After what HWE has described as disappointing results for the 2000-01 financial year (net profit fell 35% to $17.2 million), the company reported revenue for the first quarter to September 2001 of $304 million. This was 5% above the corresponding figure last year of $290 million.
In 2001, over half the company’s revenue was generated by contract mining in Australia and New Zealand. The company’s other divisions were Australian civil engineering, which generated revenue of around $100 million; international contracting; and Simon Engineering bought 18 months ago, and generated revenue of $89 million in 2001.
The complimentary nature of the four businesses allowed HWE “to offer a total solution package to resource developers around the world, a civil engineering capability which is supported by a strong mining capability and the mechanical, process and electrical engineering skills of Simon Engineering,” said ceo Richard Ryan.
“We are Australia's largest listed underground mining contractor and, are now deriving a growing amount of business from the coal sector,” Ryan said.
In 2001, the company has expanded its coal mining operations through the winning of three new contracts. As a result, the company expects to double its revenue from coal mining in 2002 compared with the previous year.
Major coal projects include an open-cut project at BHP Billiton’s Gonnyella Riverside mine in Queensland’s Bowen Basin (worth $28 million), and at Rotowaro in New Zealand for Solid Energy New Zealand, worth NZ$107 million.
HWE is responsible for all operations at Rotowaro from stage planning through to mining, processing and loading finished product.
Ryan said HWE and Solid Energy had taken a cooperative approach to the operation which has resulted in a reduction in production costs and safety improvements in lost time injury rates from around 30 to zero over three and a half years.
”The financial gains resulting from improved performance are shared, and Solid Energy and Henry Walker Eltin have shared in a productivity dividend in every year of the contract to date,” the company said.
“Perhaps the most pleasing aspect of the Rotowaro contract has been the vote of confidence we received in 2001, when after a competitive tender, Solid Energy awarded us a second coal mining contract at Stockton. We are delighted to have been able to build on the relationship with Solid Energy,” said Ryan.
“We have built our contract mining business up to the point where we believe it is the second largest in the world. We are currently operating at 29 locations worldwide and move over 300 million tonnes of material per annum.”
Work on hand at 31 October 2001 was $1.65 billion, the same level as 12 months previous.
