DBT will operate and maintain the equipment on a dollar per tonne basis for up to five years while it trains the local company’s staff and gradually withdraws.

Senior consulting engineer Daniel Hibbert said DBT had a long-term commitment to the rapidly growing Indian market and would be open to continue supplying consultants and maintenance services after the five-year period has ended.

As part of the deal, the German group is supplying $2.5 million in spare parts onto the minesite.

“We’ve been looking at emerging markets, India in particular, for the past three years,” Jakarta-based Hibbert said.

“India’s plans for its coal industry, its requirements, are immense.”

That is not to say India is without its challenges. Hibbert said it can often take up to 12 months to close an equipment order.

The Singareni tender opened in December last year, a letter of intent was issued in September and the purchase order was signed this week.

“When you submit a tender there has to be an incredible amount of detail,” Hibbert said.

“It takes a couple of months just to prepare the documents.”

DBT is preparing to participate in two more tenders, for industry giant Coal India and another for Coal India subsidiary South Eastern Coalfields.

But Hibbert warned lead times on supplying equipment were currently up to 12 months.

“Our order books are pretty full due to the high price prices,” he said.

“Last year, China killed us on roof supports – took almost our entire production.”

In Indonesia, DBT is adopting a similar technology transfer approach to the one it has taken in India, where it will continue to operate and maintain the equipment while training local staff.

Hibbert said two companies, Bumi Resourcs and Arutmin, are already undertaking small-scale underground trial mining to test conditions.

He said there were now moving toward more commercial tonnages.