Industrea has announced more than A$16 million of new contracts across its Advanced Mining Technologies (AMT) and Huddy’s Mining Services (Huddy’s) divisions. AMT has signed a A$2 million contract with BHP Billiton for its Hotazel mine in South Africa for its collision avoidance system, CAS-CAM/RF®. Whilst, Shanxi Asian American Daning Energy Corp (SAADEC) has ordered a further drilling guidance system (DGS) unit for its Daning coal mine in China and Jincheng Anthracite Mining Group has ordered DGS spares totalling A$7.8 million.
The BHP contract, along with existing arrangements with BHP Energy Coal South Africa, strengthens AMT’s CAS-CAM/RF supplies in the region to BHP. AMT, through its South Africa agent, has also signed initial supply contracts for A$0.7 million for the initial supply of CAS-CAM/RF equipment to another new customer in the region.
Industrea Managing Director and CEO, Robin Levison, said the positive growth in the South Africa market with continuing strong sales to BHP Billiton and other new customers taking up AMT products, indicated ongoing demand for the safety technology in the region.
SAADEC’s order, placed with Industrea’s China-based subsidiary Wadam Industries, will help with the company’s directional drilling and methane gas drainage needs. Whilst, in addition to the Jincheng order, further recurring spares revenue for May 2010 was about A$0.7 million bringing May and early June orders for AMT’s DGS systems and spares in China to more than A$10 million.
Levison: “The ongoing strength of sales in the key export market of China, particularly with repeat orders from existing customers, provides confidence in the potential for further growth of sales of AMT technology. SAADEC was the first Chinese user of the AMT technology, and its mine has become a role model for other Chinese mines in successfully removing very high methane gas content from the coal seam.”
“The ongoing use of the technology is indicative of the confidence being placed in the equipment by SAADEC, which we are seeing replicated in the mining industry in a number of other key international markets. The new contracts across China and South Africa are illustrative of strong demand for the Industrea suite of mining safety products.
“These new contract wins have boosted our order book and reflect the value of our R&D processes in terms of producing globally competitive products for the wider mining sector, as well as the potential for further growth across all our business divisions,” Levison said.
In the domestic market, Huddy’s has recently won a new contract with Xstrata subsidiary, Ernest Henry Mining for its tailings storage facility earthworks in Mt Isa for around A$3.4 million.
