One of the leading mining engineering consultancies in South Africa, Read, Swatman & Voigt (Pty) Ltd (RSV), is expanding its client base to include investors and lenders in the mining industry to meet the increasing demand for high-level evaluations of mining projects. These include initial technical assessments, due diligence studies, competent person’s reports and feasibility studies.
The continuing rise in commodity prices has stimulated the demand for precious metals, adding impetus to global exploration activities, and leading to a sharp increase in the demand for these specialised services.
New business director Neels Engelbrecht says: “We have always provided these services to our existing clients, who are mainly large operating mining companies. We realise, however, that investors and lenders do not require the detail that operators do, but rather highlydistilled reports that quantify the salient elements of a project,” he adds.
“The acquisition of a mineral resource is perhaps the ultimate leap of faith, as the buyer is acquiring the asset ‘sight unseen’, and hence requires expert advice,” Engelbrecht explains. “By taking advantage of our experience and expertise, the investment community can protect itself from unnecessary risk and wasteful capital outlays.”
He explains that the purpose of a due diligence study is to prove the value-adding potential of an asset during the transaction, or negotiation, phase, and to evaluate inherent risk. An ITA is an element of the due diligence process, but relates to the operational and technical aspects of the transaction.
Based in Johannesburg, RSV has an international portfolio of project experience, with linked enterprises in Australia and the United States, and projects throughout southern Africa, as well as Australia, the United States and southern Mongolia.