Industrea signs $A16.5M of new orders

INDUSTREA has secured more than $A16 million in new contracts for its safety products across its Advanced Mining Technologies (AMT) and Huddy’s Mining Services divisions in the South African and Chinese coal markets.
Industrea signs $A16.5M of new orders Industrea signs $A16.5M of new orders Industrea signs $A16.5M of new orders Industrea signs $A16.5M of new orders Industrea signs $A16.5M of new orders

Industrea CEO & MD Robin Levison with the company's Directional Guidance System.

Lou Caruana

Industrea managing director and chief executive Robin Levison said the positive growth in South Africa and China with continuing strong sales to BHP Billiton and other new customers taking up AMT products indicated ongoing demand for the safety technology in the regions.

“These new contract wins have boosted our order book and reflect the value of our R&D processes in terms of producing globally competitive products for the wider mining sector, as well as the potential for further growth across all our business divisions,” Levison said.

“Industrea continues to enhance its strong presence in key international and domestic markets, by providing a suite of world-class mining and safety equipment to customers around the world.”

AMT has signed a $2 million contract with BHP Billiton for its Hotazel mine in South Africa for AMT’s collision avoidance system CAS-CAM/RF.

AMT, through its South Africa agent, has also signed initial supply contracts for $700,000 for the initial supply of CAS-CAM/RF equipment to another new customer in the region.

Industrea’s Chinese customers, Shanxi Asian American Daning Energy Corporation (SAADEC) and Jincheng Anthracite Mining Group, have placed new orders for AMT’s directional drilling and methane gas drainage systems.

SAADEC has ordered another DGS unit for its Daning coal mine in the Qinshui coal field, Yangcheng county, Shanxi province. Jincheng has also ordered DGS spares totalling $7.8 million.

In addition to the Jincheng order, further recurring spares revenue for May 2010 was approximately $700,000 bringing May and early June orders for AMT’s DGS systems and spares in China to more than $10 million.

“The ongoing strength of sales in the key export market of China, particularly with repeat orders from existing customers, provides confidence in the potential for further growth of sales of AMT technology,” Levison said.

“SAADEC was the first Chinese user of the AMT technology, and its mine has become a role model for other Chinese mines in successfully removing high methane gas content from the coal seam.

“The ongoing use of the technology is indicative of the confidence being placed in the equipment by SAADEC, which we are seeing replicated in the mining industry in a number of other key international markets.”

Industrea’s shares were up by 2.5c to 33c in morning trade.

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