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Delta SBD in fine shape amid downturn

UNDERGROUND coal contractor Delta SBD is weathering the industry downturn that has engulfed other...

Lou Caruana
Delta SBD in fine shape amid downturn

The company is continuing its recruitment and training programs and has maintained its diesel equipment hire utilisation rate as it deploys newly acquired capital equipment.

In a presentation to investors, Delta SBD managing director Stephen Bizzaca claimed its strength lay in its diversity of services, equipment, clients, geographical regions and coal types.

Delta SBD provides roadway development, longwall moves, conveyor installations, secondary roof support, ventilation devices, outbye services, gas drainage, supplementary labour and equipment hire.

Delta SBD scored its first major drivage development contract outside the Illawarra region of New South Wales when it won a contract at Whitehaven Coal’s Narrabri mine in October 2011.

It resulted in contracted development units increasing from four to six and the need to recruit more than 60 employees on a fly-in, fly-out arrangement with favourable roster patterns.

In September the Joy 12CM20 continuous miner was delivered and will be utilised for this contract, which has been extended until December 30, 2013.

Diesel asset hire utilisation increased by 20% to an expected target of 60% but mining assets hire utilisation decreased to 81% with the acquisition of additional equipment, according to the contractor.

Over the next six months Delta SBD will dismantle the surface build, as well as organise the transport and underground installation of the longwall at the BHP Billiton Mitsubishi Alliance Broadmeadow mine and Rio Tinto Coal’s Kestrel mine in Queensland.

In 2012 Delta SBD acquired additional “fit for purpose” equipment, completed eight longwall projects, increased its workforce by 29% to 540 employees and was named BHP Illawarra Coal supplier of the year, Bizzaca said.

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