“This has not been an easy decision for me to make, given that I have used Valley Longwall Drilling as the base to build an internationally recognised supplier of quality products and services to the international coal mining industry. But, with the company stable and gaining strength in Australia, I figure it is the right time to hand over the reins and take the company truly global,” Freer said.

“The last 12 months have been tough – working in an industry that has been severely constrained in times of record coal prices by port and transport infrastructure shortfalls, as well as severe weather and flooding affecting coal mining in both New South Wales and Queensland.

“Given the burden of these problems, we were able to stabilise the company and set it back on the path of stable organic growth, though this will still be constrained through to 2010 when port and transport infrastructure projects begin to come online and open Australia up to greater coal export opportunity.”

Freer will now take on the role of international business development president for Valley Longwall International.

Having worked in China now for 11 years to promote the company’s products and services, Freer is keen to access the world market to overcome the restrictions placed on the company’s growth opportunity in Australia by the infrastructure restraints and sub-prime affected equity and money markets.

“Over the last couple of years in particular, we have been able to establish a real presence in the Chinese coal industry, supplying directional drilling systems, contract drilling services and flameproof diesel equipment to an ever expanding and dynamic market,” he said.

“China is a country of opportunity, providing you are ready to commit to a long-term presence in the market there. Business success is based on being able to build a solid framework of relationships and then offer quality products that are technically advanced and superior to local products.

“This takes a level of activity at this stage of our development in the overseas market that now precludes me from my traditional dual roles within the company.”

Freer said the hard decision for him was choosing the direction in which to go.

“Essentially, take the easier path and settle back in Australia as the CEO of a solid company, or drive the company in the overseas market to a whole new level of success,” he said.

“I have always enjoyed a challenge and have a particular passion for the dynamics of the Chinese market and economy, so I have taken, probably, the harder road.”

Using China as a springboard, Valley Longwall has also been able to gain entry to the Russian and Eastern European markets.

“Timing was opportune, and based more on the building workload overseas than absolute choice,” Freer said.

“We have signed off on a number of new equipment and services contracts in China over the last two months, and will start the new financial year off with a strong order book.

“We also have a building order book in Russia and opportunities presenting themselves in the Ukraine, Czech Republic, Poland, the US and Canada."

Freer said the Chinese coal market will produce in excess of 2.5 billion tonnes in the 2008 calendar year with growth in the industry output expected to drive production to more than 3Bt per annum by 2015.

“What better place to be for a dynamic company like Valley Longwall,” he said.

Freer and the Valley Longwall board will nominate a new CEO prior to him stepping down on May 31, 2008.