Australia’s Austin Engineering is close to unlocking a significant new market after receiving purchase orders for 17 of its lightweight dump truck trays from a “tier one” iron ore producer in India.
The trays, which are being manufactured in Indonesia, are said to be worth about A$2.7 million.
Perth stockbroker Shaw and Partners said the Indian miner could need up to 165 trays worth circa-$26 million over four years at its iron ore and coal mines.
The initial orders were Austin’s “first substantial orders from India and mark the commencement of a new market opportunity for ANG”, Shaw said.
The manufacturer said there was no guarantee of follow-up orders in India.
It said delivery of the 17 units would start in March next year.
“The purchase orders follow the successful trial and evaluation of four customised ULTIMA truck trays purchased from Austin in 2023, which specifically focused on the tray’s payload benefits,” Austin said.
“Over the testing phase Austin was able to increase payload and reduce maintenance overhaul periods of the trays by using its considerable knowledge base working in the Pilbara region of Western Australia where the ULTIMA tray has been so successful in iron ore mining.”
Austin has appointed a full-time representative in India to oversee the current contract and to progress business development in the country.
“India is the world’s fourth largest producer of iron ore, and one of the world’s largest and fastest growing economies,” it said.
“Austin sees strong potential for future market opportunities for its products in India.”
ASX-listed Austin has a current market value of about $313 million. Its share price is down about 10% in the past six months.
