Contract mining company Redpath Mining subsidiary Redpath (Australia) Holdings has signed a share purchase agreement to acquire fellow contract miner RUC Mining Contractors.
Pending regulatory approvals, it is expected that the acquisition will be completed and that RUC will officially become part of Redpath by June.
Redpath Group CEO George Flumerfelt on March 26 said the acquisition strengthens Redpath’s position in mine development, shaft sinking and raise drilling services.
“Redpath has held RUC in high regard for a long time and this agreement is evidence of the quality of service and expertise it sees across the RUC team. Our combined capabilities will be a compelling proposition to customers and strengthen our position in capturing large and important projects in the future,” Flumerfelt said.
He added that acquiring RUC would give Redpath enhanced scale, capabilities and stronger balance sheet to strengthen the company’s market position and fund growth, particularly in the Australian, African, European and Asian markets.
“Our presence in the Australian market will be comprehensive, with a country-wide footprint able to provide a full range of services and support from both the east and west coasts,” Flumerfelt explained.
Once complete, the acquisition will enable Redpath to deliver a more diverse range of services to customers and opportunities to employees, including mechanised mining, raise drilling and shaft sinking.
In addition, the acquisition will allow for greater connectivity across Australia, bridging the east and west coasts with dedicated plant, assets and training facilities on both sides of the country, capable of carrying out major vertical and lateral development works.
“We are excited about the opportunities this acquisition will create for employees, including more training and professional growth, diversity of projects and exposure to work opportunities around the world,” Flumerfelt said, reiterating that safety would remain a priority.