FLSmidth acquires thyssenkrupp’s mining business, tk Mining, for $386 million. Above, a TK Mining spreader. (Photo: FLSmidth)

FLSmidth reported it will purchase thyssenkrupp’s mining business, tk Mining, for roughly $386 million.

The development will create a leading global mining technology provider with operations from pit to plant, FLSmidth said.

“This is a truly transformational deal allowing us to accelerate our growth ambitions in mining by creating a stronger talent pool and one of the world’s largest and strongest suppliers to the mining industry,” FLSmidth CEO Thomas Schulz said. “Our complementary customer base and improved geographic coverage will offer a strong value proposition to our customers.”

TK Mining has an asset-light business model, operates in 24 countries, and has 3,400 employees. TK Mining said FLSmidth is an excellent owner and a good new home. “The merged new company will be able to drive innovation and digitalization even faster and will increasingly focus on sustainability and ways to reduce environmental footprint,” thyssenkrupp AG CEO Martina Merz said.

The acquisition is expected to closein the second half of 2022.

Multinational conglomerate thyssenkrupp has been downsizing since steel prices in Europe tanked roughly a half-decade ago. Subsequently, it has laid off thousands of employees, and it sold its flagship elevator business in H2 2020.

Separately, FLSmidth reported it was contracted for product engineering for the first phase of ioneer’s Rhyolite Ridge lithium-boron project. Leadership at the operation said it selected FLSmidth out of a need for a low environmental footprint.

“FLSmidth’s MissionZero strategy is focused on environmentally sound mining engineering and technology solutions,” said Bernard Rowe, managing director, ioneer. “This aligns with ioneer’s ambition to not only produce materials necessary for electric vehicles and renewable energy, but to extract them in an efficient environmentally responsible manner through lowered emissions, significantly reduced water usage, and a small surface footprint.”

FLSmidth also won a contract from Keliber for process engineering services at the Päiväneva concentrator plant. Keliber said the goal is a “world-class plant” to produce lithium and “that uses the best available technology, which means safe, environmentally friendly and cost-optimized production.”

The lithium contracts speak to FLSmidth’s experience, expertise and technologies for processing lithium, the company said. “It is a strong proof-point of our know-how in the lithium arena, where we have been active for a quarter of a century,” said Mikko Keto, president, mining, FLSmidth. “It is also important to note that our localized approach and strength in service and aftermarket have played a role in being chosen as the partner for ioneer and Keliber.”