JSE-listed Master Drilling has acquired a 25% stake in A&R Group.
A&R, with its subsidiaries A&R Engineering & Mining Supplies and Lamproom Solutions & Consulting, specialises in mine mechanisation and digitisation.
A&R Engineering operates in the underground rail-bound and trackless equipment hardware environment, as well as the installation of smart devices for measuring productivity, missing persons location and vehicle tracing.
Lamproom, in turn, offers its Comprehensive Mine Management System, which currently manages more than 100 000 lamps on a daily basis.
Master Drilling has, over the years and through acquiring a stake in Embedded IQ more than ten years ago, developed proximity avoidance hardware for underground rail-bound and trackless vehicles to facilitate safe and efficient mining. It tracks the movements of more than 50 000 people and machines underground daily in South Africa.
Master Drilling CEO Danie Pretorius says technological innovation has always been a priority for the company and it continues to diversify its services and invest in businesses that can meet clients’ demand for increased mechanisation and digitisation.
He adds that A&R is a capital-light businesses with short return cycles, while minimal working capital is needed for the deployment of projects. The company is also highly cash generative and has reported stable earnings in the past four years.
A&R MD Giel Oberholster notes that, while A&R is focused on providing its services and hardware to South African clients, with a focus on Tier 1 and Tier 2 underground miners, it believes there is an opportunity to broaden its reach across different markets through this transaction, considering that Master Drilling operates globally.