The build, operate, transfer (BOT) model is seen as a way of opening the doors of the mining sector to junior miners and emerging contractors.

The concept is based on a partnership between experienced mining contractors and junior miners or emerging contractors, in which the experienced partner assumes some of the initial risk in mining projects, giving the junior partner a firmer basis for sustainable growth.

Integrated crushing, mining and mineral processing solutions company, B&E International, has adopted this model as part of its commitment to transforming  the mining industry, by building local expertise and capacity.

The Level 1 Broad-based Black Economic Empowerment (BBBEE) contributor asserts that it is able to offer its experience of operating crushing plants as well as designing and manufacturing its equipment locally, in order to assume a large portion of the initial risk for smaller players.

B&E International goes on to explain that new entrants to the mining sector may face both financial and technical hurdles, such as the requirement by  financial institutions for a strong balance sheet, which many young companies do not have. There is also the risk that a new plant may not run smoothly or to specified capacity, demanding a depth of technical expertise which a new contractor may not have developed.

The company designs and builds the plant to suit its BOT partner’s operational needs and then runs the plant, with the partner paying only for the final saleable product from the plant.

The arrangement is a close collaboration with the partner, who must be assured of meeting their contractual obligations to the end-customer, emphasises the company.

In addition, it views the transfer aspect of the BOT contract as an important step in growing a new generation of miners and contractors in South Africa. To this end, BOT partners are able to take over ownership of the plant after an agreed period of time, should they wish to assume control of the operation of processing activities.