Dust busting in Brazil

JUNE 2010

A MINING services company based in Burleigh Heads has tapped into the lucrative mining rich Brazil to suppress dust in areas where some of the word’s largest mining companies are operating.

Reynolds Soil Technologies (RST) is on target to achieve double digit growth in the next 18 months and is looking at $12 million annual turnover for FY 2010-11.

The company will also build a new manufacturing arm in the Brazilian mining capital of Belo Horizonte to meet demand for its Superskin dust suppressant product.

RST’s technical and development director David Handel, says the company will vie for a bigger slice of the $200 million market of which it now has around 20 per cent. The company RST Ambiental has been set up to alleviate carbon emissions via heavy export.

“Brazil has the hardest tax system in the world and the most confusing structure to set up business, but we have invested considerable time and money into this market,” says Handel.

“We have been importing our products to a third party factory in Brazil up until now, but that will no longer be necessary. It’s also a logistic improvement. Importing and custom clearing the product can currently take up to 90 days. If we can make it available locally, the mining companies can have our products and solutions straight away. This is an excellent kick into the marketplace for us.”

The company has been a key spoke in BHP Billiton’s excellence programs travelling the globe and showcasing its products.

The latest deal follows a trade mission with former Queensland premier Peter Beattie and foreign trade delegates.

RST can now count Canadian gold miner Kinross, the world’s largest iron ore miner Vale and BHP Billiton, Xstrata as its clients.

“Brazil’s dust suppressant market demand would equal Australia’s,” says Handel.

“The Brazilian dust suppressant market is valued at over $100 million. If RST can get in there and maximise the opportunities, we expect huge growth for us.

“We’ve had a very good response from large mining companies in Brazil. They have dust control problems they need solutions for, and we have tailored those solutions for them. “