Industrea said it was the first major contract for Huddy in the Hunter Valley, with the deal covering the hire, service and support of equipment.

Industrea managing director and chief executive officer Robin Levison said Huddy would provide a significant number of pieces of heavy mining equipment, with most redeployed from Huddy’s operations in Mount Isa, Queensland.

The equipment supplier said the deal builds on its relationship with Rio Tinto, which has a 75% stake of Coal & Allied.

So far this year Industrea signed three heavy earth moving equipment contracts for operations in Queensland’s Bowen Basin, including a one-year deal with Rio Tinto Coal Australia for its Blair Athol mine.

“These contracts are illustrative of the strong level of enquiry we are experiencing from major mining companies for the full suite of Huddy’s integrated mining services,” Levison said.

“Given the tight capital environment, many of our mining clients are looking to outsource rather than acquire new capital equipment and this is creating growing demand for our business.”

He added the company has a strategy of targeting the thermal coal market, which it considers relatively insulated against market volatility.

The value of these contracts was not provided.

Last month Industrea also made a $A1.8 million acquisition of metal fabrication business Kade Engineering, based in Gloucester, NSW.

At the time Levison said the acquisition would consolidate the company position as a supplier and servicer of underground mining productivity and safety equipment.

Industrea shares traded up 0.5c this morning to 11c.