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.
Denmark’s FLSmidth completed Wednesday the acquisition of Sandvik’s Mining Systems unit with the transfer of the assets in South Africa, which were awaiting merger control clearance
With the deal, FLSmidth has taken over the Swedish equipment and tool manufacturer’s continuous surface mining and minerals handling technologies, which strengthen the company’s core minerals business, it said in a statement.
“By integrating the mining systems projects business into its offerings, FLSmidth closes the gap and covers a wider range of the full mining value chain,” the Danish firm said.
Now FLSmidth can provide equipment and services from the primary crushing point in the mine and the transport from pit to plant all the way through the minerals processing plant to the tailings handling, it noted.
“With the completion of the South African assets we have added references, local expertise and improved ability to deliver complete solutions to our Sub-Saharan customers,” Manfred Schaffer, Group Executive Vice President, Minerals Division, noted.
Sandvik’s intention to divest Mining Systems was first communicated in 2015. The company signed an agreement in 2016 to divest its Mining Systems operations to the private equity company CoBe Capital, but the deal fell through.
Comments
John de Beer
The picture of an Underground Drill Rig does to really give the correct impression of the Product line sold.