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Aggregate demand grows amid infrastructure boom, challenges remain

17th May 2013

By: Anine Kilian

Contributing Editor Online

  

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One of the major challenges still affecting the aggregate industry is that quarries are not being used to capacity, which has put a strain on employment in the industry, states the Aggregate and Sand Producers Association of Southern Africa (Aspasa).

“If quarries are used properly, it will result in job creation,” notes Aspasa director Nico Pienaar.

However, he states that, simultaneoulsy, there is a great demand for properly skilled people in the industry.

“There is a serious problem with the quality of education being received by students. The education system is not up to scratch and, therefore, it is difficult to find a highly-skilled and appropriately trained person who has recently obtained a matric certificate, in the industry,” Pienaar says.

He adds that the sector educa- tion and training authority- (Seta)- accredited training that is available is costly and he feels that the authority is ineffective in its approach to training.

“Aspasa is trying to set standards and qualifications, which is not our responsibility – this should be done by the Seta. Aspasa pays the Seta a lot of money and it is not being spent properly – it is sitting in reserves,” states Pienaar, adding that Aspasa feels that there is too much red tape around certain challenges and it is cumbersome to make a positive change.

He adds, however, that the industry has improved as a result of more roads, dams and power stations being developed recently.

“There is a lot of new demand in terms of infrastructural develop- ment coming from government. For example, in the past, there were problems in the Free State, with many road contracts cancelled or put on hold, owing to corruption.

“The terrible road conditions in the Drakensburg, in KwaZulu-Natal, are being addressed by local government, which is going to have a positive impact on the aggregate industry,” Pienaar says.

The aggregate industry, which supplies the construction and infrastructure market, has expe- rienced increased demand for construction materials since 2011, he tells Engineering News.

“The industry is finally picking up and looking more positive than it has in past years,” Pienaar says, adding that there were various challenges that impacted negatively on the industry.

“One of the challenges the industry faced in the past was that everyone thought infrastructure and development would continue at the same pace that it did during the 2010 FIFA World Cup. Instead of picking up, construction and the development of logistics began to stagnate, and this had a profound effect on the industry,” he explains.

Pienaar adds that the industry took another knock during the recession in 2011.

“A lot of work, such as the development of roads and general infrastructure, was cancelled or put on hold,” he notes, adding that there are also major challenges regarding illegal mining.

“Government departments are attempting to put a stop to this, but the problem is so widely spread that it is difficult to control,” he says, and notes that the lengthy delay in obtaining mining authorisation for quarries is exacerbating the problem.

“The authorisation process is lengthy and people become frustrated, as this delays project start-up. Therefore, companies decide to proceed with opening quarries illegally, as it is an easier solution than waiting for up to a year to obtain a permit,” Pienaar explains.

He notes that the Department of Environmental Affairs has dedicated one of its internal departments to combatting illegal mining.

“Other challenges the industry faces are cost related. The diesel price has increased significantly, which has, in turn, caused product prices to inflate,” Pienaar says.

He states that industry growth will continue to come from within the infrastructure development and construction markets and that government and financial institutions should build more shopping centres, power stations, dams and roads.

“Once infrastructure gets going, the industry – and with it, other economic sectors – will expand. When infrastructure and construction stagnate, so does the industry,” he says.

Meanwhile, Pienaar notes that Aspasa has a responsibility to represent the aggregate industry as a whole and needs to find ways to make it more sustainable.

“There are rules and regulations in the industry that need to be followed and we do a lot to try to help our members stick to these rules to reduce the number of illegal companies competing with us,” he states.

Pienaar adds that the association has a health and safety programme which advises members on where they fall short on the Mine Health and Safety Act.

“We also have an environmental programme, which involves audits and advising members on where they fall short in terms of the Mineral Resources and Petroleum Development Act and environmental legislation. In this way, members’ practices are monitored to help them stay up to date with the relevant knowledge and legislation in the industry,” he concludes.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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