Australia’s PPK Group has signed an agreement for the acquisition of the COALTRAM mining equipment business and intellectual property from Diversified Mining Services (DMS) in an all cash transaction for the sum of A$13 million.  The acquired assets include A$9 million of plant, equipment and hire fleet. The transaction is expected to complete on February 28, 2014 subject to satisfaction of agreed conditions. The acquired businesses include the manufacture, service and support of the trademarked COALTRAM underground transport utility vehicle; manufacture and distribution of Australia’s leading flameproof alternator for use in methane gas prone underground environments; and an equipment hire business.

Executive Chairman, Robin Levison, stated: “This is the first step in the strategy to grow PPK with a focus on the mining services sector.This acquisition sets the scene for a landmark 2014 calendar year for PPK and follows through on the strategy presented to shareholders at the AGM in November.” There are currently 99 COALTRAM vehicles in service in Australia with a wide range of clients including BHP, Centennial Coal and Glencore (previously Xstrata) with framework agreements in place for the provision of new products, servicing and parts supply.

Under DMS, the COALTRAM has been available in two models – the CT10 and the CT13. They both feature the Caterpillar C7 turbo diesel engine which has a Tier 3 origin exhaust emission rating. Major frame components are supplied to DMS by Atlas Copco Sweden, in kit form, and Australian local content is added by DMS at its Newcastle, New South Wales facility, to complete the flameproof/explosion protected underground coal specification. The COALTRAM design has benefited from the latest local and International legislative requirements and is supported by operational risk assessments, design risk assessments, failure modes and effect analysis and black coal competency standards.