Engineering, procurement and construction management company TWP will use the opportunity to exhibit at this year’s yearly Investing in African Mining Indaba, in Cape Town, to publicise its poten- tial acquisition by global project delivery company WorleyParsons.

The acquisition will assist TWP in effectively achieving its strategic intent to globalise and diversify the business geographically and within different markets, says TWP CEO Digby Glover.

“The acquisition will elevate the company into the league that we’ve been working towards achieving for several years. The engineering industry has become global and most big jobs are done by large multi- nationals, while niche players compete for the rest.

“At present, we are a large specialist player with sought-after mining and process skills, but we are small in terms of the global market. We will now have access to a footprint that extends across the globe. There are numerous opportunities globally as a result of WorleyParsons’ exposure to the market,” he says.

Glover states that TWP has been an exhibitor at the Mining Indaba for eight years and has seen the exhibition grow from an event hosting a small, select group to a large multitiered exhibition.

“The Indaba is important in terms of local conferences for the local and international mining industry. Its Cape Town location is an internationally attractive city that brings many stakeholders in the global mining industry to the event,” he says.

Glover adds that the Indaba, which runs from February 4 to 7, raises the profiles of the South African and African mining industries and is a solid confirmation of the strong potential of the South African and African mining industries.

“It opens discussions around mining, whether political or economic, and focuses on where interests currently lie and what is happening in terms of commodities,” he says.

He explains that the Indaba is a good place to reaffirm the TWP brand and allows many different people at various organisation levels to see that TWP is a significant player in the African mining industry.

“It also gives us an opportunity to rekindle relationships with various people in the industry and it is a good forum for having conversations pertaining to the current state of the industry and the way forward,” notes Glover.

He adds that it is also a good platform for meeting with old acquaintances and friends.

“Most of the world’s top mining companies attend, and it is a necessary forum for conversations to take place, which can positively influence the direction of the industry,” states Glover.

He adds that TWP prepares for the Indaba months in advance to ensure the company has a good location and a solid presentation for the event.

State of the Industry

Glover states that South Africa made a good recovery after the 2008 financial crisis and, up to this year, the industry has been doing reasonably well.

“TWP had a good year in 2012, on the back of capital spent in the country and in surrounding countries, even though the commodity industry in general is under pressure,” he says.

nfortunately, he adds, social and political issues in the country are negatively affecting the mining industry, highlighting the con- tinued resource nationalisation discussion and the recent widespread wage-related strikes.

“Societal inequity is increasingly putting pressure on decision-makers to make policy changes. Unfortunately, the solution is not a short-term one. Robust, sustained economic growth is essential to improve the situation for everyone. “However, if policies become too puni- tive, international business will choose to invest capital elsewhere, which will hamper economic growth.

TWP has a number of strategies to deal with challenges in specific markets, including a number of social and economic development initiatives in specific regions as well as increased geographic diversification to allow for a continued presence and development in lean areas, whilst supporting operations from better-performing areas. “This diversification is essential in our industry. The industry as a whole, as well as the multitude of sectors within the indus- try, is prone to significant fluctuation,” states Glover.