Page 1






Economic Take-off

INDEX TO ADVERTISERS African Materials Handling


AJM Engineering

36, 37



Becker Mining








24 - 26

Clyde Bergemann DG Materials Handling Dunop/Rema Tip Top Dymot Engineering

IBC 12,13 16 18, 19

Edward Searle







28, 29

Martin Engineering Morris Osborn Ports of Africa Scania


OFC, 8, 9, 11, 35 42, 43 41 4-7



TAC Holdings



32, 33

Tshwane East





s publishers of the monthly magazine “Bulk Handling Today”, which is distributed primarily in South Africa, it is becoming increasingly apparent that many companies are already doing work in the rest of Africa. If not, they are intending to do so in the near future. We have put together this Guide Susan Custers showcasing the products and services of top South African companies doing work in Africa. This publication was launched at the Mining Indaba (held early February in Cape Town), it is being mailed to the monthly readership of “Bulk Handling Today” and will also enjoy a wide readership in print and electronically as we distribute it to mining houses, trade commissions etc in Africa and internationally. Keep this guide in your desk drawer – it’s going to be of invaluable help as you grow your business. Or check out where you’ll find all the details on our website. Happy and fruitful reading! Susan Custers, Publisher

Copyright All material published in this guide is copyrighted to Promech Publishing cc. No part of the material may be quoted, photocopied, reproduced or stored electronically without prior written permission.

Proprietor and Publisher: PROMECH PUBLISHING Tel: (011) 781-1401 Fax: (011) 781-1403 E-mail: Website: Managing Editor: Susan Custers Advertising Sales: Surita Marx DTP:

Zinobia Docrat/ Donovan Vadivalu

Disclaimer Neither PROMECH Publishing nor its endorsing bodies will be held responsible for any errors or omissions in this publication and no responsibility will be borne by the publisher for the consequences of any actions based on information so published by Promech Publishing cc. Printed by: Typo Colour Printing Tel: (011) 402-3468

All the magazines shown below can be viewed in full at no charge on our website



Fit for hard work. Fit for tough business. Designed to provide you with all you need to reliably move your business ahead the most challenging conditions. Great torque. Extraordinary traction. Outstanding power. And Scania’s renowned robustness and serviceability.

For more information contact your nearest Dealer. Details available on


BULK HANDLING IN Trucks AFRICA / 2013 Buses / Engines / Finance & Insurance / Services

Right Trucks for Mining Mining operations on the continent can save 50% on fuel bills and about 30% on overall running costs of their mining truck fleets by investing in purpose-built mining trucks developed by Scania.


n many instances articulated dump trucks (ADTs) are used to haul material from mines even where the application does not require the off-road ability of ADTs. Where reasonable haul roads do exist, Scania’s range of Griffin haul trucks offers a cost-effective alternative that is both cheaper to purchase as well as operate. These trucks have purpose-built chassis, suspension and loading parts to ensure longevity and reliability. In comparison to their all-terrain cousins, they are easy to maintain as well as service in the field or workshop. Parts and spares are readily available through Scania’s large dealer network on the continent.

Heavy metal

“Mine owners who are used to operating ADTs on their mines are usually sceptical of Griffin’s abilities because of their similarity to construction vehicles rather than mine trucks. But once we demonstrate what the trucks can do, they start to sit up and

take notice,” says Chris Swanepoel, Scania area sales executive for the mining division. His responsibilities extend throughout Scania’s Africa territory and cover all the major mining areas within the sub-Saharan African region. Since the launch of the Griffin, he and his team have undertaken a whirlwind demonstration tour of the continent and introduced the trucks to various mines that have applications suitable for Scania Griffin trucks. “During the past year we concentrated our efforts on introducing the range of mining trucks to prospective customers. We also wanted to illustrate that hauling is all about moving loads effectively and economically. In applications where haul roads are reasonably well maintained and especially where hauls are greater than 2km, the efficiency of our rigid trucks is far superior to ADTs and should be considered when establishing or upgrading fleets. The days of a mine truck only being available in yellow with giant oversize wheels and a costly maintenance crews in tow are over,” Chris asserts.

Right for the job

He explains that mine owners and operators should make use of the right equipment for a given job. ADTs are purpose built for harsh off-road and slip-

Scania Griffin can operate in rough pit and quarry conditions



“We have learned from every visit to every mine in Africa. As a result we have developed solutions for nearly every job on the mines and designed vehicles that fulfil the requirements of both the application at hand, as well as regulations such as safety, health and environment,” Chris explains.

Sales streaming in

Demonstrations are continuing across the continent with dedicated vehicles based in South Africa, Zimbabwe, Zambia and Botswana. As a result sales have already flooded in with dozens more enquiries being attended to.

A vehicle for carrying people in tough mine conditions

pery environments and are unbeatable in this type of terrain. On the other hand, equivalent size (40 tons) rigid trucks from Scania are more suitable for longer hauls on semi-maintained roads. In the past, mines were forced to make use of giant rigid mining trucks, ADTs or pick-ups for small transport jobs around the mine. Scania’s crew prefer to introduce purpose-built vehicles for the right jobs at hand. Chassis cab configurations for different sized trucks have been introduced especially for the mines and are suitable for worker transportation, water bogeys, maintenance crews and a wide variety of other tasks on mines.

Scania’s purpose built water bogeys



“We expect to begin seeing the fruit of our efforts this year and are already aware of a number of mining houses that have worked our truck’s specifications into their upcoming tenders. We are also working closely with a number of start-up operations to ascertain suitability for their new operations. “With a strong proposition like ours we are confident we will capture significant market share in the near future. By simply adapting fleets to make use of the right equipment for the job we are saving customers $100 000 on the purchase price of a new truck, 30% on running costs and 50% on fuel. That is a proposition that is just too good to ignore,” says Chris in conclusion. Scania South Africa, Chris Swanepoel, Tel: (011) 661 9600, Email:,


Service Excellence

Scania builds some of the finest trucks, buses and engines in the world. Then we back them up with services that deliver value, reliability and high uptime - giving you an excellent return on your investment. Scania services help you grow your business and keep it moving forward.

For more information contact your nearest Dealer. Details available on







Finance & Insurance


Parts & Services





Mergers & Acquisitions “Strong balance sheets, favourable long-term fundamentals and lower valuations are creating an attractive environment for cautious Mining M&A deals in African countries. We do not expect to see a big jump in the level of deal activity but momentum is certainly picking up,” says Ernst & Young’s global mining & metals transaction leader, Lee Downham.


acro economic issues and resource nationalism are making decisions difficult, so this means deals are taking a lot longer.

Lee Downham

Lee says opportunistic and “one chance” deals, as well as ongoing domestic consolidation will continue, with an increasing focus on minority holdings and joint venture investments by large producers.

During the first six months of 2012, low volumes of outbound and intra-Africa deals continued. By contrast, inbound investment doubled as foreign investors completed 47 deals to acquire African ventures. “Foreign Wickus Botha investors continues to show interest in the richness of Africa’s mineral endowment and are investing in it much more aggressively than African based companies are,” says Wickus Botha, Africa mining and metals leader for Ernst & Young. “African mining assets continues to attract significant interest, but African based mining companies

are finding it increasingly difficult to participate in the highly competitive M&A market.”

Capital raising & financing

Total capital raised for H1 2012 was down 35% to US$123 billion compared with the same period in 2011, with the volume of issues down 16%. The number of companies raising capital has nearly halved, combined with a marked decline in equity raising due to market volatility. “The majors are able to access capital but remain focused on maintaining investment grade credit ratings, driving efficiencies and reducing financing costs,” says Lee. Funding should continue to be available for quality projects, deals and Boards that demonstrate confidence in expected returns.


Total IPO volumes for the sector globally were down 37% to 47 IPOs in H1 2012 compared with H1 2011, while proceeds dropped a massive 80% (excluding Glencore) to just US$0.9 billion. There were lower volumes, reduced pricing and postponements on all the main mining and metals exchanges of Hong Kong, London, Australia and Toronto.

Foreign investors continues to show interest in the richness of Africa’s mineral endowment As Lee explains, “IPOs remain on the corporate agenda but only when markets stabilize. As a result, juniors and explorers are stalling equity raisings and although some are seeking alternative funding outside the public markets, this is nowhere near to bridging the gap”. Funding may come in part from Asian lenders, made via co-investments in overseas projects with local state partners such as infrastructure developers. Such investment often comes with additional conditions such as share of future off-take. Acknowledgement:



Tough direct drives for demanding applications. Hägglunds Drives South Africa (Pty) Ltd. Hägglunds Drives South Africa, engineer, install and service complete drive system solutions for high torque, low- and variable speed applications. From our Head Office and service workshop in Johannesburg, SA, we cover sub-Saharan countries and can dispatch Service Engineers throughout Africa.

To find the optimum drive solution for each individual application, our engineers work closely together with End Users, OEM’s and Consultants. Our experienced personnel will handle installation, piping and commissioning of all our drive systems. Training of the customers‘ operators and maintenance personnel is also provided.

Typical applications within Mining & Bulk Materials Handling are all types of feeders, conveyors, reclaimers, train positioners, and tipplers where variable speed and high torque is needed. Since the Hägglunds drive system is a direct drive, no gearboxes, fluid couplings or other types of speed reducers are needed.

We have a fully equipped workshop with experienced personnel for repairs and overhaul of all our products based in Meadowdale, Johannesburg. We can also offer tailor made and/or basic training both at our facilities and customer sites. We offer 24/7 field service and different kinds of maintenance agreements.

With a very high torque-to-weight ratio, our space saving and robust drives give you maximized uptime and easy maintenance. Since they are completely closed systems, they also withstand the harshest environments.

Hägglunds Drives South Africa is part of Bosch Rexroth Group with manufacturing in Sweden.

„We offer 24/7 field service.“ Other industries where Hägglunds drive systems are commonly used are within Sugar, Cement, Rubber, Recycling and Marine & Offshore.

To see how we may help you with your specific application and for more information about our direct drive system solutions, please contact us at or visit us at Contact:,

f  With a Hägg1 lunds direct drive on your Bucket Wheel, you get a drive that protects the machine from shock loads that may occur.



Hägglunds Drives South Africa (Pty) Ltd., P.O. Box 2851, Edenvale 1610, Johannesburg, South Africa. Tel. + 27 (0)11 454 4933,



f H ägglunds 2 hydraulic motors for Apron Feeders can start in any load conditions and they also have the ability to provide full starting torque without time restriction.

Financing and Managing Capital Projects

As with other aspects of the mining industry, the sheer scale of change in the outlook for capital programmes is truly astonishing.


rior to 2008, the financing issue was how to find the right capital structures in an environment of healthy operational cash flows, while a series of industry bottlenecks were impacting the miners’ ability to bring new supply on stream. Since the summer of 2008, the environment has been one of restricted access to all types of finance as the global financial crisis persists – from IPOs to any refinancing facility. In addition, lower commodities prices have significantly reduced operational cash flows and, therefore, the companies’ ability to self-finance capital programmes. Due to differences in the scale and nature of their capex programmes, the downturn’s impact on majors, mid-tier producers and juniors varies; therefore they face different challenges. In addition, the cash flow positions of most juniors are weaker than those of mid-tier producers due to lack of sellable output, making them even more vulnerable.

Delay or shelve

Most majors have been cutting back on capital programmes mainly by delaying projects, but in some cases shelving entire projects. Although the capex cutbacks are mostly driven by the need to preserve cash, they are also the result of uncertainties in the short- to medium-term supply-demand balance. On the other hand, the crisis has presented miners, particularly the majors, with opportunities to review and reduce development costs as the slump in demand works its way through the suppliers’ value chain. Mobile equipment suppliers have been receiving requests for delayed deliveries and even order cancellations. As for juniors, the majority of their capital programmes are subject to financing and therefore their challenges are even greater in the current financial environment. Most juniors have reduced development costs substantially and entered into “hibernation mode” to weather the storm. Acknowledgement:



DG MATERIALS HANDLING DG Materials Handling (DGMH) is a leading company in the industry of design and manufacture of Overhead Cranes and suppliers of Lifting Equipment. Our expertise and experience covers extensive sectors through out Southern Africa, with our Head OfÀce and worNshops located in Umbogintwini. DGMH is also the stocNist, supplier and distributor of STREET Crane products. STREET hoists are designed to fulÀl expectations and improve our customer’s productivity, through the latest design techniques and a passionate commitment to every performance detail. The result is an easy to operate high endurance hoist incorporating state of the art technology.



PERFORMANCE THROUGH E9OLUTION AND INNO9ATION DGMH PRODUCT RANGE: STREET Heavy and Industrial Cranes STREET Crane Kits and Components STREET Wire Rope Hoists STREET Chain Hoists Jib Cranes - Free Standing or Mounted <ashNawa 9ariable Speed Drives Hetronic Wireless Remote Systems

SER9ICES OFFERED: ‡ Manufacture, Design, Erection and Commissioning of Overhead Cranes and Hoist units. ‡ BreaNdowns, Repairs , Service and Maintenance to all maNes of cranes, hoist and lifting equipment. ‡ Suppliers of Lifting Equipment ‡ 24hour on call service ‡ Load Testing ‡ Rigging and Machine Moving ‡ Rental of access platform Unit 4 5 Norge ParN, Southgate Business ParN P. O. Box 158, Doonside 4135 Tel:+27 (0)31 914 4898 Fax:+27 (0) 31 914 4910 BULK HANDLING IN AFRICA 2013



Minimise downtime maximise output

You know your business and how to get your goods out the door, but keeping your training up to date is vital if you want to stay ahead. Drive Academy provides continual training courses on the products in the SEW-EURODRIVE stable. We provide training on operation, maintenance, repairs, start-up, troubleshooting, project planning and condition monitoring. We also offer customised training and demo units for training purposes. Call Drive Academy today and make sure you minimise downtime and maximise output. SEW-EURODRIVE - Driving the world.

Tel: +27 11 248-7294 Web: Info:



Zimbabwe and South Africa make up 74 percent of all fraud cases reported. The release of the KPMG Africa Fraud Barometer clearly identifies that investors must guard against generalisations when it comes to levels of fraud and corruption in African countries.

Corruption in Africa Key points

KPMG released the findings of the second Africa Fraud Barometer. The initiative was launched in April 2012 and is an effort to measure fraud on the African continent and expose the risk of fraud and corruption faced by companies in their dayto-day operations.

Government is under attack from its own people The survey reflects that the reported incidents of fraud and corruption vary significantly from country to country. The risk profiles of each country are distinct with some appearing to be effective in managing fraud and corruption.


According to the results of the survey, a positive trend is evident in a decrease in the number of reported cases of fraud, from 520 in the second half of 2011 to 503 cases in the first half of 2012. In the same period, the value of fraud decreased

from US$3.3 billion to US$2 billion. Nigeria, Kenya, Zimbabwe and South Africa make up 74 percent of all fraud cases reported, and are the countries with the highest number of reported cases. While fewer cases are reported in South Africa, the overall value of these cases is far greater in Nigeria. There is an increased interest in Africa as an investment destination, but the continent continues to struggle with a negative image in relation to fraud and corruption. However, a generic approach to assessing fraud risks on the continent is not conducive and. investors need to assess the prevailing environment in each country. The survey identifies government as a high risk area both in terms of perpetrator and victim. It would seem from the statistics that government is under attack from its own people. Acknowledgement:





Making the Most of Your People in Africa

Seshni Samuel

Doing time in Africa: a new step on the corporate ladder

Africa’s dynamic growth prospects have placed the continent firmly on the investment radar of many multinationals. Having the right people available on the ground is critical and companies that can effectively manage their talent will be able to capitalise on the African growth story. This is the message emerging from the 2012 Mobility Conference hosted by Ernst & Young. The firm’s Africa People Leader, Seshni Samuel, says that young recruits are increasingly attracted to working across Africa. “It fits in with their need for a new and challenging work experience and for being part of an organisation that is making a social contribution to the economic development of the continent.” For older, more skilled candidates, working in Africa often taps into a desire to leave a legacy and to be part of something bigger.


Of course, given the global war for talent it is not always possible for companies to find the right people at the right time. This has given rise to the need for a more imaginative approach to recruitment. “The Diaspora, those who have left Africa but who want to come back, is becoming an increasingly important talent pool.”

being employees from companies in developed economies. “Multinationals in mature markets are seeking to diversify their thinking and are sending people to African countries so as to acquire an “emerging market mind-set” and they are also actively recruiting people from African economies to bring this mind-set to mature markets.”

Not necessarily lost

The human capital deficit has also given rise to a longer term vision of talent management. The people who leave a company can be just as important as its current employees, says Samuel. “Former employees can partner with your organisation in numerous and invaluable ways, so that the talent you have developed is not necessarily lost when an employee leaves. The focus shifts to maintaining long term relationships with talented people, rather than just retaining them as employees.” Seshni says there is no doubt that putting quality people on the ground in Africa has become a strategic imperative for many companies. “How this is achieved may differ, but in all cases an important mind shift needs to take place. Time spent working in Africa needs to become integral not only to the way a company does business but also to an employee’s progress within it.” Acknowledgement:

There is another, relatively new, talent source, BULK HANDLING IN AFRICA 2013


Dymot Engineering Company (Pty) Ltd Reg. No. 1965/007008/07 11 Derrick Road, Spartan, Kempton Park PO Box 404, Edenvale, 1610, South Africa Tel: +27 (0)11 970-1920 / 394-1397 Fax: +27 (0)11 970-1979 email: web site: Dymot Engineering specialises in Winches, Sheaves and Winching Equipment Manufacturing and Design. Dymot commenced trading as a jobbing shop in 1968 and the first winches were designed and built in 1975. The company offers a full range of standard power and manually operated winches, winching systems and allied equipment. Dymot also offer package deals in the design and manufacture of purpose-built winches or layouts to suit customer requirements and is the market leader in the field.


Purpose designed, robust and compact conveyor take-up winches ranging in size from 3 kW/1,8 tonne to 22 kW/15 tonne line pull. Also available in two speed models. Bigger models available on request.


Automatic systems for tensioning conveyors with winches using Loadcells and an EGT (Electronic Gravity Tower) System to control the start-up and running tensions on any conveyor. Ideal for Underground Environments or where Counterweight Towers are not practical or economical.


Heavy duty safety winches specially suited to conveyor tensioning have been developed to eliminate the dangerous aspects of hand winches. An automatic clamping and ratchet type brake ensures that the ratchet is never disengaged and the load is moved up and down simply by winding the handle in the required direction; the braking action is regulated by the load. A further improvement has been to fit effective dust covers over the gears to reduce maintenance and prolong the life of the winches. Winches comply closely to BS3701. Sizes from 0,5 Ton to 13 Ton Line Pull.


The Motorised Hand Winch option is the preferred choice by customers as this makes winching extremely easy by operating only the push button control on the panel. No more winding of the handle is required. Our range is comprehensive and models are mostly fitted with 2.2kW Motors which makes this product ideal for Take-Up Tower Counterweights and a range of other applications.


Manufactured with internal bearings to suit rope diameters from 6mm DIA to 42mmDIA in our standard range. Also available with vertical brackets complete with rope keeps or horizontal brackets or shaft and keep plate only. Also available: Double, Triple, Quadruple, Floating and more. Bigger sizes and specials on request.


With the demand for bigger tonnages per hour on mines and power stations, conveyors are getting longer and more heavily loaded. This results in greater uncommon tensions to the gravity tower from the take-up trolley in the case of stopping/ power failures, Braked Capstans are added to



the system to protect the tower and counterweight from these shock loads. We have a range of Braked Capstans adaptable to your plant/mine.


Lay On/Lay Off winches to move your shuttle/head/trolley/ load in both directions are available in different models or to your requirements.


Bull wheel driven winch complete with return sheave for an endless rope system.


Special Winches for the construction/mining industry are also designed and manufactured to comply for Man Riding. Mainly for Shaft Sinking and Tower Construction. These are specialised winches and need to be certified for man riding by the Department of Manpower.


Our Screw Take-Ups are ideal for short conveyors or those requiring take-up travel distances less than 1.5m. Sized according to Pulley Shaft Bearing Diameter we can offer the best suited pair for your application.


Ideally suited to mounting in light and heavy vehicles for all spheres of vehicle recovery. Speed is infinitely variable and there is an efficient overload protection. Winch mounting can be fabricated to suit clientsâ&#x20AC;&#x2122; requirements and to suit other applications.






Engineering as a Driver Representatives from Consulting Engineers South Africa (CESA) attended the 19th Group of African Member Associations (GAMA) Conference held in Livingstone at the Zambezi Sun adjoining the spectacular Victoria Falls. GAMA is the African chapter of the International Federation of Consulting Engineers (FIDIC) and aspires to become the knowledge platform to further sustainable development on the continent.


raham Pirie, CEO of CESA, comments, â&#x20AC;&#x153;It was the most successful conference in GAMAâ&#x20AC;&#x2122;s 20-year history, attended by just under 200 delegates and 50 partners.â&#x20AC;? 15 Member Associations from across the African continent attended the event. Graham believes that FIDIC and GAMA still have a lot of work to do to increase membership, in order to fully represent the 54 countries in Africa. The theme for the conference was â&#x20AC;&#x153;Engineering as a driver of sustainable social and economic developmentâ&#x20AC;?. This in view of the fact that progress in attaining the targets set in terms of the Millennium Development Goals has been very slow and throughout the conference, there was frequent reference to the need for capacity building and the promotion of local (indigenous skills) or regional skills and for multi-nationals to work in partnership with local entities. Statistics emanating from the FIDICâ&#x20AC;&#x2122;s State of the World Report 2009 include: Africaâ&#x20AC;&#x2122;s population growth rate was 26% in the past decade, in 2050 Africa could be three times the size of Europe and 75% the size of Asia. By 2015, Nigeriaâ&#x20AC;&#x2122;s population, if current trends persist, will be greater than

Graham Pirie

that of the USA. South Africaâ&#x20AC;&#x2122;s carbon emissions are greater than that of the UK. The main challenge is to increase Africaâ&#x20AC;&#x2122;s rate of economic growth and improve quality of life in a sustainable manner so Engineers have a lot of hard work to do and are increasingly presented with more and more opportunities to share in Africaâ&#x20AC;&#x2122;s challenges. Consulting Engineers South Africa (CESA), Graham Pirie, Tel: (011) 463-2022 (PDLOJVSLULH#FHVDFR]DZZZÂżGLFRUJ













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cleaning equipment for a trouble-free flow of materials at transfer and load points. This is backed up by an installation and maintenance package including a 24 hour call out service. § We have over 25 years experience as a supplier and advisor on spillage control to the

bulk materials handling industry and offer proactive and ongoing maintenance for preventative spillage control and optimum belt cleaning. § We are accredited with ISO 9001:2008 and OHSAS 18001:2007 certification and are

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Charting the Unchartered Whitehouse & Associates (W&E) was recently commissioned by the Built Environment Professions Export Council (BEPEC), a Public Private Partnership with the South African Department of Trade and Industry, to explore business opportunities for South African firms arising from the development of the North-South Corridor.


uncan Bonnett of W&E shares some of his insights on business opportunities in Africa.

Arise the 'hopeless continent'

On his recent research trip across the region, Duncan notes that many South African businesses are not aware of the opportunities available on their country's doorstep, often because they are blindsided by the challenges facing our own economy. "You see it when you travel around most of sub-Saharan Africa," says Duncan. In some ways, our debates around land and ownership, and policy and minerals are well behind most other countries in Africa. They've been through nationalisation in Zambia, African socialism in Tanzania, a socialist Marxist system in Angola, They've been through it and seen that it doesn't work, so there's less sensitivity to foreign ownership in many instances."

South African businesses should recognise the changes that have taken place to open Africa up to new business opportunities South Africans tend to think that if business conditions here are lousy, then they must be even worse in the rest of Africa, whereas the exact opposite is true. Duncan explains, "South Africa needs to take on board that we're seeing an Africa today that didn't exist 10 years ago, when many South African businesses tried to expand unsuccessfully further up the continent. Africa has become a much more globalised environment, it's much more complicated, much more nuanced than it used to be. You need to take time to understand it," he says. "South Africa may be limping along at 3% growth but most of the other African countries are growing at twice the pace that we are. Our mining industry is suffering; mainly due to labour and power costs whereas in other African countries, they don't have the same problems and constraints that we do."

curve in terms of sensitivities to foreign investment and ownership is behind the rest of the continent's, bearing in mind that most of the countries in the region gained independence between 20, to 40 years before South Africa's transition. A critical aspect of current and potential infrastructure developments is that they are happening in areas that have previously generated very little outside business interest. "One of the things about the 'new scramble for Africa' that's being talked about is that it's unlocking remote areas of the continent, which will have knock-on effects," explains Duncan. "If you're a miner, or an oil and gas explorer, it's probably a bit of a pain, but for a consulting engineer, or an architect, or a quantity surveyor it's a great opportunity because all of that infrastructure has to be built, and it has to be built largely from scratch in countries that don't have the capacity to design and build it, in areas that don't have that infrastructure available." South African companies need to understand that consumer markets in particular - from cement to mobile phones to food - are driven to a large degree by the informal economy. As such, applying traditional 'western' models to developing business tends to under-sell the real opportunity.

China: friendly giant or greedy foe?

Duncan has experienced first-hand the caution that arises when China enters the topic of conversation. "There's a lot of smoke and mirrors about China's involvement in Africa and in many respects, it's overstated." His research on the ground shows that although China is strong in certain mining sectors, it isn't a neo-coloniser. "If you look at World Bank contract awards, on the goods and works side there is a lot of Chinese involvement, on the consulting side of it - there's virtually none. In addition, Chinese companies are globalising as well and increasingly they are globalising their sourcing of inputs - not everything in China is cheaper than in other countries and in some instances, the client insists on quality standards that many Chinese companies cannot match, especially at a low cost," he concludes. Whitehouse & Associates, Duncan Bonnett, Tel: (011) 728-5878 Web:

Duncan says South African businesses should recognise the changes that have taken place to open Africa up to new business opportunities. "Just in terms of access to telecommunications, it's easier to get into markets and access them. There's a lot more stability in economies than there was 10 years ago.â&#x20AC;?

Infrastructure with a conscience

Duncan explains that South Africa's development BULK HANDLING IN AFRICA 2013


The Heart of a Conveyor The pulleys in a conveyor system form an integral part of the system in that they are custom designed according to the type, thickness and width of the belt, the type of material being conveyed and the unique operating conditions of each given situation.


CIS has learnt over the years that conveyor systems need careful planning, especially a bit of thinking ahead in terms of expanding the system

hanging any one of these components has a direct influence on the performance of the other, an important fact to keep in mind when expanding, upgrading or extending the conveyor system. Colin Gilmour of Conveyor & Industrial Supplies (CIS) in Boksburg tells “Bulk Handling Today” that this fact is often overlooked when mines upgrade or extend conveyor systems.

Moral of the story: when in doubt, ask the experts who design and build these systems and have learnt from many years’ experience “For example, for the sake of more space they argue that fitting a smaller diameter pulley will solve a space problem, but they lose sight of the fact that a belt of a certain type and ply is specifically manufactured for a certain minimum diameter pulley,” Colin explains. “Instead of a 600 mm diameter tail pulley, they fit a 400 mm pulley, not only to gain space, but also because it is lighter and easier to handle. That’s when they call us to look into the sudden increases in damage to belting and belt splices resulting in a sharp increase in downtime.

All made in-house

“Similarly, we’ve had cases where a mine changes the conveyor belt to a much thicker ply belt in the hope that the stronger belt will last longer,” adds Colin. “They end up with a belt so rigid it simply won’t trough properly because the rest of the system obviously isn’t designed for this particular type and thickness of belting. Also, the belt won’t track properly, even if they go to the extra expense of installing costly tracking systems.” Moral of the story? When in doubt, ask the experts who design and build these systems and have learnt from many years’ experience. “CIS has been around in the local conveyor industry for over 30 years to the point that we now offer a total solution,” says Colin. “Although pulleys are our biggest business, we manufacture in-house all the mechanicals required for a complete conveyor system, from structures, to tail-ends, all pulleys, the idler rollers and their frames as well as our own gearbox which we’ve



Colin Gilmour of Conveyor & Industrial Supplies

developed over the years. We even manufacture our own locking elements.


“We’ve just invested in new CNC technology to automate and reduce the production time on the gearbox dramatically,” adds Colin. “The process of machining and line-boring the finishing on the casing of the gearbox normally takes about a month’s manual labour, but with this new machine it will be done automatically overnight. In fact, it can do two casings simultaneously on its own without any human supervision.” With two dedicated designers, one specialising in pulleys and the other in gearboxes, CIS also offers the rebuilding of both pulleys and all other brands of gearboxes. Even so, the company does not offer a turnkey solution in terms of conveyor design. “We have deliberately stayed away from getting involved on the installation side of this business as it requires specialised teams to do the surveying, the civils and the installation on site,” explains Colin. “We concentrate on manufacturing all the mechanical components but how they match up to the each

Pulleys packaged for delivery

other in terms of the specifications from a design point of view usually comes from a project house handling the job as a whole. However, we can design, assist and advise anyone who approaches us directly to redesign a system, especially when upgrading or extending a conveyor system.

Custom designed

“Many people who just don’t have experience in mining equipment call us and ask for a standard pulley for their 600mm wide belt, for example, but there is no such thing as a standard pulley, each one is designed for a specific operation,” says Colin. “In such a case we simply obtain all the necessary information of the duties of their conveyor system, make the required calculations and manufacture the pulley accordingly for that specific application.” Just like gearboxes, pulleys can often be rebuilt at a fraction of the cost of a new one and yet provide a reliable second term of life. “We’re encouraging the mines not to summarily scrap old pulleys, but to consider getting us to refurbish for them,” explains Colin. “Many old pulleys are discarded when they are almost all capable of being repaired, especially in terms of re-using the end-disks.

Second lease on life

“The shell may be worn away completely, but the end disks are usually intact because there is no wear on them at all,” adds Colin. “Each pulley arriving here for refurbishment is stripped before we quote on the cost to repair it back to new complete with the same one year guarantee we give on a new one. In many instances it’s a matter of replacing a cracked shaft and re-lagging the shell if need be before a pulley is returned to the mine within a matter of days.” “Nine out of ten times a conveyor system will be extended within a couple of years. Over-engineering a conveyor system is therefore not necessarily a bad thing in terms of future expansion,” Colin remarks in conclusion. Colin Gilmour, Conveyor & Industrial Supplies, Tel: (011) 306-3100, Email:





Integrate and Unite The chartered Institute of Purchasing & Supply (CIPS) is to expand its local presence and launch CIPS Africa.


his development will see all 16 000 CIPS members across Sub Saharan Africa brought together to be supported initially from the CIPS Southern Africa office, based in Pretoria. This new initiative will be led by managing director, Andre Coetzee.

Andre Coetzee

David Noble

David Noble, CEO of CIPS says, â&#x20AC;&#x153;There is little doubt that Africa is growing exponentially as an economic centre. Good procurement and supply is increasingly being recognised as fundamental to this success and we have already sent a number of African countries mandate CIPS qualifications in the public sector arena. This move will ensure that our experience and on the ground expertise will benefit all our members, bringing them an even greater CIPS.â&#x20AC;?

Andre, along with other CIPS officers, undertook a series of supply chain lectures across East and West Africa in September 2012 to meet members and explain the developments in more detail. CIPS runs nearly 45 000 examinations every year across the region from 60 study centre, and has 111 African branches with an additional seven in South Africa. CIPS currently works and supports many organisations from both the private and public sectors across the Africa region. The launch of CIPS Africa will also enable CIPS to support these and other organisations in sub-Saharan Africa more effectively, helping them to develop their procurement and supply chain capability. The CIPS Africa office will remain part of the CIPS group based in the UK. Exams and assessments will still be executed and managed by the UK. CIPS, Andre Coetzee, Tel: (012) 345-6177, Email: v

As part of this initiative, a strategic advisory group will be set up to include representatives from East, West and Southern Africa which will help shape the future CIPS presence in the region. North Africa will continue to be serviced by CIPS MENA office based in Dubai.



kone cranes



Konecranes Explodes on to Southern African Crane

A 265 ton capacity crane recently installed at Ingula Power Station

John MacDonald, sales and marketing Director; Nigel Clegg, managing director and Markus Labuschagne, regional manager Western Cape

Orders for Konecranes Sub Sahara Africa more than doubled in 2012 With a combined 60 years in the crane industry, Konecranes South Africa’s Nigel Clegg and John MacDonald have been the driving force behind the company’s recent explosion on to the Southern African crane market.


ust over two years ago Konecranes, one of the world’s largest crane builders established over 100 years ago, acquired 100% of Dynamic Crane Systems in Johannesburg. Nigel Clegg relocated to South Africa from the UK to run the company here, bringing with him over 35 years of international experience within the Konecranes group. He was joined by John MacDonald who has worked in the crane industry in South Africa for over two decades. Together they form a dynamic team serving Sub-Sahara Africa, supported by a growing team of local experts and backed by the global parent company, Konecranes Finland who are represented in 47 countries around the world. Clegg, Managing Director and MacDonald, Sales & Marketing Director, opened three branches in as many months: Port Elizabeth, eMalahleni (formerly Witbank) and Cape Town. Plans to open more branches in other major centers are well underway, including Richards Bay. “After a low-key start we have now significantly strengthened the team and in 2012 our order intake for Konecranes more than doubled”. MacDonald said. “Current projects include several power stations: Eskom, Kusile, Medupi, Ingula, Sonils in Angola, as well as the Kumba mine, Sappi Ngodwana paper

mill and SRF Packaging “One of the largest crane projects ever to be undertaken in Southern Africa is for Transnet in Johannesburg where we are installing three rail-mounted gantry (RMG) cranes which will be commissioned by early 2013. Konecranes also installed four cranes at Eskom’s Medupi turbine halls and two at Kusile. Another two cranes were recently installed and load tested at Ingula, each with a capacity of 265t. Once electronically synchronised and linked with a spreader beam, the cranes are able to lift 500t together. “We are also creating partnerships with key players in Southern Africa, including Angola, Zambia, Botswana, Kenya and Mauritius. Negotiations to establish footholds in other sub-Saharan countries are also well underway”, said John MacDonald. The company is making inroads into Southern Africa and is already active in the expanding mining markets of Ghana and the DRC as well as in the vast oil- and gasfields of Angola and Nigeria. Late last year Konecranes SA was commissioned by Sonils Sonils Oil Service Centre in Luanda to supply another R13m worth of cranes, bringing the total cranes and hoists there to 120. “One of our key priorities is to increase the level of inspection, service, load testing as well as the spare part division. Konecranes service teams are currently able to inspect and service all makes of cranes and hoists”. John MacDonald o 011 864 2800, 083 251 3995 for more details.





West Uneasy Over China’s Investment in Africa The announcement by President Hu Jintao that China would lend $20bn to African governments for infrastructure and agriculture in the next three years has been met with cautious optimism, as well as a smattering of unease.


President Jacob Zuma and President Hu Jintao

he New York Times reports that China has come under heavy criticism for offering its aid without conditioning it on human rights performance or governance. At the same time, its projects have focused on benefiting China’s extractive industries, not African people, critics say. However, SA President Jacob Zuma was positive over China’s approach, but referring to the unbalanced nature of trade ties, warned in the Financial Times that “this trade pattern is unsustainable in the long term”. Dr Chris Alden of the SA Institute of International Affairs, argues that while relations between South Africa and China might be “very strong”, commercial competition is an area where “interests do not align”. A Mail & Guardian report notes that Africa’s long-standing affliction of being mined for raw materials by foreign powers is also a source of concern. “At this point, China is desperate for raw materials,” says International Relations Professor Garth Shelton of the University of the Witwatersrand. Africa is increasingly seen as a microcosm of the shifting balance of power: three years ago China overtook the US as Africa’s biggest trading partner. And, notes a WA Today report, Zuma did little to diminish the sense of rivalry with his comments, including that “Africa's past economic experience with Europe dictates a need to be cautious when entering into partnerships with other economies”. China’s emergence as Africa’s main trading partner is adding to discomfort in the West, agrees an NBC News report. But this criticism draws rebukes from

China that the West still views Africa as though it were a colony. Reacting to the EU’s criticism of China’s “cheque book approach”, Zuma shot back in a New Europe report: “… We certainly are convinced that China’s intention is different from that of Europe, which to date continues to intend to influence African countries for their sole benefit.” Putting a positive spin on accusations that China was offering no-strings-attached investment for repressive regimes, Hu is quoted in a Business Insider report as saying China would “give genuine support to African countries” independent choice of development path and genuinely help African countries strengthen their capacity for self-development. The misconception that Africa and China have a “colonial” relationship is largely based on bias expressed in Western media, Professor Deborah Brautigam of the American University in Washington DC points out in a PolicyMic report. She says while China’s assistance is not without moral conundrums, its interactions have had a positive effect on Africa’s goal of development, infrastructure building and boosting exports. Standard Bank research analyst Simon Freemantle and economist Jeremy Stevens have, meanwhile, sounded a note of caution saying that Africa is becoming increasingly dependent on Chinese demand for its exports, notes a Xinhaunet report. Also, Beijing is looking to Africa to prevent a sharp fall in consumer goods exports. Acknowledgement: Gibs Review Issue 8, 2012



Tega offers value added consultancy services and solutions

in Mineral BeneďŹ ciation, Bulk Solids handling, Wear and Abrasion customised to suit speciďŹ c applications. With focus on core engineering applications in the Mining and Mineral Processing Industry, Steel plants, Power, Port and Cement Industries.

Tega Industries (South Africa) Pty Ltd



P.O Box 17260, Benoni West, 1503, South Africa, Phone: (011) 421 - 9916/ 7, 421 - 6714, 421 - 6761, Fax: (011) 845 1472, Email:,


TOTAL : Solution

Popularity of Rubber is Soaring Growing demand for Tega Industries’ rubber based products has necessitated the expansion of its manufacturing plant in order to meet the requirements of local mines and other industries.

towards training and development of its staff. Production and quality training courses are provided through Merseta accredited training courses and a specially developed skills development program is in place to ensure the enrichment of its workers and as a result provide better products and services for customers.

Mining products

Tega Industries’ mining division designs, manufactures and installs a vast range of rubber linings suitable for use in grinding mills in the beneficiation of diamonds, chrome, gold, platinum and manganese. The product line-up also includes wear parts and other custom-made items for a wide variety of mining processes. These include: ‡ ‡ ‡ ‡ ‡ ‡ ‡

Mill linings Screen panels Wear lining components Conveyor components Pumps and flotation cell parts Hydro cyclones Trommel screens

Industrial products


t present an additional 45 000m² of workshop space is currently being renovated to world-class standards at its new facilities in Brakpan. Upon completion the factory will have capacity to meet current and future demands for all manufactured items for the foreseeable future. The company manufactures a large variety of unique and customised rubber based products such as wear linings, mouldings and conveyor loading points and other parts.

Worldwide support

The South African operation is a wholly owned subsidiary of international parent company Tega Industries Ltd, which operates a further five manufacturing plants in India, Chile and Australia. Its global reach includes subsidiaries in the USA, Sweden, Zambia and Ghana which enables technical staff to access information from a broad pool of expertise world-wide, in order to assist the company to meet even the most difficult requirements of its local customers. “Throughout the group we are committed to research and develop new products and technologies to ensure we remain at the forefront of rubber technology worldwide. In this way we ensure that we are able to manufacture world-leading products for a wide variety of applications. “Simultaneously, we uphold the highest international standards throughout the group and our local plant is ISO 9000:2008 certified for the design, development, manufacture and supply of rubber products for the mining and bulk material handling industries,” says Tega Industries SA managing director Fernando Monteiro. He continues that the company also has a strong commitment

The industrial division has the technical expertise and facilities to design and manufacture products for specific customer applications. Conveyor parts and other process enhancing products are used widely in factories, minerals processing and production facilities throughout the region. The standard line-up of products includes: ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡

Special mouldings Diaphragms Bellows Conveyor or belt edging Special seals Vibration mountings Heat exchanger gaskets Bucket conveyor cleats

Growing footprint

Tega Industries South Africa employs more than 150 trained and dedicated staff to assist its growing customer-base to find solutions for their exacting requirements. Its commitment to quality and the development of world-leading rubber products sets it apart from run-of-the-mill manufacturers and has made it a firm favourite among South Africa’s mining and industrial industries. “Our vision remains to develop technologically advanced products and solutions for our customers. We aim to be the leaders in the field of wear applications, materials handling and mineral processing with unmatched expertise in the provision of the right mining and industrial rubber products for customer’s specific applications,” concludes Fernando. Tega Industries, Vishal Gautam, Tel: (011) 421 9916, Email: vishal.,



A Provider Of Logistics Services Across All Industries TAC Distribution specialises in the provision of transportation and warehousing solutions to companies that want to achieve greater efficiencies within their supply chain. Through a combination of our people, technology and processes we have the ability to generate measurable results for our customers. We have secure bonded warehousing facilities in South Africa and Zimbabwe and will soon be expanding through the SADC region. Over the last 5 years since the company was founded, we have continued to grow steadily expanding our scope of services in the logistics sector. Our current services included: Warehousing; Heavy Haulage; express cargo; consolidated cargo and break bulk. Our Fleet

Our well maintained fleet comprises of 1.5 â&#x20AC;&#x201C; 8 ton vehicles used mainly for express loads headed north into Zimbabwe, Zambia, Congo and Tanzania. We also take pride in our efficient heavy haulage trucks, which include 30 â&#x20AC;&#x201C; 34 ton tri-axles and super link trailers with container locks. All vehicles are ensured and have satellite tracking installed. Our current goods in transit value is R1 500 000 and can be adjusted to suit specific cargo to be transported.

Our Goals

TAC Distribution will continue to expand its services in the logistics sector. We are there to provide our customers with unparalleled turnkey solutions in the industry. We will be launching our courier division in the second quarter of 2013. We believe and understand that our success is because of you and we will continue to provide you with our best service at all times.

Our Team

The management team has a wealth of experience in the logistics industry. Our dedicated team is available to ensure the unhindered delivery of your tailor made solution to achieve your desired efficiency in your supply chain. Our drivers undergo stringent tests and ongoing training for road safety and efficient delivery of your cargo. We are driven by our passion to ensure your satisfaction


Tel: +27113141039, Fax: +27865136641 Email:, 34


Steel Fabricators The push into the sub-Saharan region by many South African, and foreign steel fabricators continues unabated with many focusing on the continuing opportunities in Mozambique. This is the opinion of International Steel Fabricators’ (ISF) director, Neels van Niekerk.


eels says that the African situation is enticing for South African exporters. “New coal mining in neighbouring countries like Mozambique is booming,” he says, “and the discovery and capacity confirmation of new offshore gas fields around all the other Southern African countries signal the start of a great new Southern African industry. “The mining of precious and base metals in most of the Southern African countries is moving into a boom phase and the interest in the uranium deposits of Southern Africa has never been higher.” He adds that this positive outlook is the same for the countries of Central and West Africa, which are, in addition, also benefitting from a large number of iron ore mining projects. “And so the list continues,” he says. According to Neels, about forty countries in Africa have a higher estimated growth rate than South Africa and there is a direct relation between steel consumption and the growth rate of countries. “It is no wonder there is such an increased interest in exports to these regions from the South African steel construction industry.”

Dedicate a substantial proportion of their fabrication capacity to exports accompanied by focused and aggressive marketing campaigns Proactive

Neels says that while the burgeoning growth in other markets entices our exporters, the current weakening Rand is a long-awaited and welcome contributor to the prospects of even further increases in structural steel exports. “Exports of fabricated structural steel exports (HS-code 37.08) dropped from a peak in 2008 of well over 200 000 tons pa and settled at an average of 150 000 tons pa

Neels van Niekerk

for the following years. “The ISF is confident that structural steel exports will reach the 200 000 tons p.a. mark again within the next 18 to 24 months as competitive and entrepreneurial companies position themselves to dedicate a substantial proportion of their fabrication capacity to exports accompanied by focused and aggressive marketing campaigns. These companies will undoubtedly survive the next decade, while the future of the others who are not that proactive, is more uncertain,” he concludes. The ISF is a marketing consortium of the leading South African structural steel fabricators, consulting engineers, steel merchants, allied suppliers and primary steel producers. These companies provide the full spectrum of services related to structural steelwork design, fabrication and construction – anywhere in the world. ISF group events and missions in 2012 included Mozambique, Botswana, Turkey, Tunisia, Canada (oil sands), Canada (mining), Tunisia (African Development Bank) and Chile. International Steel Fabricators, Neels van Niekerk, Tel: (011) 726-6111, Email:, Web:





Lifting the BIG stuff

The sort of lifting equipment which can lift a 50 tonne locomotive or a rail carriage under construction and flip it over so that personnel can work on the underside, cannot exactly be bought off the shelf.

A large stock holding of crane components ensures quick delivery

Models The girder for an overhead crane nearing completion in the AJM workshop

This is the type of lifting equipment which the 15-year old company, AJM Engineering, based in Meadowdale near Johannesburg, specialises in. To find out more “Bulk Handling Today” speaks to Tony Marques, the owner of the company whose equipment is better known under the ProStar brand of lifting equipment. “In the thirty years I’ve been in the lifting industry in South Africa we’ve designed custom built cranes and lifting devices for several unique applications,” he says. “From large overhead cranes to lift locomotives, through to special solutions for the manipulation of 20 tonne carriages for welding access during fabrication, we’ve built them all.”

A whole solution

Typically we not only supply the lifting equipment as such, but rather a complete solution which includes special features such as welding platforms and jib cranes which may be required in the process of manufacturing. “In total we have supplied well over a hundred custom-built cranes over the years to Transnet facilities throughout South Africa,” says Tony. “For the latest project we supplied four 20-tonne cranes and 14 jib cranes including the welding platforms and welding manipulator systems for the new locomotive manufacturing facility in Pretoria.”

“Our standard models are suitable for load capacities of 1 000 to 100 000 kg,” says Tony. “However, we have special models with automatic load balancing or where you can adjust the distance between the two belts electrically or mechanically. The load can be handled with FES belts up to 20 000 kg. For higher lifting capacities, we use steel woven belts, chains or a combination of both. For loads with sharp edges, for example, we even have magnetic edge protectors as an accessory. “A huge advantage of this load turning system lies in its mobile application within the factory,” adds Tony. “The device can be taken directly to where it is needed on the factory floor and, attached to a suitable overhead crane, it can turn the load until all work is done before moving it to the next location in the factory. Every system we design is custom made after we’ve simulated the operating process of each particular load on our CAD design software.” “Regardless of the size and level of sophistication of a lifting requirement, however, quality, and especially safety, is our foremost priority and something we simply won’t compromise on,” says Tony. “We are registered as an LME (lifting inspection entity) and have several registered LMIs (lifting machinery inspectors) among our 25 technical services teams who are on the road every day. Tony Marques, Tel: (011) 453-0728, Email:



Tshwane East Wholesalers Agricultural And Mining Equipment Supplier Origins

Tshwane East Wholesalers was established in 2010 as a wholesale for mining, industrial and agricultural tools and materials. Our core business is the sourcing and supply of tools to the mining and agriculture sectors across the SADC region.


To be a customer-driven world-class service provider capable of providing total solutions throughout the agricultural and mining industry. To build productive relationships by getting closer to our customers and, by being flexible and innovative, to enable them to enjoy the economies of scale which the broader utilisation of our infrastructure will allow.


At Tshwane East Wholesalers we supply a wide range of tools and materials as well as mining equipment and replacement parts throughout South Africa. Our wide range of tools and equipment include the following: protective clothing, fertilizers, fencing materials, cement, first aid kits, hand tools, small scale and large scale irrigation equipment, gardening and agricultural equipment. We also provide after sales services to our customers like the installation and servicing of irrigation equipment. Tshwane East Wholesalers has also expanded its operations to the supply of a wide variety of mining equipment to the mining industry including replacement parts and upgrades. Please contact us for our product list and other services.



The Agricultural and Mining sectors form the platform that spearheads business growth into the SADC and Central African Regions. Our experience and know-how of successfully supplying integrated solutions to the agricultural and mining industries has established Tshwane East Wholesalers as the supplier of choice to these sectors. We will source and deliver to you an extended range of tools and materials at competitive prices without compromise on quality. Tshwane East Wholesalers has since expanded to also offer industrial (mining) and agriculture chemicals and fertilisers. Contact us for your needsâ&#x20AC;Śconsider it done.

Please contact us on +27113141039

Franchise Model in Zambia Engen, a leading challenger for downstream petroleum product market share in Sub-Saharan Africa (SSA) and the Indian Ocean Islands, is taking its successful lubricating oil franchise, the Oil Centre (TOC), into Zambia, in an ongoing drive to grow its business south of the Sahara.


he company planned to roll out another eight TOCs in 2012, in selected countries across its footprint of 17 SSA countries outside South Africa. In addition, it introduced a further diversification of its business channels, a non-branded distribution partnership model, of which nine rolled out in 2013, throughout the rest of SSA.

Growth plans

Andre de Wet, acting GM of Engen’s International Business Division (IBD) explains the need for a third-party model. “In terms of Engen’s strategic plan for growth, we’re aiming for top-three lubricant supplier status in the region by 2016. Partnering is the only way we can achieve the growth needed to support this aggressive target. He says in-country realities will determine which of the two available tiers will be followed as the preferred channel to market. “Both models allow aggressive growth without significant capital investment from Engen. To manage growth, Engen must control its own fate, while leaving room for local business partner success.”

Distribution model

“The region has seen the departure of many traditional oil majors in recent years, presenting increased opportunities for us. But we have to take a view as regards our mode of entry, if we decide to enter the market at all. Do we enter directly by acquisition, do we leave it alone, or do we appoint a business partner?” Engen has successfully taken over several incountry operations in recent years. “In many of these countries, lube oil businesses tend to be local entrepreneurs without the access to leading lube technology and expertise that a company like

ours could offer them,” says Andre. “In such cases, Engen will follow a distribution model, as opposed to the bigger investment of entering the country or running a TOC model. In slightly different scenarios like the DRC, we are indeed present in the capital, but not in other areas of that vast country. So where our own distribution infrastructure doesn’t cover the entire opportunity, the distributor model once again comes into play.” Because of the growing importance of distribution to Engen in such low-density areas, the company has appointed a distribution manager for the entire IBD region, and the company planned to roll out seven or eight distribution agreements before the 2012 year-end.


Whereas the distribution model with its three-year renewable contract terms is suited for immature BULK HANDLING IN AFRICA 2013


Third party advantage

markets, more developed markets have the volumes to justify bigger investments by TOC franchisees and Engen alike. “TOC franchises will offer customers a Total Engen experience on the ground,” says Andre. “It goes beyond distribution – the partner is responsible for warehousing, managing and building a customer base, and ensuring supply. It is the same experience as going to an Engen garage, but with a lubricants focus.” He says if volume throughput by a distributor is such that its agreement justifies being revisited, Engen will convert the distributor to an authorised TOC partner.



What counts in the favour of partners is the ready-made market quantification undertaken by Engen, and its concession that it cannot meet current needs on its own. “Some clients require flexibility in volumes. Partners will be perfectly positioned to augment any shortfalls, while always being assured of minimum sustainable business within our market estimations.” Andre says the opportunity is big enough to allow both Engen and its partners to meet the burgeoning need for automotive and industrial lubricants on the continent. “The model allows entrepreneurs to scale up really quickly without the capital that would otherwise be required. With access to the same marketing and sales support, best-of-breed product, technical knowledge and security of supply as internal resources, this is a rising tide that will lift all boats.” Tania Landsberg, Engen Petroleum Group, communications manager, Tel: (021) 403-5258, Email:


Proud to be associated with Coal of Africa Limited






Osborn Engineered Products, a name synonymous with robustness and reliability, has the confidence of 90 years’ experience to back their product range. From design concept and manufacture to installation and commissioning, Osborn provides the worlds mining industries with a full range of crushers, feeders, screens and conveyors. Catering for all Mining and Quarrying equipment requirements, from the primary tip to the milling discharge circuits, Osborn offers a complete solution, making Osborn South Africa's foremost mining equipment manufacturer.


eflecting the outstanding reputation of its hardwearing machines in the manganese industry, Osborn has supplied equipment totalling R14million to a new mine in the Northern Cape. This order includes an Apron Feeder, Vibrating Grizzly Feeder, Jaw Crusher and an Osborn 57SBS Gyrasphere Cone Crusher. The installation and commissioning were undertaken by Osborn. Also included in the equipment supplied was a BTi MRHT25BXR50 stationary Rock Breaker System, which is perfectly suited to this hard rock application. Osborn is the local distributor for Breaker Technology. Osborn also secured an order for seven screens from leading independent diamond mining group Petra Diamonds. The screens will be employed at Petra Diamonds' Cullinan operation, where a new tailings reclamation plant is being set up. This order comprises six Osborn IFE Screens, as well as one Osborn OBEX single deck screen.

Osborn is a member of the Astec Industries Inc. group of companies, a leading American manufacturer of plant and equipment for aggregate processing, asphalt road building, pipeline and utility trenching. Through Astec, Osborn now offers an imported range of construction equipment, including asphalt road construction machines, trenching technology and directional drills. Guaranteeing a longer lifespan of the road surface and ensuring that the asphalt supply company receives the government rebates for smoothness and longevity, the Shuttle Buggy is of real benefit to the asphalt road construction industry. The Roadtec “Shuttle Buggy”, a state-of-the-art material transfer vehicle that is used extensively by government roads departments worldwide to achieve consistently high quality asphalt surfaces, could bring down South Africa's road maintenance costs by up to 90%! Recognising the value of this revolutionary unit, Polokwane Surfacing has already purchased one recently. Osborn secured a R10-million order for three horizontal directional drills, reflecting another success this new addition to the company's product line-up is achieving. Two American Augers DD10 units and one Astec Underground DD4045 have been ordered and this new customer will be employing its new HDDs on the Johannesburg to Durban N3 and Johannesburg to Cape Town N1 routes, for hard rock drilling for the installation of fibre optic cables. Osborn has been supplying the industry with robust, high quality equipment for more than five decades, and is exceptionally well positioned to meet current and future demand of the Mining, Aggregate and Construction industry. Osborn, Tel: (011) 820-7633, Email:









Tracks Roll Through Central Africa From the mountainous kingdom of Swaziland right up to Kenya on the east coast, from the sands of Namibia up to warshredded DRC and Congo on the west, with all the stretches of savannah and skyscrapers in between, and even including a hop to the honeymoon islands of Madagascar, Reunion, Mauritius and Comores ... Goodyear tyres are rolling across sub-Saharan Africa.


oodyear’s footprint is the most comprehensive of all tyre manufacturers on the continent. It covers countries and cultures so diverse – and some so volatile – that each requires focused attention in order to satisfy product requirements and nurture the market. For this reason, Goodyear has strategically grouped its sub-Saharan customers into clusters, based mostly on their proximity to one another, managed by a dedicated team and led by a Cluster Director. Zambia, Zimbabwe, Malawi and the Democratic Republic of Congo (DRC) are the four countries

Rassie van Zyl, Goodyear’s Cluster Director of its Central Africa Cluster

grouped together into Goodyear’s Central Africa Cluster. The team is led by Rassie van Zyl and

The Central Africa Cluster, where Goodyear has a significant footprint, is not only known for its tourist attractions such as the Victoria Falls, but also for its big mining industry - particularly the large copper mines in Zambia. Above is a copper mine in the Bandwa area in northern Zambia – the most developed and economically the strongest country in the cluster



includes area sales managers, finance managers, a Human Resources Manager and a Cluster Demand Planner. The cluster’s head office and the hub of this region is in Lusaka, Zambia.


“Of the four countries, Zambia is the most developed and economically strongest, with the biggest growth. From our warehouse facility in Lusaka, we distribute into all the surrounding countries. We also have a retreading facility in Lusaka, which is capable of remoulding OTR (off-the-road)/earth mover tyres for underground mining,” Rassie explains. “Zambia still has a big mining industry, with particularly large copper mines in the north. All the copper is exported by road, which created a large commercial/truck market. Added to this, the southern DRC’s requirements are all imported by road through Zambia, so the truck corridors are very busy and unfortunately some roads are very poor.” Over time, however, the consumer and commercial markets have developed beyond that of the mining industry, and today the Zambian market consumes approximately 50 000 passenger tyres and 5 000 truck tyres per month. The country is strategically divided into north and south, and Goodyear has an area sales manager servicing both areas.

Brand building with independent retailers

Goodyear’s Zambian retail branches are in Mazabuka, Lusaka, Ndola, Kitwe and Solwezi. “Originally Trentyre Zambia’s strength was in the mining in-

dustry. Indeed, Goodyear was represented through Trentyre retail outlets in Zambia, Zimbabwe and Malawi for a number of years. However, Goodyear’s future strategy is brand orientated and our aim is to become a household brand name throughout the cluster.”

Challenges & opportunities

‡0DODZLLVPDQDJHGE\RQHDUHDVDOHVPDQDJHU Goodyear currently wholesales mostly consumer tyres in Malawi. “The country has recently gone through a political change and there are high expectations for economic improvement soon.” ‡=LPEDEZHLV´JRLQJWKURXJKGLIILFXOWHFRQRPLF challenges because of the current political situation.” The company has Trentyre retail outlets in Zimbabwe. ‡'5&RIIHUV´WKHELJJHVWJURZWKRSSRUWXQLW\LQWKH cluster. There is increased interest from locals in a number of areas in this large country to develop a peaceful and economically sustainable future. Goodyear has identified well-established and legitimate retailers in the southern region who will be distributing our product. We also have healthy relationships with a number of mining companies in the DRC.” Lize Hayward, Goodyear Tyre & Rubber Holdings (Pty) Ltd Tel: (041) 505-5421, Fax: 086-614-0368 Email:









Global Leaders in Bulk Materials Handling


Tenova TAKRAF is a key supplier of bulk handling solutions, having provided hundreds of complete systems and equipment to clients all over the world. Our services range from feasibility studies to turnkey and project-managed materials handling contracts, backed by an efficient after-sales service. From an African perspective, our extensive bulk materials handling track record includes, inter alia, supplying the Mozambique coal sector. We have also supplied one of the longest single flight belt conveyors in the Southern Region of Africa, including the largest number of Rapid Train Loading Systems and dome covered circular stockpiles in Southern Africa.


Total technology solutions for mining, bulk materials handling and minerals beneficiation.

1 Kramer Road, Bedfordview, Johannesburg, South Africa Phone +27 11 201 2300 â&#x20AC;&#x201C; Fax +27 11 455 4547 â&#x20AC;&#x201C;


BULK HANDLING INsupplier AFRICA 2013 TENOVA is a worldwide of advanced technologies, products and engineering services for the iron and steel and mining industries

Bulk in Africa Guide 2013  

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