Freehill Mining Limited is expanding its aggregates product range and upgrading its processing capabilities at the Islon site to meet rising demand from the local cement industry in Chile.
- New product mix tailored for local cement industry
- Enhanced processing plant enables simultaneous multi-material production
- Headcount reduced and cement industry experts recruited
- Stockpiling underway for deliveries starting October
- Yerbas Buenas site continues supplying fine sand and rock
Strategic Expansion into Cement Feedstock
Freehill Mining Limited (ASX, FHS) has announced a significant shift in its aggregates business strategy, broadening its product offering to include materials specifically developed for the local cement industry. This move follows extensive consultation with customers and positions the company’s Islon site in the La Serena/Coquimbo region as a key supplier in a growing market.
The new product mix includes a particular gravel and industrial sand tailored to cement production needs, which are now being produced and stockpiled in preparation for deliveries commencing this month. This diversification marks a departure from Freehill’s previous focus on supplying stabilisation base primarily for construction.
Operational Enhancements and Workforce Optimization
To support the expanded product range, Freehill has upgraded its larger processing plant with additional screens and conveyors, enabling the simultaneous production of multiple material types. These technical improvements aim to increase plant uptime and operational flexibility, critical factors in meeting the cement industry’s demand for consistent and reliable supply.
Alongside these upgrades, the company has streamlined its workforce, reducing headcount from 20 to 12 while bringing in experienced personnel from the cement sector. This strategic recruitment is expected to enhance operational expertise and drive margin improvements.
Yerbas Buenas Site Remains Integral
While the Islon site takes center stage, Freehill’s Yerbas Buenas operation continues to contribute by processing and selling fine sand and rock. The company is actively negotiating new supply agreements for projects closer to Yerbas Buenas, indicating a multi-site approach to servicing regional infrastructure demand.
Outlook and Market Context
Chief Executive Officer Paul Davies highlighted the strategic advantage of the Islon site’s metropolitan location, which has opened access to new markets and enabled Freehill to meet the local cement industry’s volume and quality requirements more effectively. With strong infrastructure development underway in the region, the December quarter is anticipated to be transformational for Freehill, with ramped-up deliveries and improved margins expected to drive growth.
Overall, Freehill’s operational enhancements and product diversification reflect a proactive response to evolving market dynamics, positioning the company to capitalize on Chile’s expanding construction and cement sectors.
Bottom Line?
Freehill’s strategic pivot and operational upgrades set the stage for accelerated growth amid Chile’s infrastructure boom.
Questions in the middle?
- How quickly will Freehill scale up deliveries to meet cement industry demand?
- What impact will workforce changes have on operational efficiency and margins?
- Can Freehill secure long-term supply agreements to sustain growth beyond the December quarter?