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AFRICAN EDITION Issue No.9

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Africa’s Logistics company The logistics market leader across the continent supports businesses large and small

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issue no.9

8

lead story

The custodian of Namibia’s natural resources

Namibia is blessed with considerable mineral, geological and energy resources, and it is the responsibility of the Ministry of Mines and Energy to ensure that its population benefits from such natural wealth.

Transport & Logistics: 16 DHL africa

The Logistics company for Africa

DHL is the logistics market leader across Africa supporting businesses large and small in their quest to participate in the continents destiny.

16

MINING & MINERALS: 32 shanta gold

Gold from Tanzania

Shanta Gold is delivering growing cash flow and has development assets as well, within one of the most stable jurisdictions in Africa.

48 atlas copco Tanzania

First in mind and choice for Tanzania

32 4 |

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A big name with a big global reach: here we look at the mining equipment and associated support, maintenance and ancillary services it offers in Tanzania and throughout East Africa.


contents

58 Rand Refinery Responsible gold

Rand Refinery, founded at Germiston in 1920, carries a great responsibility to the industry and is an ambassador for African gold.

58 94

70 Exxaro Resources

Opening new possibilities

Exxaro Resources is defined not only by the commodities that come out of the ground, but by how they have been developed with sustainability at the forefront of every decision.

86 Xcalibur Airborne Geophysics Delivering data from the air

Xcalibur Airborne Geophysics uses industry leading technology to deliver geoscientific solutions to its clients.

94 Gem Diamonds

Diamond in the rough

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

104 First Quantum Minerals Ltd – Trident project A sustainable future for Zambia

First Quantum Minerals is ramping up its efforts to deliver a long lasting sustainable legacy to the people of Zambia, as its landmark Sentinel copper mine moves closer to start up.

116 GeoQuest

104

Servicing South and Central Africa

GeoQuest has been a principal supplier of vital services for some of Africa’s more prominent developing nations for the last 14 years. BE Africa

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issue no.9

124 Weatherly plc

The making of a copper company

Weatherly plc’s Tschudi open pit project, producing pure copper cathodes on site in Namibia, is the focus of its next stage of growth.

136 ATS Group

Mining marches on its stomach A niche facility management company that has identified and grown into its market.

124

oil & gas: 146 seven energy

Powering Nigerian performance Seven Energy is on the fast track to becoming one of Nigeria’s leading gas suppliers.

158 petromoc

Fuelling a nation

Mozambique’s state-owned distributor of petroleum products continues to expand further across Southern Africa.

136 158

174 SEADOG Commercial Diving School

Reaching new depths of diver safety Record numbers of students and professional divers are stabilising the company and helping it to focus more on the medical side of the business.

Energy & Utilities: 184 Eskom – Kusile Power Station Power to the people

How a large-scale new build project should be built for the benefit of local people and communities.

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contents

192

food & drink: 192 BevPak

PET Project

BevPak has successfully taken modern PET bottle technology into the challenging Nigerian market: now it is looking further afield.

202 Zambeef

Feeding a nation

202

Zambeef has grown from very humble beginnings to become one of the largest integrated agri-businesses in Zambia.

214 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.

manufacturing: 228 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.

Infrastructure: 244 The City of Tshwane Tshwane on the move

228

The City of Tshwane is fast-tracking a new public transport policy aimed at social transformation as much as traffic decongestion: its Bus Rapid Transit (BRT) system called A Re Yeng, is a key building block of this policy. BE Africa

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Lead story

The custodian of Namibia’s natural resources Namibia is blessed with considerable mineral, geological and energy resources, and it is the responsibility of the Ministry of Mines and Energy to ensure that its population benefits from such natural wealth Words by Will Daynes Research by Candice Nice

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Lead story

A

higher middle income country, Namibia possesses an economy that boasts both a traditional subsistence sector and a modern market sector. Since gaining independence in 1990, the government of the country has pursued free-market economic principles in order to promote commercial development and job creation. In order to achieve this it has actively courted foreign investment, however the backbone of the country very much remains its mining and energy sectors. Taxes and royalties from mining alone are estimated to account for some 25 percent of the country’s annual revenues, the bulk of which comes from diamond mining, which made up 7.2 percent of the 9.5 percent that mining contributed to Namibia’s GDP in 2011. Namibia is also the fourth largest exporter of nonfuel minerals in Africa, the world’s fifth largest producer of uranium and a producer of large quantities of lead, zinc, tin, silver and tungsten. Truth be told, the importance of Namibia’s mineral and energy potential was well known in the years prior toindependence. It was this recognition that in part resulted in the Ministry of Mines and Energy being established in 1990 to be the custodian of the minerals

and energy sector of the country. Today the Ministry is overseen by the Minister of Mines and Energy, the Honourable Isak Katali, who was appointed to the role in 2010. “The Ministry itself, in which approximately 236 people are employed, comprises of six Directorates, namely the Directorate of Mines, the Directorate of Geological Survey, the Directorate of Energy, the Directorate of Administration and Finance, the Directorate of Diamond Affairs, and the Directorate of Petroleum Affairs,” explains Mining Commissioner, Erasmus Shivolo. “The Directorate of Diamond Affairs was established in 2001, while that of Petroleum Affairs was recently added to the structure. These two additions were necessitated by the growing activities in said sectors, for example, in the diamond sector, the issues of conflict diamonds and diamond security, which was deemed to require specific attention at a high level.” Meanwhile, in Namibia’s oil and gas sector there has been an increased interest in the acquisition of exploration licences. It is this that led to the establishment of the directorate of Petroleum Affairs to pay direct attention to the administration of the sector. When it comes to the country’s mining sector, a quick glance at the

“Namibia is also the fourth largest exporter of non-fuel minerals in Africa, the world’s fifth largest producer of uranium and a producer of large quantities of lead, zinc, tin, silver and tungsten” 10 |

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Drill sampling at AngloGold’s Navachab mine, Namibia


Ruacana hydro station operated by Nampower

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list of international players currently present in the market really does read as something of a who’s who of the mining community and again brings home the value of Namibia’s mineral wealth. Names such as Rio Tinto, GlencoreXstrata, AngloGold and Anglo American all possess assets in the region, holding partial or full shareholdings in the Rössing Uranium mine, the Rosh Pinah mine, the Navachab gold mine and Namdeb Diamond Corporation respectively. In addition to the aforementioned companies, Vedanta owns the Skorpion Zinc mine and refinery, China Guandong Nuclear Power Corporation is currently developing Swakop Uranium, Weatherly Plc holds majority stakes in several copper mines, Paladin Energy owns the Langer Heinrich mine and Areva owns the Trekoppje uranium mine. We must also not forget to mention the contributions of a number of state owned enterprises operating within Namibia, for example Nampower, Namcor, Epangelo Mining Company and the Electricity Control Board, all of which fall directly under the authority of the Ministry itself. Despite the clear evidence of a strong, competitive market, Namibia has not been immune to the fact that the global mining industry has been under stress in recent times. Nevertheless, the Ministry remains pragmatic and optimistic about the state of the sector. “The mining industry is well known for going through natural cycles of demand and supply for mineral commodities,” Shivolo continues. “Here in particular


Lead story

“A number of major exploration activities for uranium, iron ore, copper, manganese, coal and other products are ongoing with the hope that viable deposits will be discovered” we have seen the uranium subsector experience a downward trend even since the Fukushima nuclear incident in 2011, while a fall in financing in the diamond pipeline has affected that subsector also. Despite these challenges, the industry continues to provide employment to some 9,500 people across the country and contributes close to N$10 billion per annum, so its significance can by no means be overstated.” Indeed, there are also significant examples of ongoing work in the country that justifies Shivolo’s confidence in the sector. “There are two mines currently under construction, one a gold mine being developed by B2Gold and the other a uranium mine owned by Husab, both of which are due to go into production in 2015. As we speak, these mines are contributing to the growth of the country by providing thousands of jobs and new skills for people, which in turn create spinoff opportunities for the wider economy. We are also buoyed by the fact that many other mines do have expansion plans tentatively scheduled to commence once economic conditions become more favourable.” On the policy and legislative front, the Ministry can today be found developing a Nuclear Fuel Cycle Policy that will state the wishes and aspirations of

government in the uranium and related industries. In addition to this, the Ministry is working on a new Mineral Bill to replace the current Minerals (Prospecting and Mining) Act of 1992, which it believes is to some extent no longer in line with the current dynamics of the industry. “We believe the future of the mining industry is bright despite the challenges created by the current economic climate,” Shivolo concludes. “A number of major exploration activities for uranium, iron ore, copper, manganese, coal and other products are ongoing with the hope that viable deposits will be discovered, while the construction of the two mines and expansions will surely add a flare to the industry. For its part the Ministry will continue to support the industry through competitive but transparent policies and legislative framework as well as the provision of data including effective services delivery, while at the same time ensuring that the people of Namibia benefit from their natural resources.”

About For more information about Namibia Ministry of Mines and Energy visit: www.mme.gov.na

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The Logistics com

This decade will belong to Africa, home t economies globally: DHL is the logistic supporting businesses large and small in th

written by: John O’Hanlon

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DHL

mpany for Africa

to six of the last decade’s fastest growing cs market leader across the continent heir quest to participate in Africa’s destiny

| research by: Jeff Abbott

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DHL

W

ith its headquarters in heralded a more integrated approach to Bonn, Germany DHL Africa. As well as looking after the South is part of the massive African business division and ensuring that Deutsche Post DHL the region lives up to the brand’s service Group, which in 2012 standards he will be preparing to grow generated revenues of over €55 billion. DHL market share in the continent as a whole. is the global market leader in the logistics South Africa will continue to lead the way, industry acting as a supply chain partner acting as a benchmark for regional business to its customers in international express growth, but it needs to take a proactive stance delivery, air and ocean freight, road and rail in easing the way for new entrants to African markets, and to that it needs to consolidate its transportation and contract logistics. DHL is rapidly becoming a household name existing continent-wide distribution networks in the over 220 countries and territories in and know how, he believes. which it has a presence, offering customers Not many MDs publicly plead insanity but superior service quality Heymans promises just that. “When I took over the business and local knowledge to at the beginning of the year satisfy their supply chain there were two big challenges requirements. There is facing the business. The first no vertical or horizontal market these days in which was more from a cultural Aircraft operated by outsourced logistics does not and behavioural perspective DHL globally play a central role, however and that was to make sure a company like DHL plays that as an organisation we a uniquely strategic role on the African become insanely customer-centric, not just continent with its unique challenges and in South Africa but across the DHL network!” opportunities. The challenges include a lack Talk is cheap, he says. A company is judged of infrastructure and the difficulties of cross- by how it behaves. border business between a very diverse group No half measures there. The second big of countries separated by language, tradition change he wasn’t to see affects how people and different manifestations of red tape: the perceive DHL in Africa. There remains opportunity is to participate in the world’s a tendency among people to have low fastest-growing economic community. expectations of Africa, being prepared to put Earlier this year DHL appointed one of its up with a second rate standard of service, from most experienced executives to head up the creaky facilities and delivered by staff who South African business division. It was no can’t really be expected to perform as well accident that Hennie Heymans had previously as their European or American counterparts. been responsible for Central Africa and the “From our perspective the undoubted Indian Ocean Islands – the appointment difficulties of working in a developing

250

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Hatfield VW Commercial delivers again. Another custom-made solution for DHL’s unique business demands.

Building on an exceptional 10-year relationship with DHL Express, Hatfield Volkswagen Commercial proves once again that service is at the heart of everything we do. With a decade of innovative vehicles, tailormade solutions and customer-service excellence, we not only meet our customers’ unique business demands, but constantly strive to exceed them. A FORMIDABLE PARTNERSHIP As the leader in international shipping, DHL Express strives to offer the mostefficient express delivery service on the planet. Currently holding a 48% market share, DHL Express South Africa is no exception. Having provided the majority of the DHL Express fleet over the past 10 years, Hatfield Volkswagen Commercial is proud to have played a key part in delivering the service excellence DHL is renowned for. This relationship began 10

20 | BE Africa

years ago with Richard Whitehead, General Manager at Hatfield Volkswagen Commercial. “I picked up the yellow pages, called DHL Express and met with them around a table to discuss the opportunity of doing business together. In the meeting our Volkswagen business partners and I met Norman George, who is today Operations Director for DHL Express. We committed to a set of service level agreements and soon after that we delivered our very first order ofVolkswagen Caddy Panel Vans to DHL Express and this formed the basis of our business partnership,” states Richard. Today, Caddy Panel Vans, Crafters and Transporters make up over 95% of DHL’s courier fleet operating countrywide. In addition to providing quality vehicles, an honest relationship and delivering service excellence are the pillars of this partnership. “It’s been a privilege to be a supplier to DHL over such a long period of time, in an industry that is not always known for loyalty. I have always been frank and honest


DHL

with customers and I firmly believe that we are still doing business based on our ability and desire to maintain the service levels we committed to when we first met with DHL Express 10 years ago. A commitment that was probably met with some scepticism,” Richard adds. Recently the DHL group implemented a global growth strategy and looked at ways to optimise a key part of the value chain - its courier fleet. Factors such as fuel efficiency, a safe and reliable vehicle, increased load capacity, ease of packing and delivery, as well as a comfortable driving cabin were key requirements to achieve its business goals. A completely customised approach was required, and once again Hatfield Volkswagen Commercial exceeded expectations. THE CUSTOM SOLUTION Speaking to DHL Express Operations Director, Norman George, he points out, “Our decision to choose Hatfield Volkswagen Commercial was based on their service offering. We have received fantastic service from them. Since the first day that I met Richard 10 years ago, he has not changed his service or commitment. He is responsive; he exceeds what is required – his follow up is excellent – and this project was no exception. They once again went above and beyond expectations to deliver and of course, we love their vehicles!” A fleet of 32 specially converted Volkswagen Crafter 35s in addition to 10 Crafter 50s were ordered for the new global fleet requirements for DHL Express South Africa. In addition to a host of standard features that distinguish the Volkswagen Crafter as a rugged, reliable and versatile van, the vehicles were ordered with a unique execution to accommodate many different load sizes and the specialised needs of the courier work station on the road. A CLOSE COLLABORAT ION Working closely with the approved body builders, Sommer, based in Germany, a demo model was customised and delivered to South Africa to be assessed. Norman George outlines, “The Crafter offered a larger load space, with customised foldable shelves for stacking of parcels and an internal door between the cabin and cargo area. This means the driver will not even have to get out of the vehicle. They can simply slide open the door, walk into the load compartment, easily find the parcel stacked according to the route and make the delivery hassle free. “Based on the demo model we received, we were able to put our new optimised system through its paces. We put the demo Crafter into the field to assess how effective the customisations would be. Our drivers found that the additional space, foldable shelving system and the internal door, helped improve their time dramatically. Our drivers were able

“Hatfield Volkswagen Commercial once again went above and beyond expectations to deliver and of course, we love their vehicles!”

to meet the new target of three runs per day. We also found that the more efficient stacking of parcels on foldable shelves meant that queries about parcels en route could be answered much easier by the drivers.” A NEW FLEET DELIVERED On 2 November 2013, the first customised Crafter 35s, complete with full customised specifications, landed in South Africa. The vehicles with full DHL Express branding were officially handed over to DHL Express in Isando and by the end of January 2014 the entire fleet of 42 Crafters were delivered to DHL Express depots in Cape Town, Durban and Gauteng. Hatfield Volkswagen Commercial in partnership with Volkswagen South Africa and Sommer delivered this custommade fleet in just five months. Always professional and dedicated, Hatfield Volkswagen Commercial successfully provided a large scale tailormade solution, proving once again that outstanding service comes standard.

Hatfield VW Commercial Division of Hatfield Holdings Pty (Ltd) 1177 Pretorius Street Cnr Jan Shoba (formerlyDuncan Street), PO Box 13643, Hatfield, Pretoria. Telephone +27 (0) 12 431 6400 Fax +27 (0) 86 683 0238 Mobile +27 (0) 82 443 6626

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Employment Law, Benefits and Industrial Relations Tel: 011 783 8711 | Fax: 011 783 8716 Email: rharper@wecan.co.za | www.cowanharper.co.za

• Drafting of Restraint of Trade and Confidentiality Agreements as well as dealing with disputes and litigation on those issues • Executive disputes and executive separation agreements and litigation • Strategic advice on collective bargaining issues, including the managing of difficult unions • Restructuring and retrenchment exercises • Transfers of undertaking / services agreements including advice on the strategic aspects of section 197 arrangements • Employment equity and affirmative action strategies and compliance and discrimination disputes as well as litigation and strategic advice on those issues • Drafting of Contracts of Employment and resolution of disputes on those contracts and fixed term contracts and Labour Broker arrangements • Labour Court Reviews and Appeals in the various courts • Unfair dismissal disputes and litigation • Performance management issues and disputes • Employment law banking issues including FAIS and legislative inter-relationships • Drafting of Recognition and Collective Agreements • Drafting of advanced disciplinary codes and procedures, grievance, performance and other policies and procedures and recruitment policies • Drafting of private dispute resolution agreements • Drafting of Labour Broker, service and sub-contractor agreements • Advice on application of Occupational Health and Safety Act and the Health and Safety Regulations including the Construction Regulations and representing clients at Health and Safety enquiries • Drafting of Project Labour Agreements • CCMA and Bargaining Council dispute resolution • Labour arbitrations • Advise on retirement fund, medical and other benefits and restructuring of benefits • Unfair Labour practices and Benefits disputes and litigation; • Advice on all labour statutes including the LRA, BCEA, EEA, Protected Disclosures Act, Pension Funds Act and Workmen’s Compensation Act • Incapacity disputes and litigation; • Fraud and dishonesty investigations where we work closely with forensic units • Executive employment contracts and company bonus, incentive and productivity schemes and agreements • On inter-related tax issues we work with leading tax advisors • General Employment law advice on strategy, tactics, employment statutes and disputes in the SADEC countries • Facilitation and mediation services


DHL continent is not an excuse. Cowan-Harper Attorneys We must make sure our Employment Law, Benefits and Industrial Relations facilities across Africa are of Department Profile. first world standards.” This Cowan-Harper Attorneys led by its employment law year alone, he reveals, DHL partners, Rod Harper and Osborne Molatudi, and other has in South Africa invested members of the employment law and benefits team have more than in the five had a highly successful working relationship with DHL. Over a period of 25 years in litigious matters and as a result preceding years together. of that association, DHL has never suffered a defeat during “We have really put our legal proceedings. money where our mouth is.” Cowan-Harper Attorneys have also assisted DHL in relation Some of this money has to establishing sound industrial relations structures and gone into upgrading DHL’s appropriate collective bargaining agreements and contracts African fleet and making of employment and when necessary directly assisted DHL sure the facilities are all when dealing with Unions. We believe that the employment law policies and equipped with the newest procedures and industrial systems implemented at technology. One of the key DHL have assisted in promoting a productive working measurables for a logistics environment conducive to the overall success of DHL. We company is transit time, and are proud of our association with DHL. the efficacy of investment www.cowenharper.co.za and technology is whether it improves the customer experience in this important respect, but don’t forget that DHL has more capacity on the ground, whether in the form of trucks or the 250-plus aircraft operated by DHL Aviation globally. There has been investment to make sure we have enough capacity to serve the growing African markets, and that investment will continue, promises Heymans.

220 Territories where DHL is present

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DHL

It’s widely agreed that the small and medium enterprises are the ones that have pegged back unemployment and driven the economic recovery in Europe, and the same is true of South Africa. One of his priorities is to grow DHL’s penetration and market share in the crucial SME sector, which is at once the most dynamic but also the fastest growing, with many businesses champing at the opportunity to expand into Africa. “These

customers are looking for a reliable partner and they are looking for experience.” DHL certainly has the experience, having been on the continent for more than 30 years, says Heymans. “Nobody knows Africa like we do. Nobody has the relationships and the understanding that we have at a local level ‘thinking globally and acting locally.’ We take that experience and expertise across to our customers as their logistics partner: we sit

“Nobody has the relationships and the understanding that we have at a local level ‘thinking globally and acting locally’” BE Africa | 25


“Our role is to be a responsible logistics partner, taking much of the pain out of the process of exporting” down in think tank sessions, we share that experience and come up with the best possible advice on how to expand their markets.” While they are keen to expand, many SMEs are held back by fear of the unknown. Expansion can be daunting, and there are cautionary tales of companies that have overextended themselves and failed. What should

26 | BE Africa

you think about when you start exporting? Which countries do you go into first? And how do you go about identifying the key customer groups in that market? “Our role is to be a responsible logistics partner, taking much of the pain out of the process of exporting. We try to play a role as a thought leader in these conversations,” he says.


DHL

With DHL on board as their partner, companies that don’t have the in-house expertise to handle forwarding, customs paperwork and the different ways things are done in different jurisdictions can gain that expertise as part of the package and become part of wider trade networks at the same time. For example, he and his DHL UK counterpart MD Phil Couchman have been having discussions with the Chambers of Commerce in both countries with the common goal of adding value for the SMEs. Of course DHL is not the only player in this market. It is in a privileged position being the market leader by a wide margin, but that does not mean the company can rest on its laurels,

he acknowledges: “We have to work hard all the time to deliver a shorter transit time and better service than those competitors.” The latest new entrant, aggressively seeking to capture market share was Dubai-based Aramex, which entered South Africa via acquisition of local company Berco Express. For Heymans this just serves to confirm his conviction that the market is buoyant. “We will carry on putting in the investment to increase the gap between us and our nearest competitors.” Meanwhile some sectors are doing better than other. Manufacturing continues to languish, but healthcare is booming as is technology. “We will make sure we continue

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CuraFin ManCo creates, delivers and managed Business Partner Programmes using traditional asset finance tools, fleet and fuel management technology and our in-house, Go-Motion, online, interactive billing platform. Our focus is to assist corporations unlock efficiencies, potential and maximum productivity through innovative application of our empowerment model.

Telephone: 011-708 1007 | Email: info@curafinmanco.co.za | www.curafinmanco.co.za

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


DHL with our investment in Curafin Manco knowledge and infrastructure Our core business centres on providing profitable and cost relating to these sectors and effective solutions to our customers (the sponsor company) growing them aggressively.” through combining all aspects of total outsourced A little less predictably, fleet management. We provide business solutions and South Africa’s agricultural management support to our customers regarding the businesses have stimulated a various elements when dealing with and structuring OwnerDriver Programmes. CuraFin ManCo is based in Fourways, spike in new enquiries as they Gauteng, but our reach spreads to Pretoria, Bloemfontein, look to establish businesses in Mpumalanga, Polokwane, Durban, Port Elizabeth, East neighbouring countries and London and Cape Town. further afield. Many countries www.curafinmanco.co.za seek to protect their industry by restricting imports. That means a company wanting to expand has to build operations with an indigenous partner, creating a whole new supply chain involving both countries. However resources are currently the big driver for inward investment. DHL may not be exporting bulk ore but the supporting services round the mining, and O&G industries is a huge business in its own right. “Many of the operations are in remote places, often with only seasonal roads or no roads at all,” says Hennie Heymans. “Our ability to fly into these places is a big differentiator for us in sub-Saharan Africa.” With its hub at Johannesburg’s OR Tambo International Airport DHL can support year round operations in resource rich areas like

“Our ability to fly into remote places is a big differentiator for us in sub-Saharan Africa” BE Africa | 29


“To get the border crossings open 24/7 would represent a paradigm shift that does not require much investment” northern Mozambique. “The infrastructure north of Maputo is nonexistent, and the ability to fly an aircraft in becomes critical – it is one of our biggest differentiators and one we guard jealously!” It’s one thing to be insanely customercentric oneself, but it would be a great

30 | BE Africa

Christmas present for him if the customs authorities in Africa could lose their senses in the same direction! On the one hand these agencies play a critical role in safeguarding the jurisdiction they serve but if they want business to invest they need to balance that role with that of becoming an enabler


DHL

as much as a gatekeeper. He says it with feeling: “If we could change that mindset it would make a huge difference and see Africa’s economy leap forward. If your goods are still in transit for five to twelve days because of customs delays, it feeds back into cash flow and cost of investment. To get the border crossings open 24/7 would represent a paradigm shift that does not require much investment.” The red tape holding up trucks and goods awaiting clearance at airports are one reason that transportation in Africa can cost up to six times as much as in Europe. Nevertheless he looks forward to 2014 and to his job of

making sure this year’s significant financial investment translates into yet better service and a better customer experience. In 2013 DHL South Africa was named by Deloitte the best company to work for, at the same time achieving double-digit growth in a sluggish economic environment. “I am immensely proud of that and I have no doubt that as we continue the journey from good to great that achievement will benefit our customers.” For more information about DHL visit: www.dhl.com

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Shanta Gold

gold from Tanzania In the present condition of the gold market, the smart money is moving from long term development projects to those that promise profit in the near future: Shanta Gold is delivering growing cash flow and has development assets as well, within one of the most stable jurisdictions in Africa

written by: John O’Hanlon research by: Jeff Abbott & Vincent Kielty

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Bauhenia Creek pit looking southwest


Shanta Gold

I

n the present climate exploration companies are really struggling to secure investment to complete drilling programmes and progress to a defined resource they can either sell on or start to develop. But companies that have already moved into production and can point to reliable cash flow are in an enviable position. Shanta Gold is such a company. The AIMlisted emerging gold producer has a lot going for it including a mine that poured its first gold in August 2012, two extensive and open resources at that location, exploration rights over extensive targets in an area long known to contain high grade gold deposits and a further, separate resource at an advanced stage of development. Mike Houston, Shanta Gold’s CEO is a South African and former CEO and Chairman of Zimplats, the Zimbabwe platinum mining company. Since his appointment in October 2012, he has been based in Dar es Salaam, the commercial centre of Tanzania. Tanzania is one of Africa’s most attractive countries, having enjoyed over half a century undisturbed by conflict, either internal or external, since its independence in 1961. That stability is at last attracting inward investment that will enable it to benefit from its abundant natural resources, of which gold is just one. When he stepped in to the job, the processing plant at the New Luika mine on the Lupa goldfield had just started to operate, but throughput was disappointing, and a primary focus in the last year has been to improve its performance and get the company into positive cash flow. This Mike has in large measure achieved, with production ramping

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one operation


Imagine one independent energy operation with expertise in sourcing, storing, blending, packaging and distributing energy products. Over the past 25 years, our success across sub-Saharan Africa has led to the creation of a number of complementary products and services. Integrating these enables us to offer the benefits of one, smooth, efficient and highly reliable operation. Imagine Oryx Energies — the fruit of the merger of AOG’s longstanding trading and downstream arms. www.oryxenergies.com

Your energy partner of choice in Africa.


industry focus: gold mining

ORYX OIL COMPANY LIMITED Oryx Energies has been supplying the Shanta Gold Mine at New Luika with diesel for its generators, since the mine’s inception. This fuel is the mine’s lifeblood and requires the fuel supplier to reliably supply products to specification, on time and in full, to avoid any interruption in operations. New Luika is a remote site, with road conditions that make transport a challenge. Oryx Energies’ affiliate in Tanzania, Oryx Oil Tanzania, has taken on this challenge and, in collaboration with the mine, has ensured that mining operations do not run dry. Even during the recent transport strike, Oryx Energies ensured that the New Luika mine received enough fuel to keep operations going. With the greater emphasis on cost reduction in many mining companies due to the dip in the gold price, a significant operational

saving for Shanta Gold Mine was identified by changing from Diesel to Heavy Furnace Oil (HFO) for power generation. Oryx Oil Tanzania will be building a facility that will provide 400m3 of HFO storage capacity to fuel the generators on site. The fuel will be delivered from Dar es Salaam. “Partners” involved in this project will work closely together to ensure that this initiative is delivered on time and that Shanta Gold can reap the benefits. Oryx Energies in Tanzania provides an integrated energy platform that masters the value chain from product sourcing to storage and distribution. We are proud of the strong business relationship we have with Shanta Gold and wish Mike Houston and his team every success in the future. www.oryxenergies.com


Shanta Gold

Excavator at dusk

“Singida gives Shanta some important growth potential in what is a relatively untouched area” up from 6,000 ounces in the last quarter of 2012 to 11,800 in the first three months of this year and 14,600 in the second. The Lupa goldfield is the second largest in Tanzania after the Lake Victoria goldfield. It produced more than 23 tonnes of gold during colonial times, and an unrecorded amount since independence. The New Saza Mine, closed in 1956, was the second largest preindependence gold producer in the country after the Geita Mine. Lupa has long been thought to be a high potential gold play

for the small to mid-sized producer, says Houston: “The bulk of Tanzania’s gold was coming from the northern goldfields at that time. But then Shanta started looking down in the Lupa area, found a number of attractive deposits and decided to build a small mine at the New Luika close to the eastern shore of Lake Rukwa and run a plant that would generate some cash flow. This would allow Shanta to tackle what was considered its premier resource at Singida in the central part of the country.”

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Shanta Gold Things changed a little when it was found that the pit was open at depth, with the potential of developing an underground operation once the surface pit was exhausted, and also that it butted against a separate deposit with even greater potential. “In the process of expanding the Luika resource they found another deposit, Bauhinia Creek,” he explains. Bauhinia Creek is a highgrade resource, which he now describes as Shanta’s cornerstone asset, containing 4.4 million tonnes at 4.9 grammes per tonne (g/t), and of that 1.9 million tonnes runs at over seven grammes per tonne, he says.

Mining from Luika pit

The existing plant is ideally placed to process ore from both deposits, as they are no distance apart. However it will need to be expanded even after all the teething problems of the original plant are behind it. “We aim to have replaced the crushing circuit by the end

COMMITED TO MOVE YOUR WORLD We would like to introduce you to FUCHS Lubricants and the range of more than 10,000 Lubricating Products that FUCHS produces in over 70 plants World Wide. Petrolube (T) Limited is a member of the FUCHS Worldwide network supplying the highest quality Lubricants and Greases to the full range of Industries from the Leading Independent Lubricant Company in the World today FUCHS. Petrolube was established in Tanzania in 1999 and has since grown to have four branches and numerous distributors throughout Tanzania. We serve the full spectrum of industries in Tanzania and therefore have an extremely diverse client

base. In addition to the Mining Sector and Cement Industry we serve other industries from Steel to Textile, to Tea, Tobacco and Transport. Petrolube has a state of art, modern design plant, utilizing a computerized Automated Batch Blending (ABB) system based on sophisticated “Supervisory Control and Data Acquisition” (SCADA). All equipment conforms to the highest industry standards. Let us show you that we are COMMITTED TO MOVE YOUR WORLD E. tech2@fuchstz.com www.fuchstz.com

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Reliable results. Fast.

At Quality Laboratory Services, our dedicated staff are made up of teams of scientists, all experts in their respective fields and suitably equipped to analyse the mineral, chemical, hydro-biological and bacteriological determinants needed for research, process optimisation and quality control.

www.qualitylabs.co.za


Shanta Gold of the first quarter of 2014, Quality Laboratory Services and also upgrade the back At Quality Laboratory Services, we deliver quality laboratory end of the plant by changing services. From a small privately owned lab we have grown from the existing incineration into one that works around the clock every day of the week, process to an elution and processing over 9,000 samples a month with a turnaround electrowinning process.” The time of less than 24 hours. necessary equipment for the Strict procedures are in place to prevent contamination. On receipt, incoming samples are given a coded reference $9 million plant expansion is number and results are emailed to you to ensure all on order, he adds. confidentiality. And finally, our turnaround times are During the year 2013 he designed to meet the most critical requirements, to give expects New Luika to have you peace of mind. produced more than 63,000 www.qualitylabs.co.za ounces of gold. Once the new crusher and elution plant are in place that will rise to an annual level of between 80,000 and 85,000 ounces. It will still be a relatively small gold mine, however Shanta is now sitting on 1,200 square kilometres of active licences and 1,300 square kilometres of applications in the Lupa goldfield, in which it now has a 100 percent interest since it bought out its former joint venture partner Great Basin Gold. “This is our ‘blue sky’ area. Lupa has numerous gold targets, whether colonial mines, artisanal workings, though at the moment we are focusing on a 20 kilometre radius round our plant.” Within that envelope intensive aeromagnetic and radiometric surveys have highlighted a number of targets that will be drilled out in the course of time.

“The Lupa goldfield is our ‘blue sky’ area”

Blast hole drill rig

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Wealth Unearthed When you unearth gold, you build stronger nations

Serving the Tanzanian Mining Industry for 15 years

AEL Mining Services – proudly supporting Shanta Gold to Unearth Wealth AEL Tanzania Dar es Salaam Tel: +255 222 77 1055 www.aelminingservices.com

t solutions d procuremen

Integrate

that work

Achieving effective use of every procurement dollar cannot be left to chance. The NET solution aligns procurement with business demands, applies intensive levels of planning to the supply chain and involves a proactive approach to stock management. The result is a bigger bang for our customer’s buck. NEW ENTERPRISE TRADING (PROPRIETARY) LIMITED Tel: (+ 27 11) 781 1387 | Fax: (+ 27 11) 326 4214 | Email: mstevenson@newent.co.za


Shanta Gold Wisely he won’t make any predictions at present but AEL is a world-class mining services company with global the upside potential for the technologies that create wealth and growth in South plant is plain, given the highAfrican, African and selected international markets. grade gold deposits the Lupa Consisting of a capable team of leading explosives services, is known to contain. engineers and scientists, AEL has over a century of For the moment though expertise and knowledge in developing ground-breaking and innovative blasting solutions that contribute to the attention is on the known creation of infrastructures in countries throughout the and immediately accessible world. AEL unearths wealth by meticulously providing the deposits. On September 18 mining industry with carefully controlled energy. the company confirmed that www.aelminingservices.com its drilling programme had established mineralisation, at very high grades between 13 and 15 g/t, below the already established resources at Luika and Bauhinia Creek. Given the close proximity of the two it is probable that a single underground mine could be built, and as mentioned before, the plant is already there. At the end of the day the mine life, currently calculated at eleven years, could be extended to a couple of decades and beyond. A little further out in both time and distance but with very exciting possibilities, is Shanta’s Singida deposit in the centre of Tanzania. Here the company holds eight prospecting licences covering around 240 square kilometres, and three mining licences over 30 square kilometres. “Singida gives Shanta some important growth potential in what is a relatively untouched area,” he says. “Following substantial drilling and a feasibility study in 2011 that indicated production of about 450,000 ounces of gold over a ten year life of mine, a positive feasibility study has been commissioned and should be ready early in 2014. It is a typically vertical deposit giving the prospect for open pit exploitation over a Mill feed bin in production

AEL

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“Lupa has long been thought to be a high potential gold play for the small to mid-sized producer�

General view of the operations

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Shanta Gold period, then good potential for underground mining.” In any mining project, investors and management alike depend on reliable analytical data and to ensure this Shanta partnered with Quality Laboratory Services of South Africa, which quickly set up a fully equipped laboratory at the New Luika minesite. Here rock samples can be accurately analysed and gold output assayed. However QL’s work does not stop there. It has a key role in the hydrological and environmental studies that are another sine qua non to successful operation in almost any jurisdiction today – so the lab, a modular unit that can be delivered without delay to any remote area, is a one-stop facility that supports both the business case for the mine and its compliance issues too. Tanzania is a very positive place to work, says Mike Houston, with cooperative authorities and a mining-friendly approach. The country is investing in its infrastructure, and he is hopeful that it will succeed in providing a reliable main grid electricity supply to relatively remote places like the Lupa goldfield. If that could be achieved, it would open the door to a higher level of expansion: as things are, only the highest grade ores can be processed economically since all the power for the plant has to be generated on site using diesel or heavy fuel oil generators. “Nevertheless, because Bauhinia Creek is so

Removing waste from Luika pit

high grade we are able to look at blending the mid-grade material of which there is a lot in this goldfield,” he points out. He has brought Shanta Gold to a very different place in the course of year. Production has been stabilised, and set on a course that will see increasing cash flow. It is getting into a very stable position with a sound production process, good growth in output and a lot of blue sky potential, both by extending New Luika mine life and developing other licences. Add to that the Singida project which should yield 45,000 ounces a year and Shanta has the realistic potential to increase production output substantially in a relatively short time frame, he believes. For more information about Shanta Gold visit: www.shantagold.com

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48 | BE Africa


Atlas Copco Tanzania

First in mind and choice for Tanzania Atlas Copco is a big name with a big global reach: here we look at the mining equipment and associated support, maintenance and ancillary services it offers in Tanzania and throughout East Africa

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

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Atlas Copco Tanzania

O

f all the economies in Africa that are waking up to the resources they are blessed with, Tanzania stands out for several reasons. Not least among these must be its stability. Though it has never been a rich country, since independence in 1962 it has hardly ever been in the news. Turbulent decades have attracted the wrong type of attention to every one of Tanzania’s neighbours: cross-border conflict, inter-ethnic tension and population displacement have too frequently characterised the post colonial era. Julius Nyerere’s African Socialism may be considered a bit passé these days but there’s no denying that it spared Tanzania from problems of this sort, and that makes it one of the most attractive places in Africa to do business today. But what are the factors that make Tanzania an attractive place for Atlas Copco to do business? The group has made a longterm commitment to this dynamic East African market. Specialising in industrial productivity equipment, Atlas Copco established a full subsidiary in Tanzania in 2007 to focus on the mining sector. The stability we have spoken about is certainly one reason for this, says Henry Ngugi, Regional General Manager for East Africa, but there are others. “Tanzania has a welldefined mining legislation, something other countries in the region are still working on. It also has the most developed mining sector in the region, in terms of production and exploration and received the largest share of investment capital in this area: all this makes it an excellent market for our range of mining

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“Tanzania has a well-defined mining legislation, something other countries in the region are still working on” and exploration equipment, tools and after sales support.” Atlas Copco Tanzania has signed equipment maintenance and spare parts supply contracts with many of the major players in Tanzania’s

52 | BE Africa

mining sector, including Africa Barrick Gold and Capital Drilling the drilling contractor for AngloGold Ashanti’s Geita Mine. Indeed most of the exploration companies in Tanzania are using Atlas Copco equipment


Atlas Copco Tanzania

and consumables. Gold mining always seems to hold its place as the most sexy sector, nevertheless with prices currently well below $1,250 and showing no immediate sign of rallying this is an industry under pressure, if not yet in crisis. But Henry Ngugi is undismayed: “Our activities in Tanzania are today focused on supporting gold mining players. Of course our customers are under pressure to operate and produce at a lower cost in order to stay in business; so our strategy has been to help them to reduce their operating costs. Several new projects have

been put on hold, so we have had to focus on keeping our existing client base satisfied, and tried to grow the consumables, spare parts and skilled labour segments of our business.” It is one of the advantages of being part of a group that has international clout and deep pockets – Atlas Copco is always prepared to invest in locations and segments that position it to serve its customers in the best way possible, he says. Of course mining in Tanzania is not all about gold. It involves a rich mix of minerals, and that is one of the sector’s strengths. If the

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Atlas Copco Tanzania most important commodities in the African context can be said to comprise platinum group metals, coal, gold, iron ore, diamond, copper, manganese ore and mineral sands, Tanzania has them all and can add its diamonds, tanzanite and other precious stones, rare earths, potash and a number of niche minerals. “In the short and mid term I think the greatest opportunities within Tanzania itself will be in gold, copper, coal, nickel, iron ore, titanium and vanadium, but definitely not limited to these! If I can extend my comments to Eastern Africa, we also see promising development in coal, copper, nickel, potash mining in emerging mining markets such as Ethiopia, Eritrea, South Sudan and Kenya.” he adds. “In a broader sense Oil & Gas is a new segment in the region, particularly in Tanzania, Uganda and Kenya.” High enthusiasm for Tanzania, where he is now based, is palpable. Henry Ngugi has amassed unrivalled experience since he joined the company in Kenya 20 years ago. That subsidiary was established as long ago as 1938, to service Kenya’s more advanced industrial sector but though its presence in Tanzania dates back only to 2003, with full local incorporation in 2007, the fact that he has led regional mining operations from his office in Dar es Salaam for the last five years reflects Tanzania’s rapid growth to its current

status as East Africa’s mining ‘tiger’. “Tanzania is already the largest mining economy in the region and the situation is changing all the time. Early development of the sector was mainly in the Lake Victoria region which is why we placed our warehouse facility and maintenance workshops in Mwanza to service the mines around Kahama, Mwanza, Geita, and the Mara region near the Kenyan border. But now we see mine companies opening up in the south near Songea, Mbeya and towards the Malawi and Zambia borders.” Tanzania has resources in every district, but the biggest challenge to developing them remains very poor road, rail and communications networks, not to mention unreliable or nonexistent electricity supplies to some of the areas. Mining companies can

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Atlas Copco Tanzania overcome the last two of these with satellite connectivity and diesel power, but the need to get equipment in and ore out can only be served by good infrastructure, and the investment for this is lagging. Nevertheless, Atlas Copco is 140 years old, and a pioneer in development of mining equipment, with access to very technically skilled people of different nationalities and it is used to supporting its clients wherever they are. “We believe we are a customer focused organisation,” says Henry Ngugi. “Since mining companies are becoming more focused on productivity and more cost conscious, we need to focus on increasing our customers’ long term productivity. All our actions are geared in this direction and it resonate well with them. Within our global organisation we have a culture that has evolved over the years and now unites us, and enables us to work towards a common aim: ‘To be first in mind and first in choice, for our customers, by delivering sustainable productivity in whatever we do’.” The company’s 120 employees are well grounded in this philosophy, which embraces the concept of continuous improvement, he concludes. “We believe that there is always a better way of doing things. We believe every single employee has the capability to contribute to the growth of their business unit by continually improving the processes for which they are responsible.” For more information about Atlas Copco Tanzania visit: www.tz.atlascopco.com

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Resp

As the largest inte the world, Rand responsibili

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Rand Refinery

ponsible gold

egrated precious metals refining and smelting complex in d Refinery, founded at Germiston in 1920, carries a great ity to the industry and is an ambassador for African gold

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

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Rand Refinery

H

oward Craig was brought in from the oil and gas industry over three years ago: his mission to breathe new life into one of South Africa’s key businesses. Rand Refinery, since 1967 the sole producer of Krugerrands and gold bars destined for the bullion banks of the world along with gold bars, is the pipeline to the market for the greater part of Africa’s gold doré – the semi pure product from the mines. Two of the largest gold mining companies in the world AngloGold Ashanti and Gold Fields between them own over 80 percent of the company: the remaining shares are held by DRDGOLD and Harmony. After 90 years the company found itself with sound but outdated processes and equipment, and faced new realities as well as changes in the global market for precious metals and the products made from them. “The first thing that needed doing,” he says, “was to establish where the company was headed, then decide what should be done to get there.” It was clearly important to make the operations sustainable: much of the technology used in the refinery itself, the smelter, the mint and the assaying operations was outdated. The shareholders were keen to invest in automation, and the brand was ripe for a makeover. It was, he says, every CEO’s dream, and today his relish for the task remains palpable. The intervening years have been spent putting this policy into practice, acquiring the best available technology and at the same time matching the company’s skills levels, enabling systems and culture to create a new brand identity that,

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while retaining the core competence of refining, would be ‘instantly recognisable as a symbol of infinite quality, sophisticated simplicity and unquestionable integrity.’ Though the market for gold and precious metals has shifted eastward in recent years, it is still centred in London, where in May this year alone gold to a value of $39.8 billion was traded, and $3.28 billion of silver. This trade is handled by the London Bullion

Marketing Association (LBMA), with which Rand Refinery has been accredited since its inception in 1920. In 2004, that relationship was elevated when Rand Refinery was appointed one of five referees that monitor LBMA’s Good Delivery standard introduced in 2001, and authorise new refineries to trade, set the standards for the market and evaluate them technically. There are just five Good Delivery referees

“Wherever you look the mining houses are investing large sums in social, health and education programmes” 62 | BE Africa


Rand Refinery

2004 Year Rand Refinery was appointed a LMBA Good Delivery Referee

in the world and Rand Refinery is the only one in the southern hemisphere. It was a huge testament to the standing of the company and its reputation in the industry. “Being an LBMA Referee is something we cherish,” says Craig, “but it brings with it a massive responsibility. We have to make sure our own technical standards are at the very top of the tree, and always set the benchmark for honesty and integrity in the industry. We look on that reputation as a gift from our former employees and management over the years, and we nurture that heritage and aim to pass it down to the next generation.” Till last year only the bullion banks could be full members of LBMA; refineries had associate membership. However in May 2012 the five referee companies were admitted as full members, a singular honour. He talks about the responsibility of LBMA membership, and it is true that a lot of pro bono work and travel is involved. That is not a problem for Howard Craig. One of the key roles of the referees has been to develop with the LBMA a set of guidelines on responsible gold. Since January 2012, the LBMA requires that all Good Delivery gold refiners comply with the LBMA Responsible Gold Guidance, formulated to ensure that conflict gold, or

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gold produced using unsafe practices, child labour or human rights abuses did not enter the supply chain. As the processor of up to 80 percent of all the gold mined in Africa Rand Refinery took a proactive part in the process. “We got in touch with the World Gold Council to understand the miners’ point of view, the OECD which had published its own guidelines, and, for the downstream trade, the Responsible Jewellery Council.”

There’s an element of self interest here, he admits. The concept of conflict gold has its roots in Sierra Leone and the DRC, but it is vital that the whole of African doré production is not stigmatised. Rand Refinery has long had its own systems to monitor its customers and track every batch they send, using third party auditors to check its own processes. “We can therefore not only say that we have met the LBMA Responsible Gold

“We are replacing our silver circuit with a completely new one, using best in class technology always with a high degree of automation”

64 | BE Africa


Rand Refinery

Guidance but that we can ourselves certify the origin of every ounce of gold we receive and that we have followed the whole train of custody from source to our refinery.” Neither is it enough to show that African gold is overwhelmingly ‘responsible’ as defined by the guidelines. By and large these certify where it has not transgressed. He is keen to tell the untold story that presents gold production across the continent as a force for good. “Wherever you look the mining houses are investing large sums in social, health and education programmes – they are in fact investing in Africa’s children. The fight against malaria and HIV/ AIDS, deficiency diseases and poor hygiene

goes hand in hand with school building, sanitation and clean water programmes and local agriculture schemes to paint a positive picture that opposes the cases of exploitation that do undoubtedly still occur.” Turning the role of policeman into a marketing opportunity was a short step. In May this year Rand Refinery launched its RandPure brand to augment the finished products it makes at the refinery. Not only are these products certified under the WGC and LBMA guidelines as being traceable and free from conflict gold, but they are also certified as coming from virgin gold doré. That means they do not contain any recycled or scrap gold whose provenance is

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harder to trace. That pleases the downstream market, and the miners like it too, because it ensures that their WGC certified conflict free bars don’t get mixed up with ‘grey’ gold at any point down the line – in other words the logistics chain is as responsible as the production and refining streams. The launch of RandPure was part of a broader strategy, Craig explains. “One of the things we quickly realised when looking at our strategy after my arrival was that Rand Refinery had not launched any new products in about ten years – maybe longer. We were missing some key classes of

66 | BE Africa

product. One was minted products – the high end investment bars that normally come, beautifully designed and stamped, in fine packaging with tamper-evident seals. We also said there was an opportunity in jewellery products, and both these types of product can be branded RandPure.” The company invested in setting up a minted product line which can mint both bars from 100 down to two grammes as well as coins. It then started to set up a global distributor network to ensure there were robust marketing channels for these products. To penetrate the European market Rand


Rand Refinery

“Rand Refinery’s RandPure brand is the only gold product that can claim complete knowledge of the source doré through to the fabricated product” Refinery set up an exclusive distributorship with a Geneva company called International Gold Trust (IGT). The distributor’s own account is a measure of Rand Refinery’s standing. “This exclusive appointment provides IGT with the world’s highest quality

gold ethically sourced and provided by a refiner whose integrity and market standing is unprecedented. Rand Refinery’s RandPure brand is the only gold product that can claim complete knowledge of the source doré through to the fabricated product. At no point in time does the metal leave the control of Rand Refinery giving a unique product to the consumer – responsible gold sourced from the earth, not from recycled products.” Also in May Rand Refinery appointed Dallas-based Dillon Gage Metals as its exclusive distributor in North America. For the minted products, a trading team was set up in Singapore two years ago to explore the very large market that exists for gold products in India, China and East Asia. To be able to supply the anticipated demand this will generate, new equipment for producing minted products has been installed, and cast bar production lines at Germiston have been modernised and its level of automation increased using state of the art robotics. Alongside its launch of the RandPure brand and the new range of options for customers to invest in gold came the announcement in May of a jewellery range produced in partnership with South Africa’s largest jewellery manufacturer OroAfrica. Since RandPure can only apply to gold manufactured under

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Rand Refinery direct control of Rand Refinery, OroAfrica set up its own facility within the refinery. The range, starting with rings and sold under a new brand name, Absolute, are expected to sell very well in the markets where it is available, currently South Africa, Canada and the USA and Hong Kong – and customers can be confident they are buying certified virgin gold, responsibly mined and containing no scrap of untraceable material. Investment will continue till all parts of the refinery have been thoroughly modernised. “We are replacing our furnaces shortly, and replacing our silver circuit with a completely new one, using best in class technology always with a high degree of automation.” The refinery’s smelter, he adds, will be a major driver for growth in the years ahead. With an annual capacity of 1,500 tons, it uses a pyro-metallurgical process to concentrate low grade materials into a semi concentrated product that is further purified at the main refinery. Additionally it has a recently added copper circuit that can produce up to 500 tpa of copper cathode from the scrap feed, much of it from Asia. To streamline the process Rand Refinery has now set up an assaying facility in Singapore, to give its Asian customer a same-day service and much faster payment. In the coming five years, he hopes, local in-country pre-treatment facilities could speed up the supply of recycled gold and silver to the main refinery. For more information about Rand Refinery visit: www.randrefinery.com

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70 | BE Africa


Exxaro Resources

Opening new possibilities A world-class commodity portfolio that has been developed with sustainability at the forefront of every decision

written by: Will Daynes research by: Candice Nice & Robert Hodgson

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Exxaro Resources

B

uilding upon a pedigree and wealth of skills that stretch back decades, Exxaro Resources may be a relatively young business, but it has already solidified itself as one of South Africa’s largest diversified resources groups. Boasting interests in coal, mineral sands, ferrous and energy commodities, it is the country’s second largest coal producer with current production levels reaching 47 million tonnes per annum (mtpa). Exxaro’s diverse commodity portfolio helped the company record assets of R37 billion and a market capitalisation of R60 billion as of the end of 2011. Exxaro’s eight managed coal mines produce power station, steam and coking coal, as well as char. The company is the largest supplier of power station coal to South Africa’s national power utility, Eskom. Exxaro’s Grootegeluk mine is one of the mostefficient mining operations in the world, and operates the world’s largest coal beneficiation complex, where 9,000 tonnes per hour of run-of-mine coal is upgraded in six different plants. Situated 25 kilometres from Lephalale in South Africa’s Limpopo province, this open-pit mine has an estimated minable coal reserve of 2,800 metric tonnes and a total measured coal resource of 4,600 tonnes , from which semi-soft coking coal, thermal coal and metallurgical coal can be produced. Some 14.8 metric tonnes of annual production is power station coal, transported directly to Eskom’s Matimba power station on a seven kilometre conveyor belt. Grootegeluk also produces 2.5Mtpa of semi-soft coking coal, the bulk of which is railed directly to

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The missing piece in your project Stefanutti Stocks

- a multidisciplinary construction group with a footprint in South Africa, Africa and the Middle East - proudly associated with a variety of Exxaro’s projects.

We undertake projects in the following industries: building, environmental, heavy industrial, marine, mining infrastructure, petrochemical, power, telecommunications, transport nodes, transport infrastructure, water and waste water treatment.


Exxaro Resources Mittal SA under a long-term supply agreement. Such are the demands for power in South Africa, however, that Grootegeluk’s capacity is being doubled in order to supply Eskom’s new Medupi power station. The $1.3 billion Grootegeluk Medupi Expansion Project (GMEP) will increase throughput to 14,000 tonnes per hour, and supply Medupi with 14.6Mtpa of coal for 40 years. Since its formation as South Africa’s largest BEE-empowered diversified resources company in November 2006, Exxaro has built itself upon a brand promise, which is “Everything we do and deliver today will allow others to realise their vision

STEFANUTTI STOCKS Multidisciplinary Stefanutti Stocks is a leading South African construction group with the capacity to deliver a range of projects of any scale to a multitude of clients in diverse markets. The group operates across South Africa, sub-Saharan Africa and in the Middle East and has been successful in strategically positioning itself across many industries with its portfolio of both conventional and niche skills. The group operates through its business units of Building; Mechanical & Electrical; Power; Roads, Pipelines & Mining Services and Structures. It is one of the few construction companies in Africa that can offer clients a full range of services, including a single point of responsibility on multidisciplinary projects. Mining capabilities Stefanutti Stocks’ divisions boasts a wealth of experience and expertise in the design and construction of mining infrastructure as

well as the provision of professional services in the fields of open cast contract mining, bulk material handling and waste residue disposal and recovery facilities. It offers mining clients geotechnical and piling, infrastructure earthworks, water treatment plants, road rehabilitation and surfacing, a broad spectrum of civil construction, mechanical & piping and electrical & instrumentation supply, installation and commissioning. Stefanutti Stocks has undertaken a variety of projects for Exxaro, ranging from the construction of the largest coalbunkers in the southern hemisphere; to structural steel work, piping, wet services and mechanical installations of a blending and load-out SMPP, through to the construction of numerous major housing contracts. www.stefanuttistocks.com

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Seen

Contact us today and put your company in the spotlight!

vincent@bus-ex.com


Exxaro Resources tomorrow�. It is this promise that the company states has Trollope Mining Services (2000) (Pty) Ltd is a Level 4 influenced its drive towards BBBEE rated company providing the services of opencast sustainable development. mining, crushing, screening and rehabilitation. Established For Exxaro, sustainability in 1975 the company boasts a substantial fleet of is about securing the future. equipment and has enjoyed a sound working relationship Our aim is to harmonise with several well-known companies over the last three decades, including Xstrata, Exxaro, Continental Coal, Sumo business, community and Coal & Anglo American. env i ron menta l needs www.tmsgroup.co.za and obligations to enable Exxaro to achieve its founding goal of being a company that makes a positive social and economic contribution to South Africa. One of the ways it is achieving this goal is through the development of its employees and stakeholders. The company’s approach to its people is guided by a comprehensive suite of policies covering employment, labour/management relations, occupational health and safety, training and education, diversity and equal opportunity. Supported by the leading practices developed in recent years, Exxaro concentrates on exceeding compliance targets in South Africa by training and development to maximise individual potential, equality and safety in the workplace, meeting its employment equity targets and improving standards of living in its stakeholder

trollope mining services

2006 The year Exxaro was formed

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A global leader in the steel and mining industries

VR Steel is committed to excellent customer service through research and continuous product improvement. John van Reenen (South Africa) | Tel: +27 11 864 7630 | Email: johnvreenen@icon.co.za Head Office Tel: +27 11 86 4 7630 | Fax: +27 11 864 7629

www.vrsteel.co.za


Exxaro Resources communities. Collectively, its initiatives are also contributing to reducing the shortage of skills in the industry. Through its human resource development policy, Exxaro aims to develop and sustain core competencies and maximise human resources to meet the group’s strategic objectives and improve operational performance, while also creating a learning culture by assisting and facilitating the process in which employees and their dependants take responsibility for improving their own educational and competency levels. Further aims include ensuring the integration and uniformity in all learning and development processes by

VR STEEL Rope Shovels have overhauled large surface mining operations around the world. These colossal machines are the preferred choice for any world-class mine. Van Reenen Steel is the official agent for Taiyuan Heavy Industry (TZ) in Africa. The Grootegeluk Medupi Expansion Project (GMEP) necessitated two additional rope shovels, with more to follow in the coming years. Two WK-35 series rope shovels were delivered to Exxaro Resources, Grootegeluk coal mine in July 2012. The shovels took 3 months to build on site, and went into service at the end of that year. These shovels, which have 44 mÂł coal dippers, are the first TZ shovels to be delivered in Africa. Sifiso Magagula the, Director of V R Mining Products, says that the skills being transferred from China will not only be

beneficial for the workers at Exxarro but also local artisans that are part of the maintenance team. VR Steel recently broke into the North American market by delivering its first U.S manufactured dragline bucket to Three Oaks Mine in Texas. This bucket, which weighs 136,400 pounds, was shipped from Conroe, Texas, where it was built by local fabricators. Lauded for its innovative haul truck body design, VR Steel has delivered two of its biggest truck bodies, with 360 ton carrying capacity to Swakop Uranium mine in Namibia. Further delivery of truckbodies and buckets are expected to the Democratic Republic of Congo in the first quarter of 2014, and to a number of other Southern African mines. www.vrsteel.co.za

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Exxaro Resources leveraging technologies, African Reptiles & Venom supporting and reinforcing African Reptiles & Venom was founded in 1999, by lifelong its values through learning snake enthusiast Mike Perry, to supply snake venom for initiatives, making sure that antivenom manufacture. These antivenoms are suitable these are career-focused for treatment of snakebite in Sub-Sahara Africa. and aligned with business The main business of the company today comes from objectives, and establishing provide a Snake Id & Snakebite Treatment course. The course covers the recognition of dangerous snakes, the life-long learning as the different venoms & symptoms of snakebite, the correct major thrust of learning first aid treatment, the medical treatment and finally the and development. recognition of allergies and their treatment. A Venomous While its portfolio in coal, snake handling course is offered as well. mineral sands, base metals Approximately 5,500 people have been trained by Mike, with and ferroalloys has been well nobody being bitten by a snake during 12 years of courses. documented, Exxaro has also www.africanreptiles-venom.co.za recently been increasing its exposure to iron ore through its interest in Sishen Iron Ore Company and its acquisition of African Iron in early 2012. Since assuming direct management and operational control of African Iron the company has completed a broad financial, technical and operational review of its projects in the Republic of Congo, one of the major ones being the Mayoko iron ore project. Early findings from the project at Mayoko indicate that this mine has significant potential in terms of resource quality and size, with much of the groundwork for this near-term development opportunity in an emerging iron ore province already completed by African

“Exxaro Resources may be a relatively young business, but it has already solidified itself as one of South Africa’s largest diversified resources groups� BE Africa | 81


Bonec Lubrication Equipment Suppliers of specialized greases, gear lubricants, hydraulic fluids, metal working fluids, automotive lubricants, environmental control products as well as lubrication systems for various applications in all industries. With a wide range of products and our drive for customer satisfaction and after installation support services we can be your solution to any crisis. Supplying from environmental control and cleaning agents for industrial use to Earthmoving Wearparts. www.bonec-le.co.za


Exxaro Resources Iron. The project currently has a JORC -compliant mineral resource of 685 metric tonnes of iron ore, consisting of a hematite cap of direct shipping ore (DSO) at 55 percent Fe and beneficial DSO ore at 41 percent Fe. With a revised exploration programme and accelerated drilling, production began in 2013. This has already begun to be an economic boost for the small village of Mayoko and the broader region, from which much of the required labour will be drawn. Exxaro is also currently investigating additional regional potential in terms of size and quality, with exploration drilling under way at Ngoubou-Ngoubou, adjacent to Mayoko, Mt Lekoumou and Mt Mipoundi.

BONEC LUBRICATION EQUIPMENT Bonec Lubrication Equipment is based in South Africa in the Limpopo Region. Through the years we have become specialized in using a wide range of products and equipment. The first range of specialities lay in the use of automatic lubrication systems. We meet the needs of our customers by installing and maintaining all types of lubrication systems, including Single Line, Dual Line and Progressive Systems. Our second range of specialities come in the form of G.E.T ‘s, ground engaging tools, which we supply and manufacture for use alongside all earthmoving equipment. The third range of specialities rest in the use of high quality lubrication equipment and products, from foot pumps to air operated double diaphragm pumps, measuring from 1/4” up to 3” .We also handle all types of grease

pumps, including hand pumps, pneumatic pumps, hydraulic grease pumps and electric grease pumps. Bonec also specializes in the use of a Heavy Equipment Vision solution camera system. We have a massive range of products and the best thing about them is the warranty. We don’t repair them, we replace them immediately, and there is a ten year warranty on the cameras and five year warranty on the monitors. Bonec also supplies many of the sectors’ leading environmental products like Absorbent, Hydro Carbon spill kits and much more. Bonec are proud suppliers of Carl Bechem Africa. Together we supply one of the best grease products and have a huge range of greases for every application available, as well as a wide range of oils. www.bonec-le.co.za

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Exxaro Resources

R60 Billion Exxaro’s market capitalisation as of the end of 2011 Prospects for iron ore from this region are promising and the shortfall in lump ore production, due to growing production from Brazil and India, means production of pellets could double by 2021. For Exxaro, unlocking the full potential of this opportunity will require an intense focus on capital intensity to move Mayoko further down the US dollar per tonne scale, where it is already positioned in the lower half. Exxaro has proven already time and again in South Africa that it has the expertise and experience to develop a large scale mining project from conceptual phase to production. The company’s track record showcases its extensive engineering capabilities in design, operational expertise, maintenance and project management, as well as its experience with bulk mining, opencast and underground operations, beneficiation and downstream processing and value-added products. It is characteristics like these that leave little doubt that the future of the Mayoko mine, and other projects yet to come, is in good hands. For more information about Exxaro Resources visit: www.exxaro.com

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86 | BE Africa


Xcalibur Airborne Geophysics

Delivering data from the air With its pilots at the controls of its reliable, robust fleet of aircraft, Xcalibur Airborne Geophysics is using industry leading technology to deliver geoscientific solutions to clients across Africa

written by: Will Daynes research by: James Boyle

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I

n a little over ten years, South Africa based airborne geophysical company, Xcalibur Airborne Geophysics has successfully collected over three million line kilometres of low level data for its client base of major mining companies and junior exploration businesses. Specialising in ultra-high resolution and standard airborne surveys, utilising gradient magnetics and radiometrics, time-domain electromagnetics and gravimetry, Xcaliber’s fleet of robust turbine Air Tractors, BN-2T turbine Islanders, Jet Rangers and Eurocopters have since been operational throughout the African continent. “Since its formation in 2002,” explains Chief Geophysicist, Tiaan Le Roux, “the company has grown from a small team of about four or five people to one that today employs just under 20 individuals, including geophysicists, data processors, engineers, pilots, field operators, and support personnel.” Originally founded by Billy Steenkamp, Xcalibur today possesses a team who collectively offer more than 100 years of managerial and practical experience in fields including exploration geophysics, aviation, business management, electronic engineering, and airborne survey operations. The company’s pilots are some of the most experienced in their field, amassing thousands of flying hours between them. The aforementioned fleet of aircraft at these pilots’ disposal are unique in that they enable Xcalibur to collect data at the lowest ground clearance that is possible within operational safety constraints, typically between 20 and 40 metres. Flying at such altitudes provides for better spatial resolution

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Xcalibur Airborne Geophysics


and data signal-to-noise ratios, thus resulting in significantly more detailed information for kimberlite detection, base and precious metal exploration, litho-structural mapping and environmental or mine planning applications. “We recognise the fact that we are very much a company delivering a niche service, and what we take great pride in

is delivering excellent quality products in the most cost efficient way possible,” Le Roux continues. “The technologies that we employ are among the most advanced and modern of their kind and are mounted on airborne platforms that are really robust and conditioned for use in Africa. These aircraft are characterised

“Xcalibur Airborne Geophysics has successfully collected over three million line kilometres of low level data for its client base”

Hi-Res Fixed-Wing Surveys

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Xcalibur Airborne Geophysics

Hi-Res Helicopter Surveys

by their endurance and low data quality is maintained. maintenance costs, which High sensitivity wingtip helps drive our costs down. mounted or boom mounted Ultimately we pass these magnetometer sensors and state of the art multi-crystal savings onto our clients The year Xcalibur together with quality data.” pack spectrometers are used Airborne Geophysics The airborne platforms to measure exceptionally was established small variations in horizontal that Le Roux speaks of are magnetic gradients and equipped with state of the art navigational, positioning natural radioactive emissions. Xcalibur’s geophysical ser vices, and geophysical equipment. The Differential Global Positioning System (DGPS) allows individually trademarked as the Xtract, the for accurate positioning of better than one Xgrad and the Xgrav Systems, are further metre, while the navigational system allows boosted by the company’s value add data for accurate dynamic navigation along pre- processing and interpretation Xval service. determined flight paths, which will ensure that “This particular service aims to offer

2002

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“Xcalibur’s technology and efficient services have consistently produced first class results time and again” our clients a more complete package of services,” Le Roux states. “Rather than simply acquiring the data and passing it back to our clients, our own extensive geophysical and geological experience means we can offer consultancy services that cover a wide range of methodologies and applications with the

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view to properly integrate the information we collect with other geoscientific data.” Xcalibur’s technology and efficient services have consistently produced first class results time and again. It is this level of consistency that has seen the company being awarded numerous projects by a wide range of major


Xcalibur Airborne Geophysics

mining and exploration companies, junior and government organisations. Such projects have allowed Xcalibur to prosper where others have struggled during the recent difficult times for the mining community. In the coming months Xcalibur will be moving forward with the introduction of its newest solution, the XtractEM System. “There is a strong demand in the market today for combined high resolution magnetics and electromagnetics,” Le Roux says. “The reason for this is that some of the targets of our airborne applications only have very subtle magnetic signatures. By acquiring electromagnetic data, in addition to

magnetics and radiometrics, one can often not only confirm these targets, but also better delineate and characterise them, which gives clients the confidence needed to follow up and drill these prospects.” While completing and testing the new XtractEM System, Xcalibur will continue to build upon its growing reputation for delivering first class results and services to its clients. For more information about Xcalibur Airborne Geophysics visit: www.xagsa.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 the 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” 102 | BE Africa


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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A sustainable future for Zambia 104 | BE Africa


First Quantum Minerals: Trident project

As its landmark Sentinel copper mine moves ever closer to commissioning and start up, First Quantum Minerals Ltd is also ramping up its efforts to deliver a long lasting sustainable legacy to the people of Zambia

written by: Will Daynes research by: Richard Halfhide BE Africa | 105


A

s is typical of First Quantum, the project is doing very well and is progressing on-time and to budget.” Those were the words of John Gladston, Trident Resource Optimisation Manager, when we spoke during the summer of last year. The project he was referring to was of course the Trident project, the largest single project investment in Zambian history. Now with 2014 well under way I find myself receiving an update on the project from Deputy General Manager, Tristan Pascall, and the message is very much the same. “The dry season that runs from March to around November in Zambia presented us with a major opportunity to leap ahead with our activities,” he says. “Come the end of December the project was at approximately 74 percent completion and that matches up with our schedule and our budget very well.” Located almost 150 kilometres west of Solwezi in north-west Zambia and containing five mining licences over some 950 square kilometres, the Trident project encompasses both the Sentinel low grade copper mine and the Enterprise nickel mine. The Sentinel processing facility of the former will have a target throughput rate of approximately 55 million tonnes per annum of ore at an average grade of 0.5 percent copper. It is estimated that the mine will ultimately provide an annual production rate of around 280,000 up to 300,000 tonnes of copper, with its mine life estimated to be in excess of 15 years, and with possibilities to increase with future successful brownfield exploration. A strong year of productivity in 2013 has

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The Sentinel process plant will produce 280,000 to 300,000 tonnes of copper per annum at full capacity


First Quantum Minerals: Trident project


$6,335 Sentinel’s approximate capital cost per installed annual tonne of copper production

First Quantum has been working with the Zambian Ministry of Health to combat malaria in the communities around the Trident project

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seen the company reach a point where it has now placed some 96,500 cubic metres of concrete and put up around 9,100 tonnes of steel across the project site. At the end of December more than 13.4 million man-hours had been completed on the project, against a lost time incident (LTI) rate of 0.06. The mining fleet at Sentinel has come along leaps and bounds in the last six to twelve months with the first truck, a 250 tonne capacity 860E Komatsu vehicle, receiving its first payload. The first 330 tonne 960E Komatsu truck was recently rolled into the completed fleet maintenance shed as well. Similarly a Komatsu PC5500 unit, the first of three units, has been released for work and the first of three CAT/Bucyrus 7495 is close to commissioning. A number of other important parts of the fleet have and continue to be delivered on a daily base from First Quantum’s contractors and suppliers. Meanwhile, from a construction perspective, work on Sentinel’s second two trains of 40 foot diameter by 26 foot length (28MW) SAG and 28 foot diameter by 44 foot length (22MW) ball mills continue to gather pace with the Gearless Motor Drive windings recently installed within SAG mill 2, whilst rubber lining of ball mill 1 is now underway.


First Quantum Minerals: Trident project

Minimal numbers of contractors are used at Sentinel, rather First Quantum employs skilled overseas artisans who train local staff on the job

The company has also commissioned the site’s four one megawatt power gen sets, which are now providing site reticulation of construction power. The units will also provide the permanent back up power facility for the site when Sentinel is connected to the state-owned power company ZESCO. Foundations for the first 19 towers for the 68 kilometre power line to connect Sentinel with

the main ZESCO grid at the Lumwana mine have been installed, and the line is expected to be commissioned by June 2014. In the housing area all 600 concrete slabs have been completed for employee housing, which will be offered to local staff for purchase under an affordable mortgage scheme. More than 60 of these houses are now occupied. In addition the team has completed roofing

“Come the end of December the project was at approximately 74 percent completion and that matches up with our schedule and our budget very well” BE Africa | 109


“First Quantum is one of the biggest contributors to corporate social responsibility initiatives in the country” works on all 84 senior houses, and more than 30 houses and 40 singles quarters have been released for occupation “Another major step forward for the project in the last year has been the receipt of full environmental approvals for all works outstanding at the main Sentinel project,”

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Pascall states. “In particular these approvals cover the sites’ process water dam, tailing dam and various resettlement areas. This is an important step forward for the project and means we can now set our sights on achieving the same approval for the Enterprise mine.” As Business Excellence has covered


First Quantum Minerals: Trident project

The 14km pipeline to the Chisola Dam will supply process water to the plant

previously in some detail, First Quantum has fast-established itself as a hugely important contributor to the upward social development of Zambia and one that endeavours to highlight its own commitment to sustainability through actions as well as words. “Today 4,700 people are employed at Sentinel, 82 percent of whom are Zambian,” Pascall continues. “Of these 3,800 local staff, roughly 1,700 come from the country’s North Western Province, with around 750 from the villages that lie on our doorstep. This underlines the impact the construction of the mine has had on local employment, while on a country-wide scale we remain one

of the biggest tax payers, paying out more than $2 billion to the Zambian government in the time that we have been here.” In addition to tax and revenue generation First Quantum is also one of the biggest contributors to corporate social responsibility initiatives in the country, investing in excess of $20 million on various entitlement and community upliftment programmes across the area surrounding the mine. “These programmes include the rebuilding of four rural health centres, the construction of a police station for the local force, two new schools and the renovation of the District General Hospital,” Pascall says. “We

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“We feel we have the right people in place and they will continue to be supported by a fantastic Zambian workforce�

The crushed ore stockpile at Sentinel has 80,000 tonnes of live capacity and is roughly the size of Lusaka football stadium

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First Quantum Minerals: Trident project also continue to promote conservation farming and this work has seen local farmers successfully increasing their yields by up to 250 percent through better management and access to inputs such as lime and fertiliser.” It was also during 2013, April to be exact, that First Quantum formally submitted its application for the area under construction around the mine site to be classed as a Multi-Facility Economic Zone. “In the time since then we have received some good initial The Sentinel workforce have been employed from across the country feedback from government,” including more than 1,750 from North Western Province Pascall enthuses. “While such an initiative doesn’t benefit the mine launched with the local community to directly as such, what we want it to do is protect neighbouring forests and the valuable encourage people to come in and invest in ecosystems they support. Once we begin to this region, so it is really about promoting create revenue from Sentinel we anticipate local procurement and local business that such programmes will expand further.” development. This application continues to For all of the company’s achievements in move forward and we excitedly await the 2013, 2014 is poised to be an equally, if not government’s next move.” more, momentous year for First Quantum This all plays into First Quantum’s desire to and the Trident project as the operation leave behind a long-lasting positive legacy in moves towards commissioning and start-up. the region that far exceeds its own presence Upon start up the company expects to have and that of the mine site. “Our work here the required power available from the is far from over and we have several other single circuit 330kV power line to Lumwana programmes that we are hopeful of getting which is adequate to run one of its two under way in the near future, as well as milling trains. Full power is then expected some that are in their infancy,” Pascall to be in place by the end of the year from enthuses. “Such projects include a Joint Forest a longer twin circuit 330kV power line via Management initiative that we have recently Mumbwa and that in itself will be a massive

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A view over the flotation area of the plant towards the copper concentrate building and storage shed


First Quantum Minerals: Trident project milestone for the project. The timing for full commercial production during 2015 will depend on the ramp up at Sentinel and that of the new smelter being built in Solwezi also by First Quantum. “We are very happy with the progress we continue to make on the project,” Pascall says. “At a forecast capital cost of $1.9 billion, Sentinel’s capital cost per installed annual tonne of copper production is approximately $6,335 and that is worldleading compared to other projects under development in the industry.” The market has indeed responded well to the developments being made by First Quantum, particularly now that much of its key operations staff are in place, including the Mine Manager, the Engineering Manager and the Training Superintendent for the incoming mining fleet operators. “We have assembled a quality team ready to take the project into commissioning and into its first years of operations,” Pascall concludes. “We feel we have the right people in place and they of course will continue to be supported by a fantastic Zambian workforce who have consistently shown themselves to be extremely productive, motivated and a great example to the rest of the country about what can be achieved here. We will now look to utilise this workforce as we move into a new phase of operations, one that I believe will highlight how well placed we are for the future.” For more information about First Quantum Minerals: Trident project visit: www.first-quantum.com

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GeoQuest

Servicing South and Central Africa An independent geological and environmental consultancy and contracting group, GeoQuest has been a principal supplier of vital services for some of Africa’s more prominent developing nations for the last 14 years

written by: Will Daynes research by: Candice Nice

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Geological mapping


GeoQuest

H

aving previously worked as a professional exploration geologist in Eastern Europe, Australia, and Central and Southern Africa for a number of leading mining and exploration companies, including Tesla, KGHM, Rio Tinto and Caledonia, it was in 1999 that Julian D. Green founded GeoQuest. A Chartered Geologist, Mr Green is qualified under the Australasian Code for the reporting of exploration results, mineral resources and ore reserves (JORC Code), and under the Canadian National Instrument 43-101, SAMREC and PERC codes to be a ‘competent or qualified person’ capable of preparing public reports on exploration results. Prior to his founding of GeoQuest, Mr Green held the role of Exploration Manager for Caledonia Mining Zambia Limited and was responsible for not only its day to day operations, but also for the supervision and liaison of joint venture projects with the likes of Cyprus Amax Zambia Corporation and BHP/Motapa Diamonds Inc., Dunrobin Mining Limited in Zambia and Gecamines – SODIMICO within the Democratic Republic of Congo (DRC). “When Julian established GeoQuest in 1999 in Zambia, it was to provide a dedicated service to the mining industry based in Zambia initially, where at that time there were no other service providers active in the country which offered a package including exploration and logistics services,” Managing Director of GeoQuest SARL Tobias Posel explains. Made up of a dedicated core team of Zambian and DRC based professionals, GeoQuest has grown in the last 14 years

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into a fully independent consultancy and contracting group with offices in Zambia, DRC and Zimbabwe. In that time the company has worked throughout Central and Southern Africa in countries including Botswana, Gabon, Congo/Brazzaville, Malawi, Mozambique, Namibia, Tanzania and Uganda. During its early years based out of its Lusaka office the company conducted

localised projects in the fields of mineral exploration and groundwater management. It was then in 2004 that GeoQuest embarked on its expansion into the DRC, establishing offices in Kolwezi and Lubumbashi, from which it began taking on work on projects both there and in neighbouring countries. In the meantime the company continued to develop and increase the capabilities available at its Lusaka office with the addition

“GeoQuest has grown in the last 14 years into a fully independent consultancy and contracting group with offices in Zambia, DRC and Zimbabwe�

GeoQuest field vehicle

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GeoQuest

Weighing samples

of its Geographic Information “Today we have ten Systems (GIS) department in geologists based in Zambia, 2006 and its Environmental a further four in the DRC Services division in 2008. and around 50 additional Regardless of the country in permanent staff across The year that Julian D. which its activities are taking the business,” Mr Posel Green founded GeoQuest place GeoQuest remains continues. “This latter figure committed to providing high increases dramatically quality and cost effective during the dry season to technical and logistical solutions for clients sometimes well over 200 people. We operate in the mining and mineral exploration, two offices out of Lusaka and Lubumbashi, environmental and hydrogeological sectors. boast a combined fleet of 20 off-road vehicles It achieves this through the deployment of and possess camping gear, GIS equipment, select, hands on, multi-disciplined teams a large data library, four XRF analysers or individuals, including geoscientists and and other equipment. Furthermore, we are technicians tailored to meet the particular using the latest IT systems in the field of requirements and needs of each client. communications and data management, using

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Bulk weigh

“I would strongly advise any new investor planning to operate in the DRC to always seek the guidance of an experienced and well reputed, locally based company” GIS software and the aforementioned XRF tools to gather and process data in the field, as well as utilising the newest geophysical and remote sensing methods.” Zambia as a country remains a hugely important market for GeoQuest, while the DRC, particularly the Katanga and Kasai Provinces are of particular significance as

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the company continues to enhance its core offering and also build up its environmental and logistics services in the country. “To this day we remain the only provider of exploration services to be based within the Katanga Province in the DRC,” Mr Posel states. “Our current aim is to be working for between three and five


GeoQuest

Core cutting

different large clients in the country this year, with our principal activity being the carrying out of practical technical services in the field, services such as geochemical soil sampling, sample preparation and analysing, camp building and management, geological mapping and the management of drilling programmes.” As far as the company’s plans for the rest of 2014 are concerned, GeoQuest aims to also become ever more active in Gabon and in Brazzaville, the capital of the Congo. Mr Posel’s final thoughts however refer back to the DRC and his advice for those potential clients looking to establish operations in the country.

RC drilling

“I would strongly advise any new investor planning to operate in the DRC, particularly its mining sector, to always seek the guidance of an experienced and well reputed, locally based company. In approaching such companies one will always be better poised to avoid the difficulties and pitfalls which can arise when setting up here, giving one more time to concentrate on how to capitalise on the opportunities that exist.” For more information about GeoQuest visit: www.geoquest.co.zm

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Weatherly PLC

The making of a copper company Weatherly plc’s Tschudi open pit project, producing pure copper cathodes on site in Namibia, is the focus of its next stage of growth: the project will produce 17,000 tonnes of copper per year over an eleven year mine life, and will take Weatherly from a small to a medium sized mining company

written by: john o’hanlon research by: jeff abbott

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Weatherly PLC

W

hen Rod Webster a substantial dividend to our long suffering established his company shareholders!” says Webster. Weatherly in 2005 he That was the turning point for Weatherly. and his partners had Copper had rallied to more than $9,000 and been casting around since then Otjihase and Matchless have been for that elusive beast, a company-making the core of the company, though they were project. When some assets he had acquired never going to be the company maker he was in Zambia turned out not to be it he shifted looking for. “They made a lot of money in his attention to Namibia, acquiring the assets 2011, and though the price of copper meant of a struggling local copper producer called they did not generate as much the second Ongopolo in 2006. In July that year Weatherly year it was still enough cash to allow us plc was admitted to London’s AIM market, to develop the next step.” These assets, he and since then has been focused on Namibia. explains are a means to an end: they will Ongopolo had four small underground continue to produce for perhaps another mines and a smelter that it had decade, generating cash as acquired out of liquidation long as copper prices hold, but they are not Weatherly’s from Goldfields, but this main game anymore. was a financially unstable That lies further north company in urgent need of at Tschudi, not the old recapitalisation, something Operational workforce underground pit but a Weatherly provided, to the at Tschudi tune of $20 million. It got the surface asset that will be mines going, achieving record transformational for the production levels by 2008 when a rethink was company. A bankable feasibility study carried prompted by the collapse of copper prices to out in 2012 returned an expected net present under $3,000 a tonne. By the end of the year value (ENPV) at well over $100 million even action had been taken to cease mining at all at a price of $5,800, well below today’s price four underground operations, only keeping level on the metal exchanges in the region of the smelter at Tsumeb, 450 kilometres $7,000 a tonne. “What we like about Tschudi to the north of the capital Windhoek, is that it is a straightforward open pit,” operating on a tolling basis. enthuses Webster. “At this moment it has a In 2010, wishing to raise the funds needed bottom at 200 metres depth, and in that we to reopen the two most viable underground have a reserve of two million tonnes at just pits, Otjihase and Matchless both located close under one percent copper.” to Windhoek, Weatherly sold the smelter to This is a relatively modest grade for an Dundee Precious Metals for $55 million and open pit, he explains, but it is very high raised a further $7 million. “That gave us the grade when you take in to account that the funds to recapitalise the company and pay processing is via heap leach solvent extraction

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ASPIRING FOR EX SHALI Mining provides surface and underground mining expertise and services to the mining industry. The deposit is mined on behalf of the client/licence holder and the final product is delivered at the most economical unit cost. SHALI Drilling company provides exploration and water well drilling with well equipped and highly skilled personnel. We can do diamond drilling as well as RC drilling with a fleet of drilling rigs.

Shali Group Holdings (Pty) Ltd | POBox: 11808 Klein Windhoek Namibia | Tel: +264 61 239 515 | Fax: +


XCELLENCE

+264 61 239 516 | E-mail: PA@shaligroup.com | www.shaligroup.com


SHALI GROUP HOLDINGS (PTY) LTD OUR OPERATIONS Shali Mining (Pty) Ltd was established in 2010 and is a contract mining company. Since inception we have grown and diversified our client base and provide surface and underground mining services to a number of clients in the mining industry. We currently employ 277 people and have build up sound experience as a mining contractor; experience that we believe will propel us to the next level. The sole shareholder Wilhelm Shali founded Shali Mining (Pty) Ltd. Wilhelm Shali has a strong entrepreneurial background and is continuously looking into new developments in the mining industry to ensure that we give our clients an experienced, equipped and innovative service. Our aim is to deliver underground and surface mining services that are safe, cost effective and performance-oriented. We invest in developing

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our fleet and people to produce smarter solutions and a faster response time to meet client needs. Our fellow subsidiary, Shali Drilling provides a full range of drilling and related services through two key divisions, mineral and water well exploration. Diamond drilling, RC drilling is also part of our portfolio. The two companies complements each other and together we aim to provide a complete outsourced solution to our clients. Our efforts to implement and drive sustainable local economic development have allowed us to fulfill our corporate social responsibilities within our communities through positive participation. The project that we support involves agriculture development within the local community.


Weatherly PLC

We provide product, tools and training to the communities where we operate. Our team: Wilhelm Shali, a Mechanical Engineer is the Managing Director of the Shali Group Holdings (Pty) Ltd. Wilhelm Shali has started a number of companies and has a proven track record as an entrepreneur. Jenny Comalie the CEO has joined the Shali Group Holdings (Pty) Ltd recently. Ms Comalie is an entrepreneurial professional with more than fourteen years of experience in strategy development and implementation and Financial Management.

Lawrence Madziwa is the Group Mining Engineer and holds a Masters in Mining Engineering, Mr Madziwa has 17 years experience in the industry and work in various fields in the mining industry.

SHALI Group Holdings (Pty) Ltd. Head Office Ballot Street, No. 6 Western Square Building, 1st Floor, Windhoek +264 61 239 515 +264 61 239 516 E. PA@shaligroup.com www.shaligroup.com

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Weatherly PLC and electrowinning (SW-EX), Basil Read a method that accounts for 20 Basil Read continues to prove its opencast mining percent of world production. capabilities through a range of medium and long term key This type of processing plant projects across Africa. is not one that calls for the Basil Read offers clients innovative yet practical solutions acquisition of any long-lead to the most challenging contracts and has left its mark on capital equipment. “It is nearly projects such as the Debswana Jwaneng Mine in Botswana, the De Beers Venetia Diamond Mine in South Africa and all a matter of earthworks, Rossing Uranium Mine in Namibia. piping and pumps. 95 percent The Mining division has become the mining specialist of of the materials needed for it choice for projects across Southern Africa. Through its are going to be purchased subsidiary B&E (Blasting & Excavating), it offers clients from South Africa.” an innovative, yet practical approach to even the most From being something of an challenging projects and has developed an unblemished uphill slog, the project looks safety record and a well-earned reputation for meeting the most stringent requirements. set fair for rapid development Basil Read Mining boasts an exceptional safety record, since securing full development specialist technical skills and a solid civil engineering funding of $91 million from background. Orion Mine Finance. “We are www.basilread.co.za up and running now,” says Webster, “and should see the first copper produced by the Tschudi mine in the second quarter of 2015.” That means a busy 16 months ahead, he admits, while stressing that the project has not stood idle in the year since the feasibility study was completed. All of the major contracts have been agreed, and the schedule agreed whereby the mining contractor Basil Read will start work in the first quarter of next year. The crushing and agglomeration plant and the first leach pads to be built by B&E International using $18 million of its own funds will be commissioned in the fourth quarter. Power supply has been agreed with NamPower and a long-term acid supply agreement with Protea Chemicals. The SW-EX plant will be the last major element to be completed ahead of production in 2015.

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The fact that this is a depressed time for the mining industry in general has played to Weatherly’s advantage, he points out: “All the big overruns occurred when the market was bullish. People had so much work that projects usually ran over in time and money. Now we have the opposite, a situation where we are finding that the smaller packages are coming in cheaper and under time because people are short of work.” The market conditions have enabled Weatherly to strike deals that reduce the project risk significantly. The main contract, a $61.5 million EPC arrangement with Logiman, is of especial interest. It is a fixedprice arrangement that is something of a hybrid that allows the mining company to approve all design elements and key subcontracts in exchange for a deal whereby Logiman can rake back 60 percent of any saving it is able to make on the headline cost. “I would be very surprised given the way we have structured this huge incentive if it does not come in under time and under money!” “We have laid off a lot of the risk to people who have enormous horsepower and capability in the industry,” Rod Webster concludes. “We are really just left with running the process plant, and in that respect we are in quite good shape in terms of the

skills we need. Namibia already has three or four similar processes running in its uranium mines, and Scorpion Zinc is a SX-EW plant for zinc, where the process is not dissimilar.” The mine will have a life of eleven years, with the process plant carrying on for a further four to deal with copper remaining in the heap. Additionally there is sound potential for extension and even going underground

“We have laid off a lot of the risk to people who have enormous horsepower and capability in the industry” 134 | BE Africa


Weatherly PLC

if copper prices permit. The Namibian government and the Chamber of Mines have been particularly helpful, he adds. But then this is a big project even for this miningfriendly administration. 500 people will be employed at Tschudi during the operational phase, 800 during construction, and the economy will benefit mightily. Weatherly will stick to its last, eschewing fancy social projects. “We are in the business of making a profitable mine, employing people and delivering value to shareholders and the government. Copper creates a lot of value downstream too. It is a stimulus to the whole fabric of the country. So we won’t be involved in farming projects – they are a total distraction and mining

companies usually make a mess of them!” Tschudi presents quite enough challenge for the moment. Rod Webster sums up the present state of his company thus: “We successfully secured our position with the underground mines: Tschudi takes us to being a 20-25,000 tonne copper producer, so we are now a medium size company with the momentum to move up yet further.” He will be keeping his eye on the many copper projects with potential for turnaround being divested by the majors. For more information about Weatherly PLC visit: www.weatherlyplc.com

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ATS Group

Mining marches on its stomach Allterrain Services (ATS) Group is a facility management company but that statement tells only half the story, if that: this is a company that fills its niche as a hand fills a glove – it has grown into its market and is identified with it

written by: John O’Hanlon research by: Richard Halfhide

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ATS Group

A

TS started life in 1996 by plugging a hole in the market. A Canadian minerals company working in Ghana and other African countries found it impossible to get the support it needed at its remote sites – like an army, an exploration company marches on its stomach. It hired an experienced facilities manager Jez Simms to meet its immediate needs, with such success that the unit quickly grew into an entity in its own right, taking its first outside contract in 1997. Next came a merger with Oasis Management also founded in 1997 as a hospitality company by Sanjay Narain and Martin Ryan which resulted in ATS Group being spun out as an independent company in 1998 under the management of its founders who are all still actively involved in the company. Sanjay Narain is the CEO of the group and his vision has driven every stage of its development to a point where it has a presence in 14 African countries and more than 4,000 employees. “It has been a story of steady growth,” he says. “We have partnered with most of the big names as well as with junior mining companies on their projects, and in the last three years we have made significant inroads into the oil and gas sector.” Wherever there is a company that needs to outsource its non-core business ATS is ready to step in. Mineral production and exploration are highly specialised: so is feeding the workforce. ATS started as a foodservice organisation but quickly grew to provide other equally important facilities from accommodation management to leisure facilities management - even swimming pools. Non-food activities

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now account for 40 percent of its turnover. Every project starts with a small camp for a short term drilling campaign, but as we have frequently seen this can end up five or ten years later with a mine in production – employing many people and with a lot of infrastructure needed to support it. At one end ATS offers a simple deal whereby it supplies catering and perhaps staff for specific jobs like gardening or housekeeping. Year later it provides a complete service, operating the entire camp, maintaining buildings and infrastructure and effectively outsourcing all non-core activities for the customer. This approach is at the heart of ATS’s Customers for Life approach. It has contracts today that date back to 1999 and has a client list that looks like a directory of Africa’s mining and O&G players. Majors such as AngloGold Ashanti, Barrick, First Quantum, Newmont; O&G sector specialists like Tullow Oil, ENI, Baker Hughes and British Gas; growing companies like Shanta Gold, Endeavour Mining and Newcrest; and service providers such as Lycopodium, Schlumberger, DRA and Geodrill: all these and many more place their trust in ATS for the very good reason that it allows them to outsource essential but noncore aspects of their business. Global facilities management companies are waking up to the opportunities that Africa presents, Narain admits, but their origins are

in New York or London, a far cry from the untouched parts of Africa. “A few years ago there were only a couple of people tendering on jobs now it can be nine or ten,” says Narain. “But we welcome this because it confirms that our market is becoming established.” His USP is the way ATS understands the challenges, having operated in DRC, Côte d’Ivoire and other countries through troubled times. It understands how to work at a distance from urban centres: its longest current supply route is in Liberia, a 15-hour journey from

“We have partnered with most of the big names as well as with junior mining companies” 140 | BE Africa


ATS Group

Dining mess ready for service

Monrovia! “When a project Takoradi. “Our market is subSaharan Africa,” he says. starts we are among the first people to get to the site, In 2014 he would like to see the work he does in East well before any construction starts, so we will normally be Africa expanding. Kenya, ATS employees in Africa on site with the security crew, where the company opened working out of tents without last year, has many openings, and Tanzania is poised to hit any facilities in place.” Mining is the client base ATS really the big time in both minerals and offshore understands, and there’s plenty of room for gas, and ATS is already working with Shanta growth within that sector, confirms Narain, Gold and, with British Gas, at the southern oil though its skills are applicable in many other port of Mtwara. It has also just commenced its sectors. The company is putting a lot of first significant contract in Mozambique. “We effort into developing O&G clients, whether are also looking forward to getting back into the work onshore or in the waters off West Nigeria,” he says. The government there has and East Africa: in these cases it handles the focused all its attention on oil and neglected operational bases of the companies working the mineral wealth in this huge country, but at sea – for example at Ghana’s oil port that will change over the coming five years.

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“Every time we involve a local business in food distribution it creates three or four jobs” With a new partner in place, he hopes to set up a subsidiary in the course of 2014. ATS’s modus operandi is to select a strong and engaged local partner in any country it enters, retaining a significant shareholding up to 50 percent. The model of partnership is at the heart of the ethos of this business, and that is why it places a huge emphasis on its community engagement. Social responsibility runs in ATS’s veins – it depends on local suppliers and needs them to succeed. That is why it looks on them as

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a part of its own business. “CSR is one of the mining industry’s highest priorities, and we can be right at the centre of the client’s strategy,” declares Sanjay Narain. ATS has a policy of local sourcing, and it uses a lot of food, 22 percent of which is bought from the community around the site – a spend it estimates at $6 million a year. That in itself creates jobs, and as 90 percent of its direct employees come from the same community, the positive impact is huge. Whereas an NGO might fund a tomato


ATS Group

Community development

growing programme, ATS provides a market on the grower’s doorstep, and compels him to meet the highest food production standards – this is a challenge at first but in the end creates a sustainable business that can go on to sell its products in other local and even international markets. “Every time we involve a local business in food distribution it creates three or four jobs,” Narain points out. A good example is Nana Bra’s mushroom farm close to Gold Fields’ Damang mine in Ghana. This business is the sole supplier of mushrooms to ATS in Ghana, with production of more than 2,000 bags per season. “We have community engagement officers looking for partners that have the entrepreneurial spark! We provide the market, training in best practice, financial advice and

the like. Some of these projects start with a turnover of a few hundred dollars but grow into $150,000 businesses over time.” This is happening across Africa wherever ATS is present. In Zambia, for example, James Bright Mubanga started out by supplying 2,000 doughnuts a week from his premises, a thatched hut. Now with ATS support his business is in a modern building with the capacity to produce and supply 10,000 doughnuts to ATS per week. Not only was Mr. Mubanga able to employ twelve young people from surrounding communities, who earn their livelihood from this business, but he’s now planning to extend production to other bakery products. Last year Barrick awarded ATS a worldwide award for its community

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Electrical maintenance


ATS Group projects in Zambia where ATS Zambia is contracted at its Lumwana mine to provide industrial catering, events coordination, housekeeping, landscaping, accommodation management and facilities maintenance. Of 438 employees in Zambia 95 percent are Zambian nationals, says Narain. Many of these will be new to the food industry, unfamiliar with sophisticated kitchen equipment let alone international standards of health, safety and hygiene. ATS is accredited to ISO 22000:2005 standard and was the first African catering company to gain ISO 22000:2005 certification, which ensures traceability in the foodchain. In 2013, ATS achieved OHSAS 18001 certification for its maintenace operations in Ghana. ATS was the first Catering company in East, Central and West Africa to gain HACCP (Hazard Analysis Critical Control Points) certification in 2008. To reach and maintain these standards involves a great deal of training not only of ATS staff but of vendors as well. When it sets up a new project, of any scale, the company will hire or build a facility and set up a training school. “We have a whole range of training programmes, using the latest interactive video and DVD materials.” Sanjay Narain says. This is managed through the Group’s long term subsidiary Oasis Management, which specialises in training and compliance. For more information about ATS Group visit: www.atsgroup.net

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Seven Energy

Powering Nigerian performance By working to capture the full gas value chain, Seven Energy is on the fast track to becoming one of Nigeria’s leading gas suppliers

written by: Will Daynes research by: Stuart Platt

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Seven Energy

A

n indigenous Nigerian oil and gas exploration, development, production and distribution company with assets and interests centred on two core areas in the northwest and southeast of the Niger Delta, Seven Energy’s vision is to solidify itself as the leading supplier of gas to the domestic market for power generation and industrial consumption. Headquartered in Lagos and in London, England, the company has an upstream reserves and resources base of more than 350 MMboe, midstream processing and distributing capacity of 200 MMcfpd, and long-term gas sales agreements in place to supply over one trillion cubic feet of gas to its domestic market. Seven Energy’s business model is designed to capture the full value chain from upstream appraisal, development and production, to ownership of processing and distribution infrastructure and marketing to end users. This model is supported by the company’s experienced management team, high standards of corporate governance and social responsibility, and is underpinned by a robust capital structure. The company’s strategy has been to acquire controlling interests in low cost, undeveloped

gas fields with clear near-term monetisation opportunities, while at the same time working to secure long-term offtake agreements with credit worthy customers, and to build and operate processing and distribution infrastructure in strategic locations. To date, Seven Energy has progressed towards achieving these objectives through the acquisition of substantial interests in the undeveloped Uquo and Stubb Creek Fields. Production from these fields will be processed and transported to market through processing facilities and pipelines that are owned and controlled by Seven Energy. In addition, Seven Energy’s Strategic Alliance Agreement with NPDC has provided access to mature producing oil and gas fields in OMLs 4, 38 and 41 with substantial upside potential. Seven Energy’s portfolio of oil and gas assets and interests are known to be relatively low geologic risk fields with significant resource potential. In the northwest Niger Delta, Seven Energy has entered into a Strategic Alliance Agreement with NPDC in respect of OMLs 4, 38 and 41, and also has an interest in the Matsogo Field. OMLs 4, 38 and 41 comprise five producing fields. In 2012, the average gross production from OMLs 4, 38 and 41 was 33,400 bopd. A successful well work

“Nigeria continues to possess huge economic potential, which is trapped in its vast gas resources” BE Africa | 149


EVOMEC Global Services Limited

****CREATING FRESH IMPACT

EVOMEC Global Services Limited is a leading Nigeria Company with High Class Technology in Pipeline Engineering, Soil Improvement, Environmental Engineering, Coast and Harbour Engineering; to include Dredging, Shoreline Protection, Piling and Earthwork (Filling and Land Reclamation). info@evoemclimited.com www.evomeclimited.com


Seven Energy Seven Energy feature text over and drillingLorem programme ongoing ipsum that dolorissit amet, to go here....Lorem ipsum on the fields, asconsectetur well as the adipisicing inclusion ofelit, the Okporhuru fieldsed which on stream in dolor sit amet, consectetur do came eiusmod tempor incididunt ut labore et dolore May 2013, added 4,000 bopd of production. adipisicing elit, sed do eiusmod tempor incididunt ut aliqua.programme Ut enim ad A substantialmagna development is labore et dolore magna aliqua. veniam, quis ten nostrud ongoing across minim the area with some new Ut enim ad minim veniam, exercitation wells being drilled and sixullamco existinglaboris wells nisiduring ut aliquip ex eaThe commodo quis nostrud exercitation being re-entered 2013. early ullamco laboris nisi ut aliquip aute irure success of this consequat. programmeDuis has reaffirmed ex ea commodo consequat. both the effectiveness work programme dolor ofinthereprehenderit in itself and the quality of the reservoirs with Duis aute irure dolor in voluptate velit esse cillum caption aiming theis aoperator of reprehenderit in voluptate This is a caption this dolore for eu production fugiat nulla 100,000 bopd by 2016. velit esse cillum dolore eu pariatur. Excepteur sint fugiat nulla pariatur. Excepteur sint occaecat occaecat Meanwhile, in the non southproident, east Nigersunt Delta, cupidatat in cupidatat non proident, sunt in culpa qui culpa Seven Energy has interests the Uquo Field qui officia deseruntinmollit anim id officia deserunt mollit anim id est laborum. est and laborum. the StubbLorem Creek ipsum Field. The Field dolorUquo sit amet,

EVOMEC GLOBAL SERVICES LTD EVOMEC carries out its activity in the Geo technics field and is one of the few companies in the world that covers the entire range of existing excavation, drilling and soil treatment systems. EVOMEC also work in various fields of engineering such as Civil, Infrastructure, Road Construction, Architectural, Mechanical and Pipeline Construction. EVOMEC Global Services Limited has added to its achievements some of the modern construction and innovative dry earth moving and amphibious equipment with complete safety gadgets. We also have been licensed to work in the downstream sector of the economy. We believe in using updated technologies and ensure safety in all of our operations. We combine technical ingenuity and creativity, which has won us key roles in some landmark projects including but not limited

to shoreline protection, dredging, marine and civil engineering. For this reason we are very conscious of the quality, safety and durability of our services and its commercial integrity as well as customer satisfaction. Our broad range of services also spread into specialized oil and gas services, pipeline construction, industrial maintenance and the likes. We have set and are setting new standards in terms of efficiency, productivity, reliability, accuracy and outreach, educating the general public through media publications, thereby ensuring greater awareness on basic construction and Engineering services. info@evoemclimited.com www.evomeclimited.com

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Whitehall Management Limited is an independent project-management organization providing specialized housing & maintenance solutions. With our team of highly qualified personnel, we provide good and efficiently serviced residential and commercial locations to our customers. We provide an array of multi-site maintenance, repair services and workmanship at reasonable prices. Our focus has been to minimize clients’ in-house burden by providing increased customer service and convenience. We work together with our customers to gain a thorough understanding of their specific needs and then adapt our services accordingly. www.whitehallmanagement.net

Whitehall Management...providing specialized accomodation logistics services


Seven Energy was first discovered by Shell Whitehall Management Ltd in 1958, and in the time Our scope of management & servicing activities since five wells have been include the following: drilled, all of which have Bill Payment, Book keeping and Financial Reporting encountered hydrocarbons, • We will manage the payment of all utility bills charged with the most recent well to the property covering electricity supply satellite TV having been drilled in 2008. subscriptions, water supply, internet access, staff wages, and In 2010, the Uquo-3 and swimming pool maintenance, custodial services including Uquo-2 wells were re-entered, waste management, se wage disposal and pest control. tested and confirmed to • A monthly service charge summary reflecting all previous have very good reservoir month’s chargeable activities on the property on a cash characteristics with high basis will be made available. We will scrutinize bills for accuracy and handle the resolution of billing discrepancies. porosity and permeability. In A detailed period ending or full year financial summary will 2013, the Uquo-4 well was be presented based on the term of the lease. re-entered and re-completed Scheduled Maintenance and also confirmed the • Fixture & Appliance installation & Repair excellent characteristics www.whitehallmanagement.net of the reservoir. When it comes to Seven E n e r g y ’s midstream activities, responsibilities in this field fall to its gas marketing, processing and distribution business Accugas. The Accugas business model has two core components, the first being the processing and distribution of gas from the upstream activities of its affiliates, and the other being the processing, distributing and marketing

“The strategy has been to acquire interests in low cost, undeveloped gas fields” BE Africa | 153


Quicka Nigeria Founded in 1997, Quicka Nigeria Limited has through a combination of prudent Management, attention to detail and the employment of a dedicated and highly experienced workforce, grown to become the leading indigenous Clearing & Forwarding agent in Nigeria. Quicka Nigeria is the premier indigenous Clearing and Forwarding agent, strategically located in the heart of Nigeria’s Oil & Gas Industry, Port Harcourt. A dedicated team of professionals ensures world class and competitive service. From Form M management, Temporary Imports, Bonded warehousing to Clearing & Forwarding. Quicka offers tailor made

logistics solutions to many Oil & Gas Service Companies. Septa Energy utilized Quicka’s 16,000m2 storage, Bonded Facility and 250m2 Office space to service it’s UQUO Gas Pipeline Project. “Septa benefited immensely from having such a close working relationship with their Logistics partner” said Mr. Bassam Dina, Managing Director, Quicka Nigeria.

E dominicwaldron@quickaltd.com E bassamina@quickaltd.com www.quickaltd.com

QUICK NIGERIA LTD CLEARING & FORWARDING • Licensed to Operate in Onne Oil & Gas Free Zone • Freight Agency

99, Rivoc Road, Trans Amadi, Port Harcourt, Nigeria

• Oil & Gas Sector specialists • Customs Bonded Warehousing

bassamdina@quickaltd.com + 234 (0) 803 400 7749 / dominicwaldron@quickaltd.com + 234 (0) 805 666 9990


Seven Energy

“It is the desire of the company to deliver value to Nigeria by being a local partner� gas for upstream partners and third parties. With spare capacity built into its processing and distribution infrastructure, Accugas is capable of providing a long-term supply of gas to additional offtake entities for power generation and lower cost fuel for local industry. This is leading to an influx of inward investment opportunities for gas-based enterprises in the south east

Niger Delta and Accugas is working closely with those partners to help them realise their projects. Nigeria continues to possess huge economic potential, which is trapped in its vast gas resources. Nevertheless, domestic utilisation of this gas remains low, with the Federal Ministry of Petroleum Resources estimating that in 2011 it only

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Seven Energy

350 MMBOE Seven Energy’s upstream reserves and resources base

made up twelve percent of the country’s total energy usage. It is however Seven Energy’s belief that we are now on the cusp of seeing Nigerian gas demand experience unprecedented growth. With this in mind, the company has not only made considerable efforts to expand its assets and operations, but also to ensure that corporate responsibility remains a primary focus for Seven Energy. The company’s commitment to corporate responsibility can be categorised into six areas, which are considered of equal importance to its operations in Nigeria. These areas are stakeholder relations, Nigeria content, its workforce, security, health and safety, and the environment. It is the desire of the company to deliver value to Nigeria by being a local partner, committed to significantly increase hitherto unharnessed gas supply to the power sector, which curbs wastage and reduces negative impact on the environment, whilst creating economic benefits for all stakeholders. For more information about Seven Energy visit: www.sevenenergy.com

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Petromoc

Fuelling

a nation Mozambique’s state-owned distributor of petroleum products continues to expand, both within its home nation’s borders and further across Southern Africa

written by: Will Daynes research by: Abi Abagun

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Petromoc

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ecognised as the second largest oil and gas firm in Southern Africa, Petromoc, or Petróleos de Moçambique to give it its local name, was formed in 1999 and is Mozambique’s state-owned distributor of petroleum products. Born out of the transformation of the Mozambique National Fuel Company, Petromoc today owns the largest retail network in the country, one that consists of 119 filling stations and supply posts, and 300 local consumer positions. The company owns and operates storage facilities and pipelines found across all the main Mozambican ports, with said storage facilities including 19 inland and coastal depots which boast a combined storage capacity of around 500,000 cubic metres. Petromoc markets fuels, oils, greaseoils and lubricants for use in the country’s major industry sectors, these being mining, agriculture and maritime, and is also able to provide customers with complete technical support. The largest supplier of fuel to Mozambique’s leading industrial and commercial companies, Petromoc also provides fuel to a host of neighbouring countries such as Zambia, Zimbabwe, Malawi and the DRC. In total Petromoc is able to claim annual sales of approximately 407,000 cubic metres of petroleum products, 375,000 cubic metres of which are distributed to Mozambique’s domestic market, which equates to a domestic market share of around 42 percent. Meanwhile, some 33,000 cubic metres end up being supplied within the company’s foreign markets.

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Intertek Valued Quality. Delivered

Our Organisation

What we do

Environmental Services Government Services Commodities Analytical Services Industrial Services Minerals Services

Testing Inpsection Certification Auditing Outsourcing Advisory Training Quality Assurance

Contact: Dawie du Plessis Phone +258 23322658 | Fax +258 23324262 Email: cbe.mozambique@intertek.com | www.intertek.com


Petromoc

INTERTEK Intertek, a leading provider of quality testing, inspection and safety services to a wide range of industries around the world, has been awarded a Laboratory “Outsourcing” contract for provision of testing services at its Matola facility, Mozambique. At present Intertek provides Inspection & “Key” Laboratory testing services to Petromoc from its terminals, viz: Matola; Beira & Nacala respectively. The Intertek / Petromoc Matola laboratory is to undergo a facelift. This will include, but not limited to, the redesign of its present facility with upgraded laboratory furniture, extraction systems, Gas supply, IT infrastructure, Specialized Testing room, Controlled sample receipt facility & sample retention store. Intertek is committed to a significant investment in acquiring the latest testing equipment, in accordance with

Intertek international test procedures, able to meet the demands of product certification. This new facility shall provide for increased test capabilities able to meet local legislation as well as adhering to “export” requirements to land-locked countries. Also included are opportunities in providing water & microbiological testing by this facility. By virtue of providing services to Petromoc, Intertek shall provide independent services to third parties which shall remain in the strictest confidence and impartial by this facility. The laboratory shall operate on a 24/7/365 basis. It is Intertek’s vision to acquire the ISO 9001 certification within twelve months of the initial contract period. E. cbe.mozambique@intertek.com www.intertek.com

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Petromoc It will come as a surprise Grindrod Fuelogic Mozambique (Pty) Ltd to few that a company the Grindrod Fuelogic Mozambique (Pty) Ltd is proud to have size of Petromoc comes Petromoc as a shareholder. Grindrod Fuelogic operations blessed with significant are to be significantly expanded to meet Petromoc’s and the infrastructure assets from oil industry’s needs, with the addition of 60 vehicles. This which all of its activities will provide for additional delivery capacity out of Maputo, originate. These assets Beira and transport operations will be established in Nacala and Pemba by mid- 2014. Expanded operations are to include the Lingamo Oceanic include deliveries out of Mozambique into neighbouring Oil Terminal (IOL), the Beira countries. Petromoc is key to our success in Mozambique. Oceanic Oil Terminal (IOB) www.grindrod.co.za and the Nacala Oceanic Installation (ION). Located in the port area of Matola city and possessing san installed capacity of 412,000 cubic metres, the IOL facility covers an area of 40 hectares and acts as one of the gateways for the entry of petroleum products into Mozambique. The largest facility of its kind in the country the IOL is linked by pipeline to the fuel terminal through which it receive petroleum products from oil tankers. It handles a range of products including liquefied petroleum gas (LPG), petrol, aviation fuel, kerosene, diesel, fuel oil, various grades of bitumen, and lubricating oils and greases. At present the IOL is undergoing work that will reshape the complex, increasing its operational capacity, modernising its

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Transportes Lalgy LDA Where the road ends we carry on…

Tel: 21 720 482/21 724 414; Cell: 258 82 303 5713/258 84 303 5317; Fax: 258 720 452/258 724 298; Email: Lalgy@lalgy.co.mz Avenida Uniao Africana, 4341 (Antiga Estrada Velha da Matola) Matola—Mocambique


Petromoc loading gantries for rail wagons and road tankers, and implementing other projects of importance to improve operational effectiveness. The success of the IOL becomes ever more important when taking into account that it represents a pilot facility for Petromoc’s plans to develop an integrated management system based on the principles of quality, environmental protection and occupational health and safety. Located in Munhava, the IOB may have a smaller installed capacity, in this case 26,000 cubic metres, but it is responsible for

handling massive volumes of fuel thanks to its strategic location that makes it a gateway for the distribution of petroleum products to landlocked neighbouring countries. In order to distribute fuel, and receive and backload

TRANSPORTES LALGY LDA The company has a variety of transport options available to meet our clients’ needs and respond to market requirements based on an aggressive growth strategy and continuously growing fleet which consists of over 500 vehicles: • Interlink side tippers • Side and Back end tippers • Fuel tankers • Low-beds • Superlinks and triaxles • Earth moving equipment The reconstruction and new opportunities within our country are creating a period of unprecedented growth. To support this period

of growth there is a huge and urgent need for quality logistics service providers. The geography of the country (with the seaports of Maputo, Beira and Nacala) coupled with the extremely limited rail infrastructure makes road transport the only viable option to support the growth and development within our country.Transportes Lalgy LDA is involved in many of these projects which include (but are not limited to): transport for infrastructure and construction projects in the coal and mining industry, gas products, regional imports and exports. E. helio@lalgy.co.mz

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Petromoc

407,000 m3 Petromoc’s annual sales of petroleum products calling oil tankers, the terminal relies upon a powerful and modern loading gantry. Meanwhile its link to the MozambiqueZimbabwe Pipeline Company pipeline gives it a unique opportunity to pump products into Zimbabwe. The ION also holds a critically important role for both the company and the country, in that it is responsible for the supply of fuels to the northern region of Mozambique. Linked to the fuel terminal by a four kilometre long pipeline, also belonging to Petromoc, the ION is able to receive fuel products and undertake backloading operations. Recently rehabilitated, the pipeline allows

the company to pump different petroleum products separately, thus improving their individual integrity and durability. Designed to have a storage capacity of 45,000 cubic metres, the ION is able to store petrol, kerosene, aviation fuel, diesel, and lubricating oils and greases. As well supplying Enviroshore the domestic market, the The close partnership between Petromoc and Enviroshore terminal is also used as provides specialist solution services to the oil, petroleum, a gateway to landlocked shipping and mining industries through the use of nations such as Zambia specialised organic waste processing, world-best practices and Malawi. and state-of-the-art environmental technology. We are focussed on creating a healthy environment for Of course, while the our children, while providing meaningful and rewarding company’s facilities are opportunities that improve the financial performance of huge importance, the of our partners. work carried out across Our vision is to be a world-class collaboration, and the Petromoc’s operations would principal partner of choice in the rehabilitation of onsite not be possible without its storage clean-up, soil and groundwater remediation. workforce. When it comes www.enviroshore.co.za to its human resources

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© SGS Group Management SA – 2013 – All rights reserved - SGS is a registered trademark of SGS Group Management SA

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T RUSTED SOLUTIONS 40.078

TRANSPORTATION

Cargo safety and integrity is critical. You need the peace of mind that comes from knowing that wherever your cargo is in the world, whichever transport route and vehicle it is contained in, best practice has been adhered too. SGS experts check against current standards and regulations, ensuring all health and safety requirements are met and that the right quantity and quality reaches the destination. Trust the integrity of your cargo with SGS Inspection Services, for more information visit www.sgs.com/ogc or contact ogc@sgs.com. Solutions for Oil, Gas & Chemicals that go ON and ON and ON...

SGS IS THE WORLD’S LEADING INSPECTION, VERIFICATION, TESTING AND CERTIFICATION COMPANY

WWW.SGS.COM


Petromoc the company’s primary objective revolves around SGS has been active in Mozambique since 1962, providing being able to empower services through its offices in Maputo, Beira and Nacala. human capital through We are the leader in independent inspection, verification, the constant development testing and certification services. of a skilled, dynamic and Providing trustable services to national and international motivated work force. clients like Imopetro, Petromoc, IPG, Vitol, BP, Shell, Trafigura and Glencore. SGS has established an expertise In its quest to motivate network including an ISO/IEC17025 accredited laboratories and permanently mobilise (OGC), and over 150 experts. its workforce for its Regarding the Oil, Gas & Chemical sector (OGC); SGS cause, Petromoc is in the can provide the following specialized services: blending process of implementing and cargo treatment services, sample management a comprehensive Human and outsourcing, calibration services, monitoring and Resources Management supervision of terminal and vessel operations (onshore and offshore), upstream services and collateral management. System. This will consist of www.sgs.com recruitment and selection, training and development, performance evaluation and professional careers subsystems, as well as wage administration regulations. Outside of its internal structure, Petromoc has also spent consideration amounts of time and effort to extend what it describes as its “brand of excellence” to the social, cultural and environmental sectors. Aware of its social responsibilities the company is always striving to act as an agent for sustainable human development, all the while retaining full respect for environmental standards. Petromoc’s social and environmental

sgs

1999 The year that Petromoc was formed

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Petromoc responsibility programmes are structured towards continuous and regular activities that support cultural, social, sport, health and environmental undertakings. The company’s efforts have seen it sponsor various national sporting programmes, initiate various awareness campaigns against Malaria, HIV and Poliomyelitis, and lend its support to events related to the development of Mozambique’s national culture and identity. In aiding the educational needs of the country, Petromoc has contributed towards the rehabilitation of the Bagamoyo Primary School and volunteered to cover the enrolment fees of students who had dropped out due to a lack of financial resources. Elsewhere it was the company’s contributions that saw equipment supplied for an IT room at Liberdade Secondary School, while moves were also made to involve senior staff members in training activities and workshops centred on the themes of corporate social responsibility and combating HIV. Such corporate social responsibility efforts continue to form a core part of Petromoc’s existence, while at the same time the company remains as committed as ever to achieving its strategic goals, these being regional expansion, the maximisation of its logistics network and the further diversification of its energy portfolio by developing new products and services that add value and stability to the business. For more information about Petromoc visit: www.petromoc.co.mz

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SEADOG Commercial Diving School

Reaching new depths of diver safety South Africa’s SEADOG Commercial Diving School is attracting record numbers of students and professional divers. As Managing Director Bridget Thomson discusses, this is stabilising the company and helping it to focus more on the medical side of the business

written by: Will Daynes research by: James Boyle

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C-DOC IMCA Diver Medic Training


SEADOG Commercial Diving School

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n the time since we last spoke towards the end of 2012 attendance at our Diving School has increased by around 40 percent,” states Bridget Thomson, Managing Director of SEADOG Commercial Diving School. “This increase sees us today operating at maximum capacity, which for a business that has been around for a relatively short period of time is extremely good news indeed.” Established in January 2010, SEADOG is a training centre for the oil and gas industry, specialising in fields that include commercial diving, supervision and diver medic training. Situated within Saldanha Bay, SEADOG’s location allows trainees to develop under realistic conditions where the quiet waters of the bay provide the perfect introduction to learner divers before they enter the open ocean. Committed to providing quality, progressive education, using outcomebased skills training, SEADOG promotes student-centred learning. This structure ensures that those individuals trained by the school demonstrate competency through a combination of knowledge, understanding and skills that encourage good performance and safe working practices. “Rather than positioning ourselves as just a training provider, we have always prided ourselves in how we work closely with the industry,” Thomson continues. “This level of participation, together with our visibility and consistent approach towards health and safety, particularly in the oil and gas sector, is the primary driver behind the growth we are experiencing. The latter trend has seen divers coming from a multitude of locations to attain

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“I think the growth we have experienced has helped enhance our own training capabilities, particularly on the medical side of the business�

C-DOC DMAC 015 Medical Kit - designed with divers for divers

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SEADOG Commercial Diving School or upgrade their tickets for offshore diving recognised under the International Marine C ont r a c t o r s Association (IMCA) Code of Practice.” The increase in the number of different nationalities visiting SEADOG’s Diving School has also allowed the company’s own instructors to develop a deeper understanding of the differing needs and requirements of individuals working in a variety of operational areas. This in turn helps to enhance the growth and cultural awareness of the company itself. “Certainly I think the growth we have experienced has helped enhance our own training capabilities, particularly on the medical side of the business,” Thomson says. “Today we are far more aware of the different stresses encountered in different environments when unforeseen incidents occur. Obviously certain countries will always have unique problems; however I feel that our own development means our instructors are more flexible and able to meet individual student needs.” The medical side of the business, or the Commercial Diving and Offshore Consultancy (C-DOC) to give it its proper title, is one that has always been close to Thomson’s heart, seeing as it is where she started herself, back in 1999.

C-DOC DMAC 015 Medical Kit - designed by the C-DOC Occupational Health and Safety Team

The role of C-DOC is to assist the commercial diving industry to embark on a program increasing the health and safety of members in diving operations and to ensure an easily accessible service for education, training, development and consultation in diving health and safety by establishing a network that the design strategy may be measurable to evaluate trends and successes in the field for future decision making. “C-DOC and my own personal experience have always given SEADOG a very solid foundation, and indeed a strong reputation,

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to build upon,” Thomson enthuses. “What I want to do now, especially now that I see the Diving School thriving in the hands of our instructors, is turn more attention to promoting C-DOC.” The company’s diver medic training is already well known throughout the oil and gas sector and Thomson has spent the last

year helping further to spread this reputation by travelling to Asia and its oil and gas hubs. Here she has been working with the SSS Recompression Chamber Network in order to make high quality training more accessible to companies within the region. “There is so much we can offer our clients from a medical perspective,” Thomson

“What I want to do now, especially now that I see the Diving School thriving in the hands of our instructors, is turn more attention to promoting C-DOC”

C-DOC South Africa & Thailand Training centres for IMCA DMT and Refresher training

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credit: Mohammed Rashad Photography

SEADOG Commercial Diving School

Sunset over Saldanha Bay from SEADOG Commercial Diving School, South Africa

event of an accident. The highlights. “One such C-DOC medical kit has been offering is something that carefully divided into three we are very excited about, modules and a reflective and proud to present is the new DMAC kit. Designed rescue jacket to ensure Growth in attendance with divers (DMT’s) for optimal usage by the diver at SEADOG Commercial who is not a trained health divers, and facilitated by the Diving School since the care professional. The bag C-DOC Occupational Health end of 2012 itself can then be opened up and Safety Crew.” into an emergency stretcher. Developed in line with The stretcher width is the 16 years of experience that Thomson has had working with compatible with that of the bilge plates and divers, the C-DOC Modular DMAC 015 kit trunkings of a chamber allowing for quick is systematically packed to allow quick and and efficient transfer under pressure. “With C-DOC, our immediate aim is to easy access to equipment in the unforeseen

40%

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SEADOG Commercial Diving School. Training provider for the Oil & Gas industry worldwide

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SEADOG Commercial Diving School strengthen our core service by making it more accessible not just to our local markets, but also to the larger, multi-national oil and gas companies,” Thomson says. “This will bring us in line with the oil and gas producer’s (OGP) goal to assist in the development of a strong safety culture and to pursue IMCA’s goals to encourage the sharing of experience, ideas and aspirations. Meanwhile, from a training perspective we are tailoring our training to focus on stepby-step methods that will help divers in their time of need, regardless of their location.” With the Diving School catering for a record number of divers, a trend that Thomson naturally hopes will continue, her plans for the year ahead for C-DOC are understandably at the forefront of her mind. “I truly hope that when we speak a year from now C-DOC will have been approached by IMCA, OGP and some of the big oil and gas companies, and medical directors to integrate all these great training scenarios and standards to identify opportunities for improved performance and raise awareness of occupational health and safety in diving operations. That for me would be very exciting - to actually see the work of my company actually filter down through oil and gas companies and to see it having a hugely positive impact on all those that risk their lives under the sea.” For more information about SEADOG Commercial Diving School visit: www.divingschool.co.za www.c-doc.co.za

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Eskom - Kusile Power Station Project

power to the people The on-going construction of Eskom’s Kusile Power Station Project highlights precisely how a large-scale new build project should be built for the benefit of local people and communities

written by: Will Daynes research by: Vincent Kielty

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Eskom - Kusile Power Station Project

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stablished as the Electricity Supply grow to more than a trillion rand by 2026. Commission in South Africa in This will ultimately see Eskom double its 1923, it was in July 2002 that capacity to 80,000 MW by that same year. One of the major undertakings with Eskom was converted into a public, limited liability company, Eskom’s Build Programme is the development wholly owned by government. Today Eskom of the Kusile Power Station, a coal-fired is responsible for generating approximately power station being built near Emalahleni 95 percent of all the electricity used in in Mpumalanga, the contracts to which are South Africa and approximately 45 percent valued at around R31.5 billion and were of that used in Africa. awarded to the company in February 2008. Among the top 20 utilities in the world by Terracing work commenced on the project generation capacity, with a net maximum in mid-2008, with the first unit going online self-generated capacity of 41,194MW, Eskom during 2013. Work on the station is expected directly provides electricity to about 45 to be completed come late 2016. Located close to the percent of all end-users in South Africa, with the other existing Kendal Power 55 percent being resold by Station in the Nkangala District of the Mpumalanga redistributors, including municipalities. Province, the Kusile site At home Eskom generates, is about 1,355 hectares in Of all electricity used in transmits and distributes size and represents Eskom’s South Africa is generated most advanced coal-fired electricity to industrial, by Eskom power plant project. m i n i ng, com me r c ia l, agricultural and residential Upon completion the customers and redistributors. Meanwhile station will consist of six units, each rated at outside of South Africa’s borders the approximately 800MW of installed capacity, company buys electricity from and sells giving a total of 4,800MW. This will make it to the countries of the Southern African one of the largest coal-fired power stations Development Community (SADC). in the work once finished. The coal itself will In 2005 Eskom commenced activity be sourced from Anglo Coal’s New Largo on its Build Programme in South Africa, and Zondagfontein collieries. The first unit a programme revolving around the is planned to begin commercial operations construction of additional power stations in 2014. Thereafter, the other units will and major power lines on a grand scale in be commissioned at approximately eight order to meet rising demand for electricity month intervals, with the last unit expected in the country. Up to the end of 2013 the to be in commercial operation by 2018. company’s capacity expansion budget was To date, the project remains on schedule to R385 billion, a figure that is expected to meet its target date.

95%

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TRANSFORMING BUSINESS BUILDING OUR NATION T-Systems is a localised ICT services multinational which is fully committed to South Africa’s national priorities and is going beyond compliance to become a leader in transformation and deliver innovative ICT that works for South Africa.

www.t-systems.co.za


Eskom - Kusile Power Station Project Kusile Power Station also holds the not inconsiderable honour of being the first complex of its kind in South Africa to have Flue Gas Desulphur ization (FGD) installed. A highly sought after, state of the art technology, FGD is used to remove oxides of sulphur, sulphur dioxide for example, from the exhaust flue gases created in power plants that burn coal or oil. This technology is fitted as an atmospheric emission abatement technology, in line with current international practice, to ensure compliance with air quality standards.

This is of particular importance in the case of Kusile, which is located in a priority airshed or airshield. The construction of Kusile Power Station is having, and will continue to have, a major positive impact on the lives and the economy of the community of the Nkangala District. Job creation is expected to reach a peak of over 12,000 direct jobs during the plant’s construction, with homes and social infrastructure constantly being developed around the site to serve its many thousands of contractors. Today some 8,000 people

T-SYSTEMS SOUTH AFRICA T-Systems South Africa is an ICT services provider with a unique blend of German heritage and local shareholding. Partly owned by Deutsche Telekom, the company established a local office in South Africa 16 years ago and has since grown to become a leading ICT outsourcing company in the country. Today we can proudly say that we have been able to combine the ingenuity and commitment of our employees, 97% of whom are South African, with the technology and international best practice of our majority shareholder Deutsche Telekom, to deliver “ICT that works” for our customers. In order to create value for our customers and help build our nation, T-Systems South Africa is focused on transforming business in three key areas:

• Transforming business through ICT that works • Transforming business through innovation • Transforming business in South Africa, for South Africa To transform our business in South Africa, for South Africa, T-Systems has been on a journey of accelerated transformation, and can now proudly say that we are a leader in terms of enterprise supplier development and employment equity within the ICT industry. T-Systems South Africa is proud to be associated with utility provider Eskom and to provide permanent converged network infrastructure at its Kusile Power Station in Mpumalanga, and would like to congratulate them on all of their successes. www.t-systems.co.za

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can be found working on the construction site, more than 40 percent of which reside in the local area. As a result of Eskom’s construction activities alone, Nkangalas’ gross domestic product (GDP) is expected to increase by approximately 25 percent per year. On a wider scale the power station will also be

responsible for a 0.35 percent rate of annual growth for South Africa as a whole, with approximately 40 percent of the project cost expected to be spent locally. The lasting contribution that Kusile Power Station has already made to surrounding communities cannot be overstated. To date its construction has enable countless numbers

“Kusile site is about 1,355 hectares in size and represents Eskom’s most advanced coal-fired power plant project”

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Eskom - Kusile Power Station Project

of residents from eMalahleni, Delmas Ogies, Phola and other neighbouring towns to be able to provide for their families by being employed on the project. Meanwhile, local businesses also continue to benefit greatly from the project, from those within the hospitality and catering sectors to construction and material supply businesses. The project has a multi-package contract strategy, and included in each contract is a strong focus on the requirement for local development, a focus that falls under Eskom’s Competitive Supplier Development Programme. The focus here is on local employment, business

development, sustainability and financial investiture to leave a long-term legacy in Mpumalanga and South Africa. It is thought that from 2008 until 2019 the Kusile Power Station Project will have had a direct impact on the lives of some 88,600 people, be it in the form of employment, skills development or through community support. Whichever way you look at it that is one impressive legacy for any project to have. For more information about Eskom Kusile Power Station Project visit: www.eskom.co.za

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PET Project BevPak has successfully taken modern PET bottle technology into the challenging Nigerian market: now it is looking further afield

written by: John O’Hanlon research by: James Boyle

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BevPak

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BevPak

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n the short space of five years since BevPak was established in Ibadan, Nigeria’s third largest city, the company has put down strong roots in Nigeria. In 2008, a group of entrepreneurs bought a small operation in the city and equipped it with modern machinery to produce the preforms from which PET bottles are blown. The Managing Director of this operation is Syd Carter, who has 18 years’ experience in the PET conversion industry in Africa. The rationale for setting up BevPak was simple. Nigeria is a country with a huge population of nearly 170 million people – and it is a growing economy, underpinned by its substantial oil reserves. While it is well developed socially, educationally and politically by the standards of sub-Saharan Africa it also has a massive potential for growth in most consumer sectors, not least food and drink. Nigeria’s very size and complexity have proved a disincentive for many investors who prefer a tidier market, but Carter and his associates saw the opportunity and were prepared to take the risks. The venture was based on an understanding of the industry’s fundamentals. “Traditionally there are three different options for packaging beverages: glass bottles, metal cans and PET bottles. Nigeria has always been a predominantly glass bottle market,” he explains. These days there is a movement into PET for its clear advantages, principally driven by convenience: it is lightweight, it is resealable after opening, and it is safe to the user – no cuts or damage can be done with a PET bottle. From the customer’s point

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1.5 million BevPak’s daily preform output of view, PET bottles carry no deposit, and they are easy to recycle. There is a good recycling infrastructure in Nigeria, where people perceive value in waste, so there is a good rate of conversion of PET into fibre for stuffing mattresses and pillows, and other uses. PET fibre is one of the most widely produced synthetic fibres. It is put to use in products as different as tyre cords and clothing. Recycled Pet for use in PET bottles is not yet produced in Nigeria at this stage – bottle-to-bottle recycling is expensive and requires much greater volumes to make it viable. Carter is confident that this will become a reality once the PET market in Nigeria reaches sufficient volume to justify the investment. The Ibadan factory of BevPak now employs 64 people. Ibadan is only 120 km from Lagos, and offers certain advantages: “Many of our staff can walk to work: in Lagos they would probably face a two hour commute – each way!” says Carter. Since the factory is a 24/7 operation this degree of proximity is a significant help. Infrastructure is also a challenge, as it is throughout Africa. Electric power is unreliable to the extent that a factory like BevPak’s has no option but to generate

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BevPak

its own, and there is no municipal water supply. The state of the roads throughout most of the country is not good; nevertheless Carter has been impressed by the ability of the transport contractors who truck the preforms across this large country to deliver. The ingenuity of Nigerians

to get a job done in the face of problems does them credit, he feels, and is one of their many strengths. When BevPak arrived in Nigeria it entered a market that was becoming increasingly sophisticated. Customers were looking for the same advantages as their counterparts

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in Europe or America. They wanted lighter preform system from US-based Kortec, Inc. weight products, longer shelf life and One of the characteristics of polyethylene better performance from the packaging terephthalate (PET) bottles is that they permit they were buying, as well as the ability the slow passage of gases through the bottle to add value through design and colour. wall. This means that a carbonated (‘fizzy’) drink will eventually go These customers welcomed the advent of a manufacturer flat over a period of time. who could give them these Multilayer technology options, plus a high level of inserts a layer of much less local technical support. “We permeable material that slows down the migration of put a big emphasis on aftergas and can extend the shelf sales support,” he says. People employed at Ibadan life of carbonated beverages In 2009 BevPak invested in a state-of-the-art multilayer by a factor of two.

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BevPak

“Up to now we have been concentrating on good growth in the local market but now realise there is potential for export” Another advantage of using a multilayer bottle is that it can be made lighter, since it does not rely on the thickness of the bottle wall to hold the internal pressure. This is good news from an environmental point of view. Since gases can also migrate inward

through single layer PET, beverages, like beer and fruit drinks, are sensitive to oxygen seeping from the atmosphere into the drink. However, a practical shelf life of six months or more can be achieved using multilayer PET bottles, comparable to the performance of glass bottles. BevPak is an integral part of the business of its customers in many ways, beyond simply supplying them with a value-added product. The factory can produce 1.5 million preforms a day, and can supply the bottling plants at short notice so the customers do not need to store large quantities of stock. As we have noted they can work with BevPak to create bottle shapes that will help market their products, and bottles whose performance will keep those products in ideal condition. Now it is installing a new line in the factory to make closures. Every bottle needs a cap: from early 2014 BevPak will be a one-stop shop for its customers. That will mean expanding the workforce as well as the equipment. As the latter becomes more sophisticated, so do the skills needed to operate and maintain it. BevPak places great importance on retaining the skills it needs: “We invest time and money in training our staff,” says Syd Carter. “We do a lot of this work in-house, and augment that

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BevPak with specialist training from the equipment suppliers, either in-house or by sending staff to their premises. Finding good staff is a key aspect to a successful operation,” he adds. “We have been fortunate in being able to recruit some very able people. Low staff turnover and good training have been important factors in our success.” Already one of the largest manufacturers of PET preforms in West Africa supplying the world’s leading brands of soft drinks and mineral water, and major bottlers throughout Nigeria, BevPak is also looking outward. It would like to become a regional player, and in preparation for that it has secured certification to the ECOWAS Trade Liberalisation Scheme (ETLS). Once the customs unions of the 13 ECOWAS countries have completed their paperwork, BevPak customers based in those countries will be able to import their preforms and closures duty free. “Up to now we have been concentrating on good growth in the local market but now realise there is potential for export,” Carter explains. However in the coming year thirsty Nigerians will provide plenty of opportunity to grow the business locally, and BevPak will be working closely with its customers on lightweighting, high performance, and how best to complete the transfer to the most versatile form of packaging available today. For more information about BevPak visit: www.bevpaknigeria.com

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Zambeef

Feeding a nation

Zambeef has grown from very humble beginnings to become one of the largest integrated agri-businesses in Zambia

written by: Will Daynes research by: Jeff Abbott

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Zambeef

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ith limited capital, the company known as Zambeef was incorporated in 1994. Employing 60 staff, slaughtering 180 cattle per month in a rented abattoir, delivering meat via a single Land Rover and selling it through two rented butcheries, it was very much a small-scale operation to begin with. Nevertheless, through a combination of organic growth and acquisitions, the company went on to become one of Zambia’s largest agri-businesses, achieving a compounded organic growth rate of over 20 percent in real terms between 2003 and 2008 alone. Today boasting annual revenues of approximately US$255 million and providing employment for more than 5,500 people, the Zambeef group is principally involved in the production, processing, distribution and retailing of beef, chicken, pork, milk, dairy products, eggs, edible oils, stock feed, flour and bread. The group also has large cereal row cropping operations, principally maize, soya beans and wheat, with approximately 8,350 hectares of row crops under irrigation and 8,650 hectares of rain-fed/dry-land crops available for planting each year. Furthermore, the company is today is the process of rolling out operations into Nigeria and Ghana. The scale of Zambeef’s current operations is truly staggering. In addition to slaughtering some 60,000 cattle per year it is also responsible for producing approximately eight million litres of milk, 20 million eggs and 120 million tonnes of feed per annum, while also processing 3.5 million chickens and 90,000 hides.

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....keeping Zambia moving Established in 1992, Autoworld has positioned itself as one of the leading companies in the motor trade industry in Zambia with eleven branches throughout the country. Autoworld is a retail store and fitment centre catering to the needs of any vehicle or boat with an extensive range of quality guaranteed products and services offering a one stop shopping experience. We primarily operate in the replacement automotive parts industry with a focus on product ranges from accessories through to lifestyle equipment. Autoworld are dealers in both automotive and marine products from a wide range of global manufacturers.

Our product & service range offered includes: • Motor Vehicle Parts • Accessories • Tyre Specialists • Garage Equipment

• Fitment Centre • Boats • Marine Engines • Marine Accessories

Tel: +26 0211 237716/19 | Fax: +26 0211 223323 Email: info@autoworldzambia.com | www.autoworldzambia.com


Zambeef While the size of the autoworld business has changed Established in 1992, Autoworld has positioned itself as dramatically since the midone of the leading companies in the motor trade industry 1990s, its vision and strategy in Zambia with eleven branches throughout the country. remains virtually the same, Autoworld is a retail store and fitment centre catering to that being for Zambeef to be the needs of any vehicle or boat with an extensive range seen as the most accessible of quality guaranteed products and services offering a one stop shopping experience. Our vision at Autoworld is to and affordable quality protein keep Zambia moving by supplying a staggering range of provider in the region, and vehicle, marine and lifestyle products. to increase the efficiency www.autoworldzambia.com and capacity of its primary production facilities. To achieve this, the Zambeef group continues to pursue a vertically integrated business model, from primary production to processing and distribution to retailing the finished products in a value-added form directly to the end consumer through its own extensive retail network. The vast majority of Zambeef’s food products are retailed directly to the end consumer through Zambeef’s extensive retail network. Indeed the company has one of the most impressive distribution and retail footprints in Zambia, consisting of 91 retail outlets, three wholesale centres, six fast food outlets and 20 Shoprite butcheries. The company’s three wholesale centres were opened in 2011 in order to attract

“Zambeef group continues to pursue a vertically integrated business model” BE Africa | 207


Versapak Zimbabwe began operating in Harare in 1995. The company is the leading manufacturer and distributor of expanded polystyrene and printed rigid plastics in the country. Product Range Foam Trays & Boxes for •Butcheries •Fruit & vegetables •Fast Food available in both plain and printed varieties Rigid Products •Dairy Product yoghurt cups •Yeast containers•Disposable cups Bottle and Jars •Petroleum Jelly jars and closures •Beverage containers Other products •Clingfilm for both industrial and domestic use • Vacuum bags •Fomopads -which are used to absorb excess moisture in packaging

We always strive to bring the best products to the consumer by using the latest advances in technology such as in our “Ultra-zorb” range of products that eliminate the use of the traditional fomo pad. We recognise the need to care for the environment and are actively involved with Environmental Agents, Non – Governmental Organisations and Local Authorities. We have a wide network of distributors who offer their customers professional service and advice as well as competitive prices. We also sell directly to the public.

For a list of distributors please visit our website www.versapak.co.zw


Zambeef business from the large commercial sector in Zambia. Versapak Zimbabwe was established in 1995 and is the Elsewhere, Zambeef is leading manufacturer and distributor of Plastic Packaging in continually investing in the country. Our company has a proud history of involvement upgrading and refurbishing in the food packaging industry and offers high quality existing stores as well as products that meet both local and export market demands for opening new retail outlets food grade packaging of the highest standards. Versapak supplies the Zimbabwean market and exports each year. It also operates one products to Zambia, Malawi and DRC. of the largest transport and www.versapak.co.zw trucking fleets in Zambia, which are serviced and maintained at its own workshop. One particular quality that the business possesses that assists it in standing out amongst similar enterprises in the region is its commitment to the continuous improvement of its environmental and social management. To this day the company continues to subscribe to the United Nations Millennium Development Goals, while also actively assisting and supporting worthy causes, activities, organisations and charities. Among the important aims that Zambeef supports is the eradication of extreme poverty and hunger, achieving universal primary education, the improvement of basic health care, and the fight against HIV/AIDS, malaria, TB and other diseases. Zambeef has also signed up to an

Versapak Zimbabwe Pvt Ltd.

$255 million The company’s approximate annual revenue

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UNITY Quality and Service

Unity group of companies based in Zambia are experts in packaging and distribution with a strong subsidiary specializing in work-wear and clothing. “Unity� group of companies is the preferred supplier to the Zamanita Group of Companies, Zambian Breweries, Tradekings Group and other leading biscuits and beverages manufacturers in Zambia VISIT US ONLINE

www.unity.co.zm UNITY | Ulengo Road, Ndola, ZAMBIA. Phone: +260-212-650222 | Fax: +260-212-650131 | Email: info@unity.co.zm

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

Seen www.bus-ex.com


Zambeef

Environmental and Social Action Plan, which for Zambian citizens and local pension funds requires the company to achieve a number of to buy shares in the company. With most local international standards on the environment, pension funds as shareholders in Zambeef, health and safety, and social responsibility. almost every full-time Zambian employee The most recent independent consultant benefits from the success of Zambeef, which reports stated that Zambeef continues to make ensures the company helps with wealth good progress in delivering the approved creation within Zambia. Environmental and Social Action Plan. Further to this, Zambeef has a number of Perhaps not surprising, given its size, operations in largely rural areas, and in many Zambeef is one of the largest employers in the of these rural areas the company is one of country. It also boasts a strong the largest business partners development record, being and employers, through one of the largest investors the procurement of locally in the agricultural sector in produced raw materials, Zambia over the last ten years. resulting in povert y The company’s listing on alleviation and sustainable Employees working the Lusaka Stock Exchange in development of these for Zambeef today rural economies. 2003 provided an opportunity

5,500+

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Zambeef Examining what the immediate future holds for Zambeef it is clear that the company’s aforementioned integrated business model provides it with strong foundations for growth, foundations including the underpinning of margin capture and value-add, the security of its supply chain, and the reducing of risk and earnings volatility. Several recent large capital investments have certainly helped showcase the company’s determination to grow further still. These have included successfully integrating crop production to its Mpongwe farm ahead of budget, and the upgrading and expansion of its activities at uts subsidiary Zamanita, where it has doubled its crushing capacity. Targeted re-investment on the other hand is helping to drive Zambeef’s organic growth, specifically through the increasing of its production and efficiencies in its stock feed, dairy and milk processing divisions, and by adding additional retail and wholesale outlets where they are required. All of this combined is expected to see the company return to positive net cash generation over the coming year. This will enable Zambeef to start paying meaningful dividends from 2014. With the company well placed to achieve its long-term ambition of becoming one of the largest food producers in the region, it is understandable why the board of Zambeef looks forward to the future with confidence. For more information about Zambeef visit: www.zambeefplc.com

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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

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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

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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

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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

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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 Africa | 221


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

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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

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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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228 | BE Africa


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

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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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Aveng Trident Steel established a newSteel processing the Tete Aveng Trident featureplant text toingo here... provinceipsum of Mozambique serve consectetur coal mining Lorem dolor sit to amet, and relatedelit, infrastructure development adipisicing sed do eiusmod tempor in the province. incididunt ut labore et dolore magna aliqua. Trident Steel is South Africa’s Ut Today enim Aveng ad minim veniam, quis nostrud leading steelullamco distributor andnisi processor, exercitation laboris ut aliquipand ex lastcommodo year it contributed percent the ea consequat.twelve Duis aute irureof dolor group’s R51 billion consolidated turnover. in reprehenderit in voluptate velit esse cillum With itseu main operation centrally situated in dolore fugiat nulla pariatur. Excepteur Roodekop, Germiston andnon additional facilities sint occaecat cupidatat proident, sunt Alrode, Port Elizabeth, Rosslyn in culpa quiDurban, officia deserunt mollit anim id and Cape Town, theipsum company a est laborum. Lorem dolorsupplies sit amet, wide productadipisicing range to the industry in consectetur elit, steel sed do eiusmod South Africa as well internationally from tempor incididunt ut as labore et dolore magna its extensive yards, and quis its modern aliqua. Ut enimsteel ad minim veniam, nostrud exercitation ullamco laboris nisi ut aliquip ex

ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

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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RÖHLIG-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 Africa | 237



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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The City of Tshwane

Tshwane on the move The City of Tshwane is fast-tracking a new public transport policy aimed at social transformation as much as traffic decongestion

written by: john o’hanlon research by: james boyle

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A

city grows up over decades, an expression of the society that creates it. As society changes, the city becomes a repository of its own past, reflecting layers of its history. So Rome is a modern capital and at the same time a museum of a past civilisation. Not ideal for cars, but they live with it! But some of South Africa’s urban legacy is not so worthy of preservation, and they don’t need to live with it. A case in point is that the major conurbations are still largely laid out along pre-1994 lines, when the major centres of employment were situated downtown in what is called the Central Business District (CBD), with the middle class mainly white population in conveniently placed suburbs. The majority of the workers had to live in townships at arm’s length, and well outside of the ‘better’ parts of the city. South Africa’s transformation took place a mere 20 years ago, as we are painfully reminded in the immediate aftermath of the death of its architect Nelson Mandela. Though progress has been made it has been neither practicable nor affordable to rebuild the cities from scratch and a number of legacy problems mean that too many of the previously disadvantaged remain disadvantaged. On top of the congestion that rising GDP has delivered, as it has everywhere, too many of the working population have to make a long and difficult journey to and from their place of work. The City of Tshwane is one of the worst affected. It was formed in 2000 from the amalgamation of 13 local councils including

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The City of Tshwane


amongst others Pretoria, Centurion and Ga-Rankuwa. Its population today stands at about 2.9 million compared to 2001 when it was 2.1 million. In 2011, the City of Tshwane announced that it would develop an Integrated Rapid Public Transport (IRTPN) through the provision of a high quality and affordable public transport system. The plan focuses on high-frequency corridors where passengers are transported on a dedicated lane where public transport should enjoy priority over private transport. The plan will also provide Tshwane with a permanent and recognisable public transport framework consisting of radial and circular routes. Bus Rapid Transit (BRT) was identified as the appropriate mode of transport to lead the transformation of public transport in the city. The target market for A Re Yeng is everyone living in the City of Tshwane, and those visiting too. The present transport options are not integrated, says A Re Yeng’s Executive Project Leader (EPL) Lungile Madlala. “There is a government subsidised bus system but in the City of Tshwane there are only two subsidised operators, serving limited routes.” For the rest, she says, people rely on a plethora of minibus operators. There is no integration: “We need to integrate all modes of transport

Signing the MOU: City

including rail, with universal access so you don’t have to walk far from your house to link with a service that will take you where you need to go.” Ms Madlala and her team visited cities all over the world before concluding that South America had the closest model to South Africa’s, to use as a benchmark for Tshwane’s own BRT. Over the next three years the city is expecting to spend R3.6

“We need to integrate all modes of transport including rail, with universal access” 248 | BE Africa


The City of Tshwane

y of Tshwane’s Mayor, Cllr Kgosientso Ramokgopa (centre) with representatives of Tshwane Regional Taxi Council

billion implementing the Though providing the new system. This represents outlying townships with the cost of building new affordable and reliable sections of bus lanes, transport, the system is stations and depots, around designed with all sections Of Tshwane’s buses will 154 new vehicles, and of society in mind, she be powered by CNG supporting infrastructure emphasises. A key benefit will be to provide car owners such as the intelligent with a realistic alternative, transport management system, CCV cameras, and the upgrading reducing inner city congestion. Public of the entire traffic light system that will transport will take priority, she promises, give priority to BRT buses. In line with with non-motorised transport options Tshwane’s Sustainable Energy and Climate facilitated by providing cycle tracks and Change (SEED) programme all the buses walkways designed around the access points procured will conform to the highest to the system. emissions standard Euro 4, and 30 percent So what will happen to the many private of them will be powered by Compressed bus and taxi operators once the A Re Yeng Natural Gas (CNG). becomes operational? Far from losing their

30%

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livelihood, they will be brought into the system, empowered and given a boost. The industry has survived without government subsidies: now it has new opportunities. When the city and the Greater Tshwane Regional Taxi Council (GTRTC) and Transport Operators Peace Initiators Conglomerated Associations (TOPICA) signed a Memorandum of Agreement (MOA) in June the chairman of GTRTC Mr Abner Tsebe gave his full support, saying: “The mayor wants to see billionaires created out of this project. We can actually own and run the BRT buses ourselves if we work together and are united.” It will be a bit like a co-operative, says Lungile Madlala: “They will come in and have shares in the

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Bus Operating Company. That way they will all have assets in a new business that is more economically viable.” Clearly the present private operators will have to commit or leave the business, taking a payoff from the operating company – competition on the A Re Yeng routes would not fit the new business model. However a high level of buy-in is expected. Upskilling, training, a regular income and benefits are among the many new rights that the scheme will bring to its operators. As well as stimulating existing employment opportunities BRT will generate approximately 12,000 new jobs including those related to construction.


The City of Tshwane

“Former taxi and bus operators will all have assets in a new business that is more economically viable” The first phase of construction is already in full swing, with some sections of road and one station building already completed at Arcadia Street, Hatfield. This inception phase, stretching seven kilometres from Nana Sita Street (formerly Skinner Street) in the CBD to the suburb of Hatfield, will be complete and operational in 2014, says

Madlala. “Then by the end of 2015 we will be working on a bigger scheme that will run from Rainbow Junction (Wonderboom Station), which a new urban core to the north of the city, to the CBD. In 2016 we plan to link with the Menlyn Node, which is another major development project.” The A Re Yeng system is far more than merely a transport project, Lungile Madlala emphasises. It will contribute significantly to building a national democratic society. Reduced travel times between home, work, retail and social destinations and improvements in traffic congestion and road safety are just a start. “It will stimulate areas that are quite depressed. We will encourage development in the region of the stations, and these areas will be kept safe and secure. We want disabled people, single women, mothers and children all to feel safe at all times,” she says. The fact that CCTV cameras will monitor the entire system should make people feel more confident, and a reduction in crime will certainly be another side effect of A Re Yeng. For more information about The City of Tshwane visit: www.tshwane.gov.za

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ATLAS CARGO SYSTEMS LIMITED carries on

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