press release : 5 June 2006VC investment primes Intellection for growth
A minerals technology company serving some of the world’s largest mining companies has received a strong vote of confidence, with two of Australia’s leading venture capital firms supporting a $5 million capital raising. The investment reflects the current buoyancy of the resources industry and the increasing move by miners towards technology to drive future growth and efficiencies.
Brisbane-based Intellection Pty Ltd will use the funds from Technology Venture Partners and Foundation Capital to accelerate sales of its leading QEMSCAN (Quantitative Evaluation of Minerals by Scanning Electron Microscopy) instruments in the resources sector, and tackle new markets in oil and gas, forensics and environmental monitoring. The Intellection management team contributed $500,000 to the raising in a strong show of support for the company’s automated minerals and materials analysis business.
The QEMSCAN system was developed at a cost of $20 million over 20 years by the Commonwealth Scientific and Industrial Research Organisation (CSIRO). Since being spun off as an independent company by CSIRO and introduction of external management in 2003, Intellection has grown strongly with revenue more than doubling year on year to approximately $8 million this year.
Staff numbers have risen to about 50 from 11, less than two years ago and CSIRO remains a substantial shareholder.
Intellection has already developed a strong foothold with mining giants BHP Billiton, Rio Tinto, Phelps Dodge, Falconbridge and has recently expanded its global reach through a collaboration with the world’s leading inspection, verification, testing and certification company, SGS Group.
The QEMSCAN system analyses and determines the structure and composition of minerals, thereby allowing companies to improve yields and recoveries, increase product quality and lower the cost of processing.
Intellection Chief Executive Officer Calvin Treacy said that until recently, the company had targeted only the technology centres of large mining groups. The challenge now is to make the QEMSCAN technology available to remote site based users, such as offshore oil rigs and refineries.
”Our goal is to broaden the market for these products by reducing the cost and complexity of the systems and making them available to operators, not just scientists”, Mr Treacy said, “opening up access to the valuable information gained from a QEMSCAN will enable the promise of process mineralogy to finally be realized”.
Intellection hoped to grow the workforce to 130 within three years by appointing sales, support and other staff in Australia, North America and South Africa.
“This investment is recognition by the Australian investment community of the market potential for automated mineralogy. It speaks volumes for the quality of the CSIRO’s research and development and the great strides Intellection has made in taking it to market,” Mr Treacy said.
For further information:Intellection Pty Ltd
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