Talking at the company’s annual general meeting, Industrea chairman David P Beddall said Industrea was confident it would meet its forecasts and business would continue as usual, despite a downturn in the share price.

“I can assure you there is no downturn in the demand in China for Industrea’s mining equipment,” he said in his address at the AGM.

“Industrea … has announced $55 million of new contracts to supply equipment to the China coal industry since June.

“It is worth remembering that Industrea's business in China is to supply equipment to enhance productivity and safety of the Chinese coal industry – Industrea does not sell commodities to China.

“We are seeing no slowdown in enquires for equipment – in fact the opposite is true.”

Beddall elaborated that if China grew at 7.5% per year for the next 20 years, the economy would quadruple by 2028, resulting in more energy demand with 80% fuelled from coal.

“China’s demand for energy continues at an unsubdued pace,” he said.

“China continues to commission a new coal-fired power station the size of Tarong [Queensland] each and every week.

“Demand for coal expands to meet this need. The average coal miner in China produces 400 tonnes per annum. The Australian equivalent is 12,600 tonnes per miner.”

He also indicated the company was well poised to sell more equipment to China given the government was emphasising mine safety, with the annual death toll from mining accidents in the nation officially totalling 4000 this year.

In other markets Beddall said the company had opened an office in Santiago, Chile to meet growing demand for the AMT Collision Avoidance System, with a recent sale to the BHP Billiton-operated Minera Spence copper mine in Chile, following sales to four Anglo American mines in April.

First sales were also made in Russia and Indonesia, with the latter for collision avoidance equipment to Vale Inco at the PT Inco Sorowako site in south Sulawesi.

So far this financial year Industrea has confirmed $37.6 million worth of contracts for longwall equipment and $10.9 million worth of gas drainage contracts in China.

Shares in Industrea were trading steady at 20c this morning, well short of the September high of 56.5c.