Mining a safe profit
Written on the 13 May 2009
INDUSTREA has a rapidly growing order book and continues to benefit from the Chinese Government’s mining safety tax initiatives, with $22 million worth of contracts with Chinese companies last month.
Since July 2008 Industrea has won more than $102 million in new export contracts and CEO Robin Levison expects the trend of one contract every three to four weeks to continue in 2009.
“We feel that the global mining market is very much focusing on productivity and safety and that’s exactly the sort of products what we manufacture, sell and hold the intellectual property rights to,” says Levison.
“Companies with ownership of our product have grown 100 per cent on what they were last year.”
The most recent contracts include a $20 million deal to supply long wall roof support and shearer carriers to China Shenhua Energy Company and a $2 million contract to supply drilling guidance equipment to the Shanxi Asian American Daning Energy Co (SAADEC).
SAADEC was the first user of Industrea’s methane gas drainage equipment, which has become the industry standard in China with government aims to boost mine safety.
The Chinese Government has introduced a new tax on coal to fund the purchase of safety equipment and Levison is very proud to make a contribution to the rapidly growing industry.
“Many other Chinese coal miners have visited the mine over the past six years to see first-hand the benefits of this equipment, leading to continued orders from across the country for the drilling systems,” he says.
“The Daning mine has been a role model for other Chinese coal mines in successfully removing very high methane gas content from its coal seam, and the effective drainage of this potentially dangerous gas has had an enormous benefit in improving mine safety.”