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May 2015
MODERN MINING
39
COMPANIES
challenging market
Above:
Scaw offers the
full spectrum of grinding
media products for mining
including high alloy cast
grinding media and forged
steel grinding media. Seen
here are forged steel balls
been manufactured.
Left:
Scaw’s Wire Rod
Products Division is a
leading manufacturer and
distributor of specialised
commercial steel ropes,
wire, PC strand and chains
for applications in mining
(and other industries).
five years, although this will be dependent on
market conditions. Certainly the IDC is very
supportive of our plans to remain at the leading
edge of steel products manufacture and to grow
the business both in Africa and internationally.”
As a private company, Scaw has no obli-
gation to produce annual reports but it does
so. The most recent was for the year ending
31 March 2014 and reveals a group that was in
extremely good shape at that point, given weak
local demand over most sectors combined with
increased import competition. Revenue for the
12-month period was R6,5 billion while earn-
ings (before interest, tax and depreciation) were
R361 million, an improvement of 10 % over the
corresponding prior period. Capex over the 12
months amounted to R356 million.
According to the annual report, export sales
accounted for 23 % of total revenue. “We are
hoping to grow this figure considerably,” says
Hannemann. “Geographical diversification is
an important part of our strategy, particularly
given the fact that one of our key markets –
gold mining in South Africa – is in long-term
decline. Africa offers us the biggest growth
potential with the areas that look especially
promising being West Africa and the Central
African Copperbelt region of Zambia and the
DRC. But we certainly don’t exclude the over-
seas market. We already have a presence in
Italy, where we own 31 % of GSI Lucchini,