Orica expands with buy of digital orebody Intelligence business

Explosives and mining technology company Orica is to expand its interests in orebody intelligence with the purchase of underground geospatial systems manufacturer Axis Mining Technology for $260 million in cash.

With Orica already a leader in digital explosives technologies at minesites, the addition of Axis orebody characterisation capabilities strengthens the company’s digital solutions vertically.

Orica CEO Sanjeev Gandhi said: “Axis’ differentiated geospatial tools and instruments, combined with our existing suite of digital solutions will provide compelling orebody intelligence to customers and support the delivery of the industry’s first end-to-end solutions platform, from mine to mill.

“The integration of Axis’ technology and expertise will accelerate our ability to support our customer’s digital transformation efforts around the world, helping them to operate more efficiently, sustainably and safely.”

Axis Champ Navigator (pictured) is a multifunctional North Seeking solid state gyro system that allows users to both align a drill rig and survey the drill hole at the one time.

Orica has also agreed to a deferred payment up to a maximum $90 million to Axis’ pwners depending on profit milestones being achieved.

The company also announced a fully underwritten $650 million institutional share placement, and a share purchase plan to eligible shareholders in Australia and New Zealand up to an aggregate cap of $75 million.

“The balance of funds raised under the Equity Raising will be used to fund incremental trade working capital requirements in the medium-term arising as a result of global supply chain dislocations.

“Funding will also provide Orica with balance sheet capacity to respond to changes in the external operating environment, as current market conditions necessitate a more disciplined approach to capital management.”

Picture: Axis Mining Technology/Axis in-drill hole instrumentation align a drill rig and survey the drill hole

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