Need for stock replenishment will drive industry growth

Companies across South Africa will be looking at cementing their sources of supply as highly competitive conditions make a comeback in the mining industry in 2010. “This really means that 2010 will be a time of unique opportunities,” says Ross Barry, supply chain developer for RB Freight Management. “Increased demand will definitely be on the cards as manufacturing picks up. And as new resources, especially in areas such as middle Africa, are exploited, this will provide an opportunity for all involved in the industry to increase their share and profits.” Already as the economy and trade grows, volumes have been increasing with companies changing their focus from local to international. “We did not lay off during the recession, instead we hired and spent the downtime training and ensuring staff were well-versed in the systems with the aim being to be able to deliver and be in a good position for post-recession growth.” Barry says there was a significant increase in interest in new mines, re-opening of old mines and a general increase in mining and production towards the end of 2009. “This was due to consumers having used their stockpiles through the recession and stocks needing to be replenished. This trend is set to continue well into 2010 as companies and countries look to economic recovery and growth.” Barry believes there are many opportunities in the industry – from finding new customers to being able to meet the new logistical challenges. “The mining company that can provide the correct quality and quantity required can get new business and revenue, and the logistics provider who can find low cost ways to move the product will benefit as well,” he says. “The port of Ngqura is basically sitting unused, but has the potential to be used for very large vessels, creating a potential cost saving for the savvy logistics provider.” Barry says there is no doubt that mining and minerals will become a more and more heavily contested industry. With the developed world fighting over African resources, political sides may be chosen and outside influence will become stronger and more common. “African nations need to stand up and ensure they are not exploited and that the income from their natural resources is not squandered.”