Australian engineering company, RCR Tomlinson, is to exit the coal mining services business on the back of pressure from mining companies to reduce pricing.
“The continued pressure of service providers to reduce pricing is unsustainable,” the company said in a statement. “Provision of services is unlikely to return to profitable business in the foreseeable future.”
As a result, RCR is closing twelve unprofitable businesses that re highly exposed to this type of mining services. RCR will take a AUS$35 million non-recurring impact for closing the operations.
The company will instead focus on renewable energy projects, saying it would divert existing resources to “support our aspiration in renewable energy initiatives.”
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/mining/05042016/rcr-to-close-coal-mining-services-businesses-2016-526/