The latest deal follows the company’s breakthrough success last year with the delivery and commissioning of the first VLD Series 1000 directional drilling system to the Daning coal mine. Through Chinese agent, Wadam Industries, Valley Longwall signed a second contract earlier this year with Shanxi Asian American Daning Energy Co. (SAADEC) for the delivery of a second VLD Series 1000 Directional Drilling System.

The first system has notched up an impressive list of achievements since being commissioned in April 2003. The first rig drilled the first ever (in China) 1000 metre directional horizontal in seam gas drainage and exploration hole; and completed over 65,000 metres of directional in seam drilling in 10 months with local drill operators.

According to Valley Longwall, as a result of the drilling program Daning has vastly improved gas drainage and improved gas flows from in seam boreholes as well as reduced Ventilation Air Methane (VAM). The purity of drained and captured gas has improved as well as the viability of capturing gas for power and heat generation. The mine now has the option to install a gas turbine system for power generation.

“Valley Longwall Drilling Pty Ltd is now looking at expanding our operational base in China,” said general manager, Chris Freer.

“The company has been working its way through the auditing, presentation and proposal stages with several other coal mining groups in China. As a company, we feel we are on the verge of a quantum leap forward with our operations in China.

“The difficulties associated with getting the first operation off the ground have been successfully managed. The fact that we have been able to supply the support to our operation, intensify and pull back as required, proves the company has the experience and the capability to support ongoing and expanded operations.”