Grid Iron targets a stake in the mining services sector
Botswana mining services sub-sector is no doubt valued at billions of Pula on annual basis. However, it is a known fact that, this sector has for decades been dominated by foreign companies largely because of limited skills, expertise or resources by local companies.
Over the years, government has been pushing to have locals have a share of contracts within the multi-billion Pula sector, especially within Debswana Diamond Company, which is a joint venture between De Beers and Botswana governement. In recent years, there has been a number of citizen owned companies who are now having a fair share of contracts within the sector by providing mining services. This development has partly been credited to the multi-pronged Citizen Economic Empowerment initiatives, which among others seek to give citizens preferences over others when it comes to procurement of services.
The Economic Inclusion Act is also expected to create even more opportunities for citizen owned companies who are interested in breaking into the profitably mining sector. Long before these initiatives, Grid Iron, a local company, which is youth led, emerged.
That was in 2014. According to the founder and director, Tuelo Mafokate, the company, was established to provide mining services such as cranes hire, rigging (earth moving, plant assembly & dismantling), mobile cranes and earth moving plant hire, labour hire, among others.
As for cranes, the company hires them and in turn rent them out to mines at negotiated fees. Mafokate, an AAT graduate from Botswana Accountancy College (BAC), formed Grid Iron from humble beginnings, with nothing else but to play a meaningful role in the country’s mining sector from a services point of view. In an exclusive interview, the confident young businessman said lack of funds should not be a deterrent for any citizen from entering the mining services sector.
“What is needed is sheer determination and focus. You have to convince mining companies that, despite capital limitations, you can still provide the best service like any other service provider. I come from an accounting background and that has not deterred me from playing a small, but meaning role in the mining sector,” he stated. Botswana’s economy depends largely on mining. According to Mafokate, it is straightforward that, citizens should benefit from the sector, either as employees or employers.
“At Grid Iron, we strongly believe that, local companies have the capacity to provide quality mining services to all mines in the country. Most of the workers (who are Batswana), have gained enough experience and are now experts in their own right within the mining sector. All they need is for them to be availed opportunities to gain more experience and become even more competitive against their external counterparts,” stated Mafokate who is 32 years.
He told Botswana Guardian that, some of the workers scattered around the country’s mining have gained valued experience by working in foreign controlled firms such as Komatsu, Epiroc, Barloworld, Lieber, among others. All these are Original Equipment Manufacturers (OEM), who have been dominating the country’s mining services sector for decades. Like other start-ups, Grid Iron experienced challenges during early years of operations.
“We continuously knocked in every door for possible opportunities, ” he remembered, adding that, they are thankful to Debswana Diamond Company for having trusted them to provide various mining services to their mines. In the years that the company has been in existence, it has provided services such as rebuilds (for big excavators), housekeeping projects, removing of earthmoving equipment, among others to Debswana.
They have also been lucky to have been sub-contracted by Lucara Diamond Corporation to do civil works at Letlhakane stadium. Lucara owns Karowe, an independent diamond mine in Letlhakane. Mafokate is excited that government encourages mining companies to source supply and services from local and citizen owned companies through Citizen Economic Empowerment( CEE). Debswana, the biggest mining company in the country and Morupule Coal Mine (MCM) are leading when it comes to CEE.
Through the latter, companies such as Grid Iron are expected to benefit from sub-contracts and value supply chains. “We are happy that, mines are now in a position to accommodate us (locals) within their medium to long term plans unlike in the past. This will enable for the sustainable growth of citizen owned mining services companies,” he added. Debswana has established Naledi Mining Services company, which is now providing similar services such as the one provided by Grid Iron. Mafokate is not fazed by this, adding competition is good for business growth. There are exciting developments within the mining sector.
A sizeable number of companies are either at an advanced stage of starting production, expanding or have applied for mining licenses. MCM has expanded their operations through Motheo project. Sandfire Resources will open a copper mine in Gantsi this winter. Giyani Metals is also pushing its manganese project in Kanye and Kgale Hills. Mafokate believes with proper capacity, citizen owned companies should be in a position to have a windfall from the above mining projects.
“Botswana has huge reserves for diamonds and coal. We expect more projects to come from these (minerals) in the coming years,” he stated. Grid Iron has created well over 50 jobs. “As more work comes along, we will create more jobs. However, the most important thing is to create strong skills set within the local workforce. This will in a long run make it easy for artisans or engineers to be able to establish their own companies and hire even more people.” Mafokate has encouraged youth to venture into mining related services. "Old heads will not in be here to drive mining in the next 50 years. We(youth) need to seize the moment now."