BE.Africa

ACHIEVING BUSINESS EXCELLENCE ONLINE

AFRICAN EDITION Issue No.5

jindal africa: vodacom sa: coca-cola sabco:

norilsk nickel:

a mainstay How core African markets are a vital source of growth

EVENT SPECIAL focus: MINING INDABA 2013

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business excellence editorial

Martin Ashcroft

Will Daynes

John O’Hanlon

Editor In Chief

Editor

Editor

Martin has edited business magazines for 15 years and has been editor-in-chief since Business Excellence began. mashcroft@bus-ex.com

Will has been a business writer for three years. He joined the Business Excellence team in September 2012. wdaynes@bus-ex.com

John has contributed to Business Excellence since its inception: he joined the in-house editorial team in February 2013. johanlon@bus-ex.com

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Chief Executive

be Africa | 3

BE africa indaba event report:

10 10 Event report

Mining indaba

2013 Mining Indaba™ registers a 10% growth on the number of attendees.

14 SSG Consulting

14

STRATEGIC PARTNERship

Passionate about project management.

16 Set Point group testing, testing

A diversified business, expanding its analytical expertise across Africa and beyond.

26 IHC Merwede B.V. Making waves

26 4 | be africa

The partner of choice when it comes to onshore, near shore and deep-sea operations.

contents

34

Mining & minerals: 34 Norilsk Nickel A mainstay in mining

The factors that have contributed to the success of Norilsk Nickel and how core markets, particularly Africa, are continuing to be vital sources of growth.

44 First Quantum Minerals: Kansanshi Mining Plc

44

Copper country

Zambia is blessed with abundant copper resources, but processing the mixture of ores at the Kansanshi mine has been a challenge for First Quantum Minerals.

74 African Minerals

AFRICAN MINERALS STRIKES IRON

74

The start of an enterprise that will be a major resource for the global steel industry throughout the 21st century.

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BE africa 82 Noble Mineral Resources The gold standard

One company leading the way in exploring and developing Ghana’s large-scale gold deposits.

90 Amlib

Exploring a new frontier

How Amlib is working to help fulfil Liberia’s great economic potential.

82

98 Jindal Africa

A land of opportunity

Jindal Africa has been tasked by its parent company, Jindal Steel and Power Limited (JSPL), with harnessing the immense potential that Africa has to offer.

114 Exxaro Resources Champion of change

98 124

An extraordinary South African resource company with a strategic vision to become a $20 billion company by 2020.

124 World Titanium Resources Keeping it simple

The potential of a highly expandable, high-grade mineral sands project in Madagascar.

134 VIMA Group

The vision to succeed

Chairman Zouzar Bouka explains his vision of a new Madagascar and how VIMA Group is making this a reality.

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contents

152

146 MineWare

Moving with the times

How MineWare has grown from a small family enterprise into a preferred supplier in its field of expertise in less than two decades.

Oil & Gas:

172

152 Petro SA

Inspiring national pride

By embracing change and innovation, PetroSA is opening up new horizons for South Africa’s energy sector.

164 AMIIS

Global ambitions

Specialists in non-destructive testing and heat treatment, the company is beginning to diversify into the oil and gas sector.

172 Wings Travel Management The sky’s the limit

With the oil and gas industry stretching across the globe, companies like Wings Travel Management have never been more important to their customers.

energy: 180 ChemSystems

Daring to diversify

180

ChemSystems has been a fixture of the chemicals industry for over five decades. The company is now making a name for itself in the oil and gas sector.

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BE africa

manufacturing: 190 Denel Aerostructures Making the transition

Chief executive officer Ismail Dockrat discusses the restructuring programme that has contributed to this South African success story.

190 200

200 3Q Concrete Cementing a legacy

3Q Concrete supplies its products to some of most important infrastructure projects in South Africa.

Telecoms & ICT: 208 CRASA

Working in perfect harmony

216

How harmonising policies and regulations across Southern Africa can stimulate investment and growth.

216 Vodacom SA

Networking the nation

Vodacom continues to make strides to remain a leading network in an increasingly competitive and important Sub-Saharan market.

224 POTRAZ

Zimbabwe talking

The national regulator overseeing the development of Zimbabwe’s telecommunications network.

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contents

234

Transport & Logistics: 234 Imperial Logistics Refrigerated Services (ILRS) Always moving forward

Boasting a national footprint in South Africa, ILRS today exists as South Africa’s ‘first to market’ service provider.

252 RDA Zambia LINKing ZAMBIA

Juggling massive resources to deliver an ambitious road network that will release the landlocked nation.

264 Eldo Coaches

GETTING ABOUT IN STYLE

How Eldo Coaches is making inroads into South Africa’s long-haul and tourist routes.

Food & Drink:

264

272 Coca-Cola Sabco

A thirst for growth

Simon Everest discusses the future potential of Mozambique and the company’s expansion plans.

282 The Red Meat Abattoir Association Meat standards

272

Dedicated to best practice as well as the profitability of its members.

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EVENTS

Mining Indaba 2013 Mining Indaba™ registers a 10% growth on the number of attendees 10 | Be africa

Special report

C

ape Town 7 February 2013 – “It was a rush.” “Impressive.” “It’s an extraordinary conference.”

These are just some of the terms used by attendees and media representatives to describe the 19th Investing in African Mining Indaba™ at the Cape Town International Convention Centre.

“I’ve been attending the Mining Indaba for three years now and it just keeps getting

better,” said Chris Bishop, Managing Editor of Forbes Africa.

A record excess of 7,700 delegates attended the 2013 Mining Indaba, from 100 countries and 6 continents, last year the conference was attended by 7,000 people.

There was a distinct African flavour at this year’s indaba with 57 percent of delegates being from the continent, 5 percent from Asia, 18 and 12 percent from Europe and

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EVENTS “It was my first time at Indaba and I found the scale of it very impressive” Andrew Moody of China Daily

Australia respectively and the rest from the Americas, truly living up to its description: ‘This is where the world connects with African Mining.’

This year there has been a marked increase from Asian delegates, which has increased from 3 percent of the total number of delegates in 2012 to 5 percent in 2013.

The greater majority of the Asian contingent was mainly from China and Japan. This year the Chinese delegation numbered 104 including government officials.

The Mining Indaba is the world’s largest gathering of the most influential stakeholders in African mining. They include financiers, investors, mining professionals and government officials. Government representation at the mining indaba was also predominantly African, with 36 African governments in attendance.

Mineweb’s Geoff Candy said: “The challenges took centre stage. Challenges that present foreign investors are with a clear choice: to stay the course, or to go, quickly.”

Tim Cohen of Business Day said: “The mining indaba is an amazing symbol of the increasing importance of mining on the African continent. Governments are

12 | Be africa

Special report

encouraging the industry and Indaba in its tenth year at the social aspects are being the centre. The successful dealt with.” partnership between the Gunther Deutsch of the Mining Indaba LLC and the CTICC has resulted in a South African Broadcasting Number of African Corporation said: “There is a winning formula, which has governments represented sense that mining leadership grown this event in stature. in attendance is taking sustainability This is evident in the growth seriously,” whilst Andrew we’ve seen in the number of Moody of China Daily said: “It was my first attendees. Mining Indaba is a key driver of time at Indaba and I found the scale of it economic growth in the province and this very impressive. It was possible to do a wide year’s event resulted in an economic spinoff range of interviews from industry experts, for the region of just over R111 million and contributed to the creation of over 700 African leaders and Chinese businesses.” direct and indirect jobs in South Africa.

Delegates also lauded the organisation of the Mining Indaba, calling the conference efficient and the content of great quality.

For more information about The CEO of the Cape Town International Mining INDABA visit: Convention Centre, Rashid Toefy said: “The www.miningindaba.com CTICC is proud to be the host of Mining

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INDABA REPORT:

STRATEGIC PARTNERship Passionate about project management

written by: SSG CONSULTING research by: marcus lewis

T

he 2013 Mining Indaba was again a significant event on the SSG Consulting calendar, and a great opportunity to network with existing and potential clients.

Although there are still clear indications that the local and global economies are still under pressure, the energy for getting business going was also very evident.

The SSG Consulting service offering has expanded significantly following the 2012 Mining Indaba and a double stand showcased 4 clear Business Units: • P roject Consulting and Strategy Development • Project Execution and Staffing • KEY360 Management Systems • SSG Training Academy

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Clients indicated a very clear preference for services in terms of being able to use SSG Consulting as a strategic partner to support and develop a current execution team, as well as supplement the execution with experienced staff that could fill the gaps. The ability to support a project organisation with accredited training, as well as the KEY360 systems suite is viewed as a great advantage for clients.

Live presentations and demonstrations of the KEY360 Software Suite on a large touch screen, created the most attention for SSG Consulting, and although 6 staff members were available to meet with prospective clients it was difficult to handle the interest. KEY360 provided attendees with a unique and revolutionary

SSG Consulting

product to handle the full life cycle of asset development, especially developed for the Global and African context.

This proven product supported by an experienced team in SSG Consulting will continue to make headway into the project management industry.

In terms of feedback and positive leads the Indaba provided an excellent platform for speaking to the right clients at the right management level, and a significant

amount of follow up was requested. The format, location, venue and entry cost of the Mining Indaba ensures that most attendees are actually looking for new business in some format; making it an extremely good platform find new opportunities.

For more information about SSG Consulting visit: www.ssgconsulting.co.za

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INDABA REPORT:

Test

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Set Point Group

ting, testing CEO Graeme Horsfield talks about a diversified business, expanding its analytical expertise across Africa and beyond

written by: martin ashcroft research by: marcus lewis

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Set Point Group

S

The Group comprises of three Analytical Divisions

et Point Group is a South African company, comprising seven distinct businesses serving mainly the mining industry and a few unrelated sectors.

It’s an interesting mix, with a rather unusual genesis.

In 1998 the company was formed on the Johannesburg Stock Exchange as an analytical business called Set Point Technology Holdings Ltd. Stock was listed at one rand per share, but shot up to seven rand almost overnight, recalls CEO Graeme Horsfield. “The business was actually analysing air purity and underground gases in the mining industry,” he says, “but because of the name and the IT boom at the time, many people thought it to be an IT company so they all piled in and pushed the share price up. The business became greatly diversified when the then directors bought several companies that had no synergy between them.”

In 2001 the company brought in new management to restructure the business and Horsfield formed part of the team. There’s certainly more synergy in the business now, and although he doesn’t pretend that all seven businesses fit together snugly, they do at least fall into three broad categories— analytical services, fluid handling and mining services.

On the analytical side, the flagship business is WearCheck, an international brand that carries out oil and fuel analysis for condition monitoring of heavy mining machinery. “These mining machines are worth tens of millions of Rands each and

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Oil and fuel analysis laboratory

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carry hundreds of tons of rock and ore at each pass,” says Horsfield, “and are often run 24 hours a day. They have the oil tested every 250 hours or so depending on the component WearCheck analyses the oil and lets the mines know if it needs to be changed or if there’s any component wear and tear or if a problem is beginning to develop that could be prevented.”

The cost of the analysis is far cheaper than replacing the oil or repairing the machine should it fail, never mind the cost of the downtime associated with any failure, which could run into millions of rand.

WearCheck is an international brand name, almost akin to a franchise, but not quite. “There are a handful of companies around the world with the WearCheck label,” explains Horsfield, “but there’s no financial link between them, although, we do work closely wih one another, sharing expertise and offering companies a global oil analysis programme. It is however a gentleman’s agreement as to who has the right to open up WearCheck businesses in certain areas, and Set Point has the rights for Africa, the Middle East and India.”

WearCheck has several laboratories and offices in South Africa, but has also opened businesses in Botswana, Zambia, and Ghana, as well as in Chennai in India, and Dubai in the Middle East. “We are dominant in the market in South Africa,” says Horsfield, “and worldwide, we analyse more samples than any other WearCheck operation.”

Also on the analytical side is Set Point

Set Point Group

Oil analysis on haul trucks

Laboratories, which does assaying of minerals for the mining industry. The major laboratory is in Johannesburg, but others have been opened in Northern Cape and Botswana, and one will open soon in Mozambique. Set Point Laboratories have specific expertise and experience to establish and operate full on-site lab facilities specific to client’s requirements.

These labs can be housed in fixed buildings

or in containerised units that allow easy transportation to remote sites. In addition, SPL has experience in establishing “underground sample preparation facilities” which provides huge logistical benefits for analysis of mine samples.

The third of the analytical companies is African Mineral Standards or AMIS, which makes certified reference materials—which are basically control samples to verify the

“We are dominant in the market in South Africa and worldwide we analyse more samples than any other WearCheck operation” be africa | 21

accuracy of the analytical equipment.

“Most analytical laboratories are faced with the challenge of determining the accuracy of their XRF and ICP machines,” says Horsfield. “They don’t know how accurate the machines are because the results they get vary from the samples they get from the mines. So what we do is develop a model answer.

“We collect rock from various parts of the world and crush it into a fine powder.

This is sent to thirty laboratories around the world to analyse it and tell us what’s in the powder. We get the thirty results and then do a mean average and an almost model answer of what should be in that powder.

Results are then sent to a renowned professor in Canada who checks the accuracy of the mean averaging, and signs a certificate off. This then becomes a certified sample.”

Mining laboratories around the world use these samples to check that they get the correct model answer from their machines.

If they do, then their other samples can be relied upon to be accurate, too. “We are proud to have developed African Mineral Standards into the second largest standards supplier in the world.”

Set Point also has three operations in its fluid handling divisions—the Letaba Group,

Pneumax and Meter Systems. Letaba imports pumps and supplies them predominantly to the mining industry but also to food and chemical plants. It is also known for its impressive fleet of dewatering pumps, which are available for hire 24/7/365.

“Then we have Pneumax which supplies pneumatic equipment such as components for pneumatic automation, actuators, valves, fittings and tubing, deceleration

“WearCheck analyses the oil and lets the mines know if it needs to be changed or if there’s any engine or gearbox wear and tear” 22 | be africa

Set Point Group

Above: Flow meter. Below: Imperial mine cylinder

Matrix matched reference materials

and vibration technology which can be used in virtually any industry or application,” says Horsfield. Pneumax is also committed to industry skills development programmes and offers various pneumatic training courses. Meter Systems supplies lubrication and garage equipment to the fuel and oil industries, including flow meters, nozzles, hoses, dispensers, loading arms, pumps and a myriad of complementary products and accessories.

Set Point’s mining section, acquired in 2005, is the one that stands alone. The two companies NW GoPro and RENG, manufacture and repair

locomotive and hopper wheels, as well as skip guide rollers for the mining industry. “It’s the only manufacturing business we have in the stable, so of all the companies in the group, it has the biggest labour force.”

Being a diverse organisation is challenging but it also has benefits, says Horsfield. If one sector suffers from a shrinking market, others can pick up the slack.

The disadvantage is that the skills required to manage the individual businesses are not easily transferrable.

“We have seven highly skilled MDs,” he says, “so we have to have a very strong succession plan in place, especially on the

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GoPro manufactures a range of loco wheels and skip guide rollers

Some of the brands avail

“We have developed our own training school in Johannesburg, and we are one of a few companies accredited by the Department of Labour” analytical side. These guys have Masters in chemistry and science. You don’t just pick them up off the street. We constantly have to train middle management to be able to step into top management shoes.

General distribution is relatively easy for a commercial guy but in the three analytical businesses it’s tough because you can’t take, for example, a laboratory manager from

24 | be africa

one of our analytical divisions and ask them to run another – since the scope of work varies significantly.”

There are challenges also in expanding across Africa, not least in being careful which countries you choose. “We often have to join up with local management in terms of the rules of the country regarding ownership, and finding the right partner is

Set Point Group

lable from Letaba Pumps

not always easy. It takes a good six months for our business development people to do a full analysis of the business environment.”

Zimbabwe, for instance is one country Set Point has avoided, because of its indigenisation policies.

It’s not easy attracting skilled workers into the analytical side of the business, either, says Horsfield. “We have developed our own training school in Johannesburg, and we are one of a few companies accredited by the Department of Labour. We train people from the African sub-continent and send them back to their own countries to run their own laboratories.”

Science graduates are keen to work in DNA analysis or biochemistry, he says.

GoPro’s locomotive wheels

Analytical work is not sexy enough for some of them today. “So we’ve had to make it pretty sexy for them in terms of the company culture and opportunities to get into management. We’ve been running a mentorship program for about three years now where we identify people with talent and do our best to inspire them to greater things for themselves and the company. It’s been a boon for us in terms of retaining those people and developing them into a different level of management.”

For more information about Set Point Group visit: www.setpoint.co.za

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INDABA REPORT:

Making

waves Converting a dry mining operation into a wet or dredge mining operation can renew the life of a mine. IHC Mining is able to facilitate this change by supplying equipment, educating and training local crew, and offering life-cycle support

written by: Will Daynes research by: Marcus Lewis

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IHC Mining B.V.

Mining dredger attached to floating processing plant

IHC Mining B.V.

A

s the Mining division of IHC Merwede, IHC Mining focuses on integrated solutions for mining houses in onshore, near shore and deep-sea mining. It offers advisory services to determine overall technical and economic project viability.

It designs, builds and supplies innovative mining vessels and advanced equipment.

During operations the company provides its clients with life cycle support.

With roots that can be traced back to the 18th Century, and origins that lie with six Dutch shipyards that joined forces to build six sea-going tin dredgers for the Billiton Company, IHC Merwede is a Netherlands based company delivering integrated solutions to the dredging, offshore and mining industry.

From its locations in the Netherlands, South Africa, Australia and Singapore, IHC Merwede’s Mining Division works closely with its customers to deliver an integrated service offering that it feels is proven to bring optimum results to any mining operation.

The company’s innovative vessels and advanced equipment are typically utilised in the extraction of mineral sands, diamonds, gold, copper, nickel, tin, iron ore, phosphate, rare earths and rock salts from depths of ten metres or less up to 300 metres. Meanwhile it is also working to develop equipment specifically designed to operate in even deeper waters.

Unlike a number of the players that exist within the wet mining industry today, IHC Mining is able to point to its long history of operating in such environments. In the many decades in which it has built up

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72% Of the world’s surface is covered in water

Dredge miner at work

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an unmatched level of experience it has also collected countless references from satisfied clients.

The roots of the business are very much entrenched in dredging. “It is this background,” highlights Marcel Boor, Product Director of Near Shore and Onshore Mining Equipment, “that the company has leveraged in order to develop its core mining technologies over the years. We have long been a well-respected and recognised player in the dredging industry, and we hope to earn a similar status in the mining sector.”

“We anticipate the onshore, near shore and deep sea market segments will continue to gain momentum, particular as dry mining becomes more difficult to develop and head grades continue to fall,” explains Managing Director, Martijn Schouten. “While wet mining is by no means a new phenomenon, it is one that is being increasingly recognised as an attractive alternative to dry mining.”

“Geographically,” Schouten continues, “we are currently seeing growth in each of our specific market segments. In terms of our onshore activities, these are being driven largely by the strong levels of exploration on-going in places like Russia, Southern Africa and South America, while a particularly attractive area at present for near

IHC Mining B.V.

Mining wheel

shore mining exists between Indonesia and the Philippines. Deep-sea mining activities continue to be spread much further across the globe with companies heading to wherever deposits may be found.”

“At the end of the day,” states Product Director for Near Shore and Onshore Mining, Kees Jan Verkaik, “what these mining clients are most interested in what they can get from the ground beneath the water in terms of minerals. One of the primary reasons why

such clients turn to us is because we possess the technology and skills required to get down to these mineral deposits and do so efficiency and effectively in almost any environment.”

“One of the major benefits of wet mining in a lot of cases,” Verkaik highlights, “is that the development of large scale deposits becomes a much less logistically challenging undertaking. Whereas such an operation on land would require countless trucks for example to transport the material, the

“IHC Merwede’ s Mining Division works closely with its customers to deliver an integrated service offering” be africa | 31

transport of a product through say a hydraulic pipeline would not only allow you to move it greater distances in less time, it would also have a significant impact when it comes to cost savings. The trend towards developing larger mines has certainly helped shine the spotlight on such alternatives and that is a good thing for us.�

The reality however is that in many instances, when faced with a choice

between land-based and wet mining, a higher percentage of companies still choose to go with the dry option simply because they are less aware of the benefits and advantages of the alternative. The same lack of understanding and acknowledgement is one challenge that IHC Mining is working to overcome. Despite being lauded as one of the leading figures within the DutchBelgian dredging cluster it is not yet seen

“One of the major benefits of wet mining is that the development of large scale deposits becomes a much less logistically challenging undertaking�

Dredge equipment for overburden removal

32 | be africa

IHC Mining B.V.

Onshore mining

as a leading solution or equipment provider to the mining community.

IHC Mining’s mission to increase awareness in not only itself, but the whole concept of wet mining, saw it travel to Cape Town in early February for the Mining INDABA event.

“Appearing at such industry gatherings is so important if we are to achieve our ambition of being recognised as the leader player in dredge mining,” Schouten enthuses. “It is at such events that we are able to share our ideas, thoughts and ambitions with potential clients, particular those that are keen to develop new concessions in the future.”

From a deep-sea perspective meanwhile, the fact that on average product grades found here are greater than those found on land is certainly something that in the future will

encourage more and more people to get their feet wet, as it were.

As Schouten goes on to conclude, with more than 70 percent of the world’s surface covered in water it is only logical that there will be an increase in wet mining going forward as the industry continues to follow a similar pattern to that which saw the oil and gas sector move offshore. “In order to facilitate this growth, as well as the needs of our customers, we will continue to increase our regional presence in core markets as we strive to grow as a leading business in our field of expertise.”

For more information about IHC Mining B.V. visit: www.ihcmerwede.com/mining

be africa | 33

A mainstay in mining Director of foreign assets, Roman Panov, discusses the factors that have contributed to the success of Norilsk Nickel and how core markets, particularly Africa, are continuing to be vital sources of growth

written by: Will Daynes research by: Marcus Lewis

34 | be africa

Norilsk Nickel

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M

ining has been a part of life in the Norilsk area since the 1920s, during which time the seeds were sown for what would become a lucrative industry for the region and Russia as a whole over the course of the subsequent century.

It was in 1935 that the government of the USSR created the Norilsk Combine and 1943 that Norilsk managed to produce an annual total of 4,000 tonnes of refined nickel, before hitting its target figure of 10,000 tonnes just two years later in 1945.

In the aftermath of the fall of the Soviet Union a joint-stock company was created in 1993, taking the name RAO Norilsk Nickel.

By 1997, the company had been sold to private enterprise Interros and had returned to profitability. In the years since, Norilsk has gone on to successfully acquire a host of mining and metallurgical assets across the world, thus transforming itself into a multinational organisation with operations in Russia, Finland, Australia, Botswana and South Africa.

Today, MMC Norilsk Nickel is the world’s largest producer of nickel and palladium, and one of the leading global producers of platinum and copper. In addition, it also produces various by-products such as cobalt, chromium, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium and sulphur.

“Our production assets,” explains director of foreign assets, Roman Panov, “are located in five countries, Russia, Finland, Australia, Botswana and South Africa, across which we mine over 30 million tonnes of ore and produce almost 300,000 tonnes of nickel. The

36 | be africa

Norilsk Nickel

latter figure represents a fifth of the world’s total nickel production.”

In its home country of Russia, the company’s production units include its Polar Division, which is located above the Polar Circle on the Taimyr Peninsula, and Kola MMC on the Kola Peninsula, while in Finland it operates the

Harjavalta processing plant. In Australia its operations include Black Swan, Cawse, Lake Johnston and Honeymoon Well, and in Africa its activities are comprised of the Nkomati project in South Africa and Tati Nickel in Botswana. In addition to its operating assets, the company boasts a large sales and

“our resource base will be expanding considerably as we embark further upon geological exploration in the regions where we currently operate” 38 | be africa

Norilsk Nickel

Artic Express is the ship also in Russia

marketing network in many and metals companies of the world’s major regions, by market capitalisation, vital energy assets that as well as geographical ensure the security of energy expansion and production supply to its operations, diversification, by the year Tonnes of nickel 2025,� Panov enthuses. proprietary research and produced globally by Panov believes that the development assets and its Norilsk Nickel per annum unique Arctic fleet. company has the necessary Norilsk Nickel sees its technical, financial, economic mission as revolving around strengthening its and investment policies that will allow it to leadership in the mining and metals sectors, achieve its aims. It establishes solid grounds while at all times remaining a responsible for social, regional and human resources producer and supplier of non-ferrous and policies, strategies for the development precious metals. “The company plans to of related industrial facilities and the be included in the top five largest mining optimisation of corporate governance.

300,000

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“In the years to come,” Panov continues, “our resource base will be expanding considerably as we embark further upon geological exploration in the regions where we currently operate and through our participation in new projects. As part of a broader drive to diversify our commodity portfolio and our region presence we continue

to monitor projects in mineral-rich countries in southern Africa. Specifically, we are looking at potential projects in Zimbabwe, the Democratic Republic of Congo, Zambia and Botswana. These consist of both greenfield and brownfield mines, however what we are focusing on is the quality and quantity of reserves that each holds underground.”

“Expansion across Africa fits perfectly into our strategy and will act as a logical way of tying our expansion plans to our existing operating sites”

Truck at Tati Nickel Mine in Botswana

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Norilsk Nickel

Nkomat Mine in South Africa

Africa and South Africa in particular, is playing an increasingly important role in the growth strategies of diversified mining companies. This is equally true for Norilsk Nickel, the major difference being that it already has a commanding presence in South Africa where it is part of the Nkomati nickel mine joint venture alongside African Rainbow Minerals.

“Expansion across Africa,” Panov says, “fits perfectly into our strategy and will act as a logical way of tying our expansion plans to our existing operating sites. What is also important to highlight is the fact that Norilsk is not restricted to nickel and in that respect we actively investigate the

potential of all manner of base-metals with a similar degree of enthusiasm.”

Having a unique raw material mineral base gives the company the ability to retain its competitive advantage within the industry and provides it with stability of production and enables it to make strong long-term forecasts.

“In order to strengthen our position as a leading global mining and metallurgical entity,” Panov states, “our primary objectives are to further develop our international operations and focus on the development of key production assets. The management of the company collectively works on a constant basis to optimise business

be africa | 41

Norilsk Nickel

March 2011 The company signed a Declaration of Strategic Partnership with South Africa’s government processes, improve operational indicators, reduce costs and enhance efficiency at all levels in order to create additional value for our shareholders.”

Norilsk Nickel continues to retain its position as the world’s lowest-cost producer of nickel and one of the ways it does is maintaining a strong presence on the African continent. It is with this in mind that the company is particularly interested in prospecting and carrying out the geological investigation and exploration of promising new greenfield projects in South Africa.

“In March 2011,” Panov concludes, “the Declaration of Strategic Partnership between Norilsk Nickel and South Africa’s Department of Mineral Resources was signed. The aim of this partnership is to facilitate the implementing of lucrative mineral resource development projects in the country. This partnership alone highlights just how important a role South Africa will continue to play in our growth strategy on the African continent.”

Tati Nickel Mine in Botswana

For more information about Norilsk Nickel visit: www.nornik.ru/en/

be africa | 43

Copper countr Zambia is blessed with abundant copper resources, but processing the mixture of ores at the Kansanshi mine has been a challenge for First Quantum Minerals, as Meiring Burger explains

44 | be africa

First Quantum Minerals: Kansanshi Mining Plc

ntry

written by: alan swaby research by: paul bradley

be africa | 45

The Kansanshi open pit mine

First Quantum Minerals: Kansanshi Mining Plc

H

ow can it be that a significant copper deposit, known for over 100 years, owned and operated by a progression of operators – including two leading international names – can struggle along for 93 years and then become an overnight success in 2005?

“It’s not for want of trying,” says Meiring Burger, mine manager at the Kansanshi Copper Mine in Solwezi, northern Zambia.

“But the geology here is very difficult, with copper oxide at one end of the spectrum and copper sulphide at the other. In between there is a lot of mixed ore that mine operators simply didn’t know what to do with.”

At first neither did First Quantum Minerals – the eighth largest copper producer in the world and 80 percent majority owner of Kansanshi. First Quantum had been in Zambia since the mid 1990s, trying to make a living out of reclaiming lost copper from left over tailings ponds. It worked – to a degree - but in reality the operation was making more money from the acid produced as a bi-product of the reclamation process than from the copper itself due to depressed commodity prices.

As a way of trying to improve matters, First Quantum started mining and exploration on a small scale until the opportunity came along to buy Kansanshi.

“Incredible as it seems,” says Burger, “in the first year of operation we produced more copper there than had been produced in the entire previous century. But even we were stockpiling masses of mixed ore, not really knowing what best to do with it.”

The open pit mine at Kansanshi consists

be africa | 47

LIEBHERR MINING MORE FOR LESS

The Mining Equipment Division within the Liebherr Group enjoys the strengths and commitment of a family owned company and has achieved a high degree of trust as an active, accepted and valuable partner to the mining industry.

The Liebherr mining equipment range comprises nine hydraulic excavators ranging from 100 to 800 tons, 2 trucks (240-ton T 264, 400-ton T 284), the 60-ton PR 764 dozer and the 23-ton L 586 wheel loader.

Liebherr mobile cranes are used widely in mining operations for various building and plant service activities. More types and models of these machines are currently under development.

48 | be africa

The Liebherr-Mining Equipment Colmar SAS product line includes mining and dredging excavators powered by diesel engines or electric motors. We provide the following hydraulic excavators models: R 9100, R 984 C, R 9150, R 9250, R 9350, R 9400, R 995, R 996 B and R 9800. These excavators are equipped with bucket capacities from 7 to 45 m3 (13 to 76 tonnes material weight) and engine power ratings up to 4,000 hp.

At present, 21 Liebherr hydraulic mining excavators are working in Zambia operated by major mining companies or contractors.

Today, First Quantum Minerals Ltd operates 6x R 984 C Diesel, 2x R 9250 Diesel, 1x R 9350 Diesel and 4x R 9350 Electric at

First Quantum Minerals: Kansanshi Mining Plc

Kansanshi mine site in Zambia. Liebherr has confirmed sales for three excavators to be delivered and commissioned in 2013.

Liebherr has not established a company in Zambia, but we support our customers through dedicated onsite Liebherr Technicians. Our customers located in Zambia have access to the Liebherr Component Rebuild facility in South Africa.

Liebherr’s distribution is mostly conducted by its own sales and service organizations.

This approach brings Liebherr companies closer to customer operations for a better understanding of their needs and requirements. It also allows the experienced engineering teams to adopt customer feedback into the mining equipment design.

By focusing on the mining industry’s needs, Liebherr designs and manufactures innovative mining products for the global mining industry and is dedicated to exceed our customers’ expectations in terms of productivity, efficiency, reliability, customer support, safety and environmental impact.

Productivity Liebherr Mining Equipment enables superior productivity by loading and hauling maximum tonnage in the shortest amount of time.

Efficiency Liebherr combines the proven capabilities of previous models with new features that improve operational efficiency.

Reliability To maximize equipment reliability, Liebherr combines manufacturing expertise with superior monitoring and diagnostic capabilities.

Customer Support Liebherr builds more than just mining equipment; Liebherr also builds customer partnerships.

Safety Mining demands an ever-vigilant focus on safety, and Liebherr strictly adheres to industry standards. Liebherr equipment is designed to diminish risk even under the most extreme mining conditions.

Environment Liebherr optimizes mining equipment for fuel economy, emission compliance, and extended service intervals.

Contact details Liebherr-Mining Equipment Colmar SAS 49, rue Frédéric Hartmann - FR 68025 Colmar Phone: +33 (0)3 69 49 21 98 Fax: +33 (0)3 69 49 23 18 Email: info.lec@liebherr.com www.liebherr.com

be africa | 49

First Quantum Minerals:KANSANSHI KansanshiCOPPER MiningMINE Plc of Lorem two very ipsum largedolor pits in sit the amet, consectetur ground adipisicing that elit, will sed eventually do eiusmod tempor become incididunt oneutextremely labore et dolore large magna aliqua.

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veniam, 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 incididunt ut labore et dolore magna aliqua.

TheUt completed enim ad pit minim will be 300m veniam, deep quis nostrud exercitation ullamco laboris nisi aliquipboth ex ea commodo consequat. otherutbecause rely on entirely different processing Duis aute irure routes dolor to extract in reprehenderit the copper. in What the conventional plant doesn’t want

BME AND OMNIA BME and Omnia are committed to the mining industry BME, a subsidiary company of Omnia, provides explosives and explosives related products and services to the mining industry. BME has operations in South Africa, Swaziland, Malawi, Namibia, Botswana, Zimbabwe, Zambia, DRC, Mali, Sierra Leone, Mauritania, Senegal and Mozambique.

BME’s core strength, the supply of explosives to the opencast mining industry, is performing admirably and is complemented by good volume growth in its range of packaged (fractured) explosives and products in the initiation accessory field. Its sales growth in shock tube and electronic detonator products is particularly noteworthy.

Omnia just recently completed a new R1.4 billion (US$180 million) nitric acid complex that will be the new catalyst for growth for BME. The new

plant’s annual capacity of 73,000 tons (N) of nitric acid is some 40 percent higher than the existing plant, which despite being 30 years old is still in excellent condition and will continue to operate. The two nitric acid plants place the Group in a leading position for the supply of nitrates to the mining and agriculture sectors in South Africa and deeper into Africa.

BME has been involved in the Zambian mining industry since the turn of the century. Not only is it the dominant supplier to quarries and construction throughout Zambia, it is also a major explosives supplier to the rapidly expanding mining operations in the North West Province.

BME has a major emulsion manufacturing plant at First Quantum’s Kansanshi Mine and is the sole supplier to this massive mining operation. www.bme.co.za

OCTOBER be africa 2012 | | 512

A modern office block of 1,100m2 located in Makeni, Lusaka currently used as Head Office for Lamasat International

A modern show room about 1 Km from the Lusaka Central Business District along Kafue Road

Modern productions lines for pipes, fittin polypropylene bags, blow film and plastic tanks, wood works and aluminium works.

A modern shopping centre along Kafue Road, about 4 Km from the Lusaka Central Business District

ngs, c printing, water .

Our company’s business activities are spread out at a number of locations around Lusaka, with our Head Office being located in Chipwenpwenue Road off Kafue Road, Makeni, Lusaka.

We have ultra modern facilities which include 50,000m2 of factories, warehousing facilities and modern offices.

We continually invest to grow our portfolio of facilities and currently developing show room and warehousing facilities along the busy Kafue Road in Lusaka.

Our range of products include: • HDPE PIPES – 16mm to 630mm • UPVC Pipes – 16mm to 250mm • Supramyn Pipes • HDPE Fabricated Fittings • Megaflex Mining Hose Pipes • Heliflex Suction Hose pipes • All Mining Applications • Woven Bags • Water tanks – 200 litres to 12000 litre • Aluminum Products • Wood processing making furniture Tel: 260 211 273142/273145/6 | Fax: 260 211 273141 Email: sales@lamasat.co.zm | www.lamasat.co.zm

The right partner.

The right chemical technologies.

At just the right time.

Being a partner to your mining operation is not just our profession, it’s our passion. We deliver leading chemical technology in Alumina Refining, Mineral Processing and Solvent Extraction—innovations powered by a rich history of efficiency and value. We provide onsite support, where our experienced team works right alongside you to resolve challenges with robust solutions. As a recognized global leader, we can offer you peace of mind through our commitment to steady, reliable product supply. Combined, working with us provides you an opportunity and a partnership you won’t find anywhere else.

To learn more, please visit cytec.com/miningleaders

Alumina Refining | Mineral Processing | Solvent Extraction custinfo@cytec.com | cytec.com/miningleaders US Toll Free: 800.652.6013 | Tel: 973.357.3193 © 2012 Cytec Industries Inc. All Rights Reserved.

First Quantum Minerals:KANSANSHI KansanshiCOPPER MiningMINE Plc – and Kansanshi what Kansanshi Copperhas Mine in feature text to go here...Lorem ipsumofdolor sit amet, abundance – is a mixture consectetur adipisicing elit, sed do eiusmod the two. tempor The success incididunt in making ut labore et dolore magna aliqua. work Ut enim was ad minim veniam, Kansanshi quis nostrud “exported” toexercitation Australia. Inullamco laboris nisi aliquip ex ea started commodo consequat.

2004utBHP Billiton Duis aute irure in reprehenderit in construction of dolor a US$2.2 voluptate velit esse cillum billion nickel mine butdolore eu fugiat nulla quicklypariatur. closed Excepteur the plant sint occaecat cupidatat non proident, sunt culpa qui down in January 2009, after lessinthan a year of officia operation. deserunt The mollit mineanim was id putestuplaborum. for sale later Lorem that ipsum year and dolor bought sit amet,

by First consectetur Quantum

US$340 million. tempor adipisicing elit,forsed do eiusmod incididunt ut labore “Our et dolore engineers,” magna aliqua. says Ut enim ad minim veniam, Burger, “spentquis 18 nostrud months exercitation ullamco m a k i nlaboris g nisi s i g ut n i faliquip icant ex ea commodomodifications consequat. Duis aute to irure the dolor in reprehenderit in voluptate velit processing plant. When esse cillum dolore fugiat nullaback pariatur. the eu mine went into Excepteur sintproduction occaecatahead cupidatat of schedule, non proident, sunt in there culpa was quiuniversal officia deserunt acclaim mollit anim id for est laborum. the technical Lorem solutions ipsum First dolorQuantum sit amet, had consectetur developed.” adipisicing elit, sedAtdoKansanshi, eiusmod tempor ut labore the incididunt conventional ways et magna aliqua. enim adores minim of dolore processing oxide andUt sulphide are

CYTEC Cytec Industries is the main supplier of specialty reagent technologies to the Kansanshi mine in Zambia. Cytec supplies both flotation reagents and solvent extractants.

This supply position is a result of a strong relationship between Cytec and Kansanshi built up over the last seven years. First Quantum, the primary owner of Kansanshi Mining PLC, and Cytec Industries are all committed to using innovative technology and strong two-way cooperation to contribute to Kansanshi’s operational success.

More specifically, Cytec provides AERO® MX-5149-selective collector, ACORGA® OPT® 5510-solvent extractant, AEROFROTH® 68-frother and has an active flotation modifier program in progress. The selective flotation collector, AERO® MX-5149 was introduced in 2011 to replace traditional xanthate reagents resulting in significant reductions in dosage and superior mineral selectivity in the presence of iron sulphide minerals. Additionally, the risk

profile of the Cytec collector is much improved as compared to xanthates.

ACORGA® OPT® 5510 solvent extractant has improved copper transfer and iron selectivity.

These technical attributes have translated into lower operating costs.

Most recently, Cytec and Kansanshi have agreed to use the specialized flotation modifier technologies that Cytec has, to optimize problematic oxidized ores. The relationship between the companies is focused on serving the Kansanshi operation with innovative products that are a best fit. Additionally, Cytec is committed to supporting the operation by visiting the site for 1-2 weeks each month to focus on solving technical challenges and improving operational performance.

Cytec is proud to support Kansanshi via this partnership and is happy to help ensure the success of their refining now and in the future. www.cytec.com

NOVEMBER be africa 2012| |552

KANSANSHI COPPER MINE

TOTAL: MORE THAN JUST AN OIL COMPANY Total is one of the largest integrated oil and gas companies in the world, with a growing presence in over 150 countries.

The Group is also a first rank player in chemicals. Its 96,000 employees put their expertise to work in every part of the industry – exploration and production of oil and natural gas, refining and marketing, gas and new energies, trading, and chemicals.

With nearly 15,000 service stations worldwide, Total is among the largest refiners and marketers in Western Europe and the leading marketer in Africa. Total is a major player in the specialty products business (lubricants, aviation fuels, marine fuels, heavy fuels, liquefied petroleum gas, bitumen) and one of the leading traders of oil and refined products worldwide.

Total is committed to meeting growing energy demand while consistently acting as a responsible corporate citizen. The company is actively preparing for the energy future by progressively expanding its offerings and developing complementary next generation energy activities, with a focus on solar and biomass.

Corporate social responsibility is a pillar of our strategy and focuses on three major issues: meeting energy needs while tackling the challenges related to climate change and natural resources, curtailing the impact of our operations on people and the environment, and helping to drive social and economic development.

As a result of strong partnerships with mining companies in 40 countries worldwide, Total has developed mining solutions based on a range of high quality products with integrated services.

Total Mining Solutions adds value to mining customers by maximizing equipment availability, increasing productivity and thus, reducing their overall costs.

Supplying around 200 mining sites worldwide, Total is a partner of choice for mining companies. From the refinery to the mining site, Total Mining Solutions covers the entire supply chain, ensuring reliable delivery and product quality.

Thanks to a worldwide network of refineries, terminals and blending plants, Total is able to supply petroleum products to mining customers even in the most remote areas.

Our success in partnering with mining companies is based on our ability to manage large-scale projects in complex environments.

For each mining project, Total provides a combination of key success factors such as trucks equipped with on-board computers, permanent or mobile storage and dispensing facilities, filtration systems, laboratories for fluid analysis, fluid management systems, on-site technical support, etc.

Since 2004,Total Zambia Ltd has been proud to provide a complete fuel and lubrication solution to Kansanshi’s needs across its vast range of equipment.

Through our continuous improvement program, we work with Kansanshi to ensure our offer evolves with their requirements.

This guarantees that Total Zambia Limited delivers mining solutions tailored to Kansanshi’s business.

To discuss our Mining Solutions please contact the Commercial Director, Total Zambia Limited, Tel: +260 97 7 790694. www.total.co.zm

OCTOBER 2012 | 1

First Quantum Minerals: Kansanshi Mining Plc

Excavation taking place

employed. The oxide is treated with acid to product is leached via a high pressure leach dissolve out the copper which is then won circuit, which then feeds this leach solution by electro-winning into 99.999 percent pure into the oxide circuit for eventual electrocathodes. Sulphide ore is crushed and milled winning. Experience gained on this HPL before going through a flotation process circuit stood First Quantum well in their which eventually creates a 26 percent Cu in Ravensthorpe operation. concentrate that then needs In fact Kansanshi is in smelting to attain the final the middle of extensive copper product. expansion activity. “We In addition to these two have a $370m programme processing plants, Kansanshi underway,” says Burger, “to now has a third hybrid line lift production at the mine for the mixed ores. First from the current 250,000 Quantum has developed a tonnes to 380,000 tonnes of copper by 2015. Not only ground breaking solution The price that First will we be mining more which uses a modified Quantum Minerals paid ore but by building our flotation cycle. Separate for the Kansanshi mine own acid plant and smelter to this, some concentrate

$340 million

be africa | 59

Sino Grinding is a group company specializing in design, manufacturing and distribution.

We promote our grinding media worldwide by on-site technical support regularly to all our clients and proactive development research with more advanced products being released regularly as specific problems are identified and dealt with.

Sino Grinding is now supplying it’s products to over 20 different mines in Australian, Asian, African and American markets.

All products of Sino Grinding are manufactured in P. R.China under license with Sino Grinding being the sole copyright owner. Sino Grinding is leading the market technically by supplying the most advanced SAG mill grinding balls in the world today.

Sino Grinding specializes in design and supply of various types of grinding media to different mills based on each mill’s specific working conditions.

www.sinogrinding.com

KANSANSHI First Quantum Minerals: Kansanshi Mining Plc

SINO GRINDING INTERNATIONAL Finally, a new steel grinding ball.

Ore processing has had countless improvements over the last 20 years, as have most technologies. Recoveries in the high 90%, machine reliability, but the outstanding feature has been the sheer scale and size of new project operations.

“Increased throughput and lower steel and energy consumption” is the clear new instruction of shareholders.

In reaction to this, new engineering skills have enabled the primary SAG mills to grow to new capacities with the largest mill of about 14 meters (almost 46 feet) in diameter now under construction – in China. With this increase in mill size a new problem has now occurred, can the traditional grinding media survive this massive increase in impact?

SGI group has been challenging the traditional grinding ball manufacturers with a new generation of technologies for years.

SGI firstly focused on steel consumption as the item of most interest to the mill management teams; from this the Sino-1 SAG revolutionary ball was designed in 2004.

This ball was noticeably tougher with the ability to withstand continuous ball on ball actions without any noticeable breakage in the bigger SAG mills.

These days SGI offers a range (6 types in total) of specialized SAG balls from 3.5” (94mm) to 6” (150mm+). Each grade has variations in chemistry, physical characteristics, efficiencies and cost to suit the very different grinding/impact environments of all mills that SGI has encountered.

SGI first collects data first hand from mill operations people. Mill size/speed, ore size/ hardness, ball size/consumption, operations targets of throughput and grind are all part of the detailed questionnaire to set as the “starting point”. Modeling is then done at SGI Head Office. These considered options, in many cases offered with performance guarantees, are then submitted to the customer. Trial testing is encouraged on a production scale so that all data can be trended from the starting point. Pieter Theunissen, SGI African Chief, makes it clear that SGI are not milling specialists.

“Our customers know milling; we know steel alloying and build what they ask for. Together we usually find a better ball design in our range or a variation to that for optimum results. I suppose that as we rarely lose a customer – that this speaks for itself”.

SGI has offices in China, Africa, Australia (Boliver International – as exclusive agents), Canada and USA. www.sinogrinding.com

NOVEMBER 2012 | | 612 be africa

First Quantum Minerals:KANSANSHI KansanshiCOPPER MiningMINE Plc weKansanshi will become feature just about text... consectetur adipisicing elit, as Lorem selfipsum sufficient dolor sit as amet, it is sed do eiusmod tempor possible consectetur to be.” adipisicing elit, incididunt ut labore et dolore sedSolwezi do eiusmod lies about tempor 250 magna aliqua. Ut enim ad miles incididunt due south ut labore of theetKatanga dolore minim veniam, quis nostrud copper magnabelt aliqua. in theUt Democratic enim ad exercitation ulla mco laboris nisi ut aliquip ex Republic minim veniam, of Congo quisand nostrud is at ea commodo consequat. the exercitation end of a 160km ulla spur mco road Duis aute irure dolor in laboris ut north/south aliquip ex from thenisi main reprehenderit in voluptate ea commodo consequat. highway that serves Katanga’s velit esse cillum dolore Duis aute mines.

“Theirure maindolor road in is eu fugiat nulla as pariatur. reprehenderit in voluptate tarred,” says Burger, “but we This TheisKansanshi a caption this mineisisa aiming captionto become as self suffient possible Excepteur sint occaecat velit toesse dolore have take cillum care of the last nonsoproident, suntQuantum in culpa has qui eu fugiat pariatur.

Excepteur sint cupidatat 160km linknulla ourselves.

The roads are narrow So much that First occaecat cupidatat nonrestricting proident,what sunt we in cooperated and very busy, thereby officia deserunt with mollit the government anim id esttolaborum. upgrade culpa qui officia anim air id the can transport that deserunt way. Not mollit surprisingly, Lorem limited ipsum facilities dolor at sit the amet, Solwezi consectetur airfield adipisicing sedit do tempor transportation est laborum. Lorem is vital for ipsum our dolor business.” sit amet, to the point elit, where willeiusmod soon become an

BIA OVERSEAS Located in Wavre, to the south of Brussels and with subsidiaries in more than 15 African countries, BIA Overseas s.a. operates in the sale and service of equipment for mines, quarries, public works, recycling, handling and power generation in West and Central Africa. BIA Overseas s.a. offers a wide range of equipment and accessories from well-known manufacturers such as Komatsu, Sandvik, Bomag and Cummins.

In Belgium and in Africa, our teams are mainly comprised of engineers and more than 450 technicians, active in the field, in our service and training centers, or directly at operational sites, offering tailor-shaped solutions and services. These solutions range from equipment sales, transport and assembly, spare parts

and aftersales service, to personal advice on project requirements and execution, financial settlements and the training of technical staff.

BIA as an environment Given the nature of our business, the environment at BIA is flourished by the passion for high standards and excellence. This level of quality is mandatory to face the challenges at hand, from Belgium to the most remote places in Africa. Alongside our engineers, technicians and project managers from around the world, BIA is composed of the finest minds in finance, logistics, services, human resources and general administration.

E. info@biaoverseas.com www.biaoverseas.com

NOVEMBER be africa 2012| |632

international gateway. “The airstrip has been extended to 2.7km,” says Burger, “which means Boeing 737s can land now.

The buildings are being improved and we are currently waiting on the government to install customs and immigration personnel before declaring Solwezi as the country’s newest international airport.”

With such a long road journey for anything and everything that needs to be trucked into

the site, Kansanshi is on a mission to reduce costs wherever possible. “We are currently using 250,000 litres of fuel a day,” says Burger, “which all has to be brought in by tanker – a huge logistical challenge before mining even starts. We have a couple of major initiatives that will reduce our dependency on outside sources of fuel and should reduce our operating costs significantly.”

In a move designed to cut down on the

“Our plants use 1500 tonnes of acid a day,which at a nominal cost of $300 per tonne is almost half a million dollars every day”

Kansanshi vehicles currently use 250,000 litres of fuel a day

64 | be africa

First Quantum Minerals: Kansanshi Mining Plc

Plans are under way to reduce costs by constructing a new 1.2 million tonne concentrate smelter

number of truck movements needed per day, a new in-pit crushing plant is a key part of the expansion plans which will enable much of the ore to be moved by conveyors from pit to plant.

Where truck transportation is inevitable, a new electric trolley assist system is being installed. By fitting trucks with a couple of electric drive motors, integrated through gears with the conventional diesel engine, much of the work can be done by electric power, fed to the trucks by an overhead catenary. Going uphill, trucks can tap into the main grid and get a helping boost of power.

Another high cost area of the business, and onerous logistical consideration to boot, is the amount of sulphuric acid consumed. Either acid itself or the base ingredient sulphur is needed.

“Our plants use 1500 tonnes of acid a day,” says Burger, “which at a nominal cost of $300 per tonne is almost half a million dollars every day. It’s one of our biggest cost centres, accounting for about 11 percent of production costs. Today, as we are talking, a new 900 tonnes per day acid plant is being commissioned which will help minimise overall production costs until the final link in the chain – a new 1.2 million tonne concentrate smelter is complete.”

Considering the amount of copper produced in the region, Zambia currently doesn’t have enough smelting capacity to cope. First Quantum is investing $500 million in its own smelter at Kansanshi capable of processing 1.2 million tonnes of concentrate from which 300,000 tonnes of copper will

be africa | 65

Buks Haulage Limited (BHL),

Â

A division of Cargo Carriers

with head office located in Ndola, Zambia is known and recognised as one of the leaders in transport and logistical sectors in Zambia. Cargo Carriers, a listed globally known company recently acquired the majority share in BHL. As a team our vision is to improve the quality of transport and logistics in Sub-Sahara Africa. We promote community up-liftment, diversity and sustainability.

www.bukshaulage.co.za

KANSANSHI First Quantum Minerals: Kansanshi Mining Plc on Kananshi be Feature extractedtext (compared with to go here...

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as wellutaslabore cost. sed do eiusmodcongestion tempor incididunt “When plans et dolore magna aliqua.our Ut expansion enim ad minim veniam, quis nostrud exercitation are complete,” says ullamco Burger, laboris nisi ut“there aliquip willex stillea be commodo a shortfall consequat. Duis aute irure in of smelter capacitydolor but the reprehenderit in voluptate esse cillum figure will velit be very small dolore eu fugiat nulla pariatur.

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BUKS HAULAGE LIMITED Formed in Zambia in 2004, BHL specializes in the transport of various commodities with value added services and facilities. BHL is a dynamic entity offering total logistical solutions within Zambia and sub-Saharan Africa. We are renowned for our ability to bring logistical management methodologies to greater heights through our experience.

Our mission is to provide you with optimal transport and logistical solutions by combining loads when possible, ensuring that the vehicles for your product are optimally utilized and maintaining all stock levels on a weekly, or monthly basis. We are committed to honouring our agreements with our clients on time at all levels and to remain professional at all times.

Honesty, transparency and objectivity in dealing with clients are non-negotiable at BHL. We have also developed a powerful contractor base which is both an empowerment initiative and beneficial to your organization. Each

client is treated individually and offered real time management solutions pertinent to their organization. We give you peace of mind to focus on your core business, while we manage your transport / logistics.

In our experience, sound project management is vital and determines the success of both long and short term projects. Excellent communication is of the essence for effective decision making, delegation of tasks and liaison with all our customers at all levels.

BHL specializes in formalizing international delivery instructions either through import or export key transactions. We will handle export documents, licenses, permits, export declarations, inspection certificates, insurance documents and commercial invoices. BHL works in conjunction with the clearing and forwarding agency. www.bukshaulage.co.za

NOVEMBER 2012| |672 be africa

First Quantum Minerals:KANSANSHI KansanshiCOPPER MiningMINE Plc culpa qui officia deserunt Kananshi text... oxide ores asfeature well as the Lorem ipsum dolor used sit amet, mollit anim id est laborum. leaching process on consectetur Lorem ipsum dolor sit amet, mixed ores. adipisicing elit, sedAs dowith eiusmod tempor consectetur adipisicing elit, all African incididunt ut labore etfinding dolore sed do eiusmod tempor mining companies, magna aliqua.

Ut enim ad incididunt ut labore et dolore experienced workers is also minim veniam,but quis Solwezi nostrud magna aliqua. Ut enim ad a challenge, exercitation mco minim veniam, quis nostrud is actually quite ulla a sizable laboris nisi utWhen aliquipFirst ex exercitation ullamco laboris community. ea commodo consequat. nisi ut aliquip ex ea commodo Quantum first went there the Duis aute hovered irure dolor in Duis aute irure population around The Kansanshi mine isconsequat. undergoing extensive expansion reprehenderit inhas voluptate 100,000.

Today it swelled This is a caption this is a caption dolor in reprehenderit in velit esse cillum“We dolore voluptate velit esse cillum to above 400,000. have around 9,000 other contractors.

Accommodation for them is eu fugiat nulla says pariatur.

Excepteur dolore eu fugiat nulla pariatur. people on site,” Burger, “4000 on sint our not so much of a problem but it has Excepteur meant that occaecat nonby proident, suntand in Solwezi sint occaecat cupidatat sunt payroll andcupidatat the rest hired construction has grown into a non bit ofproident, a shanty town

MES INTERNATIONAL LTD MES International Ltd is an established supplier of products and services to the mining, quarrying and recycling industries.

Since its formation over four decades ago, MES has built its reputation as a “can do” supplier, available 24/7 to respond to breakdowns and urgent requirements with the highest level of service required for these unforseen occassions. MES International truly is a “one stop shop” for your operating needs. We supply the highest quality precision engineered crusher spares for machines including Nordberg, Svedala, Telsmith, Sandvik, Allis Chalmers. Our conveyor belting is available from several locations throughout Africa, in a range of widths and strengths to meet your requirements, and with a 24 hour breakdown response, we are always here when you need us. With our team of highly qualified and experienced vulcanisers, we can undertake

hot & cold joints, pull up joints, clipped endless joints, maintenance and training etc. We manufacture Material Handling Systems including Installation & Commissioning, from overland conveyor structures to waterside loading systems. We also design, re-design, maintain and supply conveyor structure and radial stacker systems, along with drums, rollers and take-up units through our Engineering Services, who can also provide strip down and re-build services for crushers on scheduled shutdowns. New, used and refurbished Site Equipment including plant and machinery can be supplied for your site requirements.

MES look forward to continuing to provide Kansanshi Mine with their crusher wear parts and conveyor belting, safe in the knowledge that they are to the quality they know and trust. www.mesinternational.co.uk

NOVEMBER 2012| |692 be africa

Seen

Contact us today and put your company in the spotlight!

vincent@bus-ex.com 70 | be africa

with very little in the way of organised town planning. We do a lot to improve matters – at the moment we are building 1000 additional houses - and are willing to do even more to make conditions better for all concerned but it’s a sensitive area with the local council wanting to stay in control.”

It shouldn’t be a question of money.

Kansanshi is said to be Zambia’s biggest source of revenue. Apart from the 20 percent of Kansanshi that is owned by the parastatal ZCCM IH, First Quantum contributed US$611 million last year in various taxes – double the previous year.

“But there are no existing mining skills amongst the local population,” says Burger, “and we have an obligation to try and give employment to those who actually come from

First Quantum Minerals: Kansanshi Mining Plc

Haul trucks

this region. It’s a challenge. Many have never even ridden a bicycle – let alone a car – and now they are in control of mining equipment worth many millions of dollars. As you can imagine, there is a lot of training needed and a considerable amount of supervision.”

The weather can also contribute problems.

During the rainy summer season from November to April, it rains 10 to 50mm almost on a daily basis. Not surprisingly, a

lot of this ends up at the bottom of the pit and at their height, drainage pumps are shifting 75,000 m3 of water a day. On the other hand, the rain is short lived and predictable, which has enabled the mine to plan accordingly to minimise disruption.

But Kansanshi is not the only African interest owned by First Quantum. Part of all its Solwezi expansion plans is the development of three new potential mines that collectively go under

“there are no existing mining skills amongst the local population.

As you can imagine, there is a lot of training needed” be africa | 71

Kansanshi This is a caption this is aCopper captionMine

First Quantum Minerals: Kansanshi Mining Plc the working name of Trident. The one nickel and two copper prospects lie about 120km from Kansanshi and will cost in the region of $1billion to develop. Once in opencast production, Trident is expected to eventually contribute 300,000 tonnes of copper per annum.

First Quantum should be a big player over the border in the Democratic Republic of Congo, too but a dispute with the government there has shut down all activity. The mining company had invested $1 billion developing the Kolwezi copper-cobalt project, only to see it seized by the authorities. A second interest at the Frontier mine – reputed to be the Congo’s biggest tax contributor and providing employment for 1,500 nationals, was also seized by armed police and soldiers in 2010, seemingly in retaliation for contesting the Kolwezi action in international arbitration. Ultimately the matter was settled out of court with ENRC compensating First Quantum for their seized assets.

In the meantime, First Quantum is working hard on meeting its objective of becoming ‘a globally diversified mining and metals company.’ In the absence of activity in the Congo, it has a portfolio of four operating mines in Zambia, Australia, Finland and Mauritania, producing LME grade “A” copper cathode, copper in concentrate, nickel concentrate, gold and sulphuric acid.

In various stages of development are another three projects: two in Zambia and one in Haquira in Peru.

For more information about First Quantum Minerals: Kansanshi Mining Plc visit: www.first-quantum.com

be africa | 73

AFRICAN MINERA

The first ore shipment left the Sierra Leone’s p enterprise that will not only be a major resour 21st century but will help to underpin Sierra

written by: Jo research by: Ro 74 | be africa

African Minerals

ALS STRIKES IRON

port of Pepel in 2011, marking the start of an rce for the global steel industry throughout the a Leone’s economy through its reconstruction

ohn O’Hanlon obert Hodgson be africa | 75

Workers carrying out maintenance

African Minerals

A

frican Minerals (AML) started still defining and extending the deposit as life in 1996 as the Sierra construction went ahead, though the risk was Leone Diamond Company, small, with the quality and quantity of the 12 focused on Sierra Leone’s billion ton deposit already well understood. deposits of alluvial diamonds.

Since Tonkolili is located 200 kilometres In 2005 it raised £20 million on London’s inland secure rail and port facilities were AIM market and three years later confirmed as important as the mine itself. Back in its Tonkolili magnetite resource in Sierra November 2008 AML had secured a 99 year Leone’s Northern Province. lease on the rail and port infrastructure Financing the Tonkolili project and fast surrounding the project. Fortunately, there tracking it to production was a priority was some pre-existing infrastructure from a and the company set about raising funds. previous mine operation which enabled the Through 2010 and early 2011 it raised company to fast-track the development of the over $1.1 billion to fully fund Phase I port operation at Pepel, as well as the first 74 development of the project, kilometres of the railway— which went into production essentially a rehabilitation of in late 2011. In March 2012 what had previously existed. the Company completed Currently ore from Tonkolili a landmark $1.5 billion is shipped out of Pepel port, which has limited draft but is transaction with Shandong Iron and Steel Group (SISG) the principal iron ore port for in return for a 25 percent Sierra Leone currently.

Size of JORC shareholding in the Tonkolili Originally the plan was compliant resource project companies. The SISG to upgrade the nearby port transaction is the largest of Tagrin as a deepwater ever foreign investment in Sierra Leone and facility that could cope with the vastly the largest single investment by a Chinese increased volumes expected in Phase II and state-owned enterprise in Africa: as part of beyond but in December 2012 the company the deal SISG secured a proportion of the ore announced its intention to abandon the from the mine under an offtake agreement. Tagrin development, which would involve The company chose not to follow the construction of a new rail spur as well, usual timeline of carrying out the initial and continue to use Pepel, upgrading the scoping study, definitive engineering study infrastructure there instead. and bankable feasibility study before seeking As CEO Keith Calder commented: “We funding, commencing construction, and have made good progress with value starting up operations. Many of the normal engineering and optimisation in our processes were tackled simultaneously Tonkolili mine expansion strategy. While rather than sequentially. The company was our strategy regarding the mine and

12 Billion tons

be africa | 77

Excellence in Engineering Infrastructure • Construction, maintenance and upgrading of railway track systems • Provision of mechanised on-track plant and machinery • Flash butt and thermit welding of rails • Ultrasonic testing of rail welds • Gantry, stacker reclaimer and ship loader trackwork • On-track survey and alighment using customised trolley tracks • Crane tracks, for the building and manufacturing sectors

• Railway siding design and construction • Railway material refurbishment and sales • Overhead traction equipment (OHTE) electrification • Trackwork encased in concrete • Track-related civil and ancillary works • Management of industrial rail networks • Manufacture of rail-related precast concrete items • Providing clients with turnkey solutions.

Tel no: + 27 (11) 845 5300 / +27 (21) 531 7540 Email: info@racec.co.za | www.racec.co.za

NEW PRECIOUS RESOURCE DISCOVERED

Click here to visit our dedicated homepage for the mining community www.bus-ex.com/mining BEST PRACTICE IN MINING

African Minerals

Trucks crossing on the pit ramp

plant is mostly unchanged, we have now decided to leverage our existing rail and port infrastructure at Pepel to achieve the expanded export tonnage. This will significantly reduce capital costs, and de-risk the project’s delivery, whilst at the same time reducing social and environmental impacts. This approach will provide a significantly better value, capital

efficiency and risk proposition for all of our stakeholders.”

Phase II will see the product change from 20 million Tons per annum (tpa) of straight ore (known as direct shipping ore) to concentrate from Tonkolili’s saprolite haematite reserves at an estimated rate of 35 million tpa, and now that shipping will remain at Pepel the estimated cost of the total expansion plan

“We have now decided to leverage our existing rail and port infrastructure at Pepel to achieve the expanded export tonnage” be africa | 79

“Tonkolili will play a significant part in Sierra Leone’s reconstruction and onward economic development” has come down by a third to $2 billion, with reduced risk and lower environmental and social impact, says AML. So many discoveries have been made in the region that people in the industry are beginning to call West Africa the new Pilbara, after the massive iron ore fields in Western Australia. Certainly it promises to

80 | be africa

provide a viable alternative for the Chinese steel manufacturers, whose demand for iron ore cannot be satisfied by present day world resources. Tonkolili, with enough resources to last to the end of this century, will play a significant part in making this happen, and is clearly vital to Sierra Leone’s reconstruction and onward economic development. This

African Minerals

Reclaimer at work

project alone is expected to double the county’s GDP once Phase II is under way in 2016.

A major employer, taking direct and subcontract labour into consideration, AML is committed to replacing expatriates with local personnel. This means promoting local people to supervisor roles as soon as their skills are sufficiently developed. It creates a culture of job progression, lower turnover of staff and the understanding that mining is a career choice that makes sense in a country where jobs in the sector are certain to increase.

For those in the community who don’t plan to make a career in mining, however, AML’s innovative business incubator programme helps them benefit from the presence of the

mine. Not content with arm’s length, AML is physically going into the local communities and carrying out skills assessments to identify what skills already exist there and how entrepreneurship could be encouraged.

12 small businesses are now in the scheme, around 80 percent of them food suppliers providing fruit, vegetables and rice to the various sites within the project. In addition, the company has supported tailoring and brickmaking businesses.

For more information about African Minerals visit: www.african-minerals.com

be africa | 81

82 | be africa

Noble Mineral Resources

The gold standard Ghana is home to some of the world’s most exciting gold prospects and Noble Mineral Resources is one of the companies leading the way in exploring and developing the country’s large-scale deposits

written by: Will Daynes research by: Jeff Abbott

be africa | 83

Drilling core samples for Gold exploration

Noble Mineral Resources

G

hana holds a particularly kilometres North-West of Accra, the Bibiani special place in recent African open-pit gold mine was commissioned in history, being as it was the 1998. Situated within the Sefwi-Bibiani belt, first sub-Saharan Africa nation it plays host to over 17 million ounces of gold. to gain independence from The concession area of approximately 49 European colonialism in 1957. In the near square kilometres is located near the town five decades since the country has gone on to of Bibiani, approximately 80 kilometres become one of the fastest growing economies South West of the Ashanti capital, Kumasi. in the world with one of the highest GDP per The principal and most practicable access to capita in all of Africa. the area is from the east along the Kumasi One of the primary reasons for this growth road. It is here that an aggressive exploration is the country’s diverse and rich resource base. programme is currently underway in order The mining industry of Ghana today accounts to add substantially to the existing resource for five percent of its GDP, with minerals base, with recent drilling returning highmaking up 37 percent of its grade results from near total exports, of which gold mine targets. contributes over 90 percent.

In addition to the Bibiani Bearing these figures in Project, Noble holds the mind it becomes immediately Cape Three Points, Brotet clear why the main focus of and Tumentu Gold Projects Ounces of gold estimated Ghana’s mining and minerals located within the southern to be held within the Bibiani concession development remains firmly extension of the Ashanti Gold fixed on gold.

Belt. The Cape Three Points Noble Mineral Resources concession covers a total is an ASX-listed company, exploring for area of more than 79 square kilometres of and developing large-scale gold deposits in prospective ground within the structurally Ghana’s goldfields. Incorporated in April 2007, complex Birimian metavolcanics and Noble has brought together an experienced metasediments. At least twenty historic gold management team that possesses the workings and prospects are recorded by technical expertise capable of identifying and previous workers, in addition to ten historic developing high quality mineral prospects. gold working prospects located within the In March 2012, production commenced at Cape Three Points Forest Reserve.

On completion of a successful IPO, the company’s flagship Bibiani Gold Project with the first gold pour. This achievement and satisfaction of the terms of an option ramped by Noble’s stable production rate and agreement, Noble will hold AXMIN Limited’s subsequently propelled it into the ranks of existing rights over the joint venture agreement West Africa’s mid-tier gold producers. between AXMIN and Consolidated Minerals Located in the West of the country, 250 Limited (Ghana) and will earn a 55 percent

17 million

be africa | 85

Chritech Engineering Services is involved in Mechanical, Civil Engineering Works, General Building works and Supplies with various Mining Companies.

We specialise in: • General Construction • Steel Erecting • Fabrication • Pipe Fitting • Sand Blasting • Painting • Labour Supply • General Building • Civil Works • Fencing • Land Scaping • Roofing • Cladding & General Supplies

P. O. BOX 153, Bibiani, Western Region, Ghana – West Africa.

Telephone: Office +233-31 20 99 019 | Direct +233-20 841 672 4, +233-24 461 239 3, +233-264-612393 e-mail: eschritech@gmail.com

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CHRITECH ENGINEERING SERVICES Based in Bibiani, Ghana, Chritech Engineering Services is involved in mechanical, civil engineering works, general building works and a range of services to various mining companies.

Our services include design and construction work for process plant, mechanical installations and repairs, sand blasting, painting and planned maintenance shut downs.

In the mining industry our core competencies cover design and construction works for processing plants, tailings dams, stockpile management, dust suppression, long haulage of bulk material, labour and material supply.

We have a broad labour pool for hire on building, civil and mechanical installations ranging from carpenters, masons, welders (x-ray, argon, fusion, etc), pipe fitters, mechanical fitters, fabricators, sandblasters, steel erectors and also offer competent supervisory support for our artisans.

We have a good performance record with Noble Gold Bibiani Limited, Kinross Gold Mine Chirano, Central African Gold Limited, Ghana Bauxite Company Limited, and Drilling and Mining Services Limited (DAMS). Our managers have an excellent track record in managing and running our projects in various engineering disciplines with a high degree of professionalism. Based in Bibiani, a mining town in the western region of Ghana, we have the ability to move quickly to sites far and near at reasonable notice.

Value for money is one of our major priorities.

We position ourselves “fairly� in the rate range in relation to other competitive service providers within the sub-region, yet we maintain the highest safety standards in managing our contract to suit the standards set by our clients.

E. eschritech@gmail.com

be BE africa WEEKLY| |872

“Noble’s strategy for the future revolves fundamentally around the development of its assets” programme on the Brotet Licence indicate the continuation of the Morrison trend for some kilometres with further soil geochemistry analysis required which will form an integral part of further exploration on this concession.

The exploration of this tenure will be carried out in conjunction with the Cape Three Points programme.

88 | be africa

The Tumentu Concession, meanwhile, is located in the western region of the country, approximately 221 kilometres from Accra.

The concession itself is 8.74 square kilometres in size and is positioned immediately between the Prestea Gold Mine and the Salman-Anwia project area, currently being explored by Adamus Resources, where a total resource of

Noble Mineral Resources

Haul truck transporting the ore

1.6 million ounces has recently been reported.

On completion of a successful IPO and satisfaction of the terms of an option agreement, Noble acquired the existing rights over the joint venture agreement with Obotan Minerals Company Limited to earn a 78 percent interest in the Tumentu Concession by spending $170,000 on the concession in October 2008. Obotan retain a ten percent interest in the joint venture up to a decision to mine, which was negotiated within the parameters of the joint venture agreement.

Additionally, The Republic of Ghana retains ten percent interest in the project.

Noble’s aims and strategy for the future revolve fundamentally around the development

of its assets. This includes establishing the Bibiani Gold Project as a 150,000 ounce per annum gold producer, unveiling the possibilities for its under-explored Assuonta and Bibiani North projects and demonstrating the exploration potential of Cape Three Points, Brotet and Tumentu. Further to this, the company looks forward to exploring and developing new mineral deposits with the goal being to significantly enhance the value of its current undertakings.

For more information about Noble Mineral Resources visit: www.nobleminres.com.au

be africa | 89

Amlib

Exploring a new frontier Liberia remains one of the few remaining prospective parts of the world yet to be fully explored. Chief executive officer Geoff Eyre talks about how Amlib is working to help fulfil the country’s great economic potential

written by: Will Daynes research by: Celina Bledowska

be africa | 91

The Amlib drilling team have over 20 years of experience in diamond core drilling

Amlib

W

hile for much of its have increased our operating and exploration 161 year history Liberia capabilities within the country significantly, has been a stable and investing in people and infrastructure so as productive democracy, to have the ability, at any one point, to be recent decades have operating on multiple exploration targets across seen the country plagued by civil war and all four licences. This in turn helps us generate adversely affected by the drying up of results more quickly and allows us to move our foreign investment. Nevertheless, the current projects forward in a timely manner.” government of Liberia, led by President Ellen All of Amlib’s licences currently boast Johnson-Sirleaf, is determined to lead the significant levels of artisanal activity. The country into a new age of economic growth. largest of these is Cestos, a huge licence While it remains largely unexplored, Liberia spanning nearly 2000 square kilometres. It is has a well-known potential for primary and here that the company has spent a considerable alluvial gold and diamonds, and has been amount of time and effort in recent years shown to possess a wide range gaining access to its target of minerals including beryl, areas in order to carry out tin, phosphates, zinc, copper, the initial exploration phases.

Most recently the company has lead, uranium and iron.

Amlib is an exploration commenced drilling on three specific targets, with early company focused primarily grams per tonne. The results suggesting the area has on gold in Liberia, with average grade of gold found some very positive similarities a business development within the Kokoya licence between itself and the Ashanti mandate encompassing other mineral opportunities.

Gold Belt in Ghana.

“While we have been operating in the A few hours outside of Monrovia, Amlib has country in our current form since 2000,” also been working recently at Kle Kle where explains chief executive officer, Geoff Eyre, it has drilled a total of 69 holes to date on “the history of the licences that we hold dates its targets there. Again, initial results have back to the 1980s. It was at this time that our been very positive with the company now founding geologist, Dr Nathaniel Richardson, embarking on a three dimensional structural was director of the US Geological Survey interpretation to determine the details for and it was his knowledge and experience of the next phase of drilling. Similarly, Amlib the region that led to Amlib becoming the is preparing to carry out a helicopter-borne organisation it is today.” exploration programme in the coming months Amlib’s operations are focused around its over its Zwedru licence. This will be done to Cestos, Kle Kle, Zwedru and Kokoya Mineral test a 12 kilometre soil anomaly. “Should the Development Agreements (MDAs). “During results of these tests come in as expected,” Eyre the last three years,” Eyre continues, “we enthuses, “it will result in the discovery of a

2.6

be africa | 93

significantly sized gold anomaly that I believe will start to excite the majors in the region.”

Last, but certainly not least is the company’s Kokoya licence, which hosts a NI 43-101 compliant resource of 410,000 at an average grade of 2.6 grams per tonne of gold. Amlib is actively looking to fund development of this project, which is expected to produce 50,000 ounces of gold per annum over five years.

Amlib has also identified significant growth potential for the Kokoya licence, which boasts a number of additional gold targets that are still to be followed up on.

Although Liberia can claim to have extremely favourable geology, because of the aforementioned historical troubles that have beset the country it remains one of the few places that is prospective for gold, diamonds and other minerals that has yet to be explored.

While being one of the early stage explorers into the country has brought Amlib considerable benefits, not least the chance to secure the rights to some highly prospective ground, it has also meant that the company has had to deal with several big challenges.

“In addition to the challenges presented by the climate of the region,” Eyre says, “we also had to overcome the lack of infrastructure that existed prior to our arrival in Liberia as

well as the fact that we did not have access to the sort of country wide exploration data that one might expect to find in other countries.”

What Amlib found was that the best way to overcome such challenges was to invest considerable amounts of capital into building up its own capabilities internally, funding its own plant and logistics infrastructures. As Eyre goes on to highlight, Amlib has also developed its own in-house drilling service. “Having

“Liberia remains one of the few places that is prospective for gold, diamonds and other minerals that has yet to be explored” 94 | be africa

Amlib

Amlib Drilling Services, working through Liberia’s wet season

this capability is somewhat to third parties, while unusual for an explorer such expanding the fleet in order as us. It has, however, been to take advantage of the an extremely advantageous opportunities that continue addition to the business.” to present themselves in ounces per annum.

As well as allowing Liberia. Not only has this Of gold that Kokoya is service provided us with an Amlib to drill at much expected to produce over alternative revenue stream cheaper rates than would a five year period but it has also presented us otherwise be possible, its with the opportunity to look internal drilling service allows it to test targets that into expanding more broadly only require the company to drill a few in the future, beyond Liberia and into other thousands metres initially. This allows it parts of West Africa.” to avoid signing minimum metres contacts One thing that Amlib has been acutely that would be highly inefficient and a drain aware of since its first day within Liberia is the fact that in order to operate successfully in on resources.

“In the last six months or so,” Eyre states, such parts of the world it is imperative that you “we have started to make rigs available engage and work with the local community.

50,000

be africa | 95

“We take the corporate social responsibility aspect of our business extremely seriously,” Eyre says, “and have undertaken a number of projects in the licence areas in which we operate, including the building of junior schools in the Kokoya area. In addition to this, in Cestos, we pay for the salaries of the teachers that run not only the schools we have built but others in the area also. As well as putting in water wells in the local communities in which we operate,

we also have a national relationship with the charity, Cure International. It is on behalf of this group that we have recently funded the refurbishment of an operating theatre at JFK Hospital in Monrovia that is now being used to treat hydrocephalus and save children’s lives.”

Amlib is undoubtedly in the midst of an exciting period in its history and it is over the coming months and years that it intends to drive a number of programmes and initiatives

“Driving the company’s developments forward is a highly qualified and dedicated technical team that are helping to deliver on Liberia’s potential”

Upgraded railway line linking Kokoya project to Buchanan Port in Liberia

96 | be africa

Amlib

Bill Brodie Good, COO, with the earth science students Amlib sponsor

forward in order to grow further. “One of the most important things on our agenda,” Eyre reveals, “is the development of the Kokoya project, which will provide the business with a solid cash flow within a relatively short space of time. Meanwhile, we expect the next round of drilling at Kle Kle to produce more positive results as we begin to better understand the structure and mineralising controls required to work on the resource.”

Elsewhere within the company, Amlib has set in motion plans to expand its drilling services, potentially alongside a third party partner. This would also begin to generate

increased revenues for the business and allow Amlib to continue unabated with its exploration programmes. “Driving all these developments forward,” Eyre concludes, “is a highly qualified and dedicated technical team. These are the individuals that are helping to deliver on Liberia’s potential, while at the same time mapping out Amlib’s future and making it more robust as an organisation during these challenging times.”

For more information about Amlib visit: www.amlibgroup.com

be africa | 97

Jindal Africa

A land of Jindal Africa has been tasked by its parent company, Jindal Steel and Power Limited (JSPL), with harnessing the immense potential that Africa has to offer

opportunity written by: Will Daynes research by: Jon Bradley

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CIC Energy’s planned Coalto-Hydrocarbons (CTH) Project intends to convert coal to low sulphur diesel fuel and associated products

Jindal Africa

S

eeing as Africa produces more than 60 different metal and mineral products, and is a major source of several of the world’s most important commodities, it is little wonder that it remains an area of profound interest for mining companies.

While exploration and mining developments across the continent have undoubtedly increased in recent decades, there is still considerable scope for expansion.

One company that has been making waves across Africa over the last several years is the multinational conglomerate, Jindal Steel and Power Limited (JSPL), a leading figure in the steel, power, mining, coal to liquid, oil and gas, and infrastructure sectors. Recognising that Africa is indeed endowed with great mineral wealth, as well as a nation of warm, hardworking and committed people, JSPL established Jindal Africa in 2008, with its remit being to discover minerals primarily for JSPL’s steel production in India.

“Our African operations,” explains chief executive officer of African Business Ventures, Ashish Kumar, “span across South Africa, Mozambique, Botswana, Zambia, Namibia, Tanzania and Madagascar, and provide direct and contract-based employment for approximately 2500 people.”

Today, Jindal Africa is working diligently to expand its footprint across the continent.

Its headquarters is based in Johannesburg and it is from here that it overseas the businesses’ regional operations and on-going expansion plans. Its operational activities in the country include the Kiepersol Colliery, outside the town of Piet Retief

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Ut enimcoal ad magna aliqua. Ut enim ad quality anthracite minimisveniam, quis nostrud minim veniam, quis nostrud that sold locally and exercitation ullamco laboris exercitation ullamco laboris internationally. nisiInut 2012, aliquip ex ea commodo nisi ut aliquip ex ea commodo Jindal Africa consequat. irure This is a caption this is a caption consequat. Duis aute irure started itsDuis coalaute mining operations in Mozambique’s The Kiepersol South Africa dolor in reprehenderit in dolor in Colliery, reprehenderit in voluptate velit esse cillum coal-rich Moatize area.dolore eu fugiat voluptate velit esse cillum dolore eu fugiat nulla country’s pariatur. thermal-grade Excepteur sint coal occaecat nulla apariatur.

Excepteur occaecat lasting and significantsint impact.

JSPL The and make fortunate cupidatat non proident, in culpa qui Mozambique cupidatat non was proident, sunt to in have culpa first qui significant coking coal sunt reserves present officia deserunt mollit anim id est Africa laborum. officia deserunt mollit anim laborum. advantage, being oneidofestonly three a major opportunity for Jindal to mover

RRL GRINDROD RRL Grindrod Locomotives is proud to be associated with Jindal Steel and Power Limitada Mozambique (“JSPL”).

In Partnership with JSPL, RRL Grindrod will be managing the rail logistic solution for the open cast mining project at Chirodzi.

Our involvement in the project includes the manufacture, maintenance and operation of the locomotives freighting coal on the Sena Line to the port of Beira.

About RRL Grindrod RRL Grindrod is a diversified rail and logistics company which aims to provide rail engineering and operations solutions for customers across the African continent.

Our main service offerings are: Locomotive and wagon manufacture which includes design, manufacture and sale of rolling stock, rolling stock refurbishment, locomotive leasing and wagon maintenance.

Rail operations services include train crewing, driver training and management, rail siding and cargo management.

Our clients vary from mainline rail operators requiring long haul traction to large and medium-sized mining operations with a need for short haul, branch line or shunting services. We have a growing footprint on the continent with existing operations in several African countries including Congo Brazzaville, Democratic Republic of Congo, Mozambique, Sierra Leone and South Africa.

As a part of the wider Grindrod Group the company is committed to providing customers with a seamless pit-to-port rail solution to freight bulk cargo in the region.

We look forward to a lasting partnership with JSPL as we continue to keep rail freight moving!! www.rrlgrindrod.co.za

WEEKLY| 103 |2 beBEafrica

Arlona Engineering, which is based at the Durban Harbour, is one of the leading designers and manufacturers of bulk handling and lifting equipment in Southern Africa.

The company, with extensive experience in the design and manufacture of innovative handling equipment, has the expertise and machinery to manufacture equipment according to stringent specifications. This design and manufacturing service is enhanced by a specialised proofloading facility for lifting equipment. www.arlona.co.za

Jindal Africa

Jindal Africa hopes to develop Zambia’s copper resources

international companies to mine the rich hand, represents Jindal Africa’s foray Moatize region in the Cahora Basa district into the copper industry, where it is in of Tete province. the process of exploring and developing Further afield, the company has plans to greenfield copper concessions. Jindal Africa establish a cement plant in Madagascar that hopes to play a pivotal role in developing will be supplied by its own Zambia’s copper resources limestone mines. Meanwhile, and downstream facilities.

Jindal Africa is involved “In the past twelve in extensive coal, copper months,” Kumar continues, and iron ore exploration “we have made significant activities in Tanzania and investments that we feel has been granted a license will quickly bring added The year that Jindal to mine copper. value and growth to the Africa was established Zambia, on the other business. The first of these

2008

be africa | 105

Road construction doesn’t have to be as costly, time-consuming and complicated as you think.

Global Civil Solutions provides innovative, leading edge road construction technology to the Mining industry. The company is a proud supplier to the Jindal Group with a list of clients that include Jindal Mining, Anglo Platinum, Impala Platinum and Australia based Stonewall Mining.

Recent projects include the design and construction of the main access haul road to the Jindal Mine at the Piet Retief Colliery using a natural soil stabiliser (J.G.R.S) which was speciďŹ cally designed to handle Heavy Haul Loads. International projects include a joint venture with Jindal Group in India to complete a state of the art road stabilisation development with the product manufactured locally at the Jindal Raigarh Plant and used extensively throughout the Indian Sub-Continent.

For more information contact Andy Shand on +27 83 442 8924 email andy@globalgroups.org or visit www.globalcivils.com

Jindal Africa is the development of our Global Civil Solutions Mozambique operations.

Global Civil Solutions is a construction company specialising Here we have invested in the field of environmentally driven engineering. The considerable capital in both company provides leading edge road construction technology infrastructure projects and to the Mining Industry and has developed specialist soil in our people, and this stabilisers as fast, cost-effective methods for road and rail is already starting to construction. Global Civil Solutions is headed up by Andy Shand who has extensive experience in the construction produce results.” and project management industry, having successfully A not he r i mp or t a nt managed projects ranging from highway construction, mining development for t he construction, resort hotel construction to infrastructure company was the recent development, waste water treatment and water purification. acquisition of the BotswanaClients include the Jindal Group, Anglo Platinum, Impala based Canadian company, Platinum and Australia based Stonewall Mining.

CIC Energy, for $116 million. elschke@globalgroups.org This purchase highlights Jindal’s plans to tap into the power business in southern Africa.

These plans that see the organisation invest up to $700 million in Botswana over the next three years.

“Beyond these developments,” Kumar highlights, “we have also acquired a number of greenfield exploration projects in South Africa and Namibia where we are now in the process of conducting several extensive drilling campaigns.”

Throughout the seven countries in which it is present, Jindal Africa strives

“Jindal plans to invest up to $700 million in Botswana over the next three years”

Coal train on the move from the Kiepersol mine

be africa | 107

EXXARO RESOURCES Jindal Africa tempor incididunt ut labore ipsum to Lorem work closely with dolor local sit amet, consectetur et dolore magna aliqua. Ut communities and key adipisicing elit, sed long do enim ad minim veniam, stakeholders to foster quis nostrud exercitation eiusmod tempor “In incididunt term relations.

South ullamco laboris nisi ut ut labore et dolore magna Africa for instance,” Kumar aliquip ex ea commodo aliqua. Ut“we enim minim enthuses, lookad to employ consequat. Duis aute irure veniam, quis while nostrud local people, our dolor in reprehenderit in exercitation mco local procurementulla policies voluptate velit esse cillum laboris that nisi ut aliquip we ex ensure wherever dolore eu fugiat nulla ea commodo are based we consequat. endeavour pariatur. Excepteur sint Duis aute the irure dolor in to source majority of reprehenderit in voluptate work locally from reliable This is a caption this is a caption occaecat cupidatat non proident, in culpa qui velit essewho cillum dolore CSR is a central theme that drives Jindal suppliers have proven Africa’ssunt business operations eu fugiat nulla pariatur. capable of meeting the strictExcepteur sint officia deserunt mollit anim id est laborum. occaecat cupidatat non proident, sunt in important Lorem ipsum dolor issititsamet, conditions and standards that we set.” strengths abilityconsectetur to acquire, culpa quipart officia mollit anim id and adipisicing elit, sed do some eiusmod tempor Being of deserunt a multi-national, multisubsequently retain, of the most est laborum. ipsum dolor sit amet, skilled incididunt ut labore magna employees in et thedolore industry.

“In aliqua.

India,” billion dollarLorem company, it won’t surprise consectetur sedAfrica’s do eiusmod Ut enim ad minim quis nostrud many to hearadipisicing that one ofelit, Jindal most Kumar enthuses, “it isveniam, fair to say that Jindal

JOY GLOBAL One Joy Global – It Starts Here It starts with an unparalleled commitment to mining. Our business is focused solely on serving surface and underground mining operations with superior equipment and direct service that achieves the lowest cost per unit of production over the life cycle of the equipment.

Our reach is global, with facilities and service centers that span six continents and more than twenty countries. But our focus remains local.

Our people and services are close to the mines to provide better decisions and solutions.

Above ground and below, we strive to create a more seamless experience that raises the bar for the entire industry.

And it starts with Joy Global. www.joyglobal.com Joy Global (Africa) 1 Steele Street, Steeledale, South Africa Tel: +27-(11)-406-6100 | E. info@joyglobal.com

OCTOBER 2012| 109 |2 be africa

NEW PRECIOUS RESOURCE DISCOVERED

Click here to visit our dedicated homepage for the mining community www.bus-ex.com/mining BEST PRACTICE IN MINING

Jindal Africa

Jindal Africa’s philosophy is to build strong and long-term relations with communities

Group is so well regarded that it is the dream of many simply to work for the organisation.

What we want to do is recreate that same level of passion here in Africa. Yes we may be a relatively new company in the grade scheme of things, but we already believe that we have the tools needed to make this a very special place to work.”

As well as wanting to cater for today’s workforce, the company is also taking significant steps to nurture its next generation of employees. It is doing so by awarding specific scholarships to some of the most promising young individuals on the continent and providing them with the opportunity to study for a four year

“Africa represents a source of immense opportunity for JSPL, particularly when it comes to mining” be africa | 111

Jindal are undertaking greenfield and brownfield projects

Jindal Africa

$166 million The price paid to acquire CIC Energy degree in India. Once that time has passed they will then be able to return to Africa and apply the knowledge and skills they have gained abroad, as well as have the opportunity to work in one of the Jindal Africa operations.

Africa represents a source of immense opportunity for JSPL, particularly when it comes to mining, and it is because of its growth, rapid development and possession of a culture that is not dissimilar to that of India that JSPL is very confident when it comes to tapping into the continents’ potential.

“At present,” Kumar concludes, “we are undertaking exploration and greenfield and brownfield projects, with our focus also beginning to turn towards important infrastructure projects. Thus it is clear that as a company we are very positive about what Africa has to offer. By harnessing its potential correctly there is no reason why we can’t reach a point where at least 20 percent of JSPL’s total group revenues come from Africa in the not too distant future.”

For more information about Jindal Africa visit: www.jindalafrica.com

be africa | 113

Champion

of change

114 | Be africa

Exxaro Resources An extraordinary South African resource company with a strategic vision to become a $20 billion company by 2020

written by: Martin Ashcroft research by: Robert Hodgson & Jon Bradley

Be africa | 115

Trucks are driven out of the pit electrically to increase productivity and save diesel

Exxaro Resources

E

xxaro Resources is one of the railed directly to Mittal SA under a long-term largest South African diversified supply agreement. resource groups, with interests Such are the demands for power in South in coal, mineral sands, industrial Africa, however, that Grootegeluk’s capacity minerals and iron ore. The is being doubled in order to supply the new company is the second-largest South African Medupi power station that Eskom is building coal producer, and the third-largest global nearby. The $1.3 billion Grootegeluk Medupi producer of mineral sands, a class of ore Expansion Project (GMEP) will increase deposit which is an important source of throughput to 14,000 tonnes per hour, and zirconium, titanium, thorium, tungsten, and supply Medupi with 14.6 million tonnes per rare earth elements. annum of coal for 40 years.

Exxaro’s eight managed coal mines produce Exxaro has a strategic target to become a over 40 million tonnes per annum (Mtpa) US$20-billion company by 2020—a global, of power station, steam and coking coal, as diversified company with top-quartile returns.

To help achieve this it has well as char. The company is set targets for operational the largest supplier of power excellence, aiming to station coal to South Africa’s national power utility, Eskom. reduce its carbon footprint, Exxaro’s Grootegeluk improve on the safety and Tonnes per hour empowerment of its people, mine is one of the mostcapacity of Exxaro’s efficient mining operations and become an employer expanded Grootegeluk in the world, and operates of choice and an agent for beneficiation plant the world’s largest coal change in South Africa.

Achievements have already beneficiation complex, where 9,000 tonnes per hour of run-of-mine been registered in this regard, with a Standard coal is upgraded in six different plants. of Excellence Award in the 2012 Deloitte Best Situated 25 km from Lephalale in South Company to Work For survey. CEO Sipho Africa’s Limpopo province, this open-pit Nkosi said the group is exceptionally proud mine has an estimated minable coal reserve of this achievement. “This is a target we set of 2800Mt and a total measured coal ourselves for 2016, and we have achieved it resource of 4600Mt, from which semi-soft in 2012. This is not an easy award to win – it coking coal, thermal coal and metallurgical is the result of concerted effort to achieve a coal can be produced. clear goal to continually improve our people Some 14,8Mt of annual production is power management capabilities and is therefore station coal, transported directly to Eskom’s more valued as a result.” Just a few weeks Matimba power station on a 7 km conveyor after this award, Nkosi himself emerged belt. Grootegeluk also produces 2,5Mtpa of victorious at the Southern Africa Chapter of semi-soft coking coal, the bulk of which is the Ernst & Young World Entrepreneur Awards

14,000

Be africa | 117

EXXARO Exxaro RESOURCES Resources tempor incididunt ut labore Lorem ipsum dolor 2012, winning the Master sit amet, category. consectetur et dolore magna aliqua. Ut Entrepreneur adipisicing elit, sed do enim ad minim veniam, In terms of operational quis nostrud exercitation eiusmod tempor incididunt excellence, in August this ullamco laboris nisi ut ut labore etbecame dolore the magna year Exxaro first aliquip ex ea commodo aliqua.

Ut in enim ad minim company South Africa consequat. Duis aute irure veniam, nostrud to achieve quis Road Transport dolor in reprehenderit in exercitation ulla mco Management System (RTMS) voluptate velit esse cillum laboris nisiand ut aliquip ex consignor consignee dolore eu fugiat nulla ea commodoThe consequat. accreditation.

RTMS is pariatur. Excepteur sint Duis aute irure voluntary dolor in an industry-led, non reprehenderit voluptate self-regulation in system that This is a caption this is a caption occaecat cupidatatIron-ore proident, sunt in culpa qui velit esse cillum dolore encourages consignees, eu fugiat nulla pariatur.

Excepteur sint officia mollit anim id est laborum. consignors and hauliers engaged in the road value deserunt chain. Exxaro’s Grootegeluk and occaecat cupidatat proident,asunt in Lorem ipsumComplex dolor sit business amet, consectetur logistics value chain non to implement vehicle North Block units are culpa qui officia deserunt mollit anim id adipisicing elit, sedsites do to eiusmod management system that preserves road the first company receivetempor RTMS est laborum. Lorem ipsumroad dolor sit amet, ut labore dolore magnaby aliqua. infrastructure, improves safety and incididunt accreditation, whichet is supported The consectetur adipisicing elit, of sedthe do eiusmod enim ad minimand veniam, Chamber of Mines Eskom.quis nostrud increases the productivity logistics Ut

JOY GLOBAL One Joy Global – It Starts Here It starts with an unparalleled commitment to mining. Our business is focused solely on serving surface and underground mining operations with superior equipment and direct service that achieves the lowest cost per unit of production over the life cycle of the equipment.

Our reach is global, with facilities and service centers that span six continents and more than twenty countries. But our focus remains local.

Our people and services are close to the mines to provide better decisions and solutions.

Above ground and below, we strive to create a more seamless experience that raises the bar for the entire industry.

And it starts with Joy Global. www.joyglobal.com Joy Global (Africa) 1 Steele Street, Steeledale, South Africa Tel: +27-(11)-406-6100 | E. info@joyglobal.com

OCTOBER 2012| |1192 Be africa

EXXARO Exxaro RESOURCES Resources When Exxaro was formed Resources in Exxaro 2006, it had a large coalfeature text: Lorem ipsum dolor amet, consectetur portfolio and was the sit world’s adipisicing elit,producer sed do eiusmod tempor third largest of incididunt ut labore et dolore magna aliqua. heavy minerals, principally Ut enimslag ad for minim veniam, quis nostrud chloride the pigment exercitation market. Butullamco rather laboris than nisi ut aliquip ex ea commodo consequat. allow the shape of theDuis aute irure dolor in business reprehenderit existing to leadin itsvoluptate velit esse cillum dolore eu fugiat development, it has taken nulla pariatur.

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company concluded that wouldutfall into sed do eiusmodcommodities tempor incididunt labore three tiers. would et dolore magna aliqua.

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10 years.Excepteur Tier two sint occaecat cupidatat non priority proident,10 sunt minerals—a to in Lorem ipsum15dolor sitdown amet,the consectetur years line—are adipisicing elit, sed do eiusmod those for which industrial demandtempor (from incididunt ut labore doloreindustries, magna aliqua. the aerospace and et energy for Ut enim ad veniam, quisincluding nostrud example) is minim increasing rapidly, exercitation nisiearths. ut aliquip titanium andullamco some oflaboris the rare But

SASFIN SECURITIES (PTY) LTD Sasfin Securities (Pty) Ltd has proudly been associated with Exxaro since its origin, and our relationship remains strong. One of the examples of the bespoke services that Sasfin is providing to Exxaro is the on-market trading of the company’s share incentive schemes.

Sasfin Securities has been a member firm of the JSE for over 100 years. We are primarily a private client portfolio manager and stockbroker that specialises in various risk profiles, with branches across South Africa.

Our investment management philosophy is best described as an adaptive, multi-faceted investment style that aims to remain most appropriate throughout the constantly changing market environment. This adaptive style aims to ensure a sustainable, consistent, compounding return.

Sasfin Securities is particularly cognisant of the need to minimalize financial risk, price volatility and the depreciation of asset values

in real terms. As part of our mission to support our clients in global wealth creation, we are able to seamlessly invest in a range of carefully selected, globally listed stocks and securities.

When conducting our research, we have both internal and external highly acclaimed investment analysts and strategists within our team.

Our clients are of a high net worth orientation and we offer them bespoke tailor-made investment opportunities. The primary objective is to abide by the investment mandate of the portfolio, while taking the mandated risk into consideration.

Our portfolio managers have an average experience of 25 years in the industry.

We are passionate about creating, enhancing and preserving wealth for our clients through innovative, personalised solutions.

E. info@sasin.com www.sasfinsecurities.co.za

JANUARY 2012| |1212 Be africa

14.6 Million Tonnes of coal to be supplied annually to Eskom’s new Medupi power plant

Exxaro is already looking beyond that to its third tier—materials the world will require in 30 years’ time to enable industry to address economic megatrends like climate change and population growth.

In June 2012 Exxaro consolidated its mineral sands operations with the finalisation of a transaction with Tronox Incorporated, in which Exxaro exchanged its mineral sands operations for a shareholding in the newly formed Tronox Limited—the world’s largest fully integrated producer of titanium ore and titanium dioxide. The long-term partnership is expected to enhance production capabilities and implement technical efficiencies in the integrated process, creating a truly global, vertically integrated titanium dioxide pigment producer, the company said. This is expected to result in a strong platform for future growth, uniquely positioned to capitalise on favourable market dynamics and to serve the needs of the ever-growing pigment and zircon customer base across the globe.

Exxaro and its board of directors are committed to ensuring ethical and sustainable business practices—a commitment that has been rewarded again this year with continued inclusion on the 2012 JSE Social Responsibility (SRI) Index, announced at

122 | Be africa

Exxaro Resources

The Grootegeluk mine

the end of November. The group met the Index’ best practice criteria for environmental policy, environmental management systems and environmental reporting, as well as the best practice criteria set for training and development, employee relations, equal opportunities, black economic empowerment, health and safety, HIV/Aids, community relations, stakeholder engagement, board practice, indirect impacts, business value and risk management, broader economic issues, governance and related sustainability reporting and code of ethics/conduct.

“Our aim is to integrate business, community and environmental needs and obligations to enable Exxaro to achieve its

founding goal of being a company that makes a positive social and economic contribution to South Africa,” said Nkosi. “The prosperity of South Africa is inseparably linked to the sustainability of our world-class and dynamic mining sector. It is our belief that if we implement our sustainability model successfully, and manage our sustainability issues correctly, we will automatically create more employment for all South Africans and uplift disadvantaged South Africans.”

For more information about Exxaro Resources visit: www.exxaro.com

Be africa | 123

Keeping it simple CEO Bruce Griffin talks about the potential of a highly expandable, high-grade mineral sands project in Madagascar

written by: Martin Ashcroft research by: Robert Hodgson

124 | be africa

World Titanium Resources

be africa | 125

WTR expects to move eight million tons of sand per annum

World Titanium Resources

W

orld Titanium Resources a multi-decade development even at large is developing the scale production rate.”

Toliara Sands Project in The Ranobe Project spent six years as a southwest Madagascar. joint venture with Exxaro Resources, during Initial exploration which $17 million was spent on a completed work was carried out in 1999, leading to the pre-feasibility study and most of a bankable discovery of mineral sands at Ranobe and feasibility study. Exxaro terminated the JV further north at Ankililoaka, Basibasy and in July 2009, due to a number of factors Morombe. Further drilling was undertaken including the global financial crisis, the in the next few years and it became clear March 2009 political crisis in Madagascar that the area had the potential to become a and concerns about technical problems with their South African smelter that had significant mineral sands development.

The first phase of development is the Ranobe been envisaged as the destination for the Mine, which is projected project’s minerals.

Following Exxaro’s exit, to produce 407,000tpa of WTR re-examined the ilmenite and 44,000tpa of zircon rich concentrate over business case and opted to an initial 21 year mine life, build a low cost, low risk but the 959 million tonne mine at Ranobe to supply resource at 6.1 percent THM ilmenite, zircon and rutile (total heavy minerals) has the directly to world markets.

Potential mine life at potential to sustain a life of The feasibility study had initial production rate over 100 years at the planned highlighted a high grade initial production rate. portion of the deposit, so it “We have 100 years of was decided to focus initial resource and that’s where the potential value development on this area. is!” says CEO Bruce Griffin. “That’s one of “The primary driver of low cost is high the things I like about this deposit! What it grade,” explains Griffin, “because it means means is that once we have delivered the first you move a lot less material around for a phase, we will be in a position to add real ton of product. We only envisage doing eight additional value by implementing relatively million tons a year of mining, whereas there low cost expansions without rebuilding the are comparable projects that will do over 50 infrastructure. We can do this and maintain million tons a year of sand movement. Our a long mine life. If you have a one hundred low capital and operating cost is basically year resource and you triple production, down to grade.” you still have a mine with a 30 year life! It’s The whole development concept is based not like you’re taking a 20 year mine and on keeping it simple. “Our separation turning it into a six year mine. We still have processes are very basic, using gravity and

100

Years

be africa | 127

epms

engineering & project management services

epms

engineering & project management services

Developing Partnerships.

Engineering Solutions.

Founded in 2008, EPMS has developed an enviable reputation for providing innovative, high-quality, cost-effective engineering solutions.

From scoping study through to commissioning and handover, we have the experience and resources to assist with development and delivery.

Visit epmserv.com.au to find out what we can add to your next project.

BMT JFA port and maritime development specialists deliver niche engineering services: • • • • •

Port planning and engineering Project management Specialist dredging services Coastal modelling Maritime and coastal structures.

BMT JFA is proud to provide services for World Titanium Resources.

Discover more at www.bmtjfa.com.au

World Titanium Resources magnetic separation with a EPMS Engineering & Project little drying,” he explains.

Management Services The mine will produce EPMS is a progressive project development consultancy sulphate ilmenite, the most servicing the resource sector. With offices in Australia and common form of titanium the UK, EPMS is well placed to service clients in both the dioxide, chloride ilmenite northern and southern hemispheres. and a zircon rich concentrate Since 2008, EPMS’ expertise has been called upon for a diverse range of projects around the globe including mineral that also contains rutile. sands in Australia, Madagascar and Ukraine, iron sands “Titanium dioxide (ilmenite in Indonesia and the Philippines, magnetite in Uruguay, and rutile) is used in pigment Australia and Sierra Leone, and gold in Armenia. production, as feedstock for EPMS’ services include project evaluation, test work titanium metal and welding management, feasibility studies, detailed engineering and rods in the case of rutile,” design, and project and construction management. says Griffin. “Zircon is used www.epmserv.com.au as an opacifier in ceramics and it also has foundry uses as a refractory material and in speciality chemical applications.”

The decision to sell a zircon rich concentrate fits the philosophy of keeping things as simple as possible. Some operations separate the zircon and rutile and sell them as separate finished products, says Griffin, but WTR has chosen not to do that because the separation adds operational complexity. The concentrate sells for around a 20 percent discount to final product value, so it makes sense to sell the zircon and rutile as a concentrate as it allows WTR to minimise the complexity of the project while capturing most of the value.

Employee recruitment for drilling and sampling

“The Malagasy people are very trainable. You can equip them quite quickly with the skills they need to become an effective part of the workforce” be africa | 129

IMLS is committed to supplying professional, practical and consultative services and solutions to mining, industrial, construction and commercial related industries, to the benefit of all its stakeholders. www.imls.co.za

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

World Titanium Resources New projects in places like Madagascar can often International Mining and Logistical Services (IMLS) experience difficulties in was founded in 1999, with a commitment to supplying the recruitment of skilled professional and practical services mainly to clients in workers, or in finding locally southern Africa. The IMLS vision is to become the preferred qualified suppliers to satisfy supplier to a number of key accounts through embracing a their service needs. Griffin number of core values, key of which is to recruit and retain the best skilled personnel. believes that WTR will The Group supplies, coordinates and supports a variety of benefit immensely from the projects from a concept stage through to a fully operational major projects being carried entity. Therefore IMLS is well placed to provide services out by Ambatovy and Rio to World Titanium Resources during the evaluation of its Tinto, as they are creating an heavy mineral project in Madagascar. on-going helpful legacy. www.imls.co.za WTR will no doubt need to use some expat workers in the early stages, but the plan is for their specific industry experience to be put to use in training local workers. “Both Ambatovy and Rio Tinto have found that the Malagasy people are very trainable,” says Griffin.

“You can equip them quite quickly with the skills they need to become an effective part of the workforce.”

An interesting example is the contractor that operates the haul road for the Rio Tinto QMM project. “They have no expats left in their operational workforce after less than five years’ operation,” says Griffin. “The operating crew are all locals. They brought in experienced drivers from South Africa for

IMLS

929 million Tonnes of resource at Ranobe Mine Sample prep for Ranobe drilling

be africa | 131

Drilling at Ranobe

A refurbished

“Ninety percent of what you mine is just sand. You pick it up, you take the heavy mineral out and you put the sand back where you found it” three months to drive with a Malagasy in each truck. For the first six weeks the expat did the driving, then for the second six weeks the local was driving and by then they were basically trained up.”

Doing business in Madagascar has changed in other ways, too. “There are contractors and service providers established in Madagascar now that weren’t there five years ago. If you need someone to service a seal on a pump, or

132 | be africa

supply a piece of heavy mobile equipment, it’s more likely now that you can find someone a day away in Madagascar rather than having to bring them in from South Africa or somewhere else. It’s easier for us to work in Madagascar now than it would have been before those projects began.”

As Griffin points out, there are significant differences of scale between Ranobe and these other projects. “We expect our construction

World Titanium Resources

village water well with foot pump

workforce to be in the hundreds, not the thousands,” he says, “and our operational staff, including contractors, is probably going to involve only 300-350 people. It is important we maximise employment in the communities in which we operate.”

From an environmental and social point of view, WTR has to deal with the same issues as any other mine, but the differences in scale are evident here, too. The company recently hired a corporate social responsibility manager who previously worked for Ambatovy. “You can’t do a mining project without making an impact,” says Griffin, “so it’s about how you manage that. Ambatovy had 200,000 people affected by their project, whereas our directly affected numbers are only in the hundreds.

“The other fortunate thing about mineral

Sample prep for Ranobe drilling

sands mining,” he adds, “is that even with our high grade mineral resource, 90 percent of what you mine is just sand. You pick it up, you take the heavy mineral out and you put the sand back where you found it. You rehabilitate as you go, so you don’t end up with a huge hole in the ground at the end of the mine life.”

It ’s no sur prise that the local communities are supportive of the project because they can see it as an opportunity for economic development, but one of WTR’s key focuses is making sure that it maintains their support.

For more information about World Titanium Resources visit: www.worldtitaniumresources.com

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The vision to succeed

134 | Be africa

VIMA Group

Madagascar is a land of increasing opportunity. Chairman Zouzar Bouka explains his vision of a new Madagascar and how VIMA Group is helping make this a reality

written by: Will Daynes research by: Robert Hodgson

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M

uch like the endemic wildlife that has adapted over centuries to survive on the isolated island, Madagascar as a nation continues to evolve rapidly.

Through the development of strong economic ties with the likes of the United States, Japan, Germany and its main trading partner, France, the country’s primary sources of growth today originate from tourism, agriculture and the extractive industries.

With its wealth of untapped mining resources Madagascar’s economy is predicted to expand in the years ahead. In addition to the big mining projects underway in the south and east of the country there are also a vast number of other concessions that need developing.

This understandably creates a ripple effect across all sectors as there remains a need for investment in infrastructure, logistics, transportation, lodging and soft skills.

Founded in 2000, VIMA Group was born out of the vision of chairman Zouzar Bouka. Part of this vision was to create an organisation that could play a leading role in the development of a new Madagascar.

“In this new Madagascar,” Bouka explains, “large scale private sector projects will be the engine for growth throughout the country.”

Since the group’s first subsidiary, VIMA REAL ESTATE was created in 2000, it has been working to meet the demands of the market in terms of real estate development and construction. In the years since VIMA Group has extended its reach to procurement and import services with the creation of VIMA SERV’, the wood sector with VIMA WOOD INDUSTRY and the construction business

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VIMA Group has extended its reach to the wood sector with the creation of VIMA WOOD INDUSTRY

VIMA Group

VIMA Group

VIMA delivers high quality solutions

with VIMA CONSTRUCTION. organisations such as the World Trade Center “The features of a new Madagascar as we Association, Century 21 and REGUS provide see it,” Bouka continues, “include a wider it with access to a multitude of business opening to the world, a country in line with opportunities. Then there is its development international norms and standards and one policy. Thanks to this policy its franchisee that attracts long-term foreign investors who licenses allow it to extend its activities to a are able to put their trust in the expertise and regional and international level. skills of Malagasy companies.”

“Since its birth,” Bouka enthuses, “VIMA In order to achieve this, VIMA Group Group has strived for perfection in every aspect of its business. Specifically, it has three main strategies. has established a set of core The first of these is having traits that guide the company a strong marketing policy on a daily basis. These that maximises its visibility include adaptability, having at a local, regional and international level. Second is a customer centred approach the maintaining of a strong to business, maintaining The year VIMA Group was founded international network. VIMA a high level of customer Group’s partnerships with service, having high speeds

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VIMA companies undertoo

of delivery and ensuring it always delivers its customers with high quality solutions.�

These core traits have helped contribute to various success stories over the last 12 years, while VIMA Group’s ability to offer a one-stopshop for major organisations looking to enter Madagascar has seen it build up an impressive portfolio of case study examples of its work.

One such example occurred when the Embassy of South Africa approached the group to assist them in finding a new embassy building.

Taking the lead in this project was VIMA REAL ESTATE, which worked closely with embassy staff in order to create a comfortable work environment conducive to the needs of the diplomatic mission from South Africa.

Location was an integral part of this project and so VIMA REAL ESTATE sought out,

VIMA Group

ok the real estate services, procurement and construction for South Africa’s new Embassy building in Madagascar

found, and bought a plot of land situated on a main thoroughfare with easy access to both the downtown of the city and the diplomatic neighbourhood.

VIMA REAL ESTATE subsequently decided that it would be best if the Embassy of South Africa chose an architect of their liking, which would be paid for by VIMA Group, to design the actual embassy building, accommodating for the needs of the South African embassy staff.

VIMA CONSTRUCTION built the embassy, while all of the procurement for the construction materials, interior design, and furniture was bought by VIMA SERV’ while VIMA REAL ESTATE worked in conjunction with a bank to calculate a fair market price for the rent. Currently, VIMA REAL ESTATE manages the rent, maintenance, and customer relationship with the embassy.

The year 2012 has seen VIMA Group

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“VIMA Group has also gone about creating a new subsidiary, that being MADAGASCAR ENERGY”

VIMA CONSTRUCTION works alongside VIMA REAL ESTATE

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VIMA Group continue to expand with it making two new, strategic acquisitions on the west coast of the country. The first of these is a fish processing facility located in the city of Maintirano. The group’s aim is to rehabilitate the existing site with offices, warehouses and laboratories in order to support mining, oil and gas companies located in the area.

The second property, currently under the process of acquisition, lies within the economic hub that is Majunga. This acquisition of 32 hectares of land, with approximately 60,000 square metres of built-on surface, will see the group develop the site to support the growing economy of the region by rehabilitating the buildings for office use by companies involved in mining, oil and gas and high intensive labour. This property will be connected by fiber optic network.

Elsewhere within the group, VIMA CONSTRUCTION and VIMA REAL ESTATE are in the piloting stage of the project “Casa Ivandry” or CI for short. CI is a luxury apartment complex located in a high end neighbourhood in the capital of Antananarivo and is designed for families, couples, or single occupants. Upon completion, CI will be equipped with a swimming pool, movie theatre, tennis courts, gym and restaurant.

This year VIMA Group has also gone about creating a new subsidiary, that being

VIMA maintains a high level of customer service

MADAGASCAR ENERGY. This subsidiary is responsible for producing and supplying electrical energy with its operations split into two divisions, one dealing with thermal power plants working with heavy-oil and the other with renewable energies. In the near future, MADAGASCAR ENERGY will supply 1.4 MW and 2 MW to private companies in the country. MADAGASCAR ENERGY is set to become a major player in the renewable energy sector.

A fundamental part of VIMA Group’s mission is to support the community in Madagascar in various ways. It achieves this through its sponsorship and association with various sporting events and budding stars, including the International Marathon of Tana and the young tennis prodigy Randy

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VIMA Group has evolved to meet the needs of the market

VIMA Group Randrianasoloson, its sponsorship of cultural events and groups, such at the Rencontres du Film Court film festival and the Madajazzcar music festival, and its charity work with the likes of Akamasoa and the Starkey Foundation.

“Since VIMA Group’s creation,” Bouka says, “we have evolved accordingly to meet the needs of the market by moving into different sectors, working with a wide variety of partners and taking on ever-more ambitious projects.

Having consolidated our position as a leader in business, we fully intend to continue expanding and building our network of partners.”

In order to provide even greater value to its clients, VIMA Group intends to focus on several important aspects of its business, most notably its ability to integrate its operations in order to provide quick and efficient solutions, and its ability to fill the gaps that exist with the economy that are integral to the overall development of the country.

“With its diversified economy and natural resources,” Bouka concludes, “Madagascar is an attention-grabbing country for outside companies and is well placed to attract these investors. Indeed, the mining sector will see a large amount of growth and will be the significant sector of the economy in the coming years. In addition, the agriculture, fishing, tourism and construction sectors will continue to see growth and we intend to be there every step of the way to support this in any way we can.”

For more information about VIMA Group visit: www.visionmadagascar.com

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Moving with

Managing director, Paul Saker, discusses how MineWar enterprise into a preferred supplier in its field of exper how it plans to help influence South Africa’s mining in

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h the times

re has grown from a small family rtise in less than two decades and ndustry in the years to come

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MineWare software allows the user to track labour heirarchy

MineWare Consulting

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s the mining sector in South customers’ needs. This is one of the major Africa has evolved, so too have reasons why clients come back to us time and the mechanisms, tools, items time again. They know that when they want of equipment and software something changed or modified they need needed to service what is a only ask and we will make it happen.” dynamic, complex and challenging industry.

Another fact that Saker is equally proud It was in the 1980s that MineWare’s managing to highlight is that in 17 years of doing director, Paul Saker, first identified the fact business, MineWare has not once lost any of that this rapidly growing industry required the priceless skills that its employees have access to much more detailed financial brought to the table. “My mission, first and analysis when it comes to fixed and variable foremost, is to ensure that everyone is happy here in what they are doing and that cost modelling.

“I remember,” he explains, “one person they are rewarded appropriately for their approaching me back then and saying how contribution to the company. Time after one particular problem in time I have seen instances mining at the time was that where absolutely critical many of the key decision people have left positions at our competitors resulting makers had no real idea of what was actually occurring in a collapse of unsupported underground in their mines software. Thus, what we The year that MineWare on a day-to-day basis, and pride ourselves on is that was founded that no one was actually those same people who addressing this issue at the began working on our time. What we have done since is really critical systems 17 years ago are still here concentrate on aiding the short term control today and are now sharing their expertise of our clients mining operations.” with the next generation of employees.”

One of the things MineWare has been MineWare not only develops customised software, but adapts and redesigns able to do by retaining and developing its a client’s current products to ensure in-house expertise and knowledge is work seamless integration of the system and towards making continual improvements easy understanding for operators. It is this to not only its own operations, but that of flexibility that has brought the company its clients. This is the motivation that gave success in South Africa’s mining industry. rise to the recent creation of its electronic “We most certainly are not the type of business management system (BMS) for its business that sells off-the-shelf systems,” internal process.

Saker continues. “When we take a product or “Various pressures in the mining industry system into a clients’ mine we go in and bend, across the globe,” Saker says, “coupled with modify and customise it to suit that individual a more demanding workforce, mean that

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decision makers now have to have more and more information available at their fingertips.

This is especially true when it comes to underground operations where there are often thousands of people going underground every day and where it would literally take months for someone to go around surveying each working area.”

A separate trend that the company has increasingly seen as driving its business forward is the growing importance of health and safety, something that is particularly true of the mining industry in South Africa.

“In a good number of the meetings that I attend these days,” Saker states, “the primary concern raised is a clients’ ability to identify unsafe working environments and, having done so, make all of the mines’ users aware of these conditions via the use of emails, SMS messages and so forth. This is something we are able to do programmatically and what that ultimate means is that we are providing to our clients a system that drives their employees, not the other way around.”

Other developments over the last 12-to-18 months in South Africa, particularly the wellpublicised illegal strikes that have taken place at various mines across the country, have only served to heighten awareness of the fact that mine owners need, now more than ever, to be

able to control the whole production process much more rigidly.

“The days of making huge profits whether you do things in the right or wrong way are long gone,” Saker says, “and the margins of error are so much smaller now than they were before. It is a simple fact that in today’s market you have to work a hell of a lot harder and smarter, using all of the appropriate tools that you have available. From our perspective, what

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MineWare Consulting

MineWare software tracks of the location and number of cars

this means is that we are seeing a very strong push from decision makers to start quantifying, comparing and auditing all of the information and data that is coming from the mines.”

As a way of properly preparing itself for what the future of the mining sector in South Africa holds, MineWare has made it a priority to ensure that all of its systems are SOX compatible and that all areas of said system are fully auditable.

MineWare will also be looking to de-humanise the capture of information where possible, specifically in areas where the use of telemetry is key and in the trackless operations that already exist in the country.

“What we are working to develop,” Saker concludes, “are solutions that will mean that people won’t have to come out of the mine to actually log information. We are currently

building partnerships with businesses that are developing rugged tablet computers that will be designed to handle the harsh conditions that underground mines possess. The times are continuing to change and what we want to do is usher in a time where all necessary admin can be done underground. This, we hope, will lead to a scenario where the person responsible for this admin is able to finish his shift and when he sees the light at the top of the shaft, knows that he is now heading home to his family. That is the future we want to help create.”

For more information about MineWare visit: www.mineware.co.za

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Inspiring national prid By embracing change and innovation, PetroSA is opening up new horizons for South Africa’s energy sector

written by: Will Daynes research by: Robert Hodgson

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PetroSA

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PetroSA

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s the leading economic power in Africa, it’s no surprise that South Africa is a key player in the African oil industry.

Liquid fuels are an important component of its energy sector, with the 2012 BP Statistical Energy Survey revealing that, in 2011, South Africa consumed an average of 547,250 barrels of oil per day.

The history of the oil industry in South Africa can be traced back to 1884, when the first oil company was established in Cape Town with the purpose of importing refined products.

In the years since, the industry has evolved greatly to the point where today the country is responsible for processing approximately 20 million tonnes of crude oil per annum.

Formed in 2002, upon the merger of Soekor E and P Limited, Mossgas Limited and parts of the Strategic Fuel Fund, the Petroleum Oil and Gas Corporation of South Africa (PetroSA) is the national oil company. A subsidiary of the state-owned Central Energy Fund, the company holds various assets that span the petroleum value chain.

In addition to operating the FA-EM, South Coast gas fields, and the Oribi and Oryx oil fields, PetroSA is also responsible for the exploration and production of oil and natural gas from the ORCA oil rig and the production of synthetic fuels from offshore gas at what is one of the world’s largest gas-to-liquid (GTL) refineries in Mossel Bay. PetroSA’s GTL refinery produces ultraclean, low-sulphur, low-aromatic synthetic fuels and other high-value products that are converted from natural methane-rich gas.

This gas then condensates via the use of the

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PETRO SA PetroSA GIJIMA Gijima is a proudly empowered South African Information Technology (IT) company listed on the JSE. It has gained recognition as the complete IT partner to a considerable client base of large technology users in both the public and private sectors. As one of the leading IT companies in southern Africa its intellectual capacity, business model and extended geographic footprint is unparalleled in the local market and provides clients with sophisticated and diverse service delivery options in the infrastructure, solutions, system integration and networking arenas.

The ethos by which it operates is to constantly seek to set the pace when it comes to industry thought leadership. Gijima’s eagerness to learn and commitment to make a difference allows its clients to unequivocally regard them as their partner of choice. Their innovative and entrepreneurial abilities enable them to consistently develop solutions to business problems – shifting boundaries that have established them as a leader in their chosen markets.

At the recent Microsoft Partner Network awards, Gijima walked away with no fewer than six top achiever awards in separate categories.

These awards are a testament to the skill and vision of their people in customising various vendor technologies to the benefit of their clients.

These awards coupled with the release of mobileIT, Gijima’s homegrown integrated all-in-one platform for the development, implementation and full life cycle management of mobile applications, mobile users and mobile devices, positions them as the preferred partner to their clients.

Gijima strives to be a magnet for talent, enthusiastic, loyal and energised staff; always developing, always growing, reaping the rewards

of the company they helped create. Gijima strives to deliver a blend of sophistication, passion and a graciousness of spirit for one another, and for PetroSA in support of their vision to become a fully integrated, commercially competitive national oil company, supplying at least 25 percent of South Africa’s liquid fuel needs by 2020 - a legacy that they can both be proud of. info@gijima.com www.gijima.com

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Steeltest was formed in 1989 and is involved exclusively in hi tech non-destructive testing.

The company is based in South Africa, but operates throughout Africa, The Middle East and South-East Asia.With the introduction of innovative technology and the continuous improvement of service delivery and our policy on training our aim is to become the premier supplier of specialised non- destructive testing globally.

TUBE INSPECTION of Ferrous and Non-Ferrous tubing in heat exchangers using the following methods: Eddy Current, Remote Field, IRIS, Laser Internal inspection & Visual.

EMAT FOR PIPELINES A very reliable method for: 100% rapid scanning of pipelines (up to 1km / day). Highly sensitive system particularly suited for evaluating corrosion under supports.

Scans in both longitudinal & circumferential directions.

SPECIALIZED REQUIERMENTS FOR ECONOMIZERS & BOILERS using IRIS to produce visual computerized 3D models of your unit, for more informative representation of inspection data.

Can be cross cut in all axes, printed & with data filters customizable to clients requierments.

GUIDED WAVE PIPE SCREENING also known as Long Range Ultrasonic Testing. The Guided Wave technology screens 100% of the volume of the piping inspected for metal loss features such as corrosion and erosion at distances up to 100m in either direction from a single location. In the case of insulated lines only 300mm of insulation needs to be removed to inspect long lengths of pipe. Can be used on pipe racks, insulated pipe, road crossings, submerged pipes, buried pipes & restricted access pipelines.

TUBE MICRO BLASTING This is a particularly effective means of cleaning tubes and is used especially in the case of IRIS and laser inspections where the tubes need to be cleaned down to bare metal.

EMAT (Electomagnetic Acoustic Testing) For Boiler Walls provides rapid screening of ferrous tubing (up to 1km / 12 hour shift.) The temateÂŽ TG-IS(B) is designed for detecting wall loss, hydrogen damage and caustic gauging in boiler tubes.

Ultrasonic EMAT technique provides accurate thickness readings with minimum preparation of tube surface.

HANDY SCAN By combining state of the art laser scanner technology with existing NDT techniques it is now possible to provide accurate and detailed 3D images of equipment using advanced 3D modelling software.

Features such as pitting and corrosion can be accurately mapped, analysed and saved for comparison during follow-up inspections. Applications include wear of moving components, tip errosion of turbine blades, external corrosion on pipelines etc.

STEELTEST INSPECTION SPECIALISTS – OUR PREFORMANCE IS YOUR STRENGTH Phone: +27 16 422 4930 Fax: +27 16 422 4933 Web: www.steeltest.co.za Email: Steeltest@cyberserv.co.za

PETRO SA PetroSA

STEEL TEST

TUBE INSPECTION

PIPELINE INSPECTION

TANK INSPECTION

3D CORROSION

TUBE CLEANING

POSITIVE MATERIAL IDENTIFICATION

Based in South Africa but operating throughout Africa, the Middle East and South-East Asia, Steel Test provides its customers with global expertise combined with localised personal service.

Steel Test has a dedicated professional staff of 74 people committed to satisfying the demanding requirements of its diverse client base. Our clients are largely in oil, gas and power generation but we also carry out inspections in the sugar, pulp and paper, chemical and mining industries. With an initial emphasis on tube inspection, more recently we have extended our services to both tanks and pipelines.

Using a combination of cutting edge technology, Steel Test offers a number of inspection techniques, including pipe, tube and tank inspections, shut down based inspections, in-service evaluation, acid management and condition assessment.

Steel Test prides itself on its technical capabilities, and aspires to become the preferred specialised global non-destructive testing company. www.steeltest.co.za

NOVEMBER 2012| 159 |2 Be africa

OTI EasyFuel Homebase Solution The OTI EasyFuel Homebase Solution is a complete automated refuelling system that controls and manages the dispensing of fuel at homebase sites. Technology and systems that have been available to fully fledged service stations and fuelling points is now available to homebase depots - along with our commitment to ensure you derive the full benefits and savings the solution has to offer. Reduce operating costs, fraud and theft with this affordable offer from OTI Africa !

OTI Africa is pleased to announce that our complete EasyFuel Homebase Solution has been commissioned for PetroSA at their strategic refinery in Mossel Bay and OTI Africa is providing a wide range of monitoring, reporting and account management services to PetroSA. www.otiglobal.com

Charlotte Hambly-Nuss or Mark Levin can be contacted for more information on +27 21 526 9100 or info@oti-africa.co.za

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

Seen www.bus-ex.com

PetroSA

heavily in new processes refinery’s unique GTL Fischer TrÜpsch technology. and technologies, signing PetroSA is recognised in a sponsorship agreement the industry as a pioneer when in 2010 with the University it comes to petrochemical of the Western Cape research and development.

(UWC). This agreement With the support of external led to the establishment Oil consumed by South partners from around the of the PetroSA Synthetic Africa per day in 2011 world, its specialists have Fuels Research Centre at built a reputation based on the UWC. It also resulted their innovative thinking, technical expertise in the company relocating its conversion and proven ability to execute development of olefins to distillates (COD) pilot plant projects. Upon its opening in 1992, the Mossel from Mossel Bay to the university where it Bay refinery was the first in the world to use stands today in a custom-built laboratory.

COD technology is beginning to attract GTL technology on a commercial scale and since then, only seven other GTL refineries significant attention within the industry for its have been commissioned in the world. ability to produce some of the cleanest fuels The company continues to invest available, using an environmentally friendly

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process. As the profile of this technology rises, so too does that of PetroSA by being the operator of the only COD plant in the world.

The actual COD process involves synthesising petrol and diesel by adding short-chain, unsaturated carbons in order to form longer chain hydrocarbons in the petrol and diesel boiling range. This is carried out at relatively high temperatures and pressures over a catalyst.

Today, COD is recognised as being a rapidly emerging fuel technology of the future. This comes at a time during which rising oil prices are intensifying the demand for cheaper raw materials and more efficient, cost-effective processes. At the same time, global trends show an accelerating demand for high quality diesel and diesel produced using COD technology is regarded as being of exceptional quality.

Among its many important strengths, COD produces relatively pure fuels that are low in sulphur and aromatics, while at the same time meeting the most stringent of international specifications. These fuels possess much better exhaust emission properties than conventionally produced equivalents and this makes them particularly suitable as blend materials for conventional and bioderived fuels. Furthermore, COD fuels have excellent cold flow properties, making them

highly effective when used in countries that experience cold winters.

With the future in mind, PetroSA has reached an agreement with the UWC that will allow it to achieve two key objectives.

The first is to further develop COD and its associated technologies, while the second is to help develop South Africa’s human capital.

Among the core strategic functions of the company are to make it possible for

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PetroSA

the government of South to achieve this. These include Africa to improve the supply sustaining the Mossel Bay of fuel, oil and gas to the GTL refinery as a profitable country, mitigate the impact operation and using it as of oil price variations, drive a platform to sustain the PetroSA established transformation initiatives, company. In addition, the manage the country’s company will continue to ensure all of its operations and contingency crude reserves and strategic petroleum assets, and access activities are carried out in line with the highest upstream petroleum assets. health, safety, quality and environmental In addition to these functions, the company standards as it grows its business into a also boasts a strategic objective it calls Our significant industry player that can guarantee Vision 2020. The ultimate aim of this is to the security of South Africa’s energy supply. become a fully integrated, commercially competitive national oil company, supplying For more information about at least 25 percent of South Africa’s liquid PetroSA visit: fuel needs by 2020. www.petrosa.co.za There are several ways that PetroSA plans

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globalam

Specialists in non-destructive the company is beginning to sector and looking for gro

written by: research by

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AMIIS

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e testing and heat treatment, diversify into the oil and gas owth outside South Africa

: Alan Swaby y: Will Kirby

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W

hat would you do if you won the lottery?

In the case of Nelson Mahadeo, he went into business for himself. A win of a couple of million rand in 2003 enabled him to say au revoir to his employers and set up Associated Marine & Industrial Inspection Services. By hiring a good team, he was able to get the business up and running in a short time.

AMIIS provides non-destructive testing (NDT) and heat treatment services – the two going hand in hand where any critical welding is being carried out. As the name implies, the original intention was to concentrate on the marine industry, in the company’s home city of Durban. The business has its main office in the harbour and a dry dock operates from there for ship repairs. Since then, though, the company has widened its scope of interests and diversified into the other main business activities in Kwazulu Natal – namely paper & pulp and petrochemical refining. It’s now a member of SAOGA and is gearing up for a greater involvement in the soon to be developed Mozambique and West African oil & gas fields.

“The marine industry is still important for us,” says Raj Kistiah, national manager of the non-destructive testing wing of the business, “but the reality is that very few new boats are ever built in South Africa, which means that the marine business is all about repair work. To get a more stable business base, AMIIS decided to develop interests in other areas of industry.”

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AMIIS

On the face of it, heat treatment and NDT seem poles apart but traditionally they are often found together. They are both concerned with ensuring the integrity of joints and materials and the notion of AMIIS being a one stop shop is at the heart of its marketing approach.

The company is a specialist in all conventional and high tech forms of NDT such as radiography, magnetic particle

inspection, penetrant testing, gamma rays and ultrasound, from which it selects the right procedure to satisfy the codes prescribed by clients. “On the heat treatment side,” says Kistiah, “we feel there is no single company that can outperform us in terms of speed and capacity. With all providers of these services essentially singing to the same hymn sheet, the points of difference centre not around the work itself but on how

“On the heat treatment side, we feel there is no single company that can outperform us in terms of speed and capacity” 168 | be africa

AMIIS

AMIIS Staff

quickly and reliably they can contractor selection, and for be performed.”

AMIIS there is no such thing AMIIS, as with other as a job too large. With its heat treatment companies, comprehensive resources it employs two distinctly can respond to a job within AMIIS business founded different approaches – using a couple of days where some electrical induction or gas of its competitors might take as the heat source. The gas a couple of weeks to draw division provides high velocity gas units for together the equipment they need. drying and curing refractories, and postThe two sides of the business are weld heat treatment of large fabrications distinctly different in their demands, by direct firing, with satisfied clients however. The heat treatment is capital including Sasol, Alstom, Chevron, Engen, intensive but has less need for highly skilled Shell and BP, Eskom Power Stations, Exxaro operatives. NDT, on the other hand, needs Resources and Elgin Engineering. less in the way of capital but requires huge What makes the difference is the number investments in labour. of heating modules at the company’s Apart from the usual cry amongst South disposal. Speed and price are at the heart of African businesses that the demand for

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UT Technician

AMIIS

“The company has diversified into paper & pulp and petro-chemical refining” skilled labour outstrips supply, the biggest problem that AMIIS faces is the extent of competition in the NDT arena, however, where the market in South Africa is saturated. “So we are taking steps to get more business from our neighbouring countries where there are fewer indigenous contractors,” explains Kistiah.

As well as its marine activities in Kwazulu Natal at Durban and nearby Richards Bay, AMIIS already has a chain of offices around South Africa linked to key clients in the petrochemical industry at Sasolburg and power generation plants located in South Africa’s coal belt to the east of Johannesburg.

Serving existing clients in Mozambique but in particular helping to develop the oil and gas business there, AMIIS has an office in Maputo. In addition, AMIIS is easing itself into the West African oil & gas fields where the demand is high for inspection and testing services that are currently being met by US and British contractors.

For more information about AMIIS contact: amiis@amiis.co.za

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Thesky’s thelimit Chief executive officer Tony Sofianos explains how, with the oil and gas industry stretching across the globe more than ever before, companies like Wings Travel Management have never been more important to their customers

written by: Will Daynes research by: Marcus Lewis 172 | Be africa

Wings Travel Management

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Wings has expanded around the world

Wings Travel Management

O

ver the past two decades, the oil and gas industry has taken off at an incredible rate in many developing markets, helping establish nations such as Brazil, China and South Africa as modern centres of economic prosperity. The evolution has also allowed those companies that are best positioned to service these markets to grow and, more importantly, overcome many of the challenges posed in recent years by the financial crisis.

Described as a “high tech, high touch” organisation, Wings Travel Management is a global travel management company (TMC) specialising in offshore, marine and corporate travel. Founded in 1992, and employing approximately 300 people in four regional hubs, Wings possesses an advanced and unique quality management system that is an integral part of its operating procedures.

Having just celebrated its 20th anniversary, the company has witnessed first-hand how the market has adapted and changed in that time.

“There is no doubt,” explains chief executive officer Tony Sofianos, “that the last few years have been incredibly tough. Notwithstanding the economic environment, we have managed to position ourselves optimally so we can maximise the opportunities that exist as well as be better positioned to expand as economic conditions improve. In fact through the acquisition of a number of businesses around the globe in recent years and strong sustainable organic growth, we have been able to achieve strong double digit growth numbers throughout this recession.”

Another way in which the company has

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weathered the economic storm is by actively taking an aggressive approach toward managing its costs, while retaining its commitment to investing in new technologies and its resources. “Being able to manage our costs effectively has been of huge benefit to the business,” Sofianos continues, “but so too has our ability to identify new revenue streams and increase our overall productivity.”

Said revenue streams are increasingly coming from those aforementioned developing economies. “Two of the fastestgrowing markets in the oil and gas sector are Brazil and the continent of Africa, and having a strong presence in both has undoubtedly strengthened Wings as leaders in the energy sector,” Sofianos states. “This is particularly true when it comes to Brazil, which has come along by leaps and bounds over the past several years. The oil and gas industry in that part of the world is positively booming today, and we are extremely excited to be right at the heart of that.”

In pursuit of further growth opportunities, Wings continues to scout for potential acquisitions and engage with different players in different parts of the world.

Notwithstanding the fact that Wings corporate headquarters migrated to the UK a number of years back, Wings is still committed to, and

recognises the importance of continuing to invest in, South Africa and Africa as a whole, where it was originally founded 20 years ago.

This recognition is exemplified by the fact that Wings can today be found in esteemed company within the membership ranks of the

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Wings Travel Management

Wings is a “high tech, high touch” organisation

South African Oil and Gas opportunities with other players in the sector.”

Association (SAOGA). “We are very unique, in that while Toward the end of SAOGA is primarily made up 2011, Deloitte carried out of industry operators and a comprehensive business The year the company service providers, it is rare travel survey to calculate was founded to find a third-party service what the percentage of business travellers would be provider like us within such an association,” Sofianos in 2012. The results were says. “Being a member of SAOGA gives eye opening, with 85 percent of those who us a level of credibility in this region that travelled in 2011 saying they expected to is not easy to obtain, due to the selective embark on as many journeys in 2012, and nature of its membership structure, and, of 27 percent of 18 to 44-year-olds surveyed course, it also provides excellent networking intending to travel more. What these figures

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highlighted was an ever-increasing need for business travel companies, and this remains the case as we head into 2013.

“I think that while the global financial climate will remain challenging in the shortto-medium term, thus meaning companies will continue to drive down costs and margins, there are still going to be plenty of opportunities for companies like ours, specifically in the energy sector. This will

particularly be the case as the Asia-Pacific region comes online for Wings in the near future,” Sofianos says.

In terms of Wings’ brand and value proposition, its business is to provide services to companies where business travel is a crucial part of their business model, like the oil and gas industry, which accounts for over 50 percent of Wings’ volumes. “As is most often the case in the oil and gas

“Two of the fastest-growing markets in the oil & gas sector are Brazil and Africa. having a strong presence in both has undoubtedly strengthened Wings”

Business travel is a crucial part of the business model in the energy industry

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Wings Travel Management

Travellers expect a consistent, predictable service delivery

industry,” Sofianos enthuses, “very little of what takes place today such as operations in the field, can be replicated by video conference and other technology. While some small elements of technology are beginning to creep into the industry, the movement of people on and off oil rigs, or between key assets, is not something that is going to change anytime soon, and that is what makes a company like Wings such an important part of our customers’ business.”

While turbulent financial conditions continue to exist, Sofianos is very clear about what Wings needs to do in order to stay the course it is on. “What is important is being able to maintain a stable growth curve, by firstly retaining our customers and

also acquiring new strategic ones, and never taking your eye off what is important to our travellers—consistent predictable service delivery, irrespective of the environment.

It is also vital that we continue to be leaders and experts when it comes to entering and prospering in emerging and tough markets such as Brazil, the Middle East, East and West Africa. It is in these locations that the industry will grow at its most significant rates and we will remain well positioned to capitalise on this.”

For more information about Wings Travel Management visit: www.wings.travel

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Daring to diversify ChemSystems has been a fixture of the chemicals industry for over five decades. Sales director, Laurence Davies, and business development manager, Charles Du Bois, discuss how the company is now making a name for itself in the oil and gas sector

written by: Will Daynes research by: Will Kirby

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ChemSystems

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Houghton BOP

ChemSystems

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key component of the and Constructichem (a division focusing on country’s industrial base, the construction sector). What ChemSystems South Africa’s chemical also possesses is three distinct models in industry is the largest of its which it does business, these being direct kind in Africa. Globally, the trading, manufacturing under license and chemical industry boasts an estimated value manufacturing its own IPM technologies. of more than $4 trillion and while Africa’s “One of the biggest contributing factors to contribution to this has been relatively small our success over the years,” Davies continues, to date, the chemicals sector is expected to “is that we have always employed individuals play an increasingly important role in African who are experts in the chosen fields in economies in the decades ahead. One of the which we operate. This has allowed us to factors that is expected to help drive this offer our customers high value-add technical demand for chemical products and solutions support. Such capabilities are all the more important when you consider the fact that, is the growth of the oil and gas sector.

One company that has as a company, ChemSystems witnessed first-hand the doesn’t simply sell a product, dramatic industrial changes it sells solutions.” that have occurred in the Being a local manufacturer, region during its 50-plus year ChemSystems possesses a history is ChemSystems. A certain degree of flexibility that has allowed it to tailor $46 million company in its its offerings to customers own right, ChemSystems is The value of one of 13 chemical companies throughout the years as the ChemSystems belonging to the AECI Group market around it has evolved.

(African Explosives and In addition to having a strong Chemical Industries), which is listed on the presence in its home market of South Africa, the company has also gained significant access Johannesburg Stock Exchange.

“As one of the older companies within to sub-Saharan territory through various the AECI cluster,” explains sales director, technology and distribution partnerships, Laurence Davies, “we have a long history in giving it a large area of opportunity to pursue. the field of industrial products.” A diverse “While it is important to note that a large business, ChemSystems’ operations are split proportion of our market remains orientated into five, very different, divisions. These towards mining, indeed around 80 percent include Status Industrial Solutions, Capital of our African business does still stem from Polymer Additives (additives for polymer this sector,” Davies highlights, “what we industry), SA Silicones (silicone based have seen in more recent times is a spike in products for a wide range of industries), interest towards oil and gas following large Applied Solutions (the foundry industry) discoveries that have been made off the coasts

$46

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$4 trillion The estimated value of the global chemicals industry

Molykote bolted connections

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of South Africa, Angola and Mozambique.”

These events have in turn led to ChemSystems shifting its focus towards the oil and gas industry. By getting a better understanding for this market and the type of solutions it can provide potential customers, the company has been able to put together a suite of products that it is able to present to the offshore oil and gas sector.

ChemSystems holds technology and manufacturing license agreements with a number of leading chemical and lubricant producers including the likes of Castrol and Houghton International. “Houghton International,” states business development manager, Charles Du Bois, “is one of only a handful of companies that supply offshore fluids that are used in sub-sea control units, compensator units and blow-out preventers (BOP). These are products that are of the highest quality, are used by drilling companies across the globe and we are very proud to be able to offer them to our customers.”

In addition to the Houghton off-shore fluids, a comprehensive fluid test kit is available and fluid sample analysis programmes can be implemented to ensure that the fluid properties remain within specification. These analyses also allow

ChemSystems

Molykote lubricants are extremely effective

it to investigate fluid deterioration and to implement the corrective measures. Systemcleaners are available from Houghton in case of fluid contamination whereby systems need to be flushed. Houghton also offers a full range of corrosion protection products for oil field tubular.

Another series of products that are of particular importance to ChemSystems come under the name of Molykote. Created by the company Dow Corning, these products are used to lubricate threaded connections and flanges, and are commonly used to maintain rig equipment that operates in aggressive,

logistically challenging environments. “Dow Corning,” Du Bois says, “has had great success with these products in the North Sea, where the likes of Statoil and Shell have become users of Molykote. It is with this in mind that we see a great deal of potential for this brand throughout Southern Africa.”

The Molykote lubricants are extremely effective on those applications where there is very low relative motion in conjunction with very high loads, for example splines, bolts or nuts, pins and bushes, and press fit applications. The use of these products significantly improves the workshop and on

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site safety during assembly and disassembly of equipment and components.

For almost 30 years, ChemSystems has been involved in the fire fighting industry, manufacturing fire fighting foam concentrates, and today holds a technology partnership agreement with the German company Dr Sthamer. “As you can imagine,” Davies states, “fire is an ever present risk in the oil and gas sector, and as such companies

go out of their way to protect their assets accordingly. What we do is produce a range of globally approved fire fighting concentrates.

These products are made under license in South Africa and meet all the global fire protection association standards.”

In addition to the aforementioned products and solutions, the company also represents Chemetall, selling non-destructive testing penetrates into a number of industries, oil

“ChemSystems holds technology and manufacturing license agreements with a number of leading chemical and lubricant producers”

Fire is an ever present risk in the oil and gas sector

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ChemSystems

ChemSystems produces a range of globally approved fire fighting concentrates

and gas included. These products are used to identify defects in vessels, pipelines and other items of equipment that need to undergo regular integrity checks.

Then there are the products that ChemSystems develops itself using its own technology. These include its Marine range of solutions that include oil dispersants.

The company also produces a selection of cleaning and maintenance products and microbiological treatments, a range of corrosion inhibitors and descalers and carbon removers.

In its home market of South Africa, ChemSystems oil and gas related activities

continue to expand at an impressive rate. It is at times like this that a company such as ChemSystems, being a relatively new player in the market, benefits greatly from having other well entrenched players around it that it can draw knowledge from.

One of the reasons that ChemSystems finds itself in such a position is through its membership of the South Africa Oil and Gas Association (SAOGA). “SAOGA,� Davies enthuses, “provides us with the ability to network with others in the industry, gain a better understanding of the market and establish potential future partnerships.

It also provides us with an excellent

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opportunity to showcase our own products and services to the right people.”

The success the company continues to have in South Africa by no means suggests that it doesn’t recognise that there are a host of opportunities further afield. Indeed, two particular parts of Africa are becoming of increasing interest to ChemSystems, those being Angola and Mozambique.

“Angola,” Davies says, “is a country experiencing a great deal of activity at present. It is with this in mind that we are working hard to get a better understanding of this unique market. Charles himself recently spent some time in the country forging relationships with potential partners.

Similarly, we are looking to identify logistics partners in order to make our product offering as price competitive as possible.”

Research of this nature is also being undertaken as it relates to Mozambique, a market that is still very much in its infancy when it comes to oil and gas. “What we hope to do,” Du Bois says, “is take the lessons we have learnt, and will learn, in Angola, which is a market that is further ahead in terms of industry development, and apply them to Mozambique.”

The sheer potential for Africa’s oil and gas sector to become one of the most important

in the world should be reason enough to believe that a very promising future lies ahead for ChemSystems. However, if any further proof were needed one only needs to look at the company’s ability to diversify itself over the years.

“What we have,” Davies goes on to say, “is a level of flexibility that allows us to change our market focus and product offering fairly rapidly.

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ChemSystems

ChemSystems has been shifting its focus towards the oil and gas industry

This makes us highly versatile and able to adapt accordingly as customer needs and business trends change. In truth, as recently as ten years ago we probably wouldn’t have predicted moving into the oil and gas sector, but as that market has expanded we have been able to respond in a way that allows us to concentrate more of our efforts on such industries that we see as having a longer lifecycle.”

That is not to say that ChemSystems no longer wishes to be involved in a mixture of markets, but what it does highlight is that, as well as wanting to protect the strong position it already holds in these, the company will continue to seek out new growth opportunities as they arise.

“Today,” Davies concludes, “ChemSystems

exists as a strong player within the South African chemicals sector and we want to build on that. We see a large part of our future being driven by our ability to spread out further across Africa. This won’t be a quick or easy process, and may require us to adapt our business model slightly in some regions, but it is one that we see as being of great benefit to us as we recognise that a large portion of our future is going to be intertwined with the future growth of Africa as a whole.”

For more information about ChemSystems visit: www.chemsystems.co.za

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Denel Aerostructures

Making the transition CEO Ismail Dockrat discusses the restructuring programme that has contributed to this South African success story

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CEO of Denel Aerostructures, Ismail Dockrat

Denel Aerostructures

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n the nearly two decades since 1994, air “At the time that I joined the business,” travel into South Africa has increased by Dockrat explains, “Denel Aerostructures was approximately 70 percent. In fact, during very much in need of undergoing a major the month long staging of the 2010 FIFA transition in order to become a 21st century World Cup alone it is estimated that over aerostructures manufacturing company. one million foreigners visited the country. In order to bring about a major overhaul These figures go some way to highlighting in our manufacturing processes we had to the reason why the aviation sector in this part undertake a massive turnaround programme of the world has undergone such tremendous that consisted of eight core objectives.” growth in recent times.

The first thing the company needed With a heritage that dates back to the to do was align itself with South Africa’s establishment of Atlas Aircraft Corporation national aerospace objectives. The country’s in 1964, Denel Aerostructures is recognised government has identified the aerospace as being one of the leading players in the sector as a priority for job creation and fields of aircraft development economic growth and Denel and manufacture in Aerostructures has made Sout h A f r ic a.

T he the concerted effort to become a leading proponent company’s core capabilities of its Aerospace Sector include comprehensive Development Plan for the desig n, development, Increase in air travel in country. industrialisation and the South Africa since 1994 assembly of fixed and rotary “One of the most important wing aerostructures for things I was tasked with the global market. Past and from an early stage,” Dockrat present clients include the likes of Gulfstream, continues, “was devising a credible business Saab, BAE Systems, AgustaWestland and its plan on which a recapitalisation of the business could be based. Successfully doing so main customer, Airbus.

Today the company is led by chief executive has allowed us to turn the corner from being officer, Ismail Dockrat. Having spent much a loss making business.” Equally as important of his career in the defence and aerospace in this context was the restructuring of the industry, Dockrat joined Denel in 2006, first company’s work programmes. as the chief executive officer of Denel Aviation, As well as bringing several programmes before moving across to Denel Aerostructures to a constructive end, this prompted the in 2010. It was at this time that the company company to sit down with Airbus and was in the midst of difficult economic times, renegotiate its existing contracts for caused through a combination of factors the A400M military transport aircraft including inherited operational weaknesses programme. It was the implementation of a and the on-going global economic downturn. focused operational turnaround that allowed

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2006 Chief executive officer, Ismail Dockrat joins Denel

Denel Aerostructures is home to the largest special processes facility in the southern hemisphere

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these renegotiations to be successful. This turnaround has led to an improvement in the company’s throughput, the introduction of lean manufacturing principles throughout its operation and an increase in its delivery performance. These factors have prompted Airbus to make a long-term commitment to Denel Aerostructures.

Due to the state of the business at the time of Dockrat’s arrival, one of the more necessary steps that needed to be taken was a process of cost-cutting initiatives. This included reducing the physical footprint of the company by twothirds. By reducing the amount of ground it occupied from 75,000 square metres to 25,000 square metres, and by reorganising its production work flows, the company was able to make considerable savings in terms of rental, labour and infrastructure costs.

Being a time of great change, it also fell to Dockrat and those around him to improve the motivation levels of the company’s workforce.

“We have always had a fantastic team here,” Dockrat enthuses, “however motivation levels at the time that I joined were not where they should have been. To improve this we put in a lot of time and effort to really connect with our workforce, engaging with them on all levels and involving them in the decision

Denel Aerostructures

Denel Aerostructures’ capabilities include advanced design and engineering.

Above is an image of the wing to fuselage fairing size in relation to a person

making process regarding how we can take the business forward.”

Another complex undertaking required the company to effectively overhaul its entire supply chain management system. This process allowed it to delegate certain areas of work to local suppliers, things like simple sheet metal work, while refocusing itself on more complex tasks that mix high-end machining and hand-layup composite work with a design element.

“One of the most exciting things for us right now,” Dockrat states, “is the development of new business. We have a strong foundation of work with the likes of Airbus and Gulfstream and we are now actively engaging with all major aerospace OEMs and tier one aerostructure manufacturers to secure new work for the company.”

Last, but not least, the final objective of the turnaround was to achieve good financial governance and a strong control of all

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internal controls. Achieving this has helped reassure the company’s stakeholders that it is managing its balance sheet in a responsible manner. “When it comes to all the different aspects of our turnaround programme,” Dockrat says, “we are immensely pleased that we have managed to meet all of the objectives that we first set ourselves back in 2010.”

Arguably the most interesting project that the company finds itself involved in today is the wing-to-fuselage fairing (WFF) work being carried out on the A400M for Airbus.

A highly technical undertaking, the WFF is a large structure that sits on top of the aircraft where the wing section connects to the fuselage.

“Arguably the most interesting project the company is involved with is the wing-to-fuselage fairing (WFF) work being carried out on the A400M for Airbus”

Denel Aerostructures is involved in three work packages for the A400M, the top shells, ribs swords and spars and the wing to fuselage fairing

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Denel Aerostructures

Denel Aerostructures team – together we “Make It Fly”

“Made up of hundreds of composite panels,” Dockrat details, “the WFF has an aluminium frame, the lightness of which has contributed greatly to Airbus’ efforts to reduce the overall weight of the aircraft. In the process of creating this structure we have developed a global excellence in terms of weight saving for our industry and that is something we are extremely proud of.”

The structural and system interfaces of the WFF meant that Denel Aerostructures had to have a digital infrastructure in place that allowed it to communicate and exchange information in real time with all other

partners within the A400M programme. “We are very excited with the progress we have made to date with this programme,” Dockrat says, “and as we now enter the production phase we find ourselves in the perfect position to initiate an accelerated ramp up for Airbus.”

Last November, the company made its presence felt at the 2012 AIRTEC International Aerospace Supply Fair, where Dockrat himself delivered a keynote speech. “Some of the most interesting talks at the conference,” he reveals, “were those that examined, at a broader level, what the future will hold for air travel. I personally feel that this century

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Denel Aerostructures’ world class capabilities include Denel Aerostructures specialises an assembly line; above is the top shell assembly in house Zimmermans allow fo

“Future plans involve establishing a greater footprint in other aerospace markets, namely the business and commercial aircraft sectors” will be a hugely exciting and defining time for everyone involved in this industry, particularly when you look at all that has been achieved to get us to where we are today and all that is predicted to come, what with the rise of numerous developing economies. It certainly makes for exciting

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reading for us when you think that we have really only just touched the tip of the iceberg in terms of how we are applying advanced materials in composite structures in the development of aircraft.”

Looking ahead, Denel Aerostructures’ future plans involve establishing a greater

Denel Aerostructures

s in advanced manufacturing. Two or expertise in thin web machining

Ismail believes in being hands on within the factory. Mr Dockrat interacts with the shopfloor, and is taught by his colleagues what their job entails

footprint in other aerospace markets, namely the business and commercial aircraft sectors.

“As a result of the work we have on-going with Airbus,” Dockrat says, “as well as that which we have carried out for the likes of Saab and BAE Systems, we believe we have earned a very strong reputation in the marketplace and that is something we want to build on.”

In the commercial aircraft sector, two major procurements on the horizon, involving the regional, state-owned carrier SA Express and South African Airways respectively, bode well for Denel Aerostructures. “What we are doing,” Dockrat concludes, “is actively pursuing

engagement with the likes of Embraer, Bombardier, Airbus Commercial and Boeing Commercial in order to position ourselves appropriately to win business on these programmes. While we have to ensure that we remain competitive in the marketplace, we must also remain realistic and that means identifying the type of work that fits into our technology base. This is what we believe will be the key to our success.”

For more information about Denel Aerostructures visit: www.denelaerostructures.com

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3Q Concrete

Cementing a legacy 3Q Concrete supplies its products to some of most important infrastructure projects in South Africa and has positioned itself perfectly to respond to developments within an ever-changing market

written by: Will Daynes research by: Paul Bradley

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3Q Concrete

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erived from the Latin word and quickly. “We try to emphasise these “concretus”, meaning compact traits and characteristics in all that we do,” or condensed, concrete has had Marais enthuses, “and this all begins with an immeasurable impact on the relationship that we seek to form with both the ancient and modern our customers. We strive to have a personal world with its usage dating as far back as bond with each client, utilising the smaller 800 BC. Today the global use of concrete company mentality that we have that is twice that of steel, wood, plastics and promotes regular interaction.” aluminium combined, and is only exceeded Of course, product quality is equally as by the usage of naturally occurring water. important as good customer relations and Founded in 2006, 3Q Concrete is a the systems and process controls that 3Q South Africa based company specialising Concrete has established throughout its in the production of normal organisation ensure that, and customised readywhile it is able to provide its clients with a cost effective mixed concrete from its form of concrete, it has 12 strategically located batching plants. “We began never once compromised on life as a small operation,” the quality of its product.

The year that 3Q “One of the other explains Managing Concrete was established contributing factors to our Director, Charl Marais, “located in the North West success,” Marais states, province of the country, close to where the “is our f lexibility. As a result of the major platinum mines are situated.” geographic location of our plants and our From there the company steadily grew fleet of more than 80 trucks we are able to by making a number of acquisitions, before follow market demand wherever it may go, eventually becoming a part of Capital Africa mobilising our resources quickly. Indeed, I Steel (CAS), which itself is 50 percent believe that we have now reached an ideal owned by Wilson Bailey Homes (WBHO), critical mass where we have a large enough one of the largest construction companies fleet that allows us to do this efficiently in Africa. “We have expanded nicely in and effectively.” recent years,” Marais continues, “operating 3Q Concrete’s prosperity means that it is primarily in parts of South Africa that able to continue seeking ways to expand its have witnessed a rise in mining activity presence. One of these will see it open up a and positioning ourselves accordingly to new batching plant in the coming months capitalise on positive developments within in the Northern Cape province of South Africa. It is here that it hopes to profit from the marketplace.”

The three q’s that the company derives the extensive iron ore mining activities its name from stand for quality, quantity within the region.

2006

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3Q Concrete

3Q Concrete produce both normal and customised mix designs

With almost 50 percent of South Africa’s economy being in some way reliant upon the mining sector, it is understandable that the industry remains of great interest to 3Q Concrete. “Mines continuously need improvements and modifications,” Marais says, “and concrete is always a core ingredient during these undertakings.”

3Q Concrete is very much a project

orientated company and as such it focuses primarily on areas where construction activity is prevalent, while at the same time being able to continuously assess market levels. This approach to its work means that it is now looking into opportunities to expand outside of its own borders into Mozambique where it foresee lots of potential opportunities for growth.

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“it’s always important that companies possess employees with a hunger for work and a management team capable of accurately monitoring costs

3Q Concrete aims to open three new batching plants in 2013

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3Q Concrete “While it is fair to say that we do run a tight ship,” Marais says, “at the same time we consider ourselves to be a lean and mean operation.

Our business model allows us to make money even when activity levels in the country decrease. Whereas other large companies often end up finding they become reliant on constantly high volumes of work in order to turn a profit we are unique in that we are equipped to ride the ups and downs of the market and remain profitable.”

As of today 3Q Concrete remains committed to opening up at least three new batching plants during the first half of 2013, while also putting in place the ground work for further expansion in the six-to-twelve months following.

“Approximately 60 percent of WBHO’s revenues come from outside of South Africa,” Marais says, “and it is because of this that we are more determined than ever before to capitalise on the opportunities that Southern Africa has to offer.”

In order to do this Marais is adamant that the company needs to retain the mentality that has served it so well to date. This means having employees who are hungry for work and taking a pragmatic view when it comes to costs. “Since the onset of the global financial crisis in 2008 it has never been

3Q prize their employees above all other things

more important for a company that wants to be successful to possess a workforce with a hunger for work and a management team capable of accurately monitoring costs. As times have changed so too have businesses had to adapt accordingly and that is what we have done. By having the right people, attitude, discipline, flexibility and the desire to go that extra mile for our customers we have been able to exceed even our own expectations.”

For more information about 3Q Concrete visit: www.casteel.co.za

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Working in perfect harm Bridget Linzie talks about how harmonising policies and regulations across the region can stimulate investment and growth

written by: Gay Sutton research by: David Brogan

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CRASA

mony

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CRASA’s remit has been expanded to include the Postal sector

CRASA

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ne of the cornerstones of social and economic development in today’s competitive global marketplace is collaboration. In 1997 the national ICT regulators in the Southern African Development Community (SADC) came together to form a joint body, the Communication Regulator’s Association of Southern Africa (CRASA), whose remit was to facilitate harmonisation of regulatory frameworks across the region, for the benefit of SADC Citizens.

Today, CRASA’s remit has been expanded to include the closely related Postal sector, following a merger in June 2011 with the postal regulators’ association, Southern Africa Postal Regulatory Association (SAPRA).

“There are huge opportunities in the SADC countries for investment and growth in the ICT and postal sectors,” explained CRASA Acting Executive Secretary, Bridget Linzie.

“By harmonising the regulatory environment across the region we hope to make it much more attractive for investors to enter and operate in any of the SADC countries and therefore accelerate the region’s social and economic growth.”

While CRASA has its headquarters in Botswana, 13 of the 15 countries in the SADC are active members, namely Angola, Botswana, the Democratic Republic of Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe. “Our strength as an organisation is that we are one of the implementing agency of SADC. We were created under the Protocol of Transport,

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Communications and Meteorology, so to digital technology, both in terms of we have strong links Ministerial Annual fibre telecommunications networks and Meetings and have influence on the broadcasting technology. development of policies and regulations for “We have made significant progress from the ICT and Postal sectors. Advocacy is one this perspective,” said Linzie. “We now have of our core strategies for ensuring the region six submarine cables coming to the region reach consensus,” she said. providing adequate international bandwidth CRASA liaises with other regional and for global communications. The current international organisations in Africa, status of ICTs in the region shows that one of the main problems is Europe, America and Asia and benchmark its activities that although most of the to ensure that it is advising underlying infrastructure is the SADC regulators on the in place, it is not efficiently latest technologies and best used. Landlocked SADC practice. Currently one of Member States still pay more The year that CRASA to get to the coast or to the its primary objectives is was established rest of Africa than they do to support the migration

1997

CRASA are making significant progress in the switch to digital technology

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CRASA

“CRASA benchmarks its activities to ensure that it is advising the SADC regulators on the latest technologies and best practice” to get from the coast to Europe, the US or Asia”. CRASA, therefore, is looking at how the region can address the issue of ensuring cost effective access to the submarine cables especially for the landlocked countries.

Another major issue in the SADC region is that roaming tariffs for mobile telecommunications are still unacceptably high, even though the mobile operators in the region have initiatives to reduce the tariffs.

“If we are to open up this region to trade, we are going to need cost based roaming prices.

So we are currently exploring on how we can work further with the operators, regulators and government officials to agree on a mechanism for reducing the roaming tariffs to the benefits of our citizens and visitors,” she commented.

From the broadcasting perspective, CRASA is collaborating with all its member states to help promote the migration to digital broadcasting technology. As part of the initial decision making process, ministers have recently debated whether the region should base its technology on American, Japanese, Brazilian or European standards, and have decided on the European model.

Even though the initial target of the switch off date for the region of 31 December 2013 is not likely to be met, CRASA is working

with the SADC Secretariat and governments to ensure the foundations for the switch are harmonised, and that all countries will be able to complete the migration by the internationally recognised deadline of June 2015.

This past year CRASA has had the additional challenge of integrating the needs of postal sector regulators into its organisational

Bridget Linzie, Acting Executive Secretary, CRASA

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structure and operational strategy. “Because the subject is new to us, most of our activities and achievements so far have been on the topic of ICT,” said Linzie. “However, as most regulators across SADC are what we call converged, that is they are already regulating communications, broadcasting and postal services, the merger has not had a disruptive

influence on our business plans. We are largely dealing with the same regulators, which will ultimately make it much easier for us to push forward market reforms to the postal services.”

There is undoubtedly much still to do, and there are many issues on the horizon that will require ongoing roundtable discussion

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CRASA

CRASA will base its broadcasting technology on European standards

and the mediating skills of CRASA. Many countries have no framework of policies for dealing with cyber security, and it will take a joint effort to achieve regional consensus to address the issue. Meanwhile, there is a role to play for the communications, broadcasting and postal sectors in order to bring awareness of sustainable development and social responsibility especially on issue regarding the environment.

Once harmonisation has been achieved across SADC, Linzie believes CRASA will continue to have a key role to play for regulators and governments in the region.

The ICT sector, for example, will continue to be intensely dynamic. “We must make

sure our plans for the region are always forward looking and that we are always ready for change as it happens,” she said.

“That’s why CRASA is so important. It gives the regulators a forum where they can talk about the challenges and learn from each other and other regions; a forum into which we can bring expertise from Africa, Europe, America and Asia, and where we can explore how our colleagues are tackling the regulatory issues.”

For more information about CRASA visit: www.crasa.org

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Vodacom SA

Networking the nation Vodacom’s most recent quarterly trading statement further highlights the importance of its core SubSaharan markets and, more importantly, the strides the company continues to make in order to remain a leading network in an increasingly competitive sector

written by: Will Daynes research by: Candice Nice

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Vodacom SA

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ehind Asia, Africa is the biggest mobile phone market in the world, and the fastest growing anywhere on the planet with the number of subscribers on the continent growing by almost 20 percent year-on-year for the last five years. Analysts estimate that by the end of 2012 there were more than 735 million subscribers across the continent, a figure that is the equivalent of a 65 percent penetration rate.

In South Africa mobile phone use has risen from 17 percent of adults in 2000, to 76 percent in 2010, with over 30 million people in the country now thought to use a mobile, more than those that own a radio, a television, a personal computer or indeed a landline phone.

Vodacom is a pan-African mobile telecommunications company and the lead cellular network in South Africa. Today the company provides GSM services to around 50 million customers in South Africa, Tanzania, Lesotho, Mozambique and the Democratic Republic of Congo. Aided by its release of a series of optimistic advertisements during the early stages of the democratic South Africa, Vodacom quickly grew into one of the leading networks in the country with an estimated market share that today stands at approximately 50 percent.

On 6 February 2013, Vodacom Group released its most recent trading statement for the quarter ending 31 December 2012. “This last quarter has been characterised by strong performance in data and our international operations, tempered by some challenges in our South African business,� commented

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Vodacom SA

Vodacom head office in South Africa

Vodacom Group CEO, Shameel Joosub. Vodacom make a much more concerted “Group revenue expanded by 4.8 percent year- effort to focus its investment activities on-year and 7.1 percent quarter-on-quarter, on maintaining its network leadership. while group data revenue increased by 23 This was perhaps best demonstrated in its percent and revenue from our international commercial launch of its LTE service, the first of its kind in South Africa. At the time of operations grew by 22 percent.”

During the quarter, active customer growth writing, the company’s LTE coverage has now across the Group also remained positive with extended to reach Johannesburg, Pretoria, its international base growing 13 percent Durban and Cape Town, with 542 active sites and counting. and its key South African Vodacom’s quarterly base also increasing by 12 percent. While the number results for South Africa show of customers increased in that in the three months to South Africa, voice revenue the end of December 2012, continued to be impacted by revenue increased by some increased competition in what 2.2 percent to R15.5 billion, Market share held by the company in South Africa is today a softer economy. driven primarily by the Such conditions have seen 27.2 percent growth in

50%

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equipment revenue from smartphone and tablet sales. Meanwhile, when excluding the impact of regulated cuts in MTR’s, service revenue increased by 1.4 percent.

One of the factors that influenced these results was the company’s decision to take corrective action to improve its customer base and reduce the volume of one-off usage customers. As expected, this has resulted in higher churn and net disconnections during the quarter, however what it has also resulted in is a reduction in the company’s prepaid acquisition costs and improved profitability in its prepaid customer base.

Value offers and network investment saw the number of active customers in South

Inside a Vodacom store

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Africa increase year-on-year by 11.7 percent to 30.6 million, while contract customer numbers increase by 6.0 percent to 5.9 million. This latter figure alone added almost double the net connections that Vodacom reported in each of the two previous quarters to approximately 120,000 customers.

At the heart of Vodacom’s integrated plans during the latter part of 2012 was its strategy of offering “much-more-for-more” (MM4M) and its “double your summer” promotions.

Meanwhile, the company has continued to see a strong uptake in the integrated voice, SMS and data price plans that it first launched in July 2012, with almost a third of new mobile contract customers that signed on during the

Vodacom SA

“Smartphones remain a key growth driver for Vodacom in South Africa, with active smartphones increasing to 5.8 million devices� last quarter opting for these plans.

In what will come as little surprise given global trends, smartphones remained a key strategic growth driver for Vodacom in South Africa during the final few months of 2012, with active smartphones increasing 29.2 percent to 5.8 million devices.

Smartphone net additions increased during

the quarter, adding over 500,000 customers to Vodacom’s network, a figure largely supported by its working capital investment in handset financing.

Naturally the continued growth in smartphone uptake resulted in the company recording an increased in usage by over 36 percent to 138MB per smartphone customer per month. Indeed one of the more consistent trends that the company has recorded in recent times is that the appetite for data services amongst its customer base remains strong, with active data customers increasing to 13.8 million, representing over 45 percent of its customer base.

Another important differentiator for Vodacom continues to be its commitment to network investment. One such investment has seen the company make further strides in improving the speed and coverage of its 3G network, adding 317 base stations in the quarter to take its total to 5,855. In addition, Vodacom continues to invest in increasing the capacity of its voice network to support higher customer usage.

For more information about Vodacom SA visit: www.vodacom.co.za

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Zimbabwe ta

POTRAZ: The national regulator overseeing the develo of Zimbabwe’s telecommunications network

written by: John O’Hanlon research by: David Brogan

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POTRAZ

talking

opment

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POTRAZ

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Sites built under the Universal Service Fund are generally not on the national power grid, so POTRAZ has opted for environmental friendly solar power

hen it comes to telecoms Zimbabwe faces many of the problems common to African countries.

Though it has a better legacy in terms of fixed infrastructure than many of its neighbours, it covers a large territory and its 12 million population is scattered widely. Inevitably the cities were the best served populations, driven by business and government demand: until quite recently the rural areas saw very little service at all.

This has all started to change rapidly upon ‘dollarisation’ in 2009, when the power-sharing government officially adopted the US dollar for all its transactions. This move had a dramatic effect on Zimbabwe’s telecommunications industry, raising confidence and giving the three main mobile operators, Econet, NetOne and Telecel Zimbabwe, confidence to invest in network expansion. Prior to dollarisation access to telecommunications, especially mobile, was limited to only a privileged few and was seen as a status symbol, with less than 20 percent penetration. Today it has risen to 90 percent, while only three percent of households are connected to the fixed line network, and twelve percent to the internet via broadband or GSM. Overlooking this change is the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ), the government body that licences all operators within the country and a key member of the Communication Regulators’ Association of Southern Africa (CRASA). POTRAZ is charged with promoting the development of the industry in an equitable manner.

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Not surprisingly most of the investment is currently going into funding the fast growing and technically dynamic mobile networks.

TelOne, the company formed after the government disbanded the former telecoms utility the Post and Telecommunications Corporation (PTC), still holds a de-facto monopoly on fixed-line services in Zimbabwe, though the government plans to privatise up to 60 percent of both TelOne and its mobile arm NetOne, either through an IPO or a strategic partnership with a foreign investor.

Despite having been granted its operating licence ahead of its two rivals, NetOne is third in terms of subscriber numbers, with Econet the market leader.

As at the end of September 2012, telecommunications in the form of either fixed or mobile services covered nearly 80 percent of the country (excluding national parks and game reserves), a very positive reflection of the work that has been done in recent years, says deputy director general of POTRAZ Alfred Marisa. However there are still significant parts of the country that are underserved because they are not a commercial proposition for the mobile operators, and addressing this is an important part of the regulator’s remit. POTRAZ administers the Universal Service Fund (USF), to which all

telecoms operators are obliged to contribute two percent of their revenues. “I think it was wise of government to put these funds into our hands,” says Marisa. “If it had been left in the hands of the Treasury the government might have ended up doing other things with the money but this way we can ensure it goes to improving the network, especially to remote rural areas.”

POTRAZ identifies sites in consultation with

“Operators are starting to appreciate the encouragement to invest in areas they would have otherwise neglected” 228 | Be africa

POTRAZ

The Universal Service Fund helps improve the network in remote rural areas

the commercial operators. If of 2013. The first phase consisted of sites at Chidodo, they don’t have plans to roll out a service, POTRAZ will Pfungwe, Neuso, Chilo, use its USF resources to build Chiodza, Malipati, Manama base station towers/masts and Dhlamini plus three Access to that it will then assign to the repeater stations. All the first telecommunications existing operators, but only phase sites are already on in Zimbabwe on condition that they share air. “Though the immediate benefit is felt by the people the resource with the others.

Many of the older existing who wouldn’t otherwise have towers were not designed to support shared been connected, it’s in the operators’ interest operation, says Marisa. “They are owned by to be pushed into expanding the network,” one but shared by all. Of course the operator says Marisa. “Some of them object to the that owns the site may charge a fee for levy but we will probably be able to reduce operational and maintenance costs.” that next year. Meanwhile they are starting Under the scheme eleven base stations to appreciate the encouragement to invest in have already been built using USF funds and areas they would have otherwise neglected.” a further 43 will be completed over the course This is not purely a social investment,

90%

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Eleven base stations have already been built using USF funds

Forty three b

“We want to see growth in the ITC sector and play our facilitatory role in encouraging operators to invest” he adds. Greater connectivity will drive business growth and regional prosperity— consequently traffic, and with it the operators’ revenues, will grow in the long term. As a regulator, Marisa realises that this growth will come not so much from voice as from

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data communications, which in an African context really means mobile broadband.

Econet and Telecel have been active in developing their offering in this field, with the government owned NetOne taking up the rear, but POTRAZ is encouraging its

POTRAZ

base stations are planned in 2013

POTRAZ exhibiting at the Zimbabwe International Trade Fair (ZITF)

operators to take the long view. “It is not just about taking the old base stations from town and siting them somewhere else; they need to put the most advanced technology out there.

These areas are still virgin land in terms of those operators!”

POTRAZ has been listening to the operators as well as haranguing them. One of the restrictions on telecoms growth, it recognises, has been the complexity of the licensing landscape with different licences for different services. “We want to get quickly to a point where we can offer technology neutral licences, or converged licences that

will allow an operator to provide any service which they see fit. I think that as a regulator we have done our best to get a culture of professionalism into the sector; we want to see growth in the ITC sector and play our facilitatory role in encouraging operators to invest.” Converged licences should be available in 2013. They will cut red tape and cost since each service currently requires a separate fee and application process. In turn this will draw more services into the market and encourage innovation, he believes.

And POTRAZ is in the process of coming up with a forward-looking costing model called

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USF resourced base station towers and masts must be shared with other operators

POTRAZ

2013 Converged licences should be available in Zimbabwe Long Run Incremental Cost (LRIC) which will be used for tariff determination. “We have already done some consultative workshops with various stakeholders including consumer groups, industry, operators and academia to come up with common positions on how the model should be developed, taking into account the various concerns of these stakeholders.”

Alfred Marisa’s priority is the end consumer, however. One of POTRAZ’ key functions is to monitor quality and make sure operators are offering acceptable and value for money services—and services that match the needs of the consumers whether in business or individually. “The regulatory environment we have created promotes innovation by our operators, always improving the service offering and encouraging them to introduce new services to the market. That is why we are encouraging our mobile operators to go into mobile broadband, expecting them to optimise their internet data offerings. The truth is that voice is already on the decline.

So for our operators to continue to cling on to that voice platform is not sustainable.”

For more information about POTRAZ visit: www.potraz.gov.zw

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Always moving

Boasting a national footprint in South Africa, with transp Town, Durban, Johannesburg and Tzaneen, Imperial Logi Services (ILRS) today exists as South Africa’s ‘first to mar

written by: Will Daynes research by: Candice Nice

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Imperial Logistics Refrigerated Services (ILRS)

ving forward

port depots in Cape istics Refrigerated rket’ service provider

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Imperial Logistics Refrigerated Services

F

ILRS is a part of the wider IMPERIAL Group

ormed in July 2010, following the consolidation of Fast ‘n Fresh, Liebentrans, Kobus Minnaar Transport and the broking division of Wilco Transport into one entity, ILRS was created specifically to package the service offering of Imperial Logistics Consumer Products for the temperature controlled FMCG market. This work requires the handling and transportation of time and temperature sensitive products, a task ILRS is able to expertly manage by providing an integrated, comprehensive service to its customers.

ILRS is a part of the wider IMPERIAL Group, a diversified industrial services and retail organisation, operating in Africa, Europe and Australia, and listed on the Johannesburg stock exchange. Run on a decentralised management structure that actively encourages innovation, entrepreneurship and the use of industry specific best practices, IMPERIAL employs more than 40,000 people around the world who it credits with responsibility for the growth and continued prosperity of the group.

By providing primary and secondary refrigerated transport services, tactical planning and detailed business analysis of current supply chains, ILRS has, in a short space of time, created a proven track record in successfully managing and maintaining the integrity of the cold chain. In addition to the company’s strict adherence to, and management of, service level agreements (SLAs) relating to time and temperature

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Imperial Logistics Refrigerated Services

ILRS has revolutionised South Africa’s refrigerated logistics market

sensitive perishable goods, ILRS’ operations are further supported by its flexible fleet of vehicles that provide it with the ability to upscale in order to handle work during the most demanding of peak periods.

Upon the company’s formation in 2010,

it put into action a new strategy for growth that has since gone on to revolutionise South Africa’s refrigerated logistics market.

This strategy saw the company introduce a fourth party logistics provider to its operations. Consisting of what is essentially

“ILRS has identified the next big area of growth to be the complete outsourcing of logistics services” be africa | 239

The next generation in transport refrigeration The new range SLXe reflects Thermo King’s depth of experience and expertise, from being pioneers to becoming leaders in the field of refrigerated transport.

Cutting edge technology optimises productivity by delivering low operating costs and maximum load protection.

The new SLXe brings significant innovations to maximise profitability while minimising environmental impact within a sustainable transport and delivery process.

GEA Refrigeration Technologies (Pty) Ltd. 19 Chain Avenue, Montague Gardens, 7441, RSA Phone: +27 21 555 9000, Fax: +27 551 4036 transport-sa@gea.com, www.gearefrigeration.co.za

engineering for a better world

GEA Refrigeration Technologies

Imperial Logistics Refrigerated Services

ILRS ensures that its vehicles are filled for their return journeys

a single office, the provider’s task is to match companies looking for transport with those that have said transport facilities and are

looking for commodities to move.

The use of this service has allowed ILRS to improve its return on investment ratios and ensure that its vehicles are filled for their return GEA Refrigeration journeys. Perhaps more GEA Refrigeration is proud to be associated with Imperial importantly, this service Logistics Refrigerated Services, who are one of the leaders has helped the company in the refrigerated transport industry. As a supplier of bu i ld even st ronger the Thermo King Refrigeration units to IL-RS, we have to increase our service levels and adapt to the high relationships with reliable benchmark IL-RS are setting in the market place. smaller operators. This in It is extremely important to understand your customer’s turn has resulted in ILRS business to be able to supply the correct product. The new being able to utilise the range SLXe reflects Thermo King’s depth of experience and services of these operators expertise, from being pioneers to becoming leaders in the without having to invest field of refrigerated transport. further in its own assets. www.gearefrigeration.co.za By taking a wider view

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SERCO AT THE FOREFRONT OF TECHNOLOGY

KEEP I

Durban: 031 508 1000 I JHB: 011 397 8993 I Cape Town: 021 959 7660 Email: info@serco.co.za I Website: www.serco.co.za

3

Supported by national manufacturing and after-sales repair service 36-month warranty.

COOL FOR

SPECIALIST MANUFACTURERS OF: Truck bodies and trailers that are relied upon by leading transport operators • Fibreglass dry freight and refrigerated vehicles offering superior strength and corrosion resistant panels • New generation ‘Super Reefer Lite’ which offers a substantial weight reduction

3

KEEP IN

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particularly interested in concepts available in this area.”

Other trends were aero dynamic packages to reduce fuel costs and carbon footprints; increasing use of electronic braking systems and telematics to improve route management, safety and maintenance control, and the installation of cameras or park distance controls to assist drivers with docking and reversing.

Back home, a major development for Serco was the purchase of 13.4 hectares of land in Johannesburg to accommodate future expansion.

Meanwhile, Serco has introduced an innovative fuel saving accessory for their semi-trailers in the form of innovative aerodynamic side skirts developed by Freightwing in the US, which can be fitted to trailers resulting in a fuel saving of between 4% and 6% and an accompanying reduction in carbon dioxide emissions. The accessory helps reduce wind drag under the trailer and is particularly suitable for long distance transport.

Holcroft says the lightweight flexible plastic panels have a smooth finish, providing an ideal surface for branding. “The side skirt concept is used in the United States where fuel savings of 7.45% were achieved. The under body skirts are designed to bend and bounce back from minor collisions; flexibility is important because the lower you get to the ground, the more fuel is saved.”

The Freightwing offered an attractive answer because it addressed green house gas emissions and fuel efficiency.

G

Serco aims to extend the positive trend in the transport industry into the New Year by introducing exciting new developments.

Serco MD Clinton Holcroft says by offering practical solutions and adding value to their customers’ business, they will continue to build stronger partnerships with clients. “With this in mind we visited the 2012 IAA Commercial Vehicle Show in Hanover earlier this year where the theme was Driving the Future.

We returned with several interesting solutions we look forward to presenting to our customers.

“Very evident was the high standard of the vehicles on show and the emphasis placed on energy efficiency,” said Holcroft. “Food safety in Europe is at an advanced stage and great care is required to ensure product is transported at the correct temperatures, making use of load dividers and telematic systems to keep track of this.

“South Africa’s legislation is very stringent, particularly the new Consumer Protection Act, which I believe makes it vital for transporters to have tight temperature control over the products going into their vehicles.”

Holcroft says another area of importance is load securing. “With an increasing number of our customers introducing trolleys, we were

Imperial Logistics Refrigerated Services

Fast ‘n Fresh became part of ILRS in 2010

of both the global logistics market and extremely well, delivering significant the rapid growth of that same sector efficiency and cost savings.

The particular model that ILRS has w it hin Sout her n A f rica, IL RS has developed i nc ludes identified the next big providing in-depth analysis area of growth to be the of the logistic requirements complete outsourcing of of its existing customers, logistics services. In the vast majority of developed based on the detailed countries, and an ever information provided by Employees of the i nc reasi ng number of the company in question IMPERIAL Group developing territories, this and ILRS’ own experience worldwide model already operates of current operational

40,000

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Imperial Logistics Refrigerated Services

ILRS has brought together different cultures and approaches

processes. The company has also been able to draw on the expertise of other divisions within the Imperial Group such as the Integration Services division, which has particular expertise in supply chain optimisation, and amalgamate all the

findings to devise a detailed total logistics offering.

As one of the first such proposals to appear in South Africa, perfecting this strategy has been a huge undertaking for ILRS, with the company drawing on

“Going forward, the plan is to continue with well-established customers where a relationship of trust has developed over a long period of time� be africa | 245

Imperial Logistics Refrigerated Services

Altech Netstar Fleet Solutions

The long standing relationship between Altech Netstar Fleet Solutions and the Imperial Group has evolved over many years. The diverse and customizable solutions and services provided by Altech Netstar Fleet Solutions to the Imperial Group and its equally diverse requirement for Fleet solutions has produced market leading technologies and service delivery. Altech Netstar Fleet Solutions is regarded as a high performance and innovative company priding itself in its ability to partner with leading organisations such as the Imperial Group. The Altech Netstar suite of products and solutions extends beyond conventional vehicle tracking, driver management and communication to include, workflow management, efficiency and optimisation management and reporting of fleets and in cab remote management. www.anfs.co.za

the theory and practice developed by world leading organisations such as Walmart, as well as the skills and knowledge of the Imperial Group.

Going forward, the plan is to continue with wellestabl ished c ustomers where a relationship of trust has developed over a long period of time, and then ultimately to take the concept out into the wider marketplace.

As a relatively new

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NEW ERA We provide a prompt, professional, and efficient service tailor made to the business needs of our clients.

Our Core Offerings • Payroll and Administration • Resourcing and Recruitment • Management • Staff Shuttling • Staff Development For more information visit us at www.newerar.co.za or www.neweratransport.co.za

Imperial Logistics Refrigerated Services company still, ILRS not only has an ambitious vision for the future, but it has also spent a considerable amount of time and effort aligning the four original companies into a single entity, managed from its head office in Cape Town.

Much of this work has involved the softer issues of bringing together the different cultures and approaches.

A longside t his t he company has tackled some

New Era Recruitment

In 1998, Brent Newton established New Era Recruitment with the intent to create a company that catered to the needs of its workers. The labour hire industry as a whole lacked outstanding service delivery, and Mr. Newton committed to changing that. After 14 years of exceptional service delivery, one could look back and agree that he accomplished his goal.

With phenomenal growth and development, New Era expanded nationally with offices in Gauteng and Kwazulu Natal. The general consensus amongst clients when asked about their experiences with New Era is that services are found to be efficient, reliable and consistent with staff ranging from management to administrator, all willing to go the extra mile. www.newerar.co.za | www.neweratransport.co.za

ILRS has an ambitious vision for the future

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Seen

Contact us today and put your company in the spotlight!

vincent@bus-ex.com ILRS invests in the latest vehicles

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Imperial Logistics Refrigerated Services

“Today, ILRS is a thriving business, boasting a long list of satisfied customers” of the basic structural integration issues by analysing the IT systems and operational requirements of the four original companies and drawing up a plan that will allow them to completely harmonise their processes and cultures while continuing to provide a top quality service.

More recently the company has invested in a fleet of vehicles that are the first trucks in South Africa to possess Euro V specification engines. Moves such as this are allowing ILRS to make an impact in ‘green logistics’ by leveraging a biofuel blend, zero emission refrigeration technology and biodegradable cleaning detergents.

Today, ILRS is a thriving business, boasting a long list of satisfied customers including the likes of Capespan, Dairybelle, Famous Brands, Freys Food Brands, Nestle South Africa and Rhodes Food Group. What makes this list all the more impressive is that it has been accumulated over the course of less than three years and is only likely to grow as time goes by.

For more information aboutImperial Logistics Refrigerated Services visit: www.imperial.co.za

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written by: John O’Hanlon research by: Abi Abagun RDA Zambia’s is juggling massive resources to deliver an ambitious road network that will enable the landlocked nation to export its goods and grow its economy

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RDA Zambia

BIA be africa | 253

8,201 kilometres of road will be built or upgraded over a period of five years

RDA Zambia

A

ccording to the Zambia Tourism Board this nation surrounded by eight neighbours has over 40,000 kilometres of roads, only 8,200 kilometres of them tarred and another 8,000 kilometres all weather gravel road. The rest are made of compressed laterite and vary in condition from reasonable to rather bad, being vulnerable to the seasonal rains. A recent review of the condition of urban roads revealed that 60 percent of the urban road network is in poor condition, but it’s the trunk network that has the greatest impact on Zambia’s economic development, and the road network plays a critical role in the development of the country and the region as a whole.

That’s why the RDA recently launched its Link Zambia 8000 road project, also known as the Accelerated National Roads Construction Programme. A total of 8,201 kilometres of roads will be built or upgraded over a period of five years at an estimated cost of K28.4 trillion. Link Zambia 8000 aims to connect Zambia’s population centres with those of its neighbours, create 24,000 jobs, especially for young people, grow local industries and contractors, cut travel times creating hubs of economic growth in outlying regions.

Angola, DRC, Tanzania, Malawi Zimbabwe, Botswana Namibia and Mozambique are all growing fast, so roads like the T4 or Great East Road, which links the capital Lusaka with the Mozambique port of Nicola are vital to trade and tourism alike. A key 360 kilometre section of this road between Luangwa Bridge and Mwami Border is taking priority for rehabilitation and upgrading as part of the Nacala Road

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A JOURNEY IN AFRICA TO ACHIEVE NEW BENCH MARKS IN QUALITY, SAFETY, OPERATIONAL EFFICIENCY & WORK ETHICS AMSL (African Mechanical and Superlift Ltd) has executed more than 20 successive projects in Zambia in connection with Smelter, Refinery and Tail Leaching plants as well as Annual Maintenance contract of Concentrator.

Our expertise are in Civil Works, Mechanical Equipment Erection (including tall & heavy equipment in single-piece), fabrication/erection of large scale piping, structural & large dia. Tanks.

Since 2009 AMSL have taken up Annual Plant operation maintenance contracts for units like Concentrator, Smelter, Tail Leaching Plant and other ancillary units eg. Sulfuric Acid plant,DM Water Plant,Oxygen plant,ETP etc almost on continuous basis.

PLOT NO:1867, P.O Box no.10939, Opp.Solwezi Road, Industrial Area, Chingola, Republic of Zambia.

Email.id: amslzambia@gmail.com amslconstruction@gmail.com Web site: www.amslafrica.com Land line: +260(212)2350973 Mobile: +260966170712/+260974776264

AMSL is working with international standards of Health, Safety, Environment and Quality requirements to client’s satisfaction.

AMSL is now confident and ready of offering following services: • Handling of EPC Contract • Large scale civil works • Large scale piping and structural steel work.

• Erection of process/mining equipment and material conveying system.

• Large dia storage tanks & tank farms.

• Annual plant Maintenance.

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Duis aute irure export trade the same Bank, the Agence Française consequat. irure dolor in reprehenderit This is aUnion. caption this is areduce caption accidents de Développement and theinEuropean time and Duis bringaute down the in reprehenderit voluptate velit esse The rehabilitation andcillum upgrading works are operating costsdolor for logistics companies in in dolore eu fugiat nulla pariatur. velit cillum fugiat being implemented in four separateExcepteur contracts. voluptate the region, all esse among thedolore RDA’s eu strategic sint cupidatat non proident, sunt nulla pariatur. Excepteur sint occaecat Goodoccaecat progress is being made with procurement objectives.

RDA ZAMBIA AFRICAN MECHANICAL AND SUPERLIFT LIMITED Established in 2008, African Mechanical and Superlift Limited (AMSL) is a mechanical engineering company operating in Zambia, Mozambique and South Africa. The AMSL team has vast practical experience and expertise in mechanical construction, mechanical maintenance and heavy equipment erection, providing a variety of solutions in accordance with international standards in health, safety, environment and quality.

Our management team has collective experience in the design, implementation and operation of mechanical engineering projects including the supply, fabrication and erection of structural steel, piping and tanks, and the mechanical maintenance of copper smelters, concentrators and refineries.

We undertake the annual maintenance of concentrators which involves dismantling,

overhauling heavy mechanical equipment such as the crush mill, ballmill, sagmill, conveyors, and flotation cells. We also have the annual maintenance contract for the new smelter at Nchanga, Africa’s first ‘Direct to blister technology’ smelter, including responsibility for the anode furnace, castwheel, compressors, slag granulation ponds, conveyors, boiler, sulphuric acid plant, pre and post water treatment plants with related pumps, blowers, copper tubes, duct, piping and equipment.

Our objectives are to focus on our clients’ needs with quality service and develop a long term partnership, maintaining a high degree of health, safety and environment cleanness at our job sites.

E. amslzambia@gmail.com E. amslconstruction@gmail.com www.amslafrica.com

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RDA Zambia

20 percent of all contracts goes to local Zambian owned contractors

On the other side of the country Zambia It is a condition of all contracts that 20 percent faces the DRC with its enormous economic of the work should go to local contractors – potential. A $207 million contract was signed that is, businesses that are majority owned by in December for the design and construction Zambians. The objective of this policy is to of a new road between Luwinga and Mansa, help build the construction sector in Zambia as a mere 100 kilometres from Lubumbashi. a whole, and reduce unemployment – however The contractor China Henan will be starting a key benefit will be the resulting transfer of work in the first quarter of 2013 and expects skills, and the stimulation of entrepreneurship to complete the work during making Zambia more self 2016. “The construction of reliant over time. the Mansa to Luwingu Road 2012 was a defining year will provide a shorter link in the six year history of the between Copperbelt and RDA, says Chiwala. Last year Luapula provinces,” says CEO the government of Zambia Bernard Chiwala and though allocated 17 percent of the the bulk of the work will be National Budget to the road carried out by international sector alone, the largest Target revenue from contractors, he promises that allocation given to any sector bond issue local contractors must benefit. in recent history. The total

$1.5

Billion

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China Henan International Cooperation Group Co. Ltd’s (CHICO) main business operation covers contracting international engineering projects, consulting service for international projects, international human resource cooperation and exchange, mining development, agriculture investment, undertaking infrastructural projects aided financially by Chinese Government in oversea countries apart from the involvement in information industry.

CHICO maintains and operates regional offices in over 20 countries and regions across Asia, Africa and Europe to service its vibrant business. www.c-chico.com/En

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roads budget for 2013 is around $600 million from the Zambian government with as much again being contributed by external agencies such as the EU, COMESA, the Development Bank of Southern Africa and international contributors like Saudi Arabia and Kuwait.

An increasing contribution comes from the road fund fuel levy. A road user charge tariff was introduced in the form of fuel levy from 1 May 1993. When it was identified that the deterioration of the road network in Zambia and the consequent loss of road asset value was caused by inadequate funding and poor management. In 2012 19 percent of expenditure on roads came from the fuel levy: in 2013 that rose to 27 percent.

Another source of funding is being promoted. The Road Development Agency

RDA Zambia

The RDA is focused on linking the more remote parts of Zambia

(RDA) plans to start building a toll-gate system across Zambia’s national road network by the end of the year, says Bernard Chiwala. He said the RDA expected to raise about 25 percent of its annual budget from the planned tolls.

“We have appointed a road tolling manager and in the next four months, they will begin to prepare for installation. We will install them on 17 selected sites which we have already identified.” The planning stage will be

completed by June, with construction starting in the second half of 2013, he says. And tolls will apply on the Great East road too, once the upgrade is finished.

The routes the RDA will initially focus on tolling are those linking Livingstone, the busiest tourist centre and Nakonde on the Tanzanian border. But many new projects will be subject to a similar funding model. A good example is the Kazungula Bridge project

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The RDA’s mission is to meet world standards

RDA Zambia linking Botswana and Zambia at a point now served by a pontoon. Under an agreement signed at the end of last year the $124 million project would be funded by the government of Japan through Japan International Development Cooperation (JICA), the African Development Bank and the government of Zambia. The project includes the construction of a new tolled road and railway bridge with one-stop border post facilities and access roads at Kazungula. It will take four years to build the 3,028-foot bridge,” said Chiwala. Tolling will address the added impact of trucks on the roads – commercial vehicles will pay proportionally more than cars, and these funds will go toward the maintenance of the roads.

Finally, the RDA plans to sell $1.5 billion of bonds by the end of this year. The agency has presented a plan for the sale to Finance Minister Alexander Chikwanda and approval is expected soon, said Bernard Chiwala: “Toward the second half of the year we will have concluded that,” he said. “It is our expectation that we will be able to raise about $1.5 billion” from international investors.” It’s a neat financial arrangement, with the security for the bond issue deriving from revenues from the road toll programme. Whatever the source of funds or the contracting model, the RDA will always keep sight of the goal, to promote the national interest of Zambia. “Better roads that meet world standards are what the people of Zambia want to see from this point going forward.”

For more information about RDA Zambia visit: www.rda.org.zm

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Eldo Coaches

GETTING ABOUT IN STYLE

Eldo Coaches has helped to keep Gauteng moving safely and efficiently for more than half a century: now it is making inroads into South Africa’s long-haul and tourist routes

written by: John O’Hanlon research by: Paul Bradley

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us transport could have been made for South Africa. Though it’s a big country with huge variety across its nine provinces, unlike many of its neighbours it has an excellent road network and one of the four major intercity bus lines travels to nearly every city and village. Not only is crosscountry bus travel in South Africa cheaper than flying but it is far more satisfying.

The Rainbow Nation’s landscape is as varied as its people.

Unfortunately a lot of misconceptions about South Africa persist, particularly where urban transport is concerned, and some of the very local bus operators, it is true, can help to perpetuate the image of overcrowded and unreliable buses, stripped of all comfort and carrying as many chattels as actual people.

Back in 1956, though, the Moola family set up a company with a different vision – to bring dignity and comfort to the travelling majority. In those days it was not easy for black people to set up a business and those that did succeed were tested to the limit.

Moolas Transport Services faced many challenges in an era that was dominated by the minority white population.

The company was the first wholly black owned operator to venture into the luxury coach market. Permit applications and financing were difficult to obtain at that time. However the company’s commitment and track record in taking their services to the people has enabled the company to grow continuously. Today it is a very different company from 57 years, when the founders Ahmed Moola and his brothers

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The company’s drivers undertake a week long training course with Scania before getting behind the wheel

Eldo Coaches

Deposita Systems is the leading South African developer and manufacturer of equipment and systems associated with the safeguarding, collection and processing of cash notes within the retail environment.The Deposita system registers each cash note deposited and reconciles each deposit transaction to an identifiable source using an automatic banking machine, the ABM.

No 1 Travertine Avenue N1 Business Park Kosmosdal Extention 7, Midrand Tel: +27 11 729 3300 Fax: 087 941 0598 www.deposita.co.za

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Eldo Coaches

Coach interior

Ismail and Mahomed were doing every job grown its fleet to 75 commuter buses and it in the operation, even driving the buses is an established contractor to the Gauteng themselves when required. Ahmed’s son Department of Transport.

Mohsin subsequently joined the firm and is Despite competition from low-cost operators for whom compliance is not a priority Eldo now Chief Operating Officer.

Eldo Coaches was set up to serve Coaches has stuck firmly to its principles of the majority of working people in the quality operation. The fleet is renewed on a five-year cycle with coaches Johannesburg area. This meant that in the early days it imported from Brazil – they was predominantly providing have Scania Chassis and a transport infrastructure bodies manufactured by to people commuting from leading coachbuilders such rural areas into the city areas as Marco Polo and other local The number of drivers whether to work or to shop. specialist firms. All vehicles employed by Eldo This division still operates are maintained and serviced Coaches today. The company has now

by Scania South Africa,

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which provides a round the clock roadside breakdown service throughout the country.

Tyres, a frequent cause of accidents if they are not maintained, are regularly inspected and replaced.

These levels of best practice are essential in the growing tourist market. As the company’s luxury coaches were increasingly hired by tour operators to show South Africa’s amazing scenery and attractions to visitors from overseas the decision was made to set up Eldo Tours as a separate division offering luxury travel to the tourist industry as well as smaller buses for shorter tours or as airport to hotel transport and even a fleet of chauffeur-driven Mercedes sedans much in demand by corporates and VIPs. You won’t find better facilities anywhere in the world. These coaches are all equipped with air conditioning, reclining seats, personal reading lights, DVD and audio entertainment and of course toilets. Safety will always be the priority, says Mohsin Moola, and added benefits from a modern well maintained fleet include fuel economy, reliability and that priceless item you can’t put on the balance sheet – a great reputation.

The best equipped coach is still only as safe as its driver. Passengers can further be reassured by the support Eldo Coaches gives its drivers.

The company’s 45 drivers are all experienced professionals; new recruits are carefully selected, and have to take a week long training course with Scania before getting behind the wheel.

Drivers and vehicles are constantly monitored in real time through a state of the art satellite system that can check any coach’s location and speed, and detect any poor driving practices like harsh braking or fast cornering. One of the biggest causes of coach accidents in the world

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Eldo Coaches

Part of the fleet

Coach facilities

is tiredness, and one of the chief cost cutting methods used by unscrupulous operators is making drivers work excessive hours. Not at Eldo Coaches, where working times are strictly monitored and enforced, and on shorter routes with only one driver on the bus, resting periods are de rigueur.

The current structure of Eldo Coaches comprises three divisions and we have already spoken about Eldo Tours. The Innercity division provides a ‘semi-lux’ service to Johannesburg and its suburbs under a licensed contract for Gauteng Department of Transport using its 75 buses.

The Intercity division has five luxury coaches that run a service between Johannesburg and Durban via Lenasia, Heidelburg, Harrismith, Estcourt and Pietermaritzburg. There are

several departures a day and this is a great alternative to air transport for business and private passengers alike, at a fifth of the price.

The 350 mile journey takes rather longer of course but the comfort of the coach provides an opportunity for rest or to catch up with reading or writing.

The strategic plan is to increase the number of intercity routes plied by Eldo Coaches.

Incumbent coach operators, not to mention airlines, should be on their guard if they are offering anything less than total safety, reliability and value for money.

For more information about Eldo Coaches visit: www.eldocoaches.co.za

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C potentia

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Coca-Cola Sabco

written by: Will Daynes research by: Abi Abagun

Country manager, Simon Everest, discusses the future al of the country and the company’s expansion plans

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Coca-Cola Sabco

W

The bottling line in action prior to being packaged

ith its famous white-on red logo, its seemingly endless list of 3,500 global products and it s phenomena l ly successful marketing campaigns, there are very few, if any, companies anywhere that can claim to be as well recognised throughout the world as Coca-Cola. From its beginnings in Atlanta, in 1886, the subsequent 127 years has seen the company reach the point where it today boasts a presence in more 200 countries.

One of these countries is Mozambique. It is here that Coca-Cola Sabco commenced operations in Maputo in 1994, at first employing 80 people. In the years that followed the company would go on to establish a second plant in Chimoio in 1997, with a third opening in Nampula in 2001. As of today the company employs close to 1,000 people.

“We have come an awful long way since we produced our first product in Maputo in May 1994,” states country director, Simon Everest, “but it has been in the last several years in particular that the market here has really begun to evolve. In a country where per capita income is less than $1,000, and most of the population live on subsistence levels, carbonated soft drinks have been regarded as very much a luxury item. Now as the country becomes wealthier, primarily due to the increase in mining and oil and gas operations, the products we produce become much more accessible to the masses.”

As Everest goes on to highlight, this increased wealth has not gone unnoticed

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Experts in Sugar and Biofuels Czarnikow is a sugar and ethanol trading, advisory and supply chain management firm.

Operating globally from offices across the world, Czarnikow has a reputation for high levels of client service and ethical standards throughout the supply chain and is renowned for its world-class market information and analysis.

For more information please visit www.czarnikow.com

A partner of Coca-Cola SABCO(Mozambique)

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Coca-Cola Sabco by a number of competitors, Czarnikow however Coca-Cola Sabco has Czarnikow is a sugar and ethanol trading, advisory and something very important supply chain management firm. on its side. “Where we really Czarnikow trades products globally from 12 offices and score is the fact that our employs around 190 people. Its registered headquarters distribution levels are second are in London and it has eleven other offices in Delhi, to none. Through the work Dubai, Guangzhou, Mexico, Moscow, Nairobi, Miami, Point Lisas (Trinidad), Sao Paulo, Singapore and Tel Aviv, of our three factories, our giving it a first-hand presence in all major sugar markets network of trucks and our around the world. mobile distribution centres Czarnikow is a service-orientated company whose main we are able to reach customers business activity is the trading of sugar and ethanol on across Mozambique. This is behalf of its clients. It also provides warehousing, logistics, without question one of major advisory and execution services. competitive advantages, that www.czarnikow.com and the fact that the CocaCola brands are recognised in all four corners of the world for their consistent quality.”

One of the company’s more recent product launches has seen it introduce the Minute Maid juice drink brand to Mozambique.

Launched in can form, it is hoped that Minute Maid will increase Coca-Cola Sabco’s share of the strong juice segment that forms a significant part of the non-alcoholic, readyto-drink beverage market.

While there are a number of other brands the company is looking to introduce at various stages of its development in the Head office country, its most pressing concern is to

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ensure that it has the capacity required to supply market demand for its core products.

The way it is doing this is through several major expansion projects.

“First and foremost,” Everest explains, “we have simply outgrown our factory in Maputo. What we have decided to do in order to rectify this is first by installing a brand new PET line, itself a $20 million undertaking, at our facility in Chimoio,

before constructing a brand new factory in Maputo. This new line will see its first product run off in October 2013. Apart from helping us tap further into an area of the country that is becoming a hub for mining, this new line will also provide us with the ability to enter into the water category.”

As the economy of the country develops, Coca-Cola Sabco believes the first thing its inhabitants will want is a water brand

“Coca-Cola Sabco devotes a significant amount of time and effort to various social and community based project”

Fresh bottles ready to be filled and capped

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Coca-Cola Sabco

Inside the warehouse

that they can trust. “The ultimately have sufficient water segment at present,” space in which to house seven Everest says, “is highly lines, this site will initially fragmented, with three be home to two returnable regional players and several glass lines and one PET line.

The year that Coca-Cola smaller bottlers all with The current Maputo PET line commenced operations various quality standards in will be moved to Nampula, in Maputo existence. What we believe thus with the creation of this is that there is now room in facility Coca-Cola Sabco will this market for a national have PET lines established water player and that is what we intend and operational in each of its manufacturing to be once we launch our BonAqua brand units across the country.

As is the case in the majority of the markets in September of this year.”

The second phase of the company’s that the company is present in, Coca-Cola expansion sees it in the process of building Sabco devotes a significant amount of time a 21 hectare greenfield site in Matola Gar, and effort to various social and community on the outskirts of Maputo. While it will based projects, including the redevelopment

1994

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“The fact that we are investing $140 million here over the next three years truly demonstrates Coca-Cola’s commitment and belief in Mozambique” of medical clinics and local schools. CocaCola’s track record in this field led to it being approached by the Clinton Foundation to assist in its distribution of HIV medication throughout Mozambique.

One area that also deserves to be highlighted is the work that the company

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does to establish business opportunities for local people. It does this by setting up individuals with their own vending boxes and a certain amount of core product that they then sell. “We have had some really positive success stories come out of this initiative,” Everest enthuses. “At present

Coca-Cola Sabco

Exterior view of the plant

we tend to focus on women. This approach forms part Coca-Cola’s five-by-twenty programme that aims to empower five million women by 2020 and has already proven very successful in Mozambique.”

When Everest came into the business two years ago, his primary concern was to ensure that Coca-Cola Sabco was able to get its future capacity right. Now, with the aforementioned expansion projects underway, he is confident that by the end of 2015 the business will be in a very good place indeed.

“I think,” Everest concludes, “the very fact that we are investing $140 million here over the next three years truly

demonstrates Coca-Cola’s commitment and belief in Mozambique. Having had a business established in the country for 20 years now we understand the marketplace and have built a strong reputation for ourselves. Now as the country becomes wealthier I feel there is a great future for our products here. Certainly there are many worse places to be and I for one feel truly blessed to be a part of what we are doing in Mozambique.”

For more information about Coca-Cola Sabco visit: www.cocacolasabco.com

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The Red Meat Abattoir Association

Meat standards A membership organization for the abattoir industry in South Africa, dedicated to best practice in the interests of consumer safety as well as the profitability of its members

written by: Martin Ashcroft research by: Paul Bradley

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The Association aims to improve hygienic practices

The Red Meat Abattoir Association

T

he conversion of livestock into This led to a need for current up to date safe and wholesome meat in price information, so the RMAA introduced South Africa is a complex process an information system containing current that is regulated mainly by the and historical data for planning and Meat Safety Act, 2000. Anyone development purposes, the prime objective who is squeamish can switch off now, being to provide accurate and valid because the process is known in the industry information for the benefit of the South as slaughtering and takes place in an abattoir, African abattoir industry. To ensure a fair an industrial facility designed specifically for representation of the information the RMAA the purpose of killing animals. The structural therefore requires the abattoir owner to requirements of abattoirs in South Africa are commit to submitting its price information addressed in the Act according to their status on a weekly basis so that a weekly report as high, low or rural throughput facilities. can be released to all members.

If you are still with me, there are currently The Association is also an accredited around 500 abattoirs in training provider in the industry and during the past South Africa slaughtering 2.3 million cattle, 2.4 million year has provided training pigs and 5.5 million sheep to 3736 abattoir workers in on an annual basis, so it’s a fields ranging from basic major industry, and one that slaughter skills to food safety The Red Meat Abattoir requires careful inspection, management programmes.

Association established The RMAA assists abattoirs monitoring and training to increase profits, safety and to ensure compliance with health, safety and other relevant regulations. quality, and minimise losses by evaluation The Red Meat Abattoir Association (RMAA) and identification of non-compliances, was established in 1991 as an independent corrective training and recommendations on membership-based organization to promote operational processes. meat safety and to maintain standards in The objective of the industry is for animals the abattoir industry. Abattoirs are required to be converted into edible products by to undergo independent meat inspection, slaughtering them in a humane manner and and this is one of the services offered by the by processing the carcass and organs in a Association, which has over 180 members hygienic and efficient way. The slaughter currently, although it continues to recruit new process includes de-hiding and evisceration, members among the smaller abattoir sector. so with cattle and sheep it involves skinning The abattoir industry once comprised procedures, and in the case of pigs, de-hairing. mainly large high throughput abattoirs, but Slaughter technique training is provided the number of smaller operations has risen to member abattoirs according to a monthly dramatically since deregulation in 1994. programme. The abattoir’s slaughter practices

1991

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A b of M at the em to R b ir ed er As M so e cia at tio n

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The Red Meat Abattoir Association

By following current best practice, abattoirs can produce high quality safe meat

are evaluated and compared with the standard recorded for each worker at their respective best practice slaughter procedures, as regularly work station and a routine slaughter training updated by the Association. Deviations are report is forwarded to management after recorded and corrective training is provided completion of the training. by experienced training teams.

One of the RMAA’s main messages is The Association’s main aims are to improve that continuous washing and sterilising of hygienic practices, reduce contamination, equipment during the slaughter process is reduce damage to the carcass, skin and essential to avoid contamination of the meat. organs, enhance ergonomics and speed of By following current best practice slaughter processing, and improve the techniques, abattoirs can use of personnel. Training produce high quality safe is always conducted by first meat, which is the main of objective of the Association. demonstrating the correct and/or best procedure, then An RMAA audit will evaluating the operator examine the effectiveness conducting the procedure and of line layout, including the Abattoir workers conducting a re-demonstration time taken at each work trained last year if necessary. Competency is station and the workload

3736

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of each slaughter operator, to ensure that the workload is spread evenly and that the line runs at an even speed without holdups. Bottleneck situations lead to loss of production time, exhaustion of some workers and ineffective use of others. If this is found to be the case, redistribution of functions on the line are suggested to ensure the optimal use of each worker.

Carcass yield is another important factor.

Inhumane animal handling can lead to

unnecessary and incorrect trimming, and incorrect slaughter techniques and theft are also reasons for loss of carcass weight. An investigation into the live weight compared to warm weight is made to determine if unnecessary weight is lost. If the investigation indicates that the yield is too low a further evaluation is made to determine where unnecessary weight loss occurs, and corrective actions can then be implemented.

Hides and skins lose value when they are

“The abattoir’s slaughter practices are evaluated and compared with the standard best practice slaughter procedures�

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The Red Meat Abattoir Association

Training is always conducted by first demonstrating the correct procedure

damaged, too. Often damage occurs due to incorrect slaughter techniques, ineffective equipment, carelessness, etc. An investigation that starts at the hides and skins room indicates the amount of damage as well as the areas where damage mostly occurs. The causes of the damage can then be determined and corrective training can be conducted.

Offal rooms are also a point of concern during audits. The RMAA believes that offal rooms deserve the same attention as the rest of the slaughter floor as these products also reach the consumer market. Operators in these areas are often neglected in terms of training and the condition of the facilities can also compromise hygienic practices. The Association’s evaluation and training is aimed at improving the offal handling environment.

The maintenance of equipment is another

focus of audit inspections. Improperly maintained equipment can cause serious health hazards including contamination and pest infestation, but is also a threat to the efficient operation of the abattoir through wastage, unsafe situations, and additional expenditure in cleaning. A thorough evaluation of equipment and structures highlights any problem areas and may save the abattoir future losses due to poor maintenance, as well as ensuring compliance with health and safety regulations.

If you’re eating a steak in South Africa today, you know it’s going to be good!

For more information about The Red Meat Abattoir Association visit: www.rvav.co.za

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To find out how to get involved contact: vincent@bus-ex.com