Nigerian drone company Terrahaptix will begin exporting drones to South Africa for mining activities. The company has signed a contract with DiggingDeep, to exclusively distribute its drones to mining companies that need them in South Africa.
DigginDeep specialises in connecting mining operations in Africa with suppliers such as Terrahaptix. This was revealed to Techpoint Africa by the founder Nathan Nwachukwu, who also revealed that "the mining industry is where we have the most customers."
Nwachukwu said the drones will be used to survey and map mining sites. They will also be used to inspect equipment and monitor hazardous areas, reducing the need for workers to enter dangerous zones. They will help identify mineral deposits in hard-to-reach locations and monitor environmental impacts, such as air and water quality around the mine.
According to Mining Technology, 65% of mines globally use drones, a big jump from 44% in 2018. The drone for mining market is currently valued at $31.4 billion and it is projected to reach $103 billion by 2031.
Drones have become vital tools in mining operations, enhancing safety, efficiency, and data collection across various stages of the mining process.
By providing real-time data and aerial views, drones improve decision-making, optimise workflows, and cut costs, making them indispensable tools for modern mining operations.
Nwanchukwu explained that Terrahaptix will be a part of major mining operations in South Africa. While its aerial drones will help with security and site mapping, its ground drones, like the Duma, will assist miners in actual mining activity and ground surveillance
More sales for Terrahaptix
South Africa is now the fifth African country Terraphatic will be exporting to. The company already has clients in Congo, Ghana, Kenya, Cote d'Ivoire, and Nigeria where it produces its drones.
Interestingly, most of its sales come from outside Nigeria — at least 75%. In the next five years, Terrahaptix hopes to dominate the African drone market and Nwanchukwu feels exporting to South Africa validates the company's dexterity in drone manufacturing. "This is going to help us solidify our position as a drone leader on the continent. I see us dominating critical sectors like mining and oil within the next year or two," he said.
Written by Omoruyi Edoigiawerie, a seasoned startup attorney with over a decade of experience. Learn more.
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The two-time founder also shared that the company has surpassed its order target of $1.6 million and it is on track to make over $2 million in its first year of business.
Demand for the company's drones from mining organisations will increase towards the end of 2024.
Nwanchukwu said this was caused by a "mining renaissance in Africa," which is spurred by the increasing popularity for electric vehicles (EV).
A major component of these EVs is their lithium batteries. According to the Energy Institute, the volume of lithium production between 2021 and 2023 increased by 80%. This huge leap in just two years especially given that EVs are still only 14% of cars sold globally are EVs.
As the EV market matures and the demand for lithium increases, Terrahaptix could be positioned to corner the market in Africa. However, it still has a lot of South African drone companies — Aerobotics, DroneSnap, and Drone Air — to compete with and even bigger global drone companies.
One competitive advantage Terrahaptix has is its pricing which is more than 50% cheaper than the competition.
It can achieve this because it sources materials locally — 80% of the drone materials are sourced locally. Sensors and cameras are mostly obtained from China.
At the pace Terrahaptix is growing, major exportation outside Africa could be in the works for the one-year-old startup and competitors and prospective clients will take note by then.
