Murray & Roberts reports buoyant market for underground mining services

Global provider of specialist mining services company Murray & Roberts Group in its H1 2019 results reports a strong quality order book of ZAR46.8 billion and near orders of ZAR14.4 billion. The order book includes several multi-year contracts. Four new businesses were also acquired in the period, including a big mining player in IPCC solutions, Terra Nova Technologies.

Henry Laas, Murray & Roberts Group Chief Executive, commented: “The implementation of the Group’s strategy as a multinational provider of specialised engineering and construction services, primarily in the metals and minerals, oil and gas & power and water market sectors, is showing strong delivery.”

Looking at the underground mining business specifically, the platform delivered an outstanding result in a buoyant market for underground mining services. Revenue increased to ZAR10.9 billion (FY2018: ZAR8.0 billion) and operating profit reached a record ZAR814 million (FY2018: ZAR471 million). The order book increased marginally to ZAR22.8 billion (FY2018: ZAR22.1 billion). The company added that as one of the largest underground mining contractors in the world, “the platform has significant market share in its targeted mining jurisdictions.”

As an example of its global scope, GCR Mongolia is a joint venture between Clough, RUC Cementation Mining and Gobi Infrastructure Partners and has opened a training academy in Ulaanbaatar, the capital city of Mongolia.The joint venture is contracted to provide services to Rio Tinto on the Oyu Tolgoi copper-gold mine, located in the southern Gobi desert of Mongolia, 55 km south of the capital. Oyu Tolgoi employee trainees will receive certified theoretical and practical training in addition to on-the-job experience equipping them with the knowledge, awareness and tools to manage the inherent risks associated with the mining and construction industry. GCR Mongolia’s current scope of work includes construction and commissioning of the blind sink and concrete line of Shaft No 3 and No 4 as well as the construction of the Underground Material Handling System for Stage 1.