Fall in Mincon profits expected to reverse after Chile rescue role

PROFITS AT the main Irish arm of Mincon, the company that designed and made a drill piece that aided the survival of the 33 Chilean miners in October, fell by 41 per cent last year but it expects to achieve a record surplus in 2010.

Mincon International Ltd’s pre-tax profits dropped from €4.5 million to €2.6 million in the year to the end of December 2009, latest accounts show.

Commenting on the 2009 performance, Mincon director Joe Purcell said: “In October 2008, everything fell off a cliff. . . and at the start of 2009 it looked awful, but we were able to turn it around from that.”

Mr Purcell said the company’s role in the Chilean mine rescue had contributed to “having our most successful year to date”.

Mr Purcell said 2008 was Mincon’s best year before 2010. But the company is set to record a 20 per cent increase on its 2008 profits for this year.

Revenues, meanwhile, are expected to be 12 per cent up on 2008. Mr Purcell confirmed two new customers secured in Chile and three in Africa were due to the drill piece.

In October, the previously little-known Mincon garnered global publicity when it emerged that its MX5053 drill piece, designed at its Shannon plant, broke through the cavity where the miners had been trapped since August.

It drilled through a half a mile of rock to establish communication with the men and provided them with food, water and medical supplies. Mr Purcell said Mincon has since upgraded the drill piece.

Mincon paid out a dividend of €6 million to shareholders in 2009 and had accumulated profits of €12.7 million at year end.

All of its research and development work takes place at Shannon. It also has manufacturing facilities in Australia and the US.

Mr Purcell’s father, Paddy established the company in 1977.

Mincon recently opened an office at Dakar in Senegal and expects to add 10 people in 2011 to the 130 it currently employs.