COVER STORY
of tungsten carbide, manufacturers incorporate elements such as nickel, tin, copper and other materials to achieve specific binding properties. “These additives influence the characteristics of the final product — determining, for instance, whether it offers greater abrasion resistance, improved acid resistance, or suitability for particular operating conditions. The composition of the compound plays a critical role in overall performance.” Brelko’s conveyor belt cleaning products are designed to operate in hard rock mining applications. “Our conveyor belt cleaning equipment is used in highly abrasive applications — in gold, platinum, iron ore, and other base metals applications,” explains Pillay. Managing the crisis On a discussion of managing the crisis, Padayachee emphasises the importance of understanding market dynamics and adopting strategic responses to navigate ongoing uncertainty. “It is imperative for business leaders to implement a comprehensive approach to crisis management that incorporates both short- and long-term strategies. This is particularly important considering the ongoing geopolitical tensions, including the escalating US-Israel-Iran conflict, which continues to create uncertainty across global markets. Beyond this, it is imperative to reinvest in the business when the times are favourable as it helps to better stave off challenges during trying times.” Discussing the strategies Brelko is implementing to manage the crisis — including increasing stock holdings and negotiating with suppliers — Padayachee highlights the importance of financial resilience and preparedness in navigating unforeseen disruptions. “With strong financial backing and extensive warehousing capacity, Brelko is well positioned to absorb market pressures, support its operations, and maintain business continuity.” The company sources premium-grade material and has standardised on a single, high-quality tungsten product. Delivery from China typically takes between six and eight weeks from the date of order before the material arrives in South Africa. “Given tungsten’s importance to the manufacturing process, the company has chosen to maintain substantial stock holding — generally around 12 months’
worth of inventory, and in some cases up to 18 months. Because the product line is repetitive in nature, carrying this level of stock ensures supply security and continuity in manufacturing operations,” explains Pillay. Establishing tungsten carbide as an index with SEIFSA The challenge for local manufacturers using tungsten carbide is the fact that the industry body, the Steel and Engineering Industries Federation of Southern Africa’s (SEIFSA) Price and Index Pages
(PIPS) which provides over 260 monthly indices—covering steel, metal, labour, and transport—designed for Contract Price Adjustment (CPA) to manage inflation risks in long-term contracts, has not included tungsten carbide as an index. Widely used in SA’s engineering/mining sectors, these indices allow suppliers and buyers to adjust tender prices based on real, formula-driven cost fluctuations. According to Pillay, Brelko is liaising with SEIFSA in a bid to include tungsten carbide on the list of indices — this will allow the industry to mark-up product
10 MODERN MINING www.modernminingmagazine.co.za | JULY 2026
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