JOHANNESBURG (miningweekly.com) – The strengthening of the diversified geographic footprint of mining technology company Master Drilling is continuing with the announcement on Wednesday that the Johannesburg Stock Exchange company had entered into agreements to acquire the businesses of the Atlantis Group, a South African headquartered multinational mining contracting company specialising in raise boring, blind boring and other drilling services.
Master Drilling last week reported satisfactory results for the six months to June 30, supported by its strategy of geographic, sector and commodity diversification, with the R107.5-million to acquire Atlantis being settled through existing resources over the next 12 months.
Master Drilling said that the acquisition would strengthen its international footprint and augment its pool of skills and expertise, especially in India, Brazil and Zambia, where both Master Drilling and Atlantis have active raiseboring businesses. In South Africa, the acquisition also comprises a mining suppliers and parts manufacturing business and enables the provision of equipment to Atlantis' empowerment partner.
“The acquisition offers us a great opportunity to increase our presence and capabilities in key geographies where we already have a presence by assuming responsibility for Atlantis’ contracts and operations. In addition, we expect that the deal will have a positive effect on earnings and reduce our capital expenditure requirement for the year,” Master Drilling CEO Danie Pretorius said in a release to Creamer Media's Mining Weekly Online.
As part of the transactions, Master Drilling has also committed to support Atlantis’ current empowerment partner, Laone Mining and Engineering. The deal will see Master Drilling providing three boring machines to Laone that will be used to service an existing raiseboring contract that Atlantis has with Cullinan, the South African diamond mine.
“This transaction also provided a great opportunity to support an ambitious and driven 100% black-owned engineering business with the appetite to make their mark in the raiseboring industry,” added Pretorius.