Having largely been a South Africa-based company with a few exports here and there, under the leadership of new CEO Freddy Mugeri, Hydro Power Equipment (HPE) is aiming for global expansion.

In a video interview with Mining Weekly publishing editor Martin Creamer, Mugeri voiced his intention of turning the company, which has been designing and manufacturing high-pressure water-powered equipment for the mining industry since 1985, into a multinational force.

“The time is right and our shareholders agree,” said Mugeri, who officially took the helm in September, in his first interview as CEO.

A trained engineer, he was drawn to HPE’s engineering excellence – evident in the technology that HPE has perfected over the years – as he too is an innovator, an industrialist and has been building up a portfolio of manufacturing-focused businesses.

“HPE’s technologies are far superior to the other water-powered solutions that I have seen in the mining industry.”

However, expanding beyond South Africa’s borders will require more than ambition.

“I want to build a very strong team that can take us multinational. I have already identified in-house talent comprising capable people in the business. We may need to augment here and there, so that we've got capacity to manage and run a business that operates in multiple geographies.”

Over the next 12 months, Mugeri plans to focus on building a team that can execute this plan, while also expanding locally as he believes there is still scope to double HPE’s business. In parallel, the company will prepare for global entry.

“We will start to analyse all the countries that have mines that can benefit from our technology, beginning with those mines that have narrow or tabular orebodies.”

Thereafter, HPE will choose appropriate route to market channels, be that the setting up of greenfield businesses, acquiring existing businesses in those markets and exporting of products directly or through third parties.

“My first preference is to have HPE dotted all over the world and carry the brand internationally, while still being proudly based here at home in South Africa,” added Mugeri.

Harnessing Water Power

HPE’s story is deeply intertwined with innovation and sustainability. HPE has built a powerful suite of technologies that can be broken into three broad categories.

The first is its range of high-pressure valves, capable of handling pressures up to 250 bar.

“That’s serious pressure, considering that car tyres are pumped to about 2.5 bar. We’re among the few companies in the world manufacturing valves to that pressure rating. These valves are exported worldwide at the moment.”

The second innovation involves energy-saving systems that cut electricity costs associated with pumping water underground to the surface.

“We’ve figured out a system of using the head of the water coming down to push the used water out of the mine. Through that system, we help customers save between R2-millionand R3-million (between $115 000 and $170 000) a month on pumping costs. We’re also developing a product that could revolutionise the industry – hoisting ore using hydropower, especially where vertical shafts are not affordable.”

The third and largest category is HPE’s hydro-powered drilling systems, which deliver impressive productivity gains.

“Our systems help customers get between 20% and 30% more blasts per month,” Mugeri said proudly.

“We’ve designed our system to be extremely reliable, with availabilities consistently north of 90% being achieved, for example, with our Flat End Development Rigs. Indeed, one customer reported 98% availability on our equipment for these systems, which is fantastic.”

Hydro Power is Way Better

Mugeri is confident that HPE’s technology supports the new sustainability agenda in the global mining space.

“Compared with compressed air, we use less than half the energy. Our drills are two to three times faster, improving safety by reducing drillers’ exposure to dangerous areas. Using water for lubrication instead of oil, as with conventional drills, further improves health and safety by not only creating a cooler working environment but also eliminating a mist of oil in the air that could potentially be breathed in by workers.”

For South Africa’s narrow-tabular orebodies, HPE’s technology is a game-changer, reducing the complexity in a confined space.

“Those who have switched to hydro will tell you they don’t want to see an air drill ever again. Hydro is much faster, lighter, cooler and for mine owners, if you can get 20% to 30% more blasts per month, the business case is made,” emphasises Mugeri.

Financially, environmentally and operationally, HPE’s water-powered systems outperform conventional alternatives.

“Compressed air is extremely wasteful – it leaks everywhere. If you compare systems fairly, including compressor costs, hydro is cheaper. In real-life tests, we use less water than air drills, because we’re in and out faster, and have a jet pump to collect water on the ground as well,” elaborated Mugeri.