SOUTH AFRICAN SUPPLIERS
“ We estimate that chutes are responsible for up to 50 % of plant downtime ,” Weba Chute Systems MD , Mark Baller , says . “ Many mining companies are starting to realise this and are approaching us to provide properly engineered chutes and transfer points ”
drive items and – more recently – some steel sections .
“ Our manufacturing costs here in South Africa are low by global standards and our exports also benefit from the fact that South Africa ’ s currency , the Rand , is very weak ,” he said . “ The result is that our machines are very competitively priced .”
Southern Africa remains Kwatani ’ s traditional “ stomping ground ” and continues to represent a major growth area for the company .
“ We have some excellent orders under our belt , including one for a very big mining project in the Democratic Republic of the Congo ( DRC ), and we are expecting a further 10 orders from customers in the region to be signed in the short term ,” Schoepflin said .
He also sees opportunities developing in several countries , including Morocco , Eritrea , Ethiopia and – further afield – Central Asia , Europe and the Americas .
With the mining-related business of Schenck Process Group also now incorporated into Sandvik Rock Processing Solutions , Schoepflin expects Kwatani to start working side-by-side with Schenck in Australia and elsewhere on screening orders , offering up another potential growth market .
Counting on custom chutes
The DRC has played a role in a new business resurgence , post-COVID , for Weba Chute Systems , Managing Director , Mark Baller , says . The company , a provider of tailored chute systems , experienced a lower level of demand in 2020 and 2021 as a result of the pandemic , with the recent bounce back tied to orders in the southern African region , including South Africa and its neighbouring states , plus Zambia and the DRC .
Southern Africa , specifically , makes up over 80 % of group revenues for the company .
“ Overseas demand for our chute systems remains subdued and , at this stage , has not recovered to pre-pandemic levels ,” Baller said . “ Having said this , we have been encouraged by a number of enquiries received in the past few months from existing or potential international customers , some of them from countries where we have never worked before such as Italy , the Dominican Republic and Trinidad and Tobago .”
The enquiry from the Dominican Republic has already translated into a contract , according to Baller , with the other enquiries also looking “ extremely promising ”.
Weba ’ s business often tracks the sentiment towards mining , with orders rising when commodities are in demand and falling when they are out of favour .
More generally , Baller says mining companies are increasingly appreciating the importance of good chute design and robust chute construction .
“ We estimate that chutes are responsible for up to 50 % of plant downtime ,” Baller said . “ Many mining companies are starting to realise this and are approaching us to provide properly engineered chutes and transfer points .”
Benefiting from a mainly domestic supply chain for its chutes , Weba says it can supply fitfor-purpose solutions promptly to customers across Africa .
“ I also believe that , on fabricated steel , South Africa is at the lower end of the cost curve ,” Baller said , translating to favourable prices compared with competitor chutes from other countries .
Most of the demand for its products are tied to new capital projects or extensions of existing mines and plants , with Baller singling out West Africa – thanks to the rising gold sector – and
Turkey as two key markets outside of southern Africa .
“ We already have an agent in Ghana , so we are well placed to bid for and execute projects in this region ( West Africa ),” he said . “ Overseas , we regard Turkey as an excellent market and recent contracts there have included custom-engineered chute systems for a sinter plant and for a gold mine expansion .”
North America – USA and Canada – are also focus areas for Weba , as is Australia , where it has representation that has led to some successful installations and a significant amount of maintenance work , according to Baller .
Promotion bears OEM fruit
Efficient Engineering , a specialist fabrication company , is currently enjoying the best year in its more than 50-year history , according to Craig Davidovics , Division Head – Mining and Earthmoving Products .
This upturn in business is being experienced in South Africa , the wider African market , as well as the overseas market , according to Davidovics , explaining almost all the company ’ s work comes
Almost all Efficient Engineering ’ s work comes through OEMs who manufacture large mining and earthmoving machinery as well as equipment for minerals processing and materials handling
JANUARY 2023 | International Mining