Industrea's Mining Services division capitalised on Australia's resurgent mining sector to increase revenue 31% to $169.1 million, and EBITA up 13% to $38.2 million.

Organic growth was achieved through the expansion of works at Lady Annie and at a majority of the major mine sites we hold contracts with.

The major contracts in place during FY 2011 were with:

• Rio Tinto – Mt Thorley Warkworth mine, Hunter Valley: hire and maintenance of heavy mining equipment.
• Cockatoo Coal – Baralaba Mine, Moura: integrated contracting services.
• Xstrata – Blackstar/Handlebar Hill, Mt Isa: full range of contracting services.
• CST Minerals - Lady Annie Mine: hire and maintenance of heavy mining equipment.

We anticipate these four major contracts will generate around $200 million in combined revenue in FY 2012.

The adverse weather experienced throughout central Queensland late in the first half resulted in flooding of Cockatoo Coal's Baralaba mine, and operations at the site being temporarily suspended. Remedial and mining works had recommenced at the Baralaba mine site by the end of the financial year, and we expect production will progressively ramp up in the first half of FY 2012.

Australia's mining sector is increasingly committing to new, major capital expenditure, with numerous greenfield projects planned for roll-out and existing projects earmarked for expansion throughout the key regions our Mining Services division currently services. Indicative of this renewed capital commitment, was the announcement in July 2011 by Xstrata Zinc to have its planned $230 million Lady Loretta silver- lead-zinc deposit operational by the end of 2013 and Rio Tinto's plans at Mt Thorley Warkworth to increase production from 9.8 million tonnes per annum to 20 million tonnes by 2013.

Our investment in new heavy mining vehicles in FY 2010 and the first half of FY 2011 means we are well positioned to capitalise on the growth opportunities which will continue to unfold in the current financial year, and to further diversify our operations both geographically and by commodity.

In July 2011 our existing contract with CST Mining Group for heavy equipment hire and maintenance for the Lady Annie copper mine near Mt Isa, was extended for an additional period of 12 months, representing incremental annual revenue of $14.4 million.

Additionally, two new contracts were executed in July 2011 with BHP Cannington's Tailings Dam Lift and Xstrata's Ernest Henry Tailings Evaporation Dam, which are expected to add $7 million per annum in revenue.

We are confident of sustaining robust organic growth throughout FY 2012 and further improving margins for the business on the back of strong utilisation rates across our heavy equipment fleet.

Our investment in new heavy mining vehicles in FY 2010 and the first half of FY 2011 means we are well positioned to capitalise on the growth opportunities which will continue to unfold in the current financial year, and to further diversify our operations both geographically and by commodity.

Back to Top