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Hitachi Construction Machinery has made a strategic $10 million investment in Australian environmental intelligence technology company Envirosuite (ASX: EVS), as the Japanese industrial group looks to accelerate the development and adoption of environmental and safety intelligence technology within the mining industry.
Hitachi is paying a premium for a 12 per cent stake in Envirosuite with the purchase price pitched at 5.8c per share – which is 29 per cent above the previous closing price for Envirosuite of 4.5c last Friday. The shares were trading at 5c, up 11 per cent, at 3.06pm (AEST).
Envirosuite says the funds from the sale of shares will be used to advance the company’s EVS Industrial solutions and market penetration in the mining sector, with a specific focus on solutions for customers to drive site productivity improvements and their ESG priorities.
The investment has been coupled with an agreement between the companies to improve environmental and safety intelligence technology within the mining industry, providing customers with leading-edge tools to help achieve their ESG and net zero-related objectives as well as their operational efficiency goals.
The companies say their combined expertise will lead to increased market opportunities, with the goal of driving sustainable practices and operational efficiencies across the sector.
Envirosuite CEO Jason Cooper says the move will allow the company to launch into the top tier of global mining services with Hitachi Construction Machinery and its subsidiaries.
“Together, we expect to set new standards in operational management and environmental responsibility for the mining industry globally which aligns strongly with both companies’ visions for a sustainable world,” he says.
“The $10 million investment and collaboration agreement represents definitive industry validation of our technology at the highest level, and will showcase our ability to help customers achieve their productivity and ESG goals through an innovative site-wide digital solutions approach. This is a significant untapped opportunity in the mining industry."
Envirosuite plans to work with Hitachi and its portfolio of mining equipment, fleet management, autonomous haulage and other advanced digital solutions to deliver comprehensive solutions for tracking and managing carbon emissions across mine sites.
The company says the collaboration is expected to deliver insights into environmental and safety intelligence at an operational and executive management layer not currently available to the mining industry today.
Hitachi Construction Machinery vice president Eiji Fukunishi says the investment in Envirosuite is based on the Australian company’s “decades of experience and commitment to environmental and social responsibility” and aligns with Hitachi’s vision for “ensuring a prosperous land and society for the future, and contributing toward realising a safe and sustainable society”.
“Envirosuite’s culture of honesty, integrity and commitment to customers and the communities we all serve is the foundation of both of our businesses,” Fukunishi says.
“Through this investment, we hope to leverage Envirosuite’s solutions, data scientists’ analytical capabilities, and its findings and know-how in subscription business in order to further refine Hitachi Construction Machinery’s solutions in the mining business."
Following its investment, Hitachi has nominated Eric Winsborrow, its general manager of new business strategy and Wenco executive vice president, as its representative on the Envirosuite board.
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