Multotec Sets its Sights on Expanding African Business

Multotec has set its sights on extending and entrenching its business throughout the African continent, regardless of the challenges presented by foreign-owned mid-tier mining companies who give preference to their own country’s suppliers.

Thomas Holtz, CEO of the Multotec Group, says: “The fact remains that these operations must be serviced here in Africa and our infrastructure is well set up to do justice to this supply chain.

“Multotec is gearing up to become the preferred equipment and service provider in Africa. We already have branches in Zambia, Mozambique and we are servicing Central and West Africa out of our branch in Accra, Ghana. Additional branches will be established as business volumes increase. If specialist input is needed to assist local staff, we are able to dispatch the appropriate personnel to any African location within 48 hours.

“This network is supported by an extensive South African infrastructure which includes service crews — specialising in servicing our range of equipment — available to mines at short notice.”

Holtz adds that although many mine plants operating in remote areas of Africa are self-sufficient by virtue of their geographical isolation, Multotec is still able to contribute in terms of plant optimisation.

The group has proved its capabilities in this regard at First Quantum Minerals’ Kansanshi in Zambia, the world’s eighth largest copper mine, where it supplies screen products, mill liners and some wear components, as well as service personnel from its local branch in Chingola.

“This very successful long term relationship with the mine reflects our commitment to what we term ‘customer intimacy’, which is fast becoming a key differentiator for us in the marketplace,” he says. “The concept reflects our full technical capabilities, coupled with our world class consumer products. We are able to go onto a client’s site with a professional team of qualified metallurgists and experienced ex-mine personnel and partner with the client to develop individual solutions that reduce their total cost of ownership and improve their plant efficiencies.

“We are working hard to establish lifetime partnerships like this with our clients in regard to their plant operation. Our commitment takes into account the inevitable ups and downs of commodity pricing— we’re with them for the long haul.”

Driving costs down

Holtz says that Multotec’s response to competition from the multi-national companies has been to drive costs down.

“However, our main differentiator is not price,” he stresses. “We are succeeding in reducing costs by developing products and technology that keep pace with our customers’ applications.”

Recent developments include technology for dewatering fines in coal plants, the introduction of equipment for water treatment plants and outsourcing of steel fabrications (on a limited basis). Multotec has also introduced Siebtechnik centrifuges for coal slurries in South Africa with much success.

Commitment to cost control is also driving ongoing research into materials of construction and design which achieve reduced wear. The group has introduced an innovative range of ceramic products for wear resistant solutions from the standard tile range, through to complex engineered designs. Combined with composite modular systems, these ceramics provide full wear lining solutions for the materials handling and process industries. Multotec is also developing a new stainless steel wedge wire for cylinders and screens, as well as modular screen panels which optimise the efficiency and life of the screen.

The group has accelerated the implementation of rand per ton maintenance contracts into its business model and is currently negotiating an extensive contract of this kind with a major diamond producer across Multotec’s entire product range.

Holtz says the rand per ton maintenance model has been applied extensively in recent years and has proved itself as a win-win business approach with major clients such as Anglo American, Kumba Iron Ore and De Beers. Multotec’s most extensive application of this maintenance contract model is in place at the Phola coal beneficiation plant at Ogies, Mpumalanga, a joint venture between BHP Billiton and Anglo Coal.

“This kind of agreement means that we are no longer just selling units. Instead, the contract comprises a fixed and variable portion based on product consumption — the tonnage of product required to operate a given plant,” he explains. “Pricing is based on tonnage processed.”

Multotec’s innovative Hawkeye Internet-based programme is increasingly coming into play in the company’s maintenance contracts, extending into a wider portfolio of the company’s consumer products. Hawkeye promotes optimum condition monitoring, providing accurate reporting on product lifecycles and replacement rates so that personnel can predict service intervals, which also optimises inventories of consumables. The system covers the range of consumables on a plant, including parts. Being web-based, the programme allows customers to log into their company data and draw accurate, real-time information on these products.

Cautiously optimistic

“There is no denying that, as a result of the global financial crisis, 2009 and 2010 were tough years for us,” Holtz says. “Sales of capital equipment were hard hit, but fortunately the consumable equipment orders kept on coming. This year has seen a significant increase in activity from all sectors of mining, with a lot of new projects coming on stream both here and in the rest of Africa, which makes us cautiously optimistic that we are going to have a great year across the spectrum of our engagements on the African continent.

“And we are determined to use our well established platform of products and services and our world class reputation to tap into the massive potential of this market in the months and years ahead.”

Multotec has extensive manufacturing capability in South Africa and the entire organisation is ISO 9001:2000 certified. Multotec is represented globally through various offices, agents and subsidiaries and is represented on all six continents.