BE.Monthly

ACHIEVING BUSINESS EXCELLENCE ONLINE

MONTHLY EDITION December 2012

special report:

AMBATOVY The largest investment project in the history of Madagascar

KGHM Polska Miedz: Into the deep

europcar: Move as you choose

Newmont Ghana Gold:

Setting an example

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editorial

EDITORIAL

Martin ashcroft

Martin Ashcroft Editor In Chief mashcroft@bus-ex.com

Martin has edited business magazines for 15 years and has been editor-in-chief since BE began in 2006.

Will Daynes editor wdaynes@bus-ex.com

will daynes

Will has been a business writer for three years. He joined the Business Excellence team in September 2012.

DESIGN

Matt Johnson Art Director mjohnson@bus-ex.com Louise Culling Production Designer lculling@bus-ex.com

BUSINESS

Richard Turner Director of sales rturner@bus-ex.com Vince Kielty Director of Editorial Research vkielty@bus-ex.com Sharon Rooke Administration & Operations srooke@bus-ex.com Matt Day Head of technology mday@bus-ex.com Andy Turner Chief Executive aturner@bus-ex.com

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www.bus-ex.com The content of this magazine is copyright of Infinity Business Media Ltd. Redistribution or reproduction of any content is prohibited.

CONTRIBUTORS Our contributors are all thought-leaders in their own field, from strategic thinking to operational excellence, from supply chain management to customer service, finance, technology, culture change and more.

David Dumeresque

A partner at Tyzack Partners with over 25 years’ experience as an advisor to both large multinationals and small businesses.

David G Hartman

Blue Canyon Partners’ China Practice Director speaks Mandarin, lives in Beijing and has 20 years’ experience in China.

Sechaba Letaba

Sechaba Letaba is CEO of Kudumane Manganese Resources, a mining operation in South Africa’s Northern Cape Province.

Roskill Information Services

Regarded as one of the leading global sources of market research on industrial minerals, minor metals and steel alloys.

Tell us your stor y

If your company has something to talk about then get in touch and find out how to BE seen. vincent@bus-ex.com

© Copyright 2012 Infinity Business Media Ltd.

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december 2012

12

10 BUsiNess BooKsHelF

frOM ThE sTOrM, TO BArEfOOT On ThE BEAch

Teamwork at the edge of human endurance; hardship, hustle and heart, and the flip-flop perfumer.

12 coMMeNt: iroN ore iNDUstrY

TurBulEnT TiMEs

A new report offers an insight into the dynamics driving the iron ore market, and offers a market outlook to 2020.

14

14 leaD storY: tWo DecaDes oF cHaNGe (part tWo)

ThE EMErgEncE Of nATiOnAl MArkETs

After twenty years of market creation in China, profound changes have taken place that affect how international companies operate there.

22 leaDersHip

shifTing ThE ‘BunkEr’ MindsET

Are the leaders who managed businesses through the early stages of the economic downturn still the right people to lead us into the next stage of recovery?

28 eXecUtiVe iNsiGHt

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sEchABA lETABA

The CEO of Kudumane Manganese Resources talks about leadership, Nelson Mandela and labour unions.

contents

32

TElEcOMs 32 sÍMiNN

ThE cOnnEcTEd islE Iceland has an innovative business and entertainment sector supported by one of the world’s most advanced telecoms corporations.

44 telecel ZiMBaBWe

gAining nATiOnAl cOVErAgE CEO Francis Mawindi talks about delivering mobile phone coverage to 90 percent of the population by 2013.

52 aQUiVa Wireless

hArd dATA: fAsT grOwTh

44

60

This internet access provider is pushing for growth in Zimbabwe’s telecommunications industry.

60 lesotHo coMMUNicatioNs aUtHoritY cAlling AcrOss ThE cAnYOns

The regulator’s responsibility and challenges in meeting the population’s expectations for 21st century communications.

TEchnOlOgY 68 asia paciFic ict alliaNce (apicta)

uniTing AsiA’s sOfTwArE indusTrY Each year APICTA recognises the best in innovation from across the Asia Pacific ICT community.

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business showcase

fOOd & drink 76 aFriFresH GroUp

A frEsh ApprOAch

76 86

This South African fresh fruit producer has developed a powerful integrated agricultural business model.

TrAnspOrT & lOgisTics 86 KHaliFa BiN salMaN port (KBsp): apM terMiNal

TOMOrrOw’s TrAdE sOluTiOns, TOdAY Chief executive officer Marco Neelsen discusses the crucial role KBSP is playing in the development of Bahrain as a centre of trade and economic activity.

94 eUropcar

MOVE As YOu chOOsE Understanding the behaviour of travellers keeps the leading global car rental brand ahead of the trend.

EnErgY 102 aFricaN eNerGY A dEcAdE Of rEliABiliTY

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Managing director Lincoln Dahl discusses how his company has remained at the centre of a rapidly evolving market.

contents

Oil & gAs 110 seaDoG coMMercial DiViNG scHool

EducATing ThE nExT gEnErATiOn The provision of commercial diver training is contributing towards South Africa’s development as a hub for oil and gas activities.

118 aFrica GeopHYsical serVices (aGs)

118

MAking wAVEs

A team of experienced seismic experts is paving the way for others to reap the rewards that East Africa has to offer.

Mining 126 NeWMoNt GHaNa GolD

sETTing An ExAMplE

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142

George Brakoh, manager of local supplier and contractor development, explains how the mine’s economic legacy will benefit the local community for years to come.

142 KUDUMaNe MaNGaNese resoUrces kEEping iT siMplE

Developing a mining operation in one of South Africa’s poorest regions, and keeping the local community at the core.

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business showcase

152

152 KGHM polsKa MieDZ: sierra GorDa proJect inTO ThE dEEp

The on-going development of the Sierra Gorda open pit copper mine in Chile.

166 cHiNa aFrica resoUrces A sign Of Things TO cOME

How the company’s operation in Namibia can be a springboard to greater success.

172 caleDoNia MiNiNG corporatioN ThE gOldEn TOuch

The government of Zimbabwe is aware of the role its mining industry can play in the growth of the nation.

172

182 talViVaara MiNiNG coMpaNY TOp Of ThE hEAp

How bioheapleaching technology is getting the most from low grade nickel deposits in Finland.

190 Dorce HolDiNG

Building A BETTEr wOrld A global business in every sense of the word, DORCE plans to build upon all that it has achieved to date.

198 MiNera FloriDa: YaMaNa cHile

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gOing fOr gOld

A vitally important asset in the portfolio of Yamana Gold, the Minera Florida mine continues to grow and evolve, 26 years since operations commenced.

contents

206

206 oKD

sOlid As A rOck Operations at one of Europe’s largest coal producers are underpinned by strong customer relationships, top-class training, and solid revenues and reserves.

suppliEr dirEcTOrY 216 Fero GroUp

cOnsOlidATing purchAsEs

218

Fero and Deltaflex have joined forces to become the largest exporter of ground support in Western Australia, and are now expanding into Africa.

218 HeiN, leHMaNN caNaDa flip-flOw, wAY TO gO

Providing customized solutions, complete design and assembly, and technical support for Liwell® Flip-Flow Screening Machines.

220

special report:

ambatovy

ThE lArgEsT inVEsTMEnT prOjEcT in ThE hisTOrY Of MAdAgAscAr

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business bookshelf

frOM ThE sTOrM, TO BArEfOOT On ThE BEAch INTO THE STORM: Lessons in Teamwork from the Treacherous Sydney to Hobart Ocean Race Dennis Perkins Teamwork is always a popular subject in business literature, but few books can have a context like this one—ocean yacht racing.

The Sydney to Hobart Race has been an annual event in Australia since 1945.

Known as the “Everest of ocean racing,” in 1998 “the Hobart” was hit by hurricaneforce winds and 80-foot waves. Five yachts sank, and six men perished.

The race continued, however, and was eventually won by the tenacious crew of the 35-foot AFR Midnight Rambler, who chose to head directly into the eye of the storm. Based on his research into the role of teamwork in ocean racing, interviews with the crew of the Midnight Rambler and his personal experience of completing the Hobart, Perkins provides a foundation for the success of any team and explores strategies at the core of effective teamwork.

Most of us never experience the need for teamwork at the edge of human endurance, but if we had to, we could learn something here.

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THE BAREFOOT SPIRIT: How Hardship, Hustle, and Heart Built a Bestselling Wine

A BEACH LESS TRAVELED: From Corporate Chaos to FlipFlop Perfumer

Michael Houlihan and Bonnie Harvey I like a book with a context, and what better context than an award winning wine? Houlihan and Harvey started the Barefoot Wine brand in their laundry room in 1986, made it a nationwide bestseller, and sold the brand to E&J Gallo in 2005. “One of the reasons we wrote our book is to show American businesses that ‘worthy cause marketing’ really works and can actually be more effective than advertising,” says Houlihan.

The Barefoot Spirit is due for publication in January 2013.

John Berglund After successful careers as an attorney, lobbyist, trade-association executive and bowling industry magnate, Berglund tired of the corporate rat race. He found his own paradise in the French-Caribbean island of St. Martin, and then set about deciding what to do for a living once he got there. A new career path as a perfumer has created an idyllic new life for Berglund and his wife, Cyndi.

THE HIDDEN WEALTH OF CUSTOMERS: Realizing the Untapped Value of Your Most Important Asset Bill Lee Bill Lee is a world-renowned authority on customer advocacy and engagement. “A number of studies are showing that people no longer pay much attention to traditional marketing,” he says. “Instead, buyers are checking out product and service information in their own way, often through the Internet, their social network, or just plain word-of-mouth or customer reviews. It seems clear that marketing as we currently practice the discipline is on its way out.”

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turbulent times by: rosKill iNforMatioN services

W

ith the disruption of supplies f r o m India, concerns over slowing economic growth in China, and the effects of large stockpiles forcing the price of iron ore through a series of supposed “price f loors”, the iron ore industry has faced a turbulent time during 2011 and 2012. While the price of iron ore appears set to make a partial recovery, Roskill’s new report offers a deeper level of insight into the dynamics driving

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the market, and offers a market outlook to 2020.

From 2006 to 2011, the promise of a high return on investment led to a decrease in the concentration of corporate control of seaborne trade in iron ore. During this period, the share of seaborne trade controlled

by Rio Tinto, BHP Billiton and Vale (the “Big Three”) fell to 57.3 percent of the world total. This trend is expected to reverse to 2020, as the limited availability of capital will make securing project financing increasingly difficult for emerging producers. Much

of the increase in capacity is expected to come from capacity expansions in Australia and Brazil and from projects backed by leading steel producers seeking to secure future supply.

Downward revisions in the long-term outlook for iron ore demand and prices are likely to lead to the delay, suspension or cancellation of a large number of projects.

Nonetheless, Roskill estimates that 425 million tonnes per year (mtpy) of nameplate capacity will be added from the middle of 2012 to the end of 2014 and that capacity additions

comment: iron ore industry will continue to exceed 100mtpy through to 2020.

These additions are likely to exceed demand growth and mostly represent low to medium-cost operations.

Consequently, producers at the higher end of the cost curve—particularly those in China—will gradually find themselves unable to compete in the open market.

In 2012, a destocking phase among steel producers depressed demand for iron ore and the World Steel Association expects apparent consumption of finished steel products to grow by only 2.1 percent in 2012, down from 6.2 percent in 2011. A partial recovery appears likely, as the construction sector in China and increased infrastructure spending will support growth in demand.

During the period to 2020, however, rising demand from other emerging nations is unlikely to fully offset the slowing pace of growth in the intensity of steel use in China, as this country approaches a peak in per capita steel consumption.

Roskill expects growth in apparent crude steel use to

2.9% Expected growth in crude steel use from 2012 to 2020

average 2.9 percent per year from 2012 to 2020. Owing to the ongoing shift of steel production to countries with a higher use of iron ore per unit of steel, Roskill forecasts that demand for iron ore, at 3.1 percent per year, will marginally outpace steel demand, despite a relative increase in the use of scrap metal.

Uncertainty over the Eurozone affects the iron ore industry through its effect on demand, as well as through the reduced availability and higher cost of capital. Other risk factors include growing resource

nationalism, particularly in Africa, highly unpredictable energy costs, rising labour costs, and the fate of the Indian mining industry following the mining bans in Goa and Karnataka states.

As new capacity comes on-stream, the industry’s price floor will gradually drop and Roskill expects that the US$100/t price level will be repeatedly tested and eventually broken towards 2015. In its baseline scenario, and adjusting for inflation, Roskill expects that prices may trend towards US$85 to US$95/t during 2016 to 2020.

Roskill’s report provides a detailed view of the iron ore industry, with subsections on resources, world production, leading mining and processing companies, world consu mpt ion, demand by end-use sector, international trade and prices.

roskill is regarded as one of the leading global sources of market research on industrial minerals, minor metals and steel alloys, with analysts based in the UK, canada and china, along with an expert network of industry consultants and contacts around the world. www.roskill.com/iron-ore

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TwO DEcADES Of chANGE (pART TwO)

the emergence of NATIONAL mARkETS After twenty years of market creation in China, profound changes have taken place that affect how international companies need to operate there. Part two of our three part series examines the growth of national markets written by: david G. HartMaN

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lead story

e

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I

n the first part of this article, we observed that three profound changes have taken place in China since Deng Xiaoping announced the replacement of a planned, centrallydictated economy by a market economy just twenty years ago. A quite different China has emerged, one in which business-tobusiness markets have been created, markets have begun to transition from local to national, and sales and distribution have become important business functions. Below, we will focus on the implications of the second of these major changes.

Geographic isolation of markets has also seen tremendous change. Most consumer markets have moved with reasonable speed toward the brands in each major city being familiar to visitors. In personal and home care markets, P&G has become a China market leader by understanding how to advertise and create recognition across the nation, joining some wellknown Chinese brands like White Cat, Liby and Jakwa.

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Even as recently as last year, however, we cited the inherently local nature of China’s markets. In defining opportunities for businessto-business suppliers, our work in China remains heavily oriented around geography, even today.

But, while markets are still different, the knowledge gap is narrowing quickly across regions, pointing to continuing change. Whether we will always find a large number of local Chinese competitors with a very restricted geographic reach, or see a transition to truly national market participants is a critical question for western business looking at China, either as suppliers or as competitors. And, for Chinese companies, the key question they must ask is do they in fact face the choice of either growing towards national stature or being overcome by competitors that do so?

A decade ago, we were working for a company ma king advanced construction materials looking for China market opportunities. In our first customer interview, we

World-cla

ass competitors are emerging in china

lead story were told that the product on which we were focusing was illegal in China and would therefore not be found anywhere. With visions of the shortest strategy consulting project in history, but also knowing how complex and confusing China can be, we proceeded to a different part of the country where we found competitors’ products for sale everywhere. We were told that the local market in that region was large and growing rapidly.

That was one of our most important lessons about the written and unwritten rules in China.

Today there are fewer places in China where a superior technology is unknown or unaccepted, due to the much better access to information.

Those selling solutions have spread their messages across the country. The emergence of national suppliers is in no way restricted to global firms.

World-class competitors like Sany, Zoomlion, and Liugong in heavy construction equipment, for example, are emerging

in China with broad reach across the country and beyond. We have seen Chinese companies achieve national reach in industries ranging from medical equipment to cooling towers to renewable energy.

In agriculture, with perhaps the most difficult geography of any market, we earlier found that different types of equipment were being used in different provinces, despite much the same climate and topography. The short explanation was that the leaders of agricultural extension stations, which are a vital information source for farmers as well as a link to government funds and policies, simply had different levels of knowledge of and opinions about products in the market. We have seen the knowledge gap close over the past ten years because of training and outreach, by both government and suppliers of equipment. Once again, those suppliers include western and Chinese firms.

Both market forces and the government have helped local markets become more

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national. But, even in the face of the changes taking place, thinking about “the China market� is usually a bad assumption for a company to make. Knowing exactly how far markets have gone in becoming national is an important step to understanding opportunity in China.

Markets involving smaller equipment in agriculture and construction are still more local than national,

audi is a popular brand in Beijing

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with different practices and products and suppliers of those products dominating on a local basis. Many suppliers of such types of equipment are completely unknown outside their home region.

On one recent project, we met a business-to-business supplier of specialized manufacturing equipment.

This company is of significant size and wellrespected by its customers,

but we had never heard its name in many interviews in other parts of China. We soon learned why. Their factory has a set of loyal customers nearby who come to them when they need equipment and actually pick it up themselves from the factory. So, in essence this company has no marketing, sales, or logistics capability, no brand name, and no means or ambition to sell to anyone not in close

lead story

“even the best-known brands still have a strong geographic focus. volkswagen and gM doMinate in shanghai, audi and hyundai in beijing� proximity to their factory door. While extreme, this company is not unusual in being a respected businessto-business supplier in a very narrow geography within China.

Understa nding the landscape of potential customers or potential acquisition targets is quite an undertaking, since industries which would have two or three major participants in North America could have many hundreds of firms in China, each with its own geographic footprint.

Even the relatively advanced auto industry, selling to consumers informed by advertising and many enthusiast magazines, recently had over 100 manufacturers, which the government is attempting to combine into a few large companies able to compete on the global stage. And even the best-known brands, with a truly national sales network, still have a strong geographic focus to their sales. Volkswagen and GM dominate in Shanghai, Audi and Hyundai in Beijing,

etc. But they and their reputations now have a much wider reach.

The fact that many brands are present across regions and their suppliers are trying to penetrate a wider market speaks to a gradual maturation.

Consumer market firms will likely lead the way in terms of China-wide reach.

Business-to-business suppliers, without national advertising channels to reach customers, are even more likely than consumer goods producers to divide up the country according to home territories. This will inevitably evolve in many cases, as winners emerge from among the Chinese firms that have growth aspirations or as roll-up strategies create advantages of scale.

In short, the structure of most industries is still fragmented across

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“when local governMents have influence they tend to favor local products” geographies but the knowledge of competitive products is far greater than twenty years ago. Why, then, have we not seen some markets move faster toward the emergence of national brands that displace most of the local products? One factor is China’s geography, w ith an immat ure transportation system, a variety of languages, dialects, and ethnicities, which is challenging in itself, probably a more extreme version of the challenge that faced European suppliers that sought to reach additional country markets.

And, once again, we have to emphasize the heavy influence of the government in markets. When local governments have influence, as business-to-business customers or just as heavyhanded influencers, they tend to favor local products.

Even the best manufacturers are often challenged to

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achieve success outside of their home areas. “We have no relationships anywhere else” is the most common reason that companies have given us for their limited sales reach. When we look ahead at whether China is headed toward being a national market, the role of government is the major reason to believe that China will stop considerably short in any near-term time frame.

The champions among the Chinese Second Mouse companies that we mentioned earlier – those high flyers that look likely to take on global competition in mid-markets around the world – are succeeding in those market segments where success accrues to the firm that is faster, more adaptable, more focused on meeting mid-tier customer needs, and highly price competitive.

Finding examples of companies like that a decade ago was akin to finding a needle in

a Chinese-sized haystack.

That multiple examples are obvious today is a clear sign of evolution.

The trend will continue, but the transition from local markets to national markets will continue for many years to come.

The immature regional market structure that exists today means that entering China through acquisition involves great challenges and tremendous opportunity for those above to overcome the challenges.

We often find that the potentia l acquisition candidates know far less about “the China market” in which they participate than we do. Their total knowledge is often limited to their own province, sometimes only to a radius of a few miles. The opportunity is to extend their business into virgin territory, a task which even ambitious Chinese firms see as formidable.

lead story

entering china through acquisition involves great challenges

Combining together a set of local companies that can have wider reach, more relationships, and greater scale offers opportunity for an outsider that sees the big picture, as long as he is aware of what factors drive market decisions in each geographic segment.

Succeeding as a supplier in such a marketplace is also not easy. The markets are difficult to characterize and selling into fragmentation is expensive. Sometimes there will be strong local competitors and sometimes the playing field is wide open. Where markets have

David G. Hartman is Blue canyon partners’ china practice Director. He has previously served on the faculty of Harvard University and as executive director of the National Bureau of economic research. He has been

become national, sales and distribution systems have grown to handle the geographic reach that is required. We turn to that dynamic, the third major change that has taken place since Deng’s speech of two decades ago, in the next section of this article.

an active participant in china’s markets for over twenty years, speaks Mandarin, and resides in Beijing. His clients include a roster of Fortune 500 firms and chinese companies. www.bluecanyonpartners.com

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shifting the ‘BU

Are the leaders who manag early stages of the econom people to lead us into the

written by: dav

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leadership

UNkER’ mindset

ged businesses through the mic downturn still the right e next stage of recovery?

vid duMeresque

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E

arlier this year, I was talking with a group of CEOs from a variety of different sectors.

There was a definite sense that this was a New Year, that the worst was behind us and there would be new opportunities to be seized.

The focus of the conversation was around defining key drivers most likely to shift businesses to a sounder, more sustainable footing and a great deal of emphasis was placed on new processes, innovation and generally “doing things differently”. The mood was cautiously optimistic and the expectation was that as 2012 unfolded the world would become an easier place in which to do business.

Now, sadly, when I talk to the same CEOs, the conversation has reverted to the “bunker mentality”.

The fine promises of forging

ahead and creating a new future have fallen by the wayside due, in large part, to a lack of risk-taking leaders.

One chairman of a quoted company told me that he had received emails that morning from two of his shareholders requesting a meeting and that he knew what the conversation was going to be. They would want him to undertake some form of corporate activity and if he was going to be buying, they would only support him if he was buying at a very cheap price and if he was selling, they would want a full price for the sale. What was frustrating for him was that they could not see the contradiction in their requirement. Somehow the courage to take risks seems to have failed us, subsumed under a morass of negative media coverage and a lack of political dynamism. People have reverted to the age-old

“Many leaders do not want to make drastic changes because they are afraid of being wrong” 24 | BE Monthly

tried and tested rather than looking to the new.

W hen Hu r r ic a ne Sandy hit the US, it was a stark reminder to me that innovations spring from harsh environments, when we are forced into unfamiliar situations, when the pressure is on to make unpopular decisions and when we have no choice but to stick our necks out and take a risk. This is precisely when we are at our most creative. Many countries have a history of innovation, but we now seem to be afraid to take those innovative big decisions for fear of being found wanting and getting it wrong. Better to do nothing than to do something and find it doesn’t work, the thinking seems to go, despite the old adage, he who never makes mistakes, never makes anything.

For too long now we have been talking about the “new normal”. It is no longer new—it is now the reality.

However, just because it is a reality does not mean to say that there are no new and different ways in which to approach business.

Too many people are

Leadership

frustrated by economies which are still slow to recover and where a variety of roadblocks appear to be put in their way when they try to drive their business forward. However, this leads to excuses which allow business leaders to hide and blame others for their predicament. Many leaders simply do not want to make drastic changes because they are afraid of being wrong.

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Innovation and risktaking come either when people’s backs are to the wall or when they are prepared to make a mistake. Sadly, however, we have fallen into a new comfort zone, a place where managers and leaders tend to rely on the fact that what has proved effective in the past will still be fine tomorrow, effectively squeezing out any potential for diversity of thinking.

However, if at the same

time people accept that we are living in a new reality, it is clear that we need new and innovative thinking; we need to seize the myriad of opportunities which exist at a time when others remain in their bunkers.

The question this raises is whether those leaders who managed businesses through the early stages of the economic downturn are the right people to lead us into the next stage

leadership

“innovation and risk-taking coMe either when people’s backs are to the wall or when they are prepared to Make a Mistake” of recovery. Do they have the vision, drive and determination to take the risks that will be needed to be taken in order to produce sustainable economic growth? Are they just

emotionally and physically too drained to be able to take the brave decisions which will need to be taken in order to achieve a change in performance?

The new CEO who has no laurels upon which to rest is much more likely to take riskier and more innovative decisions because he knows he will be judged on the future not on the past.

New talent will need to be recruited at all levels within an organisation who are prepared to challenge the status quo, established methods of behaviour and the “not invented here syndrome”.

Within many, if not most, organisations, there is a cadre

of executives bursting with new ideas and enthusiasm to make a difference but who are being stifled by senior executives who are afraid to make decisions. If they see a change at the top then this enthusiasm will be liberated and innovation and new thinking will be brought into a business environment which is crying out for it. The global opportunities are too many for us to remain hamstrung by a fear of failure.

This is an opportunity for innovation and bold thinking to take advantage of them and to lay the foundations for a period of sustained and sustainable growth.

David Dumeresque is a partner at tyzack partners and has over 25 years’ experience as an advisor to organisations from large multinationals to small owner-managed businesses. www.tyzackpartners.com

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CEO of Kudumane Manganese Resources

Sechaba Let

taba

executive insi ht Nobody’s perfect. What quality or ability do you wish you had?

Patience, I am impatient. I also wish I was more in touch with my emotional side which would help me express feelings such as sympathy, etc.

What is the best business book you have ever read, and why?

Effective Leadership through Effective Relationships (John Maxwell). This book resonates with my own approach when it comes to leadership. I have a strong belief that there must be chemistry between people who work together. You have to like each other in order to be effective in what brings you together.

Someone you would most like to have met, living or dead, and why?

Nelson Mandela. He has charisma and possesses the rare qualities such as intelligence, and he expresses and articulates his thinking so well that he reaches his audience. He develops courtesy in all situations, disarming even the guards who had been placed to trouble him.

As my motto goes, Mandela believes in people too. He is quoted as he reflected on his life later saying, “all men have a core of decency and if their heart is touched, they are capable of changing.” This is what I believe in. He has mastered patience and compromise.

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“Having walked every step of the way in my mining career starting as a miner to the CEO position” What do you consider to be your major achievement (in life or business)?

Believing in people and giving them second chances. As a result, I witnessed people evolve to levels they themselves never thought were possible.

Having walked every step of the way in my mining career starting as a miner to the CEO position. “Been there, done that, got a T-shirt for it,” as the cliché goes.

Having successfully managed to lead in a diverse environment that did not support my background.

Creating the best work teams in my career and being instrumental in bringing about change in South Africa’s mining industry.

Who or what do you think is overrated?

The attitude and the mind-set of the labour unions. Labour unions should never lose sight of the fact that they are the major contributors in either making or breaking the mining industry; hence their approach should be aligned as such.

The success and failure of the industry will affect them just as much as it will the employers.

People miss the fact that human rights go hand in hand with both accountability and responsibility.

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What mistakes have you made (professional or otherwise), and what did you learn from them?

I have often only believed in the good in people and buried my head in the sand like an ostrich. I have learnt that I must influence decisions that involve my life and career and not leave it in the hands and mercy of others.

Which one piece of wisdom would you pass on to your successor?

Understand the environment and the people you have to work with. A happy workforce equals a good safety record and

executive insi ht high productivity.

Keep your emotions and temper under control.

Who has been your inspiration professionally?

Philbert Rweyemamu. He was my manager as a young mining engineer in my career.

He believed in people. He was charismatic and yet that did not translate into poor job performance and compromised outputs. He could be both the boss and the friend.

How would you like to be remembered after your retirement?

As someone who sees and acknowledges all human beings. Someone who encouraged uniqueness and individuality in people.

Someone who took a chance on people.

Supportive and consistent.

Do you have a quote or motto you live (or work) by?

Let those I lead spend time on what they know best, (which I don’t know), so that I can spend time doing what I do best. ‘I let them run with it’. Never question a man’s integrity unless they have given you a reason to do so.

sechaba letada, ceo of Kudumane Manganese resources. www.kmr.co.za

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The

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Síminn

connected

isle

Iceland is no backwater, thanks largely to an innovative and forward looking business and entertainment sector supported

by Síminn, one of the world’s most advanced telecommunications corporations written by: John O’Hanlon research by: David Brogan

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Telecommunications play a vital role in Iceland

síMinn

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celanders are a staunch breed of people, descendants of generations who built the modern state surviving famine, invasion, disease and political turmoil.

No wonder that this small nation of a third of a million people on an island only 300 miles wide and 200 miles from north to south at its largest punches above its weight internationally. “We are travellers by nature,” says Anna Björk Bjarnadóttir. “We have had to be, because of our geographical isolation out here in the Atlantic.”

Anna is CTO of the country’s principal telecommunications operator Síminn, which has been linking islanders with each other and the outside world since it was founded as the Iceland State Telephone Service in 1906. That was the year Iceland ended its isolation and became linked by a telephone cable with the rest of the world via the Faeroes and Scotland.

Today telecommunications play a vital role in Iceland. Despite its limited population, penetration rates for networkrelated products and services are among the highest in the world. More than 95 percent of Iceland’s households have a computer connected to the internet and demand for internet services is very high. “When it comes to broadband take-up I think we are number one in the world,” says Anna, adding that within the next 18 months 80 percent of households will be reached by fibre optic cable, something other countries can only dream of at present and a really ambitious programme across terrain noted for its seismic activity.

Síminn was privatised in 2005, since

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síMinn fjords of Iceland has a 2mb when it has operated in connection today,” she says. competition with other telecoms operators while “We have implemented remaining the incumbent, that using a number of with responsibility for the dif ferent techniques: fixed telecoms network, satellite, DSL and mobile a network of more than solutions are all used.”

700 mobile base stations Staying in touch with each other and the rest of covering the entire country, the world is very dear to and having a public service the hearts of Icelanders, remit. A government she says. “I think I can financed prog ramme anna Björk Bjarnadóttir over the last two years, safely say that telecoms and for example, has seen the provision of a connectivity are seen as a commodity here. minimum 2 megabits per second (mbps) During the recession it has been one of the connection to every household, however last things they would give up or cut back isolated. “Even a farm far away in the west on when things got tight.” That’s reflected

Polystar polystar is a visionary telecommunications company, providing world-class service management solutions for network performance maximisation. polystar’s product portfolio enables telecom operators and service providers to monitor increasingly complex networks containing mixed technologies, digest billions of events and bring sense to this data. polystar has one solution for all mobile and fixed networks that makes it possible to troubleshoot across different technologies. “siminn had a need to replace an old system, for one that could handle both fixed and mobile services in one solution, which polystar did,” says ola Barthelson, regional sales Director at polystar. polystar’s solutions bring clarity through simplicity and take analytical capabilities to the

next level. the solutions encourage proactive behaviour and inspire new ways of network management. potential problems can be dealt with before they affect quality of service. By using the innovative visualisation technologies of Jupiter, combined with the monitoring and data-gathering functionality of osiX, operators gain access to the business intelligence they need to meet market change and remain competitive. “one big advantage with the polystar solution is the increased cooperation between the fixed and mobile departments since they trouble-shoot in the same system,” says Baldur Baldursson, Director Mobile Networks at siminn. www.polystar.com

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Show the world what your company has to offer with our tailored packages

Seen www.bus-ex.com

síMinn in the high take up of ‘on the airties top’ services like Wi-Fi and airties was founded in 2004 by a senior management VOIP solutions for making and technical team from silicon Valley, with the strategic calls overseas. With travel intent to become the market leader for the wirelessly in their blood, Icelanders connected home. airties designs and develops its own have become avid digital software and hardware, wirelessly streaming high definition travellers, too, she says. video to multiple rooms and screens. the comprehensive product portfolio includes broadband internet devices and “Of course no country is internet based television set top boxes. its world awarded completely isolated these technology enables seamless wireless integration at days but we do need to be the touch of a button, as well as 100% internet wireless innovative and think out of coverage in homes. the box a lot of the time just airties has an installed base of over 8 million worldwide. to function out here!”

More information is available at.

This is reflected in the www.airties.com data revolution that is now sweeping Iceland but which depends on bandwidth to power it. The focus at present is to complete the fibre network being installed, however the Post & Telecoms Administration (PTA) in Iceland is about to issue licences for 4G mobile bandwidth and Síminn is preparing its bid to ensure it retains its nationwide coverage.

In fact the jump from 3G to 4G is not as radical as the introduction of 3G a decade ago, which saw the jump from voice-only to mobile data communications. What 4G brings to the party is more mbps and greatly enhanced connection speeds. “You will get more stuff faster than before,” says Anna.

This will be of more than incidental value to Icelanders, making it easier for them to pursue their chosen lifestyle of decamping to summer house colonies for long periods and working from home using laptops and mobile devices. The flexibility offered by tablets and smartphones is only as useful icelanders have become avid digital travellers as the infrastructure that supports them,

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however. Síminn’s existing 3G provides up all over the world to compete as well as to to 21 mbps currently, but 4G can support up buy and sell horses. This is a very different to 100 mbps connectivity, she says. clientele; older and more traditional, Faster mobile broadband will certainly nevertheless the app was downloaded by make life better for visitors to the country, 2000 users and achieved more than 70,000 many of whom come to the annual Iceland hits during the festival. “Here in Iceland Airwaves music festival, held in late October. you have high technology usage among the Airwaves has become one of the world’s older population.” foremost showcases for new Last year Síminn took over an entire day’s issue and alternative music after of the country’s oldest it launched in 1999. Since newspaper Morgunblaðið 2010 Síminn has been one of its principal sponsors, and covered it with QR codes. creating a mobile app that By downloading an app and icelandic households grows year by year. With passing a smartphone over with a computer more than 200 bands and the paper, readers could connected to the internet performers taking part access deeper information there’s a lot of congestion on anything from news stories to the weather, on the ground but the app gives real time information on queuing giving them an experience and access to as well as full information about the technology that would still look futuristic performers and schedules. This year the in many other countries. At the same time app was downloaded more than 8000 times, it educated the business community to the which accounts for more than 2 percent of marketing potential of QR codes; since that the population, and in five days it generated exercise codes have been added to sites of more than 1.4 million page views. interest all over the country so that visitors A similar app was developed for the can find out what they need to know and at Landsmót hestamanna international horse the same time get to appreciate the value of festival which attracts even more people having great 3G coverage in remote parts of than Airwaves—20,000 visitors come from the landscape.

95%+

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SĂ­minn

The company provides free communications services to around 30 charities

“I think we have a good culture of treating our employees, colleagues, partners and vendors well” Síminn aims to be so good that it is a role model for the entire business community; and that’s not just an aspiration but borne out in countless programmes. Anna Björk Bjarnadóttir is passionate about the company’s CSR programmes, and

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chairs FESTA (the Icelandic Centre for Corporate Social Responsibility), a notfor-profit organisation founded in 2011 to help companies implement their CSR strategies, raise awareness about CSR and encourage related research in cooperation

síMinn

even a remote farm has a 2mb connection today

with Icelandic universities. Síminn is in a unique position to lead in this field: “We have specialities and knowledge that other businesses do not have and feel obliged to use that knowledge to support our society.” The company provides free communications services to around 30 charities and not-for-profit businesses that support disadvantaged people.

The CSR programme is not just about doing good for the less-well-off; it reflects fairness and equality within the company

too, she says. “I think we have a good culture of treating our employees, colleagues, partners and vendors well. We have some way to go but we believe strongly that our social programme will be good for the company, employees and customers and the whole society.”

For more information about síminn visit: www.siminn.is

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gaining NATIONAL coverage Chief executive officer Francis Mawindi explains how Telecel Zimbabwe plans to deliver mobile phone coverage to 90 percent of the population by 2013

written by: will dayNes reSearch by: JaMes boyle

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Telecel Zimbabwe

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Telecel Zimbabwe is the country’s second largest mobile telecommunications provider in terms of subscriber numbers

telecel ZiMbabwe

A

cross Africa, the winds of expanding 2G and 3G coverage, enhancing cha nge a re being network capacity in those areas with felt throughout the increased demand, and by introducing new telecommunications sector. products and services to the marketplace.”

These winds are being driven Being an important player within the by the rapid movement consumers have been industry, Telecel Zimbabwe’s contributions making away from basic telephony services towards the development of the country’s to data services. In response to this, operators telecommunications sector have proven to have had to capacitate their data service be significant. “What we have been doing provision capabilities in order to cater to the during the course of this year,” Mawindi changing needs of their customers. continues, “is expanding our coverage to Aided by the high literacy rate of its ensure that the majority of Zimbabweans people, Zimbabwe is one such country have access to our services. At present, our experiencing high levels of demand for coverage stands at close to 80 percent of the data services. In fact, with population and we intend to an estimated 58 percent of increase this to 90 percent Zimbabweans accessing the by the end of 2013.” internet today through their In addition to increasing mobile phones, the country coverage, Telecel Zimbabwe ranks within the top ten has made a concerted effort to price its products and services African nations as it relates to this trend. aggressively to ensure that current subscriber base One of the companies they are affordable to almost leading the way in responding everyone, including those to the changing requirements, and dynamic situated in rural areas. “The vast majority needs and demands of Zimbabweans is of our promotions,” Mawindi says, “have Telecel. With a sizable market share of succeeded in bringing and delivering value to around 29 percent, as recorded at the end our subscribers. We were the first operator to of September 2012, Telecel Zimbabwe reduce the price of our SIM to just $1, when is the country’s second largest mobile others’ prices still averaged close to $20, and telecommunications provider in terms of we continue to offer best-of-breed voice and subscriber numbers, boasting a subscriber data bundle rates, the latter going for as low as $0.04 per megabit.” base of over 2.3 million users.

“As a business on a growth trajectory,” While boasting some of the most explains chief executive officer, Francis competitive prices available in the Mawindi, “we have been growing rapidly marketplace, the company also prides over the last 16 months. This has coincided itself on its strong customer centric focus with our ability to capacitate our network by and its prudent cost management systems.

2.3

MillioN

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“Our customer focus,” Mawindi enthuses, “has seen us taking home various national awards in recent years, including the Customer Service Excellence award from the Zimbabwe Institute of Management in 2011, to this year’s Call Centre Association of Zimbabwe, Best Call Centre Award.

Meanwhile, our embracing of cost management and cost leadership strategies has enabled us to optimise our subscription prices and thus offer great value for money.”

One of the significant and notable developments at the heart of Telecel Zimbabwe’s operations today is an extensive network expansion programme. The central theme of this programme is to enable the company to develop sufficient scale and this will be facilitated through the acquisition of more than 575 physical sites across the country by the end of 2012, with an additional 100 to follow in 2013. It is this phase of expansion that will allow the company to achieve its goal of delivering coverage to 90 percent of the population.

“Another thing we are doing,” Mawindi states, “is enhancing our 3G coverage to the extent where we hope to have around 275 sites located countrywide. To date, the roll-out programme is on track and proceeding well, with all the major cities, towns, rural service centres and highway corridors being covered, and efforts are under way to cover a sizable

number of mining and commercial farming areas, which were previously not serviced.

Nonetheless, we still believe that, even within some of the major urban and metropolitan centres, there is a need to optimise coverage and target those black holes that still exist and in the process improve network availability and quality of service.”

Recently, the company has been re-certified as ISO 9001 compliant and remains the only certified mobile operator active within Zimbabwe. Naturally

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telecel ZiMbabwe

telecel Zimbabwe pursues the vision of total customer delight

this is a very important customers at heart. It is also achievement, and indeed important to point out that a significant milestone for the time is near when no significant differentiation the business, and is one that will exist between mobile is tied to the system of best national coverage operating practices that it network operator offerings; planned by the operates under. the difference will primarily end of 2013 “Our re-certification,” be on how we do business.”

Mawindi says, “is a clear This ISO 9001 status testimony that our company allows Telecel to eliminate is unequivocally and irrevocably committed waste and duplication, while at the same to achieving excellence in products, services time controlling its operating costs. and business processes by actively pursuing This added value is then passed on to its continuous improvement and sharing the subscribers through lower pricing. vision of total customer delight. In addition “We are currently in the process of the attainment of this status has meant putting the finishing touches to enable that, as a corporate body, Telecel has the the technical deployment of a new AYAYA confidence and assurance that it has its Call Centre system,” Mawindi adds. “Once

90%

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complete, this will drastically improve upon our ability to manage customer relations.

This will inevitably result in better customer service delivery, while generating greater customer value.”

Challenges, however, do still remain for the company, the major one being that of capitalisation of the company’s mobile network. For some time the country risk for Zimbabwe has remained high, though

now the political landscape has changed with the new coalition government, in addition to the promising economic fundamentals, which have triggered international organisations and the global investing community to show greater interest in the country.

For Telecel Zimbabwe, the company has been boldly resilient for quite some time, even in difficult times characterised by economic

“The biggest opportunity for us going forward will be in the provisioning of national backbone broadband infrastructure”

Telecel is continuously expanding its network coverage and capacity

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telecel ZiMbabwe

telecel has won awards for customer service

contraction, hyperinflation, liquidity challenges and inadequate investments.

These factors in the past put enormous pressure on the company’s capacity and capability to capitalise on market growth opportunities. However, once economic stability returned, Telecel was quick to rise to the challenge and take advantage of the new opportunities this presented. “We have managed to secure vendor financing for our network expansion programme,” Mawindi says, “with the bulk of the guarantees coming from our principals.”

Despite some of the challenges that it faces in its industry, Telecel’s future is certainly brighter. “We are continuously expanding our network coverage and capacity,” Mawindi concludes. “Our

subscriber growth and revenue performance are both healthy, and we believe that we are in a good space in the market. The biggest opportunity for us going forward will be in the provisioning of national backbone broadband infrastructure, utilising fibre technology to connect and gain access to submarine cables coming into and leaving the country. This will allow us to further reduce mobile broadband connectivity costs and improve penetration rates, thus ensuring an affordable universal service to all Zimbabweans.”

For more information about telecel Zimbabwe visit: www.telecel.co.zw

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Hard data: fast growth

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aquiva wireless

Zimbabwe’s telecommunications industry can only be described as frenetic, as its economy makes up for lost time. Harare-based internet access provider Aquiva Wireless is grasping the nettle of 4G technology to push that growth forward

written by: JoHN o’HaNloN reSearch by: will Kirby

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Aquiva men installing a mast

aquiva wireless

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quiva Wireless is a company communications to the entire population. on the move, appropriately By 2010 Aquiva had secured its licence since its core competency is to to operate from the regulator POTRAZ provide Zimbabwe with the and today is able to offer services over all high speed communications platforms including VoIP, VSAT, WiMax and it needs to compete internationally and fibre optic. “Right now the majority of our grow its domestic infrastructure. That customers are businesses,” says Maphosa, infrastructure is coming along well, with “but over the next five years we believe there 90 percent of the country now having will be a significant consumer market in mobile coverage and with a functioning Zimbabwe for value-added internet services fixed line network linking the country’s like e-commerce and other services that rely main business centres. on high volume data transfer whether for But the take-up of these services is games, banking, social networking or music. lagging. Only three percent of households We are keen to capture that market too.” are connected to the fixed line network, Of its business customers, the majority and twelve percent to the will be found among Zimbabwe’s small and internet via broadband. The growth of business outside medium enterprises (SMEs). of the capital Harare has Global companies tend to have global networking been limited by difficulties solutions, but growing in getting connected to Aquiva wireless founded the internet and advanced businesses are set to be the data transfer services via backbone of Zimbabwe’s fibre optic cable, ADSL or e conom ic re cover y ISDN. Harare is now connected to the following ‘dollarisation’ in 2009. It’s a rest of the world by fibre via the EASSy competitive environment, he admits, with and SEACOM link that serves the whole fourteen licensed IAPs and many players of eastern and Southern Africa, but even entering the market including the major here the technical expertise needed to get telcos such as Econet, TelOne and Telecel. the most out of the existing infrastructure However, Aquiva is not biting off more than has been thin on the ground. it can chew. “Where we come out strongly Enter Aquiva Wireless. The company is in customer service: we offer a highly founded in 2007 by three Zimbabwean personalised service, and it’s an advantage entrepreneurs, CEO Brian Maphosa, that we are not too big to do that.” And COO Artwell Mataranyika and CTO Aquiva has taken great pains to ensure its Blessing Mutenga, is above all an internet licence is comprehensive, allowing it to give access provider (IAP) pledged to bringing an end-to-end service from infrastructure faster online, satellite and fixed line installation of base stations or ‘last mile’

2007

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$80 MillioN investment planned by Aquiva over the next three years

aquiva Wireless men at work

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fibre to retail and the provision of custom built exchanges.

For a new company it has achieved an impressive track record in a short time. It is already offering fibre optic connection to businesses in Harare, Bulawayo, Kwekwe, Gweru and Mutare and installed 4G WiMax and VSAT base stations across the country from BeitBridge on the border with South Africa to the south to Chirundu on the northern border with Zambia and from Mutare in the east to Victoria Falls in the west.

Telecoms technology can be hard to keep up with but Africa, which has never had the luxury of reliable fixed line networks, has enthusiastically adopted the newest alternatives, in many cases leapfrogging through demand the imported technologies.

VoIP (voice over internet protocol) is a case in point, and in April this year Aquiva launched its service following protracted negotiations with the mobile operator, Econet and the fixed line provider TelOne. Using VoIP services enables business to cut their phone bills by as much as a half, claims Maphosa, while ensuring a much clearer and more dependable connection. And VoIP has taken Aquiva into the global market by

aquiva wireless

training and development plays a pivotal role

enabling companies doing business with Zimbabwe and Zimbabweans living abroad to contact their associates or family member using a number provided by Aquiva. Once you have bought a single number, calls within the network in Zimbabwe are free.

This industry is all about change and innovation says Maphosa. “One really has to keep at the forefront of technical development, and that is what we are looking at over the next three years. We

do not intend to be just another African telecoms brand; rather we want to be recognised as one of the leaders in virtual private networks and enterprise solutions for business and high speed high volume connectivity for families and individuals as well as the dominant player in VoIP.” He is already looking forward beyond WiMax, sometimes described as Wi-Fi on steroids and enabled by 4G technology now being rolled out by the mobile networks

“the Majority of our custoMers are businesses, but over the next five years we believe there will be a significant consuMer Market in ZiMbabwe” be monthly | 57

in Zimbabwe with the encouragement of POTRAZ. The next enabling technology will be LTE – long term evolution, a new standard for wireless data communications technology that is only available across 4G radio wavelengths, but offers much greater speed and capacity. Data rather than voice will undoubtedly dominate the way people and businesses conduct their affairs, says Maphosa: “I don’t think we have a choice about going for LTE in this country, which is why Aquiva proposes to make an impact in that space.” The speed of LTE rollout will depend on the realities of this market, the level of broadband penetration and last mile connectivity – as soon as the infrastructure limitations have been overcome Aquiva will be ready to bring LTE services to its customers, he promises.

Meanwhile the 30-plus staff are busy installing metro fibre, a rapidly expanding network in all major business centres. Metro fibre is a term for networking a number of buildings or separate business parks in a city, analogous to the network within a modern office block. With speeds up to 1,000 Mbps it enables faster access to internet and data transfer for clients who, once they have experienced it, can’t imagine how they ever managed on traditional bandwidth.

For more remote businesses where a fibre connection is not available satellite technology is advancing rapidly. Aquiva has signed an agreement to be able to connect its clients to the Broadband Global Area Network (BGAN) using Immarsat to provide global coverage. BGAN offers cheaper satellite connection in the more remote areas and has the advantage of being portable and cheaper than the traditional

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aquiva wireless

Harare is hungry for data solutions

VSAT connection and unlike other satellite internet services which require bulky and heavy satellite dishes to connect, a BGAN terminal is no bigger than a laptop and so can be carried easily.

BGAN, WiMax and LTE are in the future while Aquiva focuses on its priority task of satisfying demand in the high population density areas like Harare and Bulawayo, but the future of communications in Zimbabwe will soon depend heavily on these technologies, he believes. “There are opportunities in every sector. Energy, infrastructure, health, retail, manufacturing are all poised to expand and they all face the same challenges. In this country we have barely scratched the surface with e-commerce, let alone e-tourism, e-banking,

e-health, e-education and e- everything else! If you look at the statistics Zimbabwe is one of the top ten countries in Africa in terms of data penetration, but only a small percentage of the population is using the internet at the moment.�

Aquiva has customers in all these sectors, all keen to expand. Over the next three years it will be investing up to $80 million in establishing a truly nationwide presence, expanding its service and leveraging new technology. By then, Brian Maphosa hints, the company may be ready for an IPO. For more information about aquiva Wireless visit: www.aquiva.co.zw

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lesotho communications authority

cALLING AcROSS

the canyons

CEO Monehela Posholi talks about the regulator’s responsibility and challenges in meeting the population’s expectations for 21st century communications

written by: alaN swaby reSearch by: david broGaN

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Lesotho is sometimes described as the Switzerland of Africa

lesotho coMMunications authority

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esotho is sometimes described as frequency spectrum and vetting of the Switzerland of Africa – and terminal equipment.” in part, for good reason. Both To add to Lesotho’s geographical are small countries, entirely challenges, the country has one of the lowest landlocked and extremely population densities in the world, meaning mountainous. In fact, Lesotho has the that its people are both widespread and distinction of being the only independent thinly spread. As such, to ensure complete state in the world that lies entirely coverage across all forms of communications 1,000 metres above sea-level and over – broadband, telecoms, broadcast media and 80 percent of its 35,000 km2 rises to postal services – amounts to the greatest 1,800 metres or more. There is even a single challenge facing LCA. skiing industry in Lesotho.

A key strategy in overcoming this But from there, though, the comparison challenge is to incentivise the various begins to differ. Against a GDP of operators to extend their coverage. “We $81,000 per capita in have set up what is known Switzerland, Lesotho must as the Universal Service get by on a GDP of under Fund,” says Posholi. “All regulated operators are $1,500 per head. obliged to contribute Statistics such as these one percent of their net are important because operating income into the they have a direct bearing per capita gdp in lesotho on the work of the Lesotho fund while LCA would add Communications Authority 25 percent of any end-ofyear surplus. With these (LCA), which started out in 2000 as the Lesotho Telecommunication funds we aim to fill in the gaps needed to Authority but lost the Tele in order to provide countrywide coverage.” reflect its extended mandate to cover Projects, particularly from 2009 to the broadcasting and postal communications present time, include the development of 12 as well as telecoms. mobile hub sites to ensure coverage across According to CEO Monehela Posholi, the ten districts that make up Lesotho “the LCA is here to regulate the (at least one site per district), with five communications industry in Lesotho with more currently under development. All a view to promoting fair competition. these developments are aimed at reaching At the same time we want consumers the LCA’s key mandate of ensuring total to feel empowered and protected. Ours coverage. It is envisaged that this would be is a wide remit, from the granting and achieved by 2014, as part of the Fund’s five administration of licences, approval year plan that started in 2009. of tariffs to the allocation of the radio A second major project has been

$1,500

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2014 Target for countrywide coverage

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undertaken to lessen Lesotho’s dependence on South Africa. “We are completely surrounded by our neighbour,” says Posholi, “and until recently all internet traffic had to be channelled through facilities in South Africa. Since the creation of an Internet Exchange Point (LIXP), we can now ensure that all internal internet traffic is handled internally within Lesotho.”

Such a desire to be independent in some aspects of communications is understandable and the LIXP project has helped address the issue of connectivity with the international bandwidth challenges. To help in this respect, LCA has a partnership with Afrinique in the establishment of LIXP. Lesotho is also part of the Eastern Africa Submarine Cable System (EASSy).

The membership of Lesotho in the EASSy project is aimed at affording Lesotho an opportunity of access to internet bandwidth at competitive rates. Nevertheless, it’s likely that Lesotho will always be dependent, to some degree, on South Africa and strives to maintain good working relations with operators to overcome some of the international traffic challenges it faces.

Lesotho – through LCA – is both a founding and active member of CRASA – a collection of ten organisations forming the

lesotho coMMunications authority

rural telecoms

Communication Regulators’ Association of Southern Africa. The structure of CRASA was reshaped last year to include the same wide spectrum of communication activivities for which LCA is responsible, while in April this year, the Lesotho government strengthened LCA’s regulatory position by clarifying its powers and giving it real authority as a regulator, as well as providing it with an extended mandate through the new Communications Act 2012.

Lesotho is mirroring what is happening in so many African countries by leap-frogging over an inadequate fixed telephone service

and relying almost entirely on mobile telecommunications. In a population of just over 2 million, fixed service subscribers have flat-lined for the past decade. In 2000, just one percent of the population had access to a phone. Since mobile telephones were introduced in 2001, tele-density has shot up to around 80 percent, of which only 2 percent is fixed.

Lesotho is largely using new and old technologies alongside each other. However, the number of telephones that dial into the ISP numbers are fast decreasing while ADSL connections are increasing and thus

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reflecting the move among internet cafés and users in general to technologies with higher data-carrying capacity.

The mobile market is moving at a rapid rate with subscribers jumping by 30 percent from last year to 1,311,725 while an additional 49 base transceiver stations were built. In the same period, the number of tele-bureaux went down by 13 percent from 15,645 to a total of 13,690.

Lesotho currently has two mobile telecoms providers – Econet Telecom Lesotho and Vodacom Lesotho. Both provide a similar level of 2G and 3G voice coverage.

The use of smartphones and other mobile devices has made the rollout of 7.2Mbs 3G coverage by both operators a mandatory development route. The Universal Service Fund mentioned above has improved coverage by completing 12 network coverage

“Since the creation of an Internet Exchange Point (LIXP), we can now ensure that all internal internet traffic is handled internally within Lesotho”

Tsatsane

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lesotho coMMunications authority

st. peter’s primary school

infrastructure projects that added a further 18 base transmission stations.

Broadcast media retains an important role in disseminating information within this mountainous country. The next year will be busy for Lesotho Television. As a member of the International Telecommunication Union (ITU), Lesotho had undertaken to switch over from analogue television broadcasting to digital terrestrial television broadcasting by the middle of 2015.

However, member states of the Southern Africa Development Community (SADC) have subsequently agreed to complete the digital switchover by the end of December 2013. Noting the progress to-date, it remains doubtful whether the 2013 deadline imposed

by SADC would be achieved.

A small, widely dispersed population certainly doesn’t contribute the best conditions for a cutting edge communications systems but the LCA is not without ambition. International consultants have been engaged to carry out a feasibility study on the viability of Lesotho having a call centre industry. The objective of the study is to identify the factors that need to be considered for attracting investment in this lucrative area – one of which will undoubtedly be robust and premised on fast communication connections.

For more information about lesotho communications authority visit: www.lca.org.ls

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soft

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asia pacific ict alliance (apicta)

uniting asia’s TwARE INDUSTRy Each year APICTA recognises the best in innovation from across the Asia Pacific ICT community. This year’s event, hosted for the first time by Brunei, promises to break new ground written by: JoHN o’HaNloN reSearch by: david broGaN

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The coveted APICTA award

asia pacific ict alliance (apicta)

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rganisations across the Asia to ICT innovators and entrepreneurs in the Pacific region are expanding region, the program is designed to stimulate fast. As they increasingly ICT innovation and creativity, promote rely on technology to drive economic and trade relations, facilitate their businesses, they are technology transfer, and offer business also looking for solutions to help them matching opportunities via exposure to secure their IT environments, mitigate venture capitalists and investors. business risks, achieve compliance, enhance Sutee has been involved in APICTA user experience, and improve customer since its inception in 2001. It was born, he satisfaction. But the software industry in explains, out of the vision of Malaysia’s South East Asia is fragmented, nations then Prime Minister Dr Mahathir in this part of the world are linguistically Mohamed. “He believed we should be and culturally very diverse, and there is seeking out the most promising companies no standard political model, as western- in our very different economies, creating creative and style democracies, socialist organisational networks republics, Islamic states and absolute monarchies and bringing them to the are all to be found. attention of international The result has been markets.” National, or that while inventiveness, in some cases provincial Member economies technical ability and software alliances were of ApicTA innovation are second contacted starting with to none, the software Malaysia’s Multimedia development sector has Development Corporation remained much smaller in most of the (MDeC) and the Australia Information economies round the Pacific Rim than in Industry Association (AIIA) but quickly Europe or the Americas. “Where Silicon spreading throughout the region so Valley corporations might have hundreds that today the 16 member economies of or even thousands of people, software APICTA are Australia, Brunei, China, developers in our member states typically Hong Kong, India, Indonesia, Korea, employ between 30 and 70 people,” says Macau, Malaysia, Myanmar, Pakistan, Sutee Satanasathaporn, chairman of the Asia Philippines, Singapore, Sri Lanka, Pacific ICT Alliance (APICTA). The APICTA Taiwan, Thailand and Vietnam.

Malaysia hosted the awards for the first is an international awards programme which aims to increase ICT awareness in two years. Since then it has moved from the community and assist in bridging the country to country till this year, from digital divide. By providing networking December 2 to 5, it will be held in the and product benchmarking opportunities smallest economy of all – geographically at

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least. Of course Brunei Darussalam is not a poor country but with a population of less than half a million it can’t be expected to have a comprehensive software industry, but what it does have is good. In some ways Brunei typifies the problems of the region.

“Brunei’s biggest industry is O&G,” says Sutee. “They have very good universities and a few good software companies and they are looking to expand the market for their member companies. Like all of the countries they are looking for partners to augment the gaps in their knowledge and to expand the market for indigenous companies. The Brunei government is very keen to grow its ICT sector and the royal

Awards ceremony

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family is a great supporter of the software industry as well.”

Nominees for APICTA awards are drawn from the winners of similar awards programmes in each member economy.

They present their solutions before a panel of judges from all the member states. So what are the incentives for taking part?

There is no cash prize, but for the winners the value of international recognition is beyond price, he says. “I think the main advantage is probably being able to connect with other software developers. Many entrepreneurial individuals develop smart solutions but sooner or later they need expertise from outside to scale the business:

asia pacific ict alliance (apicta)

“the brunei governMent is very keen to grow its ict sector and the royal faMily is a great supporter of the software industry as well” we are able to connect them and help them achieve together the critical mass they need to compete internationally.”

The members cover government, private sector and academic interests, it should be remembered, and the APICTA awards are recognised in all 16 economies so award winners in each of 17 categories

can expect high profile coverage. And it’s not just the winners who benefit: all nominees are already national award winners and now that APICTA is entering its 11th year they join a unique database of past participants. “If a Vietnamese company on our books is looking for a partner in Thailand,” he says, “it can search for somebody with the right skills and interests in the right industry sector: our database is a great tool for expanding the software market in the region.”

Green and sustainable IT is sure to come under the spotlight in Brunei. For the first time it has its own category, and with fast growing awareness of environmentally friendly practices in all industries, including construction and the oil & gas sector Sutee is convinced the new award will grab the headlines. “Everyone is talking about green and environmental IT and saving energy. I have to say I am very keen to see who will be nominated – and who will win!”

Software development is a young industry – everyone knows Facebook was thought up by undergraduates, so the categories judging secondary and undergraduate projects are particularly important and have proved fruitful in the past. “Every year we get some very good ideas put forward by university

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students. They may not have qualified yet but these are much more than just student projects – they are often highly commercial.

Entrepreneurship starts early! It is really difficult to judge this category, because the criteria are different; but it is fascinating to watch them progress and grow in subsequent years to meet the criteria for the Start-Ups category or industry-specific awards.”

There are many examples, says Sutee, but a good illustration of award progression is Larngear Technology, the Thai pioneer of augmented reality (AR) technology that literally makes 3D images leap from the pages of a book. Larngear has developed interactive classroom materials for studying the physical environment, the earth, solar system and molecular structure.

The company’s educational AR products are designed to help instructors explain difficult concepts and make them more understandable, more interesting, and more attractive for young learners. “We strongly believe that AR technology can help leverage education in any part of the world.”

Larngear has been a serial winner in APICTA, starting with a Merit for its founders when students at Chulalongkorn University, in the Tertiary Student Project category in 2006 for their ‘real-time camera

positioning and orientation estimation engine’ and going on to win as a company for its R&D in 2007 and 2010. Larngear has won many other awards but APICTA is unique in Asia, the only trans-national organisation that recognises developers.

This year APICTA will start looking to its future. Back in 2003 The Association of South East Asian Nations (ASEAN) announced the formation of an ASEAN Economic Community

“Many entrepreneurial individuals develop smart solutions but sooner or later they need expertise from outside to scale the business” 74 | BE Monthly

asia pacific ict alliance (apicta)

students gather for a workshop

(AEC) in 2015. ASEAN was How do you define originally conceived in 1967 Asia/Pacific anyway? asks as a geopolitical union, and Sutee. Many members it is hoped that when the are today looking towards the promising markets of AEC is launched it will help AsEAn Economic the Middle East including ASEAN boost its economic community will Turkey, Iran and the competitiveness and be formed southern parts of the attractiveness to investors inside and outside the former Soviet Union. Wider region. Discussions are under way to find networks mean wider opportunities, he ways of leveraging APICTA’s knowledge and says, and the next couple of years will see extending its influence and thus its value to APICTA actively pursuing like minded the national organisations it represents, using states to extend its community. the opportunities presented by the AEC as it focuses on its markets, introducing measures For more information about to address non-tariff barriers, liberalization asia pacific ict alliance (apicta) visit: and promoting the attractions of ASEAN as www.apicta2012.com an integrated investment area.

2015

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a fresh AppROAch

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afrifresh Group Afrifresh Group has developed an integrated agricultural business model that is improving farming and export efficiency in Africa written by: Gay suttoN reSearch by: Jeff abbott

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citrus planting in Western cape

afrifresh group

T

he South African fresh produce industry has changed beyond recognition since the introduction of the Marketing of Agricultural Products Act in 1997, with a proliferation of small entrepreneurial companies taking advantage of the deregulation and exporting locally grown fresh produce worldwide. In the citrus fruit and grape industries in particular, many of these companies have either closed down or remained relatively small and locked in to their original size and form.

Afrifresh is one company that has broken that restrictive mould. The company has grown exponentially since 1999 when two of these smaller entrepreneurial entities joined forces to develop a more powerful business.

The original Afrifresh, owned and managed

by Chris Conradie, who is currently the Group CEO, was launched in 1992 as a fruit importer and moved into exports in 1997 on deregulation. Sunpride, meanwhile, had been founded in 1997 by Roy Fine and the well known Fine Family in partnership with the international Gerber Group. The merger enabled the two entrepreneurs to bring together their extensive knowledge and experience of the Johannesburg and Cape Town produce markets, with over 100 years of family history in agriculture in South Africa, and develop both brands under the Afrifresh name. Together they have taken what was a citrus and grape export agency enterprise and turned it into a truly international integrated agricultural business with offices around the world.

At the heart of the group is a portfolio

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solutions to ions and provide these lut so gy olo hn tec n tio tes informa company with Paltrack (Pty) Ltd crea y South African owned oll wh a is It . ts en em re license ag the fruit industry under e Imperial Group. majority shareholder, th the South and related services to s em st sy n tio ma or inf supplier of tablished to Paltrack is the leading y services have been es lar cil an of er mb nu A ustry.

African fruit export ind mation provision e mainly related to infor ar s ice rv se e es Th s. ion e solut compliment the softwar change. s to ease information ex and setting of standard

Exporting

Business Rules & Standards

Paltrack (Pty) Ltd. | Old Mutual Building, Cnr Oxford & Queen Streets, Durbanville, 7550 PO Box 3755, | Durbanville, 7551 | Tel: +27 21 970 2777 | Fax: +27 21 970 2888 Email: info@paltrack.co.za | www.paltrack.co.za

afrifresh group of 22 Afrifresh primarily citrus and grape farms that are spread across South Africa, a configuration deliberately designed to reduce climate related risk and extend the supply season. The farms, as well as a number of third party farms, are supported by a comprehensive centralised management framework that provides high levels of expertise and economies of scale. And this is where the strength of the Afrifresh business lies.

“Normally, a farmer would need to be a financial expert to deal with the banks, a technical boffin to understand technical issues, a marketing whiz to travel abroad and sell product and so on,” explained Roy Fine, development director at Afrifresh.

“We’ve taken all of these administrative functions into a central point at head office so the farm managers can focus purely on product quality and tonnage / production.”

Significant investment has been made into the farming side of the business in terms of the latest product varieties, cold storage facilities, packing houses, equipment, support, training and materials.

For example, a highly qualified team of technical experts is in continuous contact with the farms providing advice on the

Farming along the orange river

“we’ve taken all adMinistrative functions into a central point at head office so the farM Managers can focus purely on product quality and production” be monthly | 81

latest farming methods, new varieties of products and ways of improving on quality and productivity.

The entire business derives strength from the expertise that has been cultivated across all disciplines at the head office. The procurement division sources everything the farms need from chemicals and fertiliser through to packaging and equipment, and has been able to reduce costs and wastage significantly through collective buying linked to accurate estimates of crop volumes which are produced through a purpose designed forecasting system.

The marketing division, meanwhile, sells around the world and is supported by a network of distribution and monitoring

Farming in the Northern Cape

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offices located as far afield as Rotterdam in Holland and Shanghai in China. Many of these double as sales and quality control offices. Head office manages many other corporate disciplines including logistics, shipping, quality control and warehousing. In South Africa, packed produce is transported from the farms to one of a network of cold store warehouses where it is containerised and stored before being shipped.

From the outset, Conradie and Fine, together with their strong and experienced senior team, had a strong vision for growing the business into a global enterprise, and quickly identified agro-processing as a viable opportunity for diversifying and developing a further product stream from

afrifresh group

“we take sun dried raisins froM our own and third party farMs, sort, grade and package theM and supply theM both for export and for the local Market” the existing farm produce. Today, around 70 per cent of farm output is still exported.

The remainder is either sold into the local market or now goes into the lucrative agro-processing arm of the business. The company began this trend by diversify into wine making in 2002 when it launched its own wine business, African Pride Wines, from Stellenbosch, one of the three major

centres in South Africa’s world renowned Cape winegrowing region.

Building on the success of this enterprise, the company has moved into a fruit juice production business, together with a long established operator. Rather than discarding fruit that had perhaps been marked and was not considered suitable for export or the local market, it is converted into juice at a factory in Cape Town and distributed to restaurants, hotels and the retail sector.

The business plans to open another plant in the Johannesburg area in the near future.

A further agro-processing venture began in 2008 with the acquisition of a raisin business, Desert Raisins. Then in 2011 the company acquired Fruits du Sud, a major state-of-the-art raisin factory and combined the two businesses into a single large raisin sorting and packaging concern. “We now have a large raisin packaging factory in Upington in the Northern Cape where we take sun dried raisins from our own and third party farms, sort, grade and package them and supply them both for export and for the local market.”

According to Fine, the strategy going forward is to continue growing and diversifying the business. “We have recently acquired significant farm holdings in

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“We are looking to acquire processing businesses where we can provide security of supply from our own farms” Zimbabwe where we’re growing a variety of new products including macadamia nuts, tea and other fruits such as apples and bananas, and we’re planning to expand further into sub-Saharan Africa. At the moment we’re looking at opportunities in Kenya, Zambia, Mozambique and Tanzania where we’ll be broadening our product base, as we have in Zimbabwe.”

From the agro-processing perspective the company is always looking for further opportunities to add value to its existing

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product range. “So we are looking to acquire processing businesses where we can provide security of supply from our own farms, and enhance the global reach of the product through our marketing capabilities,” he continued.

Afrifresh also has a commitment to working with its local communities. “Our aim is to uplift the whole community and create jobs and income opportunities,” Fine explained. An excellent example of this is the community farming initiative in South

afrifresh group

packhouse

Africa. Supported by the International Development Bank as well as the Landbank and other funders, the company is working with several local groups to develop community land for farming, including a massive 500 hectare project in the Kakamas area on the Orange River in the Northern Cape, enabling the local people to be trained, given work on the land, produce food and export it to generate revenue.

Since its inception as a group in 1999, Afrifresh has grown on the back of a passionate and dedicated team with enormous Intellectual Property, from a turnover of approx R400 million to over R1.6 billion today. “The driver behind that growth is a fundamental belief that the supply of food is a major issue in the world

today,” Fine said. “The global population is growing incredibly rapidly and there is a strong emerging market in many third world countries where people are earning more and moving from the consumption of cereals to fresh fruit, vegetable and proteins. Against this urgent need, you have diminishing arable land and water availability.”

The Afrifresh growth plans are strong in all these areas, even to the extent that the company is beginning to look into protein farming to produce beef and lamb, and has acquired two large units already.

Farming permanent crops, as opposed to cash crops such as cereals and potatoes, however, requires commitment, planning and patience. With macadamia nuts, for example, it takes six years of careful cultivation before a new tree will begin to bear, and the time scale can be longer for some fruits. “Farming is a long-term and capital intensive business, and we’re in it for the long term.

“Our group is always looking for new opportunities and to do joint ventures with investors, funds and international agricultural companies. We also manage farms on behalf of land-owners, communities and investors,” Fine concluded.

For more information about afrifresh Group visit: www.afrifresh.co.za www.africanpridewines.co.za www.fruitsdusud.co.za

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tomorrow’s trade solutions,

today

Chief executive officer Marco Neelsen discusses the crucial role KBSP is playing in the development of Bahrain as a centre of trade and economic activity written by: will dayNes reSearch by: abi abaGuN

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Khalifa bin Salman Port (KBSP): APM Terminal

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Yard operation in CT area

khalifa bin salMan port (kbsp): apM terMinal

W

ith a total area of some are taking on an increasing amount of 765 square kilometres, transhipment business, steaming mainly the island country of from the upper Gulf, and that raises the Bahrain may be small in profile of Bahrain immensely. Our land size, but what it lacks in based activities, conducted within our scale it more than makes up for in economic terminal facility, include the operational status. According to a January 2006 report management of several warehouses, where by the United Nations Economic and Social we strip and stuff containers and provide Commission for Western Asia, Bahrain loose cargo load and delivery services.” boasted the fastest growing economy in Under the management of global terminal the Arab world. Two years later it was operator APM Terminals, KBSP has quickly recognised as the world’s fastest growing evolved into one of the most modern financial centre by the City of London’s ports in the Gulf, capable of handling Global Financial Centres Index before being container vessels with a degree of efficiency named the freest economy that matches or exceeds in the Middle East, and any of the world’s most the twelfth overall in the productive ports. world, in the Wall Street “In offering modern, Journal’s 2011 Index of innovative services for the shipping industry of Economic Freedom. the 21st century,” Neelsen Having opened for business on April 1, 2009, continues, “KBSP is playing Total land cover and located on 110 hectares a fundamentally important of the port of reclaimed land, Khalifa role in the growth of Bahrain bin Salman Port (KBSP) as a whole.” Three specific is ideally positioned to be the premier things highlight this fact. First is the history transhipment hub for the northern Gulf. of the country as a trading community.

With its deep-water berths and approach Indeed, Bahrain has existed as an epicentre channel, KBSP is a multipurpose terminal, for Gulf trade for hundreds of years and to able to accept large oceangoing container this day several highly influential trading and passenger vessels. families remain globally active, while being “With one of the most diversified port based in the country. service operations within our global Secondly is the fact that, as an island, portfolio, we are not solely reliant on it is absolutely imperative that Bahrain containerised traffic, however this still maintains well-run ports throughout the makes up approximately 50 percent of our country if it is to grow. Lastly, it is the very business revenue,” explains chief executive geography of the island that places it the officer, Marco Neelsen. “Furthermore, we enviable position of being something of

110

Hectares

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khalifa bin salMan port (kbsp): apM terMinal a half-way point between sHutdowN MaiNteNaNce Dubai and Kuwait, right at We have the honour to be a business partner with apM the heart of the Arab Gulf. terminals, a company with great experience in logistics and Depending on the port management. business indicators, KBSP our business relationship started in april 2007 in Mina has the ability to increase salman, the old port within the Kingdom of Bahrain. two its capacity by one-andyears later apM terminals moved its port management operation to Khalifa Bin salman port. a-half times its current During the past five years we have experienced apM level, simply by bringing in terminals’ sustainability initiatives and safety awareness on additional quay and yard many occasions. equipment. This will in turn a recent approach was to focus on zero work accidents support the company’s drive by maximizing mechanical means through using road towards regional growth. sweepers, floor scrubbers and mechanical hygiene, thus “While we do not see offering a safe work environment to all beneficiaries of the Khalifa Bin salman port. ourselves as being in direct smswll@batelco.com.bh competition with the UAE,” Neelsen states, “we are concentrating our efforts on targeting countries in the upper Gulf, such as Kuwait, Iraq and the Eastern Province of Saudi Arabia. In doing so we aim to promote Bahrain as something akin to a distribution epicentre within the region. Indeed this is where the geography of the island plays an important role in helping Bahrain achieve its mission of becoming much more visible in the Gulf.”

Another aspect of this mission to increase Bahrain’s global significance is the cruise business. While the cruise season in Europe ceo-Marco Neelsen

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may be over for another year, in the Middle East it is only now entering the first stages of its yearly cycle. For its part, KBSP has confirmed that it will play host to two cruise liners per week over the coming six months. Such a development is helping to put Bahrain back on the map as a cruise destination. This understandably provides the county’s tourism sector with an added boost and really highlights the importance of the port to Bahrain’s future prosperity.

“Looking at current levels,” Neelsen says, “we are seeing an increase in container volume throughput, driven mainly by regional transhipments, while local growth continues on both the containerised and general cargo side, with projects that were previously on hold during the global financial slowdown now starting to come on-stream as the country finds its feet again. The Free Trade Agreement that Bahrain has with the United States has made it an increasingly

“What we want above all else is to make as many people within the maritime world as possible take notice of Bahrain”

Aluminium shed

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khalifa bin salMan port (kbsp): apM terMinal

car carrier

attractive option for those businesses that are looking to engage with the US market.”

KBSP’s commitment to the growth of Bahrain as a nation can also be seen in its employment of a localisation policy.

Of its 530 strong workforce, some 400 plus employees are local Bahrainis, giving the company a localisation rate of more than 80 percent, a figure that exceeds its target as set out by the government. “For our part as a terminal operator with a global portfolio,” Neelsen states, “our job is to come in and run the port effectively, while training and grooming young talent to operate the port. Achieving this is core to our commitment to the country and, as our productivity results show, we are well on the way to succeeding.”

In the long term, KBSP plans to transform itself into a centre for transhipment in the northern Gulf region. “What we want above all else,” Neelsen enthuses, “is to make as many people within the maritime world as possible take notice of Bahrain. In doing so we believe they will quickly recognise the potential this country has when it comes to serving this part of the world, and that it is from here that we at KBSP can provide the transhipment solutions that assist in a customer’s movements through the international market.”

For more information about Khalifa bin salman port (KBsp): apM terminal visit: www.gop.bh/kbsp.asp

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move as you chOOSE Most travellers would be unaware how fast their individual needs are changing, but understanding their behaviour keeps the leading global car rental brand Europcar ahead of the trend written by: JoHN o’HaNloN reSearch by: JoN bradley 94 | be monthly

Europcar

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Europcar buys around 270,000 cars a year

europcar

R

oland Keppler has been at the helm of Europcar for nine months and is determined to lead the company towards a new and not always familiar role in the travel industry. In the public eye Europcar is seen as one of the big three car rental companies, together with Hertz and Avis. Its strategic alliance with the global Alamo and National Car Rental brands provide it with the world’s largest car rental network.

What the public eye does not always see is the direction in which its own behaviour and needs are moving the market. Car rental is beginning to complement other modes of transport rather than simply competing, revealing new opportunities that Keppler for one is keen to seize.

Keppler came to Europcar in 2009 from the German low-cost airline TUIfly where he was CEO. Having made the German subsidiary, which represents approximately 30 percent of Europcar’s revenues, into its most profitable asset, he also played a key part in the launch of several projects including car2go urban mobility, which represents one of the sources of future growth for Europcar.

Since his appointment earlier this year he has continued to push forward his enthusiasm for customer focus and developing people in that sense, innovative mobility models, digital solutions, and operational excellence.

Europcar is owned by investment group Eurazeo. It is organised into nine ‘corporate’ countries (Germany, France, Spain, the UK, Italy, Belgium, Portugal, Australia and New Zealand) in which it owns 100 percent of the operation and 140 franchises around

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Statistics show a fall in private car sales across the developed world

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the world, normally one to a country. Global revenues for the brand are in the region of €3 billion, including National and Alamo, while the corporate territories generate two thirds of that.

Traditionally car rental customers fall into two broad categories, business and leisure.

Germany, having been more dependent on business travel than other countries, has been hit the hardest by the recession in Europe, but private rentals have remained surprisingly buoyant. “This year we are performing better than in 2011, and beating our own business-to-consumer targets.” This may be partly due to investment in direct sales channels and more flexible pricing, he says, but he suspects underlying customer behaviour has played its part.

Statistics show a fall in private car sales across the developed world. “The signs are that people are looking for mobility on demand rather than owning a car. So I think the onus is on the industry to bring out more flexible offers. We are certainly more accessible and customer oriented than we used to be.”

In 2011 Europcar entered a joint venture called car2go Europe, a business its partner Daimler has been developing since 2007. It’s a bit like Boris Bikes in London except that the vehicle members pick up or relinquish is a Smart Fortwo. The system combines swipe card technology with mobile apps to locate and book vehicles without reservation, and is currently available in Dusseldorf, Hamburg, Ulm, Lyon, Vienna and Berlin though there are plans to launch in 40 to 50 European cities.

europcar

europcar is increasingly accessible and customer oriented

Mobility by the minute is a concept unlike any other, traditional car rental included, he believes. It’s already very successful where it has been in operation for a while, as in Hamburg where it launched in April 2011. “People like the spontaneity and that it makes it so easy to move around the city.

We believe it will grow as customers get used to the idea – the market will change over time, not overnight.” Now Europcar, car2go Europe and the Hamburg Hochbahn metro are embarking on a two year trial to join up services in a way that will accommodate both private and business users. Passengers could seamlessly switch between train,

underground, bus, spontaneous or preplanned rental vehicles, and even bike, he explains. “All the modes will be connected via an app, and physically located at centres close to subway stations.”

Initiatives like this suit customer lifestyles, but are made possible through technology.

And investing in digital technology is one of his central strategies. A further example that is now streamlining the work of the rental stations across the Europcar group is a new fast-track service for business users called eReady. Registered customers who book online can cut out the usual form filling, so at the dedicated Ready Service counter all

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they need to do is sign the rental agreement and collect the vehicle.

At the other end of the process eCheck-in will scan the vehicle and its inventory using a handheld device linked to back office software that controls the rental process from end to end. “All customers will notice is that the process is fast and paperless,” says Keppler. “People are coming to expect this level of service from our industry – after all it is very convenient to buy something from Amazon – one or two clicks and the item is delivered to your home. Invoicing, payment, delivery are all digital. This is what I think people now expect from our industry and we are preparing ourselves to meet these expectations.”

Operational excellence (the customer’s expectation that the process – and the car – will work) can’t be separated from customer focus. Europcar introduced its Promoter Score feedback system at the end of 2010 with the question ‘would you recommend us to friends and family?’ Respondents giving nine or ten out of ten are classed ‘promoters’; nought to six ‘detractors’. “When we started about 50 percent of respondents were promoters: we are now up to 70 percent, well on the way to our target of 80 percent

‘convinced customers’ who would actively promote our business.”

The detractors were in for a shock too – senior managers were asked to pick up the phone to talk to customers about whatever issues they raised. Here Keppler leads by example, enjoying the reaction of people taken aback by a personal call from the CEO. “It was a learning experience for us too,” he admits. “Suddenly head office managers are

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europcar

Vehicles are repurchased by the manufacturer after around six months

talking to customers where by competitors, he believes, formerly they were making because it allows Europcar to concentrate on its core decisions without much idea of what was happening on business of selling mobility. the ground. Now they are The balance of value Target for getting first hand feedback between rental company and ‘convinced customers’ and dealing with it, and manufacturer is a delicate that’s a cultural change for one, depending largely on demand for new and used the whole organisation!”

By and large Europcar operates on cars. Nevertheless, “The buy-back model what is called the buy-back model – rather is one of the strategic pillars we have as a than being a long term asset, vehicles are company. We believe that in the long term it repurchased by the manufacturer after is more robust than the risk model.” around six months and resold. “You could say we are a big producer of young used cars,” For more information about he jokes. “We buy around 270,000 cars a europcar visit: year.” Buy-back works better than the lease www.europcar.com or outright purchase ‘risk’ scenario favoured

80%

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african enerGy

a decade of

RELIABILITy Managing director of African Energy, Lincoln Dahl, discusses how his company has remained at the centre of a rapidly evolving market written by: will dayNes reSearch by: Jeff abbott

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African Energy supplies solar, wind and power backup equipment

african energy

I

n a world where looking to the future is the norm, it can be difficult to comprehend how much can happen in a decade. It is hard to imagine that it was ten years ago that the Euro currency first entered circulation; George W. Bush was one year into his second term in office and Pete Sampras was still dominating the world of tennis with victory at the US Open. Yet if a decade feels like a long time ago for us, it is virtually a lifetime ago for certain industry sectors in Africa. One such sector that has been built up from nothing in that time is renewable energy.

The year 2012 marks the tenth anniversary for African Energy. Serving the continent’s leading renewable energy companies, African Energy supplies solar, wind and power backup equipment on a wholesale basis to more than three hundred partners.

Direct distributors for the likes of Xantrex/ Trace, Morningstar, Suntech Power, Magnum Energy and others, the company specialises in creating reliable distribution channels that enable its dealers to expand their markets for renewable energy.

“One of the things I noticed in my years of working in Africa as both a diplomat and within the solar industry,” explains managing director Lincoln Dahl, “was that there was a distinct lack of distribution as it relates to renewable technology. This also meant that very few people had any knowledge of what to do with the technology should it ever become available and this meant that there was a huge gap in the market that needed filling.”

The company began life as a small

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operation, working out of the backroom of Dahl’s home, catering for a handful of customers. What it soon discovered was that once people were provided with access to the necessary equipment they soon found it easy to develop a market and find customers for themselves.

“A decade ago,” Dahl continues, “solar energy was very much a drag and drop business in Africa. The fact that system design, and in some cases even installation, was done by people outside the continent

meant that local knowledge was always in short supply. What we did early on was commence with a pretty aggressive training programme that we invited manufacturers to become a part of. To date we have conducted in excess of 25 of these programmes and this has not only helped us find customers, but also helped them to develop.”

Focused solely on the African market, African Energy is perhaps better placed than any other to express just how much potential

“If a decade feels like a long time ago for us, it is virtually a lifetime ago for certain industry sectors in Africa”

A comprehensive training programme is in place

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african energy

africa represents a new opportunity for international companies

the continent possesses for renewable energy business. “The first thing Africa has going for it,” Dahl states, “is that it is not Europe. Many of the major European markets’ renewable energy programmes and projects are increasingly being scaled back or mothballed altogether. What Africa represents is a new opportunity for international companies to expand their operations. Africa is also one of those rare parts of the world that hasn’t finished growing yet and as such infrastructure build-out continues to increase with each passing year.”

Increased stability and the emergence of representative governments have also helped the business considerably in the last decade, however it is inevitable that when developing a young industry, difficult

challenges arise. Needless to say, African Energy has had to negotiate several such hurdles in its lifetime.

“Operating within a young, growing market,” Dahl says, “you tend to spend much of your time educating people and businesses. This process begins with our own employees, educating them not only about the customers and the marketplace, but the technology as well.

The customers themselves also require the same degree of training and support, as do the manufacturers. This often begins by opening their eyes to the potential that this continent has and ends with us pretty much physically hauling people over to Africa where they invariably fall in love with what the market has to offer.”

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African Energy specialises in creating reliable distribution channels

The company has strong c

“Customers say they deal with us because of our honesty and our steadfast commitment to quality” Attaining finance in order to carry out work in Africa is another challenge that Dahl is all too aware exists. “As a company, we are entirely self-financed. The reason for this is simply because of how difficult it is to secure financing in this part of the world. What this does mean however is that our growth to date has been 100 percent organic. While in some regards that may have slowed us down a little, it has also led to

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the forming of extremely tight relationships between us and our customers, relationships that have gone a long, long way to making African Energy a success.”

Having celebrated ten years in business, the company has recently made an effort to map out a forecast for what it predicts the next decade will hold for not just African Energy, but Africa as a whole. What it anticipates is the emergence of two very

african energy

customer networks across africa

long-lasting relationships are a hallmark of the company’s success

different Africas, one consisting of countries with democratically elected, representative governments and the other with countries that have not evolved in the same direction.

For the company itself, continued success relies upon it taking up more active positions in the countries in which it operates. “We have evolved to the point where today we have strong customer networks across Africa,” Dahl enthuses, “and now comes the time where we need to bring the product closer to these customers. In the last six months we have opened a warehouse in Botswana and in the years to come we expect to introduce stock to the majority of countries where we are active.”

On numerous occasions over the years Dahl and his team have taken the time to look back

on what they have achieved together and, as he reveals half-jokingly, often ask themselves are they successful because of what they do, or in spite of it? “When we ask our customers why they deal with us,” Dahl concludes, “they all say it is because of our honesty, our belief in establishing healthy, long-lasting relationships and our steadfast commitment to quality.

There are a lot of things that have worked for us over the last ten years, but I think the most important is remembering that our customers expect African Energy to be the reliable supplier.”

For more information about african energy visit: www.africanenergy.com

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SEADOG Commercial Diving School

Educating the next generation Managing director Bridget Thomson talks about how the provision of commercial diver training is contributing towards South Africa’s development as a hub for oil and gas activities written by: Will Daynes research by: Marcus Lewis

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seadog coMMercial diving school

E

ver since the first commercial offshore saturation dive was performed in the Gulf of Mexico, back in March 1966, the work of offshore divers has proven invaluable to the exploration and production sectors of the oil and gas industry. For nearly 60 years these divers have been responsible for carrying out the maintenance and inspection of offshore oil platforms, as well as the building of underwater structures used in the production process. Without the efforts of these highly skilled individuals the oil and gas sector may very well have struggled to reach such prominence during the latter half of the 20th century.

Established in January 2010 by managing director Bridget Thomson, SEADOG Commercial Diving School is a training centre for the oil and gas industry, specialising in such fields as commercial diving, supervision and diver medic training.

Situated within Saldanha Bay, SEADOG’s unique location allows trainees to develop under realistic conditions where the quiet waters of the bay provide the perfect introduction to learner divers before they enter the open ocean.

Committed to providing quality, progressive education, using outcomebased skills training, SEADOG promotes student-centred learning. This structure ensures that those individuals trained by the school demonstrate competency through a combination of knowledge, understanding and skills that encourage good performance and safe working practices.

“Personally,” Thomson explains, “I

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have been involved in the medical and occupational health and safety sector of commercial diving since 2000. As a result of my own experiences I have been aware for quite some time that there is a strong level of demand for the services that SEADOG offers, particularly in light of South Africa’s growing importance within the oil and gas industry.”

The role South Africa plays in today’s market is further highlighted by its being one of a handful of countries where its accredited diving schools award qualifications that are recognised by the International Marine Contractors Association (IMCA). “What we quite often find with the clients we work with,” Thomson continues, “is that they will often select a team of people that they wish to train as commercial divers before then sending that group or team to us to receive the proper education.”

While SEADOG Commercial Diving School is a relatively young business in its own right, the experience of its managing director and the trust she has gained throughout the industry have proven to be the catalysts behind what has become a successful, respected operation. “A number of the people that I have trained over the years are today working in key positions in many of the big oil and gas players in the region,”

Thomson says. “What I believe to be the key to SEADOG’s success is a combination of the trust these former trainees turned supervisors, superintendents and managers have in us, our ability to maintain long-term relationships and the way in which we are able to adapt as a business to meet changing

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seadog coMMercial diving school

seaDoG awards qualifications that are recognised by the international Marine contractors association (iMca)

industry needs.”

“It is my belief,” Thomson states, “that Education, training South African oil and and development are gas companies need developing themes across to come together and Southern Africa, with all Year of the first offshore of its major industries make a stand as a way of saturation dive being encouraged to showcasing the products, embrace change and new training and services ideas, rather than just they have to offer. I think maintaining traditional standards and a lot of countries maybe see this part of practices. One organisation providing a the world as being a lot less advanced than platform that will allow its members to it really is and bodies like the SAOGA can move forward together is the South African help change that perception. The SAOGA Oil and Gas Alliance (SAOGA). certainly has the potential to achieve a

1996

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“It is clear to anyone who visits SEADOG that it has developed a rock-solid programme” lot more in the years ahead and that will ultimately benefit everyone.”

The progress made by SEADOG over the last two and a half years has certainly been impressive. In that time it has hosted representatives from the IMCA and from international businesses such as those based in Australia, each of whom have been highly complimentary of the school’s training and assessment methods and its quality assurance.

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“It is clear to anyone who visits us that we have developed a rock-solid programme here,” Thomson enthuses.

“What we are doing now to further grow the business is to establish several cooperative agreements with other diving schools and professional bodies.”

It is this approach that SEADOG hopes to extend internationally through the establishment of cross-border cooperatives.

“Where we are in Saldanha Bay,” Thomson

seadog coMMercial diving school

seaDoG’s trainers have knowledge and experience in the technical, medical and supervisory fields

says, “you can see from the rigs that arrive on a regular basis and the on-going developments within the harbour areas that there is a good future ahead for the industry in this region. However, this potential is not just limited to South Africa. We are seeing it occurring in the Middle East and across Asia in countries that South Africa has strong ties and relations with.”

Boasting a complement of trainers whose knowledge and experience encompass the technical, medical and supervisory fields, the medium-to-long term goal of SEADOG Commercial Diving School is to leverage this into being able to offer more specialist training courses. This would target other growth areas within the field

such as the work of dive technicians and medical technicians.

Nevertheless, Thomson appears acutely aware that the success of the school is, at least in part, tied to the growth of the region as a hub of oil and gas activity. “South Africa truly does have the means and abilities to offer a quality service to the oil and gas industry. As we ourselves evolve and grow as a business, it is that message that we will look to convey on an international scale.”

For more information about seaDoG commercial Diving school visit: www.divingschool.co.za

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Making waves 118 | BE Monthly

aGs - africa Geophysical services

Country Manager Shane Johnson explains how a team of experienced seismic experts are paving the way for other companies to reap the rewards that East Africa has to offer written by: will dayNes reSearch by: ricHard HalfHide be monthly | 119

W

hile countries such as Tanzania, Kenya and Mozambique are fast on their way to becoming established centres of economic prosperity, in part due to the extraction and utilisation of their considerable natural resources, the east of Africa remains home to a great many unexplored areas.

It is because of the success of national and international companies in the region that these unchartered swaths of land have become of increasing interest to all manner of organisations.

Exploring this land however can prove to be an expensive gamble, with companies standing to lose considerable amounts of capital should they choose to lay down infrastructure in an area that fails to yield results. In order to avoid such scenarios, these companies endeavour to acquire as much information about the potential profitability of a property before further work takes place.

It is at this point where seismic experts like AGS come into play.

Registered in Oman, AGS was established by managing director Steven Thomas, who subsequently brought in Shane Johnson as a country manager. “What we made it a priority to do from day one,” Johnson explains, “was to bring together a number of experienced individuals that possess a great deal of knowledge in their specialist fields, old seismic hands if you will, and then progressively build the business up from there.”

The first contract awarded to AGS was on behalf of Dodsal Hydrocarbons and Power, conducting work for them in Tanzania’s

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Testing loaded shot point

AGS - Africa Geophysical Services

RUVU basin. This particular project required the company to carry out 550 kilometres of 2D land seismic in an area 60 kilometres west of the city of Dar Es Salaam. “We began this programme of work in late July 2011,” Johnson continues, “completing it in November.

Following this we were awarded an extension of several hundred kilometres, a task we completed in between the wet seasons from January through to March. Most recently we completed our third extension programme in the RUVU basin during July, August and October.”

On the heels of its success in the basin, AGS is now in the process of mobilising for a contract it was recently awarded by Ndovu

Drilling operations at low tide

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Resources, a wholly-owned local subsidiary of Aminex. This particular contract will see AGS carrying out 2D seismic over a distance of 890 kilometres, stretching down to the Mozambique border.

One of the core characteristics that defines AGS, and has contributed significantly to its success over what is a relatively short space of time, is its ability to maintain low-overhead costs. “Unlike a lot of the big companies that we have previously worked for,” Johnson states, “we do not rely on large support networks in order to carry out our operations. What we do is hire personnel that possess a wealth of experience working in different fields.

Between myself and Steven Thomas there is

ags - africa geophysical services something like 55 years of seismic experience alone, and having this level of knowledge in-house effectively allows the company to provide its own support systems. We believe wholeheartedly that we understand better than most how a crew needs to function and what it requires to be successful in the field, and we are able to deliver this without suffering from any drastic overhead costs.”

The use of the latest recording technology and quality control systems has always been at the heart of the work the company undertakes, however it is its personnel that AGS credits with its success when it comes to working in areas of diverse culture and extreme environmental sensitivity. “Our

“ags always looks to integrate itself into coMMunities” staff,” Johnson enthuses, “have operated in Africa for some considerable time, with many bringing to the table experience of working in countries such as Tunisia, Morocco, Libya and Nigeria. In this time they have developed the ability to work through all manner of challenges, while generating innovative solutions that acquire high quality data in a safe, timely and efficient manner.”

Understanding the impact its activities can have on the local population is something AGS takes very seriously. “We strive to employ and train as many locals as we can in the areas in which we operate,” Johnson says, “as well as purchase locally, wherever possible. As a company, AGS always looks to integrate itself into communities, understanding the value that can be generated by working alongside, and in partnership, with the local population.”

This level of commitment to social responsibility also extends to the company’s environmental stance. Protecting the environment, preventing pollution and seeking improvements in the efficient use of natural resources are promises the company makes prior to undertaking any task. Equally as important is its ability to ensure, to the highest possible degree, that its products and services will not cause injury or adversely harm its surroundings.

AGS’ goal, in the short-term at least, appears to revolve around steady, calculated growth.

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small blow out charge going off during recording ops

ags - africa geophysical services “During the course of the next 12 months,” Johnson reveals, “we plan to start up a second land-sized crew, which will likely be based in Kenya. Once deployed, we will be able to monitor how we can effectively operate with two crews at work at the same time.”

One of the things AGS is extremely conscious of is the danger that comes with young companies growing too big, too quickly. “If expansion isn’t handled correctly,” Johnson says, “you run the risk of having crews that don’t function safely and as a result operations could become unmanageable.

That is precisely what we don’t want to see happening and want to avoid at all costs.”

All going well, the success of a second land-sized crew in Kenya will then act as a springboard for what Johnson hopes will be greater international expansion for AGS. “Once we have shown to be able to operate multiple crews in a safe and effective manner we can then look ahead to establishing a large Vibroseis crew in Oman. This would most definitely represent a huge step forward for the business, but in order to get a foot in the door we have to be able to produce a curriculum vitae that provides proof of our capabilities. We believe our work in Africa up until now, and in the months to come, is the best form of proof we could possibly offer to this effect, and we are confident our clients would agree.”

For more information about aGs - africa Geophysical services visit: www.ag-services.org

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newmont Ghana Gold

setting an

example

George Brakoh, manager of local supplier and contractor development, explains how the economic legacy left behind by Newmont Ghana Gold will benefit the local community for years to come written by: will dayNes reSearch by: ricHard HalfHide

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newMont ghana gold pouring concrete

B

oasting economic grow th rates that have consistently topped six percent in recent years, Ghana is universally lauded as being an emerging African economic success story. A peaceful and stable democratic nation, Ghana continues to make strong progress towards its goal of becoming a middleincome country by 2020.

Like many companies currently based in the country, the Newmont Mining Corporation has found Ghana to be a land of great opportunity and one where it can expand its own global reach. One of the largest and oldest gold producers, the Newmont Mining Corporation also holds significant assets in North and South America, Australasia and the Far East, employing 43,000 staff and contractors worldwide.

In Ghana, Newmont’s African activities are presently centred on its Ahafo operation, located beneath an area inhabited by around 1700 households.

Newmont’s staff made great strides in successfully resettling the affected community, compensating residents financially and providing them with new homes, schools and titles to land that they were previously not allowed to own.

Today the mine supports the employment of 1800 people directly employed by Newmont and provides work for a further 3000 contractors on site. As the mine has continued to develop, its focus has turned to Newmont’s Ahafo Linkage Programme, a three year project designed

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Atlas Copco Ghana Ltd. +233(0) 302 774512 info.ghana@gh.atlascopco.com www.atlascopco.com

S

Surface Drilling Equipment

Sustainable Productivity

ATLAS COPCO GHANA LIMITED Innovating for sustainable productivity Atlas Copco is an industrial group with world-leading positions in compressors, construction and mining equipment, power tools and assembly systems. The Group delivers sustainable solutions for increased customer productivity through innovative products and services. Founded in 1873, the company is headquartered in Stockholm, Sweden and has a global reach spanning more than 170 countries. In 2011, Atlas Copco had about 33,000 employees.

The Group’s vision is to become and remain First in Mind –First in Choice® for its customers and other stakeholders. Its organizational culture is based on three core values which are interaction, commitment

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and innovation. These values guide its people towards a consistent position in offering the best of products and services to customers and other stakeholders.

Atlas Copco Ghana Limited started operating at Obuasi, Ghana in 1992 with the goal of supporting the country’s mining industry.

Its regional responsibility covers Nigeria, Liberia, Sierra Leone and French speaking West Africa. The company currently has three branches strategically positioned in Accra, Obuasi and Tema.

Atlas Copco Ghana operates through a number of divisions within three main business areas; Mining and Rock Excavation Technique , Compressor Technique and Construction Technique.

newMont gold NEWMONT ghana GHANAGOLD

The Mining and Rock Excavation Technique business area markets and services underground drilling rigs for tunneling and mining applications, surface drilling rigs, loading equipment, exploration drilling equipment as well as the related aftermarket and drilling consumables, all designed to help achieve high productivity with moderate maintenance costs.

The Compressor Technique business area provides industrial compressors, gas and process compressors and expanders, air and gas treatment equipment and air management systems. It has a global service network and offers specialty rental services. Compressor Technique innovates for sustainable productivity in the manufacturing, oil and gas, and process industries.

The Construction Technique business area provides construction and demolition tools, portable compressors, pumps and generators, lighting towers, road construction and compaction and paving equipment.

It offers service through a global network.

Construction Technique innovates for sustainable productivity in infrastructure, civil works and road construction projects.

The company can also boast of a well-defined aftermarket (service) team which offers expert service and training to customers to increase their production capacities. In enhancing its service offering, the company has recently established a new training facility at Obuasi to provide a central place for employees and customers to attend training seminars and courses under the “Master Driller Program� which is a by-product of the Atlas Copco Performance Services initiative.

Atlas Copco Ghana does more than meeting equipment needs; it goes a mile further to help solve customer problems by providing consumables, spares and solutions for customer operations.

The company continuously strives to be a good corporate citizen and as part of its corporate social responsibilities, immense contributions have been made towards the sustainable development of the Obuasi community. Atlas Copco Ghana has also been involved in various charity and community engagement projects in Ghana.

It remains committed to sustainable productivity.

T. +233 0302 774512

Info.ghana@gh.atlascopco.com

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NEWMONTghana GHANAGOLD newMont gold GhanaGold est laborum. Lorem ipsum to Newmont increase procurement feature textsuppliers. to go here...... dolor sit amet, consectetur from local adipisicing elit, sed do Lorem ipsum dolor sitof amet, “Over the course the last six months,” explains consectetur adipisicing elit, eiusmod tempor incididunt sed do Brakoh, eiusmod tempor ut labore et dolore magna George manager of aliqua. Ut enim ad minim incididunt ut labore et dolore local supplier and contractor veniam, quis nostrud magna aliqua.forUtNewmont enim ad development exercitation ulla mco Ghana Gold, quis “wenostrud have minim veniam, laboris nisi ut aliquip ex successfully completed exercitation ullamco laboris ea commodo consequat. the of this nisi utfirst aliquipphase ex ea commodo Duis aute irure dolor in consequat. Duis aute programme.

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GOLDER ASSOCIATES Golder Associates’ involvement in Newmont Gold Ghana Limited’s Ahafo Amoma project began during stage three and involved the design, engineering and construction of a large majority of the infrastructure related to the goldbearing, open-cast pit.

From the outset, Golder engineers added value by determining more efficient ways of setting up the project, whereby they reviewed and optimised NGGL’s initial design concepts.

Included in the scope of work was the design, engineering and construction of an 8.7 km haul road and associated infrastructure; the waste rock dump; the sedimentation control structures and associated controlled outlet structure.

The site’s secluded location, extreme topography and adverse weather conditions presented Golder with numerous challenges,

such as logistics, water management, sedimentation control and security. Golder managed these challenges by thinking outside the box, which involved extensive research and inventive in-house engineering, which well exceeded client expectations.

Golder handed the project over to NGGL US$9million under budget, three months before schedule, and with an exemplary safety record of no reported incidents.

Golder’s ‘above and beyond’ work ethic and quality engineering and delivery of the Ahafo Amoma project, enabled NGGL to begin operations at the mine three months ahead of the expected operational date. cfell@golder.co.za www.golder.com

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Weekly Because a month is a long time to wait...

Your weekly digest of business news and views www.bus-ex.com

newMont ghana gold them the opportunity to coNsar grow. Meanwhile, a similar Between July 2004 and June 2006 consar limited mission being undertaken demonstrated our performance in building and civil at Ahafo involves a drive to engineering works when we were awarded the construction create more private-public of a new ball/sag mill wet plant including 49 senior and junior sector partnerships and staff houses at ahafo for Newmont Ghana Gold limited. increase the level of dialogue our quality and standard of workmanship, coupled with a good working relationship with Newmont, earned us between the two sectors. another opportunity to construct a new ball/sag mill wet “Most of the time,” Brakoh plant together with 160 room accommodation at akyem, continues, “what we find is which is nearing completion. that the two sectors tend not Working with Newmont Ghana Gold has tremendously to understand one another. improved our safety and environmental practices in our What we want to do is create construction business over the period. a scenario where the two www.consarltd.com sides can connect with one another. We believe that this will ultimately create a more level business environment that will allow everyone to grow more effectively.”

What the company is equally keen to ensure is that a legacy of economic stability and growth remains long after the mine has ceased operations. One of the ways it plans to achieve this is through the strengthening of regional agribusiness. “We believe the environment around the mine provides excellent economic opportunities,” Brakoh enthuses, “and we want it to remain that way even when our own presence diminishes.

3,000 contractors that the mine provides work for stone pitching works

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Top soil spreading by Gyifoss

Newmo

“Today we are focused on promoting the mentoring of small business by some of our larger contractors�

What we are striving to do is encourage more successful local businesses to invest some of their profits into various agribusinesses.�

On the national front, Newmont Ghana Gold is at the forefront of efforts to develop local content agreements across the country. These efforts have the full support of the Ghanaian government

138 | BE Monthly

who have brought in local content laws that require mining companies to submit local procurement plans, based on a list of items.

Working in collaboration with the Ghana Chamber of Mines, Newmont has thus far identified 28 different product categories that it believes can be sourced

newMont ghana gold

ont is committed to local sourcing

locally. Together with a number of specialist consultants, the company has been carrying out in-depth analysis of these products and the companies that manufacture them in the country.

“Based on the progress made to date,” Brakoh says, “we have proposed that a programme focused on driving local content agreements begins in early 2013.

What we believe we can achieve in the short-to-medium term is to attract an increasing number of foreign investors into the country, with the ultimate aim being to encourage them to partner with local businesses. This is all part of a longterm strategy that we have mapped out

Grass planting by Nyame adom twum

that we believe will lead to a situation where international manufacturers will be able to utilise Ghanaian businesses to establish their own local operations.”

Newmont Ghana Gold will certainly be hoping that its local content programme meets with the same success and approval as some of its other initiatives. In early October, the company was commended by the country’s Asanthehene, Otumfuo Osei Tutu II, for establishing the New mont A ha fo Development Foundation, an enterprise that seeks to ensure the sustainable development of its host communities.

Otumfuo praised the company for

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The local content programme at Ahafo has met with great success

newMont ghana gold

1,800 people directly employed at Ahafo

the cordial working relationship it has maintained with local communities and reaffirmed his belief that if all other mines could emulate the example set by Newmont, the lives of mining communities across Ghana and Africa as a whole would improve by leaps and bounds.

“Together with our partners in the local community we have achieved a lot at Ahafo,” Brakoh says, “and the results are there for all to see. What I, like many others, now believe is that we have the potential to achieve something just as big on a national scale. Thanks to Ahafo there are numerous examples of local businesses that today have the potential to grow further thanks to opportunities that didn’t exist before and we are passionate about making such opportunities available on a national level. We are under no illusion that this will pose significant challenges, but with the best efforts of everyone involved we feel that what happens in Ghana will set an excellent example that other countries can follow.”

For more information about Newmont Ghana Gold visit: www.newmont.com/africa

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keeping IT SImpLE Kudumane Manganese Resources is developing its mining operation in one of South Africa’s poorest regions, and is keeping simplicity and the local community at its core

written by: becKy doNe reSearch by: JoN bradley

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Kudumane Manganese Resources

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Sechaba Letaba, CEO

kuduMane Manganese resources

S

outh Africa-based Kudumane Deepwater Port becomes operational Manganese Resources is the outside Port Elizabeth, it will become latest mining operation to enter the preferred exit point for the mine’s the competitive manganese ore product. Production of manganese ore industry. Located near Hotazel from the project is expected to eventually in South Africa’s Northern Cape Province, increase to two million tonnes per annum the mining operation will produce and later 2.5 million tonnes per annum, manganese from the rich deposits that with the introduction of underground characterise the region. The project is operations in 2019. The expected life of located about one kilometre from Hotazel the mine is 10 to 15 years for the open pit and about 50 kilometres from Kuruman. or combination mining operations, after Kudumane Manganese Mine is owned which underground mining will continue

by Kudumane Manganese Resources, for an estimated 30 years. a joint venture between two BBBEE The project infrastructure consists of compa n ies, Dirleton an open pit or combination Minerals & Energy and the open pit and underground Northern Cape Manganese mine, a crushing and screening plant, mine Company (NCMC), which own equal shares in the residue disposal storage and firm. Hong Kong-based facilities, and various other manganese multinational support infrastructure Asia Minerals Limited and services. cost of kudumane (AML) owns a 49 per cent The project will be in project full production by the share in both companies, end of 2013, with the first and is the project’s technical partner. AML will market and sell the phase being bulk sampling activities manganese globally and has arranged all followed by production. “We are currently project financing in its role as technical at the first stage of the project, which and marketing provider. Bold Moves and is pursuing bulk sampling,” explains NWC Manganese are also shareholders in Kudumane Manganese’s project manager NCMC and Dirleton.

Schalk van der Merwe. “That will be The R1.5 billion project will consist of complete by December. Then we will be both open pit and underground mining, building the rest of the infrastructure, with the intention of shipping an initial including a railway siding for future 1.5 million tonnes of manganese ore loading of the manganese, housing, offices, out by both road and rail to the harbour workshops and stores. We’re just spending at Port Elizabeth each year. When the money at this stage!”

Coega Industrial Development Zone and The infrastructure to be developed as

r1.5

billioN

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BLUE CHIP MINING & DRILLING

2009 Fabriek St, Kuruman Industrial Area, Kuruman Email: martin@bluechipmining.com | Telephone: 053 7122858

kuduMane Manganese resources

traditional dancers - setswana

part of the project includes 5.3 kilometres of railway siding, an automated 3,500 tonnes-per-hour rapid loading station, road trucks with a loading capacity of 300 tonnes per hour, a crushing and screening plant, and storage facilities to handle the mine’s residue. Plans are also underway to construct a sintering plant, which will allow the mine to ship out the ore after undergoing this pre-smelting process.

Other infrastructure being developed includes roads and general developments in and around Hotazel such as housing, schools, and a hospital.

As the project is located in the remote and harsh environment of the Kalahari Desert, bulk services had to be laid down from scratch at the outset. “That has been our biggest challenge,” admits Van der Merwe, “getting bulk services in such as

“the operation is a siMple set-up with no Major technology involved—it is a siMple blast-and-haul Mining process” be monthly | 147

RESTORING BUILDINGS, BUILDING COMMUNITIES

Tel: (051) 403 0400 Fax: (051) 4030450 info@ruwacon.co.za www.ruwacon.co.za P.O.Box 13596, Noordstad 9302, 6 Mimosa Street, Bloemfontein

Heard Tell us about your company and we’ll tell everyone else www.bus-ex.com

kuduMane Manganese resources water and electricity.”

Ho w e v er, d e s pit e ruwacon has a reputation for being a dependable, the challenges, it is the professional company operating according to industry simplicity of the project standards, international best practices and uncompromised that defines it, says Van business ethics. ruwacon recently entered the mining der Merwe. “The operation industry by engaging in a civil earthworks project with is a simple set-up with Kudumane Manganese resources in preparation for the construction of a railway line and internal roads. no major technolog y our scope of expertise ranges from construction, involved—it is a simple maintenance and repair as well as civil contracting blast-and-haul mining making us one of the preferred construction companies process. The plant itself is to a growing number of clients in the mining industry. also very simple. There’s ruwacon’s mission is to complete every project no technology involved successfully, within budget, on schedule and with in the first phase: for the impeccable quality. www.ruwacon.co.za next five to seven years, it is a simple process. This keeps the level of capital investment low as well.”

The operation occupies one of the poorest regions in the whole of South Africa, and Kudumane Manganese hopes that its social and labour plan will have a positive impact on surrounding communities. “The social and labour plan makes provision for many different activities we must undertake according to the Mining Charter in South Africa.”

Under the Mining Charter, mines should work together and pool their resources in order to maximise their benefit to an

ruwacoN

2013 End of year target for full production Minister shabangu

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individual area, he explains. “So we’re now negotiating with other mines to see what is already in place; and at the same time we’re talking to local communities to see what is outstanding and what we still need to do.”

The company has recently met with the regional council to identify the activities in which it can participate. The mines in the area are looking at developing Hotazel; as well as the housing, schools and hospital, the mines hope to bring in a better water supply, as the current supply is not sufficient for the population. Also on the agenda is the renovation of electrical power lines. “This is the poorest part of our country, and anything that is of assistance is greatly appreciated by everybody,” says Van der Merwe. “There’s a lot of participation locally and a welcoming environment, ensuring everybody benefits.”

The company also has a robust plan in place to employ local people. “As part of our social and labour plan, 80 per cent of our skilled workers must come from the local community; then we aim to ensure that through skills transfer, 100 per cent of our workers will come from the local community in the future. We will achieve this through giving out bursaries, training, or whatever is needed; but eventually that’s our goal.”

The bulk of workers will be sourced from within the region’s John Taolo Gaetsewe District Municipality. Once fully operational, the project will give preference to the locally unemployed wherever possible, and only where local employees cannot be sourced with the requisite skills and experience will national recruitment take place.

“You need to be a low-cost producer and if you can’t do that you’ll be priced out of the market” 150 | BE Monthly

kuduMane Manganese resources

suzuki, the late Mr sisulu, former chairman of KMr, Minister & others

Specific areas that will benefit from the employment of between 200 and 300 people directly and up to 300 indirect employees will be the Joe Morolong Local Municipality, the District Management Area, Hotazel as a whole and thereafter the rest of the province. Up to 500 people will be employed during the construction phase.

In terms of the environment, the operation’s simple nature means that risks are fairly easy to assess, says Van der Merwe. “In essence there’s not a lot of waste from our mine. However the biggest risk is fuel: we store a lot of fuel on-site for our equipment, so that’s our biggest environmental risk. The rest is simple,

it’s all from the mine—issues such as dust, for example. But there’s no hazardous material from the mine itself.”

The key to success on this project has been keeping things simple and costs down, says Van der Merwe. “The biggest thing for us is making sure our capital is low. You need to be a low-cost producer and if you can’t do that you’ll be priced out of the market. In a sense, there is nothing exceptional about our project: it’s really very simple,” he concludes.

For more information about Kudumane Manganese resources visit: www.kmr.co.za

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Into the deep written by: will daynes research by: abi abagun

152 | BE Monthly

KGHM Polska Miedz - Sierra Gorda Project Business manager Roberto Luna discusses the on-going development of the Sierra Gorda open pit copper mine project

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Salt water pool - Earth work

kghM polska MiedZ - sierra gorda project

A

s well as having the distinction of being known as the driest desert in the world, the Atacama Desert of Northern Chile is home to the Sierra Gorda project. “A large tonnage, open pit copper mine development,” explains business manager Roberto Luna, “it boasts deposits that total up to 2.2 billion tonnes of measured and indicated resources, and reserves amounting to some 1.3 billion tonnes.”

Estimated to have a useful life of 20 years, two phases of activity have been proposed.

The first of these will run from 2014 until 2017 and will feature an ore throughput rate of 110 kilotons per day. The second phase will then commence in 2017 and is expected to involve ore throughput reaching levels of 190 kilotons per day on average.

The main plant equipment needed to be brought together for the first phase of the project includes one primary crusher, four secondary crushers, three ball mills, four high-pressure grinding rolls and 32 floatation cells. In turn, six 73yd3 shovels, 41 cubic metre front loaders, six drills, and 29 trucks with a 300 tonne capacity are being considered for the mine.

As is the norm for an open pit mine, the ore from Sierra Gorda is hauled by trucks to a primary crusher. By means of conveyors over the ground the ore is then transported from the crushing stages to the concentrator plant, before grinding is carried out through ball milling using hydrocyclone classification circuits. The ore released from wet grinding is then recovered during the bulk copper and molybdenum flotation stage.

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SIERRA GORDA kghM polska MiedZ - sierra gorda project

SalfaCorp As an industry leader, Salfa Montajes, a SalfaCorp subsidiary working in industrial construction and assembly in mining and energy, has been awarded construction and installation of the Sierra Gorda Processing Plant (110,000 ton per day capacity) dry and wet areas. With a contract totaling over $350 million dollars, the Sierra Gorda project covers all multidisciplinary areas with a commitment of over 10,000,000 man-hours from the start of Civil Works to the launch of the plant, including raw materials stockpiling, secondary and tertiary grinding (HPGR), secondary and tertiary sieves, crushing, floatation, filtration and tailings thickeners, among other areas.

As part of this process, for the past two years Salfa Montajes has taken part in the project’s constructability with Sierra Gorda S.C.M., both in Chile and Canada.

Salfa Montajes has been involved in every stage of the project, including construction strategy, organizational structure, logistics, as well as assessment and awareness of the construction CAPEX in each of the engineering stages.

With 83 years of experience behind it, SalfaCorp is ranked in the top 5 in Latin America companies in engineering and construction, leading the Chilean market with annual sales of more than $1.7 billion dollars, and with a workforce of over 44,000 and 2,400 professionals.

Constant evolution and innovation has permitted Salfa Montajes to be an industry leader in its areas of specialty and service. It has reached successful international expansion to key regional markets such as Peru, Colombia, Panama, and Uruguay, with active participation and dedicated client service.

Throughout its history, the company has demonstrated an outstanding ability to grow in a sustainable manner and offering solutions for a variety of services, including construction and industrial assembly, civil construction, infrastructure, industrial maintenance, mine development, marine works, earth moving and EPC projects.

E. salfacorp@salfacorp.com www.salfacorp.com

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kghM polska MiedZ - sierra gorda project SIERRA GORDA The final product is a mixed copper Sierra Gorda feature text.....Lorem ipsum and molybdenum concentrate that is sent dolor sit amet, consectetur adipisicing elit, to a flotation plant where molybdenum is sed do eiusmod tempor incididunt ut labore recovered and copper concentrate remains et dolore magna aliqua.

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consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

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Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor prestripping

HATCH HELPS SIERRA GORDA BECOME ONE OF WORLD’S LARGEST MOLYBDENUM PRODUCERS Sierra Gorda has turned to Hatch’s EPCM expertise to support its ambitious copper / molybdenum plant project in the Antofagasta region of Chile. This is a unique opportunity for the company, since the mine’s molybdenum ore grade for the first three years is about 900 ppm, which is significantly higher compared to the industry standard of less than 90 ppm.

Working with a tight timeline between July 2012 and May 2013, Hatch is responsible for all detailed engineering duties of the molybdenum flotation plant, including a thorough analysis of the basic engineering stage, and delivering all documentation needed for procurement and construction.

During its first three years of operation, the 110-ktpd ore throughput copper and molybdenum concentrator is expected to produce 450 ktpa of collective concentrate, of which 7 percent is molybdenum

concentrate. For the remainder of its estimated 22-year life, the plant will continue processing at 190 ktpd of ore generating 790 ktpa of collective concentrate with 1.5 percent being molybdenum concentrate. That transition will require a flexible design in order to accommodate the different ore throughput to be processed from year four onwards.

“We have always believed that Hatch delivers strong engineering capabilities and expect they will fulfill their commitment to design this plant, a critical part of the project, within the tight schedule,” said Joe Tis, vice president of development for Sierra Gorda.

Equipment covered under the project includes thickeners, flotation cells, molybdenum concentrate filters, regrinding mill, dryers, packing maxi bags equipment and associated infrastructure. www.hatch.cl

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KNIGHT PIÉSOLD CHILE

Knight PiĂŠsold Chile is currently developing the detailed engineering of the tailings transport, tailings storage and water management systems for the operation of the Sierra Gorda Project. In order to address this project and comply with the expectations of Sierra Gorda, we have formed a multidisciplinary team composed of specialists from the following disciplines: civil, electrical,

instrumentation, water and tailings transport, geotechnical and geology, construction, risks, project control, quality and safety.

The strengths of our team, coupled with the collaboration and participation of the team from Sierra Gorda, have enabled us to comply with the objectives defined at the outset of the project, in terms of both the agreed upon goals and deadlines. This has resulted in a final design of the deposit that meets the highest standards of both safety and constructability.

E. santiago@knightpiesold.com www.knightpiesold.com

kghM polska MiedZ - sierra gorda project

Workers

and position strategy for the global copper where deadlines are incredibly demanding and molybdenum market. The project and shorter than the industry average.” presents the ideal opportunity to bring Of equal importance is the need to about increased resources, reserves and capture, retain and train the employees production, and ultimately raise the value required for the construction, operation and of the three companies on a global scale. development of the project. At present, over “The primary challenge at the heart of 3500 people are assisting in the construction this venture,” Luna continues, “is being able phase, with this number expected to peak at to design, procure, construct, commission and around 7000 in the near future. Once into successfully start up a large the operational stage, a total scale project for a foreign of 2000 individuals are due company, where different to be active in carrying this visions inherent to the stage of the project through. cultures of each participant As a result of internal are successfully integrated. and external factors in length of pipeline Chile, and the mining Another challenge stems from carrying sea water the fast-track status of this world in general, there is an to the project increasingly strong demand particular greenfield project

141 KM

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SIERRA GORDA: SEAWATER TRANSPORT PROJECT

BRASS Chile S.A. was contracted by Sierra Gorda S.C.M. for the Detailed Engineering of the 145 km – 36� diameter Seawater Transport with a maximum capacity of 1,500 l/s.

The pipeline utilizes a RFP Pipe at low pressure and CS at high pressure section. To enable delivery from coast to mine site at 1700 masl, 3 pump stations connected in booster mode are utilized: one at the coast and 2 intermediate. Each intermediate station has 7 high pressure pumps in parallel with 3,160 kw motor capacity each.

A chemical treatment plant with high efficiency filters are located at the first intermediate pump station. Operation is controlled through a SCADA system connected through fiber optic cables.

www.brassengineering.com

kghM polska MiedZ - sierra gorda project for qualified labour and iNGeNiería civil viceNte (icv) mining supplies, which ingeniería civil Vicente s.a. (icV s.a.) is proud to have has conspired to produce been able to participate, from the very beginning, in the an increase in prices. This sierra Gorda mining project in chile, providing earth has impacted directly on movement services for the construction of its preliminary projects that are currently platforms and infrastructure. under execution. “The the implementation of this important contract implied major logistics and engineering challenges for our company Sierra Gorda project has and its successful completion reflects the joint efforts of not escaped the effects of icV and the client, Minera Quadra chile limitada. this,” Luna highlights. “As this key milestone in icV’s history has added to our a hedge against potential company’s experience, enhancing its capacity to undertake f luctuations that could other similar projects for chile’s large-scale mining industry. impact upon project costs www.icv.cl and completion, moves have been made to commit purchase orders and contracts at the earliest stage possible.”

Northern Chile’s geog raphic characteristics, namely the scarcity of water and energy, have also raised several issues.

To overcome these, the project follows the current trend of using seawater in the mining process. This water will be carried by means of a 141 kilometre pipeline with a flow rate of 1500 litres per second. Furthermore, two industrial water supply contracts have been entered into with Aguas Antofagasta and FCAB respectively. Processed at its on-site water treatment plant, this water will be made suitable for human consumption.

Meanwhile, the power required for the project will be generated by a coal-fired thermoelectric power plant located in Mejillones. From here a 140 kilometre long, 220 kilovolt transmission line will supply energy to a primary substation that will also be located on-site.

To date, 2012 has seen the project achieve Flotation cells

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CAT shovel

kghM polska MiedZ - sierra gorda project several milestones, all of which revolve around the mine area itself. In addition to the mine loop now being in operation, March 2012 saw the start-up of the prestripping stage. Looking towards the years ahead, by the end of 2013 it is hoped that pipeline construction will be complete, plant mechanics in place and the precommissioning stage will have begun.

These events will then be followed in 2014 with the starting up of the commissioning phase, the opening of port facilities and the completion of ramp up operations.

“The project has been progressing as planned and in accordance with the schedule put in place by the joint venture partners,” Luna says. “The project’s critical path remains unchanged with originally scheduled deadlines still maintained and entry into production expected to begin during the first semester of 2014.”

As it relates to the immediate future, the goal for the rest of 2012 is to have the entire necessary infrastructure in place in order to allow the normal development of construction work. This requires the completion of camps, mesh halls, offices, recreational areas and a polyclinic. “In addition,” Luna says, “prestripping, pipeline and civil construction work in dry and wet areas have begun with our own equipment and personnel, while the project will continue to meet its expected output levels.”

For more information about KGHM polska Miedz - sierra Gorda project visit: www.quadrafnx.com

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166 | BE Monthly

china africa resources

a sign of things to come

Chief executive officer Roderick Webster explains how the company’s operation in Namibia can be a springboard to greater success for not only China Africa Resources, but its parent companies as well written by: will dayNes reSearch by: Jeff abbott

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The metallurgy of the mine is complex, with multiple product streams

china africa resources

L

ocated on the southwestern tip of these resources, it was determined that the Africa, the dry lands of Namibia estimates made within the CPR could be provide not only a home to more established and validated through the use than 2.3 million inhabitants, but of 3D modelling of the available data and to a bustling mining sector that through diamond drilling. provides approximately 25 percent of the While the metallurgy of the mine is country’s total annual revenue. The fourth complex, with multiple product streams, largest exporter of non-fuel minerals the significant advances that have been in Africa, and the world’s fourth largest made over the past three decades in producer of uranium, Namibia is also rich extractive metallurgy mean that it is in the likes of gold, tin, tungsten, copper, highly likely that any future metallurgical lead and zinc. plant will have a vastly different design, It is in the northwest of the country that process detail and recovery to that which China Africa Resources (CAR), a joint venture was previously in operation. company between ECE and The geolog ica l Weatherly International, component of the feasibility can be found undertaking study comprises shallow work on the Berg Aukas RC drilling to assess the project. An active explorer upper regions of the project, in Namibia, ECE holds 18 diamond drilling of the proportion of namibia’s exploration rights that cover deeper resources to validate total annual revenue an area of approximately and extend the historical derived from mining resource, the compilation 7146 square kilometres and of data and subsequent is the majority shareholder of CAR, owning 65 percent of the business. development of a complete 3D computer Weatherly, meanwhile, has a 25 percent model and the reporting of all resources. shareholding. Its role in the joint venture “The base strategy, as was set out is to provide all the necessary management during the early days of the joint venture,” services to CAR for an interim period. explains chief executive officer, Roderick According to a competent person’s Webster, “is for CAR to take the Berg report (CPR) carried out on the project, the Aukas project through to its feasibility historical non-compliant mineral resource and then to see if it can be developed into estimate for December 1977, just prior to the a small lead-zinc mine. To this end, we mine’s closure, indicated that significant, have been extremely busy over the last high grade, lead, zinc and vanadium year, drilling close to 6000 metres of mineral inventory remained in the ground. deep, diamond drill holes and uncovering While insufficient data previously existed a number of exciting intersections.” to properly establish the exact location of Managed by Weatherly, pursuant to

25%

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The Berg Aukas project is recognised as a very high grade mine

170 | BE Monthly

the terms of its management services agreement, the feasibility study is expected to cost $3 million over the full period.

“With the drilling phase now close to completion,” Webster continues, “we are proceeding into the metallurgical phase of the study. Upon determining what kind of flow sheet we will require, we can then complete the feasibility study. This we hope to have achieved by the end of 2013.”

Recognised as a very high grade mine, the Berg Aukas project is seen as a small, yet very profitable development. More importantly to CAR, it is an undertaking that it hopes will establish the business within the market as good, competent operators, while helping to further build on the relationship between Weatherly and ECE. “It is quite clear to us,” Webster states, “that ECE has aspirations on being a much larger player on the world stage and is actively seeking ways to achieve that goal.”

One of the ways in which ECE is doing so is by seeking partners that understand what it is like to operate in core western markets. As such, the partnership between ECE and Weatherly is very much a mutually beneficial arrangement in that the latter is quite familiar with the ins and outs of being a publically listed company on the London Stock Exchange and can claim to be experienced hands when it comes to conducting operations throughout Africa.

While the immediate focus for CAR revolves solely around the successful development of the Berg Aukas mine, its long-term strategy is to build a profitable

china africa resources

aerial Berg aukas

and widely based resource business that may ultimately include the acquisition of additional assets from Weatherly, ECE or through third parties.

“As far as the immediate future is concerned,” Webster says, “I do not see the demand for minerals diminishing, particularly with all the major global markets remaining major consumers of various metals. While it is true to say that it is becoming more and more difficult to mine these metals and that they are increasingly being sourced from countries that have a fairly risky profile, with demand still exceeding supply the mineral resources market has a strong future ahead.”

One of the possibilities for CAR in the years to come could see its parent

companies turn their attention to the potential amalgamation of a number of assets. “It is well known,” Webster concludes, “that ECE has been exploring Namibia for quite some time and boasts a number of projects that it is keen to expand upon. Together with its access to projects in China and other countries such as Australia, what we potentially envision over the course of time is a consolidation of those assets to form a much larger, successful company with a view to a full London Stock Exchange listing.”

For more information about china africa resources visit: www.chinaafricares.com

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the

As t mine ove Zimba

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Caledonia Mining Corporation

golden touch

the developments that have occurred at the Blanket gold er the last several years have proven, the government of abwe is becoming ever-more aware of the important role its mining industry can play in the growth of the nation written by: Will Daynes research by: Robbie Hodgson and Jon Bradley

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caledonia Mining corporation

Z

Zimbabwe’s terrain is among the most productive of its kind in the world

imbabwe is, by its own admission, a gold country. In terms of gold yield per square kilometre, the country’s Archaean terrain is among the most productive of its kind in the world. In fact it has been estimated that from the seventh century through to the start of the 20th, when modern mining activity began, some 700 tonnes of gold was mined in what would have been a very crude fashion.

While Zimbabwe does boast a long mining history, many areas still remain that have yet to be scientifically investigated.

Furthermore, many of the modern exploration techniques that have proven to be the catalyst for significant finds elsewhere throughout the world are yet to be adopted by companies operating within the country.

What this does do, however, is provide a number of exciting opportunities for those that do decide to invest in the exploration of Zimbabwean gold.

One such entity is Caledonia, a Canadian registered mining and exploration company with several assets across Southern Africa, including the Nama cobalt-copper project in Zambia, the Rooipoort and Mapochsgronde platinum-nickel projects in South Africa, and the Blanket gold mine in Zimbabwe.

Blanket gold mine is wholly owned and operated by Caledonia’s subsidiary company, Caledonia Mining Corporation, which acquired the mine in April 2006 from Kinross Gold Corporation. Operating at a depth of approximately 800 metres, Blanket is a well-established mine that currently has a production capacity of 40,000

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BARLOWORLD POWER Barloworld Power is a registered entity within the multinational Barloworld Limited Group.

We are a distributor of leading international brands, providing integrated power, rental, fleet management, product support and logistics solutions. The company was founded in 1902 and has been one of the largest leading Caterpillar dealers for 85 years.

Based in South Africa, Barloworld Power is a leading provider of engineered solutions in the mining sector for custom designed prime and standby electrification solutions driven

by Caterpillar’s extensive proprietary suite of diesel, heavy fuel oil and gas generator engine configurations.Today Barloworld Power’s Cat territorial responsibility encompasses 11 countries in southern Africa, in addition to its dealer coverage in Portugal, Spain, Siberia and

the Russian Far East. Our design teams work side-by-side with our mining clients to develop an optimised package. In some cases, the specification caters for back-up power, and in others, where no grid connection is available, 24/7 continuous operation. For independent power producers (IPPs), Barloworld’s project scope extends to include Cat power stations that serve as dedicated plants to meet private sector as well as public utility needs.

Barloworld Power manufacturers its own low voltage switchgear and synchronisation panels. These are integrated to form a seamless changeover for medium and heavy voltage systems during transition to and from grid connections, where applicable.

For more information visit www.barloworldpower.com

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Show the world what your company has to offer with our tailored packages

Seen www.bus-ex.com

caledonia Mining corporation

Zimbabwe boasts a long mining history

production capacity from 24,000 ounces of primary crushers. Meanwhile, below-ground gold per annum to 40,000 ounces. works have commenced with the shaft being Recent undertakings have focused concrete lined from its surface collar, down to predominantly on a similar programme a depth of 90 metres, and a surplus mill has involving the upgrade of the mine’s No.4 also been refurbished and installed within shaft and the milling section of the plant, the mine’s metallurgical plant. while at the same time maintaining the During the course of October 2011, the mine’s production levels. To date, surface Blanket gold mine was the recipient of two work on the shaft has been completed, as prestigious safety awards following an audit has the construction of on its occupational safety the winder house and the and health (OHS) policy and installation of a 650 kilowatt procedures by the National winder therein. Other works Social Security Authority (NSSA). This audit also undertaken include the fabrication and installation of covered the mine’s training Ounces per annum a 40 metre high headgear, a and management systems. production capacity of the Blanket mine As a result of the findings 120 metre overland conveyor system and a series of made by the NSSA, Blanket

40,000

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“Caledonia Mining Corporation has identified future growth as coming more from organic expansion, as opposed to acquisitions� gold mine was awarded the gold medal in the mining and quarrying sector in Matabeleland, as well as the bronze medal across all industrial sectors in Zimbabwe.

In June 2012, Caledonia Mining Corporation announced the signing of an agreement with the National Indigenisation and Economic Empowerment Fund (NIEEF) to transfer 16 percent of the Blanket gold mine. At the same time it

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revealed it had been awarded a Certificate of Compliance in accordance with the Zimbabwe Indigenisation Act. The conditional agreement signed for the sale of the 16 percent stake in the mine is valued at $11.742 million in accordance with the Memorandum of Understanding (MoU) that was signed with the Zimbabwean government in February 2012. This previous agreement will see indigenous

caledonia Mining corporation

the company intends to increase Blanket’s production levels significantly in the years to come

Zimbabweans acquire 51 percent ownership of the Blanket mine for a paid transaction value of $30.09 million.

Further terms of the MoU include an agreement for the sale of 15 percent of the mine to a consortium of indigenous Zimbabweans for a consideration of $11.008 million and an agreement for the sale of ten percent to the Blanket Mine Employee Trust, a body established for the benefit of both present and future employees of the mine, for $7.339 million. Additionally, ten percent of Blanket is to be donated to the Gwanda Community Share Ownership Trust, which has been established for the benefit of the local community.

For the year ending 31 December 2011, Blanket gold mine’s unaudited revenues

and profit, after tax, were recorded as $56.6 million and $19.2 million respectively. In looking to the future, Caledonia Mining Corporation has identified growth as coming more from organic expansion, as opposed to acquisitions. Accordingly it is focused solely on developing existing projects and addressing its properties with a view to increasing its reserves and resources. Depending on the outcome of its forthcoming exploration and feasibility studies, the company intends to increase Blanket’s production levels significantly in the years to come.

For more information about caledonia Mining corporation visit: www.caledoniamining.com

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Top of the Chief executive officer Harri Natunen explains how the company is using bioheapleaching technology to get the most from its low grade nickel deposits written by: Will Daynes research by: Jeff Abbott

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Talvivaara Mining Company

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T

hough it is perhaps not the first country that one associates with the industry, Finland’s mining history in fact dates back to 1540. Today the raw material base for its metal industry is made up from the exploitation of nickel, copper, cobalt, zinc and lead ores, as well as chromium, vanadium and iron deposits.

Located in Sotkamo, in the east of the country, Talvivaara boasts two metasedimentary hosted, low grade nickel sulphide ore bodies, Kuusilampi and Kolmisoppi. Originally discovered by the Geological Survey of Finland in 1977, the deposit was at first deemed to be too poor for existing technology. It was determined at this early stage that the only process that would be capable of concentrating the nickel enough would be bioheapleaching, a technology which, at that point, remained untested in such a scenario.

Obtained by Outokumpu Corporation, the mining rights were eventually sold to one of its former employees, Pekka Perä. It was Perä’s purchase of the rights that gave birth to the Talvivaara Mining Company in 2004.

Today an internationally significant base metals producer, with its primary focus on nickel and zinc, the company’s Kuusilampi and Kolmisoppi deposits are now recognised as comprising one of the largest known sulphide nickel resources in Europe. Their combined contents of 1.1 billion tonnes of ore, in measured and indicated categories, are thought to be sufficient to support extensive production levels for several decades to come.

Talvivaara supplies metal intermediaries

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Mine site

Talvivaara Mining Company

to companies with metal refining operations.

Arguably its most important contract to date is the ten year off-take agreement it has entered into with Norilsk Nickel Harjavalta.

This agreement involves the delivery of the entire output of the mine’s nickel and cobalt production at market prices. A similar long-term partnership was established in November 2010, with the company entering into a zinc concentrate streaming agreement with Nyrstar NV. The terms of this contract involve the delivery of all of Talvivaara’s zinc concentrate to Nyrstar up to 1,250,000 metric tonnes.

“What makes the work we carry out unique,” explains chief executive officer, Harri Natunen, “is the fact that we apply

Dumpers

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bioheapleaching technology to extract nickel from the ore.” Commonly used in copper processing, particularly in Central and South America, bioleaching is a process in which metals are leached from ore as a result of a bacterial action. Triggered spontaneously by micro-organisms in the presence of air and water, commercially applied bioleaching technologies replicate the same natural phenomenon, but accelerate the process in order to speed up metal recovery.

“What we do is,” Natunen continues, “we mine the ore, crush it down in four stages to a size of minus 15 millimetres and then utilise a process of agglomeration using a pregnant leach solution.” After the agglomeration process the ore is conveyed and stacked

talvivaara Mining coMpany

“the coMpany’s kuusilaMpi and kolMisoppi deposits are recognised as coMprising one of the largest known sulphide nickel resources in europe” eight metres high on the primary heap pad to undergo one and a half years of bioheapleaching. The heap pad is equipped with piping and laid on the bottom of the pad, through which low-pressure fans supply air to the stacked ore. From the top, the heap is irrigated with leach solution, which is recycled through the heap until its metal content is sufficient for metals recovery.

Following its time on the primary pad the leached ore is then reclaimed, conveyed and re-stacked onto a secondary heap pad, where it is leached further to recover metals from those parts of the primary heaps where the leach solution couldn’t previously penetrate. After secondary leaching, the barren ore remains permanently on the secondary heaps.

“The total leaching process,” Natunen says, “takes approximately five years, at which point the pregnant solution is collected, with the majority being pumped to a metals production plant where it is infused with hydrogen sulphate. These materials are precipitated as sulphites and then, through a combination of dewatering, thickening and filtration the final product is processed ready for delivery.”

Bioheapleaching was chosen as the preferred technology for the Talvivaara mining project based upon its favourable capital and operational cost profile. A low cost process requiring only air, sulphuric acid, water and microbes to work, bioheapleaching has lower capex and opex than traditional grinding and flotation processes. It is also widely recognised as a cleaner and more environmentally friendly process.

The concept of responsible mining exists

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throughout Talvivaara’s business operations and incorporates three dimensions of corporate social responsibility, these being economic, environmental and social aspects.

Across its operations the company seeks to meet the challenges associated with achieving sustainable development.

The primary objective of Talvivaara’s environmental management is to ensure the sustainable and economical use of natural resources, while at the same time minimising any adverse effects on the environment that could be caused by its mining operations.

From a social perspective, the company is equally as committed to the development of its employees, encouraging them to acquire

and develop the necessary professional skills.

“In all that we do,” Natunen states, “our aim is to be a pioneer within the mining industry. As a young company we have had the opportunity to develop responsible best practices from the offset, while introducing environmentally efficient technology at every possible turn. As a result of a combination of an eco-efficient metals recovery process, the very best new technology, an advanced operating environment, and a high level of expertise, we are in a prime position to be able to grow into our desired role of being a leading player in responsible mining.”

Today, the company finds itself on the cusp of making its first test delivery of copper

“Perä has created a company that has incredible potential and the ability to increase its production levels”

Stacker

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talvivaara Mining coMpany

the company is in the construction phase of a uranium recovery plant

concentrate, marking another milestone in its short history. In addition to this, Talvivaara has recently entered into a co-operation agreement with Cameco, one of the world’s largest publically traded uranium companies.

This partnership will allow Talvivaara to make use of the uranium by-product which is created during the bioheapleaching process.

Furthermore, the company has entered into the construction phase of its building of a uranium recovery plant. This project is expected to be completed during the first six months of 2013 and will create an additional revenue stream for the business.

“When Pekka Perä first set about developing this operation,” Natunen says, “he worked especially hard to bring together a group of individuals that boast experience

and expertise in different areas of mining, as well as those that specialise in the use of bioheapleaching. In doing so he has created a company that, while still in its ramp-up phase, has incredible potential and the ability to increase its production levels, and achieve the cash-cost position it is targeting. What Perä has managed to do in such a short space of time is already a wellrecognised achievement here in Finland, and I’m sure it will only continue to garner the attention of the mining world as a whole as time passes.”

For more information about talvivaara Mining company visit: www.talvivaara.com

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dorce holdinG

building a better

wORLD A global business in every sense of the word, DORCE plans to build upon all that it has achieved to date.

Deputy general manager Dr. Ferzat Mercan discusses how it intends to do so written by: will dayNes reSearch by: will Kirby be monthly | 191

Fujairah Housing Project UAE

dorce holding

T

he legacy of DORCE as a structural works, DORCE also conducts company can be traced back to all manner of engineering tasks required 1982, with the founding of parent for civil and electro-mechanical works on company, ALÇE Prefabricated site. “In addition to its contracting services, Steel Construction Industry and DORCE also owns one of the largest Trade. What began as a small workshop prefabricated, steel structure manufacturing operation based in the Turkish capital of facilities in the world.

Ankara producing minor steel construction “As the many hundreds of projects that works and steel furniture, quickly evolved have been successfully realised over the years to become a key supplier of prefabrication prove,” Mercan continues, “we have always steel structures to some of Turkey’s biggest been a company that embraces innovation. construction companies.

Nevertheless, what I would identify as The foundations on which DORCE was DORCE’s most important characteristic is built truly began to take shape prior to its its ability to work quickly and effectively establishment in 1989 when under even the most difficult its owners purchased ten of conditions.” acres of land in Saraykoy In destinations across the on which they built its globe DORCE has been able to realise projects under not factory. Initially employing 40 people, it was only five only intense geographical construction sites years later, in 1994 that environments, but also being simultaneously the company began to in the face of man-made managed at present expand internationally. conditions such as political “As of today,” states deputy instability and civil war. “At general manager, Dr. Ferzat Mercan, “we present,” Mercan states, “we have several are a holding that simultaneously manages large construction projects under way in 32 on-going construction sites in four Iraq. At the same time we continue to take continents. From our 13 branch offices on work in a number of other countries and agencies we manage more than 550 that present complex political and natural engineers and technical supervisors, and conditions, including Sudan, Niger, Nigeria and Mauritania.” some 3500 workers.”

DORCE provides engineering, Africa is certainly becoming an ever procurement and construction (EPC) increasing source of work for DORCE, with services for projects that require high the company involved in four on-going EPC quality solutions to operate in extreme and design and build projects. In Mauritania environments. While providing these it is carrying out the 8400 person, Tasiast services to projects that encompass residential village project for mining workers conventional construction and steel and engineers as well as a pre-engineered

32

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process buildings and concrete office building project. Meanwhile in Guinea DORCE has temporary construction camps being established in 23 different locations and in Niger it is undertaking work on the Imouraren Uranium Plant worker camp project. Such projects are executed through its sub companies and branch offices. These assets have helped contribute towards successful operations in the likes of Algeria, Libya, Equatorial Guinea, Morocco, Cameroon and Democratic Republic of Congo.

“Africa is a very important market for us,” Mercan explains, “primarily due to its vast amount of natural resources such as oil and gas and minerals. Across the continent one will find numerous developing countries that are embarking on large construction projects involving mass housing, industrial

facilities and other infrastructure projects.

On top of this, many of the world’s leading oil and gas, mining and construction companies operate in these developing nations and that makes Africa a huge market for DORCE.” At the heart of the company’s African growth strategy is an advanced expansion execution plan that encompasses three core themes, those being local manpower, local procurement and local services. When undertaking projects in Africa, DORCE prefers to use local resources as much as possible. “DORCE has always subscribed to the idea of improving local employment and of utilising local manpower,” Mercan enthuses. “Through the appropriate training we integrate local workers with our own qualified personnel and construction technology.”

Similarly, DORCE prefers to utilise local

The 8400 person, Tasiast residential village project for mining workers and engineers in Mauritania

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dorce holding

“dorce’s Most iMportant characteristic is its ability to work quickly and effectively under even the Most difficult of conditions” procurement means and local services when undertaking work in Africa. “When we are awarded a new project,” Mercan says, “basic services that we require to take place at the project site are often provided locally. Such services include the maintenance of tools and the providing of water and electricity, while the personal needs of our employees are sourced from local markets. What our local supply and recruitment business model does is to enable low income individuals to develop themselves and their abilities.

This is something we are understandably proud of.”

What it can be equally proud of is the safety excellence award that was presented to DORCE Prefabricated Building and Construction Industry Trade for completing five million man-hours without any accident or incident during its Tasiast project, which in on-going in Mauritania.

During the first week of December the company will be turning some of its focus to London where it will be exhibiting at the Mines and Money Exhibition. “We believe this event to be the most important for the global mining industry,” Mercan says, “providing a huge opportunity for companies to promote their own innovative products and services. We exhibited there in 2011 and found it to be a hugely beneficial experience indeed.”

With the vast majority of the major decision makers in the mining world expected to attend, Mercan clearly has high hopes for this year’s exhibition. “Our fundamental goal over the course of the five days is to highlight the importance of prefabricated and steel building systems to potential mining customers. Furthermore we intend to spread the word about our own ability to operate in extreme conditions and under the

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Pre-engineered steel process buildings and concrete office buildings, Zouerate, Mauritania

dorce holding strictest of government regulations.”

If you take a tour through DORCE’s production facilities you will find that the world’s leading manufacturing technologies are being used on a daily basis. “It is unquestionable that as technological developments continue, we will follow these and be one of the first parties to put new innovations to use,” Mercan says.

Additionally, the company is aiming to further draw attention to its contracting abilities. Today in Iraq DORCE is involved in a public housing turnkey project that consists of 1416 houses and 11 social facilities.

At the same time it has 20 on-going vehicle station projects underway in 18 Iraqi cities and has recently signed a contract with the government of Basra to construct a reinforced concrete university hospital.

“As we continue to grow,” Mercan concludes, “South America and Australia are also becoming two of our newest target markets, with serious steps having been taken to establish a visible presence there.

We already have four hospital projects under way in Venezuela and these will be an important reference point as we aim to capture new business opportunities.

Between our growth in new markets and the increase in projects we expect to see coming from the mining sector, we feel that the future is very bright for DORCE indeed.”

For more information about Dorce Holding visit: www.dorce.com.tr

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written by: Will Daynes research by: Richard Halfhide

Going for go 198 | BE Monthly

old

minera florida: yamana chile

The Minera Florida mine continues to grow and evolve, 26 years since operations commenced be monthly | 199

Minera Florida is an underground gold and silver mine that began operations in 1986

Minera florida: yaMana chile

V

ery much a pillar of Chile’s Located 73 kilometres south economy, the country’s of Santiago, Minera Florida is an mining sector has played an underground gold and silver mine that important role throughout began operations in 1986. Commencing the history of a nation that production at a processing rate of 10,000 came into being some 10,000 years ago tonnes per month, the mine developed when migrating Native Americans settled rapidly in the subsequent decades with in the long and narrow coastal strip of land this rate increasing to 35,000 tonnes per that lies between the Andes Mountains month by 2003. Purchased by Meridian Gold from a private Chilean company in and the Pacific Ocean.

While the Spanish conquistadors that July 2006, the mine was subsequently arrived and took possession of the region absorbed into the Yamana Gold company in the middle of the 15th century came little more than a year later. up short in their hunt for the extensive For its part, Yamana Gold boasts a reserves of gold and silver diverse portfolio of assets, providing sustainable gold that they believed to be under Chile’s soil, the event production, supported by a large resource base. in many ways marked the With operations in some dawn of Chile’s mining of the world’s most stable legacy. Several years after increase in total mining jurisdictions, gaining independence from gold equivalent Spain in 1818, commercial including Brazil, Argentina reserves in 2011 relations between the and Mexico, Yamana Gold also operates with country and the rest of the world were formally established, kick- industry-low cash costs. Taking into starting the significant exploitation of account expansions across all of its minerals such as silver and copper. current operations and projects that are Most mining in the country is today under development, the company’s concentrated in and around the Norte production volume is expected to increase Grande region, which spans much of by more than 60 percent to a level of the Atacama Desert. Mining products of approximately 1.75 million gold equivalent Chile include copper, gold, molybdenum, ounces by 2014. iron, coal and silver, of which Chile is In 2010, workers at Minera Florida the world’s fifth largest producer. Gold is uncovered an extremely high grade mainly produced as a by-product from the Victoria vein structure. This discovery has country’s many copper mining operations, since led to the company adding to previous with approximately 1.5 million ounces exploration success and has increased produced per year. grade and total mineral resources of gold

28%

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Total solutions for each company FOOD AND CATERING CLEANING AND GROOMING HOTEL, HOUSEKEEPING COFFE SHOP AND SNACK BAR COURIER AND POSTBAG RECREATION AND LEISURE

www.aliservice.cl contact (56 2) 913 5500 comercial@aliservice.cl

FOOD AND

TO TA L

SERVICE

Minera florida: yaMana chile to over 842,000 proven quiMetal and probable ounces Quimetal is a well-known chilean company with over and a further 529,000 60 years of experience in fabrication and commercialization measured and indicated of specialized chemical products used in various industries ounces. Levels of silver worldwide. For the mining industry, Quimetal offers sodium meanwhile have increased bisulfite and sulfur dioxide (so2), manufactured only with to 6.3 million proven selected raw materials and produced under the highest quality standards. and probable ounces and comercial@quimetal.cl 2.8 million of measured and indicated ounces.

Combined, this provides the mine with an estimated strategic life of over eight years, according to Yamana Gold.

More good news followed a year later with total gold equivalent mineral reserves at the mine increasing by 28 percent over the course of 2011. This was largely due to the inclusion of historic tailings, which would go on to be re-processed in April 2012. It is believed that these tailings will ultimately add around 40,000 gold the mine has an estimated strategic life of over eight years equivalent ounces per year to the mine’s production volumes over aliservice the next five years. aliservice is responsible for catering services to Yamana Gold New mineral resources mine located in alhuÊ, chile. to ensure the health of employees outlined in the main core of and collaborators, these services are produced under strict the mine during 2011 also observance of the highest hygienic and safety standards. contributed significantly a carefully planned operation is established to provide to a 46 percent increase continuous service throughout the year. the varied and in its total measured nutritionally balanced daily menus, including national and and indicated volumes. international dishes, are served in attractive and modern dining facilities. the logistic support combines highly Over the course of 2011 qualified central resources with local employment, allowing near-mine exploration for development of nearby communities. focused predominantly today, aliservice’s capacity to provide integral services to on delineating extensions clients along the country, cover most remote and distant to the ore bodies in the operations - from isla de pascua to tierra del Fuego.

Portzuelo, El Robie and www.aliservice.cl Tribuna zones. During

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Original discovery teams are still involved in exploration and development

2012, exploration has extended to the company’s newly acquired Mila claims, situated five kilometres south of the current mining operation.

Several other developments at Minera Florida have grabbed the headlines in recent months including the construction of a new re-process tailings facility and the large investments that have been made in new power generation facilities.

The diesel-fired plant will optimise the power supply for a $56 million project to process old tailings at the operation. The new power plant will ensure operational continuity at the tailings processing plant as well as independence from the country’s Central Interconnected Grid.

Minera Florida’s tailings re-treatment plant was completed in May 2012, with ramp up to design capacity delayed in

“During 2012, exploration has extended south of the current mining operation to Yamana Gold’s newly acquired Mila claims” 204 | BE Monthly

Minera florida: yaMana chile

construction in progress

exploration drill holes

part due to the installation will be augmented by the ramping up of the of a zinc recovery plant that was not initially processing of relatively lowcontemplated. The zinc cost historical material. recovery plant is expected Internally, the recently strengthened leadership to further improve costs Of proven and probable team that has been through the application gold reserves within established at senior of add it iona l zi nc the mine by-product credits. management level in Chile Overall costs meanwhile continues to focus on the are expected to improve mine’s operations, making when taking into account the addition the expansion and success of Minera of tailings production given the lack of Florida their utmost priority. mining costs associated with the process of re-treating tailings. In the months to For more information about come, it is believed that mine grade will Minera Florida: Yamana chile visit: remain consistent with Yamana Gold’s www.yamana.com estimates, while overall site performance

842,000 ouNces

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206 | BE Monthly

okd

solid as A ROck Operations at one of Europe’s largest coal producers are underpinned by strong customer relationships, the continued implementation of topclass training and safety measures, and solid revenues and reserves written and reSearched by: ricHard HalfHide

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Klaus Dieter-Beck, CEO

okd

C

oal represents the Czech Republic’s only significant indigenous energy resource; and as such, its importance to the economy in relation to export revenue and employment cannot be understated, and is as crucial today as it has been for the last two centuries.

OKD operates as a subsidiary of New World Resources Plc (NWR), headquartered in the Netherlands and one of Central Europe’s leading hard coal and coke producers. As well as OKD, NWR also owns OKK Koksovny, a.s.

(OKK), which is Europe’s largest producer of foundry coke. The company is listed on the London, Prague and Warsaw Stock Exchanges and can also be found on the FTSE 250 Mining Index.

Today, OKD produces coking and thermal coal, mainly for the steel and energy sectors, and is the only producer of bituminous coal in the Czech Republic. As such, it represents both the history and the future of this most traditional of industries. A nod to the past is hard to ignore: generations of men have mined the same area in the OstravaKarviná, in the east of the country.

“We are mining in old infrastructure: some of the shafts are close to 100 years old. The new shafts are 25 years old, but on average each is 40 to 50 years old,” says OKD’s CEO, Klaus Dieter-Beck.

The current operations of OKD are split between four operating mines. The Karvina and Darkov mines are the largest sites, with Karvina holding the title of the largest deep mine in the Czech Republic.

The CSM mine in Stonava and Paskov

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Show the world what your company has to offer with our tailored packages

Seen www.bus-ex.com

okd mine in the Staric area of Ostrava make up the other cantoni Motor s.a. offers a full range of motors from operating sites which when 0,04kW up to 5000 kW – standard and special application pooled together, offer a motors: high voltage motors, explosion-proof motors, brake total reserve of about 200 motors, single-phase motors, motors for fans, slip ring million tonnes. It is not just motors, crane motors, motors with foreign cooling, marine the age of these mines that motors, traction motors and high efficiency motors ie2, ie3 and Nema premium efficiency. creates a challenge to those www.cantonigroup.com who work at them but also the diverse nature of the geology, as Beck explains. “Our seams range from 80 centimetres up to almost eight metres in height, which poses its own challenges. Each year we go deeper and deeper. We are currently close to 1,000 metres, and it’s here that we face additional technical challenges in terms of air conditioning and rock pressure. In fact, we are in one of the most bounce-prone areas in the world.”

In many people’s eyes, coal mining still conjures an image of pick hammerwielding men with coal dust-covered faces, but today this could not be further from the truth. OKD has embraced the future and is rightly regarded as a truly modern company, utilising and often designing the latest technologies. Within the modern coal mining industry the greatest investments are generally split between new innovation

caNtoNi Motor s.a

€200 MillioN Okd’s average annual cApEx Mining machinery in use

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for performance or for safety, although the two are intrinsically linked. If maximum efficiencies are to be realised, it is imperative that continual improvement be the watchword. This is not lost on Beck. “We are investing permanently in new equipment, spending on average €200 million each year in CAPEX. This brings in new levels of technology for our investment programme, and it will also help develop new coal field access in the future. Our level of investment

today has tripled from six or seven years ago, when I first came here.”

It is clear that OKD’s investment strategy has led the company into a bright and ambitious new era. Despite the rise of alternative forms of energy in some countries, coal remains the only viable energy source for both the energy and steel sectors in this area of Eastern Europe and this is something that will not be changing any time soon. By Beck’s own admission,

“Our level of investment today has tripled from six or seven years ago, when I first came here” 212 | BE Monthly

okd

the company invests heavily in safety programmes

“the long-term outlook six or seven years ago was not so bright, but there is now a different perspective. There are huge resources here: last year we exceeded 11 million tonnes again and we plan for the next 20 years to mine coal.”

One of the main foundations that enable OKD to plan for a profitable future lies in its relationships with its customers, which have been forged over many years. A key advantage that OKD’s operation has over many of its rivals is that it mines coking coal for the steel industry and thermal coal for power in equal measures, thus creating a more flexible supply model.

The companies it supplies represent some of the major blue chip organisations in

the region, all located within an excellent logistical infrastructure—companies such as Arcelor Mittal, Moravia Steel, US Steel, CEZ, ThyssenKrupp and voestalpine.

The latter recently granted OKD with an award in recognition of the relationship the two companies share, as Beck explains: “We were rewarded for being their Supplier of the Year. They know we deliver on time; and they are pleased with the quality. We talk, we meet, and we quickly eliminate any problems that arise.

After safety, the customer is our number one priority.” Beck speaks of simple and honest principles but there is no doubt that they are a recipe for success.

As Beck makes clear, the issue of safety

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should always be the main concern for any modern day mining house. This is especially true when mining underground to the depths witnessed at OKD’s properties. The company invests heavily in programmes to minimise the risk of accident and injury, one of its major initiatives in recent times being ‘SAFETY 2010’, which focused on providing all staff with the very latest personal safety gear including hi-visibility

work wear, personal lamps and detection devices—vital for the rescue of workers should an accident occur.

OKD is also well known for its Productivity Optimisation Programme (‘POP 2010’).

Between 2008 and 2010, POP 2010 saw OKD mines equipped with the most sophisticated gateroad and longwall technology, worth nearly CZK10 billion. All underground coal mining might be hazardous if not properly

“there are huge resources here: last year we exceeded 11 Million tonnes again and we plan for the next 20 years to Mine coal”

operations underground

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okd

Mining machinery in use

managed; but the workforce at OKD face additional challenges specific to the region, which are bounces related to the extraction of coal seams in connection with sandstone layers in between.

The fact that such natural geological conditions occur in this part of the world holds OKD up as an example to the wider coal mining community. Beck explains that OKD is not ‘shy’ when hiring expert consultants in the fields of rock mechanics, process improvement and training related to safety and new technologies. The unique conditions also mean that many international manufacturers approach OKD to request their equipment be tested in the extreme conditions of its mines, in the

knowledge that should equipment perform well here, it will do so anywhere else: a true testament to the workforce of OKD and the results it achieves.

Under Beck’s leadership, the short and medium term outlook for OKD is secure and it seems that everything is in place.

“We have solid customer relationships, an experienced and knowledgeable workforce and management team, a solid reserve and solid revenues every year—what else could you want?” he concludes.

For more information about oKD visit: www.okd.cz

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cOnsOlidATing purchAsEs Fero and Deltaflex have joined forces to become the largest exporter of ground support in Western australia, and are now expanding into africa

W

estern Australia’s Perth might be one of the world’s most isolated large cities, but it is at the very hub of the world’s underground mining industry. Fero Group is at the heart of this vibrant industry by manufacturing and supplying the complete range of products that an underground mine would need to purchase to operate.

Fero, a privately owned-andoperated Australian business, is finding that remote mine sites across the globe want to consolidate their purchases, save time and create logistic savings when purchasing ground support and accessory type products. Fero and Deltaflex have joined forces to deliver the heavy ground support on the bottom of the load then pack all the light

216 | be directory

type volume such as poly pipe and ventilation ducting on top. This has enabled both Fero and Deltaflex to be the largest exporter of ground support in WA. Fero will open a new manufacturing facility in Queensland to manage all of its ground support volume on the East Coast of Australia plus Asia-Pacific and the American regions.

In line with the company’s growth strategies Fero will open a new office in Johannesburg in January 2013.

Group sales manager Philip Martin said, “Due to the growth in West Africa mine sites we supply we wanted to base our technical staff closer to the action and Johannesburg is the hub of African mining. I see this as the start for us in Africa and see other offices opening up as we start to partner with various mine sites who want Fero & Deltaflex to hold

fero GrouP

stock in their respective countries.�

Fero designs and manufactures in-house in Perth using Australian hot roll coil made by Bluescope steel, along with other Australian products. Fero is no stranger to underground mining and the Australian construction industry.

With more than 40 years of trading, Fero has been offering professional and competitive services, extensive industry knowledge and experience, superior quality, innovative solutions, attention to detail and efficient turnaround times. Fero is a national and international manufacturer

and supplier of superior quality steel products. Its anti-corrosion services are critical to WA’s mining, construction, infrastructure and marine industries.

fero GrouP 44 chisholm crescent, Kewdale Western australia 6105 t +61 8 9453 0000 DD +61 8 9453 0032 F +61 8 9453 0050 M +61 433 330 166 e philip.martin@fero.com.au www.fero.com.au

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flip-flOw, wAY TO gO Hein, lehmann canada sells and services the liwell® Flip-Flow screening Machines

F

or many years the LIWELL® FLIP-FLOW machines have classified difficult to screen feed materials in mining applications such as hard rock mines, (reducing the crusher discharge to a feed size before the mill), coal, coal slurry, coke, petrol coke, crushed dolomite and limestone, iron ore, salt and potash, slag and aluminum slag, silica, and sand, gravel and ores.

All LIWELL® screening machines operate on the unique “Flip-Flow” principle. No other machine uses it.

The outer and inner screen boxes move against each other in a linear motion, driven from a single shaft with excenters at approximately 600 rpm. The opposing action tensions and releases the special screen mats.

The change in shape of the apertures and the high forces will dislodge particles before they peg.

218 | be directory

The machine itself is subjected to only 2–3 g, while the material being screened is exposed to acceleration of about 50 g. The screen deck operates free from blinding or plugging, even with difficult materials. Conventional circular or linear motion screen machines generate significantly less force at 3g to 6g.

LIWELL® machines continuously operate without additional cleaning, yield uniform results, and use low wear polyurethane screening mats.

These high efficiency screening machines will provide you with the highest technical standard with very low operating costs.

Different types and designs of LIWELL® machines and screen mats provide a solution for any difficult screening application. As well as the single deck LIWELL®, we have a double deck LIWELL® machine that can add flexibility in product

HeiN, leHMaNN caNada

development. The KT LIWELL® has a conventional top protection deck, on which we can install any screening system such as perforated steel, modular rubber or polyurethane systems. In conjunction with the LIWELL® “Flip-Flow” bottom deck, this machine can make short work of your screening objectives. Our LIWELL® machines can be mounted on a trailer with ancillary equipment such as a feed bin and conveyors to make it a mobile answer to your operation.

With Hein, Lehmann you will

receive customized solutions, complete design and assembly, technical support before, during and after start-up, as well as after-sales support and service with assured supply of spare parts.

HeiN, leHMaNN caNada iNc. 4395 Fraser street, ste. 130 Vancouver Bc, V5V 4G4 p (604) 879-3804 F (888) 809-3022 www.heinlehmann.ca

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A comprehensive guide to the largest investment project in the history of Madagascar

special report: ambatovy

special report: ambatovy

236

224 ThE prOjEcT fAcT guidE

Facts & figures relating to the Ambatovy mining project in Madagascar, from stakeholder involvement to community commitment.

230 ExEcuTiVE insighT

230

258

Marc Plamondon, president of the Ambatovy project, talks about reputation, motivation, and Jimi Hendrix.

236 A wEAlTh Of OppOrTuniTiEs

Ambatovy has invested US$5.5 billion into its major nickel/cobalt mining project on the island of Madagascar, bringing with it jobs, economic benefits and infrastructure improvements.

258 lOcAl OppOrTuniTiEs

The Ambatovy project is committed to providing jobs for local people, contracts for local companies, and training them for a sustainable future.

222 | special report

contents

284

284 An EngAging ApprOAch

Ambatovy commits to operating sustainably throughout the life of the project and beyond, for the benefit of the country and its communities.

308 rEspEcTing culTurAl hEriTAgE J.A. Rakotoarisoa and Erick Randrianasolo discuss the discoveries made by Ambatovy’s archaeological programme.

314 ThE EnVirOnMEnTAl iMpErATiVE

308

The entire Ambatovy project is located in a biodiversity hotspot in Madagascar, so the minimisation of its impact and the restoration of the mine site are interlinked.

314 special report | 223

the project 40% 27.5% 27.5% 5%

lEndErs The project has required a great deal of financial traction to get off the ground.

Ambatovy has received US$2.1 billion in debt financing from 14 lenders. This consortium includes government-sponsored export credit agencies, international development banks,

224 | special report

shArEhOldErs Ambatovy is a US$5.5 billion enterprise held by four shareholders: Sherritt International Corporation, the project’s operator, which owns 40 percent of the shares; Sumitomo Corporation and Korea Resources Corporation, each holding 27.5 percent stakes; and SNC-Lavalin Incorporated, the project’s engineering contractor, which owns 5 percent.

and commercial banks from around the world. Ambatovy’s financing arrangement was named the “Europe, Middle-East and Africa Mining Deal of the Year” in 2007 by Project Finance International and represents the largest-ever project financing in sub-Saharan Africa.

aMbatovy

t fAcT GUIDE sTAndArds Under the terms of the lending agreement, Ambatovy is required to adhere to stringent national and international standards for environmental management, social engagement, and other business practices.

These standards include the Equator Principles and the World Bank Group’s International Finance Corporation Performance Standards. Ambatovy is audited several times per year by thirdparty experts who report to the lenders.

ThE MinE Ambatovy’s mine site is located near Moramanga, a city 80 kilometres east of Madagascar’s capital city, Antananarivo.

The mine is located in the central highlands of Madagascar and is connected by a 220 kilometre underground pipeline to a processing plant just outside Toamasina, the country’s main port city.

Nearly 22,000 lengths of 60 centimetre pipe were welded together to construct the pipeline, which is able to carry over 800 tonnes of slurry per hour.

When fully operational, Ambatovy will have the capacity to produce 60,000 tonnes of finished nickel, 5,600 tonnes of finished cobalt, and 210,000 tonnes of ammonium sulphate fertiliser annually over its 30 year life.

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aMbatovy cOMMuniTY cOMMiTMEnT The operational phase is expected to provide long-term employment for 6,000 people, with 2,500 directly employed by Ambatovy and 3,500 by the contractors.

In 2008, Ambatovy’s Local Resources Development Initiative evolved into ALBI, the Ambatovy Local Business Initiative. ALBI was created to fulfil Ambatovy’s commitment to a ‘buy locally, hire locally’ policy.

Ambatovy had signed more than $1.2 billion in local contracts by the end of 2010. In 2011 alone, Ambatovy spent $220 million on local purchases. More than 500 SMMEs across 54 sectors have been awarded purchase orders by Ambatovy; meanwhile, ALBI has more than 2,000 local businesses registered in a database used by Ambatovy and its sub-contractors.

The Business Training Centre, located in Toamasina, is a collaborative effort between Ambatovy, the International Finance Corporation (IFC) and Training Management Africa (TMA).

In 2010 Ambatovy began a collaboration with UNICEF to finance the Contract for School Success programme (Contrat Programme de la Réussite Scolaire, or CPRS).

hEriTAgE Ambatovy’s archaeological team has discovered 96 key archaeological sites and collected more than 4,500 artefacts.

Between 2005 and 2010 in areas between Moramanga and Toamasina the team found 4,207 clay potteries and 192 imported ceramics. Among the 262 cultural heritage sites catalogued were 126 archaeological sites, remains of 22 ancient villages, 23 burial sites, 55 sacred sites and 36 sacred stones, the oldest of which date back to the 13th century and the most recent to the 19th century.

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aMbatovy BiOdiVErsiTY Management plans have been produced in respect of water, air, noise, soil, waste, flora, fauna and aquatic resources, and are designed to preserve the environment and advance scientific knowledge.

Ambatovy works in close collaboration with the ONE (Office National pour l’Environnement), which must approve all environmental plans before implementation.

Since 2007, a total of 140 lemurs belonging to seven species living in and around the cleared forest and refuge areas have been equipped with radio collars. Since 2009, a total of 35 new-born lemurs have been observed within Ambatovy’s conservation areas. Thirty three species of mammals other than lemurs are also monitored by the project.

Ambatovy’s amphibian and reptile management programme carries out preclearance species inventories and salvages

live animals to conservation forest refuge areas. Between 2007 and 2010 the program salvaged more than 14,000 reptiles (54 species) and amphibians (55 species) and it will continue until forest clearing operations have been completed.

A specific conservation programme has been developed for the endangered frog golden mantella (mantella aurantiaca).

Ambatovy considers mantella aurantiaca as a flagship species for its conservation efforts.

With the help of the Missouri Botanical Garden, Ambatovy has identified plant species known to exist only within the mine footprint and one or two other sites in Madagascar. These plants are categorized as Species of Concern (SOC). From an initial list of 173 SOCs, the number still requiring special salvaging has been reduced to eight species and is expected to descend to zero as the offsite surveys continue.

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executive insi ht Nobody’s perfect. What quality or ability do you wish you had?

There are many. However, there are strengths and weaknesses for everyone, no matter how experienced or successful. For this reason alone, a collaborative approach among a team of people to tackle various managerial issues is very effective. Each person on a team brings a unique skill set and perspective that complements the other team members, leading to a collective result that is superior to what can be accomplished individually.

What is the best business book you have ever read, and why?

Good to Great: Why Some Companies Make The Leap – And Others Don’t by James Collins, which provides some good insight into some of the common practices of great companies. Also, The Goal: A Process of Ongoing Improvement

by Eliyahu Goldratt, which is told in fictional format but creatively illustrates debottlenecking to maximise plant throughput and profitability.

prEsidEnT Of ThE AMBATOVY prOjEcT

Someone you would most like to have met, living or dead, and why?

Jimi Hendrix, who revolutionised electric guitar playing in just a few years, and to this day is still considered one of the best guitar players of all time.

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executive insi ht What do you consider to be your major achievement (in life or business)?

I don’t have one specific achievement that stands out above all others. I have had the good fortune of working with some outstanding people throughout my career, and when a team of people is motivated and given the appropriate resources to succeed, great things can happen.

Who or what do you think is overrated?

Communication by email. This is often relied upon by employees, and although in many cases it is more efficient to communicate by email for large audiences, for sensitive or controversial discussions, it is much better to have a conversation face to face.

What mistakes have you made (professional or otherwise), and what did you learn from them?

There have been many mistakes, but this is how you grow and develop, and eventually move forward. The biggest mistake is indecisiveness, as this prevents you from learning in order to improve yourself and your business.

Which one piece of wisdom would you pass on to your successor?

Your reputation is one of your most important assets, that takes a long time to build but can be destroyed in a moment.

Always strive to keep your reputation intact, by maintaining your ethics, principles and

“the biggest Mistake is indecisiveness, as this prevents you froM learning� special report | 233

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executive insi ht

standards in all circumstances. At times this may be very difficult, but in the long run, it will serve you well.

Who has been your inspiration professionally?

I have been inspired and encouraged by numerous leaders within Sherritt over the years, who have exemplified work ethic, creativity, and tenacity to achieve success for our company.

How would you like to be remembered after your retirement?

Retirement is a long way off… hopefully I will be viewed as a leader with integrity

and principle, who collaborated effectively with partners, colleagues and senior management teams to achieve long-term success for our company.

Do you have a quote or motto you live (or work) by?

Wherever possible, use the “KISS” Principle: Keep It Simple, Stupid.

Mark plamondon has been president of ambatovy since March 2012. Before coming to Madagascar he was in charge of sherritt coal, the largest coal producer in canada. www.ambatovy.com

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A wealth of opportunities

With a US$5.5 billion investment, Ambatovy brings jobs, economic benefits and infrastructure improvements to the island of Madagascar written by: Becky Done & Martin Ashcroft research by: Robert Hodgson

aMbatovy

A

n island republic off Africa’s south-east coast, Madagascar is famously home to some of the world’s most fascinating flora and fauna. Perhaps less well-known, however, is that it is also home to the largest lateritic finished nickel and cobalt operation in the world. First identified in 1911, the development of the deposit in the east of the country will create jobs for the local population and make a huge contribution to the island’s economy.

Ambatovy’s capital investment in the mining project is approximately US$5.5 billion, representing the largest ever foreign investment in Madagascar, and one of the biggest in sub-Saharan Africa and the Indian Ocean region. Working capital and financing commitments are increasing the level of investment every day.

The mine is located in the central highlands of Madagascar and is connected by a 220 kilometre underground pipeline to a processing plant just outside Toamasina, the country’s main port city.

Ambatovy began as a ‘greenfield’ project, with barely any infrastructure in place before construction began. Unlike some other mining operations in Africa, Ambatovy did not intend to extract and export raw ore, but planned to refine its nickel and cobalt in Madagascar.

Consequently, its infrastructure needs substantial power generation, upgrades to roads and railways, port expansion and the construction of auxiliary facilities for processing and refining.

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AMBATOVY

BORÉALIS Boréalis is the world leader in terms of corporate social responsibility for companies operating in the mining and oil & gas industries.

The company offers specialised software and services that allow organisations to attain their business objectives while meeting sustainability commitments, whether social or environmental.

The Boréalis offer follows a unique approach, combining software with consulting and integration services.

Boréalis employs over 160 involved employees, installed in numerous locations to work on the company’s various projects over five continents. Its head office is located in Canada, and other offices are located in Brisbane, Australia, and Ghana.

In 2010, Boréalis began collaborating with Sherritt on the Ambatovy mining project in Madagascar and implemented a web-based information management system (IMS) to mitigate the social and environmental impacts of the project. The building of various infrastructures, such as a pipeline, roads, the mine itself and the treatment plant required displacing the local population, as well as animal and vegetal species—some of which were native exclusively to Madagascar.

With the implementation of the BoréalisIMS, five core aspects were covered: 1. Boréalis helped the field Community Relations teams manage their relationship with affected people by encouraging a transparent engagement process, identifying key stakeholders and raising potential issues.

2. Boréalis supported Ambatovy Local Business Initiative (ALBI) in order to facilitate the local small businesses in assessing their actual capacity, identifying potential ameliorations and improving their skills and knowledge.

3. Since the project involved the involuntary resettlement of citizens, Boréalis helped

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manage the displacement and compensation process for the surrounding communities.

4. Considering the many animal and vegetal species endemic to Madagascar, a central repository and monitoring system were implemented. This helped identify endangered and local species, inventory displaced species and track their evolution in a new habitat.

5. A monitoring performance module was also implemented to allow constant project supervision in order to ensure that it complied with regulations, whether mandatory by law—for instance, by lenders such as the IFC or by the Madagascar government—or to fulfill corporate initiatives.

Ambatovy’s management team is currently considering deploying the Boréalis mobile application, which will ease stakeholder field data collection and enable teams to remotely collect information even when no internet connection is available.

Jean-Yves Saint-Pierre, supervisor SCM/ ALBI, Ambatovy Project, Sherritt International, said: “The Boréalis system is an important initiative that enables our department (Supply Change Management/Ambatovy Local Business Initiative) to obtain professional lists from companies in all fields and allows them to respond rapidly to the department’s needs. The Boréalis system allows us to perform audits of these businesses in a very professional manner and above all, to compile corporate information, therefore making it easier to follow these businesses and assess their training needs. We would also like to mention the tremendous support that we have received from the Boréalis team throughout the past year.” www.boreal-is.com

AUGUST 2012 | 1

aMbatovy

Maintenance pal 1

Ambatovy has now entered the operational Ambatovy’s mine site is located near phase, and when fully operational, it will Moramanga, a city 80 kilometres east of have the capacity to produce 60,000 Madagascar’s capital city, Antananarivo. tonnes of finished nickel, The ore body consists 5,600 tonnes of finished of two large deposits approx imately t hree cobalt, and 210,000 tonnes kilometres apart (the of ammonium sulphate fertiliser annually over its Ambatovy Deposit and the 30 year life. This will place Analamay Deposit). The nickel among Madagascar’s laterite ore is combined with most important exports, water to produce a slurry, which until now have relied which is then pumped into Amount of slurried ore upon textiles, fish, and its the pipeline linking the carried per hour famous vanilla. mine to the plant site.

800

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The Power of One

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Cummins Power Systems.

We provide your power solution.

Cummins South Africa (Pty) Ltd. is a company-owned distributor providing power generation systems, components and services in standby, prime, as well as auxiliary power to meet the needs of a diversified customer base.

The company has a service operation network of branches, subsidiary companies and independent dealers throughout the region.

The combined efforts of company owned distributor Cummins South Africa (Pty) Ltd. and Independent Cummins Dealer Madagascar Automobile recently delivered a 30MW prime power plant solution for the Ambatovy processing plant site comprising of thirty Cummins C1250 D2R generator sets,

Contact: StĂŠphane Bruno Madagascar Automobile Mobile: +261 34 05 825 31 E-mail: s.bruno@madauto.mg www.madauto.com

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0.4 kV/11 kV step-up transformers, two 20ft containerised MV cells including DMC300 control systems and MV switchgear, and two 68,000 litre self-bunded bulk fuel tanks.

Products & Services include: Diesel generator sets ranging from 8 kVA to 3300 kVA. PowerCommandÂŽ digital control electronics for system paralleling, remote operation and monitoring. n Automatic transfer switches, from 30 to 4000 amp n Enclosures, silencers and other critical accessories. n Design consulting and project management. n Prime power plant design. n Installation and commissioning services. n Maintenance contracts. n n

The global network of Cummins Power Generation guarantees a face to face relationship wherever our products are operating, providing you with a support plan to meet your needs.

Nicola Morgan-Evens Cummins South Africa (Pty) Ltd. Mobile: +27 71 670 2804 E-mail: nicola.e.morgan-evens@cummins.com www.cumminspower.com

Power Generation

aMbatovy of 1.5 metres for almost all Nearly 22,000 lengths of its length. of 60 centimetre pipe were welded together to When it emerges from construct the pipeline, the pipeline, the slurry which is able to carry reaches the processing over 800 tonnes of slurry plant and refinery where per hour. The need for it is processed and refined Cummins Power Systems. energy-intensive pumping to produce high-grade We provide your power solution. facilities is minimal, as a nd coba lt ambatovy has now entered the n ickel operational phase briquettes for shipping much of the energy needed to Ambatovy’s customers to move the ore through the pipeline is readily provided by gravity, from the port of Toamasina.

Ambatovy is a partnership of four thanks to the 1,000 metre difference in elevation between the mine and plant site. companies—Sherritt International The pipeline is buried to an average depth Corporation and SNC-Lavalin Inc. from 0.4 kV/11 kV step-up transformers, two 20ft containerised MV cells including DMC300 control systems and MV switchgear, and two 68,000 litre self-bunded bulk fuel tanks.

Cummins South Africa (Pty) Ltd. is a company-owned distributor providing power generation systems, components and services in standby, prime, as well as auxiliary power to meet the needs of a diversified customer base.

The company has a service operation network of branches, subsidiary companies and independent dealers throughout the region.

The combined efforts of company owned distributor Cummins South Africa (Pty) Ltd. and Independent Cummins Dealer Madagascar Automobile recently delivered a 30MW prime power plant solution for the Ambatovy processing plant site comprising of thirty Cummins C1250 D2R generator sets,

Contact: Stéphane Bruno Madagascar Automobile Mobile: +261 34 05 825 31 E-mail: s.bruno@madauto.mg www.madauto.com

cuMMiNs

Products & Services include: Diesel generator sets ranging from 8 kVA to 3300 kVA. PowerCommand® digital control electronics for system paralleling, remote operation and monitoring. n Automatic transfer switches, from 30 to 4000 amp n Enclosures, silencers and other critical accessories. n Design consulting and project management. n Prime power plant design. n Installation and commissioning services. n Maintenance contracts. n n

The global network of Cummins Power Generation guarantees a face to face relationship wherever our products are operating, providing you with a support plan to meet your needs.

Nicola Morgan-Evens Cummins South Africa (Pty) Ltd. Mobile: +27 71 670 2804 E-mail: nicola.e.morgan-evens@cummins.com www.cumminspower.com

Power Generation

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Creative Industrial Solutions

Q.I. Supply is a proud supplier of Industrial products to the Ambatovy Mine and Plant operations. We are a multilingual supplier capable of shipping worldwide.

We take pride in our customer service and are specialists at locating hard to find Industrial products.

For more information visit www.qisupply.com Our product range includes: • Industrial gaskets and seals • Expansion joints and hoses • Industrial valves and controls • Pipe, fittings and fasteners • Industrial MRO products

T: 780-450-1155 | E: al@qisupply.com | www.qisupply.com Creative Industrial Solutions and Services Madacan-SARLU is a proud service provider and supply partner to the Ambatovy Nickel/Cobalt Operations. Our priority is to provide a safe work environment for our employees while exceeding client expectations. If you need more information on our innovative industrial solutions or services visit us at www.madacan.com. Our multilingual team is available anytime to discuss your needs.

T: +261 20533 0335 | E: sales@madacan.com | www.madacan.com

aMbatovy

processing plant

“an industrial enterprise of this significance and Magnitude has required a great deal of financial traction to get off the ground” Canada, Sumitomo Corporation from Japan, and Korea Resources Corporation. Sherritt is the project’s operator, with 40 percent of the shareholding, while SNC-Lavalin is Ambatovy’s engineering contractor, with five percent. Sumitomo and Korea Resources each hold 27.5 percent.

An industrial enterprise of this significance and magnitude has required a great deal of financial traction to get off the ground. Ambatovy has received US$2.1 billion in debt financing from 14 lenders, a consortium that includes government-sponsored export credit

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aMbatovy agencies, international development ba n k s, and commercial banks from around the world.

Ambatov y’s financing arrangement was named the Europe, Middle East and Africa Mining Deal of the Year in 2007 by Project Finance International, and represents the largest ever project financing in subSaharan Africa.

The consortium has extremely high accountability standards. As part of Ambatovy’s lending agreement, it is required to adhere to stringent national and

international standards f or env i ron ment a l ma nagement, socia l engagement and other business practices. These standards include the Equator Principles and the World Bank Group’s International Finance Corporation Performance Standards. Ambatovy is skilled workers audited several times a year by third-party experts who report to the lenders.

The transition from construction to operations has been sensitively handled

by Ambatovy, which has voluntarily

MadaGascar autoMobile Madagascar automobile has been founded in Madagascar since 1928. specialized in car sales, after sales, car rental ( Budget rent a car) and vehicle fleet management, this long experience has helped the company in developing his presence and competence in the motoring industry in the country. as of today, Madagascar automobile covers a large sector of the market in Madagascar, with its passenger ranges as well as commercial and 4WD vehicles. relying on the worldwide brands such as Nissan, renault , renault trucks , lada , UD trucks, Bluebird busses and cummins, our firm has gain its reputation for quality of product, superior driving experience and quality of service. the service department provides a

complete maintenance solution from routing servicing to high precision repairs using the latest technology and diagnosis equipments. clients have complete peaceof-mind after buying a car, knowing that we are 100% committed: we deliver services until full satisfaction. a total of over 210 people are employed by Madagascar automobile and, as part of its social responsibility efforts, the company is committed to training, educating and advancing its workforce to the maximum potential of each individual, our employees are our most valuable asset and are the driving force behind our success. www.madauto.com

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SPECIALISTS IN SOURCE AND SUPPLY GIF Products is a supply chain company, specialising in the sourcing and supply of various standard and added value products required by Industrial, Engineering and Mining projects, on the African continent.

GIF has developed expertise across a wide range of products and services, sourced from around the world.

Our staff are highly trained and committed to project service delivery and have expertise and capabilities in Technical, Logistics and Finance disciplines.

Contact us to find out what GIF can do for you!

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aMbatovy

Haul truck

developed a comprehensive

by AIDE was determining demobilisation programme which employees would be to assist its Malagasy eligible. By the time AIDE workforce through this was announced, some period of change. The contractors had already lengths of 60 centimetre Assistance Initiative for completed their work and pipe welded together to Demobilized Workers information about whom construct the pipeline they had hired was no (AIDE), created in November longer easily available.

2010, provides former construction workers with Building the comprehensive a modest monthly allowance depending on employee database took two years and length of service, as they search for new approximately four man-years of effort. jobs. Among the many challenges faced This is understandable when you consider

22,000

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COMMUNICATIONS

Worth its weight in gold...silver, copper, nickel, diamonds

North West Technology Inc. specialises in leading edge industrial technology infrastructure.

Our Solutions: • Fiber Optic Networks • Copper Networks • Access Control Systems • Wireless Communications • Radio Systems • Satellite Systems • Security & CCTV Systems • Fire Alarm Systems Contact us! We understand your business.

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Congratulations Ambatovy!

aMbatovy that between 2007 and 2012, phase could not be kept on, which is almost always the more than 30,000 people worked on the construction case in new mining projects of Ambatovy facilities—the where many more builders largest private sector labour are required than operators. mobilisation in the history This meant that the rapid engagement of thousands of Madagascar. From a of workers in 2007 was small workforce at the followed just a few years beginning of construction, the numbers grew to later by a steady reduction over 10,000 workers by as construction wound mid-2008, peaking at 18,500 aerial view of processing plant down and preparation for operations began. in 2010.

While the operations will create Demobilisation presented many challenges employment for 6,000 people, the majority and risks, including the possibility of of people engaged during the construction strikes, slowdowns and the destruction of Re fle x Blue

Hex. Cy an

Cool Gray 11

s pots

NortH west tecHNoloGy North West technology congratulates ambatovy on the completion of its plant and mine construction project in Madagascar.

North West technology has provided extensive communications infrastructure to this project throughout the five-year construction phase. our work included the installation of the very first satellite dish through to the installation and commissioning of the site-wide fibre optic network. We also supplied and installed the data network, telephone, access control, cctV, process control and fire alarm systems. it has been a pleasure to work with the ambatovy partners on this project.

North West technology specialises in leading edge industrial technology infrastructure.

We design, supply and install solutions

for the mining, oil and gas, and forestry industries, as well as smaller industrial applications and larger commercial projects.

We have clients all over the world, many in quite remote locations. our canadian projects have been in Northern Bc, Northern alberta, saskatchewan, labrador and Baffin island. some of our international project locations have been in Nevada, Usa, Venezuela, panama and Madagascar.

Members of our team have also worked on projects in africa, the Middle east and asia.

North West technology inc. was formed in edmonton, alberta, canada in 2003. our head office is now located in summerland, British columbia, canada. www.northwesttech.ca

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S AT I S FA C T I O N S I M P L I F I E D CANADIAN FLYERS

WORLD AVIATION

SERVICES

Canadian Flyers World Aviation Services is a private aircraft management provider offering extensive experience and support for the global mining and resource sector. Whether looking to purchase your own aircraft or simply charter one to support your resource project, make Canadian Flyers World Aviation Services your first call.

Contact details: Dario Matrundola Telephone: +1 905-642-2774 Mobile: +1 416-995-9464 Email: dmatrundola@rogers.com

Managing an aircraft can quickly become a full time job and one which requires specialized knowledge and experience. We take control of your aircraft’s flight operations; importation, government licensing, providing pilots, engineers, safety management system, hangarage and itemized monthly billing of all the associated operating costs. No hassles and no wasting your company’s resources. Canadian Flyers World Aviation Services is the total solution for the management of your aircraft.

The Ambatovy project, one of the world’s largest lateritic nickel mines located in Madagascar, chose the experience of Canadian Flyers World Aviation Services to provide for their specialized aviation requirements. We imported, manage and operate Sherritt’s DHC-6 STOL aircraft providing quick, hassle free, dependable regular daily scheduled service between the capital city Antananarivo, their runway at the mine site near Moramanga and 220km down the slurry pipeline, to their new runway at the Ambatovy refinery and headquarters located next to the port city of Toamasina. We organized and provided approved GPS instrument approaches into the private runways for assured access and for the ability to provide on call medical evacuation services.

Our experienced management and pilots represent unquestionably the highest calibre of the aviation world and operate your aircraft as such. Take safety to the next level with the Canadian Flyers World Aviation Services team.

aMbatovy

excavation work

property, all of which could threaten the company’s reputation.

In 2008, Ambatovy’s Local Resources Development Initiative evolved into ALBI, the Ambatovy Local Business Initiative. One of ALBI’s objectives was

to assist in the creation and growth of local businesses so the company could source more of its supplies in Madagascar, generate local employment opportunities, and help former construction workers find new jobs.

“one of albi’s objectives was to assist in the creation and growth of local businesses so the coMpany could source More of its supplies in Madagascar” special report | 253

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Allow us to do what we do best, for your benefit!

• Austral Associates, a South African company was established in 1985 and actively exports into Africa and the Indian Ocean Islands • We have established sources of supply in South Africa, India and China, enabling us to buy at a range of prices to suit our Clients’ needs • Key market sectors are agriculture & milling, mining, industry, fishing and aquaculture • The company offers an efficient, competitive service based on a developed network and experienced personnel

AUSTRAL ASSOCIATES CC International Trade Facilitators

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aMbatovy In 2010, ALBI created euroasia PHiliPPiNes, iNc (ePi) a farm school to train established in 1986 in Manila, by French and Filipino for mer con st r uc t ion shareholders, epi has proven track records of excellent workers who might services, tailored to each requirement, ranging from decide to return to or standard Human resources to more complex options for embark upon agricultural the management of Filipino workers. activities. Over 3,000 since 2009, on ambatovy project alone, epi has already deployed more than 500 qualified Filipinos in more than 60 have already undertaken expertise fields for the construction and operation of the the training, and many DMsa nickel processing plant and related facilities. thousands more have epi’s manpower recruitment capacity, management registered for future expertise and continued strong partnership with its client classes. The courses help contribute to the success of its venture in Madagascar. demobilised workers and www.euroasia.com.ph others to improve their skills and knowledge in agriculture, livestock, accounting and business administration. A network of model farms helps with technical assistance.

Ambatovy has also contributed to the creation of three bulk purchasing centres, two in Toamasina and one in Moramanga.

These centres buy fruit, vegetables, and dried goods from local farmers and resell them to customers, including Ambatovy. An estimated 5,000 farmers from the regions of Atsinanana and Alaotra Mangoro and 3,000 farmers from other regions of the country supply these centres with up to 125 tonnes of fruit and vegetables per month. anjoma market tamatave

“in 2010, albi created a farM school to train forMer construction workers who Might decide to return to or eMbark upon agricultural activities� special report | 255

aMbatovy Local producers also supply Ambatovy with eggs and Frci enables ambatovy to better manage its it environment, including software, systems, security and over poultry. At the height of 2,000 computers. We provide consulting, implementation construction, Ambatovy services and training for end-users and it engineers. our was purchasing 80,000 mission is to help our clients improve their operations and eggs and 6,000 chickens efficiency. Frci is a recognized Microsoft partner in africa per week. with numerous certifications and regional awards. our “Our latest initiative is to teams are fluent in French and english. work with farmers to form www.frci.net them into associations,” says CSR program service manager Jennifer Burt Davis. “They can then receive subsidies, about $5,000 per association, from a World Bank Project, but in order to qualify they need to have a market for their goods.”

The farmers living in the mine’s project zone enjoy a direct benefit from Ambatovy’s presence. “That’s really critical for us,” says Burt Davis. “Through the produce they are growing and the animals they’re raising, they have a connection with our employees and our catering service, and we can assist them to create higher quality products.”

Thousands of farmers now supply the bulk purchasing centres, which buy agricultural produce directly from them, and the farmers benefit from having access to a stable market.

frci

6,000 number of chickens purchased per week at the height of contruction alBi farm school, toamasina

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The Ambatovy project in Madagascar is committed to providing jobs for local people, contracts for local companies, and training them for a sustainable future written by: becKy doNe & MartiN asHcroft reSearch by: robert HodGsoN

aMbatovy

A

major benef it f rom Ambatov y’s mission in Madagascar has been the creation of direct and indirect jobs, which has provided a major boost to the local economy. The operational phase is expected to provide long-term employment for 6,000 people, with 2,500 directly employed by Ambatovy and 3,500 by the contractors. A vast range of additional indirect opportunities will also be created in sectors such as food production, transport and waste management. A sign of how welcome these opportunities are among surrounding communities is that more than 28,000 job seekers have already been registered.

Ambatovy is committed to hiring as many local people as possible, and thousands of Malagasy employees have received construction, technical, and administrative training to enable them to assume positions during the operations phase. Providing vocational training for local communities has been a priority, with candidates who meet the necessary requirements being given priority to fill long-term skilled positions in operational areas including plant operations, eng ineering, hea lth a nd safet y, environment, finance, administration, external relations, maintenance and logistics, and potentially others.

The approach of the company’s training department has been to combine self-taught training, computer-based learning, and instructor-led classes,

special report | 259

Our expertise in mining places us at the forefront of the industry. Whether you need technical advice on steel manufacturing processes, a strategic partnership in coal and coke trading or guidance on risk reduction, maximizing profits or improving efficiencies in precious or base metal mining or extraction, we are readily available with an international service.

Mining and minerals sector services from SGS: Delivering competitive advantage for you Email us at minerals@sgs.com | www.sgs.com/mining

AMBATOVY aMbatovy

ENIVRONMENTAL SERVICES As the world’s leading inspection, verification, testing, and certification company, SGS is an expert in monitoring and supporting the mining environment. Using a combination of global resources and full-time local specialists, our projects ensure that clients are free to focus on their core businesses while we help them to create a sustainable environment.

One such project involves the air monitoring station set up by SGS Environmental at the Ambatovy nickel mine near the city of Moramanga, 80 km east of Antananarivo, the capital of Madagascar. The Ambatovy plant processes nickel and cobalt from mine slurry.

The process of separating the nickel and cobalt from the raw material mined from the ground gives rise to air pollution, which can be damaging to the surrounding environment and community. While Madagascar is a biodiversity-rich country, it is one of the poorest countries in the world, in which the local people are highly dependent on natural resources for their livelihood. These factors combine to create a challenging context for a large mining operation like Ambatovy.

As a responsible mining enterprise, Ambatovy adheres to stringent environmental standards including the Equator Principles, the World Bank Group’s IFC Performance Standards, and the principles of the Business and Biodiversity Offsets Program (BBOP). Where possible, all efforts have been made to remove pollutants before emitting to the atmosphere and ensure the surrounding community benefits from mining activities. A key element of Ambatovy’s Environmental Management Plan involves the appropriate mitigation and monitoring of any

issues identified during their Environmental and Social Impact Assessment.

This is where SGS Environmental Services comes in. In compliance with Ambatovy’s environmental policy, SGS Environmental has installed an air monitoring station to monitor the ambient air conditions in and around the Ambatovy plant. The station’s protocols are the result of world-class equipment imported from the US and SGS Environmental’s extensive experience in the mining industry in Africa.

In March 2011, the station was shipped via sea from Durban Port to Tamatave, Madagascar.

After clearing customs, the container unit arrived at the plant in April 2011. Special gases had to be shipped separately afterwards, as per maritime law. These arrived in May and June 2011. Expert SGS staff arrived at the plant in August 2011 to install, commission, and calibrate all the equipment, as well as to train the Ambatovy staff in the operation of the air quality monitoring station. The station is currently monitoring a number of pollutants including SO2, NOx, NH3, H2S, and PM-10. It provides Ambatovy with valuable information so that, as mining activities progress, the surrounding environment is carefully monitored to ensure long-term sustainability.

SGS Environmental’s competitive advantage lies in its key offerings – experienced ambient air experts working with local staff who specialise in designing, installing, and running air projects in African countries, through the use of global resources. For operations like Ambatovy, SGS Environmental is the perfect partner in environmental sustainability. www.sgs.com/environment

OCTOBER 2012| 261 |2 special report

aMbatovy enabling employees to Malagasy engineers, who develop skills on the job learned their craft from and paving the way for Ambatov y’s expatriate professiona l g row t h . technicia ns, while The training department ma intena nce subjects comprises a team of are taught by technical experts from Canada.

35 professionals, including These courses help to trainers, sector-training transfer skilled trades coordinators and training advisors.

Maintenance training to the local workforce, The Ambatovy Training equipping employees with Centre in Toamasina has a fully equipped the knowledge to become electricians, workshop for operations and maintenance millw rights, pipef it ters, welders, training. All operators are instructed by instrument technicians, boilermakers and

coMPliaNt docuMeNt aNd records MaNaGeMeNt Being compliant with different standards, such as iso9001, poses a challenge to any organisation that needs to implement standards in order to do businesss. i-Kno helped ambatovy in regards to eDrMs to do just that. the challenge was not to implement and be compliant, but to what extent to automate the process. iso9001 does not dictate how you should implement or what should be automated; but rather what should be measurable. implementing a compliant eDrMs could amount to millions of dollars if approached in the wrong way.

By selecting key components to automate and properly designing those components without going into analysis paralysis, costs can be kept to a minimum and the right compliance achieved.

only by implementing a single approval process, excellent revision numbering according to organisation policies and ensuring documents present such information accurately, could the right information be presented to the right people at he right time.

Finding the right document is a key component of the eDrMs, as the wrong information can lead to disaster. implementing simple, yet accurate, searching capabilities ensures that users at all levels can find the right document, regardless of where the document is located. it is not a question of compliance, but rather, how compliance enables an organisation to reach its goals. www.i-kno.com

special report | 263

g n i n i M r o f s n Solutio Procurement, storage and implementation of hazardous chemicals At your service, at your mining and processing locations COROI has close to 50 years experience in hazardous products and is ISO 14001 and OHSAS 18001 certified. Safety is paramount and we’ve invested heavily in storage platform safety.

For many years, we’ve serviced industries with the implementation of hazardous chemicals be it water treatment plants, power generators or the mining sector; such as the Madagascar Ambatovy Project.

COROI is in position to assist you with: • Procure hazardous chemicals • Supply chain management • Implement hazardous chemicals into your own facility • Chemical waste management In most locations around the world.

COROI s.a.s Rue de l’ Armagnac 97420 Le Port Reunion Island Tel: +262 262 421524 mining-services@coroi.fr

aMbatovy planners. Courses consist of six to eight months coroi has close to 50 years experience in managing of technical training, hazardous products. followed by additional We service the industry being water treatment plants, courses related to health power generators, but also waste management. and safet y, lang uage safety is and remains paramount. over the years we skills, IT, and on-the-job invested massively in safe storage platforms , equipments, human resources,‌ to insure our sites, technologies and learning. people respond to the highest standard.

Early last year Ambatovy Hazardous chemicals are managed in such way, the onsite launched its Technical employees and the surrounding populations are not at risk, Excellence Program, a the facility operates at its best level and the environment training initiative created is preserved for the present but also coming time. coroi for graduates aged 17 to 22 has this experience and is able to assist you wherever your from technical colleges in business is. mining.services@coroi.fr the region of Atsinanana.

The 18 month course, followed by a two-month internship, is designed to help new graduates to develop industrial operating skills for future employment at Ambatovy or elsewhere. A similar initiative is under development in the Moramanga area.

Between 2011 and 2015, Ambatovy is aiming to train around 200 operators for work at the plant site.

Ambatovy is committed to skills development to help foster a selfsustaining, well-equipped community that will be able to flourish long after

coroi

17 to 22 Age of graduates from Ambatovy’s Technical Excellence program laboratory

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VIZIYA Ambatovy knows that a well-run maintenance organisation makes the difference between success and failure. That’s why Ambatovy uses VIZIYA’s WorkAlign© Scheduler to manage its maintenance resources.

“The Scheduler’s intuitive user interface and advanced features helps planners get the job done quickly and easily,” says Dean Comand, VP Operations. “With an implementation measured in days, we immediately started to see the benefits.”

With the ability to edit and schedule multiple work orders at a time, and realtime staff utilisation reports, the Scheduler enables dramatic increases in craftsperson productivity. More productivity means more work gets done—while also reducing overtime

and use of contractors. Most importantly, better control and improved personnel utilisation means that the assets are better maintained. Well-maintained assets fail less often, and all of these savings go directly to your bottom line.

At VIZIYA, we know maintenance.

Our WorkAlign© family of products is there to help. We bolt on to your existing maintenance system and give you what you need for your world-class organisation. 43,000 users and 570 sites across six continents can’t be wrong.

Contact VIZIYA now to find out what we can do for you.

E. info@viziya.com www.viziya.com

SEPTEMBER 2012| 267 |2 special report

AMBATOVY

VIZIYA Mining profit is the difference between two very large numbers Mining is hard. It takes a huge investment in capital and personnel. While revenue can be high, expenses always threaten to be higher. In the past, as the economy flourished, mining companies increased their profitability through production expansion.

There wasn’t always time to fully optimise operational spending. In today’s uncertain economy, profit growth requires careful attention to finding new operational efficiencies.

Mining is no longer armies of workers with picks and shovels, but rather it is automated machinery, and people to maintain that machinery. More than any other industry, mining draws a straight line between good maintenance, and operational profitability.

At VIZIYA, we have the pleasure of working with many of the world’s largest and best mining companies. Below are some common threads among these world-class maintenance operations.

possible with the effective planning and scheduling of the maintenance craftspeople. How many times has the maintenance team started a job only to find out that not all of the required parts were on-hand, or how often has the maintenance person arrived at the equipment, only to find out that it is in use and unavailable for maintenance?

Unfortunately, maintenance systems are notoriously deficient when it comes to maintenance planning and scheduling. While this is not an issue if you have a small maintenance team, and only a few work orders each day, mining operations are big— with maintenance staff measured in the hundreds, and work orders in the thousands. Planning and scheduling success requires effective tools. Do not compromise: investment in maintenance planning and scheduling is a strategic necessity.

Reporting It all starts with reporting. If you don’t know where you are, and you can’t track how you are improving, you are not going to get results. While it sounds easy, in practice, reporting is hard. Your maintenance data is spread far and wide across your ERP system’s database, and finding the right information involves specialised knowledge about maintenance reporting needs, a detailed understanding of the database layout, and a full mastery of the automated toolsets required to create a reporting system. It turns out that this collection of skills is rare, and it is much easier and more effective to work with a partner to help you create your solution. Building a reporting system is not for the faint-hearted. Do not compromise: good reporting is a necessary element for any successful maintenance operation.

Vendor management A critical area that is often neglected is vendor management.

Use your reporting system to create a vendor report card. Which vendors give you the fewest early life failures? Which vendor’s equipment costs the least to maintain? Are vendor part shortages consistently prolonging equipment outages? Are the vendor’s recommendations for preventative maintenance effective? You’d be surprised at how willing your vendors are to work with you on the areas that are important to your business.

Finally, a special note about warranties. Our products are in use at over 550 sites across six continents, and we have yet to find a maintenance organisation that is happy with their warranty claims efforts. This is a sad state of affairs. Warranty claims are like money lying around on the floor. Don’t wait.

Get out there and build a warranty claims process to send someone out there and pick it up. The project payback can be measured in hours.

Labour utilisation After you have succeeded in building an excellent maintenance reporting system, the first thing you will likely see is that substantial improvements are

Sean Licata Sean Licata is VP of Business Development at VIZIYA Corp.

SEPTEMBER 2012 | 1

aMbatovy

“there is no project of this siZe anywhere in the country” the surrounding community. In 2008, however, the business community was somewhat unprepared for the opportunities this project would provide. “When we started, this was truly a greenfield operation,” says Gerald Perina, head of Ambatovy’s Business

Improvement Programme. “Although there is a smaller mining operation in the south operated by Rio Tinto, there is no project of this size anywhere in the country. So finding contractors was difficult because there were limited businesses within the country that had

special report | 269

D.H. Lyons A I R

Q U A L I T Y

M A N A G E M E N T

S E R V I C E S

D. H. Lyons provides a range of air quality consulting services to industrial, government and municipal clients.

• Industrial air quality consultant since 1990 • Worked with industries across Canada, the United States, South America and internationally.

Primary Services offered: • Air Quality Impact Studies • Air Quality Management Plans • Air Emission Inventories • Regulatory Air Dispersion Modelling • Environmental Compliance Approval Applications • Greenhouse Gas Emission Reduction Verification Studies • Technology Evaluation • Peer Review and Expert Witness Testimony Areas of Technical Expertise: • Air Emission Inventories • Air Dispersion Modelling • Regulatory Compliance Issues • Industrial Permitting • Air Pollution Control Technology Strategies and Selection • Continuous Emission Monitoring System Selection • Ambient Air Monitoring and Source Sampling Techniques

Industrial Sectors serviced: • Aggregate handling and processing • Automotive parts manufacturing • Chemical process industry • Fossil power generation • Industrial surface coating • Metallurgical industries • Iron and steel • Petroleum and petrochemical • Pharmaceutical product manufacturing • Pulp and paper • Solid waste management

D.H. Lyons was part of the environmental design team, working with SNC-Lavalin Inc. and Sherritt International Corporation • Developed a revised air emission inventory for all major air emissions sources from the main plant • Used air dispersion modelling as a design tool to help refine the size, height and location of various exhaust stacks around the facility to ensure their proper performance and ability to meet the required environmental air quality and occupational health and safety standards for the following areas of the project:

• Diesel generator power plants for the project main site, mine site and pumphouse • Ammonia storage and hydrogen plant startup • Slurry neutralization tanks • Sulphide precipitator flare • Hydrogen sulphide scrubber • Material loading and transfer operations at the port of Toamasina

D.H. Lyons | Air Quality Management Services | 60 Heintzman Street, Suite 1327 | Toronto, ON M6P 5A1 Phone: (416) 761-9472 | FAX: (416) 761-1916 | Mobile: (416) 993-9472 | Email: dhlyons@ca.inter.net

aMbatovy

Maintenance at the refinery

the necessary experience.� has provided a much-needed boost to ALBI offers small, medium, and micro Madagascar’s economy and entrepreneurs. enterprises (SMMEs) training and capacity Ambatov y had signed more than building aimed at improving the quality $1.2 billion in local contracts by the end of of their products and services, which 2010. In 2011 alone, Ambatovy spent $220 million on local purchases. will help make them more competitive More than 500 SMMEs in the marketplace. across 54 sectors have been Now one of the largest awarded purchase orders consumers of products and

by Ambatovy; meanwhile, services in Madagascar, ALBI has more than Ambatovy works hard to 2,000 local businesses identify local companies registered in a database capable of responding used by Ambatovy and its Amount signed in local to company and market sub-contractors. contracts by 2010 needs. This approach ALBI has already assisted

$1.2

billioN

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Protecting Your People Is Our Priority Managing health risk in challenging environments

Working in remote or developing areas exposes your employees to risk, especially if existing support services are limited. International SOS will help you manage and reduce the health and security risks facing your employees. Operating in over 70 countries worldwide, you have access to our global footprint and infrastructure.

We have over 25 years experience in partnering with global and local corporations in various sectors of the industry and can provide comprehensive health and security solutions that can be integrated into your sites across all operations.

• On-site medical services • Medical consulting services • Site health reviews • Medical risk assessments • Occupational health services / programs • Medical evacuations • Security services

• Medical supply chain services • Routine medical support • Site clinic services • Remote site staffing • Medical training • Integrated malaria control program

For more information contact: Tel +27 541 1000 or Email: SATsales@internationalsos.com Address: 72 New Road, Midrand, Johannesburg, South Africa. www.internationalsos.com

Worldwide reach Human touch www.internationalsos.com

aMbatovy employment-generating small sewing companies based in Toa masina enter pr i s es eng a g ed which each employ 40 in the ma nufact ure people. A LBI helped of u n ifor m s, drum to select these and pallet fabrication, contractors and provides egg production, a nd t hem w it h ongoing ag r icu lt u ra l produce technical and ma rketing. A mbatov y provides uniforms to each administrative support. employee, consisting of Uniform manufacture A n o t h er e x a m pl e two shirts, two pairs of of ma ximising loca l trousers, and two coveralls. Rather than opportunities relates to the manufacture selecting a large industrial supplier, of pallets. Using wood from a pine Ambatovy decided to award an annual forest near Moramanga, Ambatovy uses contract for 4,000 uniforms to two methods consistent with eco-certification

iNterNatioNal sos With a strong presence in africa and over 25 years’ experience in the industry, international sos plays an integral part in the health and safety operations of many energy, oil and mining companies worldwide. the ambatovy mining operation in Madagascar has been a client of international sos for the past 5 years. international sos provides approximately 8,000 ambatovy employees with access to international standard healthcare services, through two clinics on site with a staff complement of 30 nationals and 14 expatriate medical employees. services include site health reviews at remote sites; health impact assessments; and community health projects, as well as first aid and advanced training and medical evacuations. on-site healthcare facilities include the set-up and management of

clinics, occupational health programmes and primary and emergency care. as a leader in the industry, international sos clients benefit from the integration of on-site staff with the assistance centre network. international sos has 27 assistance centres worldwide that provide 24/7/365 medical assistance to many companies globally. international sos is the world’s leading medical and security services company, operating from over 700 sites in 70 countries with 10,000 employees, led by 1,100 physicians and 200 security specialists. international sos risk management solutions are specifically tailored to meet any business need. services are fully integrated and just one phone call offers 24/7 access to comprehensive advice and assistance. www.internationalsos.com

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Smart Line Integration security system integrator has been appointed by Ambatovy to design and provide integrated solutions for Ambatovy Plant in Madagascar.

The offered solution is a combination of access cards with fingerprints, PDA-mobile identification anywhere on the plant and integration between HR and access control system.

We are based in South Africa and we provide off the shelf and/or security customised solutions for the African region.

Smart Line Integration (Pty) Ltd 1st Floor Helvetia House, Greenvale Road, Wilbart, Germiston, 1401, South Africa PO Box 4337, Edenvale, 1610, Gauteng, South Africa Tel: +27 11 450 1939 Fax +27 11 450 4895 Email: info@sligroup.co.za

Web: www.sligroup.co.za

Callidus Process Solutions

Madagascar has been suporting Ambatovy in the managment, maintenance, servicing and diagnostics of valves, actuators, and instrumentation, specialized welding and coating solutions. Calidus provides employment, training and workshop facilities locally. www.callidusgroup.com.au

‘Delivering expertise through experience’ - anon

aMbatovy

local companies manufacture the uniforms

standards to harvest the efficient use of natural wood required for the resources, and sustainable manufacture of up to forestry stewardship.

140,000 pallets per year Since 2008, the company at full plant capacity. The provided local SMMEs with more than 4,000 pallets are fabricated in hours of mentoring and Toamasina and used for contract awarded to two 5,700 hours of technical the shipment of Ambatovy local companies training in accounting, products. A total of 950 project ma nagement, jobs have been created by this initiative; 800 in leadership, quality control, forestry and factory work and 150 in contract administration, procurement, transportation and handling. In addition environment, health and safet y, to creating stable employment, this industrial relations, change and growth approach has other advantages including management. improved environmental management, This level of human investment was

4,000

uNiforMs

special report | 275

For the best in Detection and Analysis

Fixed systems Compact and cost effective portables

Cal Gas

On line analysers

T: +27 11 8943134 F: +27 11 8943156 E: Gemtech@netactive.co.za www.gas.co.za

aMbatovy AMBATOVY necessary give potential Lorem toipsum dolor minim veniam, quis nostrud local suppliersconsectetur a chance to sit amet, exercitation ulla mco win business.elit, Early in adipisicing sedon do laboris nisi ut aliquip ex the project it was found ea commodo consequat. eiusmod tempor incididunt that whenet local businesses Duis aute irure dolor in ut labore dolore magna were for reprehenderit in voluptate aliqua.invited Ut enimtoadbid minim work, they failed get the velit esse cillum dolore veniam, quis tonostrud contracts, because eu fugiat nulla pariatur. exercitationeither ullamco laboris tnisi hey lacked qua lit y Excepteur sint occaecat ut aliquip ex ea commodo control, unaware consequat.were Duis aute irure cupidatat non proident, sunt how a response dolortoinprepare reprehenderit in in culpa qui officia deserunt to a bid,pariatur. or weren’t set up This is a caption this is a caption mollit anim id est laborum volnulla Excepteur properly as acupidatat business.

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“This is why weadipisicing set up the magna The BTC, in Toamasina, offers dolor amet, consectetur aliqua.located Ut enim ad minim veniam, Business says on financial accounting, to elit, sed doTraining eiusmod Centre tempor (BTC),” incididunt ut courses quis nostrud exercitation ullamco how laboris Perina, to train staff ad in prepare a tender, control, and labore et“primarily dolore magna aliqua.the Ut enim nisi ut aliquip ex eaquality commodo consequat.

GEMTECH Gemtech is a high-tech, South Africa-based company specialising in all aspects of gas and various environmental monitoring equipment. We provide a full range of portable and on-line detection equipment as well as full service and on-site assistance.

Our range includes gas, emissions, weather, moisture and particulate detectors. We have a full range of available technologies and currently supply in

Angola, Madagascar, Congo, Mozambique, Ghana, Nigeria and Tanzania; and we provide advice and design parameters when needed.

Well situated near OR Tambo International Airport, we have excellent access to courier and infrastructure supplies.

We currently supply Ambatovy’s requirements for personal H2S detectors with the Gas Alert Clip Extreme zeromaintenance unit with the Microdock automated test and reporting stations, as well as the calibration and test gases for Ambatovy’s equipment ranges.

E. Gemtech@netactive.co.za www.gas.co.za

special report2012| 277 SEPTEMBER |1

Established in 2006, Bambalela Bolts (Pty) Ltd is a supplier of an extensive range of FASTENERS, standard range holding is over 9000 items. We also fabricate HD Bolts, U-Bolts and Stud bolts in a range of grades to your requirements.

Bambalela Bolts (Pty) Ltd supplies to local companies in South Africa and to Projects all over Africa and beyond.

The company is based in Johannesburg South Africa.

Office number +27 11 822 6415 Cellphone (Mobile) number +27 (0) 83 378 6259 Email tania@bambalela.co.za | Website www.bambalela.co.za

aMbatovy

training centre

health and safety; and there are classes and seminars free of charge with followups that go hand-in-hand with quality audits. An audit is carried out within the local business, weaknesses and strengths are identified, and then further courses are recommended which are followed by

further audits in due course. Companies which have made improvements as a result of these courses are then in a better position to be awarded contracts, which fulfils Ambatovy’s policy to procure as much as possible within the country, and ensures that the companies concerned

“all of our business developMent has to be on a self-supporting basis, so that when we’re not here, the businesses will continue” special report | 279

AMBATOVY aMbatovy tempor incididunt ut labore ipsumanddolor areLorem both qualified able sit do amet, consectetur et dolore magna aliqua. Ut to the work. adipisicing sed do enim ad minim veniam, The BTC is aelit, collaborative quis nostrud exercitation eiusmod temporAmbatovy, incididunt effort between ullamco laboris nisi ut ut labore et doloreFinance magna the International aliquip ex ea commodo aliqua. Ut enim(IFC) ad minim Corporation and consequat. Duis aute irure veniam, quis nostrud Training Management dolor in reprehenderit in exercitation ulla mco Africa (TMA). Introductory voluptate velit esse cillum laboris nisiwere ut aliquip sessions held ex in dolore eu fugiat nulla ea commodo consequat.

August in Toamasina, pariatur. Excepteur sint Duis aute A nta n a n airure r i v o dolora nin d reprehenderit by in voluptate Moramanga officials This is a caption this is a caption occaecat cupidatat non proident, sunt in culpa qui velit esse cillum dolore from the Supply Chain alBi supported local business eu fugiat nulla pariatur. Excepteur sint officia deserunt mollit anim id est laborum.

Management Department occaecat cupidatat non proident, in Lorem ipsum dolor sit amet, consectetur (SCM/ALBI) of Ambatovy, duringsunt which Ambatovy has also partnered local culpa qui officia deserunt mollit anim id adipisicing sed foreign do eiusmod tempor contractorselit, with nationals, the Centre received over 500 applications: ensuring ut that the foreign nationals est laborum.

Lorem 150 ipsum sit amet, incididunt labore et dolore magna aliqua.

315 in Toamasina, in dolor Antananarivo areenim passing on training thenostrud locals. consectetur adipisicing elit, sed do eiusmod Ut ad minim veniam,toquis and 54 in Moramanga.

INORGANIC VENTURES Inorganic Ventures is a producer of chemical certified reference material (CRM) specializing in preparing custom inorganic standard solutions designed for a variety of applications. These include ICP, ICP-MS, ion chromatography, and atomic absorption. These highly regulated and highly sensitive processes require incredibly accurate and consistent measurements, which mean your testing equipment requires extremely accurate and consistent calibration. We specialize in the formulation of custom inorganic solutions and we excel in providing service and support tailored to our customers’ specific needs. In short, “we flex to your specs”.

For over a decade, Inorganic Ventures has been ISO Guide 34, ISO 17025, and ISO 9001

accredited. These quality standards are the core of the analytical testing community and Inorganic Ventures continues to lead the industry in obtaining and developing these quality standards.

Our vast experience in custom blending allows us to create precise, distinctive CRM blends quickly and ship them anywhere in five business days or less. If your needs are not unique, we offer a wide selection of stock inorganic CRMs that ship the day you order.

Our European distribution center in Madrid serves as a gateway for any international orders to provide our customers with fast delivery at competitive transportation costs anywhere in the world.

www.inorganicventures.com

OCTOBER 2012| 281 |2 special report

MAKE YOUR ASSAYS FASTER AND WITH GREATER ACCURACY WHILE LOWERING COST Glass Expansion has been manufacturing sample introduction components for ICP emission and mass spectrometers since the early 1980s. Today we support instruments from 16 manufacturers, providing sample introduction systems for over 50 different ICP and ICP-MS models. Many major ICP manufacturers supply our products as standard. Our products are widely used and embraced by recognised analysts in the ICP industry, and are recognised as ‘industry standard’ products. Our intimate understanding of the relationship between the various sample introduction components, together with our ability and expertise in manufacturing high quality nebulizers, spray chambers, torches, and other ICP components, means that we can offer you a complete solution to your ICP sample introduction needs.

Glass Expansion offers consumables and accessories for ICP optical and mass spectrometers • Nebulizers • Spray chambers • Torches • Interface cones • Pump tubing • Enhanced productivity accessories

Americas: Tel: 508-563-1800 | Fax: 508-563-1802 | e-mail: geusa@geicp.com | www.geicp.com International: Tel: +61 3 9320 1111 | fax: +61 3 9320 1112 | e-mail: enquiries@geicp.com

aMbatovy “Their contract renewals are based on how well Glass expansion designs, manufactures, and distributes they carry out internal consumables and accessories for icp spectrometers. these training of nationals: spectrometers are used in a wide range of applications most companies are pretty involved in the measurement of elemental concentrations, from successful,” adds Perina. environmental analysis to mineral assay to quality control.

Ambatov y has also of the many spectrometer modules, Glass expansion is focused on the sample introduction system. its established continuous products are designed to provide high precision and improvement ta rgets accuracy. it also offers components and accessories for its contractors over which enhance both the ruggedness and productivity the next two years. “We of the spectrometers. Glass expansion has a staff of need to encourage the technical experts ready and able to recommend the best development of sustainable components for a customer’s specific needs. businesses,” says Perina, www.geicp.com “not businesses that are only doing business with us, but with other companies as well.”

Eventually, for all these initiatives to be successful, the objective has to be that businesses can be self-supporting even after the mine has closed.

“All of our business development has to be on a self-supporting basis, so that when we’re not here, the businesses will continue,” Perina confirms. The challenge is to create a business plan that gets them off the ground, but while Ambatovy might be the biggest customer at the moment, others will emerge when Ambatovy is no longer around.

Glass exPaNsioN

6,000 PeoPle long term employment potential local produce supplier

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an engaging AppROAch P

oised to become one of the world’s largest lateritic nickel mines by 2013-2014, Ambatovy is likely the most ambitious industrial undertaking in the history of Madagascar. Aiming to produce 60,000 tonnes of refined nickel and 5,600 tonnes of refined cobalt every year over its thirty year life, there has never been a mining project of this scale in Madagascar before, and the project partners (Sherritt International

284 | special report

Corporation, Sumitomo Corporation, Korea Resources Corporation and SNC-Lavalin Incorporated) are committed to managing it responsibly.

Ambatovy’s far-reaching corporate social responsibility (CSR) programme therefore has three main strategic objectives, explains CSR program service manager Jennifer Burt Davis. “The first looks at meaningful stakeholder engagement and relationship building; the second looks at the mitigation

aMbatovy Ambatovy is committed to operating sustainably throughout the life of the project and beyond, for the benefit of the country, its communities and wildlife written by: becKy doNe & MartiN asHcroft reSearch by: robert HodGsoN

of, and compensation for, potential impacts; and the third is around demonstrating and contributing to socio-economic benefits in our operation zones.�

This strategy reflects the company’s core values, which include creating and maintaining an organizational culture where health and safety is a top priority, along with respect for the social and cultural values of its stakeholders, sustainable economic development, and protection of

the natural environment. Inherent in these values are high ethical standards and a spirit of transparency, teamwork based on mutual respect, trust, and constructive relationships, and a commitment to continuous improvement. Also central to Ambatovy’s policy of good corporate governance is the objective to foster credibility and trust by complying with principles developed to protect investors, employees, and the general public.

special report | 285

Foley Hoag LLP— Corporate Social Responsibility and the Extractive Sector Turning Globalization Challenges into Competitive Advantages As the only law firm in the United States with a Corporate Social Responsibility and Risk Management Practice, Foley Hoag is singularly equipped to help clients put human rights principles and aspirations into practice in a manner that minimizes uncertainties and maximizes business opportunities. To this end, we assist clients in managing legal risks, safeguarding corporate reputations, and turning the challenges of globalization into a competitive advantage.

Visit our Corporate Social Responsibility and the Law Blog at www.csrandthelaw.com.

Foley Hoag LLP Seaport West 155 Seaport Boulevard Boston, MA 02210-2600 tel: 617 832 1000 fax: 617 832 7000

www.foleyhoag.com Attorney advertising. Prior results do not guarantee a similar outcome.

Foley Hoag LLP— Corporate Social Responsibility and the Extractive Sector Turning Globalization Challenges into Competitive Advantages As the only law firm in the United States with a Corporate Social Responsibility and Risk Management Practice, Foley Hoag is singularly equipped to help clients put human rights principles and aspirations into practice in a manner that minimizes uncertainties and maximizes business opportunities. To this end, we assist clients in managing legal risks, safeguarding corporate reputations, and turning the challenges of globalization into a competitive advantage.

Companies in the mining industries face the complex challenge of conducting their operations in a manner that not only respects national and international laws, but also observes voluntary standards and industry guidelines concerning social and environmental issues. This challenge is exacerbated by the fact that exploration and extractive activities around the world present increasing legal and reputational risks in the areas of human rights, labor rights, security practices, and the rule of law.

Foley Hoag’s Corporate Social Responsibility Practice helps companies in the extractive industries to identify risks and understand the implications and requirements of a wide range of international guidelines and standards. We help clients monitor and benchmark their efforts against the relevant standards applicable to the extractive sector, as well as industry best practices, and to develop strategies to manage business risks.

Foley Hoag Senior Advisor John Ruggie, Former U.N. Special Representative on Business and Human Rights, helps mining companies implement the U.N. Guiding Principles, which he developed, and which enable companies to meet international best practices while mitigating risk. Foley Hoag also serves as thought leaders on the issues of indigenous peoples. We advise clients on international law and national standards, and how to implement consultation and consent processes.

Our attorneys are experts in advising corporate leaders on how best to guide their operations to achieve both business objectives and the highest levels of compliance with critical human rights standards. We also assist companies in building effective channels of communication and positive relationships with key stakeholders, including non-governmental organizations, the media, unions, socially responsible investor groups, and indigenous communities. In addition, we help clients establish partnerships with international organizations that foster social and marketplace stability in the developing countries in which they operate.

Foley Hoag’s Corporate Social Responsibility Practice Group •

Creates legal strategies and business policies that incorporate respect for human rights, comply with existing laws and voluntary codes, and “close the gap” between a company’s commitment and its business activities

•

Conducts periodic monitoring of extractive projects to ensure compliance with the local and national laws, company standards, and fundamental human rights, especially with regard to workers, local communities, and the nexus of security concerns and human rights protection

•

Undertakes human rights risk assessments and corporate social responsibility due diligence reviews of current and potential projects to evaluate legal and reputational risks

•

Analyzes conflicts with local communities, and designs plans and programs to minimize risks and maximize mutual benefits

•

Helps to incorporate key corporate social responsibility standards into the prevailing legal regimes and related contracts used in extractive projects

Looking for Insightful Commentary?

Visit our Corporate Social Responsibility and the Law Blog at www.csrandthelaw.com.

aMbatovy Prior to construction, training, local procurement, Ambatovy conducted a environmental protection thorough environmental and biodiversity offsetting. a nd socia l impact Community relations are assessment, which involved crucial to the success of an a comprehensive analysis of operation with far-reaching all of the project’s impacts. implications for the local population, so Ambatovy A wide range of Malagasy works particularly hard to stakeholders were consulted recognize its stakeholders, in order to gain an insight into how negative impacts school equipment communicate with them could be avoided, managed or donation, Moramanga proactively and effectively, and manage stakeholdermitigated, and how positive impacts could be maximised. Ambatovy related risks as a means of cultivating a has since worked to create and implement broad level of active support from everyone. a wide range of policies and programmes Affected stakeholders are afforded a real covering job creation, capacity-building and influence on project activities and the

MacroteK iNc. For over 80 years Macrotek has provided cost-effective and energy efficient system solutions for the control of particulate, fume, and odour from industrial process exhaust gases. as a leader in the air pollution control industry, we are proud to be part of the innovation and ambition ambatovy brings to Madagascar. our continued partnership with ambatovy strengthens our mission to provide customised solutions to our worldwide clients, optimising energy efficiency, exceeding regulatory requirements, and delivering results unique to each environmental need.

Macrotek specialises in custom designed air pollution control systems using wet and dry technologies. our customised product line of

quench systems, scrubbers, absorbers, and particulate collectors can be used as standalone control equipment or fully integrated pollution control systems designed for specific applications.

Macrotek has a proven track record within the mining industry and ensures high removal efficiencies, flexible design, and durable construction within a wide range of chemical applications. our fully customised, site-specific packages repeatedly outperform conventional designs, with results exceeding industry standards and the most stringent environmental regulations. info@macrotek.com www.macrotek.com

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www.galana.com

Our energy to serve you

High quality products & prompt delivery Industrialforniture SRL is a company which supplies piping material such as pipes, flanges, fittings and valves in carbon, stainless steel and special materials for the construction and maintenance of industrial plants in the chemical, petrochemical, mining, energy, naval, paper and off-shore sectors.

Industrialforniture SRL with the “Valve Division� produces ball and plug valves up to 24�

aMbatovy creation of community GalaNa GrouP support, with ongoing since the beginning of this project in 2008, Galana has engagement activities developed a significant expertise in the mining sector and ranging from the provision of particularly with ambatovy. information to involvement a tight co-operation between ambatovy and Galana has in joint decision-making. been established with the supply of Naphtha for its factory Ambatovy has conducted in tamatave as well as the supply of diesel at the mine site in Moramanga (see photo on the opposite page). substantial training with this scale of project was new in Madagascar, ambatovy and its social agents on how Galana learned from each other and brought their expertise to conduct meaningful and knowledge together to optimize operations. dialogue, in an attempt Galana expresses its endeavour to be continuously linked to build genuine, longwith ambatovy and be recognized as a key player and lasting relationships supplier for the mining sector. with governments, local www.galana.com authorities and communities.

“We have about 60 social agents, supervisors and co-ordinators on the ground,” says Burt Davis, “and we look upon them as our ‘nervous system’.” If something happens within the community that affects a stakeholder’s livelihood or the project itself, the social agent reports back up the chain of command so the appropriate response can be made.

Ambatovy’s engagement activities are both proactive and responsive. The company initiates weekly, monthly or quarterly meetings with stakeholders who fall within its scope of engagement. The tangalamena (local elders) are consulted clean water

“if soMething happens that affects a stakeholder’s livelihood or the project itself, the social agent reports back so the appropriate response can be Made” special report | 291

HK- JURIFISC is a reputable multi-service law firm incorporated under the Laws of Madagascar.

HK-Jurifisc is the main company of the “HK Group” composed of twelve companies having their own specialisation.

HK-JURIFISC is a law firm providing efficient and accurate advice and assistance to its client in the following legal and tax areas: • Corporate Matters • Taxation • Free Trade Zone Regulation • Real Estate Transactions • Executive Employment Matters • Banking and Insurance Law • Mining and Energy Law, Petroleum Code (upstream and downstream) • Financing Transactions and Securitization • Other commercial transactions Tel: (261) 20 22 337 97 / (261) 20 22 541 91 Email: admin.k@hk-jurifisc-mada.com

www.hk-jurifisc-mada.com

AMBATOVY aMbatovy culpa officia deserunt feature onAmbatovy a quarterly basistext.... and definesqui a complaint as “a Lorem ipsum dolor sit amet, mollit or anim id est laborum. meetings are regularly held claim grievance filed by with government ministries consectetur adipisicing elit, Lorem ipsum dolor amet, an individual or asitgroup within the adipisicing communities sed do eiusmod consectetur elit, and agencies, suchtempor as the affected the operations National ut labore Environment incididunt et dolore sed do by eiusmod tempor magna aliqua.National Ut enim ad incididunt ut labore et dolore Office (Office pour of the company.”

Grievances minim veniam, quis nostrud magnainclude aliqua. Ut enim ad l’Environnement, ONE) and can allegations of physical financial exercitation ulla mco minim veniam,orquis nostrud the Ministry of Mines. laboris nisi utoperation aliquip ex exercitation ullamco laboris No mining of damage; health, safety, and ea nisi ut aliquip ex eaconcerns; commodo this commodo size can avoidconsequat. impacting Book donation environmental Duis aute irurewith dolor its in harassment; and aute improper consequat. Duis irure communities reprehenderit in voluptate or isimmoral individual or dolor in Any reprehenderit in Thisgrievance is a caption this a caption behaviour. activities, so Ambatovy has a robust velit esse cillum dolore assessing, and community thatvoluptate velit esse cillum mechanism for reporting, feels negatively affected by eu fugiat nulla Excepteur sint Ambatovy’s addressing all pariatur. complaints.

Ambatovy dolore eu fugiat nullacan pariatur.

Excepteur activities file a complaint. occaecat cupidatat non proident, sunt in sint occaecat cupidatat non proident, sunt

HK GROUP (HK-JURIFISC) HK Group consists of twelve companies performing a range of services involving the establishment of companies and their ongoing activities in Madagascar. For instance: HK-Jurifisc (see facing page) Cabinet Hanna Gräfin Keyserlingk: • Intellectual property services International Business Center (IBC): • Local implementation offices for companies under subletting contracts • Management contracts • Tax representation agreement for expatriates’ salaries income tax (IRSA) HK-Log Services: • Work permits and Resident Visas; particular assistance to the Ambatovy Project in the

mobilization of more than 5000 expatriate workers of different citizenship HK-Interface: • Payroll process • Salary income tax payment • Social security obligations HK-FCM: • Business Process outsourcing (BPO) HK-Labor Broker and HK-Lab International • Human resources management HK-REC FIRST • Receivable recovery and debt collection Tel: (261) 20 22 337 97 / (261) 20 22 541 91 Email: admin.k@hk-jurifisc-mada.com www.hk-jurifisc-mada.com

OCTOBER 2012| 293 |2 special report

SOLUTION FOR HIGHNESS

ECHAF+ sarl ECHAF + is established in Madagascar since 2010. We are the local representative of ENTREPOSE MILLS INTERNATIONAL, one of the European leaders in industrial scaffolding. We are patented to CE regulation according to R408 recommendations and French Syndicate of Building and are up to obtain ISO 9001 regulation.

ECHAF + has mainly established a contract with AMBATOVY PROJECT MADAGASCAR. We realize a whole set of structures of various sizes and high to satisfy the requirements of our customers. We are in contact with our engineering consulting firm situated in Paris, where from we realize all the studies and the calculation notes necessary and compulsory according to the required standards.

Contact us: Email: echaf@moov.mg +261 53 307 56 +261 34 02 123 23

SCAFFOLDING REGULATION

MADAGASCAR AMBATOVY PROJECT

aMbatovy

public consultation

Grievances within communities may be if the complainant does not agree with filed with any field worker or through the the outcome at this stage. Solutions may be leading local authority, or affected parties in the form of compensation or rectification. can email or call a toll-free number. Forms can also be filed at Ambatovy offices in sOciAl inVEsTMEnT Antananarivo, Moramanga, or Toamasina. Ambatovy carries out its social investment The process thereafter is structured and activities in two ways. “One is quick-impact aims to be prompt in its donations in infrastructure response with a receipt and development; and or a comprehensive reply the second is longer-term sent within 30 days of programmes around health, reg ist rat ion .

Where education and livelihoods,� necessary, an investigation explains Burt Davis. number of social will take place and a Education is a major agents, supervisors solution be proposed, with issue in Madagascar, and co-ordinators further action considered with two-thirds of the

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PowerFlex® 7000 medium voltage drives.

PowerFlex® 7000 medium voltage drives.

When energy e

cy is high on your agenda, the PowerFlex 7000

should be highe on your Enabling s agenda, starting variable-speed When energy cy list. is high on your theand PowerFlex 7000 controlbe of high processes withlist. high power demands, theand PowerFlex 7000 should on your Enabling s starting variable-speed helps reduce energy costs,ofcomponent count, maintenance and motor wear. 7000 control processes with high power demands, the PowerFlex To d out more about saving count, with medium voltageand drives please visit helps reduce energy costs,energy component maintenance motor wear. http://ab.rockwellautomation.com/Drives/Medium-Voltage To d out more about energy saving with medium voltage drives please visit http://ab.rockwellautomation.com/Drives/Medium-Voltage Colin Morris, 011 654 9707, cmorris@ra.rockwell.com

Copyright © 2012 Rockwell Automation, Inc. All Rights Reserved.

Copyright © 2012 Rockwell Automation, Inc. All Rights Reserved.

AMBATOVY aMbatovy Ambatovyliving feature text.....Lorem ipsum population in severe dolor sit and amet, consectetur poverty many children,adipisicing elit, sed do eiusmod incididunt ut labore particularly in tempor rural areas, et dolore magna school. aliqua. Ut not attending Inenim ad minim veniam, quis nostrud exercitation ullamco 2010 Ambatovy began a laboris nisi ut aliquip ex ea commodo collaboration with UNICEF consequat.

Duis aute for irure dolor in to finance the Contract School Successinprogramme reprehenderit voluptate velit esse cillum dolore eu fugiat nulla pariatur.

Excepteur (Contrat Programme de la Scolaire, non or proident, sunt sintRéussite occaecat cupidatat CPRS).

Theofficia programme in culpa qui deserunt mollit anim id est laborum.

Lorem ipsum dolor sit amet, has significantly contributed to improved consectetur elit, sed do eiusmod access to adipisicing primary school education, retention rates andutparent/community tempor incididunt labore et dolore participation in enim education.

Its veniam, aim is magna aliqua. Ut ad minim

quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididuntschool ut labore et dolore magna aliqua. equipment donation, toamasina Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip to encourage administrators, teachers, ex ea commodo consequat.

Duis aute irure parents and students through community dolor in reprehenderit in voluptate velit contracts and action plans to drive their esse cillum dolore eu fugiat pariatur. own local educational goals nulla and activities.

ROCKWELL AUTOMATION FLEXES ITS MV MUSCLE WITH DRIVE CONTROL FOR MADAGASCAR NICKEL MINE Over the past year, Rockwell Automation in South Africa has been using its internal medium voltage (MV) resources, consisting of certified MV engineers, to commission 26 Allen-Bradley PowerFlex 7000 MV variable speed drives (VSDs) for the Ambatovy large-tonnage, long-life nickel and cobalt mining enterprise in Madagascar.

Rockwell Automation in France, supplied the mine with 12 and 14 Allen-Bradley PowerFlex 7000 VSDs, which are fitted on either side of a 220 km pipeline that conveys nickel slurry from the open pit mine in the hills, to the processing plant below.

Nearly 22 000 lengths of 60 cm pipes were welded together to form the pipeline that connects the mine with the processing plant. The pipeline has a proven design, similar to pipelines operating elsewhere in the world, and is capable of transporting 826 tonnes of slurried ore per hour.

The MV VSDs from Rockwell Automation control pipeline flow and pressure throughout the 1 000-metre elevation difference.

“The pipeline’s length and the heavy nature of the slurry require that very large 3,2 MW motors are installed. The customer further required flow control to assist with a smoother hydraulic profile and help with greater energy efficiency,” says Colin Morris, Branch Manager, Sub-Sahara Export, Rockwell Automation.

The PowerFlex 7000 VSD, which operates at 6,6 kV with ‘Direct to Drive’ technology, was chosen as it could connect directly to the customer’s reticulation without the use of transformers.

This further contributes to energy efficiency, and by using ‘true’ MV components, also allows for excellent reliability. The VSD communicates directly to the customer’s control system, which enables optimal process control.

Visit http://ab.rockwellautomation.com/Drives/ Medium-Voltage, call +27 11 654 9707 or email cmorris@ra.rockwell.com, hscraukamp@ra.rockwell.com

special OCTOBER report 2012| 297 |2

aMbatovy

table donation at ambodisaina school, tamatave

Meetings take place at the start of the school year in which the interested parties discuss school results and learning conditions with a view to improving the school in general, and retention rates, in particular. Action points might include anything from improving the school environment to setting up a school canteen, or addressing students’ attitudes towards

attendance. The actions required are then integrated into the school’s action plan.

Progress is reviewed once during the school year and again at the end of the year.

Ambatovy also runs donation and sponsoring programmes in response to requests it receives for donations. It has also worked with a US-based NGO, CURE, which receives donations of medical equipment

“education is a Major issue in Madagascar, with two-thirds of the population living in severe poverty and Many children, not attending school” special report | 299

Your Total Fire Protection & Life Safety System Provider Vipond Inc. is a leading International, Fire Prevention and Life Safety Solutions provider.

Our purpose is “building safe and secure environments in which to live and work”.

Since 1945, we have provided innovative fire protection solutions to reduce the risk from fire for every type of hazard through early detection and suppression. Vipond is “Your Total Fire Protection and Life Safety System Provider”, specializing in design, supply, fabrication, and complete turn-key installations.

Vipond Inc. International Division

T. 905-564-7060 E. paul.gagne@vipond.ca

aMbatovy in the United States.

Following a government FelUWa MUltisaFe hose-diaphragm pumps are study on the needs of successfully applied for high and low pressure duties, such hospitals in the country, as autoclave feeding, sulfuric acid, thickener underflow, Ambatovy funded the choke water, seal water make-up, underground mine transport of ten containers dewatering or tailings disposal. of medical equipment from if mining and processing is done at different sites, the slurry is additionally pumped from the mine site to the processing the US to Madagascar. It plant through slurry pipelines. also carries out work in at the heart of MUltisaFe pumps are two hoseeducation, HIV awareness diaphragms, arranged one inside the other. they fully and child protection, enclose the linear flow path of the product and provide for a working with several local double hermetic sealing from the hydraulic drive end.

NGOs who are assisting FelUWa: excellence in mining pumps. with the implementation www.feluwa.com of selected programmes.

One local NGO called ODDIT, which is attached to the Catholic Church, is carrying out water and sanitation work in schools.

feluwa

culTurAl hEriTAgE Madagascar’s cultural heritage is a crucial part of its national identity, and Ambatovy is therefore committed to making sure that any cultural heritage sites, archaeological artefacts or remains are respected in accordance with local customs, scientific procedures, and International Finance

2010 Ambatovy began a collaboration with unicEf to finance the contract for school success programme information kiosk, Moramanga

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The clock is always ticking Petropipe (PPI) Company is known foremost as a specialist for the supply of critical or very urgent items that you may experience difficulties in sourcing. At PPI “the clock is always ticking”, so that we can ensure our service for critical requirements on projects is second to none.

PPI is set up to provide urgent and last minute requirements to Oil & Gas refinery project sites covering Valves, Piping, Spooling, Actuation, Instrumentation and Control Equipment etc. that site work invariably needs during the “as built” final construction and commissioning stages as well as for shutdowns and emergency maintenance.

However over the last 7 years we have also increasingly moved into the Mining and Metals sector supporting a number of Mega-Projects around the world.

PPI specializes in supporting these urgent requirements. Unlike other supply companies in the region it is those items which are difficult to source quickly that we target, providing Specialist Material or Trims, Large Bore Piping, High Pressure and / or High Temperature Materials.

Petropipe International Middle East

Office 3401 Liwa Heights Jumeirah Lakes Towers Plot No. W3, PO Box 643638, Dubai, United Arab Emirates

T. +971.04.434.1322 | F. +971.04.434.1323 Director: Robert Wood – E. robwood@petropipe.co.uk

aMbatovy

archaeological surveys were carried out at cultural heritage sites

C or p or a t ion (I F C) Rakotoarisoa, was regularly Performance Standards on monitored by national experts appointed by the cultural heritage.

Malagasy government.

Prior to the construction During construction of phase of the project, Archaeological sites the pipeline, all sites were archaeological surveys discovered by Ambatovy were carried out at cultural reassessed for any previously heritage sites and with undiscovered items of the help of community archaeological interest or members, rigorously documented and value and in some cases the pipeline was mapped. In locations where remains or then re-routed to avoid particular sites. artefacts were found, Ambatovy followed The archaeological team works closely cultural practices, local traditions, and with the Universities of Antananarivo and scientific protocols to ensure minimal Toamasina and other institutes such as the disruption during their relocation. All of Museum of Art and Archaeology, and a the work during the construction phase, partnership agreement has been signed with which was led by Professor Jean AimĂŠ the Centre for Ethnological and Linguistic

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Supplying Mining Chemical Solutions Manufacturers and suppliers of: • xanthates – pellets and liquids • specialty liquid thio mineral collectors, • froth formation chemicals,

• depressants for unwanted minerals, • polyacrylamide powder flocculants • fit-for purpose make-up facilities

All backed by our highly skilled technical, engineering and R&D teams.

At Senmin, we go beyond being a chemical supplier – we supply innovative solutions to our customers.

Senmin International (Pty) Ltd T: +27 11 246 6300 E: enquiries@senmin.co.za www.senmin.co.za

AMBATOVY aMbatovy Comnisquiam fugitas Ecaessitangible ut molo di Studies and Research brought benefits in Toamasina for adit, the to the veliquid area’s esendandel heritage. plignitatur reperaecae accupide Ambatovy’s archaeological ut qui occaeriaest maxim idenet alis endene volorem conservation andvolo treatment lam new quaectis volo quianda ex plat i s discovered dolupiciat of archaeological team has 96 keyi aliate qui que conempor discoveries. academic simus autenduAn ntesequi con archaeological sites and seceperovit aut book commissioned by et dita dit, quossi consequid collected moreomnim than 4,500 harum adit verferspere Ambatovy will document artefacts.

Between 2005 quist quidunt ibeaqui reriti prerorp am reprate molorro the work and findings, occae which and 2010orehendenim in areas between ium voloreperro ea dendi solendi genducil intbyipicto are authenticated two Moramanga and Toamasina Malagasy dolupturiae archaeologists non perfernam assusteam et pedi verferis vercipi the found 4,207 clay quam utem nullum tatiorio. and Itatibe atiosto appointed by the government sacred stone discovery potteries 192 imported volestrum fuga. Itatio bla This is a caption this is a caption ceramics. experro eserum of Madagascar.

Amongque the etus 262 duntur millupt aquiasfew previous cultural heritage corepudandit As there had been sites cataloguedmagnien were 126 diciis dita ditatio totatur, queofnamuscidit sites, remains 22 ancient autemol uptiorro quatium fugiae. data Ovit archaeological archaeological studies andsum historical litassequias essussites, ut faceri sam, 23 burial 55 sacred sitessequi and autae sequi quehas sit villages, linked to theomnisquid region, theeosanducid mine project eum et est, quis que pel etur? dempore hentius esequos et ut ex expeliam

SENMIN With a history that dates back to the late 1950s, Senmin International of South Africa is a mining chemicals manufacturer and services provider.

Senmin maintains headquarters in Johannesburg and a state-of-the-art manufacturing facility in Sasolburg.

The company currently services Namibia, Zimbabwe, Zambia, DRC and Botswana in addition to South Africa, and is branching out into Ghana, Tanzania, Madagascar, Morocco and Egypt.

With strategic partnerships in place with global mining leaders such as Anglo American, Impala Platinum, Lonmin, Sasol, Rio Tinto, Xstrata, BHP Billiton and now DMSA, Senmin is rapidly becoming the preferred flocculant supplier in Africa.

The Senmin polyacrylamide plant is the world’s first industrial scale manufacturing facility

where biotechnology is used to manufacture polyacrylamides. It’s a zero effluent plant with an energy consumption that is considerably lower than other processes.

Apart from flocculant for tailings treatment, Senmin’s flotation products aid in the beneficiation of platinum, diamonds, coal, gold, uranium, nickel and copper.

Senmin upholds ISO9000:2003 and 9001:2000 certifications for quality management systems, five-star accreditation with a NOSCAR award for safety in 2011 and ISO1400 and 1401 accreditation for environmental management.

The company maintains internal oversight of its supply chain with all purchasing and logistics management taking place in Sasolburg.

E. enquiries@senmin.co.za www.senmin.co.za

BE EMEA| 305 |2 special report

Present throughout the African continent

Fan Coil Air Treatment Control

Edmonton Electric has been serving the Edmonton area since 1956 in the Construction, Design Build, and Service industry. Safety and customer satisfaction is our goal for every project.

Brent Connell

Partner, PEC, CME, General Manager bconnell@edmonton-electric.com

Steve Smith

Partner, CME, Service Manager ssmith@edmonton-electric.com 8011 Argyll Road, Edmonton, Alberta, T6C 4A9

T: 780-463-4911 | F: 780-463-8233

Chiller Heat Pump

Few main customers  SIRTE OIL COMPANY (LIBYA)  SHELL (QATAR)  ESSO (EXXON MOBIL TCHAD)  SONATRACH (ALGERIA)  SNC LAVALIN (ALGERIA)  DYNATEC (MADAGASCAR)  TECHNIP (NIGER)  SHERRIT INTERNATIONAL...

(MADAGASCAR)

We are representative of CARRIER® products. We strive to provide high quality products, spare parts and aftersales services.

Supply of heating ventilation, air-conditioning and industrial refrigeration systems. Engineering and audits, systems design, maintenance contracts, startup, commissioning.

Contact us: Marseille (France) Tel. +33(0)4 91 69 12 12 georges.sapet@ldfs.com engineering@fact.ldfs.com

C NS Sarl Sells representative in Madagascar of: DES- CASE Corporation filters:

Desiccant Breathers Dependable lubricant protection features color

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aMbatovy

environment team

“internally we’re taking on the role of ensuring social responsibility right across the project” 36 sacred stones, the oldest of which date back to the 13th century and the most recent to the 19th century.

Ambatovy aims to contribute to a broader understanding of history by sharing the results of its work and submitting them for discussion. In 2011, an international conference and workshop entitled Sociocultural Archaeology and Anthropology from the Mangoro to the Ivondro presented the discoveries made between Toamasina and Moramanga by Ambatovy during the construction phase to an audience at

the Malagasy Academy in Tsimbazaza, with the aim of also initiating a debate on excavation strategies and improving archaeology in eastern Madagascar.

In conclusion, Burt Davis comments that corporate social responsibility is relevant to everyone in the organisation, not just the CSR department. “In Ambatovy it is everyone’s business—it’s not just down to one department, and this is something that we’re trying to press home to everyone. Internally we’re taking on the role of ensuring social responsibility right across the project.”

special report | 307

E

ven before the start of the construction phase, a major concern of the Ambatovy Project was the preservation of the cultural heritage of Madagascar, one of the components to be considered in obtaining the environmental permit.

The population showed its deep attachment to ancestral values during A mbatov y ’s sur veys a nd public consultations. Ambatovy did everything during this stage to honour the trust of the population. Cultural and religious sites and archaeological remains have been spared from any form of degradation. In addition, in order to safeguard the integrity of the cultural heritage, Ambatovy decided to preserve them during construction. Without this precaution some sites of enormous value, in terms of understanding Madagascar’s past, would have been lost forever.

Today, Ambatovy has not only fulfilled its mission of preservation but has also contributed significantly to improving the knowledge of the history of Madagascar and in particular the eastern region between the mine in Moramanga and the plant in Tamatave. Hundreds of archaeological sites covering the period from the ninth to the nineteenth century were updated. The archaeological team was able to collect over 4,000 relics, most of which are composed of local pottery shreds, imported pottery, glass and bones.

A first analysis of these remains showed physical evidence of the importance

308 | special report

Ambatovy

Respecting cultural heritage Ambatovy has contributed significantly to improving the knowledge of the history of Madagascar written by: J.A. Rakotoarisoa and Erick Randrianasolo

NOROSOA

“

“

INTERPRETATION ANDTRANSLATION

In addition to Teaching and Continuous Training, we also provide interpretation work in English-French, FrenchEnglish – i.e., liaison, conference (simultaneous), consecutive.

Email:nrakotomena@gmail.com Tel:261 32 07 715 35 or 261 33 14 240 36

ARO: the Leader of the insurance market in Madagascar ARO combines experience and expertise through its 37 years of existence.

ARO is member of GLOBUS: a pan-African network of insurers that supplies a global offer of insurance products/ services to multinational clients with interests throughout Africa ARO is rated AA by GCR (South Africa)

“Live and work with serenity”

aMbatovy of trade between the raJoNsoN raKotoMeNa Norosoa highlands of the hinterland Norosoa is a small company offering language services. with the east coast. These our current contract with ambatovy mainly consists in findings are currently providing training to ambatovy employees in using the being temporarily stored english language, but we have also provided translation in a small area of CEREL work under the same contract.

(Centre for Ethnology and the company has various teachers/trainers capable of delivering training to a variety of skill levels. our teaching Linguistics Studies and staff are mostly postgraduates with academic and Research) at the University professional training, as well as years of experience. of Toamasina.

Norosoa company also holds many years of experience Fina l ly, for 2013, in interpretation and translation work and is qualified as A mbatov y pla ns to authorized by the courts and tribunals of Madagascar. construct a building nrakotomena@gmail.com to house the museum collection and make it available to researchers and the general public. These substantial findings were made through the implementation of a specific methodology at each stage of construction. Two major imperatives had to be addressed: avoid site spoliation without delay to construction. To this end, the archaeological team informed the local population about the imminence of the work and verified that all sociocultural barriers were lifted. For sensitive monuments such as burial sites, expiatory rituals were organized to ask for the ancestors’ blessing and protection. a selection of relics collected The arrival of earthmoving equipment by the archaeological team

“aMbatovy plans to construct a building to house the MuseuM collection and Make it available to researchers and the general public� special report | 311

The results of the archaeological works will be the subject of a scientific publication

aMbatovy

4,000+ number of relics the archaeological team was able to collect to involved areas was always preceded by the archaeological team to report the monuments to those responsible for construction. A permanent dialogue between the Ambatovy team and that of SNC-Lavalin and its contractors helped to establish a climate of trust.

Site va lor isat ion work a nd archaeological investigation must be pursued in order to obtain the social and cultural license from the population to whom the company is accountable. It is important and urgent to show them that we have fully complied with all their requirements. All cultural and sacred sites have been identified and inventoried. The Ministry of Culture and Heritage is expecting concrete action for the protection and valorisation of the sites, the most important of which will be subject to rehabilitation or even a development project with the involved communities.

The results of the archaeological works will be the subject of a scientific publication which is being developed

by Professor Jean-AimÊ Rakotoarisoa who created and led Ambatov y’s archaeological team between 2005 and 2009.

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The environmental

imperative The entire Ambatovy project is located in a biodiversity hotspot in Madagascar, so the minimisation of its impact and the restoration of the mine site are interlinked

written by: Becky Done & Martin Ashcroft research by: Robert Hodgson

aMbatovy

T

o approach the inevitable environmental issues that accompany a project of this size and scale, Ambatovy is employing two strategies.

The first is to mitigate impacts through responsible engineering and technology; and the second is to offset residual impacts with conservation efforts.

Management plans have been produced in respect of water, air, noise, soil, waste, flora, fauna and aquatic resources, and are designed to preserve the environment and advance scientific knowledge. The organisation has committed to implement adaptive, environmental management plans to ensure compliance with national and international standards throughout construction, operations and closure; to minimise all residual impacts through the implementation of a best-practice mitigation hierarchy and offsets programme; to manage environmental risks by enhancing stakeholder involvement through transparency, continuous consultation and timely feedback with the public on emerging environmental issues; and to track operational performance and emissions to ensure that compliance levels are met and that operational control systems are functioning optimally.

Ambatovy works in close collaboration with the ONE (Office National pour l’Environnement), which must approve all environmental plans before implementation.

ONE reviews Ambatovy’s performance on a regular basis through intensive field verification, making recommendations

special report | 315

Industrial Magnetic Solutions

IMT Vertical Magnetic Conveyors are used to convey ferrous materials vertically instead of using traditional bucket elevators or incline belt conveyors.

• Power fluctuation or failures will not affect the magnetic field • Guaranteed magnetic strength for the life of the application • Minimal footprint compared to traditional conveying systems • No power consumption for magnetic bed • Low maintenance • Simple to service • Minimal capital cost • Dust suppression • Reduced product degradation

Innovative Magnetic Technologies Inc. #1 3308 Appaloosa Rd. Kelowna, BC Canada V1V 2W5 Tel 250-491-5806 | Fax 778-753-6234

www.imt-inc.com

aMbatovy for improved compliance and imposing sanctions if warranted.

“The entire project is located in a biodiversity hotspot in Madagascar, so the minimisation of our impact and restoration of the mine site are interlinked,” explains environment manager Andrew Cooke.

“The fundamental point to note is that we apply a tool called the ‘mitigation hierarchy’ which is the standard approach required of projects funded by the World Bank, for example. This means that firstly,

we do our best to avoid impacts—and that includes the project design; then we try to minimise any impacts from our construction and operations; and finally we will restore any impacted sites.”

Ambatovy’s Biodiversity Management Plan (BMP) encompasses scientific conservation actions for orchid targeted flora, fauna and aquatic resources, using the following key objectives: no net loss of biodiversity and preferably a net gain; no loss of species and no net reduction in

iNNovative MaGNetic tecHNoloGies iNc. iMt designs, manufactures and markets innovative permanent magnetic equipment for industrial markets worldwide. iMt supplied ambatovy with six permanent magnetic conveyors that vertically convey the nickel and cobalt briquettes. iMt’s Vertical Magnetic conveyors are utilized to convey ferrous materials vertically instead of using traditional bucket elevators or incline belt conveyors. some of the advantages of this conveying method are; minimal footprint compared to traditional conveying systems, guaranteed magnetic strength for the life of the application, no power consumption for magnetic bed, low maintenance, simple to service, minimal capital and installation costs and reduced product degradation. the

height of the Vertical Magnet conveyors supplied to ambatovy ranged from 6,500mm (21ft) to 21,100mm (69ft). the iMt product line consists, but isn’t limited to, suspended plate Magnets, cross Belt separators, Magnetic Head pulleys, plate separators, XHD in-line chute separators, Vertical Magnetic conveyors, Drum separators, Vibratory Magnetic separators, and Magnetic rakes. iMt’s product line is continuously expanding due to its innovative approach to solving industrial challenges. iMt equipment is available in ceramic (Ferrite) or rare earth (standard or high temp) configurations. www.imt-inc.com

special report | 317

Electrical Services

... to the UK and Worldwide.

Different languages, different measurement systems, different business cultures... whether it’s within Europe or around the world, international contracts present unique challenges.

R&M’s worldwide distribution network is far reaching with branches in Kazakhstan, Azerbaijan and in Dubai UAE, we are successfully servicing major International companies with long-term contracts covering oil & gas exploration and production, petrochemical applications, marine maintenance and mining.

“R&M ‘Exports Division’ has expanded its already vast global list of export destinations in successfully securing electrical contracts for the largest nickel mine in the world – Ambatovy – based in Madagascar”.

R&M Exports Division Unit 1 & 2, 362A Spring Road, Sholing, Southampton Hampshire SO19 2PB Tel: 023 8068 5668 Fax: 023 8068 5673 Email: exports@rm-electrical.com www.rm-electrical.com

« Your

YOUR FRESHNESS « Your freshness I S Ois our U Business” R BUSINESS OCEFROID is an HVAC firm located in

OCEFROID is an HVAC firm located in Toamasina, Madagascar, specialized in Toamasina, Madagascar, specialized installation and maintenance. in installation and maintenance.

We developed a strong partnership with Ambatovy Project since 2009 and OCEFROID is now handling more than 70% of HVAC facilities for the entire project.

We developed a strong partnership with Ambatovy Project since 2009 and OCEFROID is now handling more than 70% of HVAC facilities for the entire project.

E-mail: gefrank2000@yahoo.fr Office: +261 20 53 307 02 Mobile: +261 32 07 936 79

E-mail : gefrank2000@yahoo.fr Office : +261 20 53 307 02 Mobile : +261 32 07 936 79

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aMbatovy

lemur, propithecus diadema

“one exaMple of aMbatovy’s work to preserve biodiversity is its leMur ManageMent prograMMe” the population of any endangered species; minimised impacts on flora, fauna and aquatic resources; increased conservation of rare habitats; priority habitat viability assured by maintaining or increasing ecosystem connectivity; and close links between Ambatovy’s biodiversity activities and regional initiatives.

One example of Ambatovy’s work

to preserve biodiversity is its lemur management programme, which is designed to maintain population viability of Madagascar’s most famous inhabitants within the mining area. To do this, Ambatovy has been employing the capture, mark and radio-track technique. Since 2007, a total of 140 lemurs belonging to seven species living in and around the cleared forest

special report | 319

COWAN INTERNATIONAL Since 1954 Cowan International’s reputation has been built on delivering solutions and surpassing expectations.

Our clients keep coming back to us with their staffing needs because they know we are committed to finding qualified, top performers to fill their roles. Finding the right caliber professional to fill a job at the right time is our specialty and it’s what our clients demand.

Cowan works in partnership with both clients and candidates to put people in their sweet spot. We know candidates fear getting lost in a sea of applicants.

Our global team collaborates 24/7 to represent your best interest. Whether you are in Thailand, Brisbane, BC, Washington

or Johannesburg we have professionals at arm’s length, ready to answer your questions and get you into your dream job.

We pride ourselves on building long-term relationships and providing world-class service. Cowan doesn’t just get the right person in the right job. We make travel arrangements, book medicals, facilitate family adaptation. We stay in touch long after a position has been filled, and we know when our clients are about to embark on a new project long before they call us.

Cowan provides human resource solutions to the global mining, metals and resources community. www.cowaninternational.com

Cowan International is a Canadian owned mining recruitment agency serving clients across the globe since 1954. We specialize in locating top talent for hard-to-fill positions. Long established, Cowan is a leader in recruitment for domestic and overseas mining projects and operations. www.cowaninternational.com

aMbatovy

technician tracking lemurs

and refuge areas have been equipped with habitat connectivity, allowing lemurs to radio collars. This has enabled technicians cross trails and roads cut by mining activity. to follow and monitor 181 individual lemurs A community-level assessment also helped (carriers of radio collars and members of evaluate local hunting pressure on wildlife the groups without collars) and design suitable refuge from 48 groups. This radioareas. tracking methodolog y Since 2009, a total of enables the monitoring 35 new-born lemurs have of lemur movement and been observed within behaviour and determines Ambatovy’s conservation whether they are able to areas. Of these, 16 came number of lemurs from groups that were adapt to a new home range currently being displaced to special refuge over time. Tree-top bridges monitored areas. The relatively high were installed to maintain

181

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Ut enim ad minim voluptate rodent andmagna carnivore species.

A conservation essethan cillum14,000 dolore eu fugiat

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We are particularly adept at servicing the mining sector, offering a comprehensive range of fit-for-purpose fuels, lubricants and greases to some of Africa’s biggest mining houses for the last 80 years.

Drawing upon our innovative services and technical expertise, we are constantly looking to adapt our offer to our customers’ evolving needs; to hone in on exactly those products and services which make all the difference to our customers’ businesses, and by the same token, to our continued market leadership.

“We look upon Vivo Energy not just as a reliable fuel and lubricants supplier, but as a partner of choice – a company that goes beyond the call of duty, putting their technology leadership and technical expertise at our disposal in helping us reduce our costs, get better use from our machinery, and improve the overall efficiency of our operations,” says Ambatovy.

www.vivoenergy.com

NOVEMBER 2012| 323 |2 special report

MINING AND MINERAL PROCESSING EQUIPMENT ITT has over 160 years of experience in providing lined slurry and process pumps, valves, control and preventive condition monitoring solutions for mining and mineral processing.

ITT has an extensive installed base of Goulds Pumps equipment at Ambatovy mine site and plant site, mainly to pump abrasive slurries and acids.

ARIS in Madagascar is ITT Goulds Pumps distributor and provides fluid technology and industrial process equipment, parts and services.

Aftermarket Services Together, ITT and ARIS are partnering in Madagascar to provide plant performance solutions for rotating equipment locally and to best serve Ambatovy. www.gouldspumps.com

aMbatovy

the endangered mantella aurantiaca

(54 species) and amphibians (55 species) and it will continue until forest clearing operations have been completed.

In particular, a specific conservation programme has been developed for the endangered frog golden mantella (mantella aurantiaca). Ambatovy has supported regional surveys to identify the distribution of the frog and its critical habitats and is

working with experts to identify the steps required to maintain viable populations in the mine area. Ambatovy considers mantella aurantiaca as a flagship species for its conservation efforts.

As well as its animals, Madagascar is also home to some rare or unique species of plants, so Ambatovy also has a flora management programme, too. Excavating

“a specific conservation prograMMe has been developed for the endangered frog golden Mantella (Mantella aurantiaca)� special report | 325

YOUR RISKS, OUR EXPERTISE !

TARGE RISQUES MANAGEMENT is the first and most important private organization in risk management in Canada.

Recognized by the ministry of education, the Canadian military forces and the Nuclear power plant, our team of experts and teachers is made of competent and experienced emergency responders. Our engagement to our customers is to provide them with the highest level of protection against hazard by an integrated offer of expertise, training, emergency response, research and development. The holders, the upper management and the team members know that our customers are better protected.

Phone: 1-450-258-4460 | E-mail: info@targerm.ca | www.targerm.ca

A company working in partnership with Ambatovy to produce service and quality to the industry.

We are a company with high levels of management to ensure industry standards are conformed to at all times Specialities • Health and safety • Site management / supervision • Full Documentation and analyses of project Areas of working • Mainstream Construction - Independent teams able to undertake any level of construction • Mainstream Electrical - High Medium to Low voltage, Instrumentation, IT/fibre fire systems • Mainstream Mechanical HVAC and all pipework

www.mainstream-group.org

I N T E R N AT I O N A L

aMbatovy the ore requires forest tarGes risK MaNaGeMeNt clearing, so, with the help targes risk Management is proud to train all emergency of the Missouri Botanical responders working on the ambatovy project. We are leaders Garden, Ambatovy has in industrial risk management. our integrated approach of identified plant species expertise, training and interventions provides our customers known to exist only within with responsible protection solutions that allow them to the mine footprint and achieve better results. Your risks, our expertise! www.targerm.ca one or two other sites in Madagascar. These plants are categorized as Species of Concern (SOC).

For these SOCs, Ambatovy has developed a comprehensive ex-situ conservation program including whole-plant salvaging, seed collection, plant propagation, and the development of living collections for progressive rehabilitation of the mine footprint. Searches for viable populations of SOCs are also being conducted in the mine conservation forests. This search effort is ongoing and has resulted in the progressive reduction in the number of species requiring ex-situ conservation. From an initial list of 173 SOCs, the number still requiring special salvaging has been reduced to eight species and is expected to descend to zero as the offsite surveys continue.

Another area of environmental concern for Ambatovy is waste minimisation and recycling. Where recycling options aren’t orchid

“as well as its aniMals, Madagascar is also hoMe to soMe rare or unique species of plants� special report | 327

Our proximity to the mining world has helped our Cegep to recently develop two major training projects for the Xstrata Nickel mining corporation in New Caledonia, Koniambo project, as well with the Sherritt Corporation for its Ambatovy (Madagascar) project. This was one of our main projects, and further, we continued working with Sherritt for implanting their training center in Toamasina.

aMbatovy

plant conservation

available, the responsible Waste at the plant site is disposal of waste is carried mainly mineral pollutants ranging from acids to out. The project complies alkalines. Like all mining with all the international projects, the operation regulations relating to species of concern generates tailings, the hazardous waste, which (sOc) identified within sterile material remaining is treated appropriately— the mine footprint after the nickel has been sometimes by incineration, extracted. These materials sometimes by export. On the whole, however, the are neutralised so they’re no project isn’t a great generator of hazardous longer acidic, and then they are pumped to a waste: essentially earth is being extracted secure tailings lake which will eventually be from the land and processed into nickel, replanted and covered over with vegetation and the project is not generally dealing at the end of the project life. with complex organic pollutants.

Ambatovy does generate water waste,

173

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PURCEE INDUSTRIAL CONTROLS LTD. Thank You to Ambatovy for all your business!

One stop shopping for all your electrical needs and support!

Purcee Industrial Controls specializes in the single source supply of electrical and instrumentation equipment and related technical support for international projects. Once the project is complete we also provide ongoing supply and support for all products sold by us.

Our primary focus is on international project supply and our customers include mining and manufacturing companies in addition to a wide range of oil, gas and petrochemical companies.

Purcee has supplied equipment to Africa, Central America, South America, North America, Asia and Eastern Europe

Purcee’s mandate is to assist industry by providing a reliable supply source of top quality products with strong technical pre and post sales support.

We give you the confidence that your equipment or parts will arrive on-site as ordered and on-time.

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aMbatovy

orchid

“after the Mine closes all areas will be restored and replanted in order to blend in with the surrounding forest as far as possible” which is enriched by a number of different minerals because of the extraction process.

This is discharged into the ocean using a diffusion mechanism, or outfall. By this means a high dilution factor is achieved, which means Ambatovy has a relatively small zone of impact from the outfall— only a matter of tens of metres—and outside that zone, levels of minerals are potentially reduced to the ambient levels of seawater.

“This way we avoid impact in coral reefs and fisheries,” confirms Cooke.

Mine closure, of course, is always a major concern in terms of aesthetics and functionality. “We have a mine footprint of about 1,500 hectares which is a series of pits, roads and other areas,” says Cooke. “After the mine closes these will all be restored and replanted in order to blend in with the surrounding forest areas as far as possible.”

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Frog, mantella crocea

aMbatovy There are a lot of technical challenges involved in this process, however. Ambatovy is working on an ultramafic site where the soils are very alkaline, so it is taking special measures to restore soil and then re-plant it with native species on an ongoing basis.

Ambatovy also has in place a comprehensive communit y-based restoration plan which looks closely at the restoration of the mine site in terms of benefits to the region. The south end will consist of community forest and production forest, and the north end will be biodiversity forest, designed to replace loss of ecological function—in other words, it will be habitat for lemurs and other wildlife. The mine site is surrounded by an area of forest that is around three times the size of the mine site footprint itself, and this forest is unoccupied.

“It’s near-primary forest and it will be maintained as a conservation area,” says Cooke. “The fact that we have a green ring around the footprint will help restoration over time, and this is an important part of our restoration strategy.”

Ambatovy is open to visitors, so if you want to see the operation for yourself, you can. Welcoming visitors helps to consolidate the process of transparency.

Before setting out on a guided tour, visitors are briefed on Ambatovy’s activities as well as its commitment to social and environmental stewardship.

For more information about ambatovy visit: www.ambatovy.com

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