Industrea has signed a contract with Shanxi Asian American Daning Energy Co. (SAADEC) worth A$2 million. SAADEC is acquiring additional underground directional drilling equipment supplied by Industrea subsidiary Wadam Industries for Daning Coal Mine, Shanxi Province. SAADEC is now the longest user of Australian-built underground directional drilling equipment and the Daning mine is using Industrea’s Advanced Mining Technologies Drilling Guidance System (AMT DGS) methane gas drainage equipment, which has become the industry standard in China in boosting mine safety.
Industrea Managing Director and CEO, Robin Levison, said the contract win was the fourth sale over the past six years to SAADEC demonstrating the company’s strong reputation and market leadership in the expanding Chinese underground coal industry. “SAADEC was the first user of this technology, and their confidence in its capacity to boost mining safety and productivity is demonstrated by this new order,” Levison said.
“Many other Chinese coal miners have visited the mine over the past six years to see first-hand the benefits of this equipment, leading to continued orders from across the country for the drilling systems.” Levison said the mine had also demonstrated the effectiveness of Industrea’s methane gas drainage equipment, with the AMT DGS system now having become the industry standard in China.
“The Daning mine has been a role model for other Chinese coal mines in successfully removing very high methane gas content from its coal seam, and the effective drainage of this potentially dangerous gas has had an enormous benefit in improving mine safety. The Chinese Government’s new tax on coal to fund the purchase of safety equipment shows their determination to improve standards. Industrea is very proud to be able to make a key contribution, given the rapid growth of the Chinese underground coal industry and the safety threat posed by methane gas.”
Located near Jincheng, approximately 580 km southwest of Beijing, the Daning mine is unique as the first foreign-invested coal mining joint venture in the history of the People’s Republic of China. Asian American Coal (AACI) holds a 56% equity stake in the joint venture and operates the mine using the latest in international equipment and technology to maximise safety, production and efficiency.
In 2007, the mine produced over 3 Mt of coal, with a long-term plan to produce an average of 6 Mt/y of coal.
