MechChem Africa July-August 2020

⎪ Minerals processing and materials handling ⎪

BOT model can transform mining and boost emerging contractors

Opening the doors of the mining sector to junior miners and emerging contractors can be boosted by partnerships based on the build-operate-transfer (BOT) concept, according to B&E International. Company director of plant and engineering, Ken Basson, explains.

frequently a ‘bridge too far’ in terms of capital expenditure. Financial institutions usually require a strong balance sheet, which many young companies do not have. There is also the risk that anewplantmaynot run smoothly RU WR VSHFLĆHG FDSDFLW\ GHPDQGLQJ D GHSWK of technical expertise not yet developed by a new contractor. “With our experience of running plants, combined with our in-house design and manufacturing capabilities, we shoulder a large portion of this initial risk for the smaller players,” he says. “We design and build the plant to suit our BOT partner’s operational needs, and then run the plant ourselves. The partner pays us only for the final saleable product from the plant.” The arrangement is a close collaboration with the partner, who must be assured of meeting its contractual obligations to theend- customer – in the case of a coal-producing operation, for example. The production experience in B&E International – which has for decades run crushing and screening

operations for its own account – is what puts its BOT partners’ minds at ease. “The ‘transfer’ aspect of the BOT contract is also an important step in growing a new generationofminers andcontractors inSouth Africa,” he says. “This allows for our BOT partners to take ownership of the plant after an agreed period of time, should they wish to take over processing operations.” This, in turn, allows a junior miner to build its balance sheet and skills base over a manageable timeframe, while mitigating its operational risk and ensuring a sound growth trajectory. Basson also emphasises the value of B&E International’s local manufacturing experience, especially given the steady dete- riorationof theRandagainst theUSdollar and Euro – the currencies in which most mineral processing equipment is sold. “Our Rand-based manufacturing capa- bility has always been cost effective, and is becoming increasingly so,” he says. “This further improves the economics of our plants’ performance and maintenance.” ‰

A s an expert in integrated crushing, mining and mineral processing so- lutions,B&EInternationalbringsits experience of operating crushing plants and designing and locally manufactur- ing its own innovative equipment, says Ken Basson. “Acommitted Level 1B-BBEE contributor, we understand the importance of transform- ing our industry by building local expertise and capacity,” he says. “We have therefore partnered with junior miners and emerging contractors toassume someof their initial risk LQ PLQLQJ SURMHFWV DQG WR JLYH WKHP D ĆUPHU basis for sustainable growth.” Hehighlights that newentrants to themin- LQJ VHFWRU IDFHĆQDQFLDO DQG WHFKQLFDO KXUGOHV 6RXUFLQJ D ĆW IRU SXUSRVH SURFHVVLQJ SODQW LV

B&E International designs and builds plants to suit BOT partners’ operational needs. B&E then runs the plant with junior mining partners only SD\LQJ IRU WKH ĆQDO VDOHDEOH SURGXFW IURP WKH SODQW

July-August 2020 • MechChem Africa ¦ 9