Industrea’s China-based subsidiary, Wadam Industries, has signed a contract with Shanxi Coking Coal Group International for the supply of four methane gas drainage and directional drilling systems incorporating Industrea subsidiary, Advanced Mining Technologies’ market leading drill guidance tool. Worth A$10.3 million over two separate shipments, the units will be supplied to Xishan Coal Electricity mine in Taiyuan, Shanxi Province. Wadam Industries has also entered into contracts for one methane gas drainage and directional drilling system being supplied to Shanxi Yangcheng Fu Yan for A$3.1 million and for two Industrea Mining Equipment (IME) 40 t roof support carriers to Shandong Guangyu Energy Co for A$2.7million.
Longstanding Wadam customer, Jincheng Anthracite Mining Group has also signed contracts for the purchase of a further three methane gas drainage and directional drilling systems for A$6.1 million. Industrea Managing Director and CEO, Robin Levison, said these latest contracts across the end of the financial year and for the start of FY11 assisted in maintaining the momentum of A$10 million for every month of sales into China. Altogether Industrea has gained a further A$22.2 million in Chinese contracts across its Advanced Mining Technologies and Industrea Mining Equipment divisions as well as the acquisition of a manufacturing business in China.
Industrea has also announced signing contracts for the acquisition of a strata support manufacturing business in China. Currently supplying products for underground strata control systems, Industrea plans to expand the acquired facility to manufacture a PJ Berriman flameproof and explosion proof personnel and materials vehicle exclusively for the underground coal mining market in China.
“We see good scope for the sale of a PJB vehicle specifically for the Chinese market where we can take the best of the Australian based design to produce a vehicle at a price point acceptable to our Chinese customer base,” Mr Levison said. “This latest facility further strengthens our presence on the ground in China in addition to our existing product support centres.” In relation to the further methane gas drainage and directional drilling system sales, Xishan Coal and Electricity Power Group is China’s largest and the world’s second largest coking coal production enterprise. It is headquartered in Taiyuan, Shanxi and involves coal mining and processing, mineral well construction, coal mining machine manufacturing, and electricity equipment repair.
Fu Yan mine, a new customer, is owned by Yangcheng county government of Shanxi province. Fu Yan mine neighbours Daning mine and Zhulinshan mine, both of which are existing Wadam Industries customers. Fu Yan mine’s current coal output is 0.9 Mt and neighbouring Daning mine assisted in securing the sale. Also in Shanxi Province, Jincheng Anthracite Mining has purchased a further three methane gas drainage and directional drilling systems for use in its Sihe Mine in Jincheng City. “Following supply under this latest contract, Jincheng Group will be operating approximately 18 methane gas drainage and directional drilling systems all supplied via Wadam Industries,” Levison said.
In 2009 the Shanxi Government released Shanxi’s coal industry restructure and revitalization plan to close or consolidate small mines and reduce the number of coal mines in Shanxi Province to 800 by 2015. In addition the plan targets increasing the mechanisation rate in mines from China’s current average of 60% up to 85%. This continuing consolidation and safety push is expected to provide ongoing opportunities for Industrea’s suite of mining safety and productivity equipment in the region.