"The growth curve that started about four or five years ago is finally materializing, driven by investments in new projects."
Could you bring us up to date with the latest developments at Kal Tire in Southern Africa?
The business volumes in the last 12 months have been really good for the company. The general improvement in global commodity pricing has been the key contributor to the upbeat performance. Kal Tire’s extensive footprint in the mining industry across the region has been extensively leveraged to support the expansion in the gold, iron, manganese, and copper operations. Business volumes remain encouraging, despite the influence of the Covid economy, although the industry has to a large extent not seen a significant slowdown in the mining economy. In fact, the growth curve that started about four or five years ago is finally materializing, driven by investments in new projects that we continue to depend on for our future growth opportunities.
How has the Maple program evolved since we last spoke?
At the foundation of our Maple program is a carbon calculator that has been verified by a leading independent third party. If our customers choose to retread their mining tires vs purchasing new ones, they will receive a certificate from Kal Tire providing the actual verified data on how much carbon and oil they have saved. Recently, we added repairs of tires 49” and above to the program, which will enable many more customers to receive certificates and better align their operations from an ESG perspective.
The Maple program is particularly relevant to countries with existing carbon taxation legislation. In Africa, no country has implemented a carbon tax program, although South Africa is considering the possibility. When this happens, the Maple Program will have a much greater significance to the mining industry.
What is the general attitude of mining companies when it comes to tire recycling?
Tyre consumption in open pit mining is probably among the top three biggest cost items - after fuel and wages. When mining companies look at tire management services from a cost optimization angle, tyre retreading and tyre repairs are often included in their operating budget as a means to maximise their return of their investment in mining tyres. In all cases, the abatement of end-of-life tyres is not considered as part of the operational expenditure of a mine, but rather defers the cost to the end of the life of a mine under a reclamation or rehabilitation budget. In reality, tyre abatement should become an operational process that takes place on a daily basis to avoid environmental challenges associated with the storing of significant volumes of scrap tyres. Kal Tire’s recycling solution should encourage mining operators to confidently recycle their tyres in an ethical manner that contributes to the circular economy.
Where do you see the biggest opportunities in the region?
The entire African continent remains a very attractive investment destination as emerging markets continue to provide the strongest growth opportunities and returns. If we follow the trends where customers spend their exploration dollars, we arrive in West Africa, where big projects like Simandou are developing, or in countries such as the DRC and Botswana, both with world-class projects underway, like Kamoa (the DRC) or Khoemacau (Botswana). The regulatory environment is also changing positively, such as in Zambia, where the change in government is generating a lot of optimism and also remodelling the relationship between the state and the mining industry.
Could you comment on your approach to talent development on the continent?
Attracting and retaining talent remains a major challenge in Africa. Kal Tire is focused on developing talent from within the organization through a best-in-class training program. The program is based on the global standard for mining tires (TIA, Tire Industry Association). Our highly skilled professionals are a strong differentiating feature especially in remote mining destinations. Our commitment to developing our team members, including world-class training, attracts the best employment candidates from around the continent.
Do you have a final message?
For anyone who has an interest in best-in-class expertise and top-calibre talent, I invite them to consider Kal Tire and understand the real value of our offering to the entire mining market. Our reputation stems from many decades of professional know-how, punctuality and innovation. In everything we do, Kal Tire can play a key role in our customers’ ESG journey.