Black-owned companies servicing the mining industry are faced with challenges, owing to the demand created for their services by the existing Mining Charter, which stipulates the need for black empowerment of emerging companies servicing the sector, says materials handling and hauling expert Ncamiso Mining.

Of the Mining Charters’ nine pillars, the fourth pillar highlights procurement and enterprise development. It states that companies are required to achieve a certain level of procurement spend at black economic empowerment- (BEE-) owned entities in order to encourage the development of such suppliers in the industry.

Ncamiso Mining MD Fikile Mashinini explains that, regardless of the resulting fast growth of this sector, internal and external challenges include a lack of confidence in the abilities of black-owned companies to deliver services, gender issues, limited experience and effective management of capital spend.

“Mining houses have little trust in 100%- black-owned companies, which is influenced by South Africa’s political background. However, as Ncamiso demonstrates its capabilities, attitudes are changing and we pride ourselves on our growth and achievements,” he comments.

Addressing Challenges
Mashinini reiterates that external challenges, such as a lack of experience and the mismanagement of capital outlay, are the most detrimental factors faced by suppliers working to bridge gaps in the mining supply chain.

He explains that the distribution of capital needs to be handled in a way that will ensure business growth but also that service delivery is up to standard with clients’ specifications.

Mashinini highlights that Ncamiso constantly aims to provide support to suppliers and other enterprises by forming joint ventures with enterprises operating in rural communities and relevant geographies. He adds that these enterprises are identified in government’s Integrated Sustainable Rural Development Programme and Urban Renewal Programme.

“We aim to provide infrastructural support to suppliers by assisting them with the maintenance of their equipment and other capital outlay to increase the sustainability of their businesses.”

Further, Mashinini notes that experience and skills play a vital role in ensuring black-owned businesses are approached and recognised as capable of delivering adequate services.

He explains that not only black-owned businesses, but businesses, in general, have to update skills to remain functional, as well as relevant in the mining industry.

In the areas where Ncamiso conducts its mining activities, the company ensures that it involves communities through offering employment and using the services of local small, medium-sized and microenterprises, which includes the subcontracting of tipper trucks, mobile toilets, water tankers, earthmoving equipment and security.

Mashinini adds that the company also ensures that local employees are trained to operate earthmoving equipment, as well as how to effectively employ safety and environmental management methods.