Industrea’s Mining Services division starts FY’12 strongly with contract
extensions and wins worth $21M
- Existing contract with Lady Annie copper mine in Mt Isa extended with other new contract wins delivering revenue of $21M for FY12
- Resurgent Australian mining sector creating new revenue opportunities and boosting Mining services fleet utilisation rates
- Strong growth outlook for division in FY12
- Initial remedial and mining works start at Cockatoo’s Baralaba mine
Global mining products and services provider, Industrea Limited, today announced its mining contracting division, Industrea Mining Services (IMS), has won an extension to an existing contract in the Mt Isa region as well as two new contracts, which were expected to yield around $21M in revenue in FY12.
IMS existing contract with CST Mining Group for heavy equipment hire and maintenance for the Lady Annie copper mine 120 km north west of Mt Isa has been extended for an additional 12 months, for an extension value of $14.4M.
Industrea has also successfully executed two other contracts for IMS which are expected to generate an additional $7M p.a. in revenue.
The additional contracts relate to BHP Cannington’s Tailings Dam Lift and Xstrata’s Ernest Henry Tailings Evaporation Dam.
Industrea Managing Director and CEO Robin Levison said “We are seeing clear, positive signs of increasing demand for our fleet of heavy mining equipment from Australia’s resurgent mining sector as new projects continue to ramp up throughout the key regions IMS has an established presence in”.
“As a result, IMS fleet utilisation rate is strengthening with a corresponding tightening of equipment availability,” he said.
Mr Levison said “IMS was strongly positioned to capitalise on emerging mining contracting opportunities from Australia’s commodity fuelled economy”. He went on to say that “IMS was also in a position to further diversify both geographically and by commodity, having invested in new heavy mining vehicles in FY10 and the first half of FY11”.
Mr Levison said that “backed by one of Australia’s most up-to-date and well maintained fleets of heavy mine vehicles and equipment and a strong supporting infrastructure, IMS prospects for continued organic growth and sustained margins were the most favourable they had been for some time”.
Download this document
