The A$106-million acquisition of engineering services company Minproc by international engineering and project management services provider AMEC, in November 2009, will see the new entity, AMEC Minproc, expanding its client base within the mining sector.

By combining the two companies, AMEC Minproc is able to expand its mining influence into the African and South-East Asian markets. AMEC Minproc’s Africa operations MD, Colin Kubank, says that the combined strength of people, capability and geographi- cal coverage was the main driving force behind the acquisition.

He believes that it will create synergy through having global operations, complementary sets of expertise, and a strong safety and risk management culture. The company has access to a sig- nificant base of major mining clients that include the likes of diversified miners BHP Billiton, Rio Tinto, Anglo American and Brazilian mining giant Vale, Kubank says.

Headquartered in London and with yearly revenues in excess of £2,5-billion, AMEC employs over 21 000 people in more than 40 countries and is listed on the LSE. Kubank says that it employs highly skilled, talented people and prides itself on achieving both global excellence and local delivery, which covers the design, delivery and maintenance of strategic and complex assets for its customers.

Minproc has an internationally recognised process engineering and project record, spanning more than three decades. The company has completed more than 400 feasibility studies and over 240 major design- and construction-related mineral resources develop- ment projects in more than 37 countries across the globe.

AMEC Australia and South-East Asia regional director Steve Ciccone believes that Minproc previously had a fairly narrow offering, focusing mainly on the design of minerals processing plants. With AMEC and Minproc joining forces, all aspects of delivering a project can be covered, from permitting and environmental services to resource evaluation, studies, process and infrastructure design and construction, operator training and asset support services.

He says that this gives clients a one-stop shop, ranging from mineral resources discovery right through to the operation and decommissioning of plants.

The greatest benefit afforded to Minproc as part of the acquisition is the depth of project management resources, engineering and management systems already in place through AMEC’s global operations. AMEC has been involved in multibillion-dollar projects around the world. “Before the acquisition, Minproc was limited in the size of the project it could undertake. However, under the AMEC umbrella, AMEC Minproc will be able to take on larger projects, with a greater service offering, but we will continue to provide engineering and project delivery services into small and medium-sized projects,” says Kubank.

The acquisition sees the addition of 500 people to AMEC’s mining and metals business, which has developed some of the most challenging projects in the world. With the addition of Minproc, AMEC will have about 6 000 people engaged in mining and oil sands projects around the globe.

AMEC Minproc’s business development manager for Africa, Ed Aylmer, believes that, through the acquisition, the company is now able to serve the company’s Canadian mining clients operating in Africa. Further, Minproc could previously only work inside the ‘process-plant fence’, but now has access to all the broader mining skills, including the entire length of the mining development value chain, decommissioning, closure and even training.

AMEC Minproc has its headquarters in Perth, Australia, with regional offices in Adelaide, Brisbane and Johannesburg.

“There will also be a greater opportunity to consolidate the strength of our position and expand into new markets and new sectors, as part of the broader AMEC group,” says Kubank.

AMEC Minproc’s core capabilities lie in the design, procurement, construction and commissioning of mineral resources projects. To date, AMEC Minproc has worked in Namibia, Zambia, the Democratic Republic of Congo, Burkina Faso, Mali, South Africa and Liberia. Its commodity focus has included gold, copper, cobalt, nickel, platinum and uranium.

Kubank adds that his company has also expanded its capabilities to build a substantial coal portfolio, joining forces with US-based coal handling and processing company Elgin Industries to develop its presence in Africa. Further developments also see the company angling to grow its presence in the iron-ore market. Project management firm Roberts & Schaefer is an Elgin Industries subsidiary.

Commenting on the general state of the minerals industry and AMEC Minproc’s outlook for the future, Kubank is positive. “Although the global economic downturn has had its affect, commodity prices are definitely on the rise, resulting in a stronger appetite for resource development. There seems to be a drive to put money back into the ground and the expectation is that there will be a flow-through of projects from exploration to the feasibility study phase and project implementation in a few months,” he says.

AMEC Minproc expects a strong growth pipeline with regard to gold and copper, which will be realised in Africa over the next few years, and Kubank expects that AMEC Minproc will pick up a lot of the business.

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