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Industrea wins another Chinese customer

INDUSTREA is increasing its foothold in China, winning a $A2.7 million contract with a new coal company customer to supply two 50-tonne longwall roof support carriers and associated spares.

Blair Price
Industrea wins another Chinese customer

Baoji Qinyuan Coal Industry will use the Aussie-made roof support carriers in its colliery in Shanxi Province.

Industrea managing director Robin Levison said the order was part of a trend where the closure and consolidation of small coal mines had led to the creation of new customers with the financial capacity to buy its equipment.

“Our ability to continue winning these types of contracts with new customers against strong competition is testament to the superior design and quality of our offering coupled with our growing support capability in China through our product support centre,” he said.

Up to 8000 small coal mines with combined output of 200 million tonnes could be closed or consolidated by the end of 2010, according to China’s State Council.

Major coal producer China Shenhua Energy noted production in Shanxi Province fell about 6.2% to 615Mt in 2009 with about 1000 small mines closed during the year.

“In 2010, the central government will broaden its experience in Shanxi Province to other provinces of the closure and consolidation of small coal mines, hence capping the growth in coal production,” Shenhua said in its annual report last month.

“The consolidation and reopening of production of small coal mines in Shanxi Province will be a gradual process and explosive growth of production is unlikely to occur.”

Baoji's annual coal production is about 1.5 million tonnes.

Industrea shares are up 1.2% to 40.5c.

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