Trade of raw materials and components is crucial for any company or industry that sells products. McKinsey suggests that commodities trading is inherently complex: supply chains are long, and miners are often located in regions far from their customers. For example, in 2021, more than 40 per cent of copper concentrates were produced in South America, and more than 35 per cent of these copper concentrates were refined to copper in China.
Organising apt business planning and management while formulating commodity trading strategies has become increasingly important in today's dynamic commodity markets. Variability in demand, capacity and costs reduce profit margins for companies across sectors.
In Namibia in southern Africa, a group of 120 sites operates on mining and producing critical metals. Mining is considered the most significant contributor to this small African country’s economy, in terms of revenue. In 2019, the mining industry contributed over 300 million dollars to government revenue, and the whole sector contributed around 2.2 billion dollars to the national economy. The local community and the well-being of people are highly dependent on the development of this industry. This group of sites belongs to a multinational company, KCi Group. KCi Group has expanded its reach to five continents with its eight lines of the business portfolio.
The story behind KCi Group's commitment to mining operations in Namibia started two years ago. As a trading company, KCi Group fully understands the fragmentation and instability of the global supply chain, which has caused an adverse impact on its clients’ operations. With the ambition to provide more flexible, reliable and robust assets, the company fundamentally adapted its business to tackle the challenge — going to the source, the beginning of the supply chain, mining sites, and miners.
Namibia's government describes mining as "a best prospect industry sector for this country". The fact that Namibia's economy and working community rely on the mining industry means that as a large-scale site holder, KCi Group has the capability and responsibility of generating enormous economic and social welfare. Deon Smith, Executive Director at 360KCi, a brand of KCi Group, says achieving sustainable growth is a common goal that the company and the government are mutually pursuing. KCi has been a critical player. "KCi's primary objective and function in Namibia is to create a symbiotic existence between government and local communities, creating sustainability in terms of our environmental responsibilities and work ethics."
Not merely operations in Namibia and metal mining, as a valuable partner and solution provider for companies across sectors, today, KCi Group's brands, subsidiaries and ventures span around the world, covering a diversified investment and operative portfolio.