Diversification Mode

Master Drilling aiming to extend geographical, technological diversification

- Mia Breytenbach

 

Raiseboring and drilling solutions provider Master Drilling continues to extend its service provision capa­city and technology reach, with the company focusing on diversifying into new markets and industries and advancing technologically.

“Diversification across geographies, com­modities, currencies and industries remains a key part of Master Drilling’s long­term strategy,” CEO Danie Pretorius said dur­ ing the group’s interim results presentation in Johannesburg last week, noting that the group was experiencing strong demand, with increased enquiries across various regions and commodities.

While the group is investigating several opportunities in Australia, Canada and the US and envisaging additional growth from these countries, as well as from Africa and Scandinavia, it is also considering market potential in South America.

As the group aims to grow business not only in underground mining, but also in open pit mining, which accounts for the bulk of min­ ing, Master Drilling aims to acquire a Chilean drilling business. Pretorius believes that, given the group’s exposure and raiseboring experi­ence, it could add value to such a company.

Further, the group would ideally like to extend its revenue growth through expanding into the civils and construction sector. “We would ultimately like to see this sector com­ prising 30% of our total portfolio,” he said.

While Pretorius noted that Master Drilling would target specific niches in this sector, with sewage work and water tunnelling as poten­tial options, he cautioned that, as the group had limited knowledge in this space, it would take “baby steps”.