From Creamer Media in Johannesburg, this is the Real Economy Report.

Sashnee Moodley:

Global mining and mineral processing equipment manufacturer Sandvik’s new high-tech head office facility, workshop and manufacturing complex was officially opened by President Cyril Ramaphosa on September 9. Shannon de Ryhove has the story.

Shannon de Ryhove

Sandvik Mining and Rock Solutions in southern Africa has effectively transitioned its operations to Khomanani, its new high-tech head office facility, workshop and manufacturing complex in Kempton Park, east of Johannesburg.

Representing an investment of R350-million, Khomanani – which accommodates approximately 500 Sandvik employees – consolidates the operations previously undertaken at five separate sites. 

For the first time ever, the company now has its soft rock, hard rock and surface businesses all under one roof. The facility occupies a 62 000 m² site, and is one of Sandvik’s biggest and most advanced facilities globally. It has the ability to produce underground loaders with over 60% local content, designating them as ‘Proudly South African’.

President Cyril Ramaphosa said that the establishment of the facility is testament to government’s commitment to create the conditions that will enable businesses to emerge, grow, access new markets, create new products and hire more employees.

President Cyril Ramaphosa:

In the State of the Nation Address, which I delivered in February this year, I said that government is hard at work to create the conditions that will enable businesses – both big and small – to emerge, to grow, to access new markets, to create new products and to hire more employees.

The establishment of this facility is testament to that commitment [that Sandvik made at the time].

Shannon de Ryhove:

The investment by Sandvik in local manufacturing capacity is an important vote of confidence in South Africa and its mining sector.

Sandvik President and Managing Director of Mechanical Cutting Reinhard Reinartz said the decision to invest in South Africa was a simple one.

Sandvik President and MD of Mechanical Cutting Reinhard Reinartz:

Very simple one, South Africa is still one of the biggest mining markets in the world. The resources here are unbelievable. We've got the coal, the platinum groups, gold, iron ore, you've got surface and underground mining, there is no question to invest here.

Shannon de Ryhove:

Meanwhile, Sandvik is proud of Khomanani’s environmental credentials and the company has prioritised energy and water efficiency.

Sandvik President and MD of Mechanical Cutting Reinhard Reinartz:

Now we have two of the facility halls the workshop halls are already equipped with solar power, we're going to improve that and to be in the end, hopefully far more efficient, or not efficient only, but also independent with the with the solar energy. So let's plan off the building in the first place. Also, certain aspects of the building were actually planned and designed, and in the end executed, having sustainability in mind.

Shannon de Ryhove:

As a further nod to sustainability, Sandvik has developed its TH665B battery electric vehicle, or BEV, with a payload capacity of 65 t. Commercial production of the unit, which ranks as the largest capacity BEV truck in the world, is planned for late 2023.

Sashnee Moodley:

That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy. Don’t forget to listen to the audio version of our Engineering News daily email newsletter.