Mining diversified

Written on the 15 September 2009

SINCE Diversified Mining Services (DMS) was formed from a merger in 2007, it has achieved more than 20 per cent growth per annum from increased efficiency in a fragmented industry and the development of new products.

Managing director Terry Young says by merging six different businesses DMS is able to offer a more comprehensive service than any of the smaller companies could have before, with a strong forecast in revenue growth for 2010 – between 20 to 25 per cent.

“We are able to offer our clients just one safety protocol to manage, one invoice to pay, one supervisor to communicate with – instead of 10 to 12 different subcontractors all with different requirements to manage,” he says.

“It’s a much simpler arrangement for our customers and they save a lot of money because of less overlap and inefficiencies.

“The long term future of mining in Australia is very bright and we see strong results in store for the industry.”

And Young’s optimism is being put into practise this month, as DMS plans to recruit 60 more employees in September and October, as the firm expands to meet growing demand.

“We have regularly knocked back requests for more work because we did not have the resources, at the time, to take on the work,” he says.

DMS has invested $20 million over the last three years into developing and building a new underground coal load, haul and dump (LHD) vehicle called ‘Coaltram’, in conjunction with Swedish firm Atlas Copco.

“Our first machine was sold last month and is in use at Donaldson Coal in the Hunter Valley,” he says.

Young puts a value of around $20 million on forward orders for the vehicles, but DMS is also developing an asset inspection and maintenance service (AIMS), in addition to discussions with international companies about new mining products. DMS is now keeping in the spirit of its formation with two further mergers under consideration.

“Our primary driver is organic growth and we are seeing great results from pull-through sales between the business units, but when it is a complementary fit we will certainly pursue more acquisitions.

“Our greatest opportunity is managing our growth – we are competing in a highly fragmented sector with plenty of opportunities to increase sales.

“We provide a highly trained team that is flexible and multi-skilled, which solves maintenance and operational issues for mine managers and lets them get on with their production targets.”


Latest News

THE COMPANY THAT DECIDED IT WAS GOING TO GIVE A CRAP THANKS TO CROWD FUNDING

SIMON Griffiths is using toilet paper to save the world.

In 2012, on the back of an IndieGoGo crowdfunding campaig...

TECHNOLOGYONE OUTSTRIPS PROFIT EXPECTATIONS AS R&D SKYROCKETS

TECHNOLOGYONE (ASX: TNE) has surpassed market expectations to achieve a half-year profit after tax of $8.1 million, u...

CLASS ACTION FILED AGAINST SURFSTITCH AFTER ANOTHER EARNINGS WIPEOUT

AS ONLINE retailer SurfStitch (ASX: SRF) battles for survival following another negative earnings forecast, a $100 mi...

SURFSTITCH DOWNGRADES EARNINGS AS SHARES PLUNGE 25 PER CENT IN A DAY

TROUBLED online sports clothing retailer SurfStitch is considering selling off more of its assets and will close i...

Related News

THE COMPANY THAT DECIDED IT WAS GOING TO GIVE A CRAP THANKS TO CROWD FUNDING

SIMON Griffiths is using toilet paper to save the world.

In 2012, on the back of an IndieGoGo crowdfunding campaig...

SURFSTITCH DOWNGRADES EARNINGS AS SHARES PLUNGE 25 PER CENT IN A DAY

TROUBLED online sports clothing retailer SurfStitch is considering selling off more of its assets and will close i...

AUSCANN RESUMES TRADE AFTER $12 MILLION CAPITAL RAISING

IT'S BEEN a big few days for medical cannabis manufacturer AusCann (ASX: AC8), as the company emerged from a trad...

APN AND oOh!media MERGER CALLED OFF, CEO 'AMAZED' AT ACCC'S DECISION

THE PROPOSED $1.6 billion merger between Australia's two largest advertising groups, APN (ASX: APO) and oOh!me...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter