T&E

Source: Energy Digital

Date :08/07/2008 10:19:35

The golden ticket

Written by Ian Armitage and Produced by Alex Smith

Krugersdorp, South Africa-based T&E (formerly Trucking & Engineering) was established in 1981 and works predominately on the West Rand. A division of Inmins Trading (Pty) Ltd, it has been a major supplier of pipe and related products to the gold, platinum and diamond mining industry.

“Let me put you in the picture about T&E,” explains Jack Siebert, CEO and industry veteran. “We are part of Inmins Trading and I have been working for that group since 1987. My involvement in the mining industry goes way back, but I have been here more than a year now, and this is a company full of potential.”

Siebert is determined to capitalise on what he sees as opportunities in the market. Indeed, he is so determined that he has put off retirement to fulfil his duty. “I should have retired two years ago,” he admits.

T&E has a range of locally designed and patented products which have been successfully introduced into the industry that result in ease of installation and cost savings.

“That’s right,” says Siebert. “We specialise in designing and fabricating high pressure piping systems for the cooling, hydropower and backfill requirements of the mining sector. We have traditionally worked in the gold mining industry, although we also do pipes for other industries such as the platinum sector and various industrial groups as well.”

T&E has hit on the formula of success and has enjoyed phenomenal growth. “To give you some idea, the company’s turnover in 1981 was around about R800,000 and we are currently running between R120million and R140million per annum,” explains Siebert.

“We have a niche market in the gold mining industry with the high pressure backfill systems,” he continues. “We also satisfy cooling and hydropower requirements. Mines are very deep – they go for up to four kilometres underground and heat up, sometimes as high as 40 degrees Celsius - so they need our solutions to operate successfully.”

Success story

T&E is an African success story and it has also been successful in exporting its products into other African and overseas countries. Typical products include compact flanges, hydraulic sealing pipe couplings, and abrasive steel piping for backfill/slurry applications, to mention a few.

“We go to and do work in Zambia and we also exported to the Democratic Republic of Congo on a small scale, but we are planning to expand our African adventure,” adds Siebert. “There are big mines in the DRC and there are big mines in Ghana and Mali and we are looking at that.”

He says that while T&E is predominantly involved the gold mining sector – a market which is performing very well at present: “The gold price is going through the roof,” explains Siebert, “but the Rand is as bad as it has been in many a year, which is ideal for the gold mining industry. Yet, there is very little expansion: there are no new mines opening up; there are no new shafts opening up.

“What they are doing at present is taking existing shafts and deepening them. The shafts that are going down now to about 4.3 kilometres from the surface and that is very, very deep. Now, our backfill systems are in most of these mines so that obviously means a lot of work for us.

“We have existing contracts,” he continues. “We have had them for a number of years and they are with all the major players like AngloGold. In fact, we have a whole load of contacts for backfill material and we do business with just about every mining company in the country.”

T&E has carved a niche for itself and the future looks promising. Its prime objective though is making its mark in the platinum industry. When will this happen? “In the next couple of years,” according to Siebert. “That industry just going haywire here,” he explains. “Every month there is a new mine. There are very big opportunities here.

However, at this point in time, because the platinum mines are shallow in comparison to gold mines and most of the work would be lightweight, that would ask for a new approach. It is a totally different scene to the high pressure market and we will have to adapt to it. That’s our main target. Obviously, with the expansion of the mines in and across Africa, we could grow into more countries.”

The future is bright

T&E has an extremely bright future and it is also playing a vital role in South Africa’s development. While it is embarking on a journey to further grow the business to meet increasing demand, it is also, perhaps more importantly, looking to help reduce poverty and unemployment through Black Economic Empowerment (BEE): “That is very important,” says Siebert.

Over the past couple of years, T&E has increased its focus on BEE, in an attempt to help reduce the poverty that remains widespread in the country. “Black Economic Empowerment is very important to us and 26 percent of Inmins’ equity is in black hands,” explains Siebert.

This rare empowerment deal is very important for the future. “BEE has opened new avenues for us, and will continue to in the coming years,” Siebert adds. “We are very involved, and we train people, helping to lift them up into senior positions and get proper representation,” he continues.

Click here to view the corporate brochure on T&E