|
|
Shaft Sinkers & IMR taking the world in its stride
Alon Davidov
Tom Pietrzak
|
International Mineral Resources' (IMR) 60% acquisition of Shaft Sinkers last year has provided both companies with a global platform for expanding their footprint into untried areas. Laura Cornish spoke to Shaft Sinkers corporate services GM, Tom Pietrzak, and IMR and Shaft Sinkers director, Alon Davidov, about the companies' symbiotic relationship, which is already steadily developing business opportunities across the globe.
KAZAKHSTAN
Although the two companies continue to operate as separate entities, Pietrzak explains that the primary reason for the acquisition was to establish operational synergies between the two companies.
IMR, founded to grow its mining operations in Africa, has interests in Africa which include the Chambishi smelter and Luanshya copper mine in Zambia. It also has a significant shareholding in Samancor Chrome.
Through IMR's parent shareholder in Eurasian Natural Resources Corporation (ENCR), which is based in Kazakhstan, the company has a strong foothold and understanding of the country.
The relationship has seen Shaft Sinkers springboard into Kazakhstan, where it is currently completing two scoping studies for two mining projects. The first project will be for two shaft-sinking ventures, the other for the construction of a single large shaft.
"Mining in the country until recently has been mostly open-cast, and surface reserves are reaching depletion point," Pietrzak explains, "underground project expansions are coming to the fore, opening up a lot of new potential opportunities for Shaft Sinkers."
Through its IMR association, Shaft Sinkers will continue to form a strong presence in Kazakhstan, and bring modern mining and shaft-sinking technologies into the country, strengthening its scope for new projects in the future.
ZIMBABWE
"Another point of strategic focus for IMR will be to identify and evaluate non-core assets which currently fall under the company's overall project portfolio," Davidov notes.
The director is referring specifically to the Eureka gold mining project in Zimbabwe, in which Shaft Sinkers holds a substantial stake. Mmakau Mining, headed by Bridgette Radebe, owns the rest of the project. Minor activity remains ongoing on the opencast site from the existing rock stockpile.
Pietrzak, however, feels that Zimbabwe remains a massive untapped mining area, which can expect a 'gold rush' of mining companies into the country in the future, once a more politically stable environment can be sustained.
For this reason, it is most likely that IMR will acquire Shaft Sinkers' stake in the project, where a stronger cash flow can be injected into the project when necessary.
IMR's valuation of the project also includes investigating the project's precise requirements for returning to production.
"This includes making a technical decision on whether to sink below 60m, the full potential and size of the project, logistical and infrastructure challenges, and considering specific mining methods owing to the mine's grade fragmented ore body," says Davidov, who adds that Mmakau is completely supportive of IMR's potential decision regarding the project.
CAPITAL RAISING PROSPECTS
Both mining experts agree that, through IMR's presence in central Asia and the former Soviet Union, i.e. Russia, Shaft Sinkers is likely to experience rapid growth in foreign project capacity and scale.
Says Pietrzak: "Demand for our services is already multiplying rapidly, making it a necessity to purchase or manufacture new shaft-sinking machinery for sinking deeper shafts, which requires major capital."
The obvious step, according to Davidov, would be an initial public listing for Shaft Sinkers, providing a fast platform to raise capital to increase its project capacity and its fleet of equipment.
Davidov believes a publicly traded company also has a "more reputable name", which is an advantage when tendering on global contracts, and also acts as a staff retention incentive.
AT HOME AND ABROAD
Despite equipping itself for extensive growth, Shaft Sinkers is involved in multiple contracts in this country, including a variety of platinum projects in 2008.
Its success on its shaft-sinking project work at Implats' Impala 17 shaft has already been well recorded in the media, being hailed as one of SA's largest shaft-sinking projects.
Re-planning and scheduling has also commenced at Implats' Leeuwkop mine, which is awaiting the issue of its mining licence. Site establishment is expected in February.
Shaft Sinkers has already been contracted to expand the 7.6m diameter ventilation shaft to 8m, and to enlarge the main shaft from 9m to 10.2m in diameter.
More recently, Shaft Sinkers is also in final stage negotiations for a deep-level mining complex shaft-sinking project in Russia.
At this stage, the company confirms that it will sink at least one shaft on the project, and could look to take on an additional three to five shaft development in future.
|
|
 |
 |
 |
| All material copyright SA Mining |
| © Avusa Media Limited. All Rights Reserved |
|
|
Rate Card