Manganese mine contract opens doors

Crossroads has recently entered into a contract for the distribution and on-site provision of fuel with Tshipi E' Ntle, a manganese mine in the Northern Cape. Crossroads has been waiting for an opportunity to enter the manganese mining market and this new contract is the perfect foot in the door.

The Tshipi E'Ntle manganese mine is a recent development that seeks to have an annual output of 2.4 million metric tonnes for the next 60 years, with the hopes of pushing this number to 5 million, provided economic circumstances allow for such growth.

The contract with Crossroads involves the provision of on-site fuel delivered from the Kroonstad terminal to a storage facility on the mine. As the mine is opencast which calls for a lot of earth moving equipment, it will use a lot more fuel than a conventional underground mining operation, and the provision of fuel also becomes more strategic.

Crossroads are expected to transport up to 1.5 million litres of fuel per month. Crossroads is confident that their commitment and experience in fuel transportation will enable them to manage the contract into a strategic partnership.

“South Africa has 80% of the world's known manganese deposits, which is why we are excited to enter this market,” says Gerhard van der Horst, Chief Executive Officer at Crossroads. “It is a fast-developing industry in this country and we look forward to growing our business in this area as Tshipi mine increases it's output in the years to come.”

“Our work in the fuel sector is second to none. Our safety standards, driver training, and track record in previous contracts with Chevron, played a big role in this award.”

The contract was not awarded through a tender but rather through an exemplary recommendation from fuel giant Chevron. Crossroads and Chevron have worked together in the past and, in July 2011, Crossroads was contracted by Chevron to transport jet fuel to Cape Town International Airport at the rate of 260 million litres per annum.

“In addition to the standard dangerous goods training we give our drivers every year, our drivers undergo mine safety and medical inspections, and are equipped with the right technology. We also carry out individual risk assessments to ensure that we comply with all mine regulations,” says van der Horst.

“We are thrilled to have one client recommend us to another” adds van der Horst. “It is the ultimate proof that if one looks after the customer properly, the business looks after itself.”