Inner Mongolia has agreed to purchase four 55-tonne longwall roof support Chock Carriers to enhance productivity and safety, adding to Industrea’s $A75 million of new contracts since July last year, with most involving China’s coal industry.
Reflecting its name, the coal company is based in the northern Chinese region of Mongolia and has five mine districts stretching some 220 square kilometres with proven recoverable coal reserves totalling 2.2 billion tonnes.
“Inner Mongolia Yitai Coal is targeting a major boost in production capacity over the next six years, from 38 million tonnes in 2007, to 50 million tonnes in 2010, and over 100 million tonnes by 2015,” Industrea managing director and chief executive Robin Levison said.
“Industrea already services leading Chinese miners including Jincheng, Shanxi and Shenhua, and we see this new contract as a continuation of our successful Chinese expansion strategy.”
Industrea will boost staff numbers at its Beijing office while Levison said China aims to increase annual coal output 30% from current levels to over 3.3Bt by 2015.
“Despite recent volatility in coal prices, China is pressing ahead with its industrialisation, as demonstrated by the record infrastructure spending.”
Concerning its Australian market, Levison said the company is currently finalising negotiations on a material contract outside the Mount Isa region.
Financials
Having made a brief morning release yesterday detailing the latest half-yearly results, in the afternoon Industrea added it would make a maiden and interim, fully franked dividend of 0.25c per share.
The company said the dividend was keeping to its policy of distributing up to 20% of adjusted net profit after tax, which reached $24.6 million for the last six months of 2008.
Industrea reported $44.7 million cash at bank at the end of the year and had paid down $32.47 million of the $84.9 million hire-purchase debt from the $250 million Huddy Mining Services acquisition in February 2008.
Levison added the company had no drawn debt maturing until the end of February 2011.
New appointments
Industrea has appointed former Vale Australia managing director Tim Netscher as a director immediately, while the equipment supplier has also recently appointed David Cahill as chief international officer.
Netscher previously held senior roles with BHP Billiton and PT Inco in Indonesia.
Cahill on the other hand, has held senior roles during a 20-year career with oil major BP.
Shares in the company were up half a cent to 11c this morning after gaining up 15.4% yesterday.
