Capital Equipment News December 2018

CONTACTOR DEVELOPMENT

“With Glencore we structured finance terms that mitigated the risk for financiers. This helped overcome the barrier of historic challenges Sicediwe had. The partnership is based on both the financier and the corporate creating an enabling platform.”

Otukile Moshori, MD of of Regoapele Capital

“If finance houses are serious about helping entrepreneurs finding their feet in the business world, it will take more than just relying on balance sheets to qualify them. We are open to financing small businesses despite their limited operating history, as long as they can prove that they have solid contracts in place.” Maphala Mosomane, provincial manager for Limpopo and Mpumalanga at Masisizane Fund

Riviera Hire supplied a total of five Epiroc hammers to Sicediwe.

educational for most financiers too as they don’t necessarily have the skills sets to asses mining operations,” adds Moshori. “We are working with three financiers to date. We also see a big change in the industry’s approach to funding SMMEs. We have recently seen that some of the larger financiers that wouldn’t normally look at SMME transactions are opening up to funding small companies,” says Moshori. In Sicediwe’s instance, Masisizane Fund, part of Old Mutual Life Assurance Company, was the financier of choice. Masisizane financed Sicediwe to the tune of R8,5-million for the purchase of a fleet of yellow metal equipment and related attachments. Sicediwe purchased two Komatsu PC200 excavators from Komatsu South Africa, two new JCB backhoe loaders from Kemach JCB, a Cat-certified second-hand 428F2 backhoe loader and five new Epiroc hammers from Riviera Hire. The two new Komatsu PC200 excavators are equipped with two Epiroc EC120TCL hammers, while three backhoe loaders are equipped with the three Epiroc SP302 hammers.

“I commend the various parties for the roles they played in this initiative. Capacitating small businesses will not only boost their growth prospects, but also the economy at large.”

Mary Mkhabela, owner of Sicediwe

“We awarded Sicediwe a three-year contract with an option to extend for a further two years. Sicediwe has been tasked with breaking 30 000 t of ferrochrome in a R700 000 per month contract. This is a true empowerment initiative which will see the black woman-owned company servicing a core mining activity, employing 12 permanent people in the process.”

Conroy van der Westhuizen, general works manager at Glencore Lydenburg Smelter

CAPITAL EQUIPMENT NEWS DECEMBER 2018 6