Joy Global, a leader in high-productivity mining solutions, has closed on its purchase of certain assets of Mining Technologies International (MTI) on May 30, 2014 for Can$51 million, subject to a working capital adjustment.
MTI is a Canadian manufacturer of underground hard rock mining equipment serving the North American markets and a world leading supplier of raise bore drilling consumables. Joy has acquired substantially all of the assets associated with MTI’s hard rock drilling, loaders, dump trucks, shaft sinking and raise bore product lines.
“We are pleased that the acquisition of MTI has successfully closed as planned. This acquisition furthers our strategy to expand our underground mining product lines into the hard rock markets including nickel, potash, palladium, platinum, gold and copper,” says Joy Global president and chief executive officer Ted Doheny.
Meanwhile, Joy has reported a better-than-expected quarterly profit and says orders for maintenance services rose for the second straight quarter. Demand for equipment maintenance has picked up in 2014 after miners put off servicing for more than a year due to a coal supply glut that led to weak prices.
Joy, which gets about two-thirds of its revenue from coal miners, said service orders rose about 8% in the quarter ended May 2. Maintenance made up about two-thirds of the quarter's orders. The company, which also supplies to miners of copper, iron ore and other minerals, said total orders fell 7% to $1.05 billion from a year earlier, but were up 22% from the previous quarter.
Joy remains cautious in its outlook for the rest of the year. “While improving economic conditions should drive increased demand, commodities remain oversupplied with prices in some cases at multi-year lows that continue to delay capital decisions,” the company said in a statement. www.joyglobal.com