With continued pressure to boost coffers, free up storage space and reduce stock of redundant and idle assets, structured disposal programmes are readily gaining momentum throughout the mining sector in Southern Africa.

Mines across the country have now turned to online mining auctions to successfully dispose of their assets, for whatever their reasons may be, with millions of rands of stock being sold to both local and international buyers over recent months. One such player in the online mining auction space, Clear Asset, has sold R100 million in mining assets via their online auction platform over the last financial year. As a pioneer in this fairly new space, this is an exceptional achievement.

Their latest auction consisted of stock from Anglo Gold Ashanti, Anglo American Platinum and Lonmin mines, and the promising results achieved shows increasing demand. Comments Ariella Kuper, MD of Clear Asset, ''From spares that achieved 168% of starting bid value for Anglo Gold Ashanti on last month’s auction, to the 8th auction for Anglo Plat with results ranging from 93% of reserve to over 200%, both buyers and sellers seem to be benefitting.''

What is now drawing both buyers and sellers to online mining auction platforms? Accessibility to a list of good quality stock seems to be the biggest draw card, but the fact that buyers can view and buy stock without ever leaving their office or home, is a huge advantage. Evidence of this can be seen in the amount of international buyers purchasing mining equipment online from South Africa. ‘’We have buyers from all over the world - from Europe to Dubai, to across Africa and even down to Australia,’’ says Kuper. ‘’Time zones and geographical borders are no longer factors when it comes to buying or selling such assets.’’

‘’With the mining sector making up a solid 5.9% through direct contribution to GDP in 2011, and 18.7% if we consider its indirect contribution (Source: IDC & reserve Bank), the pipeline of assets as mines de-fleet,upgrade, free up working capital or close marginal mines, seems to warrant this more accountable disposal structure. Sellers also appear to embrace this disposal method as it meets key criteria for listed companies.’’

The next online mining auction, taking place on 26 September, offers an extensive array of assets including an entire Rod Millfrom Lonmin Marikana, an entire monorail in prime condition from Anglo PlatUnion South, a variety of Toyota, Mercedes, Nissan, TATA and Ford LDV’s from Anglo Gold Ashanti, a CAT D6R from Anglo Plat RBS through to tanks, pumps and conveyor gearboxes from Lonmin UG2. In addition, LDV’s, a Mercedes Benz AMG 2010 and a BMW X5 2010 will be offered from a legal instruction.

Clear Asset focuses primarily on mining and related equipment, and commenced business in September of last year.
 www.clearasset.co.za or contact Ariella Kuper on 079 899 9998.