VDM Group wins BHP contracts worth $30m

Struggling mining services and contracting company VDM Group has won two contracts with BHP Billiton worth a total of $30.6 million. While the contracts are important in their own right, they represent a continuation of the company’s recent success in securing work in 2011-12 under a revitalised management team.

The company has also undergone an internal restructure, and it is now a more focused business with more emphasis on higher-margin work. Last week, VDM announced that it had received a formal proposal to acquire its Cape Crushing business, which had been a long-term underperformer. Finalisation of this divestment would be perceived as a positive development for the company.