Rising commodity prices reinvigorate the potential of new mining projects, but raising enough finance still remains a challenge; however, crushing and screening plants specialist B&E International has a toll model that reduces capital demands on mining entrepreneurs.
“This concept appeals to the junior miners, whom we see as our target market – or those who are new to the mining business – and who often find it difficult to raise all the necessary capital for starting up once feasibility studies have proved a project viable,” says B&E International director of operations Chris Weideman. “They may also lack the in-depth expertise required to establish and operate a processing plant cost-effectively and efficiently; that is where we come in.”
For more than 40 years, B&E International has been developing its capacity to design, build and run process plants, and has the experience of operating in many countries, mostly in sub-Saharan Africa. “The commodities that we have gained the most experience in are diamonds, coal, copper, manganese and iron-ore,” adds Weideman.
The construction sector is also a key focus for B&E International, which builds and operates aggregate crushing plants for a range of applications.
The company’s extensive manufacturing facility in Gauteng allows it to construct a plant according to customer requirements almost entirely in-house. By controlling the whole value chain, B&E International explains that it is able to raise quality levels, limit costs and shorten lead times.
“We have engaged in several successful contracts where we undertake the design, construction and operation of a plant on behalf of a mining customer, so that they can focus on other important aspects of mining,” says Weideman. “We retain ownership of the plant and charge a toll rate depending on the production output. This removes the financial burden of the mining company having to pay upfront for a processing plant and reduces the risk of that plant underperforming to the detriment of the whole project.”
He says customers are also able to take back ownership of the plant after an initial five- to seven-year period, in return for a residual payment, the value of which is based on an amortisation formula.
In addition to its head office and branches in South Africa, B&E International has permanent bases in Namibia and Botswana, has worked in countries, including Uganda, Kenya, Tanzania, Malawi and Zambia, and has also sold equipment into the Democratic Republic of Congo.