JSE-listed mining services company Scharrig Mining, which acquired Africa’s largest exploration drilling operation, Geosearch, as well as Transbor, said that these companies were trading strongly and that the demand for exploration drilling continued to be “exceptionally” strong.

The company also recently acquired Benicon, following the unconditional approval from the Competition Commission.

In its financial results for the year ended March 31, Scharring Mining said that the demand for drilling and blasting services continued to be strong and that it would invest around R42-million in drilling equipment in the first quarter of the 2007 financial year.

It had already recruited the appropriate personnel to operate and manage the drill and blast operations and said that it expected these operations to contribute to next year’s profits.

During the 2005/6 financial year, Scharring Mining increased its revenue by 9% year-on-year to R616,-million and improved operating efficiencies also led to an increased operating profit margin of 24,6%, compared to 20,4%, in 2005. The company also increased its headline earnings per share by 49%, to 69,3 cents.

Scharring Mining also invested R282-million in capital equipment, of which R96-million was for replacement equipment. In March, a package of 12 new articulated dump trucks, four dozers and one excavator became available and the company acquired the package for R60-million.

“The continued worldwide demand for mineral resources will continue to limit the number of plant items that are available on the open market. Schamin believes that by expanding its fleet it will continue to be well positioned to meet the expected increased demand for its services,” it said.