Mastermyne acquires DMS
MACKAY-BASED mining services company Mastermyne is diversifying its assets to avoid the cyclic nature of the coal industry.
The company has increased its foothold in the market by acquiring Diversified Mining Services.
Mastermyne chief executive and managing director Tony Caruso said the acquisition would significantly increase the range of services the group could offer to the mining and other industries.
"We've had a strategy for some time that we wanted to expand our capabilities in the maintenance area," he said.
"Mastermyne is a very strong business in the underground coal sector, so the strategy was always around expanding our above-ground capabilities."
Mr Caruso said having diversification in the company was very important.
"What we were looking for was a business that gave us a diversification away from underground coal, but also into other sectors as well," he said.
Making the business more "counter-cyclic" was a policy of Mastermyne, Mr Caruso said.
Mr Caruso said when the coal sector was in a downward spiral like now, diversified revenue streams would help balance out the company.
Mastermyne has agreed to acquire DMS for $20 million.
According to an Australian Stock Exchange Statement from Mastermyne, DMS has about 300 employees.
"The plan is certainly not to do anything on the ground with the business," Mr Caruso said.
"There's some corporate restructuring which won't affect anyone locally."
Mackay Chamber of Commerce chairman Tim Miles said it was fantastic news.
He said with Mastermyne making acquisitions like this showed there was a future for industry. "Mastermyne is the shining light of the mining services industry."