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South African business sees opportunities in Ghana

12th April 2013

By: Ilan Solomons

Creamer Media Staff Writer

  

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Innovative screening and vibrating- equipment solutions supplier Aury Africa, based in Sebenza on the East Rand, aims to make further business inroads in Ghana.

Aury Africa MD Mark Houchin tells Mining Weekly that the company has attended roadshows in Ghana over the past two years to promote its products. “The most sought-after products include our range of vibrating screens and screen media including polyurethane panels, woven and wedge-wire products for the gold mining sector.”

He adds that Aury Africa currently aims to further provide innovative screening and vibrating-equipment solutions and services to the African mining market through its team of mining professionals.

“Aury Africa is carrying out a feasibility study, which will be concluded in about three months, pertaining to the viability of having a warehouse in Ghana,” states Houchin.

“Aury Africa takes advantage of the economies of scale, provided by large-scale Chinese production, from our ISO 9001- accredited sister company, Aury Tianjin, with the assistance of technical know-how developed in Australia and South Africa,” he explains.

Further, he points out that the company has visited several quarries where its woven wire screens are already in use. The company also sells woven wire screens to the Chirano gold mine, in south-west Ghana, which has underground and openpit gold operations. The mine is 90%-owned by Toronto-based Kinross Gold, with the remainder being owned by the government of Ghana.


Challenges

Houchin says that Aury Africa’s ventures into Ghana have not been without challenges. “For example, many of the mines in Ghana already have existing business relationships with companies from Australia; however, there are still great business opportunities, as we offer products at a more competitive price.”

He notes that building a company presence in Ghana is also challenging. “Aury Africa representatives were in Ghana about ten months ago,” states Houchin, who believes that the company needs a full-time representative to improve and strengthen business relations.

“Currently, the amount of business done with Ghana-based companies is small and comprises only about 5% of the company’s total revenues,” he adds.

“The company previously had representatives in Ghana; however, the agents could not give their full attention to our business, owing to multiple interests, which hampered the company’s ability to market itself effectively,” says Houchin.

The company is currently looking to appoint a credible agent, based in Ghana, who will deal exclusively with Aury Africa’s interests. “The company realises that it needs to appoint a dedicated person on the ground to ensure that there is regular contact,” he adds.

“We strongly believe our competitive edge lies not only in the quality and durability of our products, but also in the competitive prices of our products,” enthuses Houchin.

He notes that another challenge is foreign exchange. “Aury Africa has suffered somewhat financially from the weak rand, as we pay our Chinese suppliers in dollars. However, over the last year, despite the weak rand, the company had a small foreign exchange (forex) gain. In a trade of R30-million, Aury Africa made about R30 000, which amounts to a forex gain of about 1%.”

Additional Business
The company is considering the export of additional equipment to Ghana, such as intertank screens and crushers, as there is a demand for crusher parts and spares.

“We have also quoted companies on perforated plates, which we are considering exporting as well,” adds Houchin.

Aury Africa will attend the mining trade shows in Ghana and Senegal, which are scheduled for later this year.

“This will also give us a better understanding of where the West African mining market stands,” he concludes.

Edited by Megan van Wyngaardt
Creamer Media Contributing Editor Online

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