Aveng mulls ownership changes for Tshipi contractor
International mining company Aveng plans to explore “alternative ownership options” for its South African-based Moolmans business, which is a key contractor for the Tshipi é Ntle manganese mine.
Aveng said an internal review found that its two operating businesses (McConnell Dowell and Moolmans) were distinctly different and would likely perform better as separate entities.
Under its demerger plan, Aveng would keep the Moolmans business for now but would pursue other ownership options including the introduction of broad-based black economic empowerment capital. It has hired financial services firm Macquarie Capital as an advisor.
For McConnell Dowell, which is an engineering-led construction and building contractor, it will look to spin it off as an independent entity with potential listings on the Australian Securities Exchange and Johannesburg Stock Exchange.
Moolmans currently has a long-term contract at Tshipi, providing a full mining service that includes equipment, loading and hauling of ore and waste, as well as drilling and blasting. On its website, the company said it mines up to 20 mt of material each month as one of the largest open cut mining contractors in Africa.
Moolmans’ revenue rose 14% on the year to AU$269m ($181m) for the year ended 30 June 2024, while operating earnings totalled AU$2.0m ($1m), compared to a AU$9.6m ($6.5m) loss a year ago. “Operating margins remain under pressure, despite delivering improved volumes on the Tshipi contract,” it said.
Tshipi, which is 49.9% owned by Jupiter Mines and the rest by Ntsimbeintle Mining, produced a total of 3.47 mt of manganese ore in year ending 30 June 2024.