Cementation Africa transitions ownership amid rise in mining investment

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation. The ownership transition of Cementation Africa is enabling this underground mining contracting business to advance at a time of capital investment uptick in mining. Transitioning outside of the Murray & Roberts group and beyond the business rescue process of Murray & Roberts Limited has given Cementation Africa the opportunity to shake off negative connotations and to re-establish itself as an underground contract miner. "This ownership transition is really important for us as a business. It really enables us to focus on what we do, and that is mining," Cementation Africa MD Japie du Plessis outlined to Mining Weekly during an interview in which Mark Salmon participated as the Head of Special Situations Fund at Differential Capital, which is Cementation's new shareholder. (Also watch attached Creamer Media video.) In navigating its way out of business rescue with Differential Capital, Cementation Africa has managed to retain all assets as well as skills. "A very important role we play when we provide capital is helping to retain vital skills for the benefit of all stakeholders," said Salmon, who expressed excitement about the future for the company, which is going all out to improve its African footprint and collaborating with its American sister company. Branding has been aligned across jurisdictions and steps are being taken to leverage on common engineering design strengths across time zones. In South Africa, Cementation Africa has a five-year contract for the execution of the underground mining development and construction works at Tharisa Minerals chrome and platinum group metals mine. In Zambia, it has reopened its office and is executing work at Mopani copper mine. In Ghana, it has registered a fully compliant local business. In raise boring, it is intent on expanding. On the modernisation front, it is partnering with leading technology providers. "Modern technology is really improving the efficiencies, improving safety and we're constantly looking to identify where technology can assist us to improve our efficiencies, improve our safety performance and we'll never stop that process. We'll forever constantly look to evolve as technology evolves and we're already setting ourselves a challenge to find projects and operations where we can challenge ourselves to get to autonomous operations and even remote operations. We're partnering with leading tech companies, and hoping, in the not-so-distant future, to share a little bit more about that," du Plessis revealed. NEW SHAREHOLDER The strategic focus of Differential Capital, an investment company, has been on using big data and AI within the financial services industry. About two years ago, it identified a distinct opportunity in the mining contracting space, on the back of low capital investment in mining sector, "and that meant that institutions or companies that provided those services, were likely to have exceptionally good prospects," Salmon explained. Against that background, Differential Capital took the opportunity to acquire all the Cementation assets out of the business rescue process and to assist the African and American Cementation businesses. "They've done an amazing job in navigating that period and we're really excited about the future. You've already started to see capital investment announcements pick up over the last couple of months, and you're starting to see order books become relatively robust," Salmon pointed out. Mining Weekly: What is on offer from your in-house engineering design office? du Plessis: We do anything from prefeasibility, feasibility studies all the way through to detail design work, and our most recent sizable design package was on Ivanplats' Platreef, where we have transitioned a ventilation shaft in...