Thursday 1st Oct, 2020

RCR’s mining business sold for $10M

Eight Queensland resource projects will now be prohibited from employing a fully fly-fin fly-out (FIFO) workforce, in order to support local jobs.

NRW Holdings will purchase RCR Tomlinson’s mining and heat treatment divisions in the next two weeks for $10 million in cash.

RCR has been forced to sell its subsidiaries, which employ 300 people, after it was placed into voluntary administration in November 2018.

The mining unit includes RCR’s mining technologies business, an original equipment manufacturer with a range of products that includes conveyors, stackers, spreaders, sizers, scrubbers, belt reelers and screening plants.

It is responsible for some of the largest fully-tracked mobile mining machines in the world, including its in-pit crushing and conveying units, which combine several functions in a single mobile platform.

RCR Heat Treatment focuses on services such as metal stress relief, carburising and controlled atmosphere hardening, induction hardening, metal testing, ageing and tempering, and other forms of heat treatment.

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The company operates from its primary facility in Welshpool, Perth, which hosts the largest stress relieving furnace in Australia. It also has laboratories that operate in South Australia and NSW.

NRW’s chief financial officer Andrew Walsh — who was formerly CFO of RCR Tomlinson until November 2013 — called it a “financially compelling acquisition”.

NRW managing director and chief executive officer Jules Pemberton said the company planned to integrate all 300 employees as quickly as possible.

“The annuity style income from the maintenance activities of Mining Technologies and Heat Treatment will provide a platform to continue to build a broader service offering across and expanded resources and oil and gas client base,” Pemberton said.

RCR Tomlinson’s energy division RCR Energy Service was sold earlier this month to The Environmental Group Limited, while RCR O’Donnell Griffin’s rail business was sold to contractor John Holland in December 2018.