Grasstree longwall moves boost Delta

A NEW longwall move contract with Anglo Coal’s Grasstree mine in Queensland has helped contractor Delta SBD deliver a 9% higher annual net profit year-on-year of $5.3 million and $14 million for new capital equipment purchases.
Grasstree longwall moves boost Delta Grasstree longwall moves boost Delta Grasstree longwall moves boost Delta Grasstree longwall moves boost Delta Grasstree longwall moves boost Delta

Delta SBD chief executive Steve Bizzaca

Lou Caruana

Delta SBD also secured a new contract to provide drill and blast dyke extraction services at Grasstree and it has retained the whole-of-mine management contract for Boral at the Berrima coal mine in Medway, New South Wales.

Delta SBD chief executive Steve Bizzaca said the new contracts demonstrated its capability to deliver complex solutions to a number of clients.

“We have the financial strength, skills base, experience and equipment to be able to deliver outstanding service to our clients in the underground coal mining sector,” he said.

“The group performed strongly during the year, securing additional contracts across the east coast of Australia, expanding and upgrading our fleet of equipment and improving our safety performance on all key indicators.”

The first of five contracted longwall moves at Grasstree represented Delta SBD’s 81st longwall project.

In June 2011 Boral increased the production requirement from the Berrima colliery by 25% for financial year 2012.

Delta SBD continued to expand its equipment fleet through a number of purchases and upgrades, growing its fit-for-purpose fleet to more than 40 units, while committing $14 million to new capital equipment to increase future growth opportunities.

Its newly purchased longwall move diesel equipment – which includes loaders, chock transport and shearer transport – will be the most extensive and only fleet of its capacity available for service in Australia, ensuring Delta SBD is well placed to secure further longwall move contracts, according to Bizzaca.

“We are committed to investing in new equipment and continually improving our fleet to ensure we remain at the forefront in safety and productivity and add value to our clients’ mining operations with a full service offering not available from other contractors,” he said.

“Additional fit for purpose equipment acquired will provide us with a strong platform to secure additional business opportunities and place Delta SBD in a unique position in the Australian underground coal industry.

“We are now the only contractor in Australia with a full service offering for longwall moves inclusive of its 100% owned diesel fleet.”

Delta SBD aims to be more competitive in roadway development contracts with the purchase of a Joy continuous miner, scheduled for delivery in July 2012.

Bizzaca said this would provide Delta SBD with a competitive advantage by utilising the latest available technology to provide safe and productive outcomes for clients.

In a significant year for Delta SBD following its initial public offering and listing on the Australian Securities Exchange in December 2011, it reported revenues of $83.8 million, up 10% on the previous year, while earnings before interest, tax, depreciation and amortisation was $9.4 million, up 18% on the previous year.