With most major mining firms already on its customer list, blasting and excavation company B&E International – based in Kempton Park, South Africa – has developed a solution for start-up miners that likely need to conserve their cash flow in the early days of operation.
B&E International MD Dewald Janse van Rensburg says the company’s engineering capability and operational experience allow it to assume some of the start-up risk faced by new mines, by designing and running a plant on a toll basis for the customer.
“We can design, manufacture and commission a plant to a client’s specifications and then operate it on a ‘tonnage rate’ for an agreed period,” says Janse van Rensburg, explaining that the customer pays for material processed without having to pay for the equipment upfront.
This mutually beneficial arrangement typically builds the capital value of the plant into the rate-per-ton, he adds, so that this rate ensures the throughput is delivered while the capital portion is steadily paid off.
“The advantage for the customer is that we carry some of the start-up cost and they get the assurance that the plant will function effectively as a vital part of the production process.”
Ownership of the plant reverts to the mine after the capital is repaid through this toll fee, Janse van Rensburg adds, noting that the customer can even decide to pay off the residual value of the plant at an earlier stage, if its cash flow is good enough and it is confident of its own in-house expertise.B&E International,
acquired by construction company Raubex Group in 2008, has more than 40 years’ experience.
Today, B&E International mines about 22-million tons a year for some of South Africa’s largest mining companies, and crushes, screens and processes about 12-million tons a year of ore and aggregate.