The mining services firms, Ausdrill, has announced plans to acquire the underground mining company, Barminco.
The deal, which has been valued at AU$271.5mn (US$197.5mn), will place the Western Australia-based firm as the nation’s second largest mining contractor.
Barminco has approved the deal, which will be split between AUS$25.4mn (US$18.48mn) in cash and AUS$150.7mn (US$109.62mn) in shares.
The two firms previously entered a joint venture dubbed African Underground Mining Services (AUMS) – the JV focused on gold in Ghana, Burkina Faso, Tanzania.
“The combination of surface and underground technical expertise will deliver a mining services business that provides a broad range of services required by our customers, while transforming the Ausdrill Group,” stated Ian Cochrane, Chairperson of Ausdrill.
“Ausdrill and Barminco have worked together successfully for many years through their joint venture in Africa, AUMS, which provides a comprehensive range of underground mining and mine management services from consulting and feasibility management through to mine development and production.”
“By bringing these two businesses together and creating Australia’s second largest mining services company, we will be able to provide a broader range of services for our customers and generate additional opportunities for our employees,” said Paul Muller, CEO of Barminco.