https://www.miningweekly.com

Local company outlines aspirations, challenges bigger players

RapX director and majority shareholder Maila Masetlwa discusses the company’s strategy of making inroads into the local and global mining equipment suppliers sector. Camerawork: Nicholas Boyd. Editing: Lionel da Silva

22nd July 2016

By: Ilan Solomons

Creamer Media Staff Writer

  

Font size: - +

Local mining solutions provider RapX is seeking to challenge the dominance of multinational mining equipment and services providers in the South African coal sector while exploring opportunities abroad.

RapX director and majority shareholder Maila Masetlwa says it is difficult to compete with existing suppliers to local mines, as many of these relationships have been developed over several decades. However, by supplying a high-quality, cost-effective offering, the company is making significant inroads into the sector and is “disrupting the status quo”, he adds.

The challenging economic climate, low commodity prices and the decline in the value of the rand against the US dollar have provided RapX with new opportunities. Masetlwa notes that mines can no longer afford to import high-quality products, opting for high-quality, cost-effective locally produced alternatives instead.

He points out that the company sources the bulk of its steel from local producers and manufactures its products at RapX’s three factories in the East Rand region of Gauteng. “This is in line with government’s aim to ensure that full downstream beneficiation of South Africa’s natural resources is realised, which is outlined in the national Industrial Policy Action Plan.”

Masetlwa informs Mining Weekly that the company is establishing the RapX Academy for Sustainable Skills over the next six months to provide training for unemployed people in mining artisan skills such as welding and fitting.

This will be done in conjunction with local government in Gauteng, which has signed a memorandum of understanding with RapX to contribute R15-million towards the establishment of the centre.

Additionally, he highlights that the company’s enterprise development initiative provides opportunities for young unemployed people living in and around Mpumalanga’s coalfields to learn new skills by joining the company’s consumables management and coal pick reclamation service team.

He says the programme is closely linked to mining companies’ social and labour plans, as it ensures impactful long-term and sustainable local economic development.

Although RapX’s primary customer base comprises local coal mines, it is also exploring opportunities in the local platinum sector and intends to soon establish equipment and service supply agreements with mining companies operating in the rest of Africa.

Masetlwa reveals that the company is also targeting the Australian coal mining sector, where it believes there is “significant potential” for its solutions. He says the RapX’s high-quality offerings and the weakness of the rand against the Australian dollar are positives on which the company can capitalise.

“We are in discussions with an Australia-based South African expatriate-managed entity to assist us in entering the Australian mining equipment supplier sector.”

Further, Masetlwa remarks that RapX’s long-term goal is to supply its products and services to Mongolia, which is an emerging destination for coal mining companies.

According to Fitch-owned research firm BMI, Mongolia’s mining-sector growth will accelerate on the back of foreign mining investment, a robust infrastructure framework and the country’s strategic close proximity to major export markets such as China.

BMI currently estimates Mongolia’s mining industry to be worth $2-billion, which it predicts will grow to $4.1-billion by 2020.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

Comments

Showroom

Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (15/03/2024)
15th March 2024 By: Martin Creamer
Gold, hydrogen, mining boost make headlines
Gold, hydrogen, mining boost make headlines
15th March 2024
Magazine round up | 15 March 2024
Magazine round up | 15 March 2024
15th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.17 0.202s - 95pq - 2rq
Subscribe Now