March 2, 2010

Finning’s Chilean operations in decent shape after massive earthquake

RICHARD GILBERT

staff writer

Finning’s operations in Chile have suffered minimal damage as a result of an earthquake that struck the country last week.

“We are in close touch with the Finning South America executive and they have done an assessment of the impact of the earthquake on operations and employees,” said Finning International Inc. director of investor relations and corporate affairs Mauk Breukels.

“The most important thing is the well being of our employees and there have been no casualties of employees or members of their families.”

Chile experienced a massive earthquake on Feb. 27 which registered 8.8 in magnitude.

This is one of the most powerful about 5,000 employees, with about 1,000 living in the impacted area.

“In terms of operations in the northern part of Chile, known as the Antofagasta mining region, which is the bread and butter of our operation, they are continuing to operate,” said Breukels. “In the far south they really felt the impact of the earthquake.”

Operations at mines closer to the epicenter were temporarily halted, but are expected to resume shortly

The company's operations in the impacted region include a corporate head office in Santiago and three branches, Concepcion, Temuco and Puerto Montt.

“In these locations, the branches have sustained only minor damages and we can operate for the time being,” said Breukels. “The most severe damage was to the head office and we are moving our office functions to other offices in Santiago. Information systems are up and running. We will continue to operate from these offices, until we can move back to the head office.”

Breukels said early indications are that it will take four to six weeks to move operations back to the head office.

“It’s a little too early to tell how this will translate into opportunities to support the relief effort, but we clearly have the equipment.” he said. “It will take a few days to get a better picture.”

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