International engineering and project management services provider AMEC is bedding down its takeover of Australian mineral processing group Minproc, which should see AMEC expand its influence in the African mining sector.
AMEC is a FTSE top 100 company, with annual turnover of £2.5 billion and employs 21,000 people in more than 40 countries. AMEC has a strong history in North America including among the Canadian juniors. Two years ago it expanded its presence in South America and the Minproc deal is the next stage of AMEC’s global growth. In expanding to Australia, as was the plan of the takeover, it also widened its footprint to South Africa and the rest of this continent.
Over the past three decades Minproc has completed more than 400 feasibility studies and over 240 major design and construction related mineral resource development projects globally.
The acquisition also enhances the expanded group’s service offering to the mining sector in Africa as Minproc had previously focused mainly on the design of mineral processing plants. Now it has access to all the broader skills that cover the entire length of the mining development value chain.
“Before the acquisition Minproc was limited in the size of the projects it could undertake,” AMEC Minproc’s Africa operations managing director, Colin Kubank, says. “However, under the AMEC umbrella, AMEC Minproc will be able to take on larger projects, but we will continue to provide engineering and project delivery services to small and medium sized projects.”
The acquisition of Minproc adds 500 people to AMEC’s mining and metals business, taking the number of people within the company engaged in mining and oil sands projects around the world to 6,000.
To date, AMEC Minproc has worked in Namibia, Zambia, the Democratic Republic of the Congo, Burkina Faso, Mali, South African and Liberia. Its commodity focus has included gold, copper, cobalt, nickel, platinum and uranium.
“We have also expanded our capabilities to build a substantial coal portfolio, joining forces with Elgin Industries, whose subsidiary is Roberts & Schaefer, a US based company specialising in coal handing and processing. It is a group that does not have a strong presence in Africa,” Kubank says. Further developments also see the company angling to grow its presence into the iron ore market.