A GROUP of mining veterans are to float their engineering company in London to capitalise on the African resources boom.

MDM Engineering will list on AIM, the lightly regulated junior stock market, tomorrow in a deal expected to value it at £54m.

The company was set up in 2006 when investors bought out the assets of MDM Ferroman, an African engineering group pushed into liquidation by debt.

The company builds processing plants and other equipment for mid-sized mining groups. It has an order book of projects worth about $400m (£205m).

Bill Nairn, a former technical director at Anglo American, will be nonexecutive chairman, and Grant Lowman, formerly of Bateman Engineering, chief executive. Lowman said there was a shortage of experienced engineering staff.

“Medium-tier miners need to bring in engineering expertise, and there is not a lot of it about,” Lowman said. “We are in an absolute sweet spot because of the boom in African mining and the few people with the necessary skills.”

The main reason for the float was to give staff an incentive, he added. “About 90% of our staff already hold options on shares. Having a listing will give them a strong lock-in at the company.”

MDM has been advised by broker Numis Securities.

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