MINOPEX

MINOP E X M O Z AMB I Q U E

Achieving client satisfaction through turnkey services www.minopex.co.za

ame M I N O P E X

M O Z A M B I Q U E

Commodity Perfectly Placed for the

Boom Minopex has built a concerted presence in Mozambique over the past four years to be the best positioned player in a dormant minerals market on the brink of more lucrative times to come Writer: Matthew Staff • Project Manager: Arron Rampling

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inopex has worked tirelessly to replicate its well-established South African operations in Mozambique over the past four years and is now in a prime position to capitalise on a future boom in the commodity market in the country.

Invited into its initial operation in the East African nation in 2011, the mining operations and maintenance contractor has since leveraged and duplicated the vast expertise and industry knowledge across the full range of mineral processing activities to now be the leading player in Mozambique; stealing a march on any prospective competitors looking to enter the rapidly developing country in years to come.

Since being chosen by Jindal Steel and Power to carry out operations and maintenance at its Chirodzi plant, Minopex Mozambique has gone from

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strength to strength through the attraction and application of its full turnkey offering.

The Company’s Managing Director, Dave Spottiswoode says: “The move into Mozambique was a general move from our owners, Minopex South Africa, with it necessary for the Company to expand across borders.

“Our turnkey approach has been very successful across the Group because it saves the clients on capital, with us essentially doing the dirty work for them. The only aspect the clients own and need to bring to the project is the plant itself.”

The remaining elements taken care of within the Minopex service comprises the personnel from top to bottom and all technical equipment, all the way to office furniture, vehicles, IT software and major tools needed to fulfil the requirements of the plant.

Across the wider Group, Minopex is equipped to run plants processing the

full host of minerals; from diamond, chrome, platinum and gold, to coal which is the sole commodity being catered for within Mozambique at present.

“The world’s commodity market isn’t great at the moment, and things are tight in Mozambique, but what we have done is position ourselves for the next couple of years for when things get better and take off in a rather big way,” Spottiswoode continues. “We’ve set ourselves up; we’ve got the vehicles, the people, the accommodation, and everything else required within Mozambique.

“We’re there, and now we’re just waiting for the boom.”

Versatile offering

The turnkey philosophy which has been so integral to Minopex’s growth over the years is epitomised by the Group’s initial rise in South Africa between 1996 and 2012; by which

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point the Company was carrying out operations and maintenance across 27 plants for some of the industry’s most well-reputed businesses.

“Ranging from diamonds, platinum, gold, coal and chrome - basically any metal or mineral - we have the ability to get involved in it. This became a very popular model quite quickly because the bigger we became, the more versatile we became as well.”

This versatility enables Minopex to pull upon expertise, equipment and capacity from adjacent plants, while keeping more administrative processes centralised to achieve an ideal balance from which to expand and remain entrepreneurial and flexible.

“This flexibility was something we were moving away from in South Africa purely because of the size we had grown to,” Spottiswoode says.

“My belief is that every operation is different and every client is different,

27 plants Operations and maintenance carried out for its clients between 1996 and 2012

and my idea is to run the Company as a silo type of operation with each plant running exactly according to the client’s specifications.

“If the client wants us to supply the vehicles then we will, but if they prefer to supply their own, then we won’t.

The same goes for the purchasing of consumables or raw materials, for example.

“We’re extremely versatile and open in our offerings, and willing to tailor our operations to each client’s requirements within their plants.”

Track record

With the all-encompassing, yet customisable, approach that Minopex has honed and refined over the years still a niche attribute in the industry at large, the reputation that has been formed within the sector has been comprehensively positive, and has laid the groundwork for all current and future contracts being attained.

“When discussing big contracts, we are able to state confidently that we can perform to the highest standards because we have the track record proven throughout our other operations. Essentially we can display that we do what is required better than the client could do it themselves,” Spottiswoode states.

This track record is equally impressive from an all-important health and safety perspective with no

LINTEC ENGINEERING

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stablished in 1987 in Johannesburg, South Africa, Lintec Engineering has long been providing wear solutions for bulk materials handling.

The founder, Eric Olsen, has been involved with wear-resistant materials such as ceramics, carbides and hard metals since 1969. He was responsible for the first alumina ceramic lined pipes in England, Australia and South Africa. It was with this knowledge that Lintec Engineering was formed and Eric remains a director and shareholder of Lintec Engineering.

Lintec Engineering’s core focus is to protect its customer’s plant from excessive wear.

Wear, problematic in bulk materials handling, causes high maintenance costs and unnecessary downtime resulting in lost revenue. Lintec wear resistant applications will reduce maintenance costs and downtime, and increase plant performance. Lintec selects the best lining materials for the application parameters and the client’s budget, thereby creating invaluable benefit for customers.

Lintec Engineering provides wear solutions to a range of industries and the company has since grown its customer base to include the likes of BHP Billiton, Implats, Glencore, De Beers, Anglo and Sasol as well as many OEMs, consultants and project houses.

Lintec proudly supplies wear linings to Minopex.

T +27 (0)11 708 1037 F +27 (0)86 6458360 E info@lintec-engineering.com

www.lintec-engineering.com

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Protecting Plants from Wear since 1987

Proud supplier of wear resistant linings to Minopex

SPECIALISTS IN WEAR RESISTANT PRODUCTS & APPLICATIONS Lintec Engineering manufactures customised wear linings designed for specific plant parameters.

Lintec is an ISO 9001:2008 registered firm which offers superior service and strict quality control of wear products and manufacturing. The senior staff at Lintec Engineering have over 80 years combined knowledge of wear protection, this with the skilled and experienced artisans offers customers cost effective results and reduced downtime.

Lintec wear resistant materials include: Alumina and other Oxide Bonded Ceramics; Carbides; Basalt; Concretes; Chrome Iron; Hard-Facing; Lingrids; Linpact Panels and Linrods.

Lintec Engineering offers complete turnkey services for Wear Protection, from: consultation; design; planning; fabrication; installation of wear linings; delivery; testing and guarantee.

Tel: +27 (0)11 708 1037 Fax: +27 (0)86 648 8360 E-mail: info@lintec-engineering.com www.lintec-engineering.com

M I N O P E X

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KKa KKa is based in Johannesburg, South Africa.

We are a boutique multi-disciplinary practice specialising in mining, general commercial, mergers and acquisitions and insolvency matters and have a strong team of litigation, dispute resolution and labour specialists to compliment this offering.

Our attorneys have spent years in the “Big Firm” working environment. We are a youthful and dynamic team which enthusiastically provides our clients with technically sound, efficient and affordable legal advice. The quality of service and expertise we offer is uniquely tailored for corporates looking for the “Big Firm” quality at affordable rates.

Facing challenge head-on to expand the Company footprint

lost-time injuries reported across its tenure in Mozambique; Spottiswoode emphasising this element and the safety of Minopex’s employees as “the driving force behind operations, and first and foremost in carrying out processes”.

As a consequence, Minopex is also at the forefront of potential clients’ minds, including, most recently, Vale.

Having completed short-term periods of operation for the globally-renowned organisation in recent years, the two businesses are now looking at a potentially longer term partnership.

“It is an owner-operated plant which they have asked us to come into over the past three years for commissioning and training of their people,” Spottiswoode explains.

“They’ve seen us come in and make massive improvements for six-nine month periods, and have also seen those improvements fade away when we’re gone, so for them to look at us to operate their plant moving forward is major because it is by far the biggest operation in Mozambique.”

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T +27 11 483 0966

www.kkalaw.co.za

Localisation

Expanding the footprint into Mozambique hasn’t been exclusively challenge-free despite the leveraging of the Company’s South African experience and unrivalled regional reputation, with skills shortages in the still maturing Mozambique a problem which Minopex has had to resolve internally.

An extensive localisation strategy has been integral in developing national levels of expertise, with the overall aim of reducing the amount of expatriates working within the business.

Spottiswoode notes: “It is not only of primary importance in order to develop the locals within the country, but also in reducing the amount of capital going towards expats and all the salaries, accommodation and travel costs that come with them.

“So, both in terms of costs and what we needed to do for the benefit of the country, we have an extensive localisation strategy which we have been running for three years now, and we have now got to the stage where

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we are virtually only reliant on local artisans that we’ve trained ourselves.”

Having established such a foothold in Mozambique before the real industry boom has even taken place leaves Minopex in a commanding position moving forward with any new entries to the market having to play catch-up and build a reputation from scratch.

It also fulfils the more concerted, overriding philosophy of utilising local resources which can similarly be seen throughout its supply chain where possible, and through the Company’s adherence to CSR in the surrounding communities.

Advanced services

Regardless of the dominant market position that Minopex enjoys within Mozambique, the Company still refuses to rest on its laurels, continuously looking for new opportunities to improve its current operations, as well as looking for new

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www.kkalaw.co.za T: +27 11 483 0966 65 Central Street Houghton Johannesburg, Gauteng South Africa

plants to operate within.

“We’re always on the lookout for new plants but things are constrained in Mozambique at this moment in time so we have moved out of our normal operations and maintenance practices to diversify in the country,” Spottiswoode says.

The result is a separate company having been formed called Ensermo (Engineering Services Mozambique)

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Litigation Corporate and Commercial Conveyancing and Notarial Alternative Dispute Resolution

which has been $2.5 million in the making and consists of a specialised engineering unit.

The Managing Director explains: “In South Africa, there are usually specialist engineers local to your operations, but there are none of those advanced services available here in Mozambique, so we took the decision, based on us planning to be here for a long time, to build a fully

Minopex will continue to look for new opportunities to further improve its standing

integrated workshop in the Tete area at our own cost.”

Already coming into its own in carrying out major overhauls, motor rewinds, pipe installations, steel fabrications and analysis activities, the recently commissioned addition to the Minopex portfolio is a niche which has already brought the Company a lot of business as it looks towards the next stage of its development in Mozambique.

Spottiswoode concludes: “Moving forward, we will remain totally focused on our clients and their needs and will continue to bend over backwards to do what they want and require.

“We have training programmes in place to attract the right people in order to do this as efficiently as possible and, as we’ve proved in the past, we believe we can operate the plants more efficiently than the owners themselves.”

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MINOPEX (PTY) LTD Ground Floor Building 7, Pinewood Office Park 33 Rile Road, Woodmead 2196, South Africa T: +27 11 785 7000 • F: +27 11 234 6311 E: minopex@minopex.co.za

www.minopex.co.za