Bulk earthworks industry’s potential hampered

The bulk earthworks industry has the potential to perform much better than it currently does, but a lack of industry development and strikes at South Africa’s major mining companies have hampered the industry’s potential, notes bulk earthworks supplier SA Earthworks CEO Danie van der Westhuizen.

He notes that uncertainty in the mining sector will continue to undermine investment and hamper new development, unless a stable political atmosphere attractive to investors can be established.

In the face of continued strikes and associated threats in South Africa’s mining sector, South African President Jacob Zuma vowed last month to take a hard line against labour unrest in the mining sector, which has been plagued by 18 months of killings and wildcat strikes that have threatened to destabilise Africa’s biggest economy.

“Our law enforcement agencies have been instructed not to toler- ate [those reponsible for] crime in the name of labour relations. They will face the full might of the law,” Zuma told Parliament.

He also said government would remain impartial in a turf war between the emerging Association of Mineworkers and Construction Union and the National Union of Mineworkers, a long-standing ally of the ruling African National Congress.

“Government does not take sides and does not favour any labour union over others in the mining industry. Our interest is in finding solutions,” he added.

Van der Westhuizen adds that, in addition to strikes, the slow roll-out of much anticipated government-led infrastructure projects is also negatively impacting on the bulk earthworks sector.

He highlights that the biggest demand for SA Earthwork’s machinery comes from the mining sector. “We have had a few enquiries for long-term contracts for this year but, owing to a lack of investments and an oversupply of plant and equipment, new contracts are not enough.”

Meanwhile, Van der Westhuizen notes that SA Earthworks has added a second Hyundai R1200-9 excavator to its fleet, in addition to the one it bought towards the end of last year.

“This machine has increased our production significantly, particularly in the mining sector,” he reports.

The company stated in a media release in January that it had placed a multimillion-rand order for two Hyundai R1200-9 excavators in 2012 to load and haul millions of tons of overburden, drilled and blasted waste and gold-bearing reef at gold miner Mintails SA’s Mogale Gold plant, in Gauteng.

Van der Westhuizen explained in the media release that the company had been awarded a three-year earthmoving contract in 2011 to assist Mogale Gold in hauling more than 300 000 m³ of drilled and blasted waste and 100 000 t of reef a month.

“This is a highly demanding and challenging project that requires the most robust and reliable machinery and the Hyundai R1200-9 excavators met our requirements in terms of technical specifications. An added benefit is that it is more competitively priced than similar-sized competitor excavators, while maintaining the highest standards of quality and reliability,” he said in the media release.

Earthmoving equipment provider HPE Africa GM Neil Sauls noted that the Hyundai R1200-9 excavator is particularly well suited to the local mining sector. “A significant amount of capital is being invested, particularly in African mining projects, and development is taking place at a rapid rate. With this in mind, local contractors, such as SA Earthworks, will consider large and cost-effective earthmoving machinery such as the Hyundai R1200-9 excavator.”

The Hyundai R1200-9 excavator comes standard with a 6.7 m³ bucket, which is used by SA Earthworks to load four 40 t trucks in a cycle time of only six to eight minutes. “With a 558.5 kN and 56.9 t digging force, the Hyundai R1200-9 bucket’s heaped capacity fully loads a 40 t truck with three piles, while consuming just 70 ℓ to 75 ℓ of fuel an hour, thereby significantly reducing downtime related to on-site refuelling,” Van der Westhuizen added in the media release.

Owing to the large scale of its gold-recovery project at Mogale Gold, Van der Westhuizen noted, SA Earthworks also bought two 80 t Hyundai R800LC-7A excav- ators and two 36 t Hyundai R360LC-7 excavators in May 2012 to meet expected demand.