FLSmidth will realign the global group from July, with focus on the mining and cement industries.

The organisation announced last week it would focus on the two industries, supported by a regional setup that would aim to strengthen customer focus and lifecycle solutions, combined with a new central digital organisation.

FLSmidth’s plan will realign the organisation from four divisions into the two aforementioned industries. From a country perspective, it will deliver an agile regional structure, according to FLSmidth.

With end markets recovering, group chief executive Thomas Schulz said FLSmidth’s customers were accelerating to invest in productivity enhancing and digital solutions.

“To support our customers’ growth, the two industries, cement and mining, will deliver integrated productivity offerings through the regions,” Schulz said.

“Our decentralised organisation will give us a strong point of entry to offer our customers key products, shorter delivery times and a strong service setup.”

The two industries will be supported by seven regions: Australia, North America, South America, Europe, Russia and North Africa, Sub-Saharan Africa and Middle East, Asia, and Subcontinental India.

According to FLSmidth, the regions will drive customer relations, sales and service for both industries. A central digital organisation will drive an enhanced, unified approach to digitalisation.

Schulz said this new way of working was a natural step forward for FLSmidth.

“We already have one of the strongest brands in the cement and mining industries. By enhancing our service level, investing in digitalisation and bringing stronger life-cycle offerings to the market, we will expand and grow our wallet share with targeted customers,” Schulz said.

Weir has entered into an agreement to purchase US ground engaging tools (GET) specialist ESCO for $US1.28 billion ($1.67 billion).

The transaction has been approved by Weir’s board of directors and is not subject to shareholder approval.

As part of the acquisition, Weir will gain access to ESCO’s 10 manufacturing facilities, six foundries and 22 service and supply centres, in 19 countries.

Weir hopes it can leverage ESCO strong position in the GET sector to prioritise upstream growth opportunities in the minerals and oil and gas sectors; around 40 per cent of large primary mover machines across the globe utilise ESCO product.

ESCO chairman and chief executive officer Cal Collins called the merger exciting, stating: “[It] combined two premium brands and positions us to better serve our customers around the world. The merger of ESCO into Weir is also a great fit, both culturally and strategically.”

GET parts include the likes of teeth (usually for shovels and drag lines), blades, shrouds, locking systems and other edge wear parts. ESCO brands include the Nemisys lip system and Ultralok mining tooth system, which Weir intends to bring to new territories via its extensive global network.

Weir Group chief executive officer Jon Stanton called ESCO a “leading global brand” that would allow Weir to pursue new revenue opportunities.

“Together, Weir Minerals and ESCO will create a unique customer proposition as the premium provider of mission critical surface mining solutions from extraction to concentration, built on proprietary technology superior wear life and supported by an unrivalled service network.”

Rail operator Aurizon has received a newly-built batch of coal wagons at the Port of Newcastle in New South Wales.

Aurizon has described the development as a clear symbol of the continuing growth in coal exports and Hunter Valley’s coal industry employment.

Catherine Baxter, Aurizon’s general manager in NSW, said the 32 wagons in the consignment were only one part of a 284-wagon order, with each wagon having capacity to carry up to 97.8t of coal.

“These wagons will enter service for our newest customers, AGL Macquarie and MACH Energy, demonstrating the strong growth we have seen in our New South Wales Coal haulage operations since we started in 2005,” Baxter said.

“Our coal haulage has increased from 180,000t in 2005 to 48Mt in 2017, underlining the broader opportunities in the coal sector for regional employment and income generated in, and for the local community.”

The Minerals Council of NSW revealed last month that stronger coal prices have added more than 1000 mining jobs in the Hunter Valley over the past year.

“When we started out in the Hunter Valley, we had less than 10 employees and we now proudly employ more than 450 people across our operations,” Baxter said.

Australian coal exports have also continued to grow in value, with 2017 exports valued at $56.5 billion or 35 per cent higher than in 2016, according to Department of Trade and Foreign Affairs’ data.

Mineral Resources (MinRes) has secured a deal to acquire iron ore company Atlas Iron through a scheme of arrangement that values the target at around $280 million.

The amalgamation of MinRes’ Pilbara iron ore assets with those owned by Atlas would deliver greater synergies and economies of scale, a MinRes announcement explained.

MinRes stated that a combined entity would drive down operating costs to ensure the consolidated iron ore business would be sustainable in the new environment of lower global prices for low-grade iron ore.

Under the proposal, Atlas shareholders will receive one new MinRes share for every 571 shares they hold. Based on the closing prices of both companies on April 4, this is a 59 per cent premium on Atlas’ value.

Atlas’ board has unanimously recommended that its shareholders vote in favour of the agreement and intends to back the deal in the absence of a superior proposal.

MinRes managing director Chris Ellison said the acquisition of Atlas, which would include a portfolio of iron ore assets and export capacity allocation at Utah Point, was on strategy for the company.

“The culture that has been developed within Atlas is an exceptionally good fit with that which has been fostered in MinRes,” Ellison said.

“The majority of the Atlas senior leadership team have been running the business for many years and their skillset, experience and intimate knowledge of the Atlas business will be an extremely valuable asset within the consolidated Atlas-MinRes business.”

Atlas’ key assets include the Abydos and Mt Webber mines in the Pilbara region. The company also owns the Corunna Downs project, which it approved for development last year until a fall in iron ore prices.

Cliff Lawrenson, Atlas managing director, said the combination with MinRes would not only protect, but also enhance the company’s business.

“The combined organisation will have the scale and financial security to support current operations, as well as providing access to capital to contemplate further development opportunities,” Lawrenson said.

“The scrip nature of the scheme also delivers a number of key benefits to Atlas shareholders, including; retained exposure to Atlas, the opportunity to benefit from potential synergies driven by the combination and greater diversification of revenue and commodity exposure.”

MinRes expects the acquisition will be completed by August this year.

In addition to the deal, MinRes and Atlas have created an alliance after they identified a range of opportunities they could progress together.

The companies will pursue several existing and potential future commodity opportunities. They will create a new vehicle, to be controlled by Atlas, that will be responsible for managing lithium and manganese operations.

MinRes will provide the initial working capital for these operations, before Atlas funds the initiative moving forward.

Gascoyne Resources is two months away from producing first gold at the Dalgaranga gold project in Western Australia.

The company today reported that process plant construction is 90 per cent complete and it is on schedule for wet ore commissioning and first gold in May.

Installation of the SAG mill, crusher and mechanical equipment are “well advanced”, according to Gascoyne, while electrical installation is under way and water services have been commissioned and handed over to the operations team.

“GR Engineering has progressed significantly with the design, engineering and construction of the 2.5 million tonne per annum Dalgaranga processing plant,” The company said in an ASX announcement.

“Design and engineering is complete and construction over 90 per cent complete with completion expected in around two months, approximately one month ahead of schedule.”

Dalgaranga’s mining contractor, NRW Holdings, has launched mining at the Sly Fox, Golden Wings and Gilbey deposits, with a fleet of four excavators and 18 trucks mobilised to site.

Construction of the mining workshops and associated facilities is continuing and expected to be operational by the end of this month.

With the transfer of assets in South Africa now completed, the previously announced acquisition of the Sandvik Mining Systems projects business has been finalised. The acquisition includes continuous surface mining and minerals handling technologies and competences that strengthen the company’s core minerals business.

By integrating the mining systems projects business into its offerings, FLSmidth closes the gap and covers a wider range of the full mining value chain from the primary crushing point in the mine and the transport from pit to plant all the way through the minerals processing plant to the tailings handling.

“With the completion of the South African assets we have added references, local expertise and improved ability to deliver complete solutions to our Sub-Saharan customers. We welcome our new colleagues and customers to FLSmidth,” said Manfred Schaffer, Group Executive Vice President, Minerals Division.

As part of the transfer, FLSmidth will either assume existing orders or provide project management services on behalf of Sandvik on selected ongoing projects and supply parts and services for the installed equipment.