DISTRIBUTION DEAL CREATING SYNERGIES IN CENTRAL ASIA

As far as mineral reserves go, Kazakhstan is in the top twenty in the world, and mining comprises almost one-third of the country’s export earnings. No wonder then that the competition in the sales of all mining-related goods, including drilling tools, is very tough. Robit secured a distribution deal with a key player in the region.

As a major global exporter of minerals, Kazakhstan benefits from its central geographical location between Europe and Asia. This is also reflected in the name of the largest company supplying machinery and equipment for mining and construction in the area: Eurasian Machinery LLP.

With more than 600 employees, Eurasian Machinery provides customers with high-quality technical services through ten centers in Kazakhstan and Kyrgyzstan. Besides being the official distributor of Hitachi Construction Machinery – their spearhead product line – they also supply the industry with machinery and equipment from a host of other high prestige global brands. As of August 2021, these include Robit.

George Apostolopoulos, Robit’s VP, Global Sales, is thoroughly familiar with the Central Asian market and sees great synergies for Robit in the exclusive distributor agreement with Eurasian Machinery.

“Eurasian Machinery have a strong reputation in the Kazakh market. They have done an excellent job with the Hitachi Construction Machinery brand and have placed themselves among the preferred suppliers for the country’s mining industry. They are present with equipment and service contracts in most of the mines in Kazakhstan and Kyrgyzstan”, George says.

“Customer satisfaction is driving their efforts and they are providing high-quality services to the industry. A high-tech Component Repair Center in Karaganda serves the purpose very well.”

“This is a very significant deal for Robit as the Kazakh mining market is among the biggest in the world. It’s the 2nd largest within our East sales area after Russia. It could provide significant leverage for our sales; big opportunities exist for our Top Hammer products both underground and surface, as well as our Down the Hole offering.”

“There is some tough competition in this market not only from the traditional players but also from low-cost suppliers. This makes it particularly important for us to have a renowned and well-represented distributor in this market”, George concludes.

Picture: A view over the steppes from a chalk mountain in northern Kazakhstan.

AUSDRILL AND ROBIT: A LONG-TERM RELATIONSHIP DOWN UNDER

Mining has long been a key driver of the Australian economy. With more than 350 operating mines, it is one of the world’s leading producers of iron ore, lithium, gold, lead, bauxite, uranium, and zinc, to name but a few, making it a very attractive market for a company like Robit.

Thanks to the acquisition of Drilling Tools Australia (DTA) in 2016, the country is a domestic market for Robit, with customer relationships reaching back to the DTA days. One of these long-standing partners is Ausdrill, one of the largest drilling services providers in Australia, founded in 1987.

We talked to Mark Hercik‑Saul who started with Ausdrill in 2003 as an Offsider, worked his way to Driller to Supervisor to Superintendent and is currently Project Manager for RC regional, looking after some ten RC (Reverse Circulation) drill rigs for various clients in Western Australia and South Australia. Mark has been using Robit’s Down the Hole (DTH) hammers for years.

“Our preferred hammers of choice from Robit are the DR 55 and DR 53, mainly for their downhole reliability, performance, and durability to wear. We have continuous online and in-field support from Robit with any issues that may develop with any of their products. For quality products, the prices are also competitive”, Mark says.

In a busy market like Australia, availability must be a key issue when it comes to drilling consumables. How has Robit been performing on that front?
“We have been working closely with Robit to tailor our frequently ordered parts to meet the demand/ supply to all of our sites. This has been challenging over the last couple of years with Covid-19 restrictions in play, but having local manufacturing close by, I feel the communication has grown stronger through this time”, says Mark.

From your vantage point, what’s the future outlook for the Australian mining sector? What kind of role do you see Robit could play in it?
“Mining is definitely booming, and since the Australian economy is strong at the moment, the demand to keep up supply for all drilling products is high. I think Robit will have an important role in the future by keeping proactive with their site support, which to me is the key to having good relationships and trust between suppliers and companies. They also should be open to new innovations and designs combined with competitively priced products”, Mark concludes.

Picture: An Ausdrill RC drill rig at work at Woodie Woodie Manganese mine, Pilbara, Western Australia

Partnership in the AUSTRALIAN OUTBACK

Western Australia is a land of extremes. It’s sitting on the oldest rock crust on Earth, formed three billion years ago. It’s most likely also home to the oldest life forms on our planet, dating back even further, some three and a half billion years.

Today, human life forms in the state are mostly concentrated on the fertile coastal areas. In contrast, the vast central parts – the Outback – consist mostly of sparsely inhabited hot desert. In these circumstances the only significant economic activity is mining. 15% of all the world’s iron ore is produced in Western Australia; the state is also a major extractor of gold and bauxite.

A young Matt Izett started out as a driller’s assistant, or “offsider”, for a major drilling operator in Western Australia in the 1980s. By the turn of the century he was managing a branch office of a mining supplies company.

In 2005 Matt took another leap forward and founded Ranger Drilling with his wife Julie, specializing mostly in Reverse Circulation (RC) drilling for customersoperating in the West Australian iron ore market. In fourteen years Ranger has, through consistent growth, become a major player in the industry with 19 drill rigs.

A reliable choice for remote locations, RC drilling is a preferred method for mineral exploration. It uses far less water than diamond drilling, making it ideal for arid areas such as Western Australia, where sourcing water is expensive.

Since the beginning, Ranger has made a point of constantly optimizing and customizing tools, equipment and drilling techniques. In this mission, Ranger have enjoyed a great relationship with Robit Australia (formerly DTA) over the last ten years.

Robit supplies Ranger with RC hammers and bits. “We have made DIFOT a priority with Ranger as their business has grown the offering in mining, exploration, and hydro”, says Mark McGrath, Regional Sales Manager, Robit Australia. “Our team does its best to ensure Ranger can continue to provide world class customer service each and every day.”