new contract won. more growth expected

Australia's main testing, certification, condition monitoring and fluid power services provider CCI Holdings (CHL) yesterday announced it has won a 2 year $400,000 pa contract to provide condition monitoring services to PWCS (the world's largest coal loading port at Newcastle). The contract is to provide services which will monitor the condition of various types of critical machinery operating at the port.

CCI Pope has provided this type of service to BMA (BHP Mitsubishi Alliance) in QLD at their mining sites and loading facility at Hay Point. Obviously this type of service enables the owners of these loading ports to minimize the downtime necessary to maintain critical items of plant such as stackers, reclaimers, coal loaders etc. and thus increase the efficiency and output of these ports. The savings made by these port operators is making the service provided by CCI Pope a very valuable one, and the company is experiencing strong growth in the demand for condition monitoring work from large industry and mining clients outside the coal sector also.

Another part of CCI Holdings business doing very well is it's Environmental testing services. At present this business is a part of CCI Australia the coal testing and certification specialist, but plans are now in place to make the Environmental service a stand alone business with large growth occurring as statutory requirements for mining company's to perform various types of mandatory environmental tests come into effect.

The CCI Holdings business will soon have 4 arms in Australia.

CCI Australia (Coal testing at the eploration and production stages, along with certification testing at export ports)

CCI Pope (Non destructive testing, condition monitoring, failure analysis, structural analysis, metallurgical testing, weld integrity testing, ultrasonic testing services)

CCI Fluid tech (Hydraulic services provider to mining power and smelting industry in Hunter Valley region.)

CCI Environmental services (The new proposed business currently operating under the umbrella of CCI Aust.) This arm will service noise levels, emmisons, dust, effluent etc under new mandatory laws requiring mining company's to measure these quantities at their sites.

The other CCI operating business outside Australia is CCI Ukraine which is a similar type of business to CCI Aust.

Also of note in yesterday's announcement was the opening of CCI Austalia's new bore core analysis facility at Newcastle. With the demand for coal currently exceeding supply, miners are working hard to expand production levels. This is requiring additional exploration work. CCI are experiencing strong demand for bore core analysis work and this state of the art facility will enable them to step up their services in this high growth area.

The fundamentals are looking extremely good for CHL as the company enters it's strategic 5 year plan. Not too many better LT investments available than CCI Holdings.