Wastewater Solutions for Gold Mines in the Outback: De.mem Opens Branch in Kalgoorlie

04.11.2024
While the great gold rush is now a part of Australian history, abandoned and active gold mines can still be found in the Western Australian outback. The largest of these lies near the picturesque town of Kalgoorlie, a typical "outback town" characterized by Victorian architecture.
Wastewater Solutions for Gold Mines in the Outback: De.mem Opens Branch in Kalgoorlie

Image source: De.mem Limited

De.mem, an international provider of decentralized water treatment systems and membrane technology, has now established a branch in Kalgoorlie, a former gold rush town with a population of 30,000. What may sound somewhat like adventure romance offers practical benefits for both De.mem and its customers.

Mining is a key pillar of the Australian economy. Not only does it employ around 300,000 people, but it also contributes about 13 percent of the nation’s GDP. Australia, alongside Russia, ranks second in gold production globally, following China.

Gold mining today bears no resemblance to the romanticized gold rush era. Large open-pit mines are blasted into the landscape, and excavators and dump trucks move rocks out of the pits. Giant drums first crush the rock, which is then processed in specialized facilities where gold is separated from the ore using chemical-physical methods. A significant amount of water is required for these processes. To ensure this contaminated water does not re-enter the environment untreated, Australia now has strict environmental regulations that mining companies must adhere to.

Water is considered “blue gold” worldwide, and in Kalgoorlie, it is especially precious as it travels via pipeline from Perth, 600 km away, due to the Outback's low rainfall. This makes water an even more critical resource for mining companies, which now invest in complex filtration systems. De.mem provides these systems, counting international mining giants like Rio Tinto, Chivaudan, and South 32 (a BHP Group subsidiary) among its clients.

These clients benefit from De.mem's innovative membrane technology. “Access to modern membrane technology offers advantages, such as a more cost-effective solution for the customer or a higher-quality product, like the ability to recycle treated water,” explains De.mem’s CEO, Andreas Kröll.

In addition to this, De.mem provides a full range of services that smaller providers cannot. In a highly fragmented market, large corporations often have to work with multiple small providers, each specialized in certain products (such as equipment, services, chemicals, or pumps) or able to operate only regionally. Kröll explains that it is far more beneficial for these corporations to get everything from a single source. As a "one-stop-shop" with six locations across Australia, De.mem offers a much broader range of services than most competitors, along with a reliable service network. In vast Australia, it is also advantageous if service staff can be on-site within hours.

Furthermore, De.mem offers financing solutions, such as build-own-operate contracts, where De.mem builds and operates the facilities for clients. “Most smaller firms can’t provide this,” says Kröll.

With Auswater and Capic Engaged in the Mining Industry
With the acquisition of Auswater Systems this year, De.mem has significantly expanded its mining customer base. Auswater, based in Perth, Western Australia, provides specialized services primarily to more than 50 established mining clients across the region. As a profitable service company with nearly 30 years of history, Auswater operates water and wastewater treatment plants for industrial clients and supplies chemicals and consumables for ongoing operations.

The acquisition not only generates high margins but also enables De.mem to expand further in Western Australia, a crucial region. Additionally, the Auswater acquisition creates further revenue opportunities through cross-selling and cost synergies. Operational synergies are expected mainly with De.mem subsidiary Capic, which has been serving mining clients since 2006, particularly in the production and supply of specialty chemicals. There is minimal customer overlap, and the combined De.mem Capic-Auswater business now holds a leading position in the highly strategic mining region of Western Australia, serving mining and resource sector clients with technical services, specialty chemicals, and consumables, Kröll adds.

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