Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
FLSmidth has today signed an agreement to acquire the assets of the privately owned company Knelson, a Canada based corporate partnership which is active within the minerals industries.
Knelson develops, manufactures, and installs equipment for the recovery of precious metals such as gold, platinum and silver, as well as the enhanced gravity separation of base metals and industrial minerals with over 3000 installations in over 70 countries worldwide. The customer base comprises all the major gold, platinum and silver mining companies.
Knelson is a world leader in the development, design, manufacturing and supply of gravity concentration technology for the global mining and minerals processing industries. The company holds a number of patents that have helped it to achieve the leading market position in the gravity separation of gold from mined ore. The activities are mainly handled out of their headquarters in Langley, British Columbia, Canada.
The purchase includes Knelson’s polyurethane company Progressive Urethane Manufacturers Inc., which will be a valuable addition to FLSmidth’s wear parts supply chain, and Knelson’s fine grinding product business, Knelson Milling Solutions.
“The acquisition of Knelson strengthens FLSmidth’s offerings especially in the precious metals processing segment and supports our ability to serve all the customers’ needs for process technology, process know-how and complete integrated solutions”, Group CEO Jørgen Huno Rasmussen says.
The company was founded by Byron Knelson in 1978. The company today employs around 140 people with son, Brett Knelson, and son-in-law, Doug Corsan, continuing to operate and manage the family-owned company after Byron’s retirement in 2000.
A letter of intent has also been entered into to purchase the assets of Knelson’s operations in Russia. Dependent on governmental approval to acquire the assets, this portion of the transaction is expected to close within the next 90 days.
