“As the Australian underground coal industry has been undergoing change and one of significance, VLI sees the need as an original equipment manufacturer to also adapt with the industry and provide focus on core business activities related to the manufacture, service and support of its underground mining vehicles, the Juganaut and Driftrunner,” VLI said of the move.

While the sale price was not revealed, the deal closed on September 29 with the transition of this business to CMG to be completed over the next few weeks.

CMG hire fleet manager Andrew Brook told International Coal News that CMG will have a compliant, maintained fleet for when market demand comes back.

CMG also has about 20 Juganaut underground utility vehicles in its hire fleet.

Despite tougher times in the coal industry, CMG has expanded from a workforce of six people to 51 over the last 10 months and set up a 13,000 square metre workshop in the Hunter Valley town of Tomago.

CMG started up in Mackay in 2005.