ON SITE
W
hile the construction sector
in South Africa has failed
to provide the necessary
impetus to revitalise a tired
economy, the mining industry can, at
least, give plant and equipment owners
some reason to smile.
Although foreign investors continue
showing scant interest in the country’s
geological endowment, and despite a
serious dearth of greenfield exploration
projects, there have been enough
crumbs to keep OEMs and hire
companies ticking.
A few new projects are in the pipeline
though, and are expected to come online
soon. The biggest of these are Ivanplats’
The Angolan Minister of Mineral Resources, Diamantino Azevedo has called on
especially African plant and equipment suppliers to set up shop in Angola.
Platreef platinum project in the Limpopo
Province and Platinum Group Metals’
Waterberg project, also on the northern
limb of the Bushveld Igneous Complex.
Furthermore, Orion Minerals’ Prieska
zinc-copper project in the Northern Cape
is creating some opportunities although
production is still a way off, while
Vedanta’s Gamsberg zinc mine, near
Aggeneys, also in the Northern Cape, is in
full operation.
In addition, there are a few coal
mining companies looking at expansions
and developing new mines, with Canyon
Coal, Wescoal and Black Royalty Minerals
leading the charge, while rumour has it
that Australian outfit Resgen’s Boikarabelo
coal mine in the Waterberg, also in the
Limpopo Province, is on track to deliver
the first coal early in 2022. That project
might generate some new opportunities
for contractors. With three projects in
Limpopo, it seems the northern reaches
of South Africa might be the place to be in
the next two to three years.
Outlook for SA remains subdued
A buoyant platinum, palladium and gold
price has put companies like Sibanye-
Stillwater, Harmony Gold, Gold Fields and
DRD Gold on steady ground, and might
www.equipmentandhire.co.za
loosen up some capital for exploration
or expansion projects. Other than that,
the outlook for the South African mining
industry remained subdued at this year’s
2020 Investing in African Mining Indaba. In
fact, the electricity crisis has constrained
growth, and in the equipment space there
is not much to get excited about in terms
of large-scale mining projects that could
kickstart additional infrastructure build
around it.
The energy space, nevertheless, is
something Plant and Equipment owners
should keep an eye on. Construction of
renewable projects will create the need
for additional infrastructure as many of
these sites are in remote regions of the
country. However, what became clear at
Indaba, was that most opportunities for
South African companies lie north the
country’s border, in other high growth
regions of Africa. Every equipment owner
that has operated in Africa, are aware the
huge challenges these countries present,
but in a stagnant South African economy,
they may not have a choice. Apart from
new, emerging contractors that can keep
the pot cooking, there are hardly any
multinational construction companies
active in South Africa, and it might be
worth the risk to look north.
APRIL 2020
11