Weir Group secures £40m tailings management contract in Chile
Why we think this is good
The contract win for Weir Group's tailings management solutions in Chile is a positive development. The £40m value is significant, and the company's proven experience and local presence suggest the execution risk is low. While the financial details are limited, the contract does not appear to have a negative short-term earnings impact based on the guidance reiteration. Overall, this contract win strengthens Weir's position in the sustainable mining solutions market.
Key Points
- £40m contract to supply tailings transport solutions for Talabre tailings dam expansion project in Chile
- Contract includes Weir's GEHO positive displacement pumps and WARMAN centrifugal pumps
- Solution utilises Weir's NEXT intelligent digital technology
- Revenue expected in Q4 2025 and early 2026, with local aftermarket support provided
- Weir's proven experience and local presence suggest low execution risk
Summary
Weir Group PLC has been awarded a £40m contract by Codelco, the world's largest copper producer, to supply the tailings transport solution for the Talabre tailings dam expansion project in Chile. The contract includes Weir's GEHO positive displacement pumps and WARMAN centrifugal pumps to handle the large volume and high solid content of tailings. The solution will also utilise Weir's NEXT intelligent digital technology. The contract is expected to generate revenue in Q4 2025 and early 2026, and Weir will provide aftermarket support locally. The company's proven experience on large-scale tailings operations and local presence suggest the execution risk is low, and the contract does not result in a change to Weir's full-year 2025 financial guidance.