cat D10 (pictured)/D11 dozers, the company said in its latest financial results.

The company, in 2018, acquired Matilda Equipment for an enterprise value of A$80 million ($57 million) and has since been working hard on integrating the rental specialist into the group.

Emeco saw strong growth in the first half of its financial year to end-2018, with operating earnings before interest, taxes, depreciation and amortisation of A$102.8 million, up from A$67 million a year earlier.

The company put this down to a full contribution from Force Equipment – which Emeco also acquired recently – and Matilda Equipment, continued improvement in average operating utilisation to 64% (up from 57% a year earlier) and strength in the Eastern Region, particularly coal mining customer demand.

Emeco has paid a A$20 million deposit to secure this haul truck and dozer fleet, with the recently acquired Force Equipment workshops playing a pivotal role in getting these assets ready for work.

“Emeco currently has very high utilisation in these asset classes – demand outweighs supply,” it said, adding that rental agreements were in place for a majority of these assets prior to them arriving in Australia.

Delivery and preparation of these assets is expected to occur throughout the second half of 2019, with earnings contribution expected in its 2020 financial year, the company said.