Using local skills in mining projects across Africa can have hugely positive effects for both the mining house, mining services suppliers and for the local economy itself. As a result, this should become a key focus for South African companies when exploring new regions. 

This is according to Mark Benning, Managing Director: North East Africa, at AEL Mining Services, the largest supplier of explosives technology and initiating systems in Africa, who says there has been an assumption in the past that the products and infrastructure for large scale mining projects need to be developed in South Africa and shipped to the project site. "There is a mindset when working in some African regions that no one will be able to produce what you need locally, so mining services companies come back to South Africa and then ship the goods, often at a great cost to the client."

"For example, at a project in Egypt in 2012 - an upgrade of a gold mine in Sukari - we needed to construct two 70 tonne silos. Previously, we had only had silos this size at our main South African site in Modderfontein. However, we discussed the scope of the project with an engineering company in Cairo and engaged them to construct and erect the silos."

"This meant that the silos were constructed at a far cheaper cost to the client by negating the need of having to ship them to the site. Furthermore, by constructing them on-site the risk of damage during transportation was also minimised and the delivery time shortened considerably, providing far more flexibility in terms of start dates. Timing is crucial on large scale mining projects, so to be able to shorten this by such a large margin also means the mining house can start production sooner, thereby making the project profitable earlier."

In addition, if a South African mining services supplier buys products on behalf of a client and ships them to the destination it can add an additional cost of between $4 and $5 per kilogramme that is being shipped. The cost of this on two 70 tonne silos, as well as all other infrastructure that needs to be shipped, adds a considerable cost to a project.

Benning notes that utilising local skills is not just restricted to the infrastructure of the project concerned but also the element of human capital. "You can find skills, experience and products locally if you look for it and often this will once again be far more cost effective for the client than only bringing in foreign contractors."

He says that language is not necessarily an issue. "While it helps to have a common language the reality is that the senior contractors used in a region will often speak English and can communicate to other employees. Further, the more work you actually do in-country, including making use of local skills, the more positive impact you have on the economy and for the citizens."

Benning says the fact that the safety of employees is also crucial to mining projects, can mean that some suppliers only want to make use of their own employees who have already been extensively trained in health and safety. "It is a challenge to instill a sense of safety among local e in employees in a new region; however, on the Sukari project we had a wide range of South Africans and Egyptians, all from different backgrounds, who worked together and took the message of safety on board. Every day started with a meeting that created awareness of the importance of safety, ensuring that there were no recordable accidents. 

"If a region is a new to a company, it is easy to fall into the stereotypical way of doing things by spending money in South Africa and then shipping goods; but one can often find a range of local suppliers, products and skills. The more you utilise in-country, not only the easier it is to run the business, but the myriad benefits you also bring to the client and the local economy," concludes Benning.

AEL Mining Services
Modderfontein, Johannesburg
South Africa, 1645
Tel: +27 11 606 0000
Fax: +27 11 605 0000
www.aelminingservices.com