Perth, Australia-based Emeco International recently acquired the assets of JK Mining for AU $13 million (U.S. $11.4 million). JK’s fleet is primarily the same type of earthmoving equipment that Emeco uses throughout its global operations, the company said.
Before the sale, JK Mining operated as a contract miner in Queensland, with 19 employees and 30 heavy earthmoving and support vehicles. Their existing load and haul mining contracts will be completed before settlement of the transaction.
When the acquisition is completed, Emeco will re-structure the JK Mining business into a fully maintained rental business model and integrate it into its existing Queensland operations.
Separate to the acquisition, Emeco negotiated a new rental agreement to supply a large fleet of earthmoving equipment to Kagara Zinc for use at its Balcooma Mine for the life of the mine. Emeco will supplement its existing equipment with the additional equipment, staff and facilities acquired from JK Mining. Emeco expects the new arrangements to generate annual revenues of about AU $15 million.
“The acquisition of JK Mining assets and the finalization of negotiations with Kagara Zinc are important strategic developments for Emeco and provide further evidence of the growing acceptance of the fully maintained dry equipment rental model by mining companies,” said Emeco chief executive Laurie Freedman. “The agreement with Kagara Zinc further advances our strategy of diversifying our resources sector exposure by pursuing opportunities to hire our machines and provide our services to base metal producers.”
Emeco has a strong rental division in North America with branches in Atlanta, Houston and the Edmonton, Alberta, area. Emeco North America is No. 62 on the RER 100.