They ARE… The ‘Strongest Links’

It is a unique concept, and it definitely works. As opposed to a conventional hierarchical business model operating through clusters or subsidiaries, Read, Swatman and Voigt (RSV) has achieved growth and retained its entrepreneurial flair and family ethos - which characterises its brand - through its ‘Linked Enterprises’ business model. This model has seen the company expand into various avenues of business, developing technical expertise within each field, and stretching its geographical footprint.
Laura Cornish reports.

Founded in 1991 on an entrepreneurial model, RSV expanded so rapidly that it quickly became apparent that traditional organisation structures were unable to cope with the rapid growth it was undergoing.

RSV chairman and CEO, Hennie Read says that “many alternative organisational structures, including hierarchical commands and controls as well as cluster models, were considered.”

While the cluster model was adopted for a period, it did not adequately provide for diversification into related market sectors.

Following the creation of the ‘Linked Enterprises’ concept – businesses focusing on different market areas were established as separate functioning companies, with their own management teams, instilled with the drive to seek out opportunities for growth, development and the creation of wealth in various fields.

“We believe that focus and simplicity outweighs scope and scale and that, through collaboration, the RSV Linked Enterprises can offer a comprehensive service to our mining, industrial and infrastructure clients,” Read further explains.
Through this strategy, RSV was able to retain and further enhance its own core skills as hard rock mining consultants and designing and building the necessary and related infrastructure to access an ore body.

RSV is the main link in the chain to seven ‘Linked Enterprises’ including RSV Australia, RSV USA and its most recent, RSV Limitada in Mozambique.
“Looking forward, our aim is to continue to look at opportunities to establish further linked enterprises in Africa, as well as South America,” new business development manager, Harry Nieman unveils.

Ingenious enterprises:

K’Enyuka
Four year old hydro-pyro metallurgical and mineral processing engineers K’Enyuka, is RSV’s first black economic empowerment (BEE) success, with a Level 3 BBBEE rating.

Within a short space of time, the company has established a good track record with its clients, and has become a household name in the platinum, gold, heavy minerals and base metal industries.

Its most recent venture is into the coal sector, where it is currently completing two projects worth R150m.

The company can handle projects with a scope value and size of between R150m and about R1.4bn – which is currently the value of its largest project to date.
“Most exciting is our introduction of a turnkey modular 200tph coal washing plant, which we are marketing as a whole unit, although it can be adapted to clients’ specific needs,” MD Mike Symonds reveals.

A good indication of its strategy for growth and closer client relationships was the establishment of a regional office in Rustenburg at the end of 2008 which K’Enyuka will expand in the new year.

RSV Enco Consulting
Started less than two years ago, this particular linked enterprise with a level 4 BBBEE rating was established as an energy, coal, uranium and infrastructure arm.
“Due to current market conditions, the majority of our work has been in the coal industry,” RSV Enco CEO Neels Engelbrecht says.

Despite its young age, the enterprise has landed quite a number of substantial coal projects since its inception including Sasol’s two new developing coal mines – Thubelisha and Impumelelo (in joint venture with Goba) - both due for completion in 2014.

This is in addition to its now close association with Total Coal SA and its array of projects including Dorstfontein East (in execution phase), Dorstfontein West (feasibility phase) and Eloff (feasibility phase).

Other clients include Siyanda Coal (Koornfontein feasibility study), and Riversdale Mining (full EPCM contract for the Benga coal project in Mozambique).

Engelbrecht explains that one of the company’s highest priorities is expanding further into Africa – and developed its energy and infrastructure capabilities.  The company is very active in doing studies for projects in Mozambique, Zimbabwe and Namibia.

EHL Consulting Engineers (EHL)
2010 marks EHL’s 30th year in business, and is currently RSV’s largest linked enterprise with a staff complement of 180, spread across three regional branches – Johannesburg, Pretoria and Rustenburg.

Unlike RSV’s other linked enterprises, EHL was an acquired business and “represents the largest single discipline consultancy in the electrical, control and instrumentation (EC&I) business in Southern Africa”, says Neville Smal, EHL project engineer.

About 60% (on average) of EHL’s business is generated from the other RSV enterprises, meaning the business exists largely as a support structure company to the linked enterprises, but exist autonomously to many of their other clients.
Looking forward, the company intends to continue supporting all of its existing clients, while striving to expand further into Africa, and also outside of the mining business.

“As electrical efficiency experts, our big focus is renewable energy projects and energy management – aimed at managing maximum energy demand,” EHL technologist, Chris De Klerk illustrates.

While the company has its hands in all commodity sectors, platinum has been the overriding company driver.

The company was recently awarded the feasibility study for the EC&I execution for the new Styldrift platinum project owned by Anglo Platinum and Royal Bafokeng.
“We were also awarded the contract for the EC&I engineering, design and project management of 21 3MW  emergency generators for the entire Anglo Platinum group – scheduled for completion by the middle of 2010.

Other EC&I projects include the Riversdale Benga coal project, a generating plant for First Uranium’s Mine Waste Solutions (MWS) plant and a study for a new Titanium, Magnesium and Zirocnium plant in Saldanha Bay.

Smal says that the company represents a lot of the larger mining clients at Eskom level – an attractive service offering.

RSV (SA)
RSV’s latest enterprise (officially established in November 2009) is a ‘fully fledged BBBEE enterprise’ with 26% BEE shareholding – established from RSV’s existing employee base.

RSV (SA) has three objectives, the primary being to provide stay-in business (SIB) capex for mining-related initiatives – a good place to cut your teeth on, and to start building a sustainable turnover RSV (SA) business development executive Clifford Pinetown describes.

The secondary objective is to continue to grow its portfolio of mine welfare infrastructure projects (corporate social investment).

Under the RSV banner, similar completed projects include new schools, housing, water supply, an essential oils programme and rehabilitation (quarry) projects.
The third leg of the business will look at providing programme and management services to municipalities as well as citizen welfare infrastructure.

While mining-related projects will likely constitute the majority of RSV (SA)’s work, the company is also keen to become involved in industrial projects relating to the built environment and other sectors.

RSV (Australia)
The Australian enterprise has a good track record in diamonds, gold, base metals and coal, from its office based in Perth.

RSV Australia started in May 2006 in West Perth and is nearly 4 years old (3 years and 7 months).

In order to better service and extend its arm further into the coal business, RSV launched a satellite office in Brisbane in April 2009.

RSV (USA)
RSV USA started in 2005 under the leadership of Neels Engelbrecht and Dave Lunderstedt, this company focussed on the feasibility study for Rio Tinto’s Resolution Copper Mine.  Although progression is somewhat hampered by a complex landswap deal work is progressing with the sinking of an exploration shaft.  The company were also instrumental in a project in Brazil for Kinross and further proofed its ability to do work globally from virtual offices.

RSV’s booth number at the MINING INDABA is 1204; RSV where the ‘Linked Enterprises’ will be exhibited.