The facility will allow an increase in production rates over the next seven months from 50 vehicles a year to about 150 vehicles a year.

The increase will create about 75 jobs.

Brisbane-based DMS, an unlisted public company with about 700 employees, has operations in Mackay, the Bowen Basin, Gladstone, Newcastle, the Hunter Valley and Wollongong.

It provides maintenance services and operational support to underground and surface mines.

The company also is expanding its presence in the Wollongong Illawara region.

DMS managing director Terry Young said the production rate increases would be phased in over the next seven months to meet increased demand for the Coaltram vehicles.

“The uptake of the vehicles from the underground mining industry has exceeded our own expectations and we are confident this significant investment will help reduce waiting times for our customers,” he said.

“Our major priority in making this investment is ensuring we can meet demand in a timely fashion while allowing capacity for future growth as the Coaltram vehicles become standard equipment in the Australian underground mining industry.”

The low-profile Coaltram vehicles, in combination with a variety of attachments, can perform a range of functions underground including loading, lifting, materials handling, drilling and bolting, longwall shield relocation, cable handling, grading and dozing.

Three vehicle models – the CT13, CT10 and the smaller CT08 – were developed by a team of seven engineers and more than 20 support staff. It took three years and research and development expenditure of about $20 million.

Young said the production facility would also provide the capacity to increase the size of DMS’ rental fleet from 45 to 100 over the next two years.

“An increased number of Coaltram vehicles in our rental fleet will be welcomed by many clients and underpin growth of the DMS Mining business over coming years,” he said.

DMS Coaltram general manager Craig Anderson said the company was experiencing strong demand for the utility vehicles as mine owners and operators undertook diesel fleet replacements.

“In addition to the existing market demand, we are also experiencing a significant level of new enquiry with the forward looking outlook being strong due to the phased start-up of new mines,” Anderson said.

The Coaltram’s engine and electronic management system is the first Tier 3 engine to be approved globally for use in an underground coal environment.