In the stope
Manie Kriel : driving diversification
Diversification has been key to the success of the strategy followed by mining consultants VBKom , writes Leon Louw .
Your company VBKom has followed a diversification strategy ever since you and four other mining engineers from the University of Pretoria decided to start your own mining consultancy 10 years ago . What was the initial focus of the company ?
When we developed the business plan for a mining consultancy house , our initial focus was on opencast mining services specifically . Although all five of us had a strong underground background , we felt there was a big gap , and a big demand , especially in Africa , for consultants in the opencast environment . Our research suggested that most of the mining companies in Africa used Australian or Canadian contractors and consultants for surface projects . On the other hand , the underground space in Africa was well known and well covered by South African underground expertise , with years of experience in deep-level mining . So , we were initially known as opencast specialists . Over the years , however , we have diversified operationally and geographically , and ironically , underground mining has become a key component of our wide range of offerings .
The company started out in 2008 — probably the worst time for any miningrelated venture to see the light , bearing in mind the near meltdown of the global economy . VBKom made it through those tough times ; what has been the extent of the recovery since then ?
The year 2008 was extremely difficult , but we made it through the worst downward cycle in the past 10 – 20 years . Soon after the 2008 slump , there was an upward cycle again , followed by another downward cycle that started in 2013 . Although not completely unscathed , these downward cycles strengthened the organisation and we are excited about the next few years . Last year , we experienced our third-best year ever , and hopefully this year will be even better . We started seeing an upswing in March and April last year . The most encouraging trend is that our traditional clients are looking at exploration projects again . This gives us a lot of scope and courage for the new year and will enable us to embark on more long-term planning for the future .
You really drove the diversification strategy hard . What other services did you add to what you initially set out to do ?
In 2009 , the company added a project management and project support service to the operation . We identified and appointed an experienced project manager . Most mining houses do have in-house project management teams ; however , we offer them support and focus on the less attractive activities like gathering data to enable the project manager to keep his or her finger on the pulse .
Over time , we started employing industrial engineers and today , we have a very strong industrial engineering team , which are system and process driven . To streamline procedures , we use this expertise , combine it with our mining and technical knowledge , and in that way optimise mining processes . We do a lot of simulation work in that space . It is attractive for our clients — not only to understand the theory of the mine design but also to see the design in action . A 3-D view enables us to understand where the bottlenecks are and where can we improve the process . In addition , we added a strong financial modelling product . So , although our angle is very strong technically , it is backed up with a robust business-driven approach . In other words , we aim to improve the overall business , not only the technical aspects .
You mentioned earlier that there is a renewed interest in exploration . Does this include South Africa ?
The past few years have been really tough for geologists and exploration companies with close to zero exploration opportunities . But there has been an upsurge in exploration activity recently , especially in South Africa , where companies have not been investing in exploration for a long time . The focus is mostly on the iron and manganese ore bodies in the Northern Cape . An interesting project that we have been involved with is Gauteng-based Adelaide Ruiters Mining and Exploration ’ s ( ARME ) Zandheuvel phosphate mine close to Saldanha Bay in the Western Cape .
[ 26 ] MINING MIRROR MAY 2018