Zhengzhou, a large mining company listed on the Shanghai Stock Exchange, is aiming to expand its coal production by the introduction of new technologies.

The deal is the latest in a series of major Chinese contracts secured by Industrea, including a $10 million contract with the Longmei Mining Group announced last month.

Industrea managing director Rob Levison said the company’s expansion into China had always been a major growth strategy driver.

Industrea sales and distribution is coordinated on the ground by its Beijing-based subsidiary, Wadam Industries.

Levison said the modernisation of China’s mines – with the expectation of greater safety and productivity – continues to fuel demand for Industrea’s products such as directional drilling and coal degasification systems.

“With coal demand and prices continuing to rise, new capital projects that were high on the cost curve are being brought forward,” he said.

“This is resulting in Industrea experiencing increased levels of enquiries that will impact positively on both the 2009 and 2010 financial years.

“Also, as the population of Wadam-supplied equipment continues to grow in the Chinese market, Industrea has an expectation that revenues associated with the sales of spare parts and servicing will increase in line with total cumulative sales.”

Industrea’s directional drilling equipment assists in the accurate placement of in-seam horizontal bore holes. The technology aids in the degasification of mines and is suitable for both underground and surface drilling.