Mining giant, Exxaro Resources and Barloworld Equipment (BWE) on Wednesday signed a Memorandum of Understanding (MOU) to formalise their partnership which will see contractors having access to the required mining operations equipment at competitive rates and terms, as well as additional post-acquisition support to enable the contractors to execute operational projects.
The three-year, non-exclusive partnership aims to assist Exxaro’s contractors working on the “Project” (which includes drilling, blasting, loading, hauling and coal handling).
Previously, the mining company noted that contractors awarded work lack the means to purchase or lease the equipment required to enable them to execute the Project.
Mxolisi Mgojo, Exxaro CEO explains, “Exxaro has committed to an Enterprise and Supplier Development (ESD) programme to grow the South African economy within the sector and bolster efficiencies in areas we operate. This partnership enables us to empower and support appointed contractors to produce the best quality work.”
The partnership also looks to capacitate Exxaro contractors to build an effective equipment management capability to support the efficient delivery of Projects; and find ways to minimise the capital and operating costs of equipment for contractors by dealing directly with Barloworld Equipment as the authorised distributor and reseller of equipment.
Emmy Leeka, BWE Southern Africa CEO confirms, “This partnership with Exxaro will allow emerging contractors to better participate in major projects.
As the exclusive dealer for Cat earthmoving machines and power systems in Southern Africa, we will give Exxaro’s contractors greater access to equipment, financing and training.”
Partnerships like these, exemplify Exxaro’s goals of contributing to the country’s economy by boosting job creation and skills development within local communities.
Exxaro looks to enter into similar partnerships with Komatsu, Volvo, Bell and other companies alike.