GE to establish mining business arm

23 September 2012 (Last Updated September 23rd, 2012 18:30)

General Electric Company (GE) has said it will acquire more mining services companies and mining equipment to create a new business unit called GE Mining.

GE campus

General Electric Company (GE) has said it will acquire more mining services companies and mining equipment to create a new business unit called GE Mining.

The unit is expected to raise $5bn in sales within five years and employ a similar mergers and acquisitions strategy to the one used for doubling its oil and gas revenues over the last four years, reports Bloomberg.

GE Mining CEO Geoff Knox told the news agency that he expects rising demand for commodities, from copper to coal.

"It is a good a time to be looking at acquisitions in a value sense. We have to be targeted in buying into spaces that leverage what we already do."

"We want to use our current knowledge and add it to the product line we're acquiring and make it smarter and more appealing," added Knox.

GE Mining, set to be launched today at the MINExpo exhibition in Las Vegas, will be based in Brisbane, Australia.

The firm also has plans to take over underground-mining equipment producer Fairchild International on undisclosed terms.


Image: GE Mining is expected to raise $5bn over five years. Photo: General Electric Company.