Industrea wins $2M Chinese contract

INDUSTREA has signed a $A2 million contract to supply underground directional drilling and gas drainage equipment to Shanxi Asian American Daning Energy.

Angie Tomlinson

The deal marks the fourth system sold to SAADEC over six years, making the miner the longest user of Australian-built underground directional drilling equipment.


The equipment will be supplied by Beijing-based Industrea subsidiary Wadam Industries to SAADEC’s Daning coal mine in Jincheng, Shanxi Province.


Industrea managing director Rob Levison said many Chinese coal miners had visited the Daning mine to see the benefits of the equipment, leading to continued orders from across the country for the drilling systems.


Levison said the mine had demonstrated the effectiveness of the methane gas drainage equipment, with the Advanced Mining Technologies Drilling Guidance System now industry standard in China.


“The Daning mine has been a role model for other Chinese coal mines in successfully removing very high methane gas content from its seam, and the effective drainage of this potentially dangerous gas has had an enormous benefit in improving mine safety,” he said.


“The Chinese government’s new tax on coal to fund the purchase of safety equipment shows their determination to improve standards.”


The Daning mine was the first foreign-invested coal mining joint venture in China. Asian American Coal holds a 56% stake in the project.


In 2007 the mine produced 3 million tonnes of coal and has a long-term plan to produce 6Mt per annum.


Industrea has now won more than $102 million of new export contracts since July 2008.


The company was trading steady this morning at 19.5c.

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