Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Global mining products and services provider Industrea Limited (ASX:IDL) through its China-based subsidiary Wadam Industries has signed a $2.7m contract for the supply of two Industrea Mining Equipment (IME) 50 tonne longwall roof support carriers and associated spares. The contract is with a new Chinese customer, Baoji Qinyuan Coal Industry Co. Ltd., for its underground coal mine in Shaanxi Province.
Industrea Managing Director and CEO, Robin Levison, said the order from Baoji Qinyuan Coal was part of the continuing trend of the closure and consolidation of small coal mines leading to the creation of new customers with the financial capacity and willingness to buy Industrea’s premium safety and productivity products.
“Our ability to continue winning these types of contracts with new customers against strong competition is testament to the superior design and quality of our offering coupled with our growing support capability in China through our product support centre.”
According to China’s State Council it expects 8,000 small coalmines with a total output capacity of 200 million tonnes would be closed or aggregated by the end of 2010 as part of its ongoing push to eliminate inefficient production facilities.
