Civil and mining contractor NRW Holdings has announced plans to buy the east coast operations of failed mining services company Hughes Drilling, with the acquisition price undisclosed.
NRW said it had put forward a proposal to Hughes’ administrator, McGrathNicol, to acquire the Brisbane-based company’s coal production and drilling operations on the east coast, including a number of existing contracts with mine operators and owners.
“The proposal is part of a larger proposed deed of company arrangement for certain entities of Hughes,” NRW said in a statement.
Hughes is the parent company of Perth-based mining services business JSW Australia.
NRW plans to incorporate the Hughes operations into its existing Action Drill and Blast division.
NRW managing director Jules Pemberton said the deal would grow the company’s geographical service offering.
“This proposed acquisition aligns with NRW’s strategy to build on its existing drill and blast service offering in Queensland and presents a clear path for earnings growth,” he said.
In the 2016 financial year, Hughes’ east coast operations brought in unaudited revenue of $40 million.
NRW shares were 1.8 per cent higher to 55 cents each at the close of trade.