Tag Archives: Valmec

Altrad eyes ‘value-adding opportunity’ with Valmec acquisition

ASX-listed energy services group Valmec is to be acquired by Altrad Australia Pty Ltd in a deal that values Valmec at A$52 million ($38 million).

The two have entered a binding Scheme Implementation Deed (SID) for the cash acquisition by Altrad for Valmec, with the scheme to be voted on at a shareholders meeting in mid-October 2021.

Altrad, a leader in industrial maintenance services headquartered in France, has identified Valmec as a significant value-adding opportunity for its client base and service offering.

Altrad Services Chief Executive Officer, Asia Pacific Region, Neil Sadler, said: “The acquisition of Valmec will mark another transformational milestone for our Asia-Pacific business and deliver a value-accretive step change in the scale and diversity for our company. Once the scheme is implemented, I look forward to working with my leadership team and the Valmec team to identify value-adding opportunities for our combined existing and prospective client bases.”

Among other work in the mining sector, Valmec has previously been contracted at Newmont’s Tanami project in the Northern Territory of Australia – infrastructure works at the Tanami Expansion 2 (TE2) project – and Mineral Resources Wodgina lithium project in Western Australia – delivering a gas pipeline.

Valmec extends stay at Tanami expansion project

Valmec has been awarded A$23 million ($14.9 million) worth of new projects across Australia, including another works package from Newmont for its Tanami gold mine in the Northern Territory.

The contract with Newmont Mining Services Pty is for an additional package of infrastructure works at the Tanami Expansion 2 (TE2) project, Valmec said.

The energy services company was awarded the original A$6 million TE2 contract back in June 2019, with the majority of the works expected to be completed by November 2019.

Newmont’s board signed off on the TE2 project in October 2019. The project is expected to exceed the company’s required internal rate of return with profitable production and mine life extending beyond 2040. The expansion includes construction of a 1,460 m shaft, additional capacity in the processing plant, and supporting infrastructure to enable profitable recovery of ore at a depth of 2,140 m below surface.

Valmec, meanwhile, said the group’s current order book totalling circa-A$65 million remains “robust”, with several larger upstream energy and infrastructure projects also expected to be committed before June 30, 2020.

Valmec’s Managing Director, Steve Dropulich, said: “Together with Valmec’s current suite of services in onshore gas infrastructure, our latest awarded projects and service contracts are testament to the resilience of our market offerings, even within these challenging COVID-19 economic conditions.”