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

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

EAST COAST PROPERTY BOOM BUILDS PROFITS FOR BRICKWORKS

AUSTRALIA'S residential property boom has helped drive a sharp rise in first half earnings for Brickworks (ASX: B...

COLLINS SUPERSIZES IN EUROPE WITH PURCHASE OF 16 KFC RESTAURANTS IN THE NETHERLANDS

COLLINS Foods (ASX:CKF) has stepped up its European expansion through the purchase of 16 KFC restaurants in the Ne...

CSIRO HELPS DEVELOP AUSTRALIAN PHARMA COMPANY FROM $10 MILLION TO $305 MILLION

GOVERNMENT backed scientists have helped multiply the market value of a previously small Australian pharmaceutical...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter