Tag Archives: mine pumps

Babylon adds to water management offering with RHB Engineering buy

Babylon Pump and Power’s water management activities are set to expand with the planned acquisition of RHB Engineering Pty Ltd (RHB) for A$3 million ($2.04 million).

The transaction, which is expected to complete on January 31, will see Boddington, Western Australia-based RHB become a part of Babylon’s expanding groundwater and water ingress teams in Australia. The company provides rental pumps and specialist mechanical services in the water management field, with these pumps and services critical to mining operations in the southwest and other areas of Western Australia, Babylon said.

The RHB assets have been independently valued at over A$2.6 million, according to Babylon, having high utilisation rates and providing immediate earnings contribution to the company through existing rental contracts with clients.

Babylon Managing Director, Michael Shelby, said: “Management of groundwater and water ingress issues remain a ‘mission critical’ requirement for the mining and resource sector and the acquisition of RHB is a further strategic step into this attractive sector. This is an exciting and well-priced acquisition for Babylon which will expand our rental fleet, client base and water management activities. The acquisition complements our current operations with minimal increase in overheads while continuing to advance our rental and water management strategy.”

In August, Babylon executed a business asset acquisition agreement to acquire the operational assets of Resource Water Group, which provides bore field test pumping equipment and related data collection services as well as a range of water management disciplines to the mining industry.

This followed a June announcement from Babylon saying that it planned on expanding its mine water management activities.

Babylon pumped after winning new BHP contract

Babylon Pump & Power has secured a new supply of power generation and dewatering contract with BHP.

Under the contract, Babylon will supply and install power generation and dewatering pumping equipment for the major miner for a minimum term of six months. The works are expected to begin immediately, with commissioning in November. The agreement is estimated to generate some A$670,000 ($472,471) in revenue in its 2019 financial year.

While the contract only has an initial six-month term, the Babylon board said it was “optimistic” an agreement could continue at the end of this period on a rolling basis.

Back in July, Babylon secured a contract through ADENCO Water Management & Civil Engineering to supply, install and maintain power generation equipment for the Surplus Water Pipeline project at BHP’s Mining Area C operation.