Siyanda Resources is seeking to establish a globally competitive resources company, achieved through acquiring high quality strategic assets with a view to unlocking value and growing its business
Siyanda Resources (Pty) Ltd was formed in 2004 by a group of black mining engineers and industry professionals who commenced operations in the coal industry, with a core focus on utilising its expertise in delivering value.
Since that point in time it has matured and the Company has shifted its attention onto the acquisition and management of acquired assets for optimal performance within the industry.
One of the initial successes achieved by Siyanda was through the acquisition of a struggling asset, which it then went on to turn into a highly profitable entity while also extending the useful life of the asset.
Over time the focus of the Company then moved onto UG2 Chrome extraction, where it considers itself industry experts and currently holds strong equity positions in which it manages and operates the business for significant value.
“We consider ourselves as pioneers and leaders in UG2 Chrome extraction and have continuously produced the best operational expertise in this environment,” explains Imraan Osman, Director of Business Development & Corporate Finance. “At Siyanda, we are also the largest producer of Ferrosilicon globally, and have recently entered into the PGM environment through the acquisition of Union Mine from Anglo Platinum.”
When it comes to making these investments, Siyanda has come to adopt a multi-pronged approach. This has primarily manifested itself from the Company’s core experience in mining and metal processing, and subsequently it has centred its efforts on collective participation in this sector with its association with the local communities and labour.
Osman continues: “Through the development of meaningful strategic partnerships with some major industry players, coupled with local communities and employees, we have been able to unlock significant value.
“We have also ensured that we have active operational participation in every business we work with, alongside a heightened awareness of control within the safety environment, leadership development and empowerment, deployment of technological enhancements and supply chain cost optimisation.”
Sustainable value creation
The main areas of interest for the Company at present lay within platinum metal groups (PGMs), base metals (manganese), energy (coal, uranium, oil & gas) and industrial minerals.
“We have centralised our efforts on both greenfield and brownfield operations,” adds Osman. “Each of the projects we have acquired is set on a long-term basis, with the optimisation of assets being the main goal.”
A great example of Siyanda’s sustainable value creation is through its Koornfontein coal project; with thanks to its internal expertise, the Company was able to turn a loss-making business into a raving success, extending the useful life of the asset from three years to 10.
Osman adds: “Upon the divestment of this asset at a later stage, significant value was unlocked and returned to the employees of the business and local community.”
Another key project that is currently being undertaken is the establishment of a ferrochrome smelter, in which the Company is targeting the utilisation of advanced technologies in order to target energy reduction and improve furnace utilisation.
“In addition to the aforementioned project, we are working with international partners in order to install new technologies that will substantially improve recoveries in the PGM process environment and unlocking significant value for each business,” continues Osman. “When it comes to operations in the chrome business, the Company is currently in the middle of advanced engagements with a third party specialist, hoping to see improved yields from the chrome extraction process.
“We are also working with a local mineral processing research institute in order to explore the numerous opportunities available when it comes to unlocking value from ferro-platinum. We know that achieving results are the base-line of every business and that is how we differentiate ourselves from our competitors.”
Significant industry trends
In order to stay ahead in such a competitive market Siyanda recognises that it needs to be a disruptive force within the industry, thinking outside the box and driving forward innovation and progress.
In terms of the use of its commodities such as chrome and ferrosilicon, Siyanda is continuing to keep ahead of the upstream and downstream process value chain. In order to exploit this value chain, it has embarked on a process with a view to identify growth opportunities and new markets which can make use of its commodities.
“In terms of Ferrosilicon, we are working on exploring the opportunities to deliver our products in new international markets,” explains Osman. “Further to this, we have completed pilot testing on new products through the use of enhanced technologies in order to secure new regions to branch into at international levels.”
At present Siyanda has operational assets within South Africa and continues to explore opportunities there, however, its commodities are marketed and utilised globally by the continuous search for value accretive markets.
When it comes to finding the right people to handle the tough and ever-changing markets Siyanda operates in, its hiring approach is centred on finding high potential individuals with strong core values.
“We support these individuals through offering them leadership development in the form of empowerment and accountability,” adds Osman. “We ensure the Company maintains flat operational structures which enable our teams to meet the high standards required for accelerated individual growth and development.”
At the core of Siyanda’s responsibilities is the safety and wellbeing of its people, and in addition its identity is defined by both its passion and drive towards the successful transformation of the mining industry.
“We are fully focussed on our thought leadership, continuously seeking to empower people and present opportunities to develop leadership within businesses,” concludes Osman. “At Siyanda, our passion is further driven by a fervent commitment to social economic development, despite being a smaller organisation we contribute meaningfully to this.”
“It is my hope that moving forwards, Siyanda will be recognised as an ambassador for the meaningful transformation occurring within the mining industry for many years to come.”