Tag Archives: Markku Teräsvasara

Metso Outotec and FAM to collaborate on IPCC, tailings projects

Metso Outotec and FAM GmbH have signed a global non-exclusive co-operation agreement on the delivery of integrated end-to-end solutions for in-pit crush and convey (IPCC) and tailings management plants to the mining industry.

The combination of the companies’ leading expertise in their respective fields will allow the parties to form the market’s strongest offering for IPCC and tailings management plants, they said.

“Mine electrification, reduction in power and water consumption, as well as de-risking tailings disposal, are common goals for the mining industry and Metso Outotec to improve sustainability,” Metso Outotec said. “State-of-the-art IPCC and tailings management plants cater for these requirements.”

Markku Teräsvasara, President of the Minerals business area at Metso Outotec, said sustainability is a top priority for Metso Outotec.

“In addition to our investments to develop our IPCC and tailings management plant offering, we are pleased to be able to announce our cooperation with FAM,” he said. “This will allow us to meet our customers’ growing demand in such plants, where spreaders or conveyor bridges are required.”

Torsten Gerlach, CEO of FAM, added: “FAM’s leading technology in dry tail stacking systems and spreaders ties well in with Metso Outotec’s hard-rock crushing and minerals processing portfolio. Where end-to-end systems are required, we are glad teaming up with a strong partner.”

Metso Outotec establishes new training program for field service technicians

Metso Outotec has started an integrated competence development platform, the Services Certification Program, looking to standardise the competency of the company’s service employees working on site.

The OEM has an extensive footprint of over 3,000 field services professionals and additional support resources close to customer operations. The certification training program has been designed to validate and develop their employees’ knowledge and skills at servicing their respective products and technologies, it said.

Markku Teräsvasara, President, Services business area, Metso Outotec, said: “Our customers are already expressing strong confidence towards our service experts’ knowledge and technology competences. With the development program, the expertise is officially validated and standardised across the world.

“We have a unique opportunity from being able to combine strong maintenance support with process knowledge. To achieve our ambition of being the preferred services provider in our industry requires us to strive for unified development of industry leading competences based on high performance and safety standards, and resulting in exceptional customer experience.”

The Services Certification Program consists of three distinct and progressive training levels that allow personnel to develop their skills and apply them in on-the-job situations as well as validating existing work experience. All service personnel must achieve a “License to Service” certificate before starting the certification program to ensure a shared understanding of what service means within Metso Outotec and to clarify the standards including safety all are expected to hold themselves to in their work.

The Services Certification Program is designed and managed by the Metso Outotec Training Academy organisation which manages all technical and product trainings globally in the company.

First Ore Mining and Metso Outotec strike thickening plant deal for Pavlovskoye

The First Ore Mining Company (FOMC), part of ARMZ Uranium Holding Co, says it has signed a cooperation agreement with Metso Outotec “underlining the parties’ interest in continuing their strategic partnership in the design, supply, installation, control and commissioning of the thickening plant for the Pavlovskoye field”.

The agreement waas signed by Igor Semenov (right), Executive Director, FOMC JSC, and Markku Teräsvasara (left), Vice President, Metso Outotec.

The Pavlovskoye polymetallic deposit on the Novaya Zemlya archipelago is the largest such deposit in Russia with 47.7 Mt of ore reserves (2.49 Mt f zinc, 549,000 t of lead and 1,194 t of silver), according to First Ore Mining.

The cooperation with Finland’s Outotec (since merged with Metso to make Metso Outotec) emerged more than a year ago on the sidelines of the St. Petersburg International Economic Forum, which gave rise to an initial pact. Since that time, the company’s experts, together with Aker Arctic Technology, have elaborated a detailed draft design for the floating concentrator and set out a preliminary thickening flow chart and main equipment layout, First Ore Mining said.

In September, representatives from Metso Outotec visited the Pavlovskoye field. In the course of the field activities, the company examined the site for the planned thickening plant, tailings pond and infrastructure facilities, First Ore Mining said. It also acknowledged the ore samples were representative and could be used in testing.

The next stage within the partnership will include tests to be carried out at Metso Outotec Research Center in Pori, Finland. Once the work is completed and the final thickening flow chart is developed, Metso Outotec will present the guaranteed performance indicators and design values to ensure the plant’s productivity and the high quality of the concentrates and metal extraction for the ore types studied, FOMC said.

Semenov said: “I am confident that working together with Metso Outotec will significantly improve the thickening indicators for Pavlovskoye ores, which were obtained during the studies in the previous years. As a result, we will produce premium concentrates that are in demand in the global lead and zinc markets.”

Teräsvasara added: “Indeed, it is quite interesting to participate in the development of this unique project for processing minerals in the Russian Arctic. In addition to standard technological and economic matters, harsh weather conditions, lack of infrastructure, and high requirements to environmental safety in the vulnerable Arctic wildlife have made us search for the best available technologies to cover all these points.”

The Pavlovskoye project includes plans to build the northern-most mining and processing plant to produce lead and zinc concentrates, with First Ore Mining as the project operator.

Metso and Outotec establish business areas and leaders ahead of merger completion

With Metso and Outotec having recently cleared one of the final remaining hurdles towards merging the two companies, the future Metso Outotec Board of Directors has laid out the planned company structure and related executive team appointments.

The nominations will become effective after the closing of the partial demerger of Metso and the combination of Metso’s Minerals business and Outotec, which is currently expected to take place on June 30, 2020, subject to receipt of all required regulatory and other approvals, including competition clearances – which the companies made significant headway on recently.

The companies said: “Combined, the future Metso Outotec will be a forerunner in sustainable technologies, end-to-end solutions and services for the minerals processing, aggregates, metals refining and recycling industries globally. The new organisation is designed to leverage the strengths and expertise of both companies.”

Metso Outotec will consist of the following six business areas:

  • Aggregates, providing crushing and screening equipment for the production of aggregates;
  • Minerals, providing equipment and full plant solutions for minerals processing, covering comminution, separation and pumps;
  • Metals, providing processing solutions and equipment for metals refining and chemical processing;
  • Recycling, providing equipment and services for metal and waste recycling;
  • Services, providing spare parts, refurbishments and professional services for mining, metals and aggregates customers; and
  • Consumables, providing a comprehensive offering of wear parts for mining, metals and aggregates processes.

The boards have also made some significant decisions on the key personnel that will lead these business units.

Markku Simula will become President of the Aggregates business unit. Simula currently serves as President, Aggregates Equipment at Metso.

Recently appointed Metso Mining Equipment President, Stephan Kirsch, will become President of the combined Minerals business area.

Jari Ålgars, currently CFO at Outotec, will become President of Metals.

Uffe Hansen, who is currently President of Recycling at Metso, will become President of Recycling at Metso Outotec.

Metso’s Sami Takaluoma will retain his President of the Consumables business area post at the new merged entity.

Markku Teräsvasara, who currently serves as the President and CEO at Outotec, will take on the President, Services and Deputy CEO role at Metso Outotec.

In addition to the business area president appointments, the following function heads and executive team members have been appointed:

  • Eeva Sipilä, CFO and Deputy CEO. Her appointment was announced on July 4, 2019. She currently serves as the CFO and Deputy CEO at Metso;
  • Nina Kiviranta, General Counsel. She currently serves as General Counsel at Outotec;
  • Piia Karhu, Senior Vice President, Business Development. She currently serves as Senior Vice President, Customer Experience at Finnair. She will join the company on July 1, 2020; and
  • Hannele Järvistö, Senior Vice President, Human Resources (interim). She currently serves as Senior Vice President, Human Resources (interim) at Metso. “This appointment is valid until a new position-holder has been selected and will start in this role,” the company said.

All the function heads and executive team members will report to Metso Outotec’s future President and CEO, Pekka Vauramo (pictured), the company said.

Reflecting on these changes, Vauramo said: “Above all, Metso Outotec will be strong in sustainability. Our extensive combined offering for minerals processing, from equipment to a broad range of services, will help our customers improve their profitability and lower their operating costs and risks, while at the same time reduce the consumption of energy and water.

“We at Metso Outotec understand our customer’s world and the daily challenges they face. Together, we will partner for positive change.”

Outotec refines minerals and metals focus with planned divestments

Outotec has taken a strategic decision to divest three of its businesses in the Metals, Energy & Water segment’s portfolio as it focuses on its core technologies in minerals processing and metals refining.

These businesses relate to aluminium, waste-to-energy and sludge incineration, the company said.

This news comes as Metso is going through the process of gaining approval for the acquisition of Outotec, a deal that will create a mineral processing giant.

Outotec said the aluminium business to be divested includes the green anode plant, rod shop (an example, pictured) and certain cast-house technologies as well as related service operations; while the waste-to-energy business to be divested comprises of biomass, wood waste and various other fuel plants including related service operations.

The last business – the sludge incineration segment – comprises delivery of plants for treatment of municipal and industrial sludge and related service operations.

In total, around 250 experts are working in these three businesses, which will be affected by these moves. In the company’s 2019 financial results, the businesses to be divested will be classified as discontinued operations, Outoect said.

For the financial year 2019, the intended actions will lower the expected sales by around €50 million ($55.5 million) but increase the adjusted EBIT by some €40 million, the company said.

Outotec’s CEO, Markku Teräsvasara, said: “Pursuing these strategic actions will enable Outotec to better focus on its core technologies in minerals processing and metals refining. We, of course, remain committed to serving our energy and aluminium customers until these divestments have been completed.”

Paul Sohlberg becomes Outotec’s new head of minerals processing

Outotec has appointed Paul Sohlberg as interim Executive Vice President of its Minerals Processing business unit following Kimmo Kontola’s decision to leave the company.

The position, which also sees him join the executive board, is temporary until the expected closing of the Outotec and Metso Minerals combination, which is expected to complete in the June quarter.

Paul Sohlberg joined Outotec in 2011 and, since 2014, has worked as the President of Market Area North & Central America.

Outotec’s President and CEO, Markku Teräsvasara, said Sohlberg has “versatile experience” in business leadership roles at Outotec and Elektrobit.

“Under Paul’s leadership, we have seen strong development in North and Central America. I warmly welcome Paul to our executive board, where his task will be to further strengthen and develop our growing minerals processing business.

“At the same time, I want to thank Kimmo for his long career and contributions in developing Outotec’s minerals processing business and wish him all the best in his next career chapter.”

Metso and Outotec to join together in ‘industry-shaping combination’

The boards of Metso and Outotec have unanimously approved a demerger plan and a combination agreement to combine Metso’s Minerals business with Outotec.

As part of the deal, Metso Flow Control, which was recently split off from the Metso Minerals division, will become a pure-play listed entity under the name of Neles.

The combination of Metso Minerals and Outotec is highly complementary and will create a unique company in the industry, according to the two companies. “Metso Outotec will leverage the strengths of both companies, including technology and R&D, product and process excellence, scale and global service offering footprint. The combination will deliver significant benefits to all stakeholders,” they said.

The combined company, Metso Outotec Corp, had illustrative 2018 combined sales and adjusted EBITA of €3.9 billion ($4.4 billion) and €369 million (excluding the impact of the €110 million provision recorded in relation to the ilmenite smelter project as described in Outotec’s 2018 financial statements).

This represents an illustrative combined adjusted EBITA margin of 9.6% in 2018, excluding the benefit of the expected synergies, and also Metso’s recently announced acquisition of McCloskey International. Including McCloskey, illustrative 2018 combined sales would have been approximately €4.2 billion.

Metso Minerals and Outotec expect to achieve run-rate annual pre-tax cost synergies of at least €100 million, and run-rate annual revenue synergies of at least €150 million, delivering significant value for shareholders, they said.

Upon completion of the agreed demerger, Metso shareholders will receive 4.3 newly-issued shares in Outotec for each share owned in Metso on the record date. This implies Metso shareholders would own around 78% of the shares and votes of Metso Outotec, and Outotec shareholders would own the remaining 22% of the shares and votes of Metso Outotec. In addition, Metso shareholders will retain their current shares in Metso, which will be renamed Neles.

The current CEO of Metso, Pekka Vauramo, will become Metso Outotec’s CEO, and the current CEO of Outotec, Markku Teräsvasara, will become the Deputy CEO of Metso Outotec. Eeva Sipilä will become the CFO and Deputy CEO of Metso Outotec.

The board of Metso Outotec will include board members from both companies. It is proposed that Metso Outotec’s Chairman will be Mikael Lilius and that the Vice Chairman will be Matti Alahuhta.

Shareholders representing 33.6% of the shares and votes of Metso and shareholders representing 24.8% of the shares and votes of Outotec have irrevocably undertaken to vote in favour of the transaction, which the companies hope will close in the June quarter of 2020.

Metso Outotec’s headquarters will be in Helsinki, Finland and it will maintain its listing on Nasdaq Helsinki, the companies said.

Outotec Chairman, Matti Alahuhta, called the deal an “industry-shaping combination” that joins two “uniquely complementary companies”, while Metso Chairman, Mikael Lilius, said the deal represented a “transformational combination of two great companies” and the simultaneous creation of an “independent leader in flow control”.

Outotec CEO, Markku Teräsvasara, said: “The combination of Outotec and Metso marks an important milestone in each company’s history and in Outotec’s strategic development. I am excited about the many benefits that the combination will deliver for customers, employees and ultimately shareholders, with the larger scale and combined strengths of both companies. Outotec has a highly compelling portfolio of technologies and capabilities that will be a key catalyst for unlocking many of these benefits. I look forward to building a great new company together with the Outotec and Metso Minerals employees, as part of Metso Outotec.”

And, Metso CEO, Pekka Vauramo, said: “This is a unique opportunity to create value for our customers, employees and partners globally. Metso Outotec will have capabilities that will enable us to drive sustainable growth, while providing our customers with high-quality technology, equipment and services that will ultimately improve their businesses. We will have an extensive global presence, complementary offering, strong services and a large installed base. We also have excellent people – the best talent in the industry. I am therefore eagerly waiting to join with Outotec’s personnel to begin our exciting journey together.”

The combination of the two companies is, according to Metso and Outotec, expected to deliver a range of strategic, commercial, operational and financial benefits:

  • A leading company with a wide presence across the value chain allowing Metso Outotec to provide an end-to-end offering in minerals processing;
  • Enlarged installed base coupled with advanced service offering providing opportunities to unlock significant benefits;
  • Leadership in sustainable technology across all businesses;
  • Breadth across verticals (minerals/metals/aggregates), geography and application provide enhanced performance;
  • Significant revenue and cost synergies, and;
  • Solid capital structure and attractive dividend policy.

The companies said: “The combination of Metso Minerals and Outotec will create a leading company in process technology, equipment and services serving the minerals, metals and aggregates industries. Metso Outotec will also have expertise in specialist areas, such as recycling and energy solutions.”

Metso Outotec will have a presence across the full minerals processing and metals refining value chain, with a “differentiated ability to deliver end-to-end solutions across the whole process from crushing to end products”, they said. The combined company will own a broad portfolio of leading technologies in, for example, comminution, beneficiation and metals refining, as well as a market leading aggregates business and global strength in services.

On a combined basis, Metso Minerals and Outotec had 15,630 employees globally, as of March 31, 2019, with close to 100 nationalities represented.

Completion of the transaction is subject to approval by a majority of two-thirds of votes cast and shares represented at the respective EGMs of Metso and Outotec, regulatory approvals, including competition clearances, and other conditions.

As a result of the combination of Metso Minerals and Outotec, Metso will be renamed as Neles and will become a globally recognised flow control company with highly attractive market positions.

Neles, which will continue to be listed on Nasdaq Helsinki, is expected to create additional value for Metso’s shareholders as a separate entity through:

  • Leading position as a flow control solution provider with market leadership across pulp & paper valves and down stream oil & gas control valves;
  • Continued outperformance of market growth with best-in-class profitability and proven resilience through the cycle;
  • Diversified sales mix both by region and industry;
  • A fully focused, dedicated management to deliver shareholder value and leverage further growth opportunities;
  • Solid balance sheet and financial position, and;
  • Crystallisation of attractive sector trading multiples.

At year-end 2018, Neles had illustrative combined net cash of €72 million. To support the capital structure of Neles, Metso has entered into a €150 million term loan facility agreement, which may be used for the repayment and replacement of Metso’s credit facilities and other liabilities that benefit the flow control business and are to remain with Neles post completion. Prior to the completion, Metso is also expected to enter into a new revolving credit facility of €200 million to be used for the general corporate purposes of Neles.

Olli Isotalo, who was named the new CEO of the Flow Control division last month, will become Neles’ CEO.

Baikal Mining and Outotec sign equipment supply cooperation agreement

Baikal Mining Company and Outotec have confirmed that they have signed an agreement that could see the technology company supply process equipment to the Udokan Mining and Metallurgical Plant in Kalar District, Russia.

Udokan is thought to host the third largest undeveloped copper deposit globally, with a JORC-compliant resource of 26.7 Mt of copper.

The document, a cooperation agreement according to Outotec, was signed by Baikal’s Chairman of the Board of Directors, Valery Kazikaev, and Outotec President and CEO, Markku Teräsvasara at the St Petersburg Economic Forum. It was later followed by a press release from Outotec saying the two had signed a €250 million ($282 million) delivery contract for the copper operation.

This will see Outotec design and deliver a greenfield copper concentrator and hydrometallurgical plant for the Udokan project.

Around €35 million of the €250 million contract will be booked in Outotec’s June quarter order intake, with roughly two thirds of the order booked for Minerals Processing and a third for Metals, Energy & Water segment.

“Outotec’s delivery includes basic and detail engineering of the concentrator and copper hydrometallurgical plant, procurement, delivery of main process equipment as well as installation supervision, training and start-up services,” the company said.

Kazikaev said in Baikail’s release: “A unique flotation and hydrometallurgical Udokan ore processing flowsheet including bulk and sulphide flotation, leaching, solvent extraction (SX) and electrowinning (EW) was developed as a result of long-term research performed by BMC together with major Russian and international engineering companies.”

Outotec equipment, expected to be delivered in 2020, was selected for the implementation of this ore processing flowsheet, Baikail said.

Teräsvasara said: “We are happy to enter into cooperation with Baikal Mining Company on such a significant project. Our high-end technologies and competent service shall enable Baikal Mining Company to develop consistently and improve production efficiency.”

Baikal said flotation cells with the capacity varying from 20-300 m³ were expected to be used for flotation beneficiation of ores, while hydrometallurgical processing would employ reactors, high-compression thickeners, modular SX units and EW equipment. The latter is expected to reduce the construction period by 20%, Baikal noted.

A fully-automatic cathode withdrawal and loading crane and cathode stripping machine shall alos be applied for copper EW, according to the company.

Kazikaev said the Udokan Mining and Metallurgical Plant shall be the first plant in Russia to use these technologies, all of which are “notable for ore processing potential irrespective of the quality and oxidation of the ore and achieving high process performance”.

Stage one annual capacity of the plant is expected to be 12 Mt/y, with start-up in in 2022. There are also plans for a further exansion up to 48 Mt/y, according to Baikal.

Outotec sees the greenfield project positives in Q1 financial results

Outotec President and CEO, Markku Teräsvasara, says the company saw signs of increased greenfield investments in both minerals processing and metal refining technologies in the most recent March quarter, providing the company with a positive outlook for the rest of 2019.

The mineral processing and refining company reported 1% year-on-year growth, to €336.1 million ($370.7 million) in the first three months of 2019, alongside a 22% boost in service order intake (€159.9 million) and adjusted EBIT of €11 million, up from €7 million a year earlier.

While overall sales dipped 11% year-on-year to €254.7 million and the company reported negative net cash from operating activities, Teräsvasara painted an upbeat picture in his statement accompanying these results.

“The overall market sentiment developed positively in the first quarter,” he said. “In addition to brownfield investments, we are seeing signs of increased greenfield investments in both minerals processing and metal refining technologies. Order intake was at the same good level as in the first quarter last year. I am pleased with the 22% growth in service orders and the 19% increase in equipment orders for Minerals Processing.”

He said sales decreased primarily due to fewer plant and equipment deliveries, but there was a clear improvement in profitability, both in absolute and relative terms, due to better gross margins (27.1% in Q1 2019, up from 22.8% in Q1 2018).

Teräsvasara added: “I am pleased with the progress in our must-win battles that further improve our performance. These programs focus on strengthening customer focus, service business, product competitiveness, project competencies and people development.”

He also commented on the ilmenite smelter project that has hit the company’s recent financial results, saying negotiations were ongoing in cooperation with the customer and that the company remained confident “we are provided adequately for the project”.

“We continue to be positive about the current market outlook and reiterate our 2019 guidance for sales (increase from 2018) and adjusted EBIT (increase from €63.8 million in 2018),” he concluded.

After the end of the quarter, Outotec received a €140 million greenfield mineral concentrator and gold processing plant order from Ma’aden in Saudi Arabia.

Ma’aden chooses Outotec process equipment for Saudi Arabia gold project

The Saudi Arabian Mining Company (Ma’aden) has awarded the consortium of Outotec and Larsen & Toubro with an engineering, procurement and construction contract to build a greenfield mineral concentrator and gold processing plant in the Kingdom of Saudi Arabia, the Finland-based company says.

The order, worth some €140 million ($157 million) to Outotec, is almost evenly shared between the reporting segments and will be booked into Outotec’s June quarter 2019 order intake, the company said. The total value of the project is around €540 million.

Outotec’s delivery includes basic and detail engineering, procurement and delivery of process equipment, commissioning, start-up assistance and training services. The new gold processing plant is due to be completed in 2022, it said.

Ma’aden is a leader of the Saudi Arabia mining industry, and an internationally recognised mining company with a global presence, thanks to partnerships with the likes of Barrick Gold, Alcoa and the Mosaic Company.

The Mansourah & Massarah operation will be built in the Central Arabian gold region, with the processing plant capable of up to 4 Mt/y throughput. The concentrator and the gold processing plant has been designed to produce an average of 250,000 oz/y of gold per year over the life of mine, Outotec said.

Markku Teräsvasara, CEO of Outotec, said: “We are extremely pleased with this significant order and continued cooperation with Ma’aden that is growing to be a global mining company.

“Our previous deliveries have included grinding, flotation and filtering technologies as well as alumina calcination technology, and three sulphuric acid plants. Our proven technologies and services enable them to get the best value from their resources and build sustainable operations.”