WDS Limitied is a leading provider of specialist services to the underground coal mining industry and an experienced provider of pipeline construction and maintenance services in Australia. The Group combines specialist labour, equipment, risk management processes and management expertise to provide a diverse range of underground coal mining and oil, gas and water pipeline construction services. The Group’s expertise is complemented by its fleet of specialist mining, tunnelling and pipeline construction equipment, including the largest contractor-owned continuous miner fleet in Australia. Services are provided primarily via two wholly owned operating subsidiaries: Walter Mining and Diversified Construction Corporation.

WDS’ business model is based on the provision of a diverse range of mining and pipeline services by combining its four core competencies:

People

• a highly trained workforce of over 800 staff, proactively managed to work safely and efficiently;

Plant and Equipment

• specialist mining, tunnelling and pipeline construction equipment with a replacement value in excess of $60 million;

Management

• a dedicated, professional and experienced management team, supported by a number of integrated systems to deliver projects in a safe, timely and cost-efficient manner; and

Risk Management

• highly developed risk management processes to identify risks and opportunities at an early stage of project development.

WDS believes its competitive advantage lies in its experience in combining all of these core competencies to provide professionally managed services which integrate with the customer’s existing operations. This is demonstrated by the long-term, relationship based contracts which the Group has established with a number of leading blue-chip coal mining and oil and gas companies in Australia.

The Directors believe WDS is well positioned to benefit from the expected growth in demand for mining services and energy distribution systems resulting from continuing global demand for commodities and energy and the industry trend towards outsourcing. WDS aims to consolidate its position in the underground coal mining services industry and expand its operations in the pipeline construction services industry. The Group also has the equipment and expertise to increase the range of services provided to adjacent sectors. Such sectors include the metalliferous mining sector, where the Group is currently providing limited services, and the infrastructure tunnelling industry.