K2fly pleased with Decipher for Mining acquisition progress as new contract signed with Evolution Mining

K2fly Ltd (ASX:K2F) is pleased with the progress made since the acquisition of Decipher for Mining was announced in January 2021 from CSBP Ltd and Wesfarmers Chemicals, Energy & Fertilisers Ltd (WesCEF) for 3.7 million shares as well as performance shares.

The sale has seen Wesfarmers Ltd (ASX:WES) (OTCMKTS:WFAFF) (FRA:WF3), through its subsidiaries CSBP and WesCEF, become K2fly’s largest shareholder with a 10.13% stake in the company, with the ability to raise this to 14.22%.

Decipher brings additional depth to K2fly’s growing solution suite in tailings and rehabilitation and extends K2fly’s technical assurance and governance footprint inside existing global customers.

Decipher solutions pipeline

The pipeline for Decipher from K2fly solutions is growing rapidly because of pressure from investors and other stakeholders in the mining industry.

K2fly’s pipeline for Decipher includes:

• Global Industry Standard on Tailings Management (GITS or the Standard) formal endorsement by the co-convenors of the Global Tailings Review: International Council on Mining and Metals (ICMM), UN Environment Program (UNEP) and the Principles for Responsible Investment (PRI);
• In December 2020, the Church of England Pensions’ Board and the Council on Ethics of the Swedish National Pension Funds wrote to over 350 mining companies on behalf of investors with $21 trillion in assets under management (AUM), asking them to confirm their support for the Standard and to set out a timeline for their intended compliance with it; and
• When ICMM launched GITS alongside the UNEP and PRI, all ICMM member companies (28) committed that all tailings facilities with ‘extreme’ or ‘very high’ potential consequences will be in conformance with the Standard by August 2023, and all other facilities by August 2025. On May 6, 2021, ICMM will be launching its Conformance Protocols for GITS.

Live at SAEC

In February 2021 Decipher went live at South African Energy Coal (SAEC) for its tailings monitoring solution and resulted in a total contract value (TCV) of more than A$70,000.

SAEC includes four coal mining operations as well as three processing plants, producing energy coal for the domestic and export market.

On April 30, 2018, SAEC became a standalone business to be managed separately from the rest of the South32 Group – this project continues to deliver to expectations.

Contract with Evolution Mining

K2fly signed a new contract with Evolution Mining Ltd (ASX:EVN) for its inaugural implementation of a tailings’ solution at Lake Cowal in New South Wales.

The contract term will be three years with a TCV over A$250,000.

Evolution is a gold company engaged in operating, identifying and developing gold-related mining projects in Australia and Canada. It operates five wholly-owned mines - Cowal in NSW, Mt Carlton, Mt Rawdon and Cracow in Queensland and Mungari in Western Australia.

In addition, Evolution holds an economic interest in the Ernest Henry copper-gold mine in Queensland.

The Cowal gold operation is an open-pit facility located 350 kilometres west of Sydney.

K2fly has also received a Purchase Order from BHP- Hunter Valley Energy Coal for an initial proof of concept for the Decipher Rehab solution.

Story by ProactiveInvestors