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BusinessExcellence Weekly ISSUE No. 32 | www.bus-ex.com

SPECIAL REPORT: The largest investment project in the history of Madagascar

PALTRACK SOUTH AFRICA

SEADOG Commercial Diving School

Minera Florida: Yamana Chile

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contents

8 16

6 EVENTS

BASRA OIL & GAS INTERNATIONAL EXHIBITION & CONFERENCE

A special preview of Iraqâ&#x20AC;&#x2122;s major international event.

8 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.

16 SEADOG Commercial Diving School

Educating the next generation

The provision of commercial diver training is contributing towards South Africaâ&#x20AC;&#x2122;s development as a hub for oil and gas activities.

24 Minera Florida: Yamana Chile

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.

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business showcase

32 42

32 Afrifresh Group A fresh approach

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

42 Paltrack

The catalyst within the fresh produce supply chain

A comprehensive and integrated portfolio of solutions for the fresh produce supply chain.

48 one network in africa

Think community not supply chain Looking ahead, a network model is the way forward for authentic supply chain and logistics collaboration.

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54 Fero Group

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.

56 Hein, Lehmann Canada FLIP-FLOW, WAY TO GO

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

58 special report: Ambatovy

the largest investment project in the history of Madagascar

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EVENTS

Iraq: The Hub of BASRA OIL & GAS INTERNATIONAL EXHIBITION & CONFERENCE 6-9 DECEMBER 2012 BASRA INTERNATIONAL FAIR GROUND, IRAQ The 3rd Basra Oil & Gas International Exhibition & Conference 2012 will be held in Basra from 6 to 9 December 2012. Internationally acclaimed experts from across the oil & gas sector will be addressing the challenges and opportunities in the Iraqi market. Speakers from Weatherford, Gulf Energy, South Oil Company (SOC)

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and Penspen will put forward their views on technology, health & safety, laws and regulations, petrochemicals and many other topics related to the conference theme “Iraq: The Hub of Future Energy.” Industry veteran, Mr. Falah Al-Kahawaja, ex-director general of the State Company for Oil Projects (SCOP), will manage the conference, bringing to the event his wealth and experience of Iraq’s growing influence. “This conference provides an unrivalled opportunity for the oil and gas industry to understand more about Iraq and the expectations for the future,” he said. “It is a complex market to navigate, and we want to provide a platform that gives local, regional and international companies interested in doing business in Iraq somewhere to share knowledge, experience and insight.” Though the data are still unreliable, the current government thinks that Iraq’s oil reserves are the largest in the world, amounting to upward of 350 billion barrels. Even the independently confirmed levels of 143 billion barrels put Iraq at third place in the world league. With a total of 79 fields, however, only 23 are currently producing, signifying significant potential for the future development.

Special preview

of Future Energy

Iraq is now planning to double its refinery capacity by 2017 and a vast number of oilfield service, development and extraction projects will be put out to tender by SCOP in the near future. One of the biggest projects coming up is the new refinery to be built at Kirkuk, in Kurdish northeast Iraq. SCOP will be offering the construction of the Kirkuk oil refinery to international companies on a build, operate and own (BOO) basis in December 2012. The first Basra International Exhibition & Conference welcomed 218

participants, and the second saw 17,000 visitors and 411 participants (including exhibitors, delegates and sponsors), the largest oil & gas event ever held in Iraq. This yearâ&#x20AC;&#x2122;s exhibition will host over 400 companies, showcasing the very latest products and technologies. For more information about Basra Oil & Gas International Exhibition & Conference visit: www.basraoilgas.com

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Building a better

world 8 | BE Weekly

DORCE Holding 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

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26.000 person residential city, Al Mafraq, UAE

DORCE Holding

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

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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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Educating t next generation Managing director Bridget Thomson talks about how the provision of commercial diver training is contributing towards South Africaâ&#x20AC;&#x2122;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

the generation

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The quiet waters of Saldanha Bay provide the perfect introduction to learner divers

SEADOG Commercial Diving School

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

“Situated within Saldanha Bay, SEADOG’s unique location allows trainees to develop under realistic conditions” 20 | BE Weekly

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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written by: Will Daynes research by: Richard Halfhide

Going for go 24 | BE Weekly

old

Minera Florida: Yamana Chile

The Minera Florida mine continues to grow and evolve, 26 years since operations commenced BE Weekly | 25

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

Minera Florida: Yamana Chile

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

FOOD AND

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Minera Florida: Yamana Chile to over 842,000 proven Quimetal and probable ounces and a Quimetal is a well-known Chilean company with over further 529,000 measured 60 years of experience in fabrication and commercialization and indicated ounces. of specialized chemical products used in various industries Levels of silver meanwhile worldwide. For the mining industry, Quimetal offers sodium have increased to 6.3 million bisulfite and sulfur dioxide (SO2), manufactured only with proven and probable ounces selected raw materials and produced under the highest quality standards. For further information please and 2.8 million of measured contact us at: and indicated ounces. comercial@quimetal.cl 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 equivalent ounces per year to the mineâ&#x20AC;&#x2122;s production volumes over the next five years. New mineral resources outlined in the main core of the mine during 2011 also contributed significantly to a 46 percent increase in its total measured and indicated volumes. Over the course of 2011 near-mine exploration focused predominantly on The mine has an estimated strategic delineating extensions to the ore bodies in life of over eight years

â&#x20AC;&#x153;Located 73 kilometres south of Santiago, Minera Florida is an underground gold and silver mine that began operations in 1986â&#x20AC;? BE Weekly | 29

Original discovery teams are still involved in exploration and development

the Portzuelo, El Robie and Tribuna zones. During 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 dieselfired 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

“During 2012, exploration has extended south of the current mining operation to Yamana Gold’s newly acquired Mila claims” 30 | BE Weekly

Minera Florida: Yamana Chile

Construction in progress

Exploration drill holes

ramp up to design capacity will be augmented by the delayed in part due to ramping up of the processing the installation of a zinc of relatively low-cost recovery plant that was historical material. not initially contemplated. Internally, the recently strengthened leadership The zinc recovery plant Of proven and probable team that has been is expected to further gold reserves within established at senior improve costs through the the mine application of additional management level in Chile zinc by-product credits. continues to focus on the Overall costs meanwhile mineâ&#x20AC;&#x2122;s operations, making are expected to improve when taking into the expansion and success of Minera account the addition of tailings production Florida their utmost priority. given the lack of mining costs associated with the process of re-treating tailings. In the For more information about months to come, it is believed that mine grade Minera Florida: Yamana Chile visit: will remain consistent with Yamana Goldâ&#x20AC;&#x2122;s www.yamana.com estimates, while overall site performance

842,000 ounces

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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

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

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 Weekly | 37

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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The th

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Paltrack

e catalyst within he fresh produce supply chain Paltrack provides a comprehensive and integrated portfolio of solutions for the fresh produce supply chain, enabling real time collaboration through technology research by: Gareth Hardy

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Conventional fruit shipping

Paltrack

altrack (Pty) Ltd is a South African owned company that provides supply chain solutions to the local and international produce industry. Its majority shareholder is the IMPERIAL Group. The Paltrack business was formed when the IMPERIAL Group acquired Capespan’s Distributed Systems (CDS) department in 2000. A commercial solution was created, whereby strategic focus areas for supply chain visibility were defined. A suite of point solutions was developed to service the individual supply chain entities – from producer to port – providing an integrated network solution. Paltrack’s information collection and delivery services (ICDS) consolidate and distribute electronic data sourced from various activity points in the logistics chain. Transaction data between supply chain partners is available just in time. This enables operational decision making during execution of the outbound supply chain; a critical enabler within a perishable export supply chain. ICDS handles millions of transactions per year on behalf of industry level and individual parties. Its central code registration (CCR) solution offers a mechanism to centrally register and

maintain master data used throughout the entire fruit production and export industry. The emphasis is on registering codes once and automated distribution to all thereafter. South African export channels have proliferated into hundreds. From individual producers exporting under their own brands, to co-operatives between multiple producers, to trading companies consolidating produce from multiple sources under their own brand names. This arrangement encourages competition with resulting quality and innovation benefits. Paltrack’s solutions to the industry are continually evolving. It is currently a comprehensive and integrated portfolio of solutions, serving individual entities within the industry, and industry-level regulators tasked with food safety and certification of food supply processes. Paltrack’s solutions allow its users to manage, track and trace their products throughout their business, and thereby meet the high standards required from their global customers. The fruit focused solutions include: AGRIPORT - A logistical and financial management solution aimed at the export agent.

“The end-state should be a real time value network where all trading partners can easily connect and share relevant information” BE Weekly | 45

solutions to the ions and provide these lut so gy olo hn tec n tio es informa jority Paltrack (Pty) Ltd creat owned company with ma an ric Af uth So y oll wh se agreements. It is a fruit industry under licen l Group. shareholder, the Imperia uth African ated services to the So rel d an ms ste sy n tio pplier of informa mpliment the Paltrack is the leading su been established to co ve ha s ice rv se y lar cil number of an and setting of fruit export industry. A to information provision ed at rel y inl ma e ar s ese service software solutions. Th mation exchange. standards to ease infor

Exporting

Business Rules & Standards

Paltrack

Fruit picking

PALPRINT - A label printing solution that produces pallet, carton, punnet and thrift bag labels. PALFARM - A label printing and document generation solution for the farmer. PALPACK (STD / PRO) â&#x20AC;&#x201C; A pack-line management solution suited for the pack house environment. PALSTORE (STD / PRO / EXP) - A warehouse and stock management offering. PALPORT (STD / PRO / EXP) - An extension of PALSTORE that focuses on conventionaland container vessel loading. PALINFO - ICDS; data warehouse and CCR services Paltrack (Pty) Ltd also offers a range of additional services that range from bespoke development to consultation and training.

Paltrack is constantly innovating and believes that the next focus areas should be greater collaboration between all the role players that make up the industry and reducing the need for masses of paper and human intervention still required in the export certification processes. Wet signature replacement, backed by an integrated DMS solution with all-hour automated export approval processes; have to be the next step towards sustained competitiveness. The end-state should be a real time value network where all trading partners can easily connect and share relevant information. For more information about Paltrack visit: www.paltrack.co.za

BE Weekly | 47

48 | BE Weekly

one network in africa

Think community not supply chain Looking ahead, a network model is the way forward for authentic supply chain and logistics collaboration research by: Gareth Hardy BE Weekly | 49

One Network in africa

ver the years, industry has seen various shifts within the concept of how to name and define how “products are moved”. The concept of The Value Chain begins with an emphasis on The Supply Chain. In recent time there has been an increased focus on the Demand Chain with ever increasing sophistication leading to companies driving to a Demand Driven Value Chain (DDVC). In a DDVC, suppliers and retailers let customers drive their actions. Yet product and accompanying information, is not moving in a way that is very chainlike. Instead, we are viewing a complex web of cross-connections that either directly or indirectly link every participant. While the concept of a chain may have worked in a paperdriven, more vertically integrated business environment and the demand driven model ensured many benefits, the future holds an even further improved model.

UNEXPLORED BENEFITS THROUGH A NETWORK MODEL The Network model is the future. It moves with the paradigm shift of “in the cloud’ technology. Today, far too much information is available and decisions required are far too granular for human planners to be effective. Software as a Service (SaaS) allows for real time decision making, utilising the vast amount of information in the cloud and improving the management thereof to create visibility throughout the network. Currently members in the cloud use discrete enterprise systems with little or no ability to communicate with any other

systems (even those within the same company). This lack of upstream and downstream visibility typically means that retailers have little idea what conditions the manufacturing plants are facing at a particular time and vice versa. THE MOVE TO THE REAL TIME VALUE NETWORK™ (RTVN™) Imagine a network-based environment that provides instantaneous and seamless communication among members, and even provides execution orders that will allow the most far-flung or tangential nodes of the value network to align operational objectives with minimal human interaction. A community of companies oriented toward the end consumer. In other words, a RTVN. Only a platform-enabled RTVN is able to model the complex web of real-world relationships found in today’s value chains. The RTVN is an extremely responsive cloud-based network where informational lead times are virtually eliminated and physical lead times are minimised. The RTVN precisely models and connects you to your own unique supply chain. Whether in whole where, for example every node from retailers to raw material suppliers - or in part such as for a logistics and transportation network. It provides value across multiple industries and business roles and initiatives. WHY IS THE RTVN SO POWERFUL? The rapid growth of the RTVN will be fuelled by network effects. The network effect will begin to take over as the cost of not connecting

BE Weekly | 51

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with the network becomes greater as each additional company joins. The success of an RTVN model hinges on finding the right balance between capturing the complexity of real-world relationships found in value networks without being too open. A networkbased platform is needed that will allow each member of the network to easily connect and share the right kind of information. There are signs that the RTVN revolution is already moving. In February of 2012, Gartner reported that companies that implemented demand driven value networks grew revenue faster, achieved more than 15% higher perfect-order rates and reduced levels by as much as a one-third when compared to their peers with traditional, cost-focused value chains. Gartner also recognised that many companies still lack timely, accurate networkbased data as well the ability to execute on

that data. They predict that by 2016, half of their Top 25 will begin to exploit intraand enterprise network-based data through a combination of predictive analytics autogenerated actionable recommendations. THE RTVN IN ACTION One Network is an enabler of responsive and agile supply chains. Making value chains, smarter, leaner and far more demand driven. One Network’s RTVN lets your supply chain become as real time as you want it to be. Retailers, suppliers, transportation companies, 3PLs, 4PLs and raw material producers— all have found value in One Network’s RTVN. For more information about One Network in Africa visit: www.e-Logics.co.za

BE Weekly | 53

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

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

54 | 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.â&#x20AC;? 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 WAâ&#x20AC;&#x2122;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

be directory | 55

FLIP-FLOW, WAY TO GO Hein, Lehmann Canada sells and services the Liwell® Flip-Flow Screening Machines

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.

56 | 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

be directory | 57

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

special report: Ambatovy

special report: ambatovy

62 the project fact guide

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

68 Executive insight

68 96

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

74 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.

96 Local opportunities

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

60 | Special report

contents

120

120 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.

144 Respecting cultural heritage J.A. Rakotoarisoa and Erick Randrianasolo discuss the discoveries made by Ambatovyâ&#x20AC;&#x2122;s archaeological programme.

150 The environmental imperative

144

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.

150 Special report | 61

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,

62 | 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.

Special report | 63

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.

Special report | 65

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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 lâ&#x20AC;&#x2122;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 Ambatovyâ&#x20AC;&#x2122;s conservation areas. Thirty three species of mammals other than lemurs are also monitored by the project. Ambatovyâ&#x20AC;&#x2122;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.

Special report | 67

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.

Special report | 69

executive insi ht What do you consider to be your major achievement (in life or business)? I donâ&#x20AC;&#x2122;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

â&#x20AC;&#x153;The biggest mistake is indecisiveness, as this prevents you from learningâ&#x20AC;? Special report | 71

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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

Special report | 73

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

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.

Special report | 75

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

78 | Special report

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 Ambatovyâ&#x20AC;&#x2122;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 Madagascarâ&#x20AC;&#x2122;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 Madagascarâ&#x20AC;&#x2122;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

tonnes

Special report | 79

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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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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.

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

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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

adauto

Cummins is a diverse, community-minded technical leader in the design, manufacture, sales and service of diesel engines, power generation equipment and related components. Products include diesel electrical generator sets, engines, alternators, transfer switches and control systems. Cummins Power Generation matches the right generator set and transfer and control technologies with your power needs. With our pre-integrated onsite power system, all the power system components are designed to work together as a whole. That’s The Power of One™. Cummins Power Generation meets prime power needs by providing economical and clean prime power for various applications such as industrial or mining installations. We design and build the solution that meets your needs, including:

pecialized solutions for •S challenging environments • Equipment reliability and durability •O ptions in prime mover technology diesel or natural gas reciprocating engines •S ystem paralleling, remote operation and monitoring using our PowerCommand® controls technology •R ental power for immediate or temporary needs • Dependable aftermarket support We demand that everything we do leads to a cleaner, healthier and safer environment. 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. www.cumminspower.com

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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 yâ&#x20AC;&#x2122;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 Ambatovyâ&#x20AC;&#x2122;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 Groupâ&#x20AC;&#x2122;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!

sales@gifproducts.co.za | www.gifproducts.co.za

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. North West Technology Inc. P.O. Box 1230 | Summerland, BC CANADA V0H 1Z0 Tel: 250-494-3294 | Fax: 250-494-3215 email: info@northwesttech.ca

www.northwesttech.ca

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 facilitiesâ&#x20AC;&#x201D;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 Reflex Blue

Hex. Cyan

Cool Gray 11

spots

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 | 91

PLACEMENT and MANAGEMENT of HIGHLY SKILLED FILIPINO MANPOWER since 1986

The right PEOPLE in the right PLACE at the right TIME Tel: (+632) 725 9979 ; Fax: (+632) 725 9980 - Email: manpower@euroasia.com.ph www.euroasia.com.ph

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

Olivier Le Clezio

 0027313121305 / 0027825700414  exports@austral.co.za

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 EPIâ&#x20AC;&#x2122;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

â&#x20AC;&#x153;In 2010, ALBI created a farm school to train former construction workers who might decide to return to or embark upon agricultural activitiesâ&#x20AC;? Special report | 93

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

major benefit from Ambatovyâ&#x20AC;&#x2122;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, engineering, health and safety, environment, finance, administration, external relations, maintenance and logistics, and potentially others. The approach of the companyâ&#x20AC;&#x2122;s training department has been to combine self-taught training, computer-based learning, and instructor-led classes, enabling employees to develop skills on the job and paving the way for professional growth. The training

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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| |992 Special report

Ambatovy department comprises a technical experts from team of 35 professionals, Canada. These courses help including trainers, sectorto transfer skilled trades training coordinators and to the local workforce, equipping employees with training advisors. the knowledge to become The Ambatovy Training electricians, millwrights, Centre in Toamasina has a pipef it ters, welders, fully equipped workshop for instrument technicians, operations and maintenance training. All operators are Maintenance training boilermakers and planners. instructed by Malagasy Courses consist of six engineers, who learned their craft from to eight months of technical training, Ambatovyâ&#x20AC;&#x2122;s expatriate technicians, while followed by additional courses related maintenance subjects are taught by to health and safety, language skills, IT,

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

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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 and on-the-job learning. Early last year Ambatovy COROI has close to 50 years experience in managing launched its Technical hazardous products. Excellence Program, a We service the industry being water treatment plants, training initiative created power generators, but also waste management. for graduates aged 17 Safety is and remains paramount. Over the years we to 22 from technical invested massively in safe storage platforms , equipments, human resources,â&#x20AC;Ś to insure our sites, technologies and colleges in the region of people respond to the highest standard. Atsinanana. The 18 month Hazardous chemicals are managed in such way, the onsite course, followed by a employees and the surrounding populations are not at risk, t wo-month internship, the facility operates at its best level and the environment is designed to help new is preserved for the present but also coming time. Coroi graduates to develop has this experience and is able to assist you wherever your industrial operating skills business is. mining.services@coroi.fr 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 self-sustaining, well-equipped community that will be able to flourish long after the mine closes in thirty years, and this effort also extends to local businesses contracted to supply services to the company. Other measures to help smooth the

COROI

17 to 22 Age of graduates from Ambatovyâ&#x20AC;&#x2122;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| 105 |2 Special report

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

Ambatovy

Maintenance at the refinery

head of Ambatovy’s Business Improvement of their products and services, which Programme. “Although there is a smaller will help make them more competitive mining operation in the south operated in the marketplace. by Rio Tinto, there is no project of this Now one of the largest consumers of size anywhere in the country. So finding products and services in Madagascar, contractors was difficult Ambatovy works hard to because there were identify local companies limited businesses within capable of responding to the country that had the company and market needs. This approach has provided necessary experience.” A LBI of fers sma ll, a much-needed boost to medium, a nd micro Madagascar’s economy and enter prises (SMMEs) entrepreneurs. Ambatovy training and capacity had signed more than Amount signed in local bu i ld i ng a i med at $1.2 billion in local contracts contracts by 2010 improving the quality by the end of 2010. In 2011

$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 alone, Ambatovy spent $220 A mbatov y prov ides million on local purchases. uniforms to each employee, More than 500 SMMEs consisting of two shirts, two pairs of trousers, and across 54 sectors have been two coveralls. Rather than awarded purchase orders by selecting a large industrial Ambatovy; meanwhile, ALBI has more than 2,000 local supplier, Ambatovy decided businesses registered in a to award an annual contract database used by Ambatovy for 4,000 uniforms to two and its sub-contractors. Uniform manufacture small sewing companies based in Toamasina which ALBI has already assisted employment-generating enterprises each employ 40 people. ALBI helped engaged in the manufacture of uniforms, to select these contractors and provides drum and pallet fabrication, egg production, them with ongoing technical and and agricultural produce marketing. administrative support.

International SOS With a strong presence in Africa and over 25 yearsâ&#x20AC;&#x2122; 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. Â International SOS has 27 Assistance Centres worldwide that provide 24/7/365 medical assistance to many companies globally. International SOS is the worldâ&#x20AC;&#x2122;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

â&#x20AC;&#x2DC;Delivering expertise through experienceâ&#x20AC;&#x2122; - anon

Ambatovy

Local companies manufacture the uniforms

A not her ex a mple forestry and factory work of maximising local and 150 in transportation opportunities relates to and handling. In addition to the manufacture of pallets. creating stable employment, Using wood from a pine this approach has other forest near Moramanga, advantages including Ambatovy uses methods improved environmental Contract awarded to two consistent with ecomanagement, efficient local companies certification standards to use of natural resources, harvest the wood required and sustainable forestry for the manufacture of up stewardship. to 140,000 pallets per year at full plant Since 2008, the company provided capacity. The pallets are fabricated in local SMMEs with more than 4,000 Toamasina and used for the shipment of hours of mentoring and 5,700 hours of Ambatovy products. A total of 950 jobs technical training in accounting, project have been created by this initiative; 800 in management, leadership, quality control,

4,000

uniforms

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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 contract Lorem administration, ipsum dolor minim veniam, quis nostrud procurement, sit amet, environment, consectetur exercitation ulla mco health and safety, adipisicing elit, industrial sed do laboris nisi ut aliquip ex relations, change and ea commodo consequat. eiusmod tempor incididunt growth management. Duis aute irure dolor in ut labore et dolore magna This Utlevel reprehenderit in voluptate aliqua. enimofad human minim investment to velit esse cillum dolore veniam, was quisnecessary nostrud give potentialullamco local suppliers eu fugiat nulla pariatur. exercitation laboris anisi chance to ex win business. Excepteur sint occaecat ut aliquip ea commodo Early on inDuis the aute project it consequat. irure cupidatat non proident, sunt was that when local dolorfound in reprehenderit in in culpa qui officia deserunt businesses were Excepteur invited to This is a caption this is a caption mollit anim id est laborum volnulla pariatur. bid work, cupidatat they failednon to sint for occaecat Lorem ipsum Practical dolor sittraining amet, get the sunt contracts, proident, in culpaeither qui officia deserunt consectetur adipisicing elit, sed do eiusmod because theyidlacked quality Lorem control,ipsum were year to add emphasis ut to this effort. is mollit anim est laborum tempor incididunt labore et “This dolore unaware to prepare a response to a bid, why we aliqua. set up the Centre dolor sithow amet, consectetur adipisicing magna Ut Business enim ad Training minim veniam, or up properly as incididunt a business. ut A (BTC),” says Perina, “primarily to train the elit,weren’t sed doset eiusmod tempor quis nostrud exercitation ullamco laboris in aliquip these businesses.” new initiative beenaliqua. implemented labore et dolorehas magna Ut enimthis ad staff nisi ut ex ea 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 report SEPTEMBER 2012| 113 |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

The BTC, located in Toamasina, offers courses on financial accounting, how to prepare a tender, quality control, and 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

“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 | 115

AMBATOVY Ambatovy tempor incididunt ut labore Lorem dolor ensures thatipsum the companies sit amet, consectetur et dolore magna aliqua. Ut concerned are both adipisicing and elit, able sed do enim ad minim veniam, qualified to quis nostrud exercitation eiusmod tempor incididunt do the work. ullamco laboris nisi ut ut The labore magna BTCetisdolore a collaborative aliquip ex ea commodo aliqua.between Ut enim Ambatovy, ad minim effort consequat. Duis aute irure veniam, quis nostrud the International Finance dolor in reprehenderit in exercitation (IFC) ulla mco Corporation and voluptate velit esse cillum laboris nisi Management ut aliquip ex Training dolore eu fugiat nulla ea commodo consequat. Africa (TMA). Introductory pariatur. Excepteur sint Duis aute dolor in sessions wereirure held in August reprehenderit in voluptate This is a caption this is a caption occaecat cupidatat non in Toamasina, Antananarivo proident, sunt in culpa qui velitMoramanga esse cillum dolore and by officials ALBI supported local business eu fugiat pariatur. from the nulla Supply ChainExcepteur sint officia deserunt mollit anim id est laborum. occaecat cupidatat non proident, sunt in ipsum dolor sit amet, consectetur Management Department (SCM/ALBI) of Lorem Ambatovy has also partnered local culpa qui officia deserunt mollit received anim id contractors adipisicing with elit, foreign sed donationals, eiusmodensuring tempor Ambatovy, during which the Centre est laborum. Lorem ipsum dolor sit amet, incididunt ut labore et doloreare magna aliqua. over 500 applications: 315 in Toamasina, 150 that the foreign nationals passing on to minim the locals. “Their consectetur adipisicing sed do eiusmod training Ut enim ad veniam, quis contract nostrud in Antananarivo and 54elit, 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| |1172 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

Ambatovy renewals are based on how well they carry out internal Glass Expansion designs, manufactures, and distributes training of nationals: most consumables and accessories for ICP spectrometers. These companies are pretty spectrometers are used in a wide range of applications successful,” adds Perina. involved in the measurement of elemental concentrations, from A mbatov y has also environmental analysis to mineral assay to quality control. established continuous Of the many spectrometer modules, Glass Expansion is focused on the sample introduction system. Its improvement t a rget s products are designed to provide high precision and for its contractors over accuracy. It also offers components and accessories the next two years. “We which enhance both the ruggedness and productivity need to encourage the of the spectrometers. Glass Expansion has a staff of development of sustainable technical experts ready and able to recommend the best businesses,” says Perina, components for a customer’s specific needs. “not businesses that www.geicp.com 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

Special report | 119

An engaging approach P

oised to become one of the worldâ&#x20AC;&#x2122;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

120 | Special report

Corporation, Sumitomo Corporation, Korea Resources Corporation and SNC-Lavalin Incorporated) are committed to managing it responsibly. Ambatovyâ&#x20AC;&#x2122;s far-reaching corporate social responsibility (CSR) programme therefore has three main strategic objectives, explains CSR program service manager Jennifer Burt Davis. â&#x20AC;&#x153;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.â&#x20AC;? This strategy reflects the companyâ&#x20AC;&#x2122;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 Ambatovyâ&#x20AC;&#x2122;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 | 121

Foley Hoag LLPâ&#x20AC;&#x201D; 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.

Advanced Clean Air Solutions

 Integrated Air Pollution Control Systems With over 80 years of experience, Macrotek offers air pollution control systems to suit a broad range of environmental requirements. We provide cost-efficient applications for industrial air purification.

 Scrubbers  Dust Collectors  Air Intake Filters  Support Services

1.888.415.1799 info@macrotek.com www.macrotek.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 projectâ&#x20AC;&#x2122;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

Special report | 125

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 â&#x20AC;&#x153;Valve Divisionâ&#x20AC;? produces ball and plug valves up to 24â&#x20AC;?

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 | 127

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 • 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| 129 |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. â&#x20AC;&#x153;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,â&#x20AC;? 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

Special report | 131

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

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| 133 |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 | 135

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.

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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 Madagascarâ&#x20AC;&#x2122;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

Special report | 137

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

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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

Special report | 139

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| |1412 Special report

Present throughout the African continent

Fan Coil Air Treatment Control

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T: 780-463-4911 | F: 780-463-8233

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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 | 143

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 â&#x20AC;&#x2122;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 Madagascarâ&#x20AC;&#x2122;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

144 | 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 ancestorsâ&#x20AC;&#x2122; blessing and protection. A selection of relics collected The arrival of earthmoving equipment by the archaeological team

â&#x20AC;&#x153;Ambatovy plans to construct a building to house the museum collection and make it available to researchers and the general publicâ&#x20AC;? Special report | 147

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-AimĂŠ Rakotoarisoa who created and led Ambatov yâ&#x20AC;&#x2122;s archaeological team between 2005 and 2009.

Special report | 149

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

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 lâ&#x20AC;&#x2122;Environnement), which must approve all environmental plans before implementation. ONE reviews Ambatovyâ&#x20AC;&#x2122;s performance on a regular basis through intensive field verification, making recommendations

Special report | 151

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

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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 | 153

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

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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 | 155

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 Ambatovyâ&#x20AC;&#x2122;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

Special report | 157

AMBATOVY Ambatovy ullamco Ambatovy feature text to go here... veniam, quis nostrud number of recent offspring strategyexercitation for the endangered Lorem ipsum dolor lemurs sit amet, consectetur laboris nisi utnorthern aliquip ex ea commodo indicates that these shrew tenrec is adipisicing elit, sedadapted do eiusmod tempor consequat. Duis aute developed. irure dolor in have successfully also being to their new environment. incididunt ut labore et dolore magna aliqua. reprehenderit in voluptate cillum To ensurevelit theesse continued A y minim has veniam, also quis nostrud dolore eu fugiat Utmbatov enim ad nulla pariatur. Excepteur viability of amphibian and developed biomedical reptile species affectedsunt by exercitation ullamco laboris nisi ut aliquip sint occaecat cupidatat non proident, h a ltcommodo h m on it or i n gDuis aute irure in culpa qui officia the deserunt project,mollit Ambatovy’s exe ea consequat. anim id systems to help ensure amphibian and sitreptile dolor in reprehenderit in voluptate velit est laborum. Lorem ipsum dolor amet, the long-term survival management esse cillum dolore eu fugiat nulla pariatur. consectetur adipisicing elit, sedprogramme do eiusmod of lemur sint populations carriesut out pre-clearance Excepteur occaecat cupidatat non tempor incididunt labore et dolore species inventories and proident,by sunt culpa qui officiaThe deserunt magna aliqua. Ut enim ad minim veniam, affected theinproject. mouse lemur, microcebus salvages ullamco live animals mollit animthree id est laborum. laboris Thirty species Lorem ipsum quis nostrud exercitation to conservation refuge areas. of mammals than lemurs are also dolor sit amet,other consectetur adipisicing elit, nisi ut aliquip ex eaforest commodo consequat. Between and 2010 the program sed do eiusmod labore Duis aute 2007 irure dolor in reprehenderit in monitored by thetempor project,incididunt includingut endemic salvaged velit more reptiles et dolore aliqua. Ut enim ad minim voluptate rodent andmagna carnivore species. A conservation essethan cillum14,000 dolore eu fugiat

VIVO ENERGY MINING: DIGGING DEEP TO PROVIDE CUSTOMERS WITH BEST OVERALL OFFER ON THE MARKET Vivo Energy is the new power behind the Shell brand in Africa. A joint venture between Vitol, Helios Investment Partners and Shell, we are here to offer customers the very best of Shell’s products and services, including supply reliability, technical expertise, and unmatched customer service, in 13 African countries (and counting). In doing so, we employ – and seek to share – industry-leading health and safety standards, and are committed to delivering Shell’s high-quality fuels and lubricants in an environmentally and socially responsible manner. 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| 159 |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

â&#x20AC;&#x153;A specific conservation programme has been developed for the endangered frog golden mantella (mantella aurantiaca)â&#x20AC;? Special report | 161

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

LO N D O N - M A DAG A S C A R

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 arenâ&#x20AC;&#x2122;t Orchid

â&#x20AC;&#x153;As well as its animals, Madagascar is also home to some rare or unique species of plantsâ&#x20AC;? Special report | 163

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 appropriatelyâ&#x20AC;&#x201D; 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 theyâ&#x20AC;&#x2122;re no project isnâ&#x20AC;&#x2122;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,

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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. Products we supply include: • Switchgear and Motor Control • Motors • Transformers • Cable • Control Panels • Protective Relaying • UPS Systems • Lighting MADAGASCAR: Purcee Industrial Controls S.AR.L.U. Villa Marie-Therése, 25 Rue de La Batterie Toamasina, 501, Madagascar Phone: +261(0)32 78 46 550 e-mail: matt@purcee.net | e-mail: alex@purcee.net CANADA: Purcee Industrial Controls Ltd 117, 1289 Highfield Crescent SE, Calgary, Alberta, Canada. Phone: +1-403-660-0395 | e-mail: Les@purcee.net

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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