Sandvik will supply several technology solutions, including its Digital Driller, to De Beers Group’s Venetia Underground Project. (Photo: Sandvik)

Sandvik signed an agreement to acquire DSI Underground, a supplier of ground support and reinforcement products, systems and solutions. The deal is valued at $1.2 billion and will close by mid-2021 after regulatory approvals.

DSI Underground is in 70 countries. Offerings include bolting systems, injection chemicals and resin capsules.

Sandvik described the development as an important strategic step. “DSI Underground’s track record of driving progress and safety in underground operations and its global reach will further strengthen our world-leading market position within mining and rock solutions,” Sandvik CEO Stefan Widing said.

With 2,000 employees, DSI Underground’s revenue for 2020 was roughly $635 million.

Separately, Sandvik partnered with De Beers Group on technical solutions for the Venetia Underground Project (VUP). The mine has ordered 19 items, including LHDs, trucks, drills and bolters.

For example, VUP will adopt 17-metric ton (mt) LH517i and 21-mt LH621i LHDs, 51-mt TH551i ADTs, DD422i face drills, DS412i roof bolters and DS422i cable bolters.

De Beers Group is investing roughly $2 billion to start mining underground from 2022, extending the mine’s life beyond 2045.

The mine will use sublevel caving. The ore will be hauled by underground and surface trucks. The mine will later transition to an automated truck loop in combination with vertical shafts for steady state production, Sandvik reported.

Sandvik said it plans to support the project for the duration. “The expectation is for a technology partner who will help apply, develop and fine-tune the systems, over a period of time,” Simon Andrews, managing director, Southern Africa, Sandvik, said. “This way, the technology is assured to deliver the safety, efficiency and other positive results that the new mine will demand.”