C O M P A N Y O V E R V I E W
UGM Australi
Cost-effective options f
CEO Paul Hartcher discusses the company’s re how it’s set to turn the coal sector on fire. Written by: Robert Spence Produced by: James Hayes
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for coal producers
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THE UGM GROUP
Night shot of mining operations
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he coal industry in Australia is seeing cost and production pressures and this belt-tightening has impacted upon the mining services sector, but one mining service company has used the buoyancy of the past to position itself to not only ride through current travails, but to continue the success of the past with additional, strategic, insector diversification. The Australia-based mining services company the UGM 81
January 2015
Group, which has a long history of specialized operational and advisory support and training to some of Australia’s largest mining companies, has acquired the ADDCAR Highwall Mining Technology from Arch Coal and the move for ADDCAR, from ownership by a coal producer to a contracting base (with Engineering and OEM capabilities) is seen as the appropriate melding of corporate focus and product delivery internationally.
MINING
ADDCAR UGM completed the acquisition of ADDCAR Technologies in February 2014 and the $21 million acquisition from Arch Coal gives UGM all licenses, patents and technology related to ADDCAR’s systems, including the manufacturing facility New Beginnings in Ashland, Kentucky. UGM currently Beginning in 1997 as a single service has four contract mining operations provider for underground mining, across the USA and Australia. the UGM Group has built a stout “Whilst we acquired ADDCAR from reputation for developing cost Arch Coal in 2014, we’ve been effective and reliable relationships involved in the technology since with clients. The company, which 2008, and I have been personally offers a comprehensive range of involved since 1996” said Hartcher. underground mining services, “The strategy we’ve put in place for specializes in engineering, plant ADDCAR is to not only incorporate and equipment hire, projects it into our contracting business but and construction, safety and to also educate the industry as to environmental management, and the possibilities this technology diesel services. offers to optimize resource Headquartered in Australia, the realization across the globe as this company also has a Corporate system is the most productive and Advisory arm, Engenicom, which the leader in resource recovery provides mining engineering, through the patented guidance resource assessment, environmental, system that keeps the entries in line safety and project management and in-seam services to mining related industries The new addition also adds to such as rail, power, port and of UGM’s commitment to not only course, coal mines. providing quality mining services, “We think there’s a grand opportunity for the ADDCAR technology, not just here in Australia and the traditional American market, but internationally as well” said Paul Hartcher, Managing Director of the UGM Group.
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THE UGM GROUP but innovating and implementing new ideas. “Whilst our underpinning business base is as a contractor, we have a strong tradition of focusing on innovation and we are excited about the opportunity this acquisition affords us to enhance the technology and broaden the applications”.
ADDCAR acquisition will serve as a means to introduce the product to the North American market and ever since the events surrounding the Sago mine disaster, removing conductivity corridors from roadways has became an imperative and this product delivers that outcome. Additional products such as the UGM Tow-Hitch, designed to be attached Innovation to LHD vehicles and remove the need UGM has developed the only nonfor operators to physically connect steel, FRAS (Fire Resistant Anti-Static) trailers, will also be marketed in the pipe for use in explosive atmospheres USA building upon UGM’s knowledge such as underground coal mines. The and experience in the underground mining sector. ADDCAR Innovation is well underway and despite the system being the only one that can mine greater than eight degrees and achieve 500 metres plunge depth, development is well • Mining • Fabrication underway to surpass the current PRECISION MANUFACTURED • Petroleum • Design PARTS, REPAIRS AND • Coal • Machining capability of sixteen degrees. FABRICATION FOR OVER 35 YEARS! Riggs Machine provides fabrication, repair and design services to the coal, steel, power and petroleum industries.
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Working With Glencore UGM signed a five year highwall mining contract with commodities giant Glencore earlier this year. The deal is expected to help Glencore produce one million tons of coal a year at its operation. The company’s ADDCAR System
MINING
equipment has completed its move from the Kentucky facility to Glencore’s Newlands Mine in the Bowen Basin. With operations due to commence later this year, the ADDCAR System is helping lead the resurgence of Highwall mining in Australia. The new system in Glencore’s operations will provide: • 90,000 tons per month consistently • Productivity: 27/30 ktonnes per employee year • Penetration: +500 meters • Seam heights: 0.9 meters – 8 meters
Company Information INDUSTRY
Mining Global HEADQUARTERS
Warners Bay, NSW Australia EMPLOYEES
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Future Endeavors The future is looking bright for the UGM Group. The company, which has an array of projects lined up, is gearing up to take its ADDCAR technology to the next level. “What attracted us to the ADDCAR system is we knew what it was, and we saw it as a technology that if taken by someone who knew it, it could be enhanced,” said Hartcher. “Since 1993 the system has mined roughly 100 million tons of coal. I don’t think people realize the potential of this technology.” Hartcher adds, “We’ll have five more systems operating in the next three years.” With the new system in place, UGM is working to bring the combination of ADDCAR and engineering to Australia’s coal industry.
PRODUCTS/ SERVICES
UGM Australia is a diversified professional services company supporting mining and related industries including ports, rail and power generation.
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UGM Australia Address 91 York St Teralba, NSW 2284 Australia Fax: +61 2 4941 7590 Tel: +61 2 49417500 enquiries@ugm.com.au http://www.ugm.com.au/