Modern Mining January 2015

The trend towards outsourcing in the mining industry presents an ideal opportunity for the Raubex Group’s total solutions approach.

22 companies in the Group “At this stage we have 22 companies within the Group,” Fourie says. This marks the significant evolution of the Raubex Group from its initial formation as a private company during the difficult economic conditions of the early 1990s. The current structure is that while the individual companies remain autonomous and in charge of their own day to day operations, the majority shareholding and strategic direction lies with the larger Raubex Group. It is this differentiation from a typical large corporate entity that has resulted in the ongoing success of the Raubex Group. “Our latest results will probably be some of the best results out there in the construction industry today with a strong order book of R7.5 billion.” Fourie says the capex budget for the current financial year is pegged at R500 million. “It is based predominantly on the mining side, which is quite hungry for capex,” he concludes. Raubex 2014 Results The Infrastructure Division performed well during the year, while the Construction and Materials Divisions continued to seek opportunities beyond South Africa’s borders, making good progress in Zambia and Namibia,Rudolf Fourie,CEO,says in the 2014 Raubex Integrated Report. “The construction industry continues to experience slow payments on some provincial projects, but we have been able to maintain tight financial control over our debtors as well as cash flow.” Looking at 2015,Fourie notes: “We are expecting trading conditions in the South African road construction industry to remain challenging but stable in the short term. Competitive pressures, particularly in the heavy rehabilitation and construction sector, are expected to continue in the year ahead. We believe the attrition and consolidation within the construction sector is also set to persist. “The volume of work out to tender is expected to remain steady and sufficient to maintain the group’s order book. “Improvements in the sector remain dependent on the timelyrollout of the government’s infrastructure development plan, the successful implementation of tolling and associated revenue collection, as well as the continued handover of strategic and primary road networks and associated maintenance budgets, from provincial governments to the South African National Roads Agency Limited (SANRAL).” Fourie concludes: “The Raubex Group will continue to seek growth through expansion into Africa in both the road construction and the mining and material handling sectors.” Organogram CONSTRUCTION DIVISION: Raubex Construction, Roadmac Surfacing, Roadmac Surfacing Cape, Milling Technics, Raubex KZN, Raubex Zambia, Centremark Roadmarking MATERIALS DIVISION: Burma Plant Hire, SPH Kundalila, National Asphalt, Raumix Aggregates, B&E International, Tosas, Strata Civils, Shisalanga Construction, OMS Crushers INFRASTRUCTURE DIVISION : Raubex Infra, L&R Civil, Raudev, Raubex Housing