THE WOODLANDS, TEXAS - April 27, 2005 - Royal Equipment, Inc., a leading provider of warranted, remanufactured heavy equipment for the surface mining industry, today announced the sale of seventeen remanufactured 240-tonne haul trucks to PT Kaltim Prima Coal (KPC) a subsidiary of PT Bumi Resources. The sale originally started with Henry Walker Eltin Group Limited (HWE) but was completed with KPC after HWE's insolvency action in January. The fleet will be used to support coal mining at the Bengalon project in eastern Kalimantan Indonesia, a 10-year US$1.2 billion contract originally awarded to HWE in May 2004.
“With the increased global demand for minerals, the major mining operations are having difficulty acquiring heavy equipment in a reasonable time-frame,” stated David A. Kintigh, Chief Operating Officer for Royal Equipment. “Last year when the order was placed with us for remanufactured equipment, new equipment orders had lead times as long as two years, while our fleet of remanufactured trucks will be delivered in a fraction of the time and cost.”
Royal Equipment has been preparing the fleet for deployment with the first six trucks already delivered and in use by KPC in Indonesia. The use of remanufactured equipment allows companies to begin operations sooner than if they had to wait for new equipment, providing enhanced shareholder value. The remanufacturing process ensures all major components are either reconditioned to original equipment standards or replaced with new components and pass comprehensive testing prior to shipment.
Royal Equipment prides itself on extending the useful life of heavy equipment used in the surface mining industry. The fleet is being remanufactured in Western Australia with final field assembly and field testing being performed at the new government-owned Australian Marine Complex - Common User Facility located in Henderson, WA.
Released on April 27, 2005
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