Buildmax: Vaal Quarry’s rights acquired by SPV

Vaal Quarry’s aggregate and gravel mining rights and certain plants and equipment have been acquired for R20.66 million by a special purpose vehicle (SPV) majority-owned by listed opencast mining contractor and building materials supplier Buildmax. Buildmax Aggregates and Quarries, a subsidiary of Buildmax, has a 74 percent interest in Main Street 1178, a recently established SPV to be renamed Buildmax Vaal Quarry, with the rest held by Buildmax executive director Jackie Mathebula through Harmoserve. Explaining the rationale for the deal, Buildmax said yesterday that its board believed it represented a well-priced chance for Buildmax Aggregates and Quarries to grow its footprint in the buoyant market in Vaal Quarry’s immediate surroundings. It said the deal also gave Buildmax Aggregates and Quarries access to high-grade gravel and aggregate reserves and resources that were well situated to access new contracts and markets. The deal is subject to various approvals, including the mineral resources minister’s consent to the transfer of the mining right. Buildmax rose 3.33 percent to R2.79 yesterday.