Logistics is the backbone of any operation

Transport distance is not the deciding factor when it comes to efficient mining logistics, according to Iqbal Rasool, chief commercial officer at Glencore’s Kamoto Copper Company (KCC) in the Democratic Republic of the Congo (DRC). Located in Kolwezi, in the province of Lualaba, the company’s portfolio of assets includes two open-pit mines, one underground mine, a concentrator and a refinery. “Logistics is not just a support function. It shapes our daily reality as miners,” said Rasool. “Considering that the DRC is landlocked and we mine copper and cobalt, we have to manage two critical flows of minerals on a daily basis. Not only do our products need to reach the global market, but our day-to-day operations are highly dependent on imports, with everything from machinery to fuel and consumables coming in. Any disruption on either the inbound or the outbound leg impacts the mine operations extensively.” He said border delays and unpredictability of clearance were practical challenges faced on a daily basis. “The documentation requirements are strenuous and a lot of manual processing still takes place. These all lead to increased delays that create operational risk to the business.” He said choosing logistics partners became an important aspect of successful operations. “Logistics is the backbone because any disruption at any given time anywhere along the value chain has an operational impact.” According to Rasool, the length of a corridor or the distance travelled to and from a port are therefore not always the most important factors. “It is more about the most efficient route than anything else. The routes with fewer delays, even if they are longer in kilometres, are often more reliable. Flow of cargo is far more important than distance travelled.” He said in the DRC multiple checkpoints from the border to KCC had been slowing down cargo significantly. “All this unpredictability adds massive cost. It is sometimes very difficult to predict our importing and exporting capabilities.” Rasool said partnerships between mining houses and logistics operators were important. “There is always the opportunity to strengthen these partnerships. Ongoing engagement and communication with logistics operators are also important because proactive dialogue allows us to address challenges before they become crises.” There’s a broad understanding that corridor development is not just about import and export processes but also about value creation along the way for local communities. “There are many downstream benefits and the importance of these corridors to and from mines is increasingly being seen by countries.” LV