Active Control :: Press - Active Control Sees Demand Rise

Tuesday, June 22, 2010
Active Control sees demand rise
Peter Koven, Financial Post,

When 29 people died in a tragic coal mine accident in West Virginia in April, the world was reminded that mining is a dangerous job, and workers need to have the best equipment at their disposal in tough underground conditions.

One small Canadian company is offering up just that.

Active Control Technology Inc. is slowly changing the world of underground mining communications by taking it in a logical direction that above-ground communications went in a long time ago: wireless.

The Burlington, Ont.-based company has developed Wi-Fi technology that can blanket underground operations and essentially keeps workers in contact with each other in different corners of the mine.

“Our backbone is completely wireless, which is unique,” says Cameron Sturgess , chief executive of the company.

In most U.S. coal mines, including the site of the West Virginia accident, mining companies rely on so-called “leaky feeder” cables to keep in contact. In that system, coaxial cable planted underground allows miners to keep in touch using walkie-talkies. However, these lines can easily be damaged in an accident, and the frequencies do not penetrate through rock very well.

“Given the disaster in West Virginia [in April], we are becoming top-of-mind, because we can reconnect with miners,” Mr. Sturgess says.

The turning point came in 2006, after the Sago mine disaster (also in West Virginia). The tragedy prompted the U.S. government to pass the Mine Improvement and New Emergency Response (MINER) Act, which forced U.S. coal mines to improve their underground communications systems.

That created an entry point for Active Control, which quickly developed its ActiveMine underground wireless technology. The company’s technology is now being used in 10 U.S. coal mines. With roughly 600 of them in total (not to mention more than 2,000 in China), there is plenty of room to grow.

Active Control is also able to grow its business in individual mines over time, as a bigger network is needed as the mine expands.

The company grew into a stock market darling in 2007 and 2008, but then crashed after it over-promised on how quickly its technology would spread. Under a new management team led by Mr. Sturgess, it is now working through backlog and bidding on new business.

Financial Post