Industrea has signed two additional agreements with Warkworth for the hire, service and support of heavy mining equipment, bringing the total now hired by the mine to 17.
The fleet comprises seven vehicles redeployed from Huddy’s operations in Mt Isa and 10 new vehicles.
“These latest agreements lift the overall revenue from our fleet utilised at Rio Tinto’s Mount Thorley Warkworth mine to approximately $3-3.5 million per month once all equipment is mobilised. With a defined term of 24 months, these latest agreements provide assurance on the returns from our investment in this new equipment,” Industrea managing director Rob Levison said.
Huddy’s has been focused on the coal sector, particularly in NSW, after losing its single largest contract at Xstrata’s Handlebar Hill at Mt Isa Mines early this year. The latest contract provides the contractor with economies of scale in the region.
“The latest mining services contracts for Huddy’s are indicative of the strength in depth across all areas of our expanding business, and the success of Huddy’s diversification into the coal industry in the Hunter Valley and Bowen Basin,” Levison said.
The new service and maintenance requirements under the contracts will also require a modest increase in the number of Huddy’s employees in the Hunter Valley.
To fund the new equipment Industrea will use available hire purchase debt facilities with the balance to be funded from equity and operational cash flow, including the share purchase plan announced late August.
Industrea recently expanded its Hunter Valley manufacturing base with the acquisition of metal fabrication business Kade Engineering, based in Gloucester, and the relocation of Industrea Mining Equipment to new premises in Thornton, tripling the manufacturing capacity of its underground and open cut mining productivity and safety equipment.
