Plant Equipment and Hire October 2019 | Page 20

ON SITE Operating in a challenging environment But it has not all been plain sailing for AST, as they entered the market at a time when the South African economy was constrained, and the construction market entering into a recession. A big challenge in the area is the illegal mining of sand, for which the Department of Mineral Resources (DMR) is actively working to prevent. Blackmore says that the company has lost quite a bit of revenue because of these illegal operations. The company believes that the solution to this problem is to prosecute the buyers of the illegally mined products, who, if fined or imprisoned and held responsible for purchasing illegal products, would prevent the material from entering the formal sector. This would go a long way to assisting the DMR in curbing and controlling these illegal activities. Another challenge, he says, is the administrative procedure for permits and licenses. “It takes a long time to get a blasting license and we wasted a lot of time mining mechanically before we carried out our first blast. If I could do it again, I would apply for the blasting license from the outset,” says Blackmore. There has also been a considerable slowdown in the South African construction sector across the board in the last three years, which has impacted the purchasing power of the smaller businesses and offtakers. Blackmore says that the increase in the cost of diesel has further contributed to lower margins. The mine is powered by a 225KVA generator which runs the wet screen (washing plant). Blackmore says that the local Eskom transformer was stolen about two years ago and was never replaced. “We have applied for a reinstallation but we believe that currently the cost is prohibitively high, effectively excluding small mining operations from being able to access electrical supplies,” he says. Advice for small scale miners So, having been a small scale miner in South Africa for more than four years, what would Blackmore’s advice be to budding entrepreneurs in the South African mining industry? AST didn’t buy their equipment directly from OEMs, but rather converted used equipment into the very effective fleet keeping the mine going today. However, Blackmore says it might be worth investing in service contracts with OEMs, although it might be more costly than maintaining the fleet in-house. “Most importantly though, is to have the means to weather an economic storm like the one we are currenlty experiencing,” he concludes. Oliver Blackmore, general manager at Van Dykspruit. 18 OCTOBER 2019 www.equipmentandhire.co.za