Photo by: Bloomberg
After initially announcing the planned transaction in December last year, Buildmax said on Friday that the Department of Mineral Resources (DMR) had approved the acquisition of Vaal Quarry’s mining right and certain plant and equipment by Buildmax subsidiary Letamo Quarry for R20.6-million.
Operations at the Gauteng-based quarry had now restarted on the back of strong aggregate demand for the construction of road infrastructure in the vicinity.
Buildmax believed the acquisition represented a well-priced opportunity for subsidiary Buildmax Aggregates & Quarrying (BAQ) to grow its current geographic footprint in the “buoyant market” surrounding the quarry.
“It will also provide BAQ with access to high-grade gravel and aggregate reserves and resources which are well situated to access new contracts and markets,” the group explained.
The acquisition was expected to increase BAQ’s yearly output by 29 000 t/m.