One of the key concerns for end-to-end supply chain management company ITM Katope South Africa (SA) is the “shortage” of junior mining companies in South Africa – with less than 20 listed juniors.

“We find that, especially for the juniors that fall under the broad-based black economic-empowerment umbrella, the enormous capital required for exploration presents a huge stumbling block,” says ITM Katope SA country manager Loraine Potgieter.

Consequently, smaller mining supply chain companies, such as ITM Katope SA, face a similar challenge, as do all new entrants in the industry that experience difficulties in competing with global companies, notes ITM Katope SA operations manager Adelle Pelser.

“Although localisation in the African mining industry has started to gain traction, multinational corporations retain primary control of the supply chain,” states Potgieter, who adds that political and economic uncertainties only add to the challenges faced, causing instability, which adversely affect companies and supply chains.

Another concern with African mines is that most of the employees at the mines establish companies that supply certain products or services while remaining employed by these mines.

“This creates competition within the mine and also closes the doors for so-called outsiders, which makes it so much more difficult for companies, such as ITM Katope, to do business,” Pelser tells Mining Weekly.

The company offers full services for the mining industry, including personal protective equipment and the supply of mining-related equipment as part of its strategic sourcing services into Africa.

Originally founded in the Democratic Republic of Congo (DRC) by Sylva Monga, its sister company, high-density polyethylene specialist Geo Katanga, is primarily focused on the mining industry in the DRC and in South Africa.

Beyond South Africa, ITM Katope has expanded into six other African countries where it is not exclusively committed to mining. For instance, in Nigeria and Rwanda, it recruits for the banking industry and conducts developmental training projects for some Ministries in Nigeria.

In Angola, the company’s main focus is on training and providing transport for mining companies.

Meanwhile, in Tanzania, ITM offers merchant training and onboarding in the banking industry and it supplies cement to and from Tanzania.

Potgieter told Mining Weekly last month that ITM aims to be the supplier of choice for other African countries.

With the larger African economy revolving around the mining industry, the company would like to increase its market share in the industry, Pelser noted.