Standard Bank believes in and subscribes to the values of sustainability, continuity and consistency and in line with these principles, the Bank has built and fostered relationships with some of their clients for decades, offering the full sphere of banking services to these clients.
Additionally, to ensure that the Bank remains on top of their game and occupy space at the forefront of servicing the mining and metals’ industry, Standard Bank employs a number of industry experts – not only in Namibia but in the region as a whole.
During last month’s Mining Expo, Standard Bank’s Client Coverage Manager, Stefan Wandrag explained that the in-house experts have helped the bank make inroads in a number of significant projects. These experts – who are held in high regard by the bank- have critical skills ranging from more scientific disciplines, such as engineers, geologists and, of course, financial gurus.
In the mining and metals’ space one of the most noteworthy transactions which Standard Bank has to date been involved in and one which impacts the economy of the country relates to the co-finance of De Beers Marine multi-million-dollar diamond exploration and mining vessels.
“Another engagement which we are excited about is our involvement in the first local mining contractors to with Lewcor Mining. They remain proud to have been engaged in and associated with this open-cast mining operation. To the benefit of Namibia and all its people, Lewcor Mining distinguishes itself to be the most reliable operator in the sector,” he added.
Amongst others, Standard Bank is engaged in a number of core sectors, including collaboration with large multinational clients on both a group level as well as on an in-country scale. Wandrag pointed out that their wide-ranging services include credit and risk management services. Moreover, commodity price movement protection, day-to-day banking transactions, working capital financing as well as commodity price and interest rate hedging also form part of bouquet of value-for-money services they provide to their clients.
“We support a number of what we believe to be key players in mining sector, representing the future of mining,” Wandrag stated. The commodities of the Bank’s current clients in the mining and metals’ sector include diamonds, uranium and zinc.
Banks have had to revisit the ways in which they conduct business and have had to become equally resilient. There has been a huge amount of pressure, even on multinational mines which has forced banks to redefine the way they partner with clients.
However, Wandrag said it is imperative to bear in mind that mining is a cyclical industry which is affected by various variables. “There are peaks and there are troughs. It is important that banks partner with a client they understand. This, without a doubt, necessitates a transparent banker-client relationship in which both partners are open and frank with one another. “You have to support them for the long term, during both the high tides as well as the difficult times,” he said
As a result, Standard Bank is meticulous and very selective as far as their partners are concerned in order to ensure that both parties are able to withstand whatever challenges they may be presented with along the way.
He further explained that this is because the Bank attaches a high premium to a deepened relationship with clients in the commodity space and one to enter into an agreement that will stand the test of time. Such a relationship also empowers the Bank to appreciate and be mindful of the complexity of the world the client operates in.
Part of what the Bank focuses on when considering to enter into a deal with as client relates to what mechanisms and structures such a prospective client has in place to reduce costs during economically challenging times without negatively affecting production.
As a responsible corporate citizen, abiding by all laws, particularly labour and equality requirements, they only engage clients who honour the same principles.
“Because of our history as a mining bank and our enduring expertise in this sector, we work to understand our clients’ individual requirements. Like many large investment banks, we work with government, corporates and financial clients in multiple sectors and geographies. Unlike most, we are first and foremost Namibian. We have a long, proud history that gives us unique depth of expertise and breadth of footprint. Our track record shows our success in building businesses across Namibia, especially in the natural resources, mining, power and infrastructure sectors,” he concluded.