Exxaro Resources and Barloworld Equipment (BWE) have signed a memorandum of understanding that could see the mining company’s contractors gain access to the required mining operations equipment at competitive rates and terms, as well as additional post-acquisition support to enable the contractors to execute operational projects.

The three-year, non-exclusive partnership aims to assist Exxaro’s contractors working on the projects including drilling, blasting, loading, hauling and coal handling. Previously Exxaro noted that contractors awarded work lacked the means to purchase or lease the equipment required to enable them to execute said projects.

Mxolisi Mgojo, Exxaro CEO, said: “Exxaro has committed to an enterprise and supplier development program to grow the South African economy within the sector and bolster efficiencies in areas we operate. This partnership enables us to empower and support appointed contractors to produce the best quality work.”

The partnership also looks to capacitate Exxaro contractors to build an effective equipment management capability to support the efficient delivery of projects; and find ways to minimise the capital and operating costs of equipment for contractors by dealing directly with BWE as the authorised distributor and reseller of equipment, Exxaro said.

Emmy Leeka, BWE Southern Africa CEO, said: “This partnership with Exxaro will allow emerging contractors to better participate in major projects. As the exclusive dealer for Cat earthmoving machines and power systems in Southern Africa, we will give Exxaro’s contractors greater access to equipment, financing and training.”

Exxaro looks to enter into similar partnerships with Komatsu, Volvo, Bell and other companies alike.