"We have focused on the Kolwezi region, where our major customers are concentrated and have set up a large storage warehouse there."

Adry Nzonzimbu

MANAGING DIRECTOR, MINEQUIP TECHNICAL SERVICES

January 12, 2024

Can you remind us of the mining firms you work with? 

From the south, we work with Frontier Mine (an ERG group company), Kinsenda Copper Company (a Metorex mine), and in the Lubumbashi region with Ruashi Mining, MMG, KiCo, and further afield with TFM, Mumi, KCC (Glencore), Kamoa, and to the north with Alphamine Bisie Mining and Kibali Gold Mines. 

What does demand look like from the mining industry these days? 

Demand remains high but fluctuates, and we need to know how to adapt. There's a lot of demand in the last quarter, and unused budgets are going to be mobilized. Knowing how to adapt is essential.

What are the latest updates regarding your workshop, your warehouses, and AnsulTech Fire Systems? 

We have finished building our workshop and are in the process of equipping it. The pandemic was a big brake on our expansion plan. We have therefore focused on the Kolwezi region, where our major customers are concentrated and have set up a large storage warehouse there. We're even going to extend this space and install a training center, which will be operational by the end of the year. This will be more in the context of our sister company, AnsulTech Fire Systems. AnsulTech's Fire Systems division was originally part of Minequip. But our main partner in South Africa wanted to take part in the investment and wanted a partnership. As Minequip's shareholders were unable to sell their shares, we created a new entity. The Advanced group is our main partner and shareholder.

How does Minequip deal with the growing competition in the industry? 

In the DRC, competition is increasingly fierce, with foreign companies coming in with capital 10 times our size, but we benefit from our 15 years of expertise. We are focusing on what we do best, and incorporating new segments into our company's portfolio to meet the changing demands of our customers. We are solution providers, not just service providers. We supply the equipment and assist the customer to get the best out of it. 

In short, the quality of our service is second to none. Knowledge of the product we offer is key. The training support we offer is unique in the market; product knowledge requires training, all our technicians are certified and our sales staff are trained. Finally, I would like to emphasize the introduction between customer and supplier. We work with Hella Mining, for example, which produces lighting solutions. When we come with the representative to the customer and he says that we are the officially appointed distributor, that gives the customer confidence.

How do you assess the business environment for service providers in the DRC? 

The ARSP law governing subcontracting in the Congo was introduced to give Congolese companies priority for subcontracts. A new Director General has arrived, and the law is being applied more and more. One of the key ideas is that Congolese companies should have business in the country. This means that the majority (51%) of shares must be held by Congolese nationals. The practice of "prête-nom" is a threat to this law. A lot of companies take on a Congolese, and put his name on the paper but he owns nothing. I'm pleased that the ARSP is launching checks to verify compliance, and recently a list of companies that were subcontracting to mining companies without fulfilling the conditions was published by the ARSP.
 
We must be pragmatic in our sector. In the field of major equipment, for example, it will be difficult to get Congolese companies to manage these businesses. But in traditional subcontracting, the Congolese can assert themselves and take the lion's share. We have the expertise, the financial capacity, and the will. The law on ARSP is a booster for business, and a booster for Congolese companies, if it is followed.

What are your priorities for the future? 

We try not to reinvent the wheel and concentrate on what we do best. Gradually, we're going to expand our portfolio to be ever more comprehensive and competitive. We can make a customer's hydraulic cylinders, as well as hydraulic pumps. We want to offer a complete solution. If you can solve most of the problems that miners have, they'll be happy to deal with one company and not 30.

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