Australia’s Cockatoo Coal has awarded a A$30m services contract to Industrea subsidiary, Huddy’s Mining Services, for its Baralaba coal mine in Queensland.

Huddy, which was acquired by Industrea in 2008, will provide a fully integrated range of services including equipment, maintenance and support as well as drilling and blasting, Industrea said.

Industrea managing director and CEO Robin Levison said the deal shows Huddy’s diversification into new markets outside its strong base in Mount Isa.

“Since our acquisition of Huddy’s last year we have successfully exploited synergies with the Industrea group by expanding into new areas for Huddy’s such as the coal industry, winning new contracts with Rio Tinto Coal in the Hunter Valley and Bowen Basin,” Levison said.

The term of the contract is 18 months and can be extended by another 18 months.

The Baralaba mine produces 300,000t each year of coal and Cockatoo plans to increase production by 60,000t a month during the next 24 to 36 months, Cockatoo Coal managing director Mark Lochtenberg said.

“We see Huddy’s as the perfect partner in our growth plans, as it has an excellent fit with our people and product offering. Huddy’s has all the latest equipment and a strong safety record, with a competitive cost structure for the current economic environment,” Lochtenberg said.