With a focus on encouraging equipment sales this year, online equipment marketplace Clear Asset is hoping to secure several high-value pre-arranged meetings at the 2015 Investing in African Mining Indaba.

The company was formed in 2012 and has attended the indaba ever since.

Clear Asset MD Ariella Kuper says the Mining Indaba events have stood the company in good stead, owing to its popularity.

“The caliber of speakers and visitor-exhibitor engagements are exceptionally valuable, enabling us to build new and cement existing relationships.”

She adds that engaging with existing and prospective clients “under one roof” will be the company’s focus this year, and that at the indaba, the probability of engaging with global clients is justification for Clear Asset to invest in attending the event.

In addition to expanding its relationships with existing clients, Clear Asset will also investigate other areas where its online auction solutions could add value, such as base metals and redundant equipment, including tungsten drill bits, copper and manganese liners.

There is also the opportunity to work closer with additional mines, located throughout Africa.

Further, high-value equipment for niche markets is also increasing, such as draglines, of which Clear Asset currently has four available for auction from major mining houses.

Maritime equipment sales are also increasing, according to Kuper, as tonnage needs to be removed to make way for new vessels.

Clear Asset recently launched a marketplace for agricultural equipment, with support from machinery manufacturer John Deere distributor Afgri.

Meanwhile, during 2014, Clear Asset hosted auctions for eight of South Africa’s ten largest mining companies. More than R250-million worth of equipment was sold in the same year, which Kuper says cemented the company as the leading online marketplace for the buying and selling of mining and mining-related equipment.

Notable sales include mining equipment company Bucyrus’ 1 570W dragline machine. “This was the largest piece of equipment sold in South Africa in more than 20 years,” she tells Mining Weekly, adding that a new machine is valued at $100-million.

More than 50% of Clear Asset’s customers were overseas buyers from Australia, the United Arab Emirates, Saudi Arabia, the UK, the US, Europe, Jordan, Peru and Southern African Development Community countries.

Additional achievements include the company being awarded the Pela Plant, in a liquidation matter, by South African bank Absa, and exclusive service-level contracts, ranging from one to three years, with Sibanye Gold, Diesel Power, Anglo American and other major mining houses.

“Clear Asset has demonstrated the viability of online asset sales through an expertly managed outsourced process,” says Kuper. She believes that the company’s systems, staff and processes have delivered good results for sellers, while providing a transparent solution for all parties that will serve the company well this year.

“We anticipate building on our dominant position into Africa, with an emphasis on capital efficiency and freeing up redundant equipment to meet capital expenditure requirements,” she adds.

South African Mining Industry
Kuper notes that an important aspect to consider is that South Africa holds about 80% of the world’s known manganese reserves and 72% of the world’s known chromite-ore reserves. It is also one of the top ten aluminium and nickel producers worldwide, as well as one of the top three chrome ore and manganese ore producers worldwide.

Further, in 2013 – before the lengthy platinum-industry strike in 2014 – South Africa accounted for about 72% of global mined platinum production and, together with Zimbabwe, hosts about 80% to 90% of the indentified global platinum resources, notes Kuper.

Meanwhile, she notes that, while Russia is the largest producer of palladium, with 39% of global production, which is primarily a by-product of nickel and copper mining, South Africa contributed 37% to global palladium production in 2014.

“Despite South Africa’s labour unrest, the country remains a vital link of the long-term supply chain for these metals, and its resources will not easily be replaced by those of other regions,” says Kuper.

Promoting investment in mining in South Africa is in the interests of the country’s overall stability, she adds, noting that West Africa has recently drawn much attention, owing to the Ebola virus outbreak and other dangerous factors, such as extremist groups sabotaging infrastructure, vandalism and kidnappings.

“South Africa offers a good opportunity with lower risk and a dual economy, as well as first-world practices, good infrastructure and skills,” concludes Kuper.