Linked Enterprises A Novel Growth Strategy Provides Added Benefits In Consulting Engineering


Strength in numbers is a term which is often bandied about and in the current economic climate it becomes so much more important as it allows the market to access a wide range of services.

“This is exactly where our linked enterprise strategy comes to the fore,” Hennie Read, founder and CEO of RSV says. RSV’s linked enterprises include K’Enyuka, EHL Consulting Engineers, RSV ENCO, RSV (SA), RSV Australia and RSV USA.

“Our linked enterprises capability through companies such as RSV, K’Enyuka, EHL Consulting Engineers and RSV ENCO is significant. Linked enterprises offer optimum flexibility and we can offer more than simply the individual enterprise components,” Read says.

Read points out that all linked enterprises are essentially independent entities which operate autonomously, with each linked enterprise maintaining a focus on its own disciplines and portion of the market. “However, it is because of this very diversity that the sum of the parts is so strong and successful.

“We are able to access a vast amount of resources within the linked enterprises and we, in turn, give all stakeholders in the linked enterprises a common set of standards, systems and access to invaluable data. This concept differs from the one stop shop since a broader exposure is brought to the market with far greater operational efficiencies, cost efficiencies and experience base,” Read says.

“While each entity concentrates on core specialities in the industry, there is a natural cross pollination which provides the total solution to the client,” Read explains. “Depending on the individual client requirements, various aspects of each entity will come to the fore in varying degrees. So in spite of the underlying speciality of the contribution from each linked enterprise, each enterprise has a project management capability using common systems and procedures.

“The shift towards linked enterprises came when RSV started growing but we were reluctant to develop a large divisionalised organisation. Unfortunately, such organisations are often plagued by inherent inefficiencies so we needed to create a model where other parties in the industry, with complementary businesses, aligned their services with RSV’s service offering to engender a spirit of customer service commonality,” Read says.

The strategy took shape and the RSV shareholders have varying shareholdings in the linked enterprises. “RSV was seen as a specialist in niche aspects of the industry but by linking our businesses with similar minded businesses we have been able to provide a much needed alternative in the market which naturally allows us a greater degree of participation and penetration. This offering has positive benefits for all stakeholders,” Read explains.

“In essence, RSV’s linked enterprises are businesses in related market sectors and through them we offer clients the benefit of combined proven experience across the full spectrum of mining, metallurgical, mineral processing, industrial plant and infrastructure design, installation and commissioning,” Read clarifies.

RSV itself is involved in the engineering and project management of mining projects in the hard rock sector. “We are one of the world’s foremost mining, engineering and project management companies in this and the industrial markets, offering solutions for individual client needs from resource estimation to final commissioning and production ramp-up,” Read says.

“By remaining independent of any supply chain providers, RSV offers an entirely independent, impartial and professional service to our clients through our three divisional entities,” he says. “The Projects Engineering and Management Division encompasses project clusters across the RSV business while Administration and Technical Services incorporates business administration; human capital management; information technology; the environmental, health and safety cluster and the project services cluster. Strategic Business and Global Technology is responsible for business analysis services, the engineering and technology cluster, all international businesses as well as being the strategic interface with all the RSV ‘linked enterprises,” Read explains.

The company has become a forerunner in the African and global mining industries and offers all, or any combination of, multi-disciplinary services from independent technical assessments, scoping, pre- and bankable feasibility studies to overall engineering, project management, commissioning, ramp-up and facility handover.

“In addition, project support in the form of document control, estimating, procurement, cost control and planning takes the hassle factor out of the project equation for customers,” Read says.

K’Enyuka is a BBBEE, medium sized hydro-pyrometallurgical and mineral processing engineering and project management company which undertakes multi commodity process plant projects including coal and uranium.

K’Enyuka’s expertise covers project and construction management in both EPCM (engineering, procurement, construction, management) and LSTK (lump sum turnkey).In addition, the company has specific expertise in preparing high level feasibility studies ranging from conceptual studies through to bankable feasibility studies. “K’Enyuka’s project capital cost estimating capability is considered to be world class,” Mike Symonds, managing director of K’Enyuka, says.

Project services across the whole project spectrum are provided including project management, construction and safety management, procurement, planning, capital cost estimating, project accounting and Hazop/Risk/Value engineering facilitation.

Engineering disciplines offered include metallurgical engineering in hydro-pyrometallurgical and mineral processing; mechanical engineering in piping and materials handling sectors; civil and structural engineering and electrical and instrumentation engineering.

K’Enyuka employs a team of engineers who have been involved in some of the largest heavy mineral concentration plants in the world. “We also have a specific expertise base in mineral processing, flotation and pyrometallurgical environments in plants for a variety of commodities.”

EHL Consulting Engineers operates as a single discipline electrical consulting company registered with Consulting Engineers South Africa (CESA) and adheres to ISO 9001:2000; the Safety, Health and Environmental standards as well as Occupational Health and Safety Act.

“For almost 30 years we have had an established position in the market providing electrical, control and instrumentation (E,C & I) services to predominantly mining houses with a smaller focus on the industrial sector,” Fred Knoetze, managing director of EHL, says.

This focus on the mining sector has resulted in an intimate knowledge of this sector and through its experience the company has gained an understanding of clients’ needs.

“We can offer customers services ranging from the conception right through to delivery of specific customer requirements. Over the years, depending on the economy, we have expanded and retracted while still maintaining a core of skilled and experienced people,” Knoetze says.

The company provides a full range of engineering, procurement and construction management (EPCM) skills within the E,C & I engineering discipline across the gold, platinum, chrome, copper and coal mining industries. “Our focus is on process plants, vertical and decline shafts power reticulation, winder projects, furnaces, associated data communication networks and project management,” Knoetze says.

RSV ENCO is the linked enterprise focusing on the energy – in particular coal and uranium mine development – and infrastructure sectors.

“We have in-house mining experience in the platinum and coal mining sectors,” Allan Wingrove, corporate executive/project principal of RSV ENCO, says.

“However, we place emphasis on energy and coal and from a mining perspective we have the in-house capability to develop a project opportunity from a conceptual level through to final commissioning and handover. This in-house capability includes the early assessment of the mineral resource, financial modelling and production of Competent Person’s reports as may be necessary for listing purposes,” Wingrove adds.

With a focus on project and programme management, RSV ENCO’s foundation is built on world class engineering, the inherent mining intellectual capital across all disciplines coupled with proven project management systems and procedures; a blend of technical and practical operational experience is carried through into the design, procurement, construction, management and commissioning of the full spectrum of mining activities, from exploration through to full production.

“We have discerned that in the energy field, we are better focused on supporting infrastructure as opposed to competing in the supply specialist technology,” Wingrove says. “In addition, we also believe that unlike traditional joint ventures, working with linked enterprises increases efficiency in project delivery through the application of common systems and procedures and the ability to draw on a wide pool of technical and commercial experience.”

“I would suggest the formula for success would be for mining houses to entrust the project management – not just during the planning and commissioning stages, but beyond, to full ramp-up – to service providers who have an appropriate level of project maturity. This will ultimately lead to the overall success of any project,” Read says.

“Ultimately, through the interaction between the linked enterprises, the experience base is expanded with efficiencies and cost benefits to the client,” Read concludes.

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