DIGBY GLOVER
We would like to continue to increase our ability to work effectively from as far up the mining value chain as possible
Photo by: Serendipity
Project delivery and consulting services firm WorleyParsons TWP will reintroduce itself to the African market as WorleyParsons RSA at this year’s Investing in African Mining Indaba, which will take place at the Cape Town International Convention Centre, from February 3 to 6.
This comes after WorleyParsons’ acquisition of mining-focused project house TWP in March 2013, which has since been operating under the name WorleyParsons TWP.
“The idea was to retain the value that the TWP brand has within WorleyParsons’ existing market and to ensure that the existing market understands that we are now part of a much bigger picture, which I think has been achieved,” WorleyParsons RSA CEO Digby Glover tells Mining Weekly.
WorleyParsons is a global company that provides project delivery and consulting services to the resources and energy sectors and complex process industries. Services cover the full asset spectrum both in size and life cycle – from the creation of new assets to services that sustain and enhance operating assets.
The company, which is listed on the Australian Stock Exchange, focuses its business on three customer sector groups (CSGs), using its extensive expertise to deliver small studies through to megaprojects.
These CSGs cover infrastructure and environment, including power, hydrocarbons, and minerals, metals and chemicals.
The acquisition of TWP last year boosts WorleyParsons’ capability in the mining sector to deliver comprehensive pit-to-port projects and solutions in base metals, aluminium, coal, iron-ore, steel and chemicals across the world.
“The two businesses operated differently prior to the acquisition, which is why we are focused on bringing them together under one brand to capitalise on the synergies to be gained from being an integral part of a larger business with additional market offerings,” notes Glover, adding that much of the capacity that is used in one area of WorleyParsons RSA may correspond well with another area of TWP, facilitating continuity of workflow.
We have invested a great deal of effort to ensure the business comes together as one and this has facilitated a smooth transition,” Glover notes.
Reflecting on the future of the business, he adds that, going forward, it is important to define WorleyParsons RSA’s purpose in the local market and in the global WorleyParsons business.
“The company’s strategy is, firstly, to have significant capability across the three CSGs.
“We would like to continue to increase our ability to work effectively from as far up the mining value chain as possible, from the technical aspects of the concept phase studies to the development of a business case for our customers, building the operations and handing it over to the customer,” Glover explains, adding that the company hopes to secure longer-term contracts to better serve operating entities.
Further, WorleyParsons RSA plans to establish itself as a global centre of excellence for deep-level, underground mining projects. He says that WorleyParsons’ ability to design and manage mining projects, such as the construction of mine shafts, should not remain exclusive to Southern Africa, but will be taken advantage of worldwide using WorleyParsons’ global footprint as a springboard into new markets.
Attending the Mining Indaba
Glover highlights that TWP has attended the Mining Indaba for the last nine years, adding that the event is one of the best of its kind in the mining industry.
“It is a key event that has grown over the years, from an event solely focused on mining executives and the prospects of potential mining investments to an event focused on a far broader range of factors that cut across the industry, as service providers, equipment suppliers and mining executives all attend the event,” he says.
Glover notes that although the event is not purely an investment forum – as was initially intended – it is still worthwhile attending.
“TWP returns to the Mining Indaba each year because the company’s expanding service offering is important to people who are considering investment in the development of new mines and in the expansion of existing ones,” he comments.
Glover adds that the mining industry is a key part of the South African economy in terms of both direct and indirect revenues through the supply chain to the industry. Therefore, he believes it is crucial for South Africa’s mining industry to regain its past stature as a key player in this global industry.
“There aren’t many events as big as the Mining Indaba and it is important for the local mining industry, as it provides a platform for the industry to showcase itself at both local and international levels,” he says.
He adds that the indaba’s objective is to attract investment to South Africa and its mining industry, as well as to stimulate the industry by bringing key players together – facilitating conversations that will develop into further opportunities.
WorleyParsons RSA is looking forward to redeveloping past relationships and establishing new ones at the Mining Indaba. “The event provides an excellent opportunity to showcase its new, expanded service offering as well as to gain additional insight into stakeholders’ perceptions of the local mining industry,” notes Glover.
Industry Challenges
Glover says the local industry faces some challenges, such as the need for continued stability, to reassure investors of long-term tenure. He adds that initial investment in a mine can take more than ten years before it offers a return.
“The sociopolitical environment of South Africa and unrest from stakeholders, can also deter foreign investment. However, in general, the Department of Mineral Resources is conducting formal communications with the relevant mining stakeholders, effectively to overcome these challenges.
“The current slowdown in the global mining and minerals industry is an additional, if not unusual, challenge, which has been somewhat exacerbated by senior management changes in several mining companies worldwide,” he comments.
Glover notes, while there are challenges in the industry, some positive aspects remain, such as the continued high demand for certain commodities, and there is no doubt that this demand will increase in the near to medium term.
“Once again, the mining industry will have to adapt to produce enough to meet this demand, but I remain positive about the long-term profitability of the global mining industry. “This is also true for the local industry, as long as South African mining industry stakeholders make the right communication and demonstrate the right actions to attract long-term investments,” he concludes.