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Master Drilling acquires Atlantis

14th September 2018

By: Martin Creamer

Creamer Media Editor

     

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The strengthening of the diversified geographic footprint of mining technology company Master Drilling is continuing with last week’s announcement that the JSE-listed company had entered into agreements to acquire the businesses of the Atlantis Group, a South African headquartered multinational mining contracting company specialising in raiseboring, blind boring and other drilling services.

Master Drilling last week reported satisfactory results for the six months to June 30, supported by its strategy of geographic, sector and commodity diversification, with the R107.5-million to acquire Atlantis being settled through existing resources over the next 12 months.

Master Drilling said that the acquisition would strengthen its international footprint and augment its pool of skills and expertise, especially in India, Brazil and Zambia, where both Master Drilling and Atlantis had active raiseboring businesses. In South Africa, the acquisition also comprised a mining suppliers and parts manufacturing business and enabled the provision of equipment to Atlantis’ empowerment partner.

“The acquisition offers us a great opportunity to increase our presence and capabilities in key geographies where we already have a presence by assuming responsibility for Atlantis’ contracts and operations. In addition, we expect that the deal will have a positive effect on earnings and reduce our capital expenditure requirement for the year,” Master Drilling CEO Danie Pretorius said in a release to Creamer Media’s Mining Weekly .

As part of the transactions, Master Drilling has also committed to support Atlantis’ current empowerment partner, Laone Mining & Engineering. The deal will see Master Drilling supplying three boring machines to Laone that will be used to service an existing raiseboring contract that Atlantis has with Cullinan, the South African diamond mine.

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Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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