Tag Archives: mining M&A

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Hitachi Construction Machinery’s H-E Parts to acquire Brake Supply Inc

Equipment maintenance, Mining equipment, Mining mergers and acquisitions, Mining services, , , ,

H-E Parts International (HEPI), a provider of aftermarket solutions for the mining and heavy equipment industries, has agreed to acquire substantially all the assets of Brake Supply Inc, a North American leader in aftermarket components for heavy equipment.

“This acquisition allows us to strengthen our offerings and expand our footprint,” Simon Pelletier, CEO of H-E Parts, says. “By welcoming Brake Supply into the H-E Parts family, we are combining our capabilities to offer an even wider range of products and services to our customers. We are excited to bring Brake Supply’s associates, customers, and suppliers into our organisation.”

Brake Supply, headquartered in Evansville, Indiana, specialises in key components such as cylinders, final drives, differentials, transmissions and complete rollouts of heavy-duty offroad equipment. Joining H-E Parts provides Brake Supply the opportunity to grow in new regions such as South America, Africa and Australia, where H-E Parts has an established presence, H-E Parts says.

“Brake Supply has been committed to providing customers with reliable, cost-effective alternatives to OEM components for decades,” David Koch, CEO of Brake Supply, says. “Joining forces with H-E Parts allows us to build on that commitment and extend our reach, creating new growth opportunities for our team members and even more value for our customers.”

The acquisition is expected to conclude in early December 2024.

H-E Parts provides aftermarket parts, components and solutions for the mining industry. With operations in North America, Latin America, Africa and Australia, H-E Parts offers expertise in engineering, manufacturing and aftermarket support. H-E Parts is a subsidiary of Hitachi Construction Machinery (HCM).

Accenture expands operational technology expertise with True North Solutions buy

Mining mergers and acquisitions, Mining services, , , , , , ,

Accenture has acquired True North Solutions, a provider of industrial engineering solutions headquartered in Calgary, Alberta, in a deal that provides it further exposure to the oil and gas and mining industries.

True North Solutions expands Accenture’s expertise in operational technology (OT) in these sectors. OT is the hardware and software systems with which companies run and control physical equipment and facilities, such as pipelines, refineries, plants and mines.

Accenture will help clients better connect their OT to their enterprise IT systems, for example, to optimise the output and safety of existing equipment and facilities through real-time data analytics, it says. Accenture says it will also work with the True North Solutions team to engineer and commission new field operations and facilities where OT and IT are seamlessly integrated and processes are digitized from the start.

“True North Solutions brings boots-on-the-ground understanding of how to design, build and commission our clients’ critical assets and infrastructure,” Adam Foster, Accenture Canada’s Energy Portfolio leader, said. “We are combining True North Solutions’ unique expertise with our advanced digital capabilities, such as digital thread, predictive maintenance and intelligent asset management, to improve the performance and safety of our clients’ field operations.”

David Morgenstern, President of Accenture in Canada, said: “In welcoming True North Solutions to our Industry X and Resources team at Accenture, we will help our clients benefit from transformative technologies such as generative and predictive AI through digitally enabled field operations. Smart operations means greater productivity and predictability, helping clients operate with increased efficiency and safety, and we’re pleased to be advancing these capabilities in the industry and in Canada.”

Blair Hanel, CEO of True North Solutions, added: “By joining Accenture, we’re giving our clients in North America access to Accenture’s digital leadership in areas such as cloud, data and AI, and global scale, which will help them advance their businesses. Our teams will benefit from the opportunity to grow and deepen their careers in one of the world’s most innovative, inclusive and global organisations.”

True North Solutions’ services encompass engineering and commissioning, industrial automation solutions, enterprise asset management, OT cybersecurity and digital infrastructure for industrial telecommunications. It brings a team of 95 experts in automation, instrumentation and electrical engineering to Accenture, who will join the company’s digital engineering and manufacturing service, Industry X.

Intertek to add Base Met Labs metallurgy capabilities to offering

Automation, Environmental, Mining mergers and acquisitions, Mining services, Sustainable mining, , , , , ,

Intertek, a leading total quality assurance provider to industries worldwide, has agreed to acquire Base Metallurgical Laboratories Ltd. and Base Met Labs US Ltd (Base Met Labs), a leading provider of metallurgical testing services for the minerals sector based in North America.

Founded in 2014 and operating from laboratories in Kamloops, British Columbia, and Tucson, Arizona, Base Met Labs’ specialist focus on metallurgy capabilities complements Intertek Minerals existing strengths in geochemistry, mine site laboratories and trade inspection, creating attractive commercial synergies within Intertek’s high-quality service portfolio, Intertek says. The acquisition broadens the group’s differentiated ATIC offering in the minerals industry, expanding its Americas footprint to access the largest and growing market for mining activity globally, across Canada, the United States and Central and South America.

With a testing focus on gold, copper and other critical metals, Base Met Labs benefits from growing demand for minerals testing underpinned by strong fundamentals, with significant growth potential in battery and energy metals that will help the world’s leading mining companies accelerate into a sustainable future, Intertek adds.

With over 40 specialists operating from laboratories in Canada and the US, Base Met Labs provides a comprehensive range of metallurgical capabilities including comminution testing, flotation, automated mineralogy, mineral processing, mineral analysis and mineral extraction. Base Met Labs helps clients optimise mineral processing operations and maximise resource potential. It has also recently partnered up with SRK Consulting in Canada to offer a “pre-concentration screening test” using X-ray Transmission (XRT) based sensor technology that can not only indicate pre-concentration amenability, but also provides key inputs into the pre-concentration strategy selection and evaluation.

Intertek Minerals says it is constantly evaluating new instrumentation and technology to continuously improve quality, safety and efficiency and deliver value for our customers. Using advanced technology and innovation with a strong focus on automation, Intertek provides customers with faster, more efficient analytical options that increase production without compromising on quality. The acquisition also capitalises on the recent opening of the group’s innovative Minerals Global Centre of Excellence in Perth Australia, one of the world’s largest and most advanced minerals laboratories.

André Lacroix, Chief Executive Officer of Intertek, said: “The acquisition of Base Met Labs is highly complementary to our ATIC service offering, establishes a minerals testing footprint for Intertek on the American continent and creates attractive growth opportunities with existing and new clients. We welcome the Base Met Labs team to Intertek and look forward to working together to help the world’s leading mining companies accelerate into a sustainable future, enabling us to fulfil our mission of making the world a better, safer, more sustainable place for all.”

John Fowler, Intertek’s Senior Vice President of Minerals Exploration and Production, added: “Intertek Minerals is committed to providing a superior service for the mining industry and we are constantly challenging ourselves on the latest innovations in automation, safety, productivity and sustainability. By adding these metallurgical services to our portfolio further strengthens our commitment to support the mining industry across the whole supply chain, whilst also expanding our geographic presence in the Americas, driving enhanced access to some of the largest markets for mining activity globally.”

Bis’ Rexx, Razor and HUGO solutions up for sale

Automation, Environmental, Mining equipment, Mining mergers and acquisitions, Mining services, Sustainable mining, , , ,

Australia-based Bis has put its innovation portfolio up for sale, a company spokesperson has confirmed.

The company, which serves numerous mining houses across Australia, handles, hauls and processes millions of tonnes of raw materials and commodities every year.

On the logistics side, it has a fleet for out-of-pit, on-road and off-pit applications. When it comes to material handling, it refers to itself as an expert in production input management, including inbound supply chain, out of pit, run of mine, processing, ship and train loading. And its underground services cover the hire of equipment, maintenance services and contract mining, and labour hire.

In the last decade or so, the company has leveraged this position and tight client relationships to develop innovative products aimed at solving a number of challenges mining companies experience – on surface and underground.

In the former category is the Bis Rexx hauler (pictured), a 160-t-payload mining truck with multiple steering and driving axles, enabling it to handle gradients of up to 12% when fully loaded while reducing fuel consumption by up to 40%. Rexx has already been widely trialled, including at Griffin Coal’s Ewington mine, Gold Fields’ Granny Smith mine and Glencore’s Murrin Murrin nickel operation, all in Western Australia. Both hybrid and electric power options have been discussed in the past, in addition to the potential for retrofitted automation.

Underground, Bis has developed a specialised grader for the coal market called Razor. The key features of Razor include high engine power and grader mass that has been optimised to increase tractive effort by over 30% and the use of four gears (as opposed to three) for greater flexibility on difficult ground. Whitehaven Coal secured one of the first units after launch in 2020.

The most recent innovation to come out of Bis is the HUGO (Hybrid Underground Operations) underground mining truck. Offering payloads of up to 80 tonnes, HUGO comes with a diesel-electric hybrid power train that, the company says, meets the current need for lower emission solutions, while providing a platform for decarbonisation and development in using alternative energy sources. The truck brings a 40% increase in productivity compared with today’s largest available 60-65 t trucks and a 50% increase in speed-on-grade capability, Bis says. Late last year, the company said it had reached the next stage in the commissioning process of HUGO with Proof of Concept testing.

GR Engineering’s Mipac boosts process control expertise with Paradigm buy

Mining mergers and acquisitions, Mining services, , ,

GR Engineering Services Limited’s wholly owned subsidiary, Mipac Holdings Pty Ltd, has entered into an agreement to acquire Paradigm Engineers Pty Ltd, a provider of control systems and electrical engineering, automation and technology services based in Western Australia, in a deal worth A$9 million ($5.9 million).

This transaction enhances Mipac’s control system and electrical design capabilities and expands its existing footprint in Western Australia, the company said, adding that Paradigm has significant expertise working across a range of commodities, including iron ore, gold and battery minerals.

GR Engineering said: “Process controls have become increasingly relied upon as a platform to extract efficiencies and improve safety outcomes in processing operations through the adoption of technology and software solutions. Advances in control system design and product technologies and their adoption in operations are being mandated across the industry by leading industry participants to support the safe and optimised performance of assets.”

Paradigm, which states as having clients such as BHP, Rio Tinto and Newmont, is forecasting financial year 2024 revenue of A$16 million and an EBITDA margin percentage consistent with Mipac, GR Engineering says. The combined Mipac and Paradigm business is expected to generate revenue of approximately A$50 million on a pro-forma basis.

Newmont moves a step closer to acquisition of Newcrest Mining

Mining mergers and acquisitions, Precious metals, , , ,

Following completion of due diligence, Newmont says it has entered into a binding Scheme Implementation Deed (SID) under which Newmont will acquire 100% of the issued share capital in Newcrest by way of an Australian court-approved Scheme of Arrangement.

This circa-$18 billion deal will result in Newmont – already the largest gold miner by production – inheriting a significant copper production base too.

Tom Palmer, President and CEO of Newmont, said: “The combination of Newmont and Newcrest represents an exceptional value proposition for shareholders and other stakeholders. It creates an industry-leading portfolio with a multi-decade gold and copper production profile in the world’s most favourable mining jurisdictions.

“Following a robust due diligence process, we have identified a number of opportunities to unlock substantial value and will apply our experience and expertise to Newcrest’s complementary and exceptional portfolio of long-life, low-cost gold and copper assets. Leveraging our experience from the acquisition of Goldcorp four years ago, we are positioned to deliver an estimated $500 million in annual synergies and an estimated $2 billion in incremental cash flow from portfolio optimization opportunities, both part of our strategy to maximise value for shareholders and other stakeholders.”

Palmer continued: “This transaction also increases Newmont’s annual copper production – a metal vital for the new energy economy – and adds nearly 50 billion pounds (22.7 Mt) of copper reserves and resources from Newcrest to our robust and balanced portfolio. We intend to quickly realise these opportunities to create superior value for our shareholders, workforce, host communities and governments.”

Newcrest’s Chairman, Peter Tomsett, added: “This transaction combines two of the world’s leading gold producers, bringing forward significant value to Newcrest shareholders through the recognition of our outstanding growth pipeline. In addition to the ongoing benefits of merging these premier portfolios, the combined group will set a new benchmark in gold production while benefitting from a material and growing exposure to copper and a market leading position in safety and sustainability. The Newcrest Board is unanimously recommending the proposal. We are very proud of the entire Newcrest team for building a world class metals business, which will form a key part of the combined group. We believe our shareholders and other stakeholders can look forward to an exciting and prosperous future.”

For the last eight years, Newmont has been recognised as the top gold miner in the Dow Jones Sustainability Index, it says, regularly ranking as the most transparent company for sustainability disclosure in the S&P 500. Beyond Newcrest’s well-established sustainability credentials and top quartile industry ranking, Newmont will apply its proven sustainability practices and leadership to Newcrest’s assets by:

  • Bringing a clear focus on mitigating safety risks along with visible, felt leadership in the field to drive a fatality-free business;
  • Building on Newmont’s sustainability leadership and commitment to meaningful social engagement based on inclusion, transparency and integrity in order to be the partner of choice for governments, host communities, suppliers and workforce;
  • Remaining committed to Newmont’s leading environmental stewardship practices and climate goals; and
  • Creating a diverse, inclusive and equitable workplace where everyone is welcome, attracting and retaining the breadth of skills and innovation needed to continuously improve performance

This acquisition, Newcrest says, would create a world-class portfolio of assets with the highest concentration of Tier 1 operations, primarily in favourable, low-risk mining jurisdictions. Supported by this portfolio, Newmont will be well-positioned to generate strong, stable and lasting returns with best-in-class sustainability performance, well into the future.

Through the combination of high-quality operations, projects and reserves, this portfolio is expected to deliver:

  • Outstanding depth and breadth of global production focused across stable mining jurisdictions:
    • Approximately 8 Moz of total combined annual gold production upon closing the transaction, with more than 5 Moz of gold, or two-thirds of total gold production, from 10 large, long-life, low cost, Tier 1 assets; and
    • Combined annual copper production of approximately 350 MIb from Australia and Canada
  • An extensive portfolio of greenfield and brownfield growth options from the industry’s largest reserve and resource base:
    • 96 Moz of gold reserves declared by Newmont and 52 Moz declared by Newcrest, along with 111 Moz and 68 Moz of gold resources, respectively;
    • Significant majority of combined entity’s gold reserves will be located in the Americas and Australia; and
    • Value-generating projects across some of the world’s most prospective regions including Canada’s Golden Triangle
  • Meaningful increase in copper reserves, a critical metal in facilitating the transition to a new energy economy;
  • Maintaining a disciplined approach to mine planning and project development at reserve gold pricing, creating a resilient business to maximise long-term returns.

The combined business would be immediately supported by Newmont’s scalable, integrated operating model with a deep bench of experienced leaders, subject matter experts and existing regional teams in Australia and Canada, it says. Building on the experience gained following the acquisition of Goldcorp, Newmont has identified the opportunity for substantial synergies:

  • $500 million of total annual pre-tax synergies anticipated to be achieved within the first 24 months following the completion of the transaction:
    • Approximately $100 million of pre-tax general and administrative synergies driven by Newmont’s scalable, integrated operating model with existing regional teams in Australia and Canada;
    • Approximately $200 million of supply chain synergies from best-in-class pricing and existing strong partnerships with key suppliers, smelters and equipment manufacturers through unprecedented economies of scale; and
    • At least $200 million of benefits from Newmont’s proven Full Potential continuous improvement program, which improves costs and productivity through the rapid replication of leading processes and advanced technology.

Further value creation opportunities are anticipated as the Newcrest portfolio is fully integrated into Newmont, bringing together the industry’s best talent and processes across two key mining jurisdictions, including, among other things, the benefits from the experience of Newcrest’s world-class block caving team, it said.

McLanahan to expand water recycling offering with acquisition of filtration leader Diefenbach

Environmental, Mining mergers and acquisitions, Mining services, Sustainable mining, Water management, , , , , ,

McLanahan Corporation has signed an agreement to acquire Diefenbach, an Italian manufacturer of filter presses and thickeners based out of Medolago, Italy.

The two companies, which have been working together on projects since 2013, expect the acquisition to close during the June quarter of 2023.

Diefenbach has been a leader in liquid-solid separation using filter presses since its founding in 1907, when the company was focused on producing presses for the olive oil industry. In the 1950s, Diefenbach expanded into the recycling and filtration of industrial wastewater. Today, Diefenbach has sold thousands of machines and has extensive experience in selling and manufacturing this equipment for the mining and aggregate industries, as well as for chemical manufacturing, food and beverage processing, battery recycling, PET recycling, wastewater treatment and more.

As the focus on a circular economy and recycling water from industrial processes becomes more prominent on a global scale, McLanahan was looking for a partner to continue expanding its offerings in this space, it said. This will allow the company to ensure it is able to offer a more comprehensive solution to customers and industries around the world in support of these changing requirements for processing.

Cory Jenson, EVP – Sales and Business Development at McLanahan, said: “As we look toward the future, we see a growing need for wastewater and tailings management in a variety of industries as part of the circular economy. Every industry is being challenged to use less and less water and to recycle the water they are using. This acquisition offers significant synergies to McLanahan’s existing tailings solutions in mining and aggregates, which continue to remain a critical part of McLanahan’s product offerings. This new partnership allows us to offer a more competitive solution to our tailings partners around the world.”

Diefenbach will continue to operate as an independent brand in the marketplace, focusing on its core industries and markets around the world.

Komatsu to expand its underground mining equipment offering with GHH acquisition

Automation, Equipment maintenance, Mining equipment, Mining mergers and acquisitions, Mining services, , , ,

Komatsu has entered into an agreement to acquire Gelsenkirchen, Germany-based GHH Group GmbH (GHH), in a deal that will see it significantly expand its underground mining equipment market share.

Founded in the 1960s and currently part of the German-owned Schmidt Kranz Group, GHH offers a wide range of equipment focused on loaders (LHDs) and articulated dump trucks in the mid-seam mass mining, narrow-vein and low-profile market segments The company also supports customers with aftermarket parts and service support through the entire life of each machine.

With this acquisition, Komatsu will add GHH’s factories and rebuild facilities in key markets, in addition to its robust product offerings and talented staff, the company said.

Peter Salditt, President and CEO, Komatsu Mining Corp, said: “We are very excited about this acquisition as it represents a great opportunity for Komatsu to expand its offerings for underground mining equipment and accelerate new product development through synergies with Komatsu’s existing team and product offerings.

“By adding GHH’s factories and rebuild facilities in key markets in Europe, South Africa, India and Chile, we also aim to strengthen production and service capabilities for our customers.”

Komatsu intends to continue the service GHH provides and plans to support business as usual post-acquisition. The combined team will then work together to expand Komatsu’s offering for underground mining equipment and increase customer access to products in new territories.

GHH Group CEO, Dr Jan Petzold, said: “GHH is excited to be able to start a new journey with a strong player in the mining world. This opens huge doors for our people and our products to develop further and grow beyond what we could have hoped for.

“This is the next logical step in becoming a true global player and we look forward to becoming part of the Komatsu family.”

The official close of the acquisition is projected for the first half of 2023. 

In line with its ongoing mid-term management plan “DANTOTSU Value – Together, to ‘The Next’ for sustainable growth”, Komatsu says it is working to expand offerings for underground hard-rock mining, creating new value for customers with the development of new equipment, processes and technologies that will help operations step forward to the next stage for the workplace of the future and provide a more sustainable environment for the next generation.

GHH for its part has been doing exactly this, expanding its offering of, especially, load and haul equipment for the hard-rock mining space with the launch of the likes of the MK-42 underground truck (pictured) and, most recently, the LF10-NEO.

Epiroc to acquire Australia-based GET player CR

Mining equipment, Mining mergers and acquisitions, Mining services, Steel and iron ore, , , , , , , , ,

Epiroc is bolstering its exposure to the ground engaging tools (GET) market through the planned acquisition of Australia-based CR.

The company has agreed to acquire the GET and related digital solutions company as part of a plan to expand its “first-rate offering” of essential consumables and digital solutions, it says.

CR, which has an offering covering surface and underground mining, is headquartered in Brisbane and operates globally. The company’s products include cast lips, teeth, and protective shrouds installed on mining buckets and loaders. Its digital solutions include, among other offerings, the real-time GET loss detection system, GET Trakka, and the Titan 3330 payload management system. The solutions strengthen safety and productivity, and protect against expensive delays in the mining operations, according to CR.

CR has about 400 employees and had revenues of about A$240 million ($163 million) in the 12 months ending September 30, 2022.

“This acquisition will expand our offering of innovative and high-quality consumables and digital solutions that strengthen customers’ productivity and safety,” Helena Hedblom, Epiroc’s President and CEO, says. “We look forward to welcome the strong team at CR to Epiroc.”

The acquisition is expected to be completed in the first half 2023.

Sandvik to pair Polymathian portfolio with Deswik solutions for ‘unique’ combination

Equipment maintenance, Mining equipment, Mining mergers and acquisitions, Mining services, Mining software, , , , , , ,

Sandvik has signed an agreement to acquire Polymathian Industrial Mathematics, an Australia-based provider of advanced mine optimisation software and services.

Polymathian will be reported in Digital Mining Technologies, a division within business area Sandvik Mining and Rock Solutions (SMR), Sandvik says.

Polymathian’s solutions for automated decision making and process optimisation complements the offering of Deswik, a leading mine planning software company which Sandvik acquired in April, the company added. Its product offering includes mining operations optimisation and simulation software for areas such as extraction process, material flow, energy and fuel consumption, and maintenance efficiency. It counts several of the world’s largest mining companies as customers.

Stefan Widing, President and CEO of Sandvik, said: “With the acquisition of Polymathian we continue to broaden our offering to enhance productivity in our mining customers’ value chain. Polymathian’s automated decision making and process optimisation, together with Deswik’s software tools for planning and managing production, represent a unique combination in the market.”

Polymathian will be a part of Business Unit Deswik and remain OEM agnostic, according to Sandvik.

The acquisition will enable Sandvik to further accelerate the development of its end-to-end optimisation, battery-electric vehicle (BEV) and AutoMine® offerings, by leveraging Polymathian’s unique skillset and platform, it added.

Mats Eriksson, President of Sandvik Mining and Rock Solutions, said: “Polymathian is a great addition to Sandvik Mining and Rock Solutions, and enables SMR to now have a unique digital portfolio that will help our customers to optimise their data-driven operations across the value chain and ensure their mine design is fully compatible with technologies like AutoMine and BEVs. I am very pleased to welcome Polymathian to the Group.”

Polymathian was founded in 2013, has 50 employees and is headquartered in Brisbane, Australia. The company’s annual revenues per June 2022 were around SEK100 million ($9.6 million). The transaction is expected to close during the March quarter of 2023.