AUCTIONS Changes in the auction rules in mining resulted in enhanced participation in the auctioning process
Changes in auction rules with regard to mining have led to enhanced participation in the auction process and have provided a fillip for the auction process that has resulted in more mineral blocks being auctioned successfully, says auction house Riley Auctioneers director Kwanele Boltina.
These rules are in line with the Consumer Protection Act, No 68 of 2008, that works in favour of both the buyer and sellers at auctions.
It is expected that the bigger effect of these changes will be felt in 2019 and 2020, with some of the auctions possibly spilling over from 2018 to 2019.
According to Boltina, mine auctions meet its clients’ needs effectively. It needs an approach suited to the increasingly digitised world, as well as its global client base, and it helps support the efficiency of sourcing activities.
Mining auctions also offer opportunities to clients while providing a fair and competitive platform for sales. “Our customers have access to bidding data throughout an auction so they don’t need to worry about the risk of overextending themselves financially to secure a parcel. Looking back over the past ten years, we can be very proud of our achievement,” he says.
He adds that the vast majority of producers, and even governments, have adopted auctions for at least a part of their overall sales mix.
Items often sold by mining companies include titanium and stainless steel ball valves, low-profile utility vehicles, stores and contents graders, as well as Toyota Land Cruisers and transformers.
Boltina adds that the current economic climate has resulted in the wider prevalence of auctions across a spectrum of industries in the country, since auctions offer a quick turnaround for urgent sales, while buyers are increasingly on the lookout for bargains.
However, he mentions that there is a need for more representation of transformed and black-owned auction houses, such as Riley Auctioneers, to “level the playing field”.
“The auction industry is a very monopolised space and, sadly, is still predominantly white-owned; however, with the current state of affairs and the new Mining Charter, we are hoping for a more transformed and competitive landscape in the near future, with equal and impartial involvement for all players,” he concludes.