While making money from coal may be a struggle for some, on the fringes of the industry buoyant trade in second-hand mining equipment is generating a healthy livelihood for others. One of those companies that have spotted the opportunity is auction house All States Auctions & Appraisals, which deals exclusively with valuing and selling mining equipment.

The Sydney-based company has been around for 18 years, and in recent times coal has proved something of a mainstay. The closure of collieries like Oakdale and Brimstone inevitably thrust a large volume of second-hand mining equipment onto the market - whole mines, in some cases.

All States Auctions organises underground recoveries and then sells the equipment to whoever is buying. This frequent association with bad news has led to it being somewhat ignominiously nicknamed the 'mining mortician'.

But being the bearer of bad tidings is something All States Auctions managing director Geoff Brain has grown accustomed to.

In recent years, Brain has seen the second-hand market subtly change. Economic pressure on the coal industry has forced a growing number of mining companies to attend auctions, on the lookout for good second-hand equipment or spare parts.

"Because of the price of coal, rather than buy a new machine mines are prepared to buy a second-hand machine or spend some money doing up an old machine," Brain said.

Undoubtedly, auctions are something of an indirect threat to many OEMs - every metre of conveyor belt sold second-hand represents a metre an OEM will not sell. OEMs, however, frequently attend auctions and occasionally bid for their own equipment. But "they don't want to be seen bidding against their customers", Brain said. "It's wheels within wheels."

Up to 70% of Brain's customers were once contractors. The long lead time for most big ticket items is one main imperative which thrusts contractors into the second-hand market. Once a job has been awarded, contractors are expected to mobilise very quickly on site - with equipment.

The average price realised at auction ranges from a few hundred dollars to around a million. Brain said the biggest demand at present is for rubber-tyred diesel equipment.

"The Eimco 913 has been a standard in the industry, and with a QDS attachment you're only limited by your imagination in terms of what you can put on the front of it. But they have been a little superseded by the EJC130. We've seen a drop of about 25% in what the Eimco is fetching.

"We had six at Oakdale and we sold them from $72,500 to $120,000. At Brimstone, similar machines fetched $75,000, and there wasn't the competition we've had in the past, principally because many of the bigger players - the big hire firms - have disappeared off the scene. They make the market in the rubber-tyred equipment [segment]."

Electrical equipment such as sub-stations, flameproof gear and cable also sells well, attracting groups such as Ampcontrol, which has developed a significant second-hand electrical business over the last ten years. With its full workshop and specialist staff, Ampcontrol is able to repair, upgrade, certify and test electrical equipment bought second-hand, which is all about value-adding. Ampcontrol turns over $2-3 million in this business annually - around 10% of the company's total turnover - and holds roughly $1 million worth of refurbished second-hand stock at any one time.

An important part of Brain's work is to organise equipment that once made up a functioning mine into job lots that will attract realistic bids. This involves careful assessment of what equipment is going to make the most money once retrieved. The cost of the retrieval must be weighed up against the possible bids. Brain helps people focus on the economics of each bit of gear. But because the whole idea is to dismantle a mine, it is work that is anathema to a miner.

"Some of the guys just can't handle it," Brain said. "They may have been there for many years. Especially in the latter stages of the process."

As Brain remarks: "Every mine that opens up one day is going to close down, but there are always mines opening up at the same time."