Clean energy and the mining sector
----Interview with Patrick Markey, Sales Director, Cles Fonctionnel Inc
- Asian Metal: Please describe your business.
- We are an integrated mining supply company which optimizes costs of mining consumables by making use of two way transport. Effectively, we attempt to match mining companies imports with mine production exports whilst using the same trucks, containers or vessels to lower delivered logistical costs which are passed on to the mining groups bottom line.
- Asian Metal: The mining industry has suffered over the last few years, how is this affecting the mining consumable business?
- It has been felt in the consumable and reagent supply market through more stringent customer service demands; Requests for better prices, Re-tenders, second or third rounds added to tenders, longer credit terms, local storage of inventory off book/off balance sheet for the mining companies, requests for more transparent cost details throughout the supply chain, shorter term supply contracts and more terms to contracts which allow mining companies greater flexibility in execution.
- Asian Metal: How do you navigate the logistical issues of shipping material in and out of the conflicted areas of Africa?
- Having staff on the ground who rigorously audit and evaluate third party logistical companies reputation, track record, performance and presence in the market is essential to avoid problems. We ensure clients that we have tracking GPS on all trucks in transit and in some cases have escort trucks to follow high value consignments in order to mitigate risk of trucks breaking down and cargo being stranded. We provide all of our clients with a daily tracking report for each vehicle so they may know the position of their material at any given time.
- Asian Metal: Does political risk play an important factor?
- Absolutely. Specifically with relation to laws seemingly passed at a whim having direct impact on imports/exports of minerals, metals or chemical reagents. Having all necessary paperwork dated and executed in order is the best way to avoid unnecessary delays caused by political changes in government. Having local legal advice is common practice to remain compliant with local laws.
- Asian Metal: How has the recent rainy season affected your mining operations?
- We were happy to see the rain arriving this year. It was Desperately needed by certain areas which were so badly hurt last year by the lack thereof which lead to a massive draught. It is at most a nuisance for the mining industry and generally production slows down slightly, but we recognize the greater good it brings for many economies in sub-Saharan Africa. In the agricultural markets, this year could see a bumper crop.
- Asian Metal: Are there any other markets you are currently focused on?
- We have interest in all metal markets, though lately I have been keeping my eye on Cobalt, Lithium and Manganese and how the EV market has been spurred demand for these materials. Also curious as to when Uranium will come out of its multi-year slump.
- Asian Metal: What are your thoughts on the short-medium term outlook here?
- Long term I believe cleaner power production and cleaner vehicle emissions will not only be desirable, it will be essential.
- Asian Metal: How much of a role does China play in these markets?
- China arguably plays the largest role in these markets. Demand for the aforementioned metals will be correlated to global demand for clean energy, and global demand for clean energy will be largely effected by Chinese clean air initiatives. As clean energy becomes more cost effective, China will lead the world on its use and development.
