Dunedin-based industrial automation firm Scott Technology has taken a stake in a Western Australian developer of a patented conveyor belt technology for use in the mining, bulk handling and automated processes markets.
For an initial commitment of less than A$500,000 ($631,000), the company has purchased assets belonging to Integrated Conveyor Systems ahead of a due diligence process that will take until next June.
"ICSL's conveyor technology is a logical extension for Scott with our progress in the mining automation market, where the technology is aimed at improving speed, occupational safety and health and labour costs, particularly in remote areas or over difficult terrain," said chief executive Chris Hopkins and chairman Stuart McLauchlan in a statement to the NZX.
Its application for the mining sector is still in the development phase and has attracted inspection by Bathurst Resources, which is planning a conveyor system to bring coal off the Denniston Plateau for export from Westport, said Hopkins.
Scott shares were up 2.9 per cent yesterday to $1.80, and have risen 24 per cent in the last year.