EXPERIENCING DIFFICULTY Bell customers contracted to platinum and chrome mines, particularly in the Rustenburg area, are under severe strain
South African manufacturers are not immune to the negative consequences of ongoing labour unrest in the mining industry, says heavy equipment manufacturer Bell Equipment Sales South Africa (Bessa) sales and marketing director Terry Gillham.
“There is no question that our mining industry has taken strain with the ongoing labour unrest, coupled with depressed commodity prices. This is currently a very challenging industry and, as a result, many mining houses have cut back on capital expenditure and laid off labour, and we are not immune to that,” he says.
Gillham points out that Bell customers contracted to platinum and chrome mines, particularly in the Rustenburg area, are under severe strain, owing to the protracted strike in the platinum sector.
“Mining houses and contractors are anxious and taking a ‘wait and see’ approach before committing to capital expenditure,” he adds.
The April figures of the Construction and Mining Equipment Suppliers Association indicate that, across all the equipment sectors in which Bell competes, the number of units sold in the country decreased by more than 30% in April, compared with March figures.
Gillham explains: “Bessa enjoyed a respectable first quarter, given the current environment, and has been steadily increasing its market share over the past six to eight months. However, April and May were challenging months and it remains to be seen whether this was a result of the disruptions caused by the public holidays during that time, coupled with the national elections, or whether it is indicative of deeper, more complex issues.”
The weakness of the rand has put further strain on customers as the price of equipment increases and, while Bell is well positioned in the industry as a South African manufacturer, there are still cost increases in some of Bell’s equipment, as certain components cannot be sourced locally.
Further, some machines are imported and sold under distribution agreements, explains Gillham.
He adds that customers who are in the market for new equipment understandably want the best value proposition. “As a local manufacturer, we try to be as cost competitive as we can and our philosophy has always been to offer reliable, lowest-cost-per-tonne equipment.
It was this philosophy that prompted Bell Equipment to develop and manufacture the B60 60 t truck, which was introduced at bauma Africa in September, he highlights.
The B60 takes articulated dump truck (ADT) design to a new level and opens opportunities for ADT specialists in a domain that was previously only contested by rigid haulers, says Gillham.
He adds that prototype testing of the B60 is progressing well and that the company is pleased with the results so far.
“We will produce a few more prototypes this year, which will also be included in the accelerated prototype testing programme,” he concludes.