Cheap mining equipment is costly, says expert

Cheap mining equipment is costly, says expert
By Chiwoyu Sinyangwe
Tue 13 Sep. 2011, 13:59 CAT

THE increasing shift from American equipment in the mining sector has contributed to the high cost of doing business in the industry, says a key industrial equipment expert.

And BUK Truck Parts Limited has become the first local company to start supplying all heavy and highly specialised equipment required for mining, construction and agriculture sectors.

BUK is going to be selling on the local market, American-made equipment and parts via its partnership with globally recognised industry leader, Equipxp, based in Houston, USA.

Announcing the partnership which involves distribution of small locomotive, toros, haulparks, crushers, excavators, front-end loaders, BUK managing director Benjamin Katubiya said mines stopped using American-made equipment owing to the notion that equipment from US was expensive.

"The mines are discontent with the performance of non-American equipment because they can't perform if subjected to long hours of work and they experience too many breakdowns," Katubiya said.

He said although the entry of other equipment manufactures had helped to boost competition, cheaply bought equipment had proved costly in the long run.
"We, as BUK, feel through partnering with Equipxp, can supply durable equipment to the mining industry, agriculture, and construction," he said.

Among the trucks and spare parts to be sold under the agreement are Caterpillar, Massey Ferguson, John Deere, Mac Truck and Freightliners.

Katubiya also said apart from supplying equipment, BUK would also be offering after-sale services in spare parts, reducing the time it took for companies to order spare parts from abroad.

And Equipxp director for global sales Harry Goodall said although increasing competition was welcome, American-made equipment reigned in terms of their quality and spares.

Goodall said Equipxp's entry into Zambia was its "biggest leap into Southern Africa". It had previously focused on West Africa.

"We are committed to helping develop Zambia by helping to provide parts and equipment to Zambian business to be able to grow and expand the work that they want to do. We want to make sure Zambia has the right equipment for mining, building roads and construction sector," Goodall said.

"We are using Zambia as launch pad into Southern Africa. Whatever people need as far as heavy equipment is concerned, we supply it."

Goodall said under the arrangement with BUK, Equipxp would also be helping to arrange finance from the financing windows of Export and Import Bank Exim Bank of US and OPEC banks.

"We can also help arrange financing both with Exim and a wide variety of other financing institutions like OPEC banks to help finance for the equipment for those with ongoing businesses but don't have the capital to be able to purchase it we can help to provide the financing for you," said Goodall.