Mining contractor Moolmans, a subsidiary of JSE-listed Aveng, has entered into a new five-year contract with its long-standing client and manganese miner Tshipi é Ntle valued at about R7bn.
“The award of this contract signifies a key strategic milestone for Moolmans, which is actively selecting and entering into long-term and commercially viable contracts, coupled with the necessary investment in heavy mining equipment,” Aveng said in a statement.
“Moolmans continues to pursue other opportunities in Sub-Saharan and West Africa.”
After a string of short-term contracts, the company finally landed a longer-term deal that will allow Moolmans to invest in new equipment that will boost availability and overall production volumes.
The company has since ordered 16 new Cat 785D trucks, the group said. Five of the trucks used in high-production mining applications are already on site and awaiting commissioning. The other 11 trucks are expected to be fully operational by June.
Two new Liebherr excavators and four new bulldozers are on back order, together with an existing Liebherr excavator undergoing a full OEM (original equipment manufacturer) refurbishment.
Tshipi é Ntle, which means “beautiful steel” in Setswana, mines manganese in the Northern Cape. Moolmans offers specialised services to the mining industry, from open-cut mining to shaft sinking and access development, as well as underground mining.
Having provided contract mining services to Tshipi é Ntle since 2011, Moolmans said the contract award would result in significant investment in equipment, people, processes and systems, and is firmly aligned with Aveng’s goal of ensuring a fit-for-purpose organisation capable of sustainable and profitable long-term growth.
Johannesburg-based infrastructure, resources and mining group Aveng has been on a restructuring path that has seen it exit all its noncore businesses.
This has given the group room to focus on its two cash-generative core businesses: McConnell Dowell, a major engineering, construction and maintenance contractor operating in the building, infrastructure and resources sectors in Australia, New Zealand, the Pacific Islands, Southeast Asia and the Middle East; and Moolmans, its mining arm in SA.
Aveng’s share price was 2.14% down at R13.70 in afternoon trade on Tuesday, having fallen more than 9% since the beginning of 2023.
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