Datamine and CAE join forces!

CAE Acquires The Datamine Group

On April 19th 2010, CAE and Datamine announced the acquisition by CAE of The Datamine Group, a leading supplier of mining optimization software tools and services, to further its entry into the mining sector.

This acquisition is part of CAE’s long-term strategy to leverage its modelling, simulation and training capabilities in new markets that have the same imperative to reduce risks and enhance operational efficiency as the civil aviation and defence sectors, where CAE is a world leader. This acquisition follows CAE’s announcement last June to invest, with the participation of the Quebec government, up to C$274 million in research and development, over seven years, in three new growth areas: healthcare, mining and energy. CAE is already providing professional services to the mining industry as well as expertise in human factors, modelling and simulation, and process optimization.

With 29 years of experience in the mining industry, Datamine has an extensive product and consulting portfolio ranging from exploration data management and geological (orebody) modelling to mine planning and mine operations management. Datamine is the recognized leader in multi-parametric orebody modelling in open pit optimization where its solutions map not only mineral grade and geological structure but also geotechnical and geometallurgical parameters in order to determine the optimal strategic mine plan.

Datamine has customers in over 70 countries across the globe including all of the major mining houses. The company has its research and development centre in the United Kingdom and a workforce of 110 employees in nine sales and support offices in Australia, Canada, Brazil, Chile, Peru, India, South Africa, the United Kingdom and the United States.

“We welcome Datamine’s employees to the CAE team. By combining Datamine’s expertise and credibility in mining with CAE’s 60-year experience in modelling, simulation and training, we will develop the industry’s most compelling technology and services to increase safety and efficiency of mine operations. We will introduce simulation-based mine planning, scheduling and training in an industry where safety is paramount and costs of training are very high,” said Nick Leontidis, CAE’s Executive Vice President, Strategy and Business Development. “As with our healthcare and energy initiatives, these are early days but we are convinced that we can develop a meaningful position in these areas over the long term.”

 “I am pleased that Datamine is now a part of a world leader in modelling, simulation and training solutions,” said Nick Beaton, Chief Executive Officer of Datamine. “We immediately recognized CAE’s strengths for large dataset management, scenario simulation and operator training. Mine planners need simulation to validate production schedules, and then, just like in aviation, the operators need to be trained extensively to follow the plan while using the equipment safely and efficiently. CAE’s capabilities will expose equipment operators to a virtual mine environment in order to gain both competence and confidence while reducing the cost of training on real equipment.”

CAE is a world leader in providing simulation and modelling technologies and integrated training solutions for the civil aviation industry and defence forces around the globe. With annual revenues exceeding C$1.6 billion, CAE employs more than 7,000 people at more than 90 sites and training locations in more than 20 countries. We have the largest installed base of civil and military full-flight simulators and training devices. Through our global network of 29 civil aviation and military training centres, we train more than 75,000 crewmembers yearly. We also offer modelling and simulation software to various market segments and, through CAE’s professional services division, we assist customers with a wide range of simulation-based needs.

Find out more about Datamine's parent company at www.cae.com

Transaction Background
Datamine’s business is about bringing world class technology to the mining industry for exploration, orebody modeling, mine planning and mine operations – the focus will stay the same but the delivery will be even better as CAE and Datamine bring their capabilities together.

CAE is a global technology company with core skills in simulation, modeling, visualization and, the manipulation of large datasets.  The company is best known for its market leadership in building flight simulators and operating flight training centers for the civil aviation and defence industries.  CAE also has a very wide engagement in maintenance training, military scenario management and other simulation-based services.
All Datamine companies are wholly owned by Datamine Corporate Ltd in the UK which (until the acquisition) was privately owned by the founder and the senior managers.  CAE acquired all of the shares in Datamine Corporate and is therefore now the sole owner of The Datamine Group.

Aviation Training and Mining? What’s the link?
Aviation and mining seem very different so it’s reasonable to ask “What’s the link?”

CAE’s strategy is to leverage its core technology and investment ability to diversify into industries that use (or could benefit from using) high powered simulation of virtual equipment operating in modeled environments.  The mining industry fits that profile completely and CAE will be bringing that technology to Datamine’s solution footprint. 

It will lead to huge improvements in drilling data capture, orebody modeling techniques and the integration of long, medium and short term planning.

There are other similarities between the two industries.  Both are capital intensive, utilize expensive equipment that requires highly trained operators - and both emphasize safety above all else.  CAE has expertise in bringing highly integrated solutions for scenario simulation and operator training to these environments, and now it will bring these capabilities to the mining industry through the acquisition of Datamine.

Why did CAE target Datamine?

CAE wanted its first acquisition in mining to be a company that is financially strong, has a comprehensive product set, services the industry across the globe, projects a strong vision of the future and has excellent relationships with its customers.

What will Change for Customers?

Only good things! 

CAE will invest in Datamine to make it the foundation of a larger, stronger mining technology business.  It plans to acquire other businesses in the mining sector that add to this vision; it will bring game-changing technology to the industry that will completely integrate orebody modeling, mine planning, field operations, operator training and scenario based planning in a way the industry has not seen before.

Datamine is not going to change focus away from its core products and skills – with CAE it is going to invest to make these even better.

We are excited about the opportunities and the challenges ahead, but we know that all of our success depends on serving our valued customers.

 

If you require any further information please contact your local Datamine representative.