Q&A: Solutions for the mining, oil and gas, and renewable energy sectors

Berrie de Jager: Head of Natural Resources, Commercial Banking at Standard Bank, discusses the range of solutions available to help take your business to the next level.

Financing of machinery and equipment in mining

Many suppliers to the mining sub-sector require specialist machinery and equipment, some of which must be sourced internationally. What financing solution are available in these situations?

Service providers within the mining sub-sector, typically mining contractors, plant hires, drillers, blasters and transporters, need machinery and assets like vehicles and equipment to service the mining sector.

Some machinery or equipment may have to be imported from overseas and the business would need to make foreign exchange payments and have guarantees in place to secure the assets.

We are one of the leading vehicle and capital equipment financiers for businesses in South Africa. Our dedicated Vehicle and Asset Finance team of experts are able to assist mining service providers with financing for the vehicle or asset.

We are also rated as the Best Foreign Exchange Provider in Africa and provide access to a team of Foreign Exchange and Trade specialists who can help with your International Payment requirements.

Expanding operations in mining

How are you able to assist companies that are ready to expand their operations?

Often when a business has landed a new project or is expanding its operations it would need access to working capital for running of the day-to-day business, and also additional cash for its expansion requirements.

When a business is looking to expand its operations, or has been awarded a contract, and needs financing, our team of experts assist in evaluating the financing needs, and also consider the full agreement, from understanding the new source of business, to the scope of the project.

We also consider the lifespan of the mine that our client is providing services to. We can then structure the loan to the specific expansion requirements of our client.

BBBEE partnerships in mining

What solutions do you offer for companies undergoing mergers and management buyouts in order to form BBBEE partnerships?

Businesses within the mining sector that are looking to form BBBEE partnerships need funding to buy a stake in the entity.

We are able to support mergers and management buyouts and assist in funding BBBEE partnerships.

Our acquisition finance team experts assess the business to determine the ability of the business to service its debt and to ensure we provide the right financing solution for the specific deal.

Solutions in oil and gas

Businesses in oil or gas need a banking partner with an in-depth knowledge of the industry complexities in order to be able to offer a holistic solution that supports their operational and growth aspirations.

Industry experts

To foster success, business leaders need answers to their specific questions. How do industry technical experts assist clients in this regard?

Our natural resources team consists of technical experts who have first-hand experience of the sector.

These experts are able to understand and support your unique business requirements, and provide you with the insights essential for success.

Franchising in oil and gas

The South African fuel retail industry has grown considerably in recent years. How do you assist companies that have franchising requirements in this highly specialised sector?

We help you extract maximum value from your retail networks, and also to expand them. That’s why we have a dedicated franchising unit that is able to provide support to branded marketers for all their franchising requirements.

Cross-border opportunities

For those serious about taking advantage of the growth opportunities in Africa, there can be no substitute for on-the-ground presence in the key markets. What advantages do you offer to clients working in different regions of the continent?

With a network that covers the African continent, we offer our clients solid platforms for growth. We have a strong universal banking payment system allowing us to link clients to markets in Africa.

When it comes to oil, you may need to transact with companies in Nigeria or Uganda, for example – wherever there are sources of oil, there are opportunities to import.

Our local experts in these countries and regions will assist in setting up the linkages. We also provide linkages into the investment banking world, to ensure ease of transacting in that space.

Business support in renewable energy

What categories of business do you support within the renewable energy sub-sector?

We provide services for two types of renewable energy businesses:

• Businesses that are involved in the supply of energy
• Businesses that want to produce energy for own consumption.

On the supply side, a power producer supplies energy into the grid to sell back to Eskom, or enters into a power purchase agreement with a business, like a manufacturer or a commercial property owner, to provide an alternative source of energy.

We’re able to provide financing solutions to assist with the purchase of the assets, such as solar panels or bio digestors.  

On the demand side, you may be looking to reduce electricity costs through moving partially off the grid, or requiring more energy efficient solutions within your business.

We are also able to assist with loans to help finance energy efficiency and renewable energy technologies.