Our Strategy

We aim to maintain and build on our existing strategic strengths, specifically by seeking to maintain and enhance over time our strong track record of working for established mining groups to deliver major shaft and decline shaft sinking projects, as well as our excellent safety record.

We also continually review our policies and procedures and our ability to retain and attract skilled sinkers through the provision of appropriate training and on-the-job experience. We retain a pool of strategic plant and equipment such as winders and other major assets at our yard in Randfontein.

Sourcing such equipment internally allows us to offer potential clients a shorter lead time when bidding for major projects than sourcing it externally. We are in the process of reconditioning our winders in order to enhance our ability to compete for new business.

Given the potential for significant demand for shaft sinking services in countries within the CIS and India as those countries develop their mineral resources we hope to exploit such demand. Our track record, technology and working practices are generally more current than those of local competitors and to date there have been few international competitors for shaft sinking projects in such countries offering us the prospect of improved margins.

Work on our existing projects for EuroChem in Russia and Teesta in India has given us access to local management and expertise and an understanding of local law and working practices. We intend to leverage this experience. Our work on these contracts has also generated contacts with local intermediaries and mining services companies providing access to leads and the opportunity to build alliances to win additional local business.

Finally, the knowledge, experience and standing gained from working with ECIC in Russia should enhance the perception of the Group as an appropriate partner for other export credit agencies financing projects in the CIS.

The majority of our work in South Africa over the past few years has been for major metals mining groups and, in particular, PGM producers. Recent projects for EuroChem in Russia and Teesta in India have provided an element of diversification into the potash and hydro-electric industries. While shaft sinking for major PGM and other metals mining groups is likely to remain our principal activity, we will continue to seek additional diversification into new end-markets as opportunities arise.

Possible applications include access to fertiliser and other non-metals resources, hydro-electric pressure and surge shafts, access for underground road and rail systems and access to and caverns for underground nuclear waste and low pressure gas storage.

We believe that opportunities may exist to make selective acquisitions with the potential to add value to the Group’s operations. Possible opportunities include the acquisition of additional technical capabilities and/or know-how (in mechanised sinking, coal mine infrastructure development and raise boring) and the addition of local capability in emerging markets. The Group may also enter into alliances to develop such skills.