MAILA MASETLWA Mines can no longer afford to import high-quality products, opting for high-quality, cost-effective locally produced alternatives instead
Photo by: Nicholas Boyd
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.