Chief executive Chris Hopkins said Scott Technology had entered into an agreement with Perth-based Integrated Conveyor Systems Ltd to acquire its assets and intellectual property rights, and run the company, until due diligence was completed by June next year.
A commitment of about $A500,000 ($NZ630,000) had been made so far, backed by assets to minimise Scott Technology's risks, and an undisclosed purchase balance would be made after June.
Mr Hopkins said the enclosed conveyor system was used for stockpiling and loading ore, but could be used for food, fertiliser or chemicals and was a niche-market product, given it was designed to go over difficult terrain.
Scott Technology, which in Christchurch manufactures assembly lines for the global market and is developing meat robotics and mining technology in Dunedin, has increasingly looked to and developed its product for the mining sector through acquisition.
Craigs Investment Partners broker Peter McIntyre said Scott Technology was "making more inroads into the mining sector, and while niche-market, this will again add to its revenue line".
Scott Technology has in recent years purchased Rocklabs for $10 million, a mining-testing reference materials company for $1.5 million, gone into a joint venture making a centrifugal machine, taken a 51% stake in a Wellington-based superconductivity company, bought 75% of a Chinese motor and lathe company and has been looking at a dairy automation project.
Mr Hopkins noted present work for the company included an unnamed major mining business using and trialling the conveyor for a technically advanced project.
