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In one of their largest private equity investments to date, RMB Ventures has acquired a 45% stake in Mafika Engineering, a world-leading independent rebuilder of high-horsepower (HHP) diesel engines for the mining industry.

Mafika Engineering performs “Zero-Hour” rebuilds (returned to good-as-new, or better-than-new with upgrades and enhancements) of HHP and ultra-HHP engines used in front-line mining equipment such as ultra-class haul trucks, dozers and excavators. Established 20 years ago, Mafika rebuilds all makes of diesel engines, particularly Cummins, Komatsu and Caterpillar engines. 

These rebuilt machines are fundamental drivers of mine efficiency and profitability.

Mafika Engineering recently opened a new state-of-the-art rebuild centre in Germiston, Gauteng to expand operations as an HHP engine remanufacturer and one of only a few original equipment manufacturer-agnostic HHP engine rebuilders in the world.

The homegrown South African business provides a world-class service to some of the largest mining houses on the continent and around the globe. Already, it is the preferred engine rebuilder to some of the world’s largest mining groups. 

By remanufacturing mission-critical engines, Mafika Engineering helps its customers reap the rewards of the circular economy. 

Remanufacturing offers mining houses an opportunity to recycle existing resources, restoring their equipment’s efficiency and output matching the quality of OEM engines, for a lower price. Mafika is also well-positioned to offset the long equipment lead times and downtime costs experienced by mining companies around the world. 

Globally, remanufacturing has received growing interest. For the heavy machinery industry, remanufacturing extends the life of high-value mining assets, and reduces waste and emissions. 

The environmental benefits of sustainable remanufacturing are numerous, including reduced consumption of raw materials, reduced energy consumption during the remanufacturing process and significantly reduced waste sent to landfills.

There is also a positive impact on power consumption: rebuilt engines require 50% less energy to produce compared to a new engine, with annual energy savings by remanufacturing world-wide equal to the electricity generated by five nuclear power plants or 10.7 million barrels of crude oil.

As Mafika’s world-class service and capabilities have become widely recognised, it has received growing interest from large mining houses, which required it to scale to take advantage of a range of exciting growth opportunities.

In addition to the equity investment, RMB Ventures will help instill the appropriate systems, processes and funding to position Mafika for further growth, without losing the flexibility and responsiveness that is vital in servicing its customers.

Graydon Epstein, director of Mafika Engineering, says RMB Ventures is the perfect fit because it is skilled in supporting businesses through significant growth phases, while retaining the entrepreneurial business’s unique culture and flexibility. In addition to this, having a partner within the FirstRand Group allows Mafika to gain access to broader networks within the mining sector and further accelerate its growth aspirations.

RMB Ventures will work with Mafika’s management team to build the foundation to support a different scale of operations and help Mafika Engineering reach its full potential. DM

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