Move into metals a win for Sedgman

COAL services company Sedgman has cemented its position as the world leader in coal handling and preparation plant design construction and operation after posting a 59% boost in net profit for the fiscal year.
Move into metals a win for Sedgman Move into metals a win for Sedgman Move into metals a win for Sedgman Move into metals a win for Sedgman Move into metals a win for Sedgman

Scorpion Cable Handler being manufactured at Advanced Chain Technologies' UK factory.

Staff Reporter

The $A20.9 million surplus exceeded the prospectus forecast by 20% and was announced in the company's annual report released to shareholders today.

Also contained in the report were details of Sedgman's major contracts recently signed with Anglo Coal to undertake design, construction and commissioning work on the $346 million Lake Lindsay coal handling and processing facility and a $442 million upgrade project at the Dawson CHPP site.

The Dawson project involves the design, construction and commissioning of 3400 tonne per hour -single stage- 2200 tonne per hour- two stage- CHPP and overland conveyor system while work at the Lake Lindsay site will cover design, construction and commissioning of an 800tph coal preparation plant, expansion of the existing coal handling plant and overland conveyor system.

These contracts, awarded to the Thiess Sedgman Joint Venture are the two biggest CHPP contracts ever awarded in the Australian coal industry.

Sedgman also secured its largest independent contract of $75 million to construct a CHPP at QCoal's Sonoma mine near Collinsville during the record-breaking year.

Sedgman managing director Peter Hay said the contract wins were boosted by the company's acquisition of metals services company Pac-Rim and minerals processing engineering and project management company Intermet that launched Sedgman into the broader metals industry.

"Intermet and Pac-Rim have given Sedgman the opportunity to create a look-alike in the metals sector, which dwarfs the size of the coal market," Hay said.

"Having demonstrated our ability to enter complementary markets through acquisitions, we will continue to pursue this strategy as we grow Sedgman into a leading global resource services company."

The future outlook for Sedgman looks strong, with interest domestically and from abroad from within the coal and metalliferous industry.

"Sedgman's coal division is currently undertaking a record amount of project studies and we expect to convert a number of these into new design and construct projects," Hay said.

"Internationally, Sedgman has received a letter of intent from Brazil's CVRD to provide design services on the Moatize project in Mozambique, potentially Africa's biggest coal mine, while significant opportunities are seen in China and India."