Leading mining equipment manufacturer Sandvik is acquiring mine planning software developer Deswik, a private company based in Australia. Deswik will be a key part of Sandvik Mining and Rock Solutions’ newly launched Digital Mining Technologies division.
Sandvik says Deswik, a top-tier supplier of integrated software platforms that support digitalization throughout mine planning stages, will fill a value chain gap in its mining offering. The acquisition is expected to increase upstream mining coverage and enable opportunities for end-to-end optimization solutions, such as incorporating electrification at the mine planning stage.
Deswik’s core software suite includes computer-aided 3-D mine design, scheduling, operations planning, mining data management and geological mapping. The company also offers a range of consultancy services, including mine planning, scoping, software implementation and training support. It has a wide array of clients, including Rio Tinto, BHP and Agnico Eagle Mines, and has more than 10,000 current licences.
"Deswik's second-to-none software suite combined with Sandvik's digital and automation offering creates a clear world leader in digital solutions for the mining industry,” said Henrik Ager, president of Sandvik Mining and Rock Solutions, in a release. “Combining Deswik's skills in mine planning and scheduling with our equipment and automation expertise will open new opportunities for optimizing our customers' mining value chain."
The acquisition complements Sandvik’s purchase of Newtrax, a supplier of digital solutions to monitor people, equipment and the environment in underground mines in 2019.
Deswik will form one of three cornerstones in the Digital Mining Technologies division, established to accelerate the execution of Sandvik’s strategic priority to lead the industry development of underground sustainability and productivity solutions in electrification, automation, digitalization and end-to-end optimization. The new division also includes Sandvik’s automation solutions and the Newtrax telemetry and collision avoidance solutions.
Deswik was established in 2008 and operates in 10 countries with 300 employees. Sandvik says the Brisbane-based company has demonstrated strong and profitable growth over the past decade in the large and growing mining software market. Deswik's revenue as of October 2021, on a rolling 12-month basis, totalled A$79 million ($71.9 million).
Stockholm-based Sandvik is paying SEK50 million ($7.1 million) for the acquisition, which is expected to close in the first quarter of 2022.