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Turner Mining Group wins $120 million contract at industrial sand operation in Texas

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Turner Mining Group says it has been awarded a $120 million mining contract in Texas, USA, with an industrial sand producer in the west of the state.

The company has now broken ground on this four-year, turnkey mining contract for what is says is an industry-leading industrial sand producer in West Texas. This mining services agreement continues to expand Turner’s client portfolio into diverse markets as the global demand for frac sand continues to rise, it said.

Employing more than 80 miners to perform the services, Turner will manage and oversee all mining activities in a multi-site effort to streamline operations. The scope of work includes construction of mine haul roads, loading and hauling 55 million tons (50 Mt) of sand, overburden removal, construction of tailings impoundments and freshwater ponds along with stockpile management and load-out.

The selection of the mine services contract was awarded based on Turner’s safety record, production capabilities, asset management plan and overall “value for dollar” along with an established and proven track record of delivering safe production and professionalism previously across several of the client’s other locations, Turner said.

Paul Moran, Chief Commercial Officer, added: “We’ve built a strong relationship with this producer over the last several years and we look forward to the opportunity to expand upon our successful, partnership that ensures ownership and accountability.”

With safety and efficiency at the forefront, Turner says it has invested in a significant fleet of new and low-hour equipment to maximise machine uptime and availability. Acquiring and deploying nearly $30 million in equipment assets to ensure uptime and efficiency, the expansive fleet includes Volvo articulated haul trucks, Hitachi 1200-7B excavators (one pictured), various utility excavators, wheel loaders and ancillary mining support equipment. Turner mobilised over 50 pieces of equipment in less than two months to meet project timelines and production demands.

On the substantial acquisition, Cade Smith, SVP of Equipment, explains: “The equipment we chose to utilise was based on the scope of work, length of haul and site material characteristics. The fleet is equipped with telemetry technology to provide more detailed reporting, so that we can review hauled tonnages, machine speeds and efficiencies via the systems we have in place.”

This contract is another big win for the Turner team as it continues to broaden its mining capabilities and establish partnerships with clients across a multitude of material types throughout the USA, it said.

Keaton Turner, President and CEO, said: “This recent Texas contract award is yet another stepping stone in our mission to make life better for the mining industry by creating dozens of local, high paying jobs while also relocating traveling miners from all across the country to work in the beautiful Lonestar State. I could not be more proud of our team for deploying a fleet of high-production assets, cutting-edge technology and living out our values which allowed us to safely mine more than 1 million tons of material in our first 30 days on site. This is a testament to our team’s relentless dedication while working shoulder to shoulder with our clients to solve some of the industry’s greatest challenges.”

Metso to add mobile crushing and screening specialist to group

Comminution of minerals, Industrial minerals, Mineral processing, Mining equipment, Mining mergers and acquisitions, Mining services, , , , , , , , ,

Metso has signed an agreement to acquire McCloskey International, a Canada-based mobile crushing and screening equipment manufacturer with market share in the aggregates sector, as well as customers in the frac sand and industrial minerals segments.

“The mobile aggregate equipment market is expected to grow by 4-6% annually during 2019-2023, driven by the underlying road construction spend,” Metso said. “With this acquisition, Metso will be able to better take part in the attractive growth of mobile products within the aggregates industry.”

The enterprise value of the transaction is C$420 million payable at closing with an additional profitability-based earn-out consideration of up to C$35 million for the two-year period after closing, Metso said.

The deal comes on top of Metso’s recent acquisitions of Chile-based HighService Service and UK-based Kiln Flames Systems.

Pekka Vauramo, Metso’s President and CEO, said the McCloskey acquisition was in line with Metso’s profitable growth strategy.

“It strengthens our aggregates business in key growth areas. The different cycles of aggregates balance our previously more mining-focused Minerals portfolio well,” he said.

Markku Simula, President of the Aggregates Equipment business area in Metso, said customers in aggregates and construction have varying business needs, with this acquisition supporting the company’s expansion plans to “approach customers through multiple complementary channels and offerings to meet their diverse needs”.

He added: “Going forward, Metso plans to continue developing the McCloskey brands and distribution channels independent of the Metso channel. Synergies are, apart from sourcing, mainly revenue-related, resulting from the wider offering available to both channels as well as additional crusher equipment, service and consumable sales.”

In the 12-month period ending September 30, 2018, McCloskey had pro-forma sales of C$464 million ($344 million) and a pro-forma EBITDA margin of 10.3%, with the company’s sales in the fiscal year ending September 30, 2019, expected to exceed C$500 million, according to Metso.

McCloskey has around 900 employees in Canada, the US and Northern Ireland.

Paschal McCloskey, Founder, President and CEO of McCloskey, said: “We are proud of the growth achieved in a competitive market. I know that joining Metso is the right move for all our customers, employees, dealers and business partners. The combination of our unique focus on products and people and Metso’s global resources will help create even better solutions for our customers.”

Metso said the transaction is expected to be positive for Metso’s earnings per share in 2020. McCloskey will be reported in Metso’s Minerals segment following the acquisition, which is expected to closing during the December quarter of this year.