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ACHIEVING BUSINESS EXCELLENCE ONLINE INCLUDING

offshore marine management: rio tinto kennecott:

MONTHLY EDITION March 2014

aveng trident steel:

barrick gold: pueblo viejo mine

Revitalising a region SERVINCA helps production at the biggest single investment in the history of the Dominican Republic

HERE’S WHY ONTARIO, CANADA

IS YOUR NEXT

BIG IDEA Opportunities for mineral exploration in Ontario abound. Powered by global leaders in innovation and safety standards, our mining practices are among the safest and most sustainable in the world.

With business costs lower here than in most G7 countries, Ontario suppliers are more competitive – so you can depend on quality goods and services, delivered on time, on spec and on budget. Innovation is at our core. Make Ontario your next big idea.

YourNextBigIdea.ca/Mining

$2.9B

in non-metallic minerals, including diamonds, was produced in Ontario in 2012

$2.6B in gold

$1.5B in copper

$1.4B in nickel

$787M

in other metals such as platinum and silver

Paid for by the Government of Ontario.

business excellence

Business John O’Hanlon Editor johanlon@bus-ex.com Will Daynes Editor wdaynes@bus-ex.com Matt Johnson Art Director mjohnson@bus-ex.com Louise Culling Production Designer lculling@bus-ex.com Richard Turner Director of Sales rturner@bus-ex.com Vince Kielty Director of Editorial Research vkielty@bus-ex.com

Business Excellence brings you content from leading business influencers and strategic thinkers providing inspiration and guidance to help you and your business grow.

We showcase some of the best examples of successful organisations from around the world giving you a unique insight into how they operate.

Sharon Rooke Administration & Operations srooke@bus-ex.com Matt Day Head of Technology mday@bus-ex.com Andy Turner Chief Executive aturner@bus-ex.com

Contributors George F. Brown, Jr. Consultant & Author

HINT: For the best experience, click the fullscreen icon

Esther McMorris Nine Feet Tall

Subscriptions & Enquires info@bus-ex.com

Jacquard House, Queen Street, Norwich, NR2 4SX. England

Infinity Business Media Ltd

The content of this magazine is copyright of Infinity Business Media Ltd. Redistribution or reproduction of any content is prohibited. Š Copyright 2014 Infinity Business Media Ltd.

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features

8 strategy

Signs of a Good Solution If a solutions strategy can enable a firm to stand out from its competitors the payoff can be considerable.

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14 strategy

Right To The Top: Practical Project Management Advice For The C-Suite As technology continues to improve, collaboration is driving executives together in ways never witnessed before.

20 top ten

strategic infrastructure projects

A run-through of outstanding and game-changing projects from around the world.

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contents

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72

mining & minerals: 26 Barrick Gold: Pueblo Viejo Mine Revitalising a region

The biggest single investment in the history of the Dominican Republic continues to break new ground as it begins to realise its potential.

72 Gem Diamonds

Diamond in the rough

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Through the continued success of its Letšeng and Ghaghoo mines, Gem Diamonds remains one of leading global producers of high value and rare diamonds.

82 Rio Tinto Kennecott

Creating a community from copper How Rio Tinto Kennecott has utilised the vast wealth of the Bingham Canyon Mine to create a thriving, sustainable community.

96 bfl canada

ore - and more ore

You don’t go into mining if you want to live a risk free life but effective risk identification and management are essential to survival. BFL CANADA’s new ORE service offers a way to turn uncertainty into an asset.

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business showcases

106

Transport & logistics: 106 American General Supplies ( AGS)

Keeping you flying

By always striving to meet its customers’ needs American General Supplies (AGS) has become one of the most respected spare parts suppliers to the commercial aviation industry.

manufacturing:

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114 Aveng Trident Steel

The backbone of industry

Steel is vital to construction, mining, manufacturing and so much more: Africa Aveng Trident Steel, now a part of Aveng Steel, is established as South Africa’s go-to partner for steel products and services of all kinds.

130 Kansai Plascon

Green is not just a colour

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Kansai Plascon (Pty) Ltd. produces paints for every imaginable application - a long term player and already the market leader in South Africa it faces a bright future in alliance with its Japanese parent company.

Infrastructure: 138 Ciudad Empresarial

Creating quality of life

Home to hundreds of companies and thousands of residents, Ciudad Empresarial is the largest business park in Chile and one committed to providing an excellent quality of life for everyone.

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contents

oil & gas: 148 Offshore Marine Management (OMM) Made to measure solutions

Offshore Marine Management (OMM) has carved out a reputation for expertise and operational excellence in several industries, one of which being the oil and gas sector.

148 156

156 Petroleum Corporation of Jamaica ( PCJ) Securing Jamaica’s future

The Petroleum Corporation of Jamaica (PCJ) is helping to secure the long-term sustainable development of the Caribbean island.

telecoms: 166 Blue Sky

Sky’s the limit

We spoke to founder and CEO Pedro Camacho about the company, its markets, and its vision for the future.

food & drink: 176 Spur Steak Ranches

Serving up an experience

Spur’s commitment to delivering customer satisfaction and its efforts to improve the lives of local communities befit a brand that has become a South African institution.

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190 wagstaff crane

the best hooks in town BE Monthly

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Strategy

Signs of a Good Solution If a solutions strategy can enable a firm to stand out from its competitors the payoff can be considerable Words by

George F. Brown, Jr.

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W

e’ve all been in settings over the years, from locker rooms to auto plants in China, in which motivational signs were prominently displayed to ensure that key lessons were not forgotten. Even while watching Pawn Stars on television recently, an episode showed signs featuring the Old Man’s aphorisms like “Do something for God and country and get back to work.” For firms looking to elevate their position with customers through a solutions offer, a useful sign in the conference room might be drawn from an observation once made by Malcolm Forbes: “It’s so much easier to suggest solutions when you don’t know too much about the problem.”

The importance of understanding the problem could not have been more clearly emphasized by customers describing successful – and unsuccessful – attempts on the part of their suppliers to create value through a solutions offer. Comments made during interviews on this topic ranged from the good (“Sometimes I think they understand our company and our problems better than we do ourselves”) to the bad (“Maybe some engineer thought this was a good idea, but they could have saved a lot of money had they asked us first”) to the ugly (“After I listened to that presentation, I decided it was time to look for a new supplier”).

This message is of considerable importance, since in recent years, “solutions” have become a core element of the strategy through which firms create value and differentiate themselves from competitors. Many firms, finding little headroom for growth with their current business model, look to move into a larger available market space by expanding their offering to include more products (typically adjacent ones) and services (typically complementing and/ or connecting those products).

In addition, it is frequently the case that the migration to a solutions offering allows a supplier to escape from the process of commoditization – a situation that many manufacturers have faced as global competitors become increasingly able to deliver similar-quality products at lower and lower prices. Complementary services may be the element of many projects that can’t suffer the same fate, and a solutions strategy that brings higher value to the customer can protect the legacy product base and allow expansion in adjacent service businesses.

The first element of a sound solutions strategy is the need to understand your customer and its business environment, perhaps even better than they understand it themselves, as the first comment above suggested. After all, if the value creation opportunity associated with the solutions

“Many firms, finding little headroom for growth with their current business model, look to move into a larger available market space by expanding their offering to include more products and services” 10 |

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“The most significant solutions success stories are ones that involved a supplier seeing a new and different way of doing things” offer was obvious, the customer would have either implemented it themselves or put out an RFP to attract a supplier capable of doing so. The most significant solutions success stories are ones that involved a supplier seeing a new and different way of doing things. But if a solutions concept demonstrates that you don’t understand the problem in the way that it is seen by the customer, it is going to fall flat on its face.

One supplier in the telecommunications industry had a very strong position with its equipment products, and looked to expand into life-cycle services associated with maintenance and repair, an offering that had historically been provided by independent contractors without any real connection to this equipment manufacturer.

This firm recognized that it would take innovative thinking to win in the services business, requiring an approach that in some way was “better and faster” without too much of a compromise in terms of the cost of those services. It revisited its product strategy, and identified ways in which it could incorporate monitoring capabilities into the equipment that would both signal exactly what maintenance was needed and also shift some instances of corrective maintenance to a less-disruptive and less-costly preventive mode. This solutions offer thus integrated product and service elements in a meaningful way, one that yielded value for customers along “better and faster” dimensions that were

important to its customers. And, in the end, this innovative solution allowed this supplier to make a case that their approach was in fact cheaper from an all-in life-cycle cost perspective.

This firm’s familiarity with their customers and their operating environment enabled them to spot the elements of a solutions offer that would resonate.

They understood service challenges, particularly those that existed in remote areas where second visits were very costly, and they understood the enormous cost of downtime caused by product failures or delayed repairs. Their solutions offer enabled them to succeed in the service business because it addressed two real problems faced by their customers.

An executive from a packaging industry firm returned from a customer visit reflecting on the fact that the customer operated two entirely separate packaging processes in the factory that he had visited. One process involved the primary packaging that was associated with the eventual use of the product. The second process involved the packaging associated with merchandising and shelf display. He returned from that visit with the vision of a solution that might yield significant cost savings for this customer if the two processes could be combined into one. His firm’s design team subsequently developed packaging that allowed the merchandising challenges could be met

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by an evolved version of the primary packaging, thereby eliminating the need for secondary packaging entirely. In a subsequent interview with an executive in the customer organization, I heard the following comment: “Sometimes you don’t look at your own operations and see the potential for change. We had always done it the way we were doing it, and it took [the visit from the supplier’s executive] to see that there was an alternative.”

Both of these success stories involved a supplier that brought a solution to a problem (or opportunity) that customers didn’t know that they had – but recognized when it was brought to their attention.

The litmus test of whether a solutions concept will be recognized and accepted is whether it creates previously undetected opportunities for value creation for your customer. If it does, it has the potential for acceptance. And it takes a serious investment in the customer relationship to build the knowledge base from which a supplier can identify unspotted opportunities for value creation.

Such insights don’t just happen. They are typically the product of a carefully planned set of interactions between a supplier and its customers, involving ongoing investments in these relationships.

“We had always done it the way we were doing it, and it took the visit from the supplier’s executive to see that there was an alternative” 12 |

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Efforts are made to ensure that discussions are future-focused, oriented to ensure that the supplier learns what is keeping the customer’s executive awake at night.

Attention is given to changes taking place in the customer’s business environment, along dimensions that range from regulation to technology to competition.

Such interactions aren’t limited to the account team working with the customer.

Rather, they involve functional experts in the many specialties relevant to the relationship. Suppliers that are successful in knowing their customers better than they know themselves are proactive, often reaching out to customers with an idea or an insight gained in another part of their business. Being future-focused, emphasizing what is new, involving numerous people and business functions in the relationship, and being proactive are signs of a firm that has the potential to successfully spot solutions opportunities.

There was a second message about solutions that also deserves a sign in the conference room, perhaps drawn from the observation by Woodrow Wilson that “If you want to make enemies, try to change something.” In reflecting on solutions concepts that their suppliers had brought to them, many executives made remarks such as “It was a good idea, but not a good idea for my company” and “We have too much on our plate to buy into another major change, even if the idea has merit on its own”.

Most businesses in recent years have become acutely aware of the challenges of making changes to their business model or to their operations. Change itself is costly, and demanding upon a firm’s

Strategy

leadership and resources. One executive with whom I’ve worked recently decreed a “one change at a time” philosophy, requiring that other good ideas be put on the shelf if they were going to compete for attention with a change already approved and underway. Whether one change is the right limit probably depends on the organization, but almost everyone would agree that too many changes going on at once is a prescription for failure.

This second message defines another dimension along which understanding customers and their business environment is critical. Some solutions are going to fit in naturally, without disruption. The telecommunications firm that implemented a services solution did not impose much in the way of change on its customers. From the customers’ perspective, it was close to business as usual, with the benefits of streamlined service and fewer disruptions.

On the other hand, the customer of the packaging firm described above viewed the change as a major one, and in fact delayed implementation while it went through a process of validating that the supplier had the right competencies to work with them on merchandising and display.

While the challenge of understanding

“While the challenge of understanding customers better than they understand themselves is a major one, there are very good reasons for considering solutions strategies” customers better than they understand themselves is a major one, there are very good reasons for considering solutions strategies. If a solutions strategy can move a firm from a narrow product or service niche to a position of relevance for much or all of the overall customer spend, that can lead to significant growth in both the size of the available market and margins.

And if a solutions strategy can enable a firm to stand out from its competitors in terms of the value that is delivered, the payoff not only involves current sales and profits, but also long-term relationships.

Remembering the signs that customers use to point the way to a successful solutions strategy can become the route to solutions success stories.

About the author George F. Brown, Jr. consults with industrial firms on growth strategy through his firm B-to-B Advisors, Inc. He is the coauthor of CoDestiny: Overcome Your Growth Challenges by Helping Your Customers Overcome Theirs and the cofounder of and a Senior Advisor to Blue Canyon Partners, Inc., which he served as CEO for fifteen years. George has published frequently on topics relating to strategy in business markets, including articles in Industry Week, Industrial Distribution, Chief Executive, Business Excellence, Employment Relations Today, iP Frontline, Industrial Engineer, Industry Today, and many others. gfb@BtoBAdvisors.com

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Strategy

Right to the top:

Practical Project Management Advice For The C-Suite As technology continues to improve, departmental fragmentation is being reduced: specialism is critical for business success but increased collaboration is driving executives together in ways never witnessed before Words by

Esther McMorris

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Strategy

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hichever side of the C-Suite you look at, senior management is seeing its isolation ebbing away.

This is a positive development. It creates a more agile business that can maintain its competitive advantage in the face of a quickly shifting marketplace.

The CFO can no longer ignore the CIO. They must work together on transformative projects to ensure return on investment and long-term value. COOs and heads of HR need to unite across change projects, otherwise new processes and procedures fall on deaf ears and impact staff morale.

Broadening skillsets and new challenges have placed senior management in a realm crucial for business advancement; Project Management.

Better Understanding Project management knowledge is now vital for everyone, especially as senior executives hold the budgetary and operational keys to success. They are often the main stakeholders or if not, they know who to influence to drive project success.

Lower management usually limits the C-Suite to final approval on projects (often at C-Level request), but the demand for better results, greater corporate accountability and general financial prudence means a greater number of

senior executives are involving themselves in projects from an earlier stage.

To ensure a smooth process, clear planning should occur from the outset.

Put an achievable strategy in place, outline the key objectives and explain what needs to be done by whom.

This applies to every project, whether bringing a new product to market, a fresh marketing strategy, a transformative HR change or improving IT. Two Way Communication If the roadmap seems overly complicated, it probably is. Never block constructive suggestions. It helps highlight areas of concern, especially for individuals suffering from over-exposure/project familiarity.

Project Managers should bear in mind that C-Level stakeholders might have had less exposure to day-today project management and actually need reverse management.

The C-Level should be open to this.

They need to give project leaders space to work and trust their judgment. Too much involvement can cause dissatisfaction to fester, which harms staff relationships and the project’s long-term success.

Put in place regular dialogue sessions so concerns are raised and communicate this progress throughout the organisation.

Having C-Level vocalisation behind a project can actually give it greater internal

“COOs and heads of HR need to unite across change projects, otherwise new processes and procedures fall on deaf ears and impact staff morale�

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strength and relaying advancements will always keep momentum up between staff.

C-Level stakeholder involvement, if handled in the right manner, is very welcome.

The Right Strategies For those unfamiliar with project management strategies, there are five key stages for guaranteeing success: 1. Project Definition 2. Hatching The Plan 3. Maintaining Control 4. Delivery 5. Long-Term Lessons/Results Define The Project Begin by defining the project’s scope, analyse the available resources and

“Benefits have to be realistic, measureable and classifiable otherwise return on investment will appear unachievable� potential costs, identify possible risks and then build a business case that will guarantee commitment from relevant stakeholders.

Benefits have to be realistic, measureable and classifiable otherwise return on investment will appear unachievable. These are classified in four ways; direct monetary benefits; direct non-monetary benefits (improved KPI performance, better customer support); indirect benefits like reputational enhancement or improved staff morale; and dis-benefits i.e. what will happen if the project does not take place.

Hatch The Plan Next carefully balance development time and the available resources against quality constraints and management involvement. Schedule time within the plan for review periods so feedback can be provided and concerns aired.

Consider creating a critical path, a mapping of the longest route through all dependent activities. This prepares staff and the C-Suite for possible complications and establishes realistic timescales to keep to. The same applies to risks. Calculate their probability and what their potential impacts are. Focus on squashing critical time-sensitive

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concerns while monitoring those that are less disruptive, but still possible.

Maintaining Control This is a key area for the C-Suite. Project managers should re-communicate the project’s roadmap to everyone involved and then share progress at significant points.

Stagger feedback so individuals never feel overloaded. When communicating progress, ensure people actually take it onboard. Updating stakeholders is not the same as them actually understanding the information. Ensure people know what is being communicated, rather than just speaking at them.

Finally implement a clear change process. This ensures input is actually absorbed and actioned to those in charge.

It also means those giving feedback feel like their advice is having a positive impact on the project.

Delivering The Results There are five different launch options, each with their own benefits and business alignments – standard pilot, phased rollout, parallel running, hot changeover or a ‘big bang’ launch – and outline which is relevant for the business and project during the planning stage.

Never rush it. Finish any pre-launch testing (general testing should occur throughout the project to make sure the majority of issues have been dealt

“Finish any pre-launch testing and conduct business simulation before pressing the green light” with) and conduct business simulation before pressing the green light.

Sustainability If effectively planned and managed, the project will achieve success, but even post-launch there are areas to address to guarantee the success of future projects.

Clearly highlight what went well and what could have been better.

Reflect on failure objectively and without assigning personal blame. This is important for staff morale and for ongoing management relationships.

Conversely, celebrate success but always strive for better performance.

Offer training for problem areas and discuss long-term project objectives to prevent them from being forgotten.

If these steps are followed, a business will experience greater resource and budgetary control during implementation, faster development, higher quality, which means stronger customer relations once delivered, and an overall reduction in costs.

About the author Esther McMorris is founder and director of Nine Feet Tall, experts in business transformation and leaders in delivering positive change. If you need more advice, why not read The Little Book of Project Management from Nine Feet Tall www.ninefeettall.com/insight/little-book-project-management

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top ten

strategic infrastructure projects A run-through of outstanding and game-changing projects from around the world Edited by: John O’Hanlon

I

n February, the 7th Global Infrastructure leadership Forum in New York brought together key project developers and global infrastructure decision-makers. Event organisers CG/LA Infrastructure have put together its Strategic Top 100 list identifying and highlighting the best infrastructure projects in the world. Projects are divided into ten categories: we have selected the highest value project from each, leaving out those at the concept stage (for example, at $78 billion the proposed Thames Estuary Hub Airport would otherwise have been included, however no decision has yet been taken as to which solution for increasing London’s airport capacity will be chosen) and focusing on those already underway or with a realistic prospect of being started in the coming twelve months. >>>

Top Ten

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New Doha Port

Country: Qatar Sector: Ports & Logistics Sponsor: New Port Project Steering Committee Stage: Under construction Value: $8.2 billion

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8

Canakkate Suspension Bridge

Energy East Pipeline

Country: USA Sector: Highways & Bridges Sponsor: Texas DOT Stage: Construction/procurement Value: $9.7 billion

Country: Canada Sector: Oil & Gas Sponsor: TransCanada Corp Stage: Construction delayed Value: $12 billion

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infrastructure projects 7

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Fully Automated Driverless Metro, Downtown Line - Stage 3

Gujarat International Finance Tec-City

Country: Singapore Sector: Rail-Light Sponsor: Land Transport Authority Stage: Under construction until 2030 Value: $12 billion

Country: India Sector: Urban Planning Sponsor: Gujarat International Finance Tec-City Company Limited Stage: Under construction Value: $20 billion

5 Mecca and Medina Railway Stations of the Haramain High Speed Rail Project Country: Saudi Arabia Sector: Rail-High Speed Sponsor: Yapi Merkezi-Saudi Bin Ladin Group Consortium Saudi Railway Organization Stage: Under construction Value: $16.1 billion

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Top Ten 4

3

Sinop Nuclear Power Plant

Dubai World Airport

Country: Turkey Sector: Electricity Sponsor: The ministry of Energy and Natural Resources (Areva & Mitsubishi Heavy Industries) Stage: Construction to begin 2017 Value: $22 billion

Country: UAE Sector: Airport Sponsor: Dubai’s Department of Civil Aviation Stage: Under construction Value: $33 billion

2 Doha Metro Country: Qatar Sector: Rail-Heavy Sponsor: Qatar Railway Development Company Stage: Ongoing/Multiphase Value: $36 billion

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infrastructure projects

1 South-to-North Water Diversion Project - Phase I Country: China Sector: Water & Wastewater Sponsor: Chinese Government Stage: Under construction until 2022 Value: $58 billion

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barrick gold: pueblo viejo

Revitalising a region The Barrick Pueblo Viejo gold mining complex remains the biggest single investment in the history of the Dominican Republic and continues to break new ground as it begins to realise its potential

written by: Will Daynes research by: Vince Kielty

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barrick gold: pueblo viejo

F

or many years tourism and agriculture have been the traditional drivers of economic growth for the Dominican Republic. However in more recent times a third pillar has been slowly emerging and developing and that is mining. Today the sector is a cornerstone of the country’s economic prosperity, with the mining industry’s contribution to its GDP rising by as much as 74 percent in 2011 alone.

Located approximately 100 kilometres northwest of the capital city of Santo Domingo, the Pueblo Viejo mine represents one of its most significant investments to date and the largest foreign investment in Dominican Republic history, with mine construction capital of approximately $3.8 billion. With declared reserves of 23.7 million ounces of gold, Pueblo Viejo holds by far the richest deposits of gold ever identified in the country. The site, which is a sulphidic refractory gold deposit, is currently being developed to a 24,000 tonne-per-day design capacity.

The mine comprises two major oxide deposits known as Monte Negro and Moore, and three other small deposits. Moore is the largest deposit and is separated from Monte Negro by 500 metres of barren mud-stones.

The mine had been in production since 1975. It was operated by the state-owned mining company Rosario Dominicana. The mine had produced more than five million ounces (moz) of gold and 22moz of silver in its operational life. The mining operations had to be halted, however, in 1991 due to low gold and silver prices and a lack of

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We are a company dedicated to the Engineering procurement and construction of projects, with a wide expertise that covers the most important sectors of the construction industries, such as Mining, Energy and Infrastructures.

SERVINCA was founded on December 29th, 1979, at its headquarters located at Santo Domingo; Dominican Republic.

During 33 years of experience our professionals have specialized in developing projects covering a wide range of disciplines,, such as Electrical Power generation, transmission and distribution networks, Steel Infrastructures, Mechanical & Industrial Installation. Piping and Civil works, including Engineering, Management, Procurement and Construction.

K136 Project, PVDC Pueblo Viejo, Dom. Rep.

“SERVINCA have reached a total of 1,200,000 man hours without lost time incident PVDC BARRICK”

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DOMINICAN REPUBLIC PVDC GOLD MINE Cotuí Santo Domingo SERVINCA OFFICE

Award nomination for energy industry CADOCON, PVDC BARRICK, Dominican Republic

SERVINCA Headquarter – No. 737, Francisco Prats Ramírez, st, El Millón, Sto. Dgo., Dominican Republic.

Phone: (809) 363-0928 / 0925 / 0926 | Fax: (809) 363-0570

Engineering & Construction Services Our vast experience has become to be the best solution for the development of sustainable projects, with a large availability of professionals in all applicable Engineering areas, such as Civil, Electrical, Hydraulics and Mechanical, assuring full compliance to our customer by delivering quality and costs efficient products.

SERVINCA was selected as the best company of the year in row energy industry for three consecutive terms (2002-2012) by the Dominican Chamber of Construction (CADOCON), catapulting Servinca well as the leader in energy and other areas of engineering in the Dominican Republic.

Business Philosophy Our major commitment is to comply with the highest quality standards, ensuring the safety of our workers and the environment with a strict scheduling plan for the on time delivery of our projects.

The good results obtained in the Engineering, Procurement, Management and Construction of large projects are resultant products of our own integrated management system, implemented by a specialized organization structure oriented to results that fulfills and supersede the client´s expectations.

“Our quality System is implemented and adjusted to each project to meet the best Engineering practices, followed by a strict Occupational safety and environmental plans carried by our Professional staff, whose experience and integrity are the main elements that has contributed to the success of SERVINCA, positioning our company as leader in the construction industry”.

CADOCON 2013 Company of the Year Awards in the Energy Sector SERVINCA S.A.

METRO SANTO DOMINGO line I y II, Emergency Power Generation plant, 40MVA and Substation 138KV/40MW.

E-mail: servinca@servinca.com.do/cjcabrera@servinca.com.do/ccabrera@servinca.com.do www.servinca.com.do | RNC 1-01-08699-8

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Services we offer

ELECTRICAL AREA

SERVINCA, with over 33 years experience in the engineering and construction sector, has the ability to provide a high quality service in multidisciplinary projects complying with top standards for quality, health and occupational safety and environmental protection, while maintaining a key position in the construction industry current market. The main key activities covered by our business experience are:

• Erection and EPC Power transmission lines in high, medium and low voltage.

• Erection and EPC in Energy generation and distribution: Diesel, Gas, combined cycle power plants , Hydroelectric, and renovables projects.

• Erection and EPC Electrical Substations.

• Electrical equipment installations.

• Fiber optic communication networks.

EGE HAINA 40 MW COAL POWER PLANT Installation of new precipitators, Barahona, Dominican Republic.

BARRICK PVDC GOLD MINE F336 Underground piping, 25 Kms of pipelines installed.

MECHANICAL AREA • Industrial Mechanical installation and Fabrication.

• Hydro mechanical projects.

• Potable water, sewer systems, fire protection and freshwater pipeline systems.

• Fabrication, supply and installation of steel structures, fittings, supports, etc.

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• Thermal insulation of piping and Industrial Painting.

• Pump stations.

• Water treatment plants.

• Sheet pilling.

• Drilling and construction of water wells.

• Fire Alarm and Protection Systems.

• Installation and maintenance of HVAC systems.

METRO SANTO DOMINGO Power Generation plant, 40 MVA.

METRO SANTO DOMINGO - Construction of tunnel and electrical installations for Metro Substations – 350 Lineal meters.

PINALITO HYDROELECTRIC DAM 69KV Transmission lines and 50 MVA Substation, Dominican Republic.

CIVIL AREA

ELECTRICAL AREA

• Excavation.

• Earthworks • Filling and compaction.

• Sandblasting.

• Encofrados.

• Piles.

• Shotcrete.

• Industrial electrical installations in general: Beer plants, airports, water treatment plants, cement plants, gold mine process plant, metro stations and others.

• Instrumentation, panels, installation devices, control and instrumentation cable, panels, installation devices, control cable pulling, testing and inspection.

SERVINCA Headquarter – No. 737, Francisco Prats Ramírez, st, El Millón, Sto. Dgo., Dominican Republic.

Phone: (809) 363-0928 / 0925 / 0926 | Fax: (809) 363-0570

MANUFACTURING SERVICE

Our fabrication Workshop, located in Santo Domingo, Hato Nuevo, is specialized in the Design, Manufacture, Repairing and Technical Assistance for metal mechanical projects, covering a wide rage that includes: Hydro mechanical Elements for Dams such as Gates Takes, Radial Gates, Grills, Overhead Cranes, Shields, Cofferdams, Penstocks, Suction tubes, Speed Reducers and Power Transmission mechanical equipment.

FABRICATION WORKSHOP Capacity of over 2000 Tons / months, Hato Nuevo, Santo Domingo.

MONCION HIDROELECTRIC DAM 50 MVA, Dominican Republic.

PELIGREE HYDROELECTRIC DAM Haiti, ALSTOM, 3 x18 MVA.

Our fabrication capacity is also oriented to Manufacture Mechanical parts, Design and Manufacture of Metal structures. Pipes, Dismantling Joints, Expansion Joints, Bifurcations, metal Coatings and accessories.

JIGUEY – AGUACATE HYDROELECTRIC DAM 50 MVA, Dominican Republic.

LAS BARIAS HYDROELECTRIC DAM 2.5 MVA, Santo Domingo.

MONTE GRANDE AND SABANA YEGUA - Hydroelectric and irrigation Dams, 8 MVA and 15 MVA, Dominican Republic.

VALDESIA HYDROELECTRIC DAM 15 MVA, Santo Domingo.

ENGINEERING DESIGN SERVICES:

INDRHI AND INTERNATIONAL WORLD BANK IRRIGATION PROJECTS Lote 10, Jima Camu siphon and irrigation pumping system, La Vega, Dominican Republic.

• Design of mechanical installations.

• Distribution System Design and delivery of water, wastewater and storm drainage.

• Design of steel structures, doors, fittings, supports, etc..

• Engineering and construction of concrete piles, drilling wells, infiltration wells, etc..

• Electrical systems in general.

• Supply and transportation of local and imported • Materials related to electromechanical installations.

E-mail: servinca@servinca.com.do/cjcabrera@servinca.com.do/ccabrera@servinca.com.do www.servinca.com.do | RNC 1-01-08699-8

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Profile

SERVICIOS DE INGENIERIA, SERVINCA, was contracted by BARRICK Pueblo Viejo Dominicana Corporation for the construction of 30 Kms – 4¨ to 36¨ HDPE and carbon steel underground piping utilities for the potable, freshwater, firewater and storm sewer systems of the Gold mine Process plant site. =SERVINCA is proud to be part of the construction of the 34.5kv Overhead Transmission Lines for BARRICK PVDC process plant site and surrounding areas, with the responsibility of the Engineering, Procurement, Management and Construction of over 35 Kms - 34.5KV and 4.16KV Over Head line systems.

HDPE Termofusion Work – F336 Project , PVDC

SERVINCA received in the month of October 2013 the award for best company of the year three times in a row in the Energy Sector awarded by the Dominican Construction Chamber (CADOCON).

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As a general contractor specialized in the Engineering, Procurement, Management and Construction of Electrical, Civil and Mechanical Works, SERVINCA executed several projects at PVDC in the disciplines of Piping, Metal-Mechanical, Steel Structure Fields and others such as Sheet Piling, Geomembrane, Geotextile, Gabions and Concrete Structures.

K136 ProjectBARRICK PVDC

F336 ProjectBARRICK PVDC

We have successfully executed Electrical, Instrumentation, Fiber Optic Networks, Substations, Pole mounted Transformers, Civil Works, medium and low voltage installations along the process plant site.

BARRICK PVDC electrical systems are built with the highest quality standards, providing an efficient service that meets the top international mining levels.

SERVINCA Headquarter – No. 737, Francisco Prats Ramírez, st, El Millón, Sto. Dgo., Dominican Republic.

Phone: (809) 363-0928 / 0925 / 0926 | Fax: (809) 363-0570

With over three years working in the construction of one of the most important projects in the Dominican Republic, BARRICK Pueblo Viejo Dominicana Corporation Gold Mine, SERVINCA have consolidated the position as a leader company in the Industrial-Mining market, providing cost efficient EPC solutions adhered to the highest quality and safety standards of the mining industry.

SERVINCA have achieved a total of 1,200,000 Manhours milestone achievement without lost time incidents for all projects executed at BARRICK Pueblo Viejo Dominicana Corporation by December 2012, result obtained by the proper risk evaluation and implementation of our own Health, Safety and Environmental plans.

Lifting Pole Maneuver - 34.5KV and 4.16KV OH Line Systems K136 Project, PVDC

“Our extensive experience is supported

by a group of highly qualified professionals, with the use of specialized certified tools and plants, that ensures the constant improvement of our company vision and provides cost efficient Engineering solutions to our clients in the Construction Industry�

The construction process of BARRICK PVDC process plant site is completed and commissioned, starting full production process since 2012. SERVINCA is pleased to be selected by BARRICK as one of the main general contractors to support the operation process by providing Engineering, Procurement, Construction and Maintenance services for the operation and extension of the process plant site facilities.

E-mail: servinca@servinca.com.do/cjcabrera@servinca.com.do/ccabrera@servinca.com.do www.servinca.com.do | RNC 1-01-08699-8

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Your Partner for Power With over 50 years of experience and operating from over 190 locations around the world, Aggreko is the world leader in providing interim power plants.

No matter what industry you work in, we offer complete turn-key project management including equipment, installation, maintenance and operation by highly experienced engineers to ensure reliable and flexible power.

Whether you need a few megawatts of power for a remote site or a few hundred megawatts of base load power to support the national grid, Aggreko delivers a power solution that is tailored to your needs, wherever and whenever you need it.

Aggreko, Power Specialists in the Utilities, Mining and Oil & Gas Industries Head Offices Americas (USA) T: +1 281 985 8200

Europe, Middle East & Africa (UK) T: +44 1543 476100

Aggreko operates from over 190 locations throughout the world.

For the location nearest you, please go to: www.aggreko.com/contact

Asia Pacific (Singapore) T: +65 6862 1501

barrick gold: pueblo viejo appropriate technology to Aggreko process the ore.

Aggreko, the world leader in the provision of temporary The Dominican power and temperature control solutions, provided a Government first invited reliable source of commissioning, construction and backup tenders for the project in power from 2011 to 2012 for a period of 18 months to the 2001. One key aspect of the Pueblo Viejo Gold Mine in the Dominican Republic. work required remediation Aggreko supplied a Full Turnkey 30MW Power Plant at the mine in Cotui, Sanchez Ramirez province, which was used of the site which had as a source of electricity for the commissioning of facilities been badly damaged by and large- horsepower motors and to provide critical earlier abandoned mining backup power for construction. operations. The other centred “Aggreko was selected because of their technical expertise on the development of new and global experience. Our goal was uninterrupted / operations to extract and guaranteed power and Aggreko delivered that in a safe, process the gold containing reliable and professional manner,” said Richard Williams, Senior Project Director at Barrick. sulphurs of the mine. www.aggreko.com The tender was initially won by Placer Dome Inc., which was subsequently acquired by Barrick. By 2009 the complex negotiations to develop Pueblo Viejo were complete and a 60/40 consortium with Goldcorp – the Pueblo Viejo Dominicana Corporation (PVDC) – in which Barrick holds the controlling interest, was busy constructing this multi-billion dollar facility.

Barrick Gold carried out the feasibility study and appointed Ruscan Environmental Sciences of Canada to perform the environmental and social impact

23.7 million Declared reserves (in ounces) of gold at Pueblo Viejo

Construction in progress on the primary ore crusher, ore stacker foundation, and ore reclaim feeder chamber

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GyM develops and among others. In 2 companies like: Ba Joint Associations o Our core values Co

Av. Paseo de la Rep

d executes a broad range of Projects in Latin America in various contractual forms: turnkey, BOOT, BOO, EPC, 2012, we have executed over 65 million man hours. Since 2005 we have built concentrators for the largest mining arrick Gold, BHP, Freeport McMoran, Goldfields, Teck, Xstrata Copper, Newmont, etc. These have been built, either in or as subcontractors, with the most important EPCM contractors such as Bechtel, Fluor, Jacobs, SNC Lavalin, etc. ommitment, Quality, Efficiency and Reliability are part of our integrated service for our customers.

pĂşblica 4675 | Lima 34, PerĂş | www.gym.com.pe

BARRICK GOLD PUEBLO VIEJO

GYM S.A.* GyM completed over 5.5 million man hours on the job without any Loss Time Incident (LTI) “GyM has worked with large EPCM contractors in other countries,” said Mr. Victor Cuadros, COO of GyM’s Electromechanical Division and sponsor of the project. “However this was our first experience in a mining GyM S.A., established in 1933, is the largest project outside South America. The heavy contractor in Peru, and has executed works rainfall, extreme weather conditions and the in several Latin American countries like Chile, difficulties encountered in finding local skilled Dominican Republic, Bolivia, Panama, etc. personnel were some of the challenges we GyM provides construction services such faced. “While other contractors were leaving as earthworks, concrete works, structural the job, we supported the client by providing erection, mechanical installation, electrical manpower and skilled workers to finish what and instrumentation works to the mining was impossible for others. We not only brought industry as well as the oil & gas, energy and in skilled workers, but also we established infrastructure sectors. GyM is well known for a training program for Dominican personnel its “ahead of schedule policy” that goes beyond from areas around the project who actively contractual obligations. participated in the execution of the work.

GyM’s scope of work in Pueblo Viejo included Our experience working with local communities two main activities: in the past 30 years was fundamental to • Concrete and civil works: Earthworks, accomplish what was done in Pueblo Viejo. installation of concrete, foundations for the At the end of the project, we executed more crushers, conveyors, recuperation tunnels, than twice the initial scope of work due to thickeners, etc. The scope also included the the client’s satisfaction for our outstanding construction of five anti acid brick tanks for performance.” acid storage, each of 19 meter diameter, using Stebbins technology. GyM completed over www.gym.com.pe 57,000 m3 of concrete works • Mechanical works: GyM performed the structural erection and equipment installation for the wet area which included , four ball mills, and a smaller SAG Mill in the regrinding area. GyM installed 8,000 tons of steel structures and 2,600 tons of equipment. *GyM, a Graña y Montero company.

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barrick gold: pueblo viejo

Mine equipment being assembled at Pueblo Viejo

assessment, and associated infrastructure had to be cleared and restored. A massive studies. Understandably for a project of clean-up effort was required as a result of this size a number of challenges had to be the improper closure of a former mine on overcome in bringing the the property in 1999. mine to where it is today, not Initial findings showed heavy metal concentrations, least of all the challenge that 3 centred on leading one of acidity and sediment in the mining industry’s most local water ways. The ambitious environmental primary sources of soil and Amount of soil removed water contamination were rehabilitation projects. to rid the ground of contaminants the historic open mine Before the building phase pits, waste rock piles, the could commence, the land

130,000m

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BARRICKgold: GOLD PUEBLO barrick pueblo VIEJO viejo HATCH

Hatch has worked with Barrick around the world to deliver engineering, procurement and construction management services to marquee projects such as the Pueblo Viejo gold project in the Dominican Republic and the Goldstrike Roaster Facility in the United States.

The Pueblo Viejo project is a refractory gold deposit in the Dominican Republic with sizeable levels of silver and copper to be recovered using pressure oxidation technology. The mine is approximately 100 kilometres northwest of the country’s capital city, Santo Domingo. The mine’s life is expected to be more than 25 years with annual production of about one million ounces per year during the first five years.

Hatch provided EPCM services for the pressure oxidation facility and air separation unit (ASU), including four autoclave trains and a 4,000-tonne-per-day ASU plant. At 780 tonnes each, the brick-lined autoclaves are some of the largest ever built. The logistics included delivering the autoclaves by sea from the manufacturing facility in Malaysia. All told, the project teams have achieved about 4,000,000

hours of work without a lost-time injury.

Pueblo Viejo poured its first gold in the third quarter of 2012—on schedule and within capital guidance. The mine is ramping up to commercial production, expected in December 2012.

At Barrick’s Goldstrike Roaster Facility in Nevada, Hatch was retained to provide full EPCM services. Engineering was split into basic engineering, including vendor and detailed engineering. Process design included process definition development and construction of a METSIM process simulation.

The Goldstrike Facility is a greenfield ore gold processing plant located on the Carlin Trend, the most prolific gold mining area in the western hemisphere, northwest of Elko, Nevada.

The facility consisted of primary and secondary crushing, ore storage, reclaim to dry grinding, whole ore roasting, gas cleaning, carbon-inleach with carbon stripping and gold refining, also included are tailings treatment and disposal. www.hatch.ca

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barrick gold: pueblo viejo abandoned plant facilities and tailings storage areas. The Margajita River that passes through the hills near the site had been dubbed the “Coca-Cola river” by locals because of its dark colour—the result of having absorbed so much acid rock drainage from the former mine.

The final team consisted of Barrick Gold employees, hazardous materials experts and new employees hired locally and specially trained for the operation. One of the first tasks was to take over a thousand samples to define soil in the area into different categories and determine future treatment and landfill options. Buildings on the property also contained different types of

Interior of the autoclave building

maerz Maerz Ofenbau AG was founded in 1950 in Zurich, Switzerland, by Austrian magnesite producers to design and sell open hearth furnace technology to the world-wide steel industry. In 1965 Maerz began the design and construction of a patented “MAERZ® Parallel Flow Regenerative (PFR) Lime Kiln” with high thermal efficiency and superior lime quality. It finally became the generally known “MAERZ® Kiln”, continuously improved with - again patented – new features. Since March 2006 Maerz is a member of the German based ThyssenKrupp Resource Technologies GmbH, a world-wide renowned supplier for kilns and grinding technology to the cement and minerals industries. Today Maerz offers designs for PFRKilns with nominal capacities between 100 and 800 tpd and with firing systems for all types of

liquid, gaseous and pulverised solid fuels.

Maerz has so far designed and constructed over 600 MAERZ® Kilns in more than 65 countries around the world. In 2009 Barrick - Pueblo Viejo Dominicana Corporation - awarded Maerz the contract for the installation of three heavy fuel oil fired PFR lime kilns with a capacity of 500 tpd each of burnt lime. Burnt lime is required for the neutralization of the gold processing plant’s tailings. Maerz supplied all material and equipment for the kilns whereas PVDC took care of the erection of the lime plant.

After completing erection work, start up and commissioning of the Maerz lime kilns started in July 2012. By the end of 2012 all three kilns had reached the industrial production stage thereby successfully completing commissioning. www.maerz.com

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barrick gold: pueblo viejo hazardous waste that had to be categorized and disposed The Chemithon Corporation has over 58 years of of in a safe manner. experience in providing sulfur related chemical process Approximately 130,000 technology, R&D, engineering, design, process equipment cubic metres of soil manufacturing and a full range of services to its customers. were removed to rid the Chemithon is committed to developing new and innovative ground of contaminants. technologies and equipment for use in producing SO2 to meet the chemical demands required by modern mining Bioremediation, a process operations. Chemithon is honored to have been selected by that relies on microorganisms the Barrick Gold teams to supply the sulfur burning SO2 gas to return altered land to plants for use in gold mining at both the Pueblo Viejo and the natural environment, the Pascua Lama Mine sites. was successfully www.chemithon.com used to treat almost 100,000 cubic metres of hydrocarbon contaminated soil.

In addition to the clean-up of hazardous substances within the mining areas, it was proposed that the clean-up of the surrounding areas would cost the Dominican Government an additional $75 million and the company would contribute $37.5 million with the other half coming from state funds. In the end, Barrick offered to take on the full estimated cost of remediation of the surrounding areas to help improve local living conditions.

To complement the clean-up, Barrick has also sponsored a significant reforestation project in the area.

The Chemithon Corporation

12,000 A large majority of people working at Pueblo Viejo are from the Dominican Republic

Direct and indirect jobs the mine will support in its lifetime

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EXCLUSIVE RENTAL Motor Plan S. A. is the exclusive representative of the multinational franchises National Car Rental and Alamo Rent A Car in the Dominican Republic. It is one of the leading and fastest growing car rental companies in the country and has almost forty years in the car rental market since its opening on December 17, 1973.

Motor Plan S.A. acquired the National Car Rental franchise in 1974, this brand mainly focuses on serving the corporate market.

In its beginnings, it started operating in Las Americas International Airport, main airport terminal in the country, as a solid option for the retail customers arriving to the Dominican Republic. As the business grew, offices where opened in Santo Domingo, Santiago,

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La Romana, Punta Cana and San Francisco de MacorĂ­s, forming a network of eighteen points of sale which support the transportation needs of customers from different businesses located throughout the country. In 2001, Motor Plan acquired the Alamo Rent Car brand, consolidating its position in the car rental retail tourism sector.

Grupo Ambar, a multinational vehicle group with more than 90 years’ experience in the market, is the parent company of Motor Plan and is one of the leading vehicles distributors in the Dominican Republic with brands such as Nissan, Infinity, Chevrolet and Suzuki. Grupo Ambar includes Santo Domingo Motors, Ambar Motors, and Auto Ambar, vehicle companies

BARRICKgold: GOLD pueblo PUEBLO viejo VIEJO barrick

in the Dominican Republic, Puerto Rico, Virgin Islands and Venezuela respectively; Equipos Diesel, representative of recognized brands of generators, construction equipment, agricultural vehicles and equipment and trucks; Todopieza, distributor of brands of auto parts and after-sales articles for vehicles; and Motor Crédito, a bank that is among the national leaders in the vehicle financing market.

Motor Plan, with its brand National Car Rental, began its business relationship with Placer Dome in the year 2003. Placer Dome was initiating its work in the Pueblo Viejo mine, later to be acquired by Barrick Gold. In order to satisfy Barrick Gold’s needs of renting a fleet in optimum conditions, functional at all times and given the location of the mine far from the service centers, Motor Plan created its modality of onsite service. With this, offering preventive maintenance in the client’s facilities thus minimizing time of service, prolonged interruptions and transportation of the fleet to another city.

After forty years, Motor Plan continues innovating, creating new products and services which help customers improve their operations providing new business opportunities and solutions. j.muniz@grupoambar.com www.nationalcar.com.do

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SAFETY AND ENVIRONMENT Banlaw’s highly skilled and experienced technicians are up to date with the latest mine safety and environmental standards and operations.

Banlaw staff have never had an LTI at a client site in over 30 years.

FUEL MANAGEMENT SOLUTIONS Banlaw is a global leader in fuel management solutions. They are specialists and have the people, products and system capabilities to help your operations control its fuel usage from ‘buy to burn’, globally and locally, saving time and money.

A Global Leader in Fuel Management Solutions Easy Safe Accurate Innovative BANLAW’S IN-HOUSE FUEL MANAGEMENT SPECIALISTS If you want to stay on top of your fuel management without employing your own fuel administrator, Banlaw’s expert staff can be a more efficient and a cost effective alternative. They can be based on site or come in to conduct periodic inspections, maintenance and calibrations. There is often a benefit in having an independent third party manage your facilities, separate from your fuel supplier and your staff.

Banlaw’s facilities management and maintenance services are supported by a global help desk servicing from Africa to the Americas and staffed by specialists who can solve issues on the spot. The Help Desk also proactively monitors the health of your system, alerting you to issues before you even notice them on the ground.

ONGOING SERVICE AND SUPPORT Your refuelling systems need to be properly maintained to ensure you gain the maximum benefit from them.

Regular inspection is also a legislative requirement in some countries for some systems.

After installing new systems, Banlaw can execute a service agreement to make ongoing support cost effective and efficient so you get the most from your new system or we are on call to visit just when you need us.

BANLAW MANUFACTURES A VARIETY OF INDUSTRY LEADING REFUELING HARDWARE WITH FLOW RATES AS HIGH AS 1000 LITRES PER MINUTE

INNOVATIVE PRODUCTS AND SOLUTIONS Banlaw FuelTrack™ provides precise monitoring, reconciliation and centralised reporting of any machine or vehicle’s fuel or lubricant use.

Banlaw FillSafe™ allows for the transfer of fuel at rates of up to 1000 litres (265 gallons) per minute with zero overfill, zero tank pressure and zero spillage during refuelling.

Banlaw LubeCentral™ is a scalable system that makes the transfer of oil and other fluids a clean, efficient and safe operation. Easy to use push to connect, flush face, oil and coolant fittings will reduce contamination and increase flow rates whilst eliminating spills.

Contact us: salesna@banlaw.com | www.banlaw.com

barrick gold: pueblo viejo

Plant site at Pueblo Viejo

Banlaw

Imagine a fuel management solution that is built on 30 years of experience and innovation in the mining industry. Imagine a system that ensures safe and secure fuelling, easy operation, accurate data collection and full reconciliation. Imagine a solution that transmits your fuelling information automatically, accounting for every litre of fuel from “buy to burn”... That system is Banlaw FuelTrackTM. Banlaw’s highly skilled and experienced technicians are up to date with the latest mine safety and environmental standards and operations.

Banlaw is a global leader in fuel management solutions. We are specialists in the mining sector and have the people, products and system capabilities to help your operations control its fuel usage from ‘buy to burn’, globally and locally, saving time and money. salesna@banlaw.com

Barrick also has a proud record of helping to improve the health status of the area through its use of a communitybased approach to partnership with local agencies. Cholera and dengue fever are endemic in the locality and since 2009 Barrick has funded a health prevention educational programme that reached tens of thousands of people. Two hundred Dominicans, mainly young people, were trained to work with the local municipalities of Cotuí, Fantino and Maimón. The teams visited households with the goal of educating residents on hygiene, family, and environmental health.

The importance of this programme has been recognised as a significant factor in reducing the presence of dengue fever in the province, according to the local Health

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CENTRAL DRILL PARTS & MACHINERY, INC. www.centraldrill.com

Incorporated in 1987, Central Drill Parts started as a source of parts and service for the drilling industry. Over the years we have diversified into other industries. We provide parts and service for the following industries: • Blasthole drilling • Water well drilling • Aggregate & quarry drilling • Underground mining equipment • Construction • Road Construction • Mining

barrick gold: pueblo viejo Department. Since the Central Drill Parts & Machinery completion of the second Central Drill Parts & Machinery has been in business for phase of the programme, 25 years serving the drilling industry, including blast hole, which was sponsored by the down the hole and water well drilling. We supply air-ends, Ministries of Labour and drill string, pump drives, new and rebuilt pumps, and many Public Health, Barrick and other components for drills from different manufacturers. the local municipalities of We provide new and reconditioned drill parts and supplies, a full line hydraulic repair shop with testing capabilities, Cotuí, Fantino and Maimón, hydraulic cylinders, pumps, motors, valves, cylinder packing there have been no reports kits, and custom built Gates hydraulic hoses. of cholera or dengue fever www.centraldrill.com cases in the region.

In August 2012, Barrick Gold Corporation announced that the Pueblo Viejo mine had achieved first gold production, with ore being processed through the first two of four autoclaves.

“Bringing this mine successfully into production on schedule, within capital guidance and with an excellent safety record is the result of tremendous efforts from across the company,” said Jamie Sokalsky, President and Chief Executive Officer of Barrick at the time. “Pueblo Viejo is a world-class asset, one of only a handful of mines that will produce more than one million ounces of gold per year. We expect it to be a major contributor of low cost production to Barrick for decades to come.”

Five months later, in January 2013, Efforts are now concentrated the company announced it had achieved on building a working mine

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barrick gold: pueblo viejo

The process plant site at Pueblo Viejo where gold, silver and copper will be processed

commercial production at the mine. Pueblo With commercial production achieved, Viejo was completed at a capital cost of Barrick is now in the midst of plans to $3.7 billion and created more than 11,000 ramp up to full capacity in the first half direct jobs during the of 2014. Barrick’s share of full-year 2013 production construction phase of the from Pueblo Viejo is project. The operation is expected to support about anticipated to be about 2,000 direct jobs plus nearly 500,000 ounces of gold at 10,000 indirect jobs over its all-in sustaining costs of 25-plus year mine life, with $700-$750 per ounce.

Number of years the Dominicans accounting for Barrick’s share of average production phase nearly 90 percent of the annual gold production in the should last for full-time workforce. first full five years of operation

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Kentz, delivering innovative construction solutions to the mining industry Providing mechanical, electrical and instrumentation services to clients in the Americas and Worldwide for over 30 years.

Global solutions to local challenges... www.kentz.com

barrick gold: pueblo viejo

Part of the site revegetation and reforestation efforts

kentz

Kentz Group has been delivering top-quality services to leading international clients in all sectors of industry and commerce since 1919.

With an extensive track record in executing projects of the highest quality, to agreed schedules and within budget; we are totally dedicated to innovation and excellence in the provision of all our services.

We are committed to providing a quality and innovative service to all our clients. We are continuously improving the quality of our work through client interaction, leadership, teamwork and work process improvement.

We have a significant world-wide presence, which enables us to provide the responses and performance that our clients demand, exceptional service, that is second nature to us, but second to none in our industry. www.kentz.com

is anticipated to be 625,000-675,000 ounces at all-in sustaining cash costs of $500-$600 per ounce and total cash costs of $300-$350 per ounce. Including depreciation of mine construction capital, costs are expected to be $650-$750 per ounce.

In other news, a 215 MW dual fuel power plant at an estimated cost of approximately $180 million was successfully commissioned towards the end of 2013 by its Finnish manufacturer W채rtsil채. The plant has the ability to transition from heavy fuel oil (HFO) to lower cost liquid natural gas (LNG).

It goes without saying that a number of contractors and businesses have helped contribute to the success of the Pueblo Viejo mine since Barrick became involved with the project. One such business that has been playing a crucial role is SERVINCA, which was contracted to construct 30 kilometres

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Steam and oxygen are injected into the autoclaves to oxidize the ore

of four-to-thirty six foot long HDPE and carbon steel underground piping utilities for the potable, freshwater, firewater and storm sewer systems of the mine’s process plant site, as well as the power distribution and communications networks from the Main Substation to all of the process plant site facilities and surrounding areas.

Boasting over 33 years of experience in the execution of multidisciplinary projects covering the electrical, mechanical and civil areas for the private and public sectors, the main focus of SERVINCA in the Engineering and Construction of Electromechanical and

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barrick gold: pueblo viejo Civil projects is to provide Hawk Measurement Systems (HAWK) the highest quality and safety Hawk Measurement Systems (HAWK) was established standards to each of its clients. in 1988 and has grown to become recognized as a S E R V I N C A’s vast world leader in level, positioning and flow measurement experience allows it to technology. HAWK manufactures level measurement provide multiple engineering equipment based on different technologies such as, solutions to its clients Self Cleaning Acoustic Wave, Advanced Microwave Transmission, Sonar, Guided Wave Radar (TDR), Switches for energy generation, and Magnetic Level Gauge & Magnetostrictive Level transmission, distribution Transmitter. HAWK products are inherently designed to and electrical or mechanical solve most difficult level measurement applications and industrial projects such as are proven in a wide range of areas including mining/ beer plants, airports, hydro mineral processing, water supply/waste water, bulk material electrical dams, metro, handling, chemical and oil & gas etc. substations, structural steel www.hawkmeasure.com fabrication and similar works for the mining sector.

As a general contractor, SERVINCA has executed several projects at the mine that fall under the disciplines of piping, metalmechanical, steel structures, earthworks, concrete works and others such as sheet piling, geomembrane, geotextile, gabions and concrete structures.

SERVINCA is understandably proud to be part of the construction of the 34.5kV overhead transmission lines for the mines process plant site and surrounding areas. To date it has successfully executed electrical,

“the mine´s lifespan is likely to be longer than projections suggest”

A flash vessel for the pressure oxidation process is off loaded

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A G I TAT O R S P E C I A L I S T S F O R T H E MINERAL PROCESSING INDUSTRY

Contact: John Pascual, Product Manager, Mixers Telephone: 905-693-8595 | e-mail: mixers@haywardgordon.com www.haywardgordon.com

barrick gold: pueblo viejo instrumentation, fibre optic networks, substations, poleHayward Gordon has been actively involved in the selection mounted transformers, civil and manufacture of mixers for the mining and mineral works, and medium and processing industry for over 40 years. In this time, we have low voltage installations developed an expertise and installation portfolio second along the process plant to none. In addition, Hayward Gordon has been at the site. As demanded by its forefront of many of the largest and most innovative projects in the world. Using our experience in mineral processing client the electrical systems technology, Hayward Gordon partnered closely with Barrick that have been built have to provide optimized and highly efficient agitator systems been done so to the highest throughout the plant. We are proud to share in the success quality standards, providing of the Barrick’s Pueblo Viejo Project. an efficient service that www.haywardgordon.com corresponds with the top international mining levels.

One particularly impressive statistic, released in December 2012, showed that SERVINCA has achieved a total of 1.2 million man hours without experiencing a single lost time incident in the course of carrying out any of its projects at the Pueblo Viejo mine.

The construction of the process plant site was completed, commissioned and commenced full production in 2012, and SERVINCA is proud to have been selected

by Barrick as one of the main general contractors supporting the operation

Hayward Gordon

1.2 million Coconut mats are laid along the slopes of a recently-constructed access road to aid in soil stabilisation

Man hours achieved by SERVINCA without experiencing a single lost time incident in the course of carrying out its projects at the Pueblo Viejo mine

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Water and Wastewater Treatment Solutions Worldwide

Phone: +1-905-475-1545 | Email: info@napier-reid.com

www.napier-reid.com

barrick gold: pueblo viejo process by prov iding Napier-Reid engineering , construction Napier-Reid is a leading Canadian engineering/ and maintenance manufacturing company specialized in custom-designed services for the process water and wastewater treatment packages. Since its plant site facilities. inception in 1950, Napier-Reid has completed over 3,000 It should be highlighted water/wastewater treatment projects in Canada and around that Barrick does indeed the world. These include package treatment systems for some of the world’s largest mining projects by Barrick Gold, recognise that the mine Kinross, Xstrata, Sherritt, FQM, Cameco, as well as major has a finite life, despite oil/gas companies in Middle East, Venezuela and Nigeria. the fact the production We are active in both municipal and industrial markets. phase should last for at Our specialties cover potable water treatment, highleast 25 years. There purity process water production, sewage and industrial is therefore a strong wastewater treatment. Napier-Reid proudly provided the emphasis on planning for ARD filters and demineralization water treatment package for the Pueblo Viejo project. a sustainable and diverse www.napier-reid.com future. Barrick has just provided seed capital for a business incubation bureau in Cotuí to assist the start-up of new businesses in the area that are non-mining related.

When the mine finally closes, significant reserves will have already been placed in trust with the Dominican government to deal with the eventuality. Meanwhile, Barrick does retain the belief that the mine´s lifespan is likely to be significantly longer than current projections suggest.

It believes strongly that there is additional gold at Pueblo Viejo, but the declaration process is very complex and it is extremely Process facilities

“When the mine finally closes, significant reserves will have already been placed in trust with the Dominican government to deal with the eventuality” BE Monthly | 69

barrick gold: pueblo viejo

$3.7 Billion Capital cost completion of Pueblo Viejo

common in this industry for mines to have undeclared reserves. Also, the steady rise in the price of gold allows it to mine ever smaller concentrations of gold and if this trend continues it is likely to extend the life of the mine still further.

One thing that the company is absolutely certain of is that it will be leaving this site in a much better condition than it found it. When the mining operation closes it will be done in a proper manner to international standards. At Pueblo Viejo Barrick intends to bring to bear all the know-how and experience gleaned from mining operations across the globe and leave behind a vibrant and dynamic local community and economy.

Whatever the long term future holds, it cannot be disputed that Pueblo Viejo has the potential to revitalise a region where nearly half the population lives below the national poverty line. This potential is already starting to be realised as the mine continues to bring much-needed diversification to the Dominican economy.

For more information about Barrick Gold Pueblo Viejo visit: www.barrick.com

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Diamond in the rough Through the continued success of its Letšeng mine in Lesotho, and the development of the Ghaghoo mine in Botswana, Gem Diamonds remains one of leading global producers of high value and rare diamonds

written by: Will Daynes research by: Jeff Abbott

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Gem Diamonds

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Gem Diamonds

F

ounded by current CEO, Clifford Elphick, in July 2005, Gem Diamonds has made significant strides in the years that followed to become a leading global producer of high value diamonds. The company is the majority owner of the well-known Letšeng mine in Lesotho and is also in the process of developing its 100 percent owned Ghaghoo mine in Botswana.

As of 1 January, 2013, the company recorded total gross resources, including reserves, of 25.8 million carats containing in 409.8 million tonnes, with an average diamond price of US$625 per carats. Reserves meanwhile totalled 3.5 million carats contained in 86.4 million tonnes, with an average diamond price of US$831 per carat.

The Letšeng mine is famous for its production of large, top colour, white diamonds, making it the highest average dollar per carat kimberlite diamond mine on the plant. Operated by De Beers from 1977 until 1982, the mine restarted operations in 2004 before being acquired

by Gem Diamonds in late 2006 at a cost of US$118.5 million. In the five years from 2006 until 2011 annual production under Gem Diamonds would go on to rise from 55,000 carats to 112,367 carats.

Letšeng processes ore from two kimberlite pipes, Main and Satellite, both bearing extremely low grade ore, under two carats per hundred tonnes, as well as from existing stockpiles. The mine can currently process around seven million tonnes of ore a year, producing about 100,000 carats.

Since 2006, the mine has been responsible

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Gem Diamonds for producing four of the atlas copco twenty largest white gem Atlas Copco has a long history in the Southern African quality diamonds ever region and is today a leading player in numerous industries. discovered. These include Our products and services are designed and manufactured the Letšeng Star, a 550 carat to assist our customers in achieving maximum productivity. white diamond recovered Our vision is to become and remain “First in Mind—First from the mine in August in Choice®” with all our customers and we believe that our combination of product excellence and dedicated staff will 2011, which remains among assist in achieving our vision. the top 15 largest white South Africa, Namibia, Zimbabwe, Botswana and diamonds on record. This Mozambique together make up the Southern African region. discovery was preceded by The ‘borderless’ approach to business activities in the that of the 478 carat Light region best suits the needs and requirements of Atlas of Letšeng white diamond in Copco’s customers in the region.

2008, the 603 carat Lesotho www.atlascopco.com Promise white diamond in 2006, and the 493 carat Letšeng Legacy white diamond in 2007.

More recently the company again made the headlines with the discovery of a rare 12.47 carat blue diamond from the Letšeng mine. With blue diamonds being among the most sought after of the coloured diamonds, this particular diamond subsequently went on to sell for $7.5 million, a record-breaking price for the Letšeng mine, at auction in Antwerp.

In January 2012, Gem Diamonds commenced with Project Kholo, the name given to its plan to expand the Letšeng

$7.5 million Record price at auction for a rare 12.47 carat blue diamond found at Letšeng

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Matekane Mining “Yes we can”

We have assembled the best and latest mining machinery from leading manufacturers, to supply blasting and haulage services for mining in southern Africa. Our fleet ranges from face shovels excavators, to off-highway dump trucks, graders, rock breakers, drill rigs, bulldozers, front-end loaders, water trucks and vibrating rollers.

Matekane Mining has taken delivery of machinery including: • 40, 50 and 100 ton excavators • 3, 4, 5, and 12 cubic meter wheel loaders • 25, 30, and 40 ton articulated trucks (ATs) • 55 and 95 ton rigid dump trucks • A wide range of track-type-tractors • Support equipment

MATEKANE

MINING

Matekane Mining has navigated the Maluti Mountains to deliver the best plant for opencast mining at 3 200 m

above sea level, and we will continue to deploy project managers that ensure our continued excellence anywhere in the world. Open pit mines are operated when deposits of minerals are found near the surface or along kimberlite pipes. Matekane Mining, a subsidiary of Matekane group of Companies (MGC) has expanded its mining division to Mozambique in partnership with an experienced Indian company, RST Mining and Logistics. The partnership is doing very well with experiences from both companies.

Tel: +266 22 216 200/52 216 200 | Fax: +266 22 317 733 | Email: info@matekanegroup.co.ls | www.matekanegroup.co.ls

Gem Diamonds mine. With a brief to ramp up the mine to full production by July 2014, Project Kholo consists of a number of work streams, all directed towards increasing the mine’s revenues, including increasing ore throughput, improving diamond liberation, reducing diamond damage and increasing the amount of production available for cutting and polishing.

Heading north out of Lesotho into Botswana we find the Ghaghoo mine with its Gope 25 kimberlite pipe. Located some 45 kilometres within the eastern border of the Central Kalahari Game Reserve, Gem Diamonds is having to operate within the

MATEKANE MINING When MMIC entered the Mining scene in 2004, the equipment was sourced from Barloworld Equipment Lesotho division.

The contract scope was, to supply equipment and staff to the highest diamond mine in the Southern hemisphere. Visiting the largest operation in Lesotho requires a journey through steep winding roads higher than 3 200m above sea level. On arrival, the view is majestic, with sweeping vistas of snow capped peaks in all directions bearing testimony to this remarkable and challenging geological find, first discovered in 1957. With the harmonious relationship MMIC grew with the mine trough difficult growth phase. This contributed to the growth of the Matekane Mining and Investment Company (MMIC) fleet of equipment. Today MMIC operates one of the largest fleets of bulk earth moving

equipment in Lesotho.

The fleet ranges from excavators, to off-highway dump trucks, graders, rock breakers, drill rigs, bulldozers, front-end loaders, water trucks and vibrating rollers. The machines are operating in temperatures ranging from -20 to + 20 degrees Celsius.The teams selected to manage the operations are equipped to perform under these difficult conditions. The operation produces in excess or 20 million to n per year. The coal operation in Mozambique started in April 2012 and is producing 2 million bank cubic meters per month. This will grow to a 10 million bank cubic meters per year operation.

MATEKANE

MINING

E. info@matekanegroup.co.ls www.matekanegroup.co.ls

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highest of environmental standards in order to ensure minimal environmental impact from the mine’s development.

In early 2010, three independent experts conducted an updated resource statement for Ghaghoo on behalf of the company.

An increase in grade from new statistical modelling, and volume through the re-interpretation of drilling results, led to an upgrading in Ghaghoo’s total carat resource to 20.5 million carats, at an increased average US$162 per carat, with a total in situ value of US$3.3 billion. It was also during valuation work that two blue diamonds were also recovered from samples.

Upon consideration of its findings the company presented the Botswana government with an updated study of the mine, including the option for an underground mine. With this proposal agreed, construction of phase one of the Ghaghoo underground mine began in 2011 following Gem Diamonds’ board’s approval of a $US85 million capital budget.

With an estimated production capacity of 720,000 tonnes per annum, the objective of phase one will be to confirm the grade, diamond prices and the recovery processes, including the use of autogenous milling, which is expected to increase diamond liberation.

Construction of the processing plant will be

commissioned early in 2014 and will be ready for the second half of 2014 ore delivery date.

The Gem Diamonds group is committed to the principles and practices of sustainable development, believing that adopting an active and engaged approach to sustainability is key to its ability to meet its responsibilities

“Since 2006, the Letšeng mine has been responsible for producing four of the twenty largest white gem quality diamonds ever discovered” 80 | BE Monthly

Gem Diamonds

to its stakeholders, shareholders, employees and the communities within which it operates. For both ethical and pragmatic business reasons, the company is committed to the strict maintenance of internationally recognised standards of health and safety, environmental, social, and economic and business management.

Moving forward the company has a very clear and consistent growth strategy based on the successful expansion of the Letšeng mine and the development of the Ghaghoo mine in Botswana. Meanwhile it will continue to seek to maximise revenue and margin from its production of rough diamonds by pursuing

diamond cutting, polishing and sales and marketing initiatives further along the diamond value chain. With favourable supply and demand dynamics expected to benefit the industry over the medium to long term, particularly at the high end of the market which is supplied by Gem Diamonds, this strategy positions the company strongly to generate attractive returns for shareholders well into the future.

For more information about Gem Diamonds visit: www.gemdiamonds.com

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Rio Tinto Kennecott

Creating a community from copper How Rio Tinto Kennecott has utilised the vast wealth of the Bingham Canyon Mine to create a thriving, sustainable community

written by: Will Daynes research by: Jeff Abbott & Robert Hodgson

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Rio Tinto Kennecott

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easuring two and threequarter miles across and with a depth of approximately threequarters of mile, the Bingham Canyon Mine was for many years the largest man-made excavation on Earth. It is from here, southwest of Salt Lake City, Utah, in the Oquirrh Mountains that Rio Tinto Kennecott sources almost a quarter of the total copper needs of the United States.

It was in 1903 that the then Utah Copper Company was incorporated, tasked with overseeing the development of the mine itself, and it is fair to say that its success in mining the huge, low-grade porphyry copper type ore body revolutionised the copper industry, and set the pattern for the large open-pit porphyry copper mines that today dominate the copper industry worldwide. Expansion of the mine took off rapidly with the region quickly becoming a hub for mining activity.

The Bingham Canyon Mine has been a fixture of Salt Lake Valley for more than 111 years and during that time has produced some 19 million tonnes of copper, more than any other mine. Still among the very largest open-pit operations on the planet, Kennecott continues to look at extending the life of the mine and their capabilities.

“It stands to reason that we are incredibly proud of our history and of being a feature of Salt Lake Valley for well over a century,” states Rohan McGowan-Jackson, Vice President, Resource Development and Communities.

“In that time we have firmly established ourselves as the largest private economic driver in Utah, generating more production, exports, income and employment than any

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Instilling True Co Deliverin

Ames self-performs most major wor projects to provide better control of of the work, and greater flexibility to changing requirements from the cus Our self-performance capabilities inc

onfidence. ng Success.

rk elements on the progress o accommodate stomer. clude:

• Mining • Mining Infrastructure • Aggregate Processing • Bridge Construction • Blasting (Rock) • Earthwork • Equipment Installation • Excavation (Rock) • Pile Installation • Roadway and Highway Construction • Soil-Cement Construction • Piping (In Ground & mechanical) • Walls (MSE & Noise Abatement) • Structural Concrete Tel: 801-977-8012 | www.amesconstruction.com

AMES CONSTRUCTION Founded in 1962, Ames Construction is a full-service heavy civil and industrial General Contractor. Self-performing a majority of all the work contracted, Ames serves public and private clients throughout North America in core markets including: Energy, Mining, Transportation, Railroads, Water and Wastewater, Residential and Commercial.

Mining is a particularly vital market for Ames Construction. Ames has experience in mine Development, Infrastructure, Leach Pads, Tailings Dams, Contract Mining and Reclamation. Ames has also had an over 30-year relationship with Rio Tinto at the Kennecott Bingham Mine. Ames continues to construct the North Tailings Dam, having done so for the past 14 years.

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Ames understands that it supports Kennecott by providing safe, on-time and on-budget project completion. That’s why Ames has proactive safety programs and team of over 20 safety and health professionals to provide worksites with safety statistics better than the national average. It is also why Ames is focused on listening and working with clients to respond their needs and deliver high-quality projects that stay on schedule.

With proven self-performance in a wide array of projects, and detailed attention to our clients needs, Ames Construction has what it takes to ensure project success. www.amesconstruction.com

Rio Tinto Kennecott

other company. Today we have approximately so through the implementation of self2,500 employees, while the number of imposed environmental targets that assist indirect jobs created by the mine’s operations it in achieving good management of natural has been estimated at some 14,000.” resources and sustainable development.

Given its significance in the region it The concept of sustainable development is appropriate that Rio Tinto Kennecott also extends to the company’s work with holds a steadfast belief in being not only local communities. “Since Rio Tinto acquired Kennecott in 1989,” the steward of the land on McGowan-Jackson continues, which it operates, but also “it has invested several billion being a strong community partner. Where possible the dollars into modernising the company has endeavoured core business and allowing to prevent or minimise any it to achieve the growth it Estimated number of potentially harmful effects has in recent years. While indirect jobs created by the mine that its activities may have this relates specifically to on the environment. It does the internal growth of the

14,000

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“We have firmly established ourselves as the largest private economic driver in Utah�

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Rio Tinto Kennecott

business it has allowed us “Daybreak is nothing short to extend the licence of the of an outstanding positive operation and that in turn story of post-mining land use,” McGowan-Jackson enthuses. results in creating even “What was previously a 4,000 more well paid jobs and acre area of land used to maintaining the flow-on from the taxes we pay.” support mining activity has According to figures since received the necessary Rio Tinto Kennecott’s investment to clean it up and available to the end of total contribution to 2011, Rio Tinto Kennecott’s transform it into a modern surrounding communities total contribution to the master-planned community, as of 2011 communities that exist built upon the principles around the Bingham Canyon conceived by Envision Utah, Mine totalled $1.2 billion. This massive figure a public-private partnership that promotes has helped in all manner of ways, one of the quality, sustainable growth.” best examples of which can be seen in the Virtually the entire Daybreak Community existence of the Daybreak Community. is built around the concept of sustainability,

$1.2

billion

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PRECIOUS RESOURCE DISCOVERED Click here to visit our dedicated homepage for the mining community

www.bus-ex.com/mining

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with all houses carrying a level three energy efficiency certificate and contributing towards a 20-30 percent reduction in emissions, and water being recycled at every possible turn.

“What we have also learnt from the development of the Daybreak Community is the way you can have a material impact on the lives of people just through the way you design infrastructure,” McGowan-Jackson says. “The way you connect people’s homes to where they work has a big impact on the way they commute and this in turn has an impact on the levels of emissions being produced within a community.”

A study conducted by the University of Utah on the Daybreak Elementary School

Rio Tinto Kennecott

reaffirmed McGowan-Jackson’s comments when it highlighted that among the fifth graders attending the school, 88 percent walked or rode bikes to class each day.

Meanwhile studies of similar schools outside of the community brought back figures that showed this figure falling to as low as 17 percent, with the vast majority being

transported by bus or being dropped off by car. When you take these results and multiply them across the entire Daybreak Community you start to get a better picture of the positive social and environmental impact being made.

This commitment to planning and long-term investment has Kennecott well-positioned for the future. “Without doubt we have a fantastic

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Rio Tinto Kennecott

“we have a fantastic foundation to grow and extend the business” foundation to continue to grow and extend the business,” McGowan-Jackson says. “We have fantastic, well maintained and invested physical assets on site, and the mineral asset which we are blessed to be working with here could potentially still possess as much metal as we have taken out in the last 110 years, so there is a great deal to be positive about.”

Even when taking these positives into consideration, McGowan-Jackson is clear about what the company’s strategy must be going forward. “Our task now is to achieve significant productivity improvements throughout our business,” he concludes. “We are already working hard to achieve this by focusing on lean practices, by working on achieving greater integration within our value chain and by motivating our frontline employees to find creative solutions to be more efficient, something that they continue to showcase by coming together and facing down significant challenges before bringing them to resolution.”

For more information about Rio Tinto Kennecott visit: www.kennecott.com

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and mo

You don’t go into mining if life but effective risk identi are essential to survival. service offers a way to turn

written by: Jo research by:

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BFL CANADA

ore ore

you want to live a risk free ification and management BFL CANADA’s new ORE n uncertainty into an asset

ohn O’Hanlon James Boyle

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Red Chris mine construction site. Photo provided by Imperial Metals Corporation

BFL CANADA

B

FL CANADA is a no-nonsense insurance brokerage and risk management firm, founded by Barry F Lorenzetti in 1987 and now the largest employee-owned and operated commercial insurance broker and consulting services firm in the country, with offices in nine major cities from Vancouver in the west to Halifax in the east. Though BFL is active in upward of 20 vertical business sectors, one of the most important of these is mining, mineral processing and exploration.

BFL has always provided its mining industry clients with an outsourced risk management service covering every aspect of operations from initial exploration through construction and operation of a mining facility. Its core business, after all, lies in the insurance field, but this is a company that likes to add value.

When we covered the company’s activities a year ago we saw the strong growth of the company under its leadership team including Vice President and National Practice Leader – Mining for BFL CANADA’s operations Janet McLean. Today we want to look at how Janet, a specialist in risk transfer – the insurance side of the business and alternative risk financing – has been joined by Michael Yip to develop an enhanced service that they describe as representing something of a paradigm shift for the company and its client base.

Michael Yip joined BFL in 2012 as National Practice Leader – Enterprise Risk Management (ERM), BFL’s strategic consulting arm. His area of expertise is enterprise risk management and strategy advice. With 20 years of consulting experience in strategy, integration of strategy and risk management for Fortune

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500 companies, including major projects for mining clients. He takes the strategic view, from operational risk management at the mine site level up to how that contributes and helps drive profitability and success for the corporation as a whole. “My focus is working with colleagues like Janet McLean, who represents the risk transfer side of the equation. We complement each other because I have the strategic perspective of the industry, seeing market trends in terms of business drivers. Janet brings a very tactical approach to addressing those risk management factors in the mining industry.”

So they make a great team! And that team has been very busy over the last 18 months or so. Let’s look at the problem, he suggests.

“Insurance is a necessity – you clearly need to insure for the many hazards facing any mine operation. That is a significant expense for most mining companies. But the business implications of these and more intangible risks are ignored by many professional service advisers. We can insure 20 percent of our risks but the question I ask is how can we address the other 80 percent?”

That is the role of enterprise risk management (ERM), he asserts. Traditionally insurance is seen as a necessary evil, in case disaster strikes. Seen as an integral part of the

ERM process it undergoes a transformation.

“I am working with clients to not view risk as inevitably associated with loss,” emphasises Yip. “Risk involves uncertainty, sure enough, but let’s lose the preconception that it has to threaten profitability: see it as an opportunity to capitalise on an event!”

Over the last six months Janet McLean and he have been busy developing a new service that reflects this thinking. ORE (Optimizing Risk Excellence) can be applied in any

“We can insure 20 percent of our risks but the question I ask is how can we address the other 80 percent?”

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BFL CANADA

Wolverine mine site. Photo courtesy of Yukon Government

business vertical, but it’s not this is very important as part just the acronym that makes of our service communications it particularly applicable to with our clients. Commodity price graphs are a big deal. mining and minerals. After a year getting to understand But setting up hedging The year BFL was BFL’s capacity in different programs or alternative founded verticals, Michael Yip adapted financing arrangements and a platform he had spent years working with lenders to be developing to BFL’s unique more creative with respect to business ethos and made it mining-specific. your risk profiles will assure the investment Six months later it is available to clients, and community and lenders that you are ahead of it has already started to benefit the companies that risk and are addressing it.” Retrenchment in Canada that he and McLean work with. is not the only game in town – demonstrating So how can risk be seen as opportunity? a proactive management style gains any How can elements that are uncontrollable, company credit in difficult times – after all immitigable even – commodity pricing for investors are used to taking the long view. example – be turned to advantage? “It may His experience in multitudes of industry seem an esoteric concept to take a positive verticals, large small, national, multinational, view of fluctuations in world gold prices, but Yip brings valuable best practice experience

1987

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BFL case study It’s hard to find a manufacturer that has not gone through a lean process these days, and many have gone the whole nine yards with Six Sigma and TQM thinking. Mining operations could stand to benefit from this too, he believes. “I was engaged to conduct an operational risk assessment for a Middle East mining operation with three or four mine sites. We had our engineers go in and do all the practical reviews, but the board of the corporation was concerned that they did not have a handle on the bigger picture.

Were they efficient? Were they maximising economies of scale that could directly impact their bottom line – revenue as well as profitability? So we recommended that we step back and take a more strategic assessment of the organisation, and look at other industries facing a similar risk profile.

As well as Lean Six Sigma, which they were already considering, we encouraged them to look at supply chain issues. For example, where is the product going – do you have that addressed? Do you have the Michael Yip, National Practice Leader – Enterprise Risk Management (ERM)

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Janet McLean, Vice President and National Practice Leader – Mining

contractual risk issues under control – in other words are you looking at who you are doing business with?” McLean comments “Mining operations like most industries today, operate 24/7 with little time to send contracts through for input from the CFO or risk manager, as a result many opportunities to mitigate or transfer risk are missed by not amending contract language before it is signed. ORE addresses this and many more issues that our clients value.”

Taking a broad, business-centric assessment to this organisation resulted in a much heightened view of its risk profile, he says.

“What started out as a very granular, day to day, specific type of risk assessment turned into a much more strategic view of the operations, which led to significant branding efforts, greater competitive market penetration and in the end positioned them to be a much stronger player.” This company set out on an M&A trajectory, buying up smaller mines in the area: the process positioned it for a much stronger operational and strategic base.

BFL CANADA

Wolverine mine site. Photo provided by Yukon Zinc Corporation

to the industry. “Mining operations indeed meld together. That is essentially at the are somewhat unique but at the end of the core of one of the main services Janet and day they face fundamental business risks, I are building within BFL. It works with the similar risks to a manufacturing operation, mining organisations at the management and as an example. I encourage clients to take strategy level and at the operations level and a much more grounded perspective of risk it works to create a very tailored risk profile management, having experienced quite a lot depending on the need of the audience.”

This service works with mining operations of success in the past.” Mining companies are always interested to learn how their ‘peers’ to create a risk profile that is marketable. deal with prevalent risk issues Underwriters, accountants, – and where appropriate, banks, potential lenders benchmark those practices. and investors whether This type of strategic institutional or private all thinking underpins BFL’s ORE need to understand the service. “Being an ex-banker strength of a company’s myself and coming from the operational best practices.

Industry verticals consulting side I understand So it works at both ends, served by BFL how the two worlds can the tactical side focused on

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“Risk involves uncertainty, but let’s lose the preconception that it has to threaten profitability: see it as an opportunity to capitalise on an event!” operations and risk transfer, and the strategic side which takes into consideration the investment community, lenders and potential joint venture partners or M&A targets.

Mining operations can be rather inwardlooking, Michael Yip thinks, often failing to consider how the financial markets view them.

McLean comments, “The recent commodity pricing rally still has a long way to go to reach ideal levels, affecting stock prices, creating

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a very attractive M&A environment among mining and exploration companies. ORE is an excellent and affordably appropriate tool that, among other things, assists in both the evaluation of a targeted company for capital market’s assessments and the insurance market’s underwriting process post-merger that works to position the risk and its management in the best possible light.”

A panoramic risk profile is very desirable

BFL CANADA

Red Chris mine construction site. Photo provided by Imperial Metals Corporation

to outside providers like bankers and the financial and insurance markets. The majors tend to grasp this fact more readily than the juniors and to engage with BFL’s offering, so McLean and Yip are tailoring ORE to them.

“The positive aspect of having this type of assessment at the front end is that investors and bankers see it this way. You may have a great resource, your core samples may be fantastic, but if it is going to cost you a billion dollars to build an operating mine to access it, is it really worth developing? The younger juniors don’t necessarily have the head office depth to do all these analytics.”

The team is currently providing a scaled and modified version of the ORE service to a mining operation in northern Canada, as part of the commercial insurance services

that BFL offers. On top of that package the client benefits from Michael Yip’s engagement to explore how they can better position themselves to the capital markets and make introductions to lenders. “That is just an example of the expanded collaboration that Janet and I have,” he says. “Through the introduction of my services ORE is trying to capitalise on relationships that are still highly operational and tactical, but we are now able to provide a more strategic element as we work with clients right through their mine development life cycle.”

For more information about BFL CANADA visit: www.bflcanada.ca

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Keeping you f

By always striving to meet its customers’ needs American Supplies (AGS) has become one of the most respected spar suppliers to the commercial aviation industry

written by: Kenneth Connor & Will Daynes research by: James Boyle

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American General Supplies ( AGS)

flying

General re parts

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American General Supplies ( AGS)

K

assa Maru has a bit of experience behind him when it comes to working within the aviation sector. The fact is that the founder, Chairman and President of American General Supplies (AGS) is a man with an employment history that few could hope to match, and that many would be envious of.

When looking back on the evolution of AGS it is clear that the creation of the company, in Chicago in 1982, was very much linked to the career path taken by its founder. Over the course of the five years which preceded the birth of AGS Maru would be responsible for material management on behalf of both Ethiopian Airways and Yemen Airways, before becoming Vice President of International Marketing at Aviation Systems International (ASI). It was during his time at ASI that Kassa Maru was joined by his brother, Melesse.

Together the pair forged a hugely successful business partnership, one which paved the way for the pair to establish AGS. While AGS originally called Rockville, Maryland its home, the business quickly outgrew it and would go on moving from one larger location to another until it eventually bought its own facility in Gaithersburg, Maryland. It is from this 15,000 square foot facility that the company would go about furthering its aim of becoming an allencompassing spare parts supplier to the commercial aviation industry, providing more than 40,000 line items it has on-hand at its warehouse, consisting primarily of spares for Boeing and Airbus aircraft.

Today, AGS employs a total of 65 highly

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trained individuals across its operations in Maryland, New York, and California. It is these men and women who have been hugely influential in helping AGS secure upwards of $45 million in gross sales and become representatives for eight of the world’s leading commercial aviation manufacturers.

One of these manufacturers is Honeywell, a global leader in the aviation sector. The AGS/Honeywell partnership project began

in August 2011 and has seen AGS appointed as Honeywell’s channel partner distributor in Africa, where AGS is well established and continues to grow its presence on the back of being named Small Business Exporter of the Year to Sub-Saharan Africa in 2007 by the Export-Import Bank of the United States.

The partnership allows AGS to offer all of Honeywell’s product lines at substantial

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American General Supplies ( AGS)

discounts to its customers. than three decades on a series of core traits and qualities However, it knows that it that have helped it to stand is just as important that out ahead of the competition. these customers receive These characteristics include said products in a timely manner to ensure that their its ability to offer broad operations continue to run experience of the industry, AGS gross sales smoothly. Fortunately AGS’ possessing the financial proximity to no fewer than strength and capabilities three major international to benefit its customers, its airports means that it can deliver shipments admired reputation throughout Africa and quickly to, and throughout, Africa. the Middle East, and its unique degree of Whether it is as part of a partnership with understanding when it comes to the needs of the likes of Honeywell, Tug Technologies, the aviation sector in these parts of the world.

Trepel Airport Equipment Company GmBH, AGS takes great pride in the fact that it Malabar International, Clyde Machines, the works tirelessly to get to know the ins and Stinar Corporation or the SWITLIK Parachute outs of its customers’ business so as to get a Company, AGS has built its success over more clear understanding of their individual needs.

$45

Million

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“AGS’ ability to predict the changing nature of the sector means that it has in facT been preparing for this growth in Africa for a number of years now”

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American General Supplies ( AGS) Doing business in a face-toface manner is something that it also believes strongly in and as such it makes every effort to go to its clients in order to show them who AGS is, what it specialises in and how it values its customers above everything else.

AGS is further buoyed by the fact that within its ranks it has a number of employees who themselves are experts in their fields, including several former airline employees.

What each of these people have in common however is a passion for AGS’ business and an unwavering commitment towards taking care of its customers throughout the duration of their relationship with the company.

The aviation sector is renowned for its dynamic nature and as such a company like AGS must always be able to stay abreast of changes and fluctuations within the industry.

Such attention to the market has served the business extremely well over the years, particularly during difficult economic times.

This approach has meant that the company now finds itself in a healthy enough position to recruit new employees, extend its partnerships with manufacturers and take on additional large projects from fast growing airlines in rapidly developing markets such as Africa.

AGS’ ability to predict the changing nature of the aviation sector means that it has in fact been preparing for this growth in Africa for a

number of years now. In that time it has hired additional professionals, upgraded its facilities and set about making plans for the construction of an adjacent hangar at its headquarters. AGS also now finds itself in talks to build a hangar in Rwanda, a fact in itself that highlights the growing importance of emerging markets to the company and the opportunities that they will continue to offer going forward.

With sales figures close to $50 million in 2013 alone, it really puts into perspective just why both the short and long-term future looks so bright for AGS. For more information about American General Supplies (AGS) visit: www.agsusa.com

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Aveng Trident Steel

The backbone

of industry Steel is vital to construction, mining, manufacturing and so much more: Africa Aveng Trident Steel, now a part of Aveng Steel, is established as South Africa’s go-to partner for steel products and services of all kinds

written by: John O’Hanlon research by: Candice Nice

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Aveng Trident Steel

A

veng Trident Steel has its origins in a steel merchandising business founded in 1972 in the Germiston suburb of Wadeville. The company has grown steadily since then, making a number of acquisitions along the way and now covers all of South Africa. In 1998 Trident became part of the Aveng group, which listed on the Johannesburg Stock Exchange the following year. The Aveng group is a leader in infrastructure development with a strong presence in southern Africa, the Middle East and Australia – the combined capabilities of its constituent companies equip it to undertake any project – the Aveng Group is the largest infrastructure development company in South Africa, employs more than 10,000 people, and has the largest market capitalisation of any company within its category on the JSA. The Aveng group played a key role in a number of the key infrastructure projects to host the 2010 FIFA Soccer World Cup. Aveng Grinaker-LTA (in a joint venture) built the Soccer City Stadium in Johannesburg, the Nelson Mandela Multi-purpose Stadium in Port Elizabeth and the Orlando Stadium in Orlando while other group operations supplied structural steel for the Moses Mabhida Stadium in Durban and the Mbombela Stadium in Nelspruit. Already operating in more than 30 countries, Aveng officially opened its office in Maputo, the capital of Mozambique, in May 2013. The move helped the group consolidate its operations in that country, strengthening its overall offering in Mozambique. Aveng Trident Steel, in partnership with Aveng Steeledale, has also

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HEINRICH GEORG GMBH GEORG goes beyond only designing and manufacturing standard finishing lines. With a passion for technology our lines have been designed and manufactured for sustainable efficiency: with extremely short set-up times, easy operation with low personnel and perfect, process-controlled operations. We at GEORG have been developing technical solutions for generations to meet the technical challenges of tomorrow. Our long term relationship with our customer Aveng Trident Steel also relies on high quality technology from GEORG made in Germany.

During more than several decades Trident continues to invest in high quality lines from GEORG. A foundation of trust is grown and working together leads to success. With forward-looking investments in GEORG equipment we put our customers in the

positions to enter new business areas, to increase their production volume and at the same time set standards on the market.

In order to achieve the high customer demands regarding speed, high strip thickness and tensile strength GEORG develops special line configurations for every application. Slitting, cut-to-length and also edge trimming and inspection lines belong to the GEORG product portfolio. Single aggregates as leveling machines which can be extended by several leveling cassettes to achieve a perfectly flat material and also edge trimming shears even in a double head version for continuous running lines belong to our product range.

E. band@georg.com www.georg.com

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RĂ–HLIG-GRINDROD Rohlig-Grindrod Pty Ltd, a proudly South Africa company is honoured to be associated with Aveng Trident Steel, a leading steel supplier for automotive and general industry, based in Port Elizabeth.

We have developed a close relationship with Aveng Trident Steel during the last 5 years and have seen our scope of business changed from containerised to project and break-bulk cargo. Our functions involve managing the forwarding, clearing and transportation of a major 650 ton VW parts press machine project and 5000 ton re-enforced bars project to build Port Elizabeth’s prestigious 5 Star Boardwalk Hotel. We have customised our supply chain solution to suit Aveng Trident Steel,

this includes vessel discharge, bar coding and loading of delivery vehicles under roof thus protecting the valuable commodity from water and handling damage.

We also have a warehouse facility where containers containing steel blanks as well as coils are un-packed, stored then delivered as break-bulk to Aveng Trident Steel. We as Rohlig-Grindrod look forward to new endeavours, challenges and growth with Aveng Trident Steel. Thank you Aveng Trident Steel for making us your preferred logistics provider in the Eastern Cape! www.rohlig.co.za

Aveng Trident Steel

and comprehensive processing and service on best practices in operations and safety: centres. Its focus is on areas such as the in fact the group slogan is “Home without steel stock range, whether plate, sections, harm, every one, every day.” The company speciality steels or tube and pipe, and it offers stocks a comprehensive range of carbon, alloy to its customers de-coiling and spring steels. Additional services include automated facilities including slitting band-sawing, cropping, and guillotining. In short, ultrasonic, hardness and it offers a one stop service spectrographic testing as well to the entire spectrum of steel consumers. as heat treatment. Another Aveng Trident Speciality subsidiary, Aveng Trident Steels is a division of Aveng Sterling Tube, is based in Alrode. It manufactures and Trident Steel. Like the other Aveng Trident Steel’s stocks welded tube from companies in the group it is 2013 turnover ISO listed and highly focused 15mm through to 177mm in

R6

Billion

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PLATE • HOT ROLLED COIL • STRUCTURAL SECTIONS • RAIL • BILLETS • SLABS

The Evraz way is about delivering outstanding value in the steel industry within a safe and sustainable environment Please contact us for further information: Kefilwe Mothupi GM: Marketing and New Business Development | Tel: 013 – 6909003 | www.evrazhighveld.co.za

S P E C I A L I S TS I N HYD R AU L I C S SERVICES Design Repairs & Service Filtration Breakdowns Pumps

FACILITIES MANUFACTURING CNC Power Packs Machining Manifold Blocks Installations Cylinders Fault Finding Hose Assembly Spares Custom Projects

Tricor is a supplier of office tea, coffee, beverages, cleaning products and other items required in the workplace.

Tel: 0027(11) 902-3993/4 germhyd@mweb.co.za www.germistonhyd.co.za

Keep your factory staff motivated and refreshed with our tailor-made tea/coffee portion controlled packs which include toilet paper, soap, soup or chocolates. Ordered on a weekly or monthly basis for easier control. www.tricorbeverages.co.za

Aveng Trident Steel diameter together with an Evraz Highveld Steel extensive range of square and Today, Evraz Highveld Steel & Vanadium are one of South rectangular sections and has Africa’s largest metals producers,. It supplies metal to long been recognised as the high-tech companies across the world operating in areas supplier of choice to a variety such as machine building or energy. of industries, including EVRAZ Highveld Steel & Vanadium is a top South African furniture manufacturers, and global producer of vanadium and flat products. The company is South Africa’s main producer of structural steel automotive equipment, and thick plates, as well as the country’s second largest the conveyor industry and producer of rolled steel. With its head-office in eMalahleni, scaffold manufacturers as Mpumalanga, South Africa, its operations comprise its well as supplying air heater integrated steel works in eMalahleni and its iron ore mine, and condenser tube.

Mapochs, in the Roosenekal area of the Limpopo Province.

In a rationalisation www.evrazhighveld.co.za operation designed to combine the group’s steel business and optimise their collective value, on 1 July 2013 the steel businesses of the group were brought together under the umbrella of Aveng Steel. This now comprises Aveng Trident Steel; Aveng Steeledale, a company primarily engaged in the supply of reinforcing steel to the building and civil engineering industries; and Aveng Steel Fabrication. The new company is led by Managing Director Hercu Aucamp who formerly led Trident Steel. “The combination of the group’s steel businesses under one strong brand will generate immediate benefits in procurement and sales and, by leveraging the synergies between them, will support an ongoing

“The combination of the group’s steel businesses under one strong brand will generate immediate benefits in procurement and sales” BE Monthly | 123

Aveng Trident Steel improvement in internal Re-Bo efficiencies,” he said. “In Re-Bo is representing more than 65 years of experience the medium- to longer-term in the field of manufacturing metal cutting circular saw Aveng Steel will provide a blades - only “Made in Germany”! stronger distribution network Based on highest performance and longest tool life, by rationalising its presence numerous customers take advantage of the know-how in some market areas and and expertise that has been gained throughout this period for optimizing their cutting process. We are looking forward expanding in others.” to convince you as well!

For the time being www.re-bo.com though Aveng Trident Steel’s performance continues to be reported separately. In the 2013 financial year it recorded a turnover of just over R6 billion, an increase of five percent over the previous year achieved through higher volumes and an improvement in steel prices. This was against a challenging market environment, with demand for steel depressed and global commodity prices declining. A number of decreases in steel prices between April and November 2012 impacted stock valuations as well as sales margins and had a severely negative impact on profit margins, Aucamp reported. “These factors were compounded by unreliable supply of steel by domestic mills and labour disruptions in the steel and transport sectors which resulted in low stock levels.”

Unico (UK) Ltd. But conditions improved Unico has been a world leader in the evolution of drives in 2013. Sales volumes and and systems for the metal coil processing industry since 1967. Applications for Unico drives include uncoilers, steel prices strengthened, recoilers, temper mills, slitters, edge trimmers, flatteners/ while an increase in steel levellers, tension levellers, roll feeders, shears, presses, imports normalised low flying cutoffs, drum shears, eccentric shears, conveyors, stock levels towards the end and stackers. Embedded applications for each drive section of the financial year. “The provide pre-engineered solutions for single- or multiaxis private sector continues to integrated control systems. provide a solid baseload of www.unico.co.uk work for Aveng Trident Steel

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Aveng Trident Steel in the absence of the longawaited public infrastructure RETECON, as a leading supplier of machine tools in investment programme and South Africa has in partnership with leading international the business is active in the brands such as TRUMPF, FICEP, DMG/MORI, KOIKE, MAIR automotive sector which has RESEARCH, HEXAGON METROLOGY, OTTO MILLS and been strengthened by the many more, supplies quality machine tools to the South South African government’s African metal working industry.

Our variety of products include: vertical and horizontal programme to incentivise machining centres, turning centres, large boring mills, increased localisation.” The profile cutting and drilling lines, grinding machines, laser company’s capacity to support cutting systems, bending machines, punching and forming the growing South African machinery, automatic sawing equipment, roll forming and motor manufacturing industry tube bending machinery, manufacturing lines for tubes, was boosted in July 2011 presses, measuring equipment and much more. when it unveiled a new 630 RETECON together with RETECON SERVICE offer sales and service, calibration and product training on all ton German made blanking supplied equipment. press line at its Port Elizabeth www.retecon.co.za premises. It can press curved, trapezoidal or straight-edge blanks cost effectively, and has saved on transport costs and increasing associated local activities such imports of special steels through the Port Elizabeth harbour. “The decision to purchase this particular blanking line was to increase flexibility in this growing economic sector thus promoting a more cost effective component,” said Aucamp. The South African automotive industry ranks third among the South African economic sectors, after mining and financial services.

RETECON (PTY) LTD

630 tons Capacity of the Shuler blanking line at Port Elizabeth

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“The decision to purchase this particular blanking line was to increase flexibility in the growing automotive sector” Aveng, whose value chain spreads itself though all areas of infrastructure, is expected to be a major beneficiary of the South African government’s spending over the coming year. Aveng is already involved in the construction of Eskom’s two new

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power stations, Medupi and Kusile, and has secured a portion of two renewable energy projects in a second bidding window. As the group’s steel business unit, Aveng Trident Steel is also well-placed to benefit as a provider of specialised steel products to the

Aveng Trident Steel

local construction industry. The business has strengthened its regional network of branches in South Africa and is extending all its offerings into other markets in southern Africa, says Hercu Aucamp.

At the same time it has made strides in its social and environmental performance. In 2013 it achieved B-BBEE Level 3 certification at the same time as progressively implementing the group environmental framework as well as the energy saving project. In June 2013 it completed a successful ISO 14001 recertification audit, he adds.

Looking ahead, the steel industry is likely

to remain under pressure in 2014, with no significant improvement in prices or demand for steel. “There will be an ongoing focus on operational improvements to mitigate the challenging dynamics in the steel industry.

The labour strike in the automotive industry will have a negative impact on revenue and gross earnings in the first half of the 2014 financial year.�

For more information about Aveng Trident Steel visit: www.trident.co.za

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Kansai Plascon

Green is not just a colour Kansai Plascon (Pty) Ltd. produces paints for every imaginable application - a long term player and already the market leader in South Africa it faces a bright future in alliance with its Japanese parent company

written by: John O’Hanlon research by: peter rowlston

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Kansai Plascon

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lascon is a company with serious continues to drive innovation and excellence clout in South Africa, where it in the retail, trade, industrial and furniture had its origins 125 years ago coatings markets in South and Southern Africa in 1889. Under his own name from three strategically placed manufacturing Herbert Evans, a new arrival to sites in Mobeni, KwaZulu-Natal; Luiperdsvlei South Africa from Wales, set up a business in in Krugersdorp; and Epping in Cape Town.

Johannesburg to produce polishes, varnish – Kansai is itself something of an institution, and ready mixed tinted paints, a first for South having been founded in 1918, and grown Africa. During his lifetime, Evans, as well as to become the world’s sixth largest coatings the paint product introduced an excellent company. However its ethos fits well the floor polish and a revolutionary Best Elastic principles of Plascon and of modern South carriage varnish that could accommodate the Africa. The defining character of Kansai Paint expansion and contraction of wood. takes it well beyond the realm of products and Innovation, quality and customer service technology. Rather, it is something invisible became the hallmark of the to the naked eye, something company and the reason for that stimulates employees, the success of Herbert Evans enhances products, and & Co. Meanwhile, during improves skills – namely the Zen philosophy on which the 1940s another young Kansai Paint’s founder businessman named Solly Start of Plascon’s Katsujiro Iwai based his life.

Rudner was helping build heritage Kansai Plascon continues a company called Chrome to champion the Plascon Chemicals, a manufacturer of Plascon paint. This brand became so brand as it expands into Africa as the popular that in 1945 a new company, Plascon continent’s number one coatings company.

Paint & Chemical Industries was created. By The company already has factories and brand 1969, under Rudner’s management, Plascon presence in Botswana, Namibia, Zambia and had become a wholly owned subsidiary of Malawi – and towards the end of 2013 it took Barsab. A merger between these two leaders an important step to consolidate its regional was inevitable and in 1970, the premier presence by acquiring a controlling interest paint company in the country, Plascon in the Zimbabwean group Astra Industries Evans was formed, a 100 million litre a year including Astra Paints, Astra Industries’ major corporation, ranked amongst the top 20 paint subsidiary, which is Zimbabwe’s leading producers in the world. paint company. The deal, worth about $5.5 Today Plascon is the undisputed leader in million, places Kansai Plascon Africa at the both the decorative and industrial coatings top of Zimbabwe’s coatings market. Hiroshi market in southern Africa. Following its 2012 Ishino, president of Kansai Paint in Japan, merger with the Japanese paint giant Kansai it has said that it’s the group’s intention to

1889

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Experience Innovation Expertise

Club Travel Corporate, a Level One Contributor, is owned by the Thebe Tourism Group (TTG), the first black empowerment group formed in South Africa.

TTG was incorporated as a company in 2001 by Thebe Investment Corporation to create a uniquely South African tourism group targeting selected tourism opportunities in Southern Africa. www.thebetourism.co.za Club Travel Corporate operates as the South African partner for the GlobalStar travel consortium, providing true global servicing of our clients’ managed travel programmes and resulting in increased savings from global deals, access to the best local knowledge and greater visibility across South African borders. www.globalstartravel.com Jeremy 072 687 4314 • Jeremy@clubtravel.co.za Collin 082 331 0117 • Collin@clubtravel.co.za www.clubtravel.co.za

Kansai Plascon invest in the rest of Africa Club Travel Corporate through its holding in Kansai Club Travel Corporate are proud to have recently had Plascon Africa. their contract to manage Kansai Plascon’s travel account Astra Industries will be expanded to include the whole group. Although other TMC’s re-branding its products were invited to take part in the RFP process, we believe following the acquisition: it Kansai Plascon were drawn to our transparency, dedication operates two divisions, Astra to service and innovation. Our offer of a flat monthly fee has proven cost effective and convenient for budgeting Paints, which is the largest purposes. It also allows them to easily define their spend paint company in Zimbabwe, with a Level 1 AAA supplier allowing them to claim 168% with two factories, one recognition when completing their own submission. in Harare and the other Congratulations Kansai Plascon on reaching this milestone. in Bulawayo, and Astra www.clubtravel.co.za Chemicals, which markets and distributes a diversified range of chemical products to industry.

Zimbabwe is an important market with considerable potential for growth, however the latest acquisition is merely the first in a chain that Kansai Plascon Africa intends to make across the continent as it expands to consolidate its leadership position as the premier coatings company in Africa.

The automotive industry, increasingly established in the country, is an important industrial market for paints and coatings, and Platoon’s leading brand products, service and technical innovations have been the benchmark for automotive paint technology in Southern Africa since the 1950s. The headquarters and manufacturing facility of

$5.5 million Cost of the Astra acquisition

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Kansai Platoon’s automotive coatings division are based in Port Elizabeth, with marketing and sales offices throughout South Africa’s major financial centres of Johannesburg, Cape Town and Durban.

The company’s manufacturing facility and systems have been certified by the South African Bureau of Standards as being environmentally sustainable through accreditation to ISO 14001 Certification for Environmental Management Systems. On top of that the company has been awarded numerous Original Equipment Manufacturer (OEM) approvals by South Africa’s top motor manufacturers including BMW, DaimlerChrysler, Toyota and Volkswagen.

Plascon has a slogan: ‘green is not just a colour – it is a solution’. The company has successfully implemented Environmental Management Systems in each of its South African manufacturing plants, and attained ISO 14001 certification at all of them and is actively committed to implementing environmentally considerate practices in every aspect of its business. The environmental management programme it has developed would serve as a benchmark for many chemical companies – they are based on three key pillars of compliance, sustainability, and products. Compliance means commitment to

green processes such as the ISO certification.

Sustainability means commitment to green practices to ensure these manufacturing standards through business systems and processes. Products means continuously reviewing and innovating product lines with international legislation and with industry leading, environmentally aware products.

As a company with a proudly South African heritage and a strong sense of social

“The company has successfully implemented environmental management systems in each of its South African manufacturing plants” 136 | BE Monthly

Kansai Plascon

responsibility, Kansai Plascon is actively committed to investing in local communities and upliftment programmes across the country, as well as providing ongoing employee education on environmental and health issues. In addition to brightening the lives of thousands of children by supplying paint and in some cases, funding, to various schools, Children’s Homes, orphanages and crèches, Plascon’s involvement with the free CID University in Johannesburg has helped to train and employ many students to carry out building and maintenance work on the campus.

The company is also a member of Business and Arts South Africa, an organisation dedicated to ensuring the sustainability of arts across the region, and one of its employees

assists with its mentoring programme.

Furthermore Kansai Plascon’s support for the National Council of the Blind has helped to restore the eyesight of more than 600 people by providing much-needed annual funding for cataract operations. The Wilderness Leadership Foundation, Endangered Wildlife Trust, and the SPCA have also received assistance from Plascon – and there’s a grateful penguin in East London called Molly, who, thanks to Plascon’s sponsorship after she was rescued from an oil spill, enjoys a happy, healthy life at the local aquarium.

For more information about Kansai Plascon visit: www.plascon.co.za

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Creating quality of life

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Ciudad Empresarial Ciudad Empresarial is the largest business park in Chile and one committed to providing an excellent quality of life for everyone

written by: Will Daynes research by: David Brogan & Milton Santander

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Ciudad Empresarial

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ocated in La Rinconada El Salto, in the province of Huechuraba next to the new Financial District of Santiago, Ciudad Empresarial is the largest business park in Chile. “The concept for the business park came together in 1995,” explains Project Director, Benjamin Labra. “At the heart of this concept was a vision to create a neighbourhood of offices, residential space and retail services, the integration of which would become a milestone moment for Santiago and Chile as a whole.”

It is Ciudad Empresarial’s goal to be recognised as representing the best aspects of the Chilean business community and an urban icon capable of integrating infrastructure, innovation, service and natural beauty, all with the aim of being seen as a fantastic place to work and one that appeals to professional leaders and businesses from all walks of life.

To this end the business park is already well on its way to achieving its targets with more than 330,000 square metres of area built, in which 680 different companies are already taking residence there, meaning approximately 30,000 people today call the business park their working home. “Ciudad Empresarial has grown in such a successful way that it can now be considered to be the principle location for offices in Santiago,” Labra continues. “Across the complex there are currently 70 office buildings and 30 percent of the companies within them are multi-national, including the likes of Walmart, Kimberly-Clark, Xerox, Oracle and CNN Chile to name a few.”

So just what is it that has attracted such elite businesses and organisations to the

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business park? In truth it is a combination of factors and these include the fact that it offers the best price rates within the region and the excellent levels of connectivity it shares Santiago’s other important locations. The business park also take pride in its efficient modern building design, which call for a

maximum of six stories per block, its use of innovative technologies and the fact that the complex’s extensive green areas provide an ideal quality of life in a setting boasting a unique landscape.

“Historically the area around us was under developed with relatively high levels of

“A part of Ciudad Empresarial’s long-term goal for the business park has also been to ensure it possesses the very best levels of connectivity with Santiago” 142 | BE Monthly

Ciudad Empresarial

poverty,” states Corporate Communications and Digital Business Manager, Oscar Lazcano.

“However, since we established operations here the area has witnessed sustained growth in terms of infrastructure and employment opportunities. We began by purchasing 50 hectares of land and in time we transformed not only this land but the face of the entire neighbourhood, turning it into one of the Chile’s most important business centres.”

It is not only businesses that are benefitting from the efforts of Ciudad Empresarial. Today there are more than 1,750 families, roughly 7,000 people, residing in the surrounding area. These families are themselves now

reaping the rewards of the positive changes occurring around them, with almost a quarter of men and women in the community currently working on this project. Other benefits on offer include improvements to the local area such as the creation and distribution of car parking areas, from which Ciudad Empresarial now provides more than 2,000 parking spaces for both residents and visitors to the complex.

A part of Ciudad Empresarial’s long-term goal for the business park has also been to ensure it possess the very best levels of connectivity with Santiago. This approach has seen it become a key participant in two major

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transportation and infrastructure projects.

“The first of these projects is the Vespucio Oriente highway concession,” Lazcano says, “the construction of which completes one of the important ring roads around Santiago. The second project is the Bicentennial Cable Car system, an undertaking deemed a project of public interest by Chile’s transportation ministry.

The system, expected to be completed in 2016,

will connect the business park to Santiago’s central business district in the municipality of Providencia in just eleven minutes, transporting up to 7,000 people per hour.”

Ciudad Empresarial’s mission from day one has been to establish itself as property managers of a business park offering the market the best choice in terms of price and quality, and one capable of meeting

“Ciudad Empresarial is a principle player within Chile and much like the real estate sector in the country we continue to experience exponential growth”

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Ciudad Empresarial

the differing needs of its customers. While customer satisfaction surveys highlight that as much as 85 percent of workers at the park are grateful to be employed there, the company continues to strive forward in making it an even better place for employees and residents.

“In 2013 we augmented three intelligent environment prototypes, the first in partnership with Endesa Group and Chilectra,” Labra highlights. “These prototypes are helping to provide technical solutions to issues such as the saving of electricity, the use of efficient illumination

and the control of camera systems, as well as delivering free Wi-Fi to the people working at the business park. Meanwhile, on the outside, we also spent last year working on a detailed reforestation project in partnership with the Environment Ministry planting some 3,500 different native and exotic species of tree in the surrounding area.”

With so much progress already made by Ciudad Empresarial it can be easy to forget that it has a lot of work left to complete on the business park and its surrounding areas. Indeed, with close to 50 percent of

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This is a caption this is a caption

Ciudad Empresarial

30,000 People employed by businesses based at Ciudad Empresarial

the project now complete it expects to be at work for at least another 20 years before its job here is done.

“The estimated investment for 2014 currently stands at $100 million and includes the building of four new office buildings across around 30,000 square metres of construction area,” Labra says. “Following that we will continue to look at opportunities to add both offices and further retail and commerce space for the delivery of vital services, from supermarkets to health clinics.”

“Ciudad Empresarial is a principle player within Chile and much like the real estate sector in the country we continue to experience exponential growth of our own,” Labra concludes. “This growth is also a result of the fact that more and more leaders of multi-national companies, the likes of DHL and Energizer for example, are starting to recognise and appreciate our concept and business model, and in turn they are quickly finding out that this business park represents the best place to base their operations.”

For more information about Ciudad Empresarial visit: www.ciudadempresarial.cl

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Offshore Marine Management (OMM)

Made to measure solutions In little more than ten years Offshore Marine Management (OMM) has carved out a reputation for expertise and operational excellence in several industries, one of which being the oil and gas sector

written by: Will Daynes research by: Peter Rowlston

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Offshore Marine Management (OMM)

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ince its formation in 2003, “What we endeavour to do is allow the client Offshore Marine Management to be more involved and hands on in such a (OMM) has grown within way that ultimately we are helping them build the renewable energy, subsea their own capabilities. Our own strategy in telecoms and oil and gas sectors, recent years has involved developing further expanding from providing personnel for into operations and maintenance, and it is offshore projects to taking on turnkey cable with the type of contract that we have secured installation contracts. Indeed, OMM’s ability in the Middle East that we open ourselves up to adapt to ever changing market conditions to this area of the market and the contract has allowed it to flourish even in times of secured in the Middle East by CAOMM is an economic uncertainty. indication that our investment and strategy “Since we last spoke several years ago, we is valued and required by the clients.” have evolved further as a company to the OMM’s recent experience has led point where we went through Bruckschen to highlight that a full restructuring of the the Middle East is indeed a buoyant market, especially business at the beginning when it comes to power cables of 2013,” explains Chief and the services required to Operating Officer, Eckhard Bruckschen. “Since then we connect these from offshore The year OMM was picked up a number of key platforms to shore. This is not established contracts, one of particular strictly limited to this part of note being a maintenance the world however. contract in the Middle East secured by our “We have also witnessed a similar trend joint venture company CAOMM.” gaining momentum in Mexico, where the Within this three year maintenance contract government has recently opened up deep water CAOMM is responsible for maintaining the zones to international investment,” Bruckschen submarine power cables running between a says. “Currently there is one project underway network of platforms. Understandably there off the Mexican coast that involves the use of were a large number of players vying for this interconnected power cables.” contract, however the perfect choice was Latin America has been the source of other CAOMM. This is one of the largest submarine recent successes for the company, one of the power cable maintenance agreements more recent being the awarding of a multiin the world to date. million dollar Engineering Procure Install “One thing we have always taken great and Commission (EPIC) project, in this pride in is the fact that we are different from instance by Chilean electrical company Grupo those contractors who appear on site to provide Saesa. This particular contract is unique to a specific service and then disappear as soon Chile in that it will see OMM and its partner as the work is done,” Bruckschen continues. companies installing a submarine cable, the

2003

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Shallow Water Trenching Specialists Services • Sub Sea Product Trenching • Shore End Product Installation • Product Protection Installation • Project Planning Consultation Product Types • Fibre Optic Cable • Power Cable • Pipelines For further info & contact details visit: www.seatrench.com

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

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Offshore Marine Management (OMM) first of its kind in the country, which will join the island Seatrench AS specialise in the subsea burial of cable of Huar in the Los Lagos and pipeline products. Seatrench AS developed systems region to Chile’s Central have proven their effectiveness and efficiency in the most Interconnected System. challenging of worksites. Seatrench AS supply a reliable, “Being an EPIC contract efficient, cost effective and safe solution for product this project will see us protection in shallow water. Seatrench AS offer a worldwide service to the telecommunications, renewables and providing a full assortment of oil and gas industries. management and engineering www.seatrench.com services including cable route design, marine surveys, installation and the provision of marine resources,” Bruckschen states. “This is very much a ground-breaking project and again represents the type of work that we hope to concentrate more on in the future.”

Once again, the awarding of this contract saw OMM and its partner companies overcome a highly competitive international tender process, where the group was up against a considerable number of other organisations.

The process itself demanded that prospective companies adhere to strict regulations and provide detailed case studies and examples of management procedures. OMM’s partnership with local companies is important to OMM, and contributed to its ability to deliver this important project to its client.

The completion of the project is expected to generate massive benefits to the 520 families

Seatrench AS

“What we endeavour to do is allow the client to be more involved and hands on in such a way that ultimately we are helping them build their own capabilities” BE monthly | 153

“We will continue to spread ourselves across various disciplines and geographic regions, all the while remaining on top of market fluctuations” living on the island including huge savings on the cost of electricity, which will encourage further local investment. Additionally the island can expect to see considerable environmental benefits as the new supply will reduce its use of fossil fuels.

With Latin America proving itself to be a

154 | BE monthly

hotbed of activity and increasing exploration making the Middle East an epicentre for oil and gas development OMM has every right to feel confident about its own growth opportunities, and that is before taking into account other possibilities the market has to offer.

“In Europe we are witnessing oil and gas

Offshore Marine Management (OMM)

growth mainly coming from activity within Russia’s Barents Sea, and we believe that has the potential to create more work in the region,” Bruckschen says. “Elsewhere, all along the Norwegian coast to be exact, there are a number of existing platforms that will eventually be connected, meaning there will be a big demand for submarine cables once that work is commissioned. Decommissioning activities will continue to grow at a steady pace, while any further growth across key regions will of course be determined by future exploration.”

While being optimistic about the future, Bruckschen remains aware of OMM’s need to remain on a steady course that will allow

it to avoid the pitfalls of growing too rapidly that it stretches beyond its means. “Of course we remain open to investment in the future, however it needs to be the right match for us,” he concludes. “In the meantime we will continue to spread ourselves across various disciplines and geographic regions, all the while remaining on top of market fluctuations, focusing on our established client base and working diligently to attract new business.”

For more information about Offshore Marine Management (OMM) visit: www.offshoremm.com

BE monthly | 155

Petroleum Corporation of Jamaica (PCJ)

Securing Jamaica’s future Through its efforts to diversify Jamaica’s energy portfolio, the Petroleum Corporation of Jamaica (PCJ) is helping to secure the long-term sustainable development of the Caribbean island

written by: Will Daynes research by: David Brogan

BE Monthly | 157

PCJ

I

t was in 1975, two years after the members of the Organization of Arab Petroleum Exporting Countries (OAPEC) proclaimed an oil embargo sparking a five month oil crisis, that the concept of a State Energy Corporation was first mooted within Jamaica.

Four years later in June 1979 the government of the country established the Petroleum Corporation of Jamaica (PCJ), while the Petroleum Act of 1979 established it as a statutory corporation with the exclusive right to explore for oil, develop Jamaica’s petroleum resources, negotiate import contracts and enter all stages of the petroleum industry.

Exploration activities in Jamaica date back to the mid-1955s. It was between 1955 and 1973 that the first of two exploration phases were conducted across the country by private companies, while the second between 1978 and 1982 was conducted by the PCJ. During the first phase a total of seven exploratory wells were drilled, one offshore and six onshore, how it was with the formation of the PCJ that momentum picked up dramatically with an additional three onshore wells and one offshore well being drilled during 1980 and 1981.

Subsequent advances in geological and geophysical sciences and technologies in more recent time have allowed the PCJ to view Jamaica’s potential through a fresh pair of eyes. Indeed, recent studies and tests have shown that structures within the offshore Walton Basin is likely to contain significant economic quantities of hydrocarbons, while other blocks located on the western, eastern and south eastern sides of the nation may also possess similar resources.

BE Monthly | 159

J. P. MUKHERJI & ASSOCIATES PVT. LTD.

From Concept to Commissioning CONSULTANCY SERVICES FOR

Tendaho Sugar Factory - Ethiopia 26000 TCD Capacity

Sugar Sugar Refinery Cogeneration Ethanol

Finchaa Ethiopia - Hilo Unloader

% Feasibility Study, Agriculture and Integrated Factory Complex % Detailed Project Report % Design Engineering Services

Metahara Ethiopia 50 klpd Ethanol Plant

% Project Management and Implementation % Factory Operation and Performance % Training for Factory Personnel % Financial Analysis Report % Design of Specialized equipments (JPMA Mill Coupling, Mechanical Circulator, Fibrizor, etc.)

Evaporator Station - Baramati Agro - India

Kakira Sugar - Uganda 51.5 MW Cogen

JPMA Mill Coupling

J. P. MUKHERJI & ASSOCIATES PVT. LTD. 'JYOTI HOUSE', 172 DAHANUKAR COLONY, KOTHRUD, PUNE 411 029. INDIA. TEL: +91-20-25397303 FAX: +91-20-25399287 E mail: info@jpma.org.in Web: www.jpma.org.in

PCJ Petroleum Of Jamaica feature Today theCorporation PCJ Group text to go here....Lorem ipsum dolor sit amet, includes the subsidiaries consectetur adipisicingwhich elit, sed do eiusmod Petrojam Limited, tempor incididunt ut labore operates the group’s oilet dolore magna aliqua.

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J. P. MUKHERJI & ASSOCIATES PVT. LTD J. P. Mukherji & Associates Pvt. Ltd, Pune, India (JPMA) was established in the year 1972. Today JPMA is a globally known company specialising in providing engineering and consultancy services to the cane sugar industry.

JPMA’s main consultancy activities include providing feasibility study services, bankable detailed project reports, management services, assisting with the optimization of factory operations and performance improvement, training and orientation of local personnel, project management and implementation, and problem analysis and amelioration. JPMA also provides services that deliver energy efficiency improvement, optimization and balancing of existing plants for specific capacities.

JPMA was assigned by PCJ the task of studying the five state owned sugar estates in order to achieve the production of at least

73,000KL of fuel grade ethanol for replacing MTBE additive from gasoline. The study covered all five sugar estates owned by the Government of Jamaica and was designed to identify measures to turn around the heavy loss making units and transform them into commercially viable business enterprises on a long term sustainable basis. The solutions and recommendations put forward in study report subsequently defined the ways to enable the estates to operate at full capacity.

To date JPMA has successful completed projects, and has projects under execution, in a number of different countries including India, Ethiopia, Kenya, Uganda, Sudan, Morocco, Nigeria, Tanzania, Fiji, Mauritius, Mozambique, Bangladesh, Philippines, Indonesia and Sri Lanka.

E. info@jpma.org.in | www.jpma.org.in

BE Monthly | 161

Alternative Power Sources (APS) Limited Alternative Power Sources (APS) Limited is a fully owned Jamaican company dedicated to delivering quality services with the supply and installation of renewable energy equipment to develop the value of alternative energy sources in Jamaica and the Caribbean. APS is the leading company in Jamaica with over 350 installed systems for residential, commercial and

industrial clientele.

Our expertise in energy management encompasses residential, commercial and industrial sectors. As leaders in the field of energy management, we have pioneered the use of LED Lighting, Solar DC Pool and Water Pressure Pumps, Solar Pool Heating, Solar Water Heating and Solar Power Systems.

E. customercare@apsja.com www.apsja.com

PCJ

include extensive studies into the economic threat to its long term economic stability. It viability of peat for fuel, the construction of comes as no surprise therefore that it was hydropower plants, solar energy, biomass deemed necessary to pursue greater energy and wind energy projects, and examining efficiency and conservation opportunities in the potential of Ocean Thermal Energy the residential, commercial, industrial and Conversion (OTEC). public sectors of the economy.

Jamaica possesses one of the highest Over the last five years the PCJ has been energy intensity rates in Latin America tasked with addressing these pressing issues. and the Caribbean, with the country being Its strategy has been to implement energy audit almost totally dependent upon imported oil, recommendations in entities such as hospitals which accounts for over 90 and schools for which energy audits have been done, to percent of its total energy carry out energy audits in use. Between the years of other entities such as the 1998 and 2006 the cost of imported oil to Jamaica rose National Water Commission, astronomically from $334 to continue and enhance the The year the PCJ was million to approximately public education programme established by the on energy efficiency and $1.84 billion, a scenario Jamaican government that unquestionably poses a conservation, and to carry

1979

BE Monthly | 163

out energy audits in a sample of hotels and encourage hotel owners to implement energy efficiency measures.

For its part the PCJ also remains fully committed to its responsibilities towards sustainable development, a commitment it demonstrates via several means. The first of these is through communication and engagement, whereby the PCJ aims at all times to provide its internal and external clients with timely, accurate, clear objectives and complete information about its policies, programmes, project and objectives.

Public education, particularly when it comes to matters of energy, is always a priority for the group and it achieves this through various media formats, exhibition, workshops, seminars and other direct faceto-face meetings. Fundamental in its themes of communication are the promoting of the culture of energy efficiency and conservation, and educating people in the use and benefits of renewable and alternative energies.

Social responsible, safety and occupational health and environmental awareness are also core pillars of the PCJ. Fully aware of its responsibilities, it plays a significant role in community development through the awarding of scholarships, the promotion of science and technology, its contributions to

charities and its support of children’s homes and health institutions.

The group’s Safety, Health and Environmental Management System is based on the requirements of the Occupational Health and Safety Administration’s Process Safety Management System and of the Jamaica’s National Environment and Planning Agency.

The system has policies and procedures, which include the control of emergency planning

“PCJ also remains fully committed to its responsibilities towards sustainable development” 164 | BE Monthly

PCJ

and response, safe working practices and Industrial Hygiene Management and natural resources protection.

The latter policy also ties in with the PCJ’s principles of environmental sustainability.

Programs undertaken by the group in the past include the upgrading the Petrojam Refinery to 50,000 barrels per day to include environmental improvements such as lowering the sulphur petroleum fuels and the carbon dioxide emissions from the operations and phasing out Methyl tertiarybutyl ether (MTBE) in gasoline to the more environmental friendly ethanol enhancer.

The PCJ continues to be instrumental in not only sponsoring but also hosting various conferences and seminars that have helped to encourage dialogue among tertiary

institutions, public and private bodies and the general public. These meetings are designed to increase the awareness of the importance of developing sustainable solutions to address Jamaica’s energy situation. The PCJ has also been represented on several committees formed to provide support to national and regional growth and development. Lastly, the PCJ has made invaluable contributions to the development of Jamaica’s Energy Green Paper, 2006-2020, a paper that sets out the plan for a brighter, clean future for the Caribbean island.

For more information about Petroleum Corporation of Jamaica (PCJ) visit: www.pcj.com

BE Monthly | 165

166 | BE Monthly

Blue Sky

Sky’s the limit

Blue Sky Satellite Communications is the goto solutions provider for telecommunications across Africa: we spoke to founder and CEO Pedro Camacho about the company, its markets, and its vision for the future

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

BE Monthly | 167

Founder and CEO Pedro Camacho

Blue Sky

P

edro Camacho is an entrepreneur throughout Africa and the Middle East. with real vision. 16 years ago when At the time of start-up there were only he founded Blue Sky Satellite one or two service providers in the market Communications, the industry but the service they provided was not really was distinctly niche in character, adequate. “There was a gap – I saw it and took though even then it was becoming obvious that it, and differentiated my service by giving it was going to be a key to growth in Africa. more attention to detail,” says Camacho. “We With very little in the way of fixed telecoms service many vertical and horizontal markets. infrastructure on the continent, and that but The vertical markets include mining, Oil & poorly maintained and unreliable, cellphones Gas customers, defence, security, NGOs, quickly became the enabling technology, and government security, media and other Africa started to lead the innovative ways it is corporates.” Horizontal markets are primarily used today, famously making mobile finance defined as business, disaster management, mainstream. That worked well in populated humanitarian activities, government at areas but as a pan-African national and local level and solution it had and still has the broad NGO sector. its limitations.

It’s a difficult market to To connect the most remote define, and equally difficult areas Camacho realised that to plan for, he points out. the future lay with satellites.

Many of the above markets Of Blue Sky’s revenue He founded Blue Sky in 1997 are seasonal or depend on is from mining and O&G as a one stop shop for all the annual budgets. Mining exploration customers f luctuates with global corporate and institutional commodities pricing, while satellite needs, based on excellence of service delivery and customised disaster management depends on nature solutions for every client, large or small.

“In the satellite business you always have The company has today built up a track to be ready for the unexpected. But though record of service in most African jurisdictions you can’t predict, you can develop your with products ranging from satellite phones services to be on hand and available at the to global internet access, with both mobile right time at the right price. ‘Be prepared’ is and fixed services such as 3G access, fibre my watchword!” Though Blue Sky’s market connectivity, and corporate Wi-Fi. Blue Sky is mainly sub-Saharan, there is increasing Satellite Communications is an approved activity to the north. The resources boom service provider of Iridium, Inmarsat, across West Africa is attracting a lot of new Thuraya, VSAT, GSM, 3G Signal Amplifiers players; platinum in Zimbabwe, copper and and many other brands of satellite equipment gold in DRC, major dams an infrastructure in and other telecommunication products. the Great Lakes region; road building in Chad; It holds operating licences in territories the regeneration of Libya; oil discoveries in

25%

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Blue Sky Uganda and South Sudan; offshore gas in Tanzania and Mozambique and the hoped for recovery of the Egyptian economy – all of these are catalysing new projects whose primary need is for reliable communications and Blue Sky can take that headache away quickly and economically, he asserts.

25 percent of Blue Sky’s revenue comes from mining and oil and gas exploration customers. When entering unexplored regions in Africa, satellite communications are the first forms of communication on site. A new mining operation may start out with a very small geology team to assess the potential of

SATELLITE BROADBAND SOLUTIONS FOR AFRICA Around the world, nowhere is the immediate need for broadband more crucial than in Africa, and in particular, Central Africa, where terrestrial networks are least capable of achieving sufficient connectivity. Africa cannot afford to wait; people need to be connected wherever they are, now. Eutelsat, one of the world’s leading satellite operators, has introduced IP Easy, a simple and affordable two-way broadband access solution for SOHOs and SMEs. IP Easy helps companies and consumers in Africa to hook up with the rest of the world. Fully independent from terrestrial connections, this new platform is routed via Ku-band capacity on the EUTELSAT 16A satellite at 16° East for customers from Senegal to Madagascar. The service is now available in Southern Africa, via the EUTELSAT 10A satellite at 10° East.

Bluesky/Gigasat is our first partner to begin deployment in this region. With a one meter dish and a PC-connected modem, SME/SOHOs and

residential customers can immediately connect to the internet irrespective of location. Quality of service is guaranteed and provides identical support for business-critical applications requiring a highly reliable infrastructure, to deliver a transparent and high speed broadband connection. The cost of the end-user terminal is below today’s most competitive satellite systems available on the market. Additionally, the installation of the antenna is so simple that it can be performed without the need for specialised installers, and the terminal requires no configuration at all, further reducing the initial investment for each new site.

For maximum bandwidth efficiency, the terminal incorporates numerous advanced features such as DVB-S2 modulation and coding, rain fade countermeasures, end-to-end Quality of Service (QoS) mechanisms and state-of-the-art acceleration and compression technologies. www.eutelsat.com

BE Monthly | 171

a newly acquired licence. All they would need at that stage is a satellite phone, which they can rent. From there the needs escalate when they are followed by surveyors, a small drill rig onsite for a couple of weeks, then a camp will be set up for which a small onsite Inmarsat transceiver might be the best solution, allowing communication between the team and back to base at speeds up to 560 Kbps.

Later, when the project goes into construction and production phase it will probably need a full blown C-band system with its own dedicated bandwidth. At this point a multiple VSAT connectivity installation is provided, with separate networks for management and construction, staff entertainment and

172 | BE Monthly

Blue Sky

family communication, and mine operations.

Blue Sky can provide every stage of this progression. This way the mines can send daily updates on production and geological surveys, consumables and sourcing reports to their head offices, giving them constant real time access to their field operations.

As with cell communications, satellite

costs have dropped dramatically over the last decade. “Hardware costs are typically a fifth of what they were when we started, and today C-band capacity is as cheap as fibre capacity, and of course it is far quicker to set up, which is really important to most of our customers.”

By 2020, he adds, the continent will be so well covered by satellite that there will be

“There was a gap – I saw it and took it, and differentiated my service by giving more attention to detail” BE Monthly | 173

“Hardware costs are typically a fifth of what they were when we started, and today C-band capacity is as cheap as fibre” no reason for any business or individual not to have internet access or to be online with a smartphone or some other kind of device.

When you consider that Blue Sky’s satellite service costs around €39 a month for one GB capacity with download speeds of 4 Mbps and an upload speed of 1 Mbps the cost of a truly reliable satellite connection is comparable with European prices. At the beginning of 2013 Blue Sky was the first company to

174 | BE Monthly

offer satellite internet services on a prepaid bandwidth basis to mining companies across Africa. Prepaid bandwidth will help budget conscious new mining companies to monitor costs. With no fixed monthly costs, they can now monitor their bottom line and ensure that exploration starts within budget.

Pedro Camacho loves competition, as he observes European providers turn their attention from their static home market and

Blue Sky

waking up to the massive potential of Africa.

“It just goes to confirm that there is a lot of business out there, and these new entrants keep us focused on wanting to achieve more, do more and do things better.” Naturally, having taken pains and spent money to build up a unique portfolio of licences across the continent, developing unequalled local knowledge along the way, he is a bit cynical about what he sees as European opportunists coming in hoping to cream off the business. He describes this attitude as European recolonisation.

But any organisation looking to set up operations in Africa would be best advised to come to Blue Sky, an African company that has grown with its market and is constantly planning for the next technological leap

forward. “We are planning six years ahead,” he says. With many new satellites being launched annually, the second decade of this century and a new generation of multibeam mobile satellites being launched in the L-band and 2 GHz band promises to greatly improve the quality and throughput capability of mobile satellite services. The only certainty is that what is already an essential service for remote operators will replace earth-based networks.

“We look forward to rounding off our own second decade!” enthuses Camacho.

For more information about Blue Sky visit: www.blueskysat.com

BE Monthly | 175

176 | BE Monthly

Spur Steak Ranches

Serving up an experience As Chief Executive Officer, Pierre van Tonder explains, Spur’s commitment to delivering customer satisfaction and its efforts to improve the lives of local communities befit a brand that has become a South African institution

written by: Will Daynes research by: Jeff Abbott

BE Monthly | 177

Spur Steak Ranches

A

cross the business, we served 53 million meals in the financial year to June 2013,” states Chief Executive Officer, Pierre van Tonder. “That is almost one meal for every person in South Africa.” Such impressive numbers really speak for themselves and highlight just how iconic a brand Spur Steak Ranches has become in South Africa.

Spur Steak Ranches has been a part of the landscape of South Africa since its founder and executive chairman, Allen Ambor, opened the first restaurant in Newlands, Cape Town in 1967. In the 45 plus years since, Spur has grown into an internationally recognised brand with a portfolio of over 237 local and 28 international restaurants.

Spur Corporation meanwhile has expanded in that time to the point where it boasts two further sit-down family restaurant chains, Panarottis Pizza Pasta and John Dory’s Fish Grill Sushi, and the fast food convenience chain, Captain DoRegos.

At home on the African continent business in recent years has been very kind to Spur.

Indeed, if you look at many of the major developing cities in countries such as Kenya, Tanzania and Namibia, they all have in common the fact that new Spur Corporation restaurants have either recently opened or are in the process of being introduced.

At the same time plans are afoot for the business to enter other key markets including Ghana, Angola and Mozambique.

Doing business in Africa is admittedly a logistical challenge, however the company is not one to balk at the slow and steady

BE Monthly | 179

info@fishonline.co.za • (021) 510 5638 www.fishonline.co.za

think fish

Think Fish On Line.

Fish On Line’s primary focus is in the Foodservice and Wholesale sectors.

To these markets we supply a wide range of fillets, portions, prawn products and speciality Seafoods. We are involved in the process from design to delivery and are able to give the client commitment on price and quality based on their demand forecasts.

Distribution is made on a national level through our appointed transporters and distributors.

Wherever the market is and whatever it needs, we can deliver!

Spur Steak Ranches approach to expansion. risk of losing part of one’s This way of thinking has identity in the process. To also characterised its date this has not been the international growth over the case with Spur. last several years. In January “We have and will always 2013, a new look Spur was be a family orientated unveiled to the UK, a move business, and looking after that has been well received, families from grandparents to while in Australia, where grandchildren will always be growth has been somewhat The Spur Foundation working a big part of what we do,” van more conservative, the in the community Tonder explains. “In addition to that we consistently look company does still plan to open at least two new franchised to deliver value for money. We know as well branches in Perth in 2014. as anyone else that these are difficult times As evidenced in the past with other major for many and as such people understandably restaurant brands, in taking a business and do not have money to waste. It is for this making it multi-national, one does run the reason that we always strive to serve our

FISHONLINE Fish On Line (Pty) Ltd. is a Seafood Trading company registered in the Republic of South Africa established in 1999. However, the combined experience of its shareholders exceeds 65 years. We know fish and we are Passionate about it. Although we offer a wide range of seafood products and services, we have a very specific approach to our business.

Our Values guide our Objectives, and our Supplier and Customer Relationships are key.

The people of Fish On Line are equally important as this is our Essence and Identity. We believe in harnessing each individual’s talents to the best in order to give the service our customers have come to expect from us. Furthermore we subscribe to a code of conduct determined by ourselves, guided by industry regulations and

the Long Term Sustainability of the resource.

As registered Importers and Exporters of Quality Seafood we endeavor to supply only the best quality to our markets by sourcing from the best suppliers. To this end we have joined an international group of companies that are specialist in their individual fields. This gives us an international footprint with all the obvious benefits. For example, this gives us a risk free purchase platform as well as the product and market information from tried and tested ideas and products. Our purchase platform includes South America, Africa, Europe and the Middle and Far East.

E. info@fishonline.co.za www.fishonline.co.za

BE Monthly | 181

1967 The year that Allen Ambor opened the first Spur restaurant

customer with more than just food, we serve them an experience.”

The experience that van Tonder speaks of begins when the customer enters the restaurant to the moment they leave and incorporates everything from the inclusion of children’s facilities at its locations to the menu itself, with the company making a concerted effort to introduce special promotions for its customers. “In South Africa and several other countries we have introduced the Monday Night Burger Night, the response to which has been phenomenal,” van Tonder says, “while the response to our Breakfast Offering has seen breakfast meals going from 0.4 percent of all meals served to 14 percent.”

Of course the sometimes unsung heroes of a business like Spur and the men and women who make up its staff. Each of these individuals is supported from their first day as part of the Spur team by a comprehensive training programme led by the company’s two training centres, one in Cape Town and the other in Johannesburg.

Extensive training is provided for everyone from new waiters, waitresses and cooks, to franchise managers. “The latters’ training,” van Tonder highlights, “begins with several months of learning everything there is to

182 | BE Monthly

Spur Steak Ranches

The Spur Foundation’s emphasis is on nourishing and nurturing children

do with running a franchise, from opening up in the morning to closing down at night.

It then extends into the first weeks of the restaurant being opened where a team will be on hand to train both the back and front of house staff.”

Around two years ago Spur Corporation launched a ground breaking initiative called the Spur Training Academy. It is through this that the company takes disadvantaged individuals who display particular skills or potential and puts them through a six month

training and apprenticeship programme. Plans are also in progress for the construction of two test kitchens at the company’s training facilities and what van Tonder describes as an even more audacious goal of creating a twelve month store ownership apprenticeship programme. “We have a saying, which is ‘for the love of food’, and it is that which we want to instil in all those people who attend our training courses or one day venture into our test kitchens.”

On 18 July 2012, Mandela Day, Spur launched an initiative, with the backing of

“Around two years ago Spur Corporation launched a ground breaking initiative called the Spur Training Academy” BE Monthly | 183

FARM-TO-FORK Et Trading house- is associated with the Englezakis Group of companies. We are importers, manufactures and distributors of various food and beverage, and related products to the retail and food services sectors. We have our own abattoir and cold meat factory.

Not only do we assist our clients by improving their margins with a quality product at a very competitive price to grow their market share, we assist with the product development that sets them apart from their competitors.

Nick Englezakis | nick@et-trading.co.za | +27 (11)763-4999

Spur Steak Ranches R670,000 from its board of directors, that may well go on to define the legacy the business leaves behind for decades to come. I am referring to The Spur Foundation. Under the strapline ‘Nourish, Nurture, Now!’ the primary goal of The Spur Foundation is to uplift and improve the lives of South Africa’s families, with a special emphasis on nourishing and nurturing children. It looks to achieve this by supporting various initiatives that administer feeding schemes and provide basic necessities and amenities to children in impoverished communities.

“Spur as a business, and all of its restaurants, have always been heavily involved with local communities,” van Tonder enthuses, “however it was our desire to make an even bigger difference to people’s lives, and do so in a more focused and coordinated way, that led to the establishing of The Spur Foundation.”

Having first achieved tax exempt status, one of the first goals of the foundation was to identify its beneficiaries, a list of non-profit organisations that has grown in size over the last 18 months. Among the organisations benefiting from the actions of the Spur Foundation are

ET TRADING HOUSE Et Trading is one of the largest producers of cooked pork spare ribs in South Africa, with an extensive international and local network in the food industry. We are in a unique position in that we not only supply large companies with their requirements, but we also own franchises of the groups we supply.

This gives us the perfect understanding of what our customers and, more importantly, their customers’ needs and expectations are. Et Trading serves as this link, offering a complete comprehensive supply chain.

We do not consider ourselves suppliers, rather we see ourselves as partners in our clients businesses. By improving our clients’ margins and assisting them with

their product development it allows both ourselves and them to go from strength to strength, all the while staying one step ahead of the ever changing economic trading environment.

E. nick@et-trading.co.za

BE Monthly | 185

Spur Steak Ranches Heifer International, a US based non-governmental organisation that has been supporting rural families in South Africa since 2000, and Asha Trust, which supports early childhood development in local townships.

Other beneficiaries include, the Teddy Bear Clinic, a non-profit organisation that provides assistance, support and protection to children who have been abused, Joint Aid Management (JAM), which is currently assisting around 700,000 children through its nutritional needing programme, Creating Change, which teaches

The Spur Foundation supports rural families

environmental education and sustainability through natural gardening, healthy cooking, natural building, product development and environmental awareness activities, and Reach for a Dream, an organisation that fulfils

Parmalat SA Parmalat is one of the major players in the South African dairy industry and has been active in the South African dairy industry since 1998. Parmalat is known for its dairy innovations and quality and the company’s annual top performance at the prestigious SA Dairy Championships is testament to the company’s delivery on its promise of producing products on a par with international best standards. Parmalat’s product basket includes award-winning cheeses under the Parmalat, Simonsberg and Melrose brands, iconic flavoured milks such as Steri Stumpie, a delicious range of yoghurts and long-life milks, as well as butter, ice cream, cream and fruit juices.Parmalat’s focus on quality and innovation means that our various

teams are always on the lookout for new opportunities to launch quality and pioneering dairy products, underlining our position as a leader in the dairy industry. Apart from our South African operations, the company also boasts manufacturing, sales and marketing operations in Mozambique, Botswana, Zambia and Swaziland. Parmalat SA has appointed distributors in certain other key countries on the continent to trade on our behalf. These agreements are exclusive in all cases. In collaboration with trusted distributors on the sub-Saharan continent, Parmalat forms a strong network in Southern Africa, allowing us to continuously expand and export a wide range of quality products. www.parmalat.co.za

BE Monthly | 187

Spur Steak Ranches the dreams of children between the ages of three and 18 who have been diagnosed as having a life-threatening illness.

On a business level, it is Spur’s goal to continue to develop in other markets, however the company is well aware that the ‘golden goose’, as van Tonder refers to it, will remain South Africa where the Spur Steak Ranch brand has become so iconic.

“We expect to continue growing in South Africa, both through organic growth and by adding new restaurants: that is our primary focus,” van Tonder says. “One of the other goals we will look to achieve is the vertical integration of our core products. Our traditional model involves third party supply of everything that we use in our restaurants, with the exception being our proprietary recipes. Our plan is to begin working on achieving the vertical integration of core products like burgers, ribs and other meat products in the near future.”

As the business continues to grow and prosper, it is van Tonder’s hope that the company’s social activities follow a similar path. “Our second year plan for the Spur Foundation is to bring more involvement from a restaurant level directly into its activities,” he concludes. “Ultimately our aim is to get as many of our people involved in these activities as possible, thereby allowing us to continue to spread a little love to those less fortunate through what I must say is highly recommended and rewarding work.”

For more information about Spur Steak Ranches visit: www.spur.co.za

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the best hooks in town This year, Wagstaff Crane celebrates its 51st anniversary.

It is our mission to uphold the values and principles that have made Wagstaff Crane the leading crane outfit in the Intermountain West for the last half century

W

e strive for quality service, state-ofthe art equipment and an honest handshake.

Wagstaff is unique in our ability to grow and expand, without losing our “old school” business relations. We are widely known for being honest with clients, true to our word, and keen to developing lasting relationships.

With our extensive fleet including two GMK 7550 550-ton cranes, we

“ We also maintain the highest standards for operator qualification and experience” 190 | be directory

supply a broad spectrum of lift coverage.

The highlight of this year is the new addition of a 350-ton long boom which allows us to cater to a wider range of lift needs. Keeping our fleet at the cutting edge of industry technology enables us to accomplish work for our customers safely and efficiently. We also, maintain the highest standards for operator qualification and experience.

Our group of operators are unrivaled in experience, safety, and years of service with the same company.

Our commitment to utilize the best cranes and people in the industry sets us apart as a leader in the crane and rigging business.

To make a project run as smooth as possible our engineers and lift planners can analyze and simulate complicated lifts before our crane reaches the job site. Our planners and engineers work

WAGSTAFF CRANE

in-house and also have operating experience, this experience coupled with engineering education results in practical designs that ensure the safest and most economical solution for our customers.

Our philosophy is think safe, work safe. We boast an industry-leading safety program, and over the past 50 years we have provided safe lifting and rigging services to every industry: Mining, Refining, Manufacturing, Aerospace, Commercial, and Residential. We service our customers with the same attitude. No job is too

big or too small, whether you’ve had an account with us for 50 years, or you call us for the first time, your will receive the same excellent service!

Please contact us to learn more about the exciting innovations at Wagstaff Crane

WAGSTAFF CRANE T 801-277-3820 F 801-277-8475 E office@wagstaffcrane.com www.wagstaffcrane.com

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