Suppliers Roundup (August 25, 2003)

Knelson to build screens

Langley, B.C.-based Knelson Gravity Solutions will begin building screens for filtering coarse ore from fine ore, under the brand name Knelson-Sizetec. The deal is part of a marketing and manufacturing agreement with Sizetec of Canton, Ohio.

Knelson was looking for a partner to help it build screens and keep the company competitive.

Sizetec designs and manufactures various types of screens, including horizontal, vertical, de-watering, step-deck and cascade units.

Knelson specializes in concentrators, and, since its inception in 1978, has supplied about 2,500 units in more than 70 countries.

Kaiser records Q2 loss

Fabricated aluminum producer Kaiser Aluminum suffered a second-quarter loss of US$61.4 million (or 63 per share), owing to a decrease in shipments and an increase in energy and pension costs.

By comparison, the company incurred a loss of US$50.4 million (63 per share) in the corresponding period of 2002. Revenue between the two periods fell 7.2% to US$358.4 million from US$386.3 million.

The decline in primary aluminum shipments reflects a curtailment in production at the 90%-owned Valco smelter in Ghana.

Asbestos litigation and increasing health-care and pension costs have contributed to Kaiser’s credit woes, and in February 2002 the Houston, Tex.-based company filed for bankruptcy. Kaiser says it expects to emerge from Chapter 11 in 2004.

Firm opens South African office

Fasken Martineau, a law firm with roots in the mining industry, has opened an office in Johannesburg, South Africa.

With the recent adoption of black empowerment legislation, the government estimates South Africa requires US$14 billion in capital to help develop the country and its resources.

“We see Johannesburg as being important on a number of levels,” says Louis Bernier, managing partner with Fasken Martineau.

The office will be staffed by one senior partner from Canada, and Peter Stafford, a native South African, will be the resident partner.

Fasken Martineau also has offices in Montreal, Toronto and Vancouver.

Atlas Copco seals Puska deal

Regulators have approved Atlas Copco’s proposal to buy Puska Pneumatic, a compressor company in northern Spain. The sale price was not disclosed.

Puska, which generated 11 million euros in revenue last year, sells screw and piston compressors, vane compressors, and refrigeration dryers. The Puska brand name will continue to be used, but as part of Atlas Copco’s Industrial Air division.

In 2002, Atlas Copco acquired China-based Liutech, and in the previous year, the Dutch company Grassair.

The Atlas Copco group generated revenue of US$5.9 billion last year.

Major drilling pads coffers

Moncton-based Major Drilling Group has raised $26.25 million by issuing 5 million shares at $5.25 apiece in a private placement.

The company will use the money to pay down debt.

The financing was arranged by a syndicate led by Griffiths McBurney & Partners and which includes Dundee Securities, Research Capital, Salman Partners, Beacon Securities and Orion Securities.