Valley Longwall’s gas drainage contract business, which is firmly entrenched in the gas drainage market, has now been bought by cashed-up Chinese Taiyuan Mining Machinery Group and Mastermyne has picked up its first gas drainage contract at Centennial’s Newstan colliery.

Industrea Gas Management has advertised for a NSW operations manager to be based in Newcastle, indicating that it will be pursuing contract opportunities in Newcastle and Hunter Valley coal mines instead of the traditionally high gas mines in the south coast.

In its job description for the role Industrea’s recruiter states: “You will be required to keep abreast of market competitor activities and opportunities whilst also maintaining a close association with other relevant staff and specialists in relation to current tenders, submission and quotations.”

The key responsibilities for the job are listed as maintenance and improvement of profit margins and costs, promotion and marketing of IGM drilling services to existing and prospective clients, as well as ongoing detailed report preparation for the company and clients in regards to current and upcoming NSW contracts and projects.

At the time of its acquisition of UIS from AJ Lucas, Industrea said the business – which provides underground in-seam drilling for mine exploration, mine dewatering and coal mine methane gas drainage – would enable the company to roll out a fully integrated gas management solution on an accelerated basis.

The business would combine with Industrea’s newly formed gas management division to service clients such as Anglo Coal, Centennial Coal, Xstrata and Rio Tinto, managing director Robin Levison said.

“The acquisition and integration of the UIS business will augment Industrea’s new gas management division and allow us to provide a broader and enhanced gas management solution to both Australian and international clients, especially in China and Russia,” he said.

“The transaction provides Industrea with further earnings diversification and a client base which includes many of the industry’s leading operators.

“The addition of the UIS business is part of Industrea’s strategic objective to selectively target earnings enhancing bolt-on acquisitions and to pursue high-margin opportunities across related sectors.”

The AJ Lucas UIS business was the second largest underground in-seam drilling provider in Australia, with about 44% market share and 45 staff, including a dedicated operational management team.

The acquired fleet includes seven drilling rigs and eight survey systems.

“Over recent months Industrea has leveraged its experience to develop and manufacture an Industrea drill rig which, when incorporated with the unique AMT Drill Guidance System, represents a clear technological step change over existing gas drainage solutions,” Levison said.

In April Prime Minister Julia Gillard attended the official ceremony to mark the completion of Shanghai-based Taiyuan Mining Machinery Group Coal Machine’s acquisition of Valley Longwall International, at Parliament House.

China’s massive coal industry dwarfs Australia’s, providing plenty of expansion opportunities for Valley Longwall’s products and services to a larger underground coal sector.

“The coal industry in China is increasingly seeking to work with suppliers and partners with high safety standards and access to quality technology – both of which are core to VLI's business,” Valley Longwall chief executive officer Brett Lynch said.

“The signing of this agreement marks a very exciting time for our company and will create tremendous opportunities for all VLI employees.”

The Valley Longwall brand will be retained by China’s TMG.

Investment firm Catalyst put Valley Longwall up for sale last year and Australian original equipment manufacturer Industrea was involved in the bidding process.

But TMG clinched a deal to fully acquire Valley Longwall just a few days before Christmas.

The sum was not disclosed and Catalyst, which bought Valley Longwall for almost $A250 million in 2007, did not put out its own public announcement on the transaction with the Chinese manufacturer.

Last year Valley Longwall consolidated its business into three divisions – drilling, diesel and conveyors.

Products from the diesel division include the Driftrunner underground personnel transporter, the Brumby utility vehicle and the Jug-A-O utility loader.

Valley Longwall also manufactures specialised in-seam directional drilling systems and stocks a wide range of hydraulic and mechanical spares and consumables.

The company is also a major manufacturer, maintainer and distributor of conveyor products and components.