Local drill equipment provider Schwalbe will place greater emphasis on promoting its self-manufactured Orange rock-tool equipment range and will introduce new products to the Botswana mining industry to meet clients’ growing demand, MD Jonathan Betsalel tells Mining Weekly.

“This year, Schwalbe intends to expand the sizes and configurations of its Orange drill bits and promote the Orange threaded drill equipment. The drill bits and equipment are being used by South African mines and are available to the Botswana market,” states Betsalel.

Schwalbe has been supplying down-the-hole (DTH) drill equipment to the Botswana mining industry since 2008 and, in subsequent years, has added pneumatic hammers to its product offering in the country.

However, Betsalel says the company mostly supplies drill bits, adding that Schwalbe’s market-supply penetration has increased, on average, by about 20% year-on-year since 2008.

As the company has no offices in the country, it sells its mining equipment predominantly to Botswana-based wholesalers, which, in turn, supply the mines.

Product Offering

Schwalbe’s equipment, which is manufactured in China, includes two brands of DTH equipment, one being its own Orange range.

“Our DTH equipment is used by mines, industrial private contractors and water-well drill operators in Botswana,” Betsalel points out.

He adds that Schwalbe’s products are manufactured in accordance with ISO 9001:2008, which stipulates the criteria for a quality management system.

Confronting Challenges

Betsalel tells Mining Weekly that breaking into Botswana’s equipment supply industry can be difficult for newcomers, as many wholesalers and mining houses have long-standing business relationships with other suppliers.

“Companies must therefore market directly to the wholesaler or mining house, otherwise there is little chance of successfully breaking into the market,” he emphasises.

“There is no substitute for going to Botswana and learning about the nature and culture of the industry. We have been doing this since 2007, a year before we launched our products in Botswana.”

Betsalel adds that, for Schwalbe, it was “imperative” to visit the country to learn about its drilling conditions and establish genuine business relationships with potential clients.

“We travel regularly to Botswana to ensure that our customers’ equipment requirements are met. We also touch base with customers to see how we can bolster our existing pro- duct offering and, if need be, add new ones,” he states.

Meanwhile, Schwalbe attended the inaugural Electra Mining Botswana event last year, which took place from September 3 to 5 at the Gaborone Fairgrounds.

“We were somewhat disappointed in the event’s turnout. However, we do realise that this was the first time it was held in Botswana,” says Betsalel, adding that this type of event is important for a developing market and that it can only expand in the future.

Despite Electra Mining Botswana not being as successful as expected, Betsalel still advises companies to promote their products directly to the Botswana market, instead of promoting their products in South Africa in the hope that Botswana-based companies will become aware of them and ultimately result in sales.

“The barrier to entry to Botswana can be rather daunting, but Schwalbe and our partners have persisted and, fortunately, have been successful in carving out a loyal cus- tomer base for ourselves in the country,” he says.

Betsalel adds that, while 2013 was “slightly slower” than other years for the Botswana mining industry, the company still maintained a 20% yearly growth mark.

Additionally, he says that significant expansions, expected to take place in Botswana’s diamond sector by diamond companies, such as De Beers and Debswana, have not yet materialised.

“The present trend in the Botswana mining industry is for mines to roll out their operations in gradual phases when conditions in the country are favourable. One therefore experiences waves of demand, which sometimes impacts negatively on the demand for new equipment in the sector,” he concludes.