“There are many Chinese mining companies operating in DRC that tend to prefer working with Chinese suppliers, making this segment of the market difficult to penetrate. We must therefore capitalize on our high safety and quality standards, as well as strict compliance with regulation.”
What recent milestones has MCSC achieved as a growing subcontractor in the DRC?
We started on our second big mining contract in April 2017. The contract is for MMG, an Australia-based company with majority Chinese shareholding. MMG acquired the world-class copper mine Kinsevere in 2012, and we are happy to be one of the companies working on the project. MMG is a well-respected company, and being associated with them has opened a lot of doors for us. I believe we have now cemented ourselves in the subcontracting market of the DRC.
You mentioned that you had to source some 500 new employees for the MMG projects. How were you able to acquire the relevant skillsets in such a quick timeframe?
We have experienced staff on our management team, both local and expatriates. For the MMG project, we mostly sourced locally but also brought in some expats from other countries in Africa. We had to acquire adequate skilled labor rather quickly, and we launched an advertising campaign from which we received a lot of applications. An extensive screening process followed, in which the top candidates were shortlisted, interviewed, selected and trained. Training is an important aspect of what we do and is a continuous process across the company.
While the MMG project has been very beneficial for you, working on major projects also entails additional work such as temporary hiring. What company size will you be targeting in the future?
While we are open to project sizes across the board, our primary target market will be medium-sized clients as it allows us to build stronger relationship with our own employees as we can keep them all onboard for longer periods of time. Ideally, we would work on projects where we can actively put to work a staff of between 200 and 400. Something our clients appreciate in our approach is that we work together with the company and do not expect anyone to pull any weight for us.
There have been few major entries to the mining market as of late and very little exploration happening. What are the major deterrents?
The political and economic situation is still not fully stable, and recent changes to the mining code also created uncertainty amongst investors. Every African country has its challenges, and these must be addressed for investors to feel they are making a safe choice. Even for a profitable company, tax rates can be a challenge, particularly when they are raised with little warning.
What are some discernable trends in regards to service demands from mining companies?
In general, our clients are very open to our advice and often initiate the relationship by inviting us to share as much expertise as possible. Our target is to form an alliance with the client and to try to gain a deep understanding of their goals and needs. Safety is one of our areas of expertise, and we spend a lot of energy on tailoring the safety plan to each individual project. To summarize, the most important thing is two-way communication where both parties approach each other with an open mind.
What is MCSC’s vision for the future and where do you see most opportunity to grow in the near future?
We would like to keep working closely with our current clients and grow those relationships. We do not want to become an enormous company, but rather continue to excel where we currently are with a maximum of four or five sites. There are many Chinese mining companies operating in DRC that tend to prefer working with Chinese suppliers, making this segment of the market difficult to penetrate. We must therefore capitalize on our high safety and quality standards, as well as strict compliance with regulation.