Caterpillar Holdings Australia has confirmed the acquisition of Australia-based Minetec from Codan.
The companies have worked together in a collaborative agreement since 2018 to address challenges in hard rock mining operations. Codan said it agreed to sell Minetec for approximately US$14 million (inclusive of working capital) and a volume-based earn out over the next five years.
Minetec, which specialises in high-precision tracking and data communications networks as well as software applications that address safety and productivity, will be part of Cat’s ongoing focus on providing safety, autonomy and productivity solutions to the industry, the OEM said.
Additionally, the takeover underscores its commitment to the growth of the Cat MineStar Solutions suite, officials said.
Under the agreement’s terms, Codan will provide manufacturing services to Caterpillar for up to five years so that both can ensure a continuous supply to customers.
“The acquisition will further drive integration of Minetec’s world-class underground products and capabilities, such as task management, high-precision tracking, wireless communications and proximity detection into MineStar. As miners move to automate underground mines, this will further enhance MineStar’s ability to provide the equivalent of GPS underground and improve safety and productivity,” said Jim Hawkins, general manager of Cat MineStar Solutions.