UGM Engineers, like many suppliers in the industry, have noticed increased demand by mines for companies to provide a “one-stop shop”. This demand has meant UGM now offers coal cutting, secondary bolting, conveyor maintenance, conveyor install/retraction, ventilation installation including concrete bulkhead seals, road maintenance crews, concrete construction crews and supplementary labour for preferred clients.

“We have noted the value placed upon the ability of UGM to provide that range of activities, our ability to react to ongoing and changing client demands for resources and the appreciation of the management support we provide to our teams at each site,” UGM managing director Paul Hartcher said.

UGM has also noted the ability to relocate labour to accommodate relatively short-term resource requirements, such as longwall relocations, was well regarded.

“The relationship with preferred clients is based upon the inclusion of UGM in strategic mine planning milestones. Forward notice is paramount in meeting resource requirements; and an acceptance of the need to take labour and equipment when it becomes available and commit to firm use-by dates is a major factor in UGM’s determination of ‘preferred client’ status.”

Over the past year UGM have driven about 15km of gate road development at West Wallsend, Beltana, Newstan, Mandalong and Wambo; mains driveage at Austar, West Wallsend, United and Wambo; and stone driveages at West Wallsend and Wambo.

The conveyor division, which UGM’s success was originally built on, is still going strong. Over the past 12 months the contractor has installed major conveyor drives – inclusive of transfers, loop take-up (LTU) and all electrics and control – at Moranbah North, Wambo, Dartbrook, West Wallsend, Oaky 1, Ulan, Westcliff, Mandalong, United, Newstan and Kestrel; and has continuing maintenance arrangements at Mandalong, Ulan, Wambo, Dartbrook, United, Moranbah North and Kestrel. UGM also boasts the ability to assist with conveyor design issues and electrical and control projects.

UGM has invested some of its capital in bolting equipment and building up a large diesel fleet. The service diesel fleet consists of 20 LHDs (load-haul-dump vehicles) inclusive of Jug-A-Os, ED10s, ED7s, EJC130s, 15 Mantransporters and a mobile scissor lift. Bolting equipment includes a Fletcher bolter, six air tracks, diesel power packs and concrete pumps.

UGM recently acquired three continuous miners to support a drive development contract at a Hunter Valley mine.

“UGM has adopted a philosophy of purchasing coal cutting equipment once we have the coal cutting contract to justify the capital,” Hartcher said.

“In the current equipment market, there is a backlog of OEM new equipment to come into the industry and at some time in the future there must be an oversupply; and premium prices paid now for second-hand equipment may result in an expensive write-off in the future if expenditure is not balanced against a firm contract.”

UGM has also established its own Diesel Service Division (DSD) to enable specialised servicing of its own and preferred clients’ equipment.

“It is our experience that the use of site labour for servicing generally results in missed critical factors that inevitably result in major component failure, costs and downtime. Since the inception of DSD, our and our clients’ equipment uptime has increased,” Hartcher said.

UGM has invested heavily in compliance and training for employees. Its size means it has the ability to bring in a large number of “cleanskins” into the industry at any one time and skill them up.

“Clients inevitably want personnel, equipment or services at short notice and want labour to be fully experienced and competent to undertake the widest suite of tasks on as many items of equipment as possible. Our wide client base allows the best chance for this to be achieved,” he said.

In the current climate, Hartcher said there could be temptation to take on more contracts than a company normally would and spread its resources over too large a base.

“The current buoyancy in the industry has lead to significant growth in demand for contracting services and the rumour mill becomes very active in such competitive and well fertilised fields,” he said.

“Our employees are at times being confronted with tales of inexhaustible competitor growth with seemingly endless client lists and promises of golden personal futures.

“We want not only our employees, but our current and prospective clients, to know just how successful we are and our intention to simply keep doing what we’ve been doing without losing focus or spreading the talents of our key people too thin.

“We won’t go away, so when the dust settles and the hard yards have to be done, our clients and workforce of 360 personnel can feel assured we’ll still be there.”