ACHIEVING BUSINESS EXCELLENCE ONLINE INCLUDING
DHL africa: Prepa:
MONTHLY EDITION April 2014
Fortescue Metals Group Cloudbreak mine
Breaking down barriers
Julie Shuttleworth discusses Fortescue’s approach to embracing diversity
goldcorp marlin Mine:
Included The BE Mining Directory showcases leading mining organisations from across the world, ranging from big corporations to junior mines and their supply chains. Be seen throughout our portfolio of magazines: •BE Mining Directory •BE Mining •BE Weekly •BE Monthly •
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business excellence
Business John O’Hanlon Editor johanlon@bus-ex.com Will Daynes Editor wdaynes@bus-ex.com Matt Johnson Art Director mjohnson@bus-ex.com Louise Culling Production Designer lculling@bus-ex.com Richard Turner Director of Sales rturner@bus-ex.com Vince Kielty Director of Editorial Research vkielty@bus-ex.com
Business Excellence brings you content from leading business influencers and strategic thinkers providing inspiration and guidance to help you and your business grow. We showcase some of the best examples of successful organisations from around the world giving you a unique insight into how they operate.
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Contributors George F. Brown, Jr. Consultant & Author
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Stephen Archer Business Analyst & Director Spring Partnerships Dr. Bernard Meyerson Vice President of Innovation at IBM
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features
12 Strategy
Positive pricing experiences
12
Take a proactive approach to pricing and turn online competition from a threat to an opportunity.
18 executive insight
Julie Shuttleworth
General Manager of Fortescue’s Cloudbreak mine discusses her proudest achievements, her inspirations and the lessons she has learnt throughout her career.
22 Innovation
Managing sustained innovation for a smarter planet
Extraordinary outcomes can be achieved when the right people, infrastructure, and motivation come together.
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contents
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38
30 Top ten
Technologies to watch out for in 2014
Here are ten emerging technologies which are gaining traction as they move from development prototypes to becoming commercially viable products.
38 hot topic
The rise of the MINT countries
44
Together Mexico, Indonesia, Nigeria and Turkey represent the MINT countries, a collective that could hold the key to future prosperity for countless individuals and businesses.
44 economics
10 lessons from the great 21st century Recession
‘Great Recession’? Of course not greater than the Great War 100 years ago but let us not forget the lessons of this lesser skirmish since it arguably affected so many people.
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business showcases
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MINING & MINERALS: 48 Fortescue Metals Group – Cloudbreak Breaking down barriers
Julie Shuttleworth discusses how Fortescue’s approach to business attracted her to the company, and her goals and objectives for the years ahead.
60 Goldcorp – Marlin Mine Guatemala’s gold standard
The first gold mine of significant size in Guatemala, Goldcorp’s Marlin Mine continues to make new discoveries that are increasing its life expectancy.
76 Alamos Gold
A track record to be proud of
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The secrets behind the company’s success and how its commitment to responsible mining has improved the lives of many.
contents
86 Aggreko
Power in place
The world leader in temporary power solutions, Aggreko helps governments in meeting the needs of entire populations and keeps industry growing through all contingencies.
96 EXSA Peru
Creating exact solutions
86
In expanding its value proposition, EXSA is positioning itself to remain as influential to Peru’s mining sector as it has been for the last six decades.
106 Reliable Controls
Better Controls and Plant Commissioning
We spoke to founder, President and CEO Ed Macha about the industry, the challenge, and his personal vision.
116 Essar Steel Minnesota LLC (ESML ) Pellet perfection
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Edging closer to the completion of a state-of-the-art open pit mining, concentrating and pelletizing plant.
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business showcases
130 Weatherly plc
130
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.
142 Banro
Producing and prospecting
Banro Corporation’s recent achievement of production at its Namoya mine transforms it into a two-mine company targeting more than 225,000 ounces of annual gold production.
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154 GeoQuest
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.
Transport & Logistics: 162 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.
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contents
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178 Al Rashed International Shipping Company
In the right place at the right time One of the primary contributors towards the growth being witnessed across the Middle East.
186 Port Everglades All part of the plan
A combination of world-class facilities and innovative leadership has made Port Everglades a powerhouse of international trade, travel and investment.
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194 Jamaican Urban Transit Company A route to excellence
A company which has become a major pillar of economic development on the Caribbean island.
Infrastructure: 200 aktor
Greece’s construction colossus
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Greece’s largest construction company, AKTOR has grown to become a major player on both the local and international stages. BE Monthly
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business showcases
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oil & gas: 210 PREPA – Puerto Rico Electric Power Authority
Bringing change to the Caribbean
Puerto Rico’s principle electricity provider is moving forward with plans to shift the island’s dependence from petroleum products to natural gas and renewable energies.
220 Ecopetrol
More clean barrels
The face of the O&G industry is changing fast, and nowhere more so than in Colombia which is blessed with large resources both conventional and unconventional.
230
230 Petroleos Mexicanos – PEMEX Moving Mexico forward
Mexico’s largest enterprise and biggest taxpayer intends to invest a record amount in 2014 in order to maintain its position among the world’s elite oil companies.
238 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.
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contents
250
250 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: 260 Dalkia Energy
260
Making environmental progress through energy
One of Europe’s leading energy companies, Dalkia provides innovative solutions and technologies to support sustainable growth and enhance environmental best practices.
268 Consolidated Water Water in a time of drought
Consolidated Water Co Ltd is a Nasdaq listed company that provides the commodity that, after air, is the most essential to life: it uses the latest technologies in the interests of the populations that depend on it.
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food & drink: 278 Camanchaca
Feeding the world from the ocean
Camanchaca’s quality fish products have made it a leading player on the international stage
BE Directory 288 FRUTIGER Company AG
worldwide customers
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LUE A V • LUE
VALUE
E U L A V • E U L A •V
• VA E U L • VA
e v VALUE • VALUE • i VALUE • V t i s E U L A V Po • E U L A •V E U L A •V E P U L r A V i • c E i U L A V • VALUE VALUE • VALUE • VALUE • VALUE
Take a proactiv o pricing and turn from a threat to ge Word s by Geor
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VALUE • VALUE • VALUE • VALUE • VALUE • VALUE
VALUE • VALUE • VALUE
ing
Experiences VALUE • VALUE • VALUE • VALUE • VALUE • VALUE
• VALUE • VALUE
ve approach to on online competiti y o an opportunit e F. Brown, Jr.
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I
n a recent discussion about customer experience that had been lively and provocative, the room went silent when the topic of pricing surfaced. That was not surprising, as it’s easy to anticipate that a low point in most customer experiences involves the discussion of prices. Even ads for car dealers have focused on the ways in which they’ve taken trauma and tension out of the purchasing experience, alluding to the industry’s tradition of unpleasantness during price negotiations. And the competitive environment of recent years has probably added to the difficulty that exists in coming to agreement on price. We have all heard quotes like the following. “The only way we got people into our store over the holidays was with massive discounts.” “My customers had to go down market during the recession, and they aren’t moving back up.” “We keep losing share to private labels in the Big Boxes, all due to price.” While the above challenges are solidly based on reality, making pricing a
got “The only way we ore over people into our st with the holidays was ” massive discounts
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daunting topic, firms that proactively manage pricing strategy with the right tools in place can produce significant top- and bottom-line results. A point gain in realized prices can yield a much larger proportional improvement in profits. And the evidence is strong that there is a strong correlation between margins and negative customer experiences – and that correlation goes the wrong way. Firms pay a price when the customer experience turns negative when the topic of price arises. In my work with clients on pricing, two themes have emerged that can help to translate pricing into a positive element of the overall customer experience. The first lesson is well-reflected in a quote from Warren Buffet: “Price is what you pay. Value is what you get.” Over and over, observing the flow of the sales process, the focus on value disappears when the discussion turns to price. It is almost as if a gate has slammed shut, closing off all the valid reasons that had previously been communicated to the customer when the discussion shifts to price. One of my clients has used a tactic of responding to customer requests for lower prices with an almost immediate offer to move down the Good-Better-Best spectrum to the product that matches the price request made by the customer, carefully pointing out the tradeoffs that are implied by that choice. This tactic, in his opinion, allows him to show respect for the customer’s price request, but at the same time allows him to focus
Strategy
on the value contributions associated with the highpriced product first and “One firm success fully introduced foremost. He believes a premium price pro that by doing this, he duct into an is able to link value in credibly challengin and price in the mind g market of his customer. And, by implementing a strategy that as one additional ‘g ave customers an benefit, he believes option that that this approach they could refuse’” allows the focus of the customer experience to return to the positive themes associated with the value being delivered. Another client emphasizes in its sales training programs that not every it. Their marketing program emphasized price challenge is a real threat. There the value associated with the high-priced are segments and customers in just option, and implicitly told customers that about every market that are willing to the decision on price was theirs, that pay for product and service superiority. they could go either way, and that they This firm emphasizes that remembering would get what they paid for. – and, more importantly, reinforcing – Several years ago, Charlie Peters, the non-price advantages that they offer Senior Executive Vice President and can enable their sales team to avoid a member of the Board of Directors of unnecessary participation in the vicious Emerson, gave the keynote address at cycle of price-based competition. One of a meeting of the Professional Pricing their slides reads “Don’t discuss price. Society. His presentation offered many Discuss value.” It is a good message. insights and actionable suggestions, Still another firm successfully gained from his experiences as the pricing introduced a premium price product czar at Emerson. But the cornerstone of into an incredibly challenging market his advice, which he returned to time by implementing a strategy that “gave after time, was that the key to success in customers an option that they could realizing attractive prices was delivering refuse.” That strategy offered the best value to customers. It is a message that of both worlds – the firm didn’t take a should always be at center stage. major risk because it continued to offer In industry after industry, I have seen a low-priced option, but it gained upside examples of firms that were able to realize potential from customer segments that premium prices by learning of the unmet wanted more and were willing to pay for and poorly met needs of their customers,
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and responding to them. One client with whom I worked several years ago started off a discussion by lamenting that the product line is question involved a stable and well-understood technology, some of the best companies from three continents, and little opportunity for innovation. I asked him if that view was shared by the customers who bought that product, and his response emphasized the high levels of satisfaction that were reported in survey after survey. My follow-up question was whether those surveys had ever asked for a “wish list” not presently offered by those in the market, and the response was that had never been asked. When we subsequently did ask that question, the results were surprising. While about 60% of those that answered did not suggest items on their wish list, the remaining 40% had wish list requests. Two of the wish list items most frequently mentioned were not only feasible additions to the product line, but were relatively easily implemented. “Create value to capture value” is an enduring lesson, one that if remembered
omers that “I heard from cust process, not g n ci ri p e th s a w it had triggered t a th , se r e p s ce ri p negative reactions”
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can help to ensure that the discussion about pricing becomes a positive element of the customer experience. If your firm is delivering value to your customers, you can be rewarded for it, through a price premium or otherwise, and customers can be comfortable with that fact as long as they see the linkage between value and price. The examples and suggestions above have returned to this theme over and over, deliberately. Creating value is the route to making pricing a positive experience. The second theme that emerged in research on how pricing fits into the overall customer experience addressed a different dimension of the overall customer experience. And it is, once again, something that can be managed so as to avoid problems. In many interviews, what I heard from customers was that it was the pricing process, not prices per se, that had triggered negative reactions. Such comments weren’t reflecting more instances of the old-time car sales environment. Rather, they reflected frustration over delays, approval processes, duplicative paperwork, information gaps, and other ways in which the customer is “run through the gauntlet” in order to make a purchase. In one interview, a customer of one of my clients gave the following advice: “If there was one thing I’d tell [your client], they should try to buy one of their own products. It’s a nightmare if there is any complexity whatsoever to the transaction. We love their products, but hate to do business with them. I don’t know how to fix this, but I will
Strategy
tell you that it’s costing them sales.” Pricing processes are an “Pricing processes important part of the customer that are experience, and if the customer customer-friendly is put through the wringer, and that v that can be the element alue the customer ’s time are ones that is most remembered. th at will increasing In one recent project, I had ly become ‘table the opportunity to interview stakes’ for many su ppliers” purchasing executives that had shifted a meaningful portion of their buys to Internet-based suppliers, including some of the new providers like Amazon Supply. What I heard, over and over, can be summarized in a single phrase: “easy Pricing will always be part of the to do business with”. I certainly heard customer experience, and ensuring comments about the breadth of the that it is a positive part will become product lines that were available, strong more and more critical. Firms that take logistics, and low prices, but the “easy a proactive approach to pricing and to do business with” theme was the one find a way to explicitly link price to that was communicated with feeling the value delivered to their customers and was typically the first dimension are going to be rewarded. And pricing of the experience that these purchasing processes that are customer-friendly executives mentioned. Pricing processes and that value the customer’s time that are a positive part of the customer are ones that will increasingly become experience will become a more and more “table stakes” for many suppliers. The important differentiator in the future, as rewards from making pricing a positive such Internet-based competitors grow part of the overall customer experience and enter into new markets. can be enormous.
About the author George F. Brown, Jr. consults with industrial firms on growth strategy through his firm B-to-B Advisors, Inc. He is the coauthor of CoDestiny: Overcome Your Growth Challenges by Helping Your Customers Overcome Theirs and the cofounder of and a Senior Advisor to Blue Canyon Partners, Inc., which he served as CEO for fifteen years. George has published frequently on topics relating to strategy in business markets, including articles in Industry Week, Industrial Distribution, Chief Executive, Business Excellence, Employment Relations Today, iP Frontline, Industrial Engineer, Industry Today, and many others. gfb@BtoBAdvisors.com
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Executive Insight
Julie Shuttleworth Julie Shuttleworth, General Manager of Fortescue’s Cloudbreak mine discusses her proudest achievements, her inspirations and the lessons she has learnt throughout her career Edited by
Will Daynes
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Nobody’s perfect. What quality or ability do you wish you had?
hiking, canyoning and have travelled to over 90 countries.
I wish I could sing in tune (and I am sure many other people wish that as well!).
Who or what do you think is overrated?
What is the best business book you have ever read, and why?
Beach holidays in Mauritius (especially when compared to Western Australian beaches!).
The Concise Communicator, by Clive Simpkins. It’s a small book, with great practical tips about communicating, presenting and public speaking. I did a training session with Clive when I was working in Africa and he has even stayed in touch since. Someone you would most like to have met, living or dead, and why? I would have most liked to have met my grandfather, who I never met as he passed away before I was born. Many people still talk about him and say how he was such a special person. I also think some of the scientists from a few hundred years ago would have been interesting to meet, whose formulas, findings and inventions we all learn about at school. What do you consider to be your major achievement (in life or business)? For me it’s that I’ve had a great career and a lot of fun at the same time. For example I regularly go scuba diving, mountain
What mistakes have you made (professional or otherwise), and what did you learn from them? Learning how to manage stress has been important for me; whilst on the outside I can appear calm and happy, on the inside I can be a whirlwind… resulting from putting lots of pressure on myself, trying to do too many things at once, going from one meeting to the next with no time to consolidate in between, working late, long hours (12 to 18 hours a day), eating too much cake and chocolate, not putting time aside for exercise, and not getting enough sleep. It’s not good to keep that up for too long! What have I learnt?..... • Delegate to others (don’t try and do everything yourself) – things might not get done as quickly as you want but you have to learn to live with that. • Make time to exercise regularly and eat healthy. I once saw a poster that said “Someone busier than you is running right now”.
“Delegate to others (don’t try and do everything yourself) – things might not get done as quickly as you want but you have to learn to live with that” 20 |
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Executive Insight
“It’s essential to spend time in the field every day with your team, getting to know and understand their jobs, discussing and improving safety, and ensuring you are approachable to the workforce” • W henever possible don’t pile meetings up one on top of each other (make time for myself during the day so I am not still working at 10pm). • I also have to take a step back and remove the self-induced pressure. Why am I stressing about it? Will this thing I am stressing about really matter in two weeks’ time, in two years’ time, in 20 years’ time? Which one piece of wisdom would you pass on to your successor? It’s essential to spend time in the field every day with your team, getting to know and understand their jobs, discussing and improving safety, and ensuring you are approachable to the workforce. Who has been your inspiration professionally? No one person has inspired me professionally. By observing styles of other leaders I learnt what does (and does not) work well. How would you like to be remembered after your retirement? As a positive competent leader in the mining industry, totally committed to safety, who was approachable, achieved
results for the business, who had a positive impact on careers of thousands of people, and who smiled lots. Do you have a quote or motto you live (or work) by? Two mottos: Smile lots! Go for it!
Read the FMG article on page 48: Showcasing an in-depth look at Fortescue Metals Group and the Cloudbreak mine.
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Innovation
Managing sustained
innovation for a smarter planet Extraordinary outcomes can be achieved when the right people, infrastructure and motivation come together Words by
Dr. Bernard S. Meyerson
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nnovation has always been essential for any organisation wanting to grow. The importance of sustained innovation however, has been less widely recognised up until recently, but is taking on more significance as a result of two key factors. Firstly, many companies that failed to sustain innovation during the downturn have subsequently struggled or not survived. This trend is evident when comparing the findings of McKinsey’s annual Global Survey of CIOs, CEOs and executives. In 2007 (the year before the financial crash), the ability to innovate was valued highly by 54 per cent of respondents. In 2010, this figure was 84 per cent. The bottom line is that after every major economic downturn, it is the companies that have continued to innovate that have survived. Secondly, we must prepare for a postsilicon era. After decades of consistent improvement in the cost, capability and ubiquity of computing, equally steady progress in silicon technology (often referred to as Moore’s Law) means we have reached the point where ever more material constituents in transistors have shrunk such that quantum phenomena render them useless. The notion of everlasting generations of smaller, faster and less costly technology has run
squarely into immutable laws of physics. Put succinctly, atoms don’t scale. These factors have ensured the rebirth of innovation, with future progress in IT performance being realised through new system architectures and materials, and emerging fields such as cognitive computing and its application to Big Data. But before going any further, some words of caution: It is essential to approach innovation as an engine that can take 30 years to start and three minutes to kill. Companies should acknowledge this before turning the key either way in the ignition. Essential elements There are some key ingredients required to enable sustained innovation within an organisation. The most important element of course is people. The main challenge however, is that a very different type of individual is required to manage innovation than would have been sought in the past – the days of relying on someone with four PHDs and three Masters, but who is unable to communicate their ideas to a wider audience, are gone. Indeed, the type of innovator IBM looks for shares two basic properties: tremendous depth, in that they are exceptionally bright; and the ability
“The type of innovator IBM looks for shares two basic properties: tremendous depth, in that they are exceptionally bright; and the ability to communicate their ideas broadly and operate as part of a team” 24 |
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Innovation
“If sustained innovation had not taken place once the disk drive was invented, the average laptop today with an internal spinning hard disk would weigh about 250,000 tons” to c om mu n ic ate their ideas broadly a nd operate as part of a team. In today’s commercial environment, innovators that are infinitely deep but have no breadth are limited in value, as they are unable to share their ideas or learn from their peers. There are also two types of innovator required for sustained innovation. There are the ‘discontinuous innovators’ that have the ‘big ideas and “ah-ha!” moments, who every now and again invent something groundbreaking. At IBM for example, we have Robert Dennard, who invented the one device memory cell, more commonly known as Dynamic Random Access Memory (DRAM). Dennard also solved one of the conundrums about Moore’s Law by coming up with the right recipe for placing twice the number of transistors on each subsequent generation of chips of the same size, while keeping the power requirements constant from generation to generation. Then there are the ‘continuous innovators’, these are the people who
drive small and steady improvements that are nonetheless vital to sustained innovation. A good example is the team at IBM who drove decades of improvements in disk drive technology. If this type of sustained innovation had not taken place once the disk drive was invented, the average laptop today with an internal spinning hard disk would weigh about 250,000 tons. In addition to a combination of types of innovator, you also need an infrastructure that enables these people to collaborate effectively on a global basis. Such collaboration is necessary across disciplines, organisations, markets, and cultures. Put simply, you don’t get your best result when you have a single, homogenous effort. Scaling versus Moore’s Law Innovation is a matter of increasing importance because information technology is reaching an impasse. One of the core issues is that Moore’s Law has a logical end. If the industry continued to produce a silicon chip that is half the size every 18 months, then eventually
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it would be splitting atoms (and we all know what happens if you do that!). Already, the industry is fast approaching the physical limits of silicon technology. We are also reaching the limits of being able to scale technology out to ever larger systems and data centres. Indeed, what is remarkable with innovation is that you have to revisit every assumption you have ever made about technology. Everyone thinks you don’t have to worry about light being too slow for a given operation but in actual fact it is. Technology today is so fast that one of IBM’s chips performs a complete work cycle in the time it would take a beam of light to travel about 2cm. In the context of a data centre, where many machines can be working together on the same problem but are located hundreds of metres apart, there can be vast delays because the optics employed to transmit signals between them isn’t fast enough. This is why we need to find new ways of making com municat ions faster. Ironically, the
trick is to start innovating by inverting everything that’s been done before in order to improve things. This is where it gets really interesting. With ‘chip stack’ technology for example, it is possible to create an entire system by thinning individual chips to 50 microns, then stacking some 30-50 thinned chips to form a single chip that is just a couple of millimetres high, reducing communications distances within an individual system from metres to millionths of a metre. Light isn’t getting any faster, so you “simply” make communication distances shorter. Data, the new oil Despite nearing its limits, silicon technology will still be employed for many decades yet. The difference is that the innovation will come from the integration of hardware, software, systems, and network functionality, compressing communication distances, as light is way too “slow”. Fundamentally, after years of scaling out systems, the focus has come full circle and the architecture is
“With ‘chip stack’ technology, it is possible to create an entire system by thinning individual chips then stacking them to form a single chip that is just a couple of millimetres high, reducing communications distances within an individual system from metres to millionths of a metre” 26 |
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Innovation
“Data itself has become an issue, because information technology is generating ever-greater volumes of data that needs to be stored” now “scale in” since you get huge benefits from proximity in both reduced communication delays and decreased power requirements to send signals given the much short distances involved. At the same time, chip stacking presents huge technological and material challenges, not least in terms of powering and cooling chips buried mid-stack. You now have 30-50 times the number of chips, and thus transistors, in an area and volume where there had once been only one chip, so this system in a single chipstack presents many issues yet to be fully resolved. Nevertheless, progress is being made with this technology, and since the distance between memory and logic shrinks to microns as opposed to metres or more, the power required for signalling is reduced substantially. There is also some elegant work being done in with optics being integrated onto the chip stack, because conventional electrical signals would not be able to transfer data at the speeds or over the interchip distances as required.
Even data itself has become an issue, because information technology is generating evergreater volumes of data that needs to be stored. More importantly, it must be used effectively. In the words of respected sof t ware i n du s t r y ent repreneur and technology leader Ann Winblad: “Data is the new oil. In its raw form, oil has little value. Once processed and refined, it helps power the world.” Data is now an asset, but it will call for a petabyte of storage class memory, or some vast new high-speed storage device to manage it, as well as a new suite of software tools – or ‘analytics’ – to understand it. Again, how we approach data requires an inversion of the conventional model of data management – i.e. quantities of data are now so vast you cannot move it to a central compute engine, you must invert that process and have many compute engines operating on a vast central yet constantly evolving data store. Even more critical, over time one must innovate so as to analyse incoming data “on the fly”, and store only ones
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The IET Prestige Lecture Series Bernard Meyerson presented t he IET/BCS Turing Lecture at the Royal Institution, London on Monday 24 Febr ua r y, Cardiff University on Tuesday 25 February, The University of Manchester Wednesday 26 February, The University of Edinburgh, Thursday 27 February, a webcast of the lecture can be viewed here. The free to attend lecture was part of the IET’s Prestige Lecture Series, many of the lectures were established in memory of engineers who achieved exemplary and ground breaking work in their day. The speakers invited to give IET Lectures are of that calibre – innovative, forward-thinking and at the top of their game. The IET is one of the world’s largest organisations for engineers and technicians. It has 153,000 members in 127 countries and is leading the development of a global engineering and technology community to share and advance knowledge to enhance people’s lives. Showcasing the latest ideas and technologies, the nine lectures cover a variety of engineering disciplines, ranging from general interest to the more technical. www.conferences.theiet.org/lectures
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learnings, disposing of the vast raw data flow that might drown one over time. Shooting for the moon Integrating analytics tools with realworld data opens up great possibilities for improving lives, enabling problemsolvers to be proactive instead of reactive. For example, advances in data analytics makes it possible to predict the flow of traffic, and combat congestion and traffic jams. In Singapore, models can now predict future traffic jams from current road conditions, and electronic road pricing is implemented to manage traffic patterns through toll prices and other measures that steer traffic into new flows to eliminate a jam that would have otherwise developed. One literally alters the future. The uses for Big Data are literally boundless, but the IT industry and its partners must use these analytical tools to enable solutions for a smarter planet. Probably one of the biggest societal changes passed by virtually unnoticed in 2010: It was the first time in the history of mankind that more people lived in a city than in a rural area. Move forward 20 years and there will be almost 2 billion people migrating to major urban
“The uses for Big Data are literally boundless, but the IT industry and its partners must use these analytical tools to enable solutions for a smarter planet”
Innovation
“The Apollo space programme cost is estimated at $25.4 billion, about $150 billion in today’s money, but it ushered in an exciting new era of technological development and has delivered countless innovations”
centres. This is a sobering thought, and why it is so important we get cities right. Back in 2008, IBM’s chairmen Sam Palmisano said that the company would fund great ideas for a Smarter Planet to the tune of up to $100 million, challenging all employees to propose sustainable businesses serving the public good in key areas of challenge. Sustainability was key, as then society benefits on an ongoing basis. Setting such a grand challenge is the best way to drive a team to innovate, and possibly the greatest example in modern history is the US space programme. In 1961, President Kennedy challenged NASA to land a man on the moon and return him safely to earth before the end of the decade. NASA’s space programme
saw the Apollo 11 astronauts realise President Kennedy’s dream on July 20, 1969. The Apollo space programme cost is estimated at $25.4 billion, about $150 billion in today’s money, but it ushered in an exciting new era of technological development and has delivered countless innovations of huge benefit to society – from freeze drying technology to the materials used in frying pans. We’ve certainly come a long way since man first landed on the moon. The Apollo Guidance Computer had just 4K RAM and a 2MHz CPU; the average smart phone today has 256 MB of RAM and a dual core 1.2 GHz CPU. The rub is that the technology shrink that achieved these gains has almost run its course, so we need to find other ways to push things forward.
About the author Dr. Bernard Meyerson serves as Vice President of Innovation at International Business Machines Corporation. Dr. Meyerson served as the Chief Technical Officer and Vice President at IBM Technology Group. He has held this position since October 2005. Dr. Meyerson joined IBM as a Research Staff Member in 1980 and was later promoted to the Vice President of the Communications Research and Development Center.
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top ten technologies to watch out for in 2014 Here are ten emerging technologies which are gaining traction as they move from development prototypes to becoming commercially viable products Written by: Will Daynes
Top Ten
Stefano Tinti / Shutterstock.com
1 Graphene Thinner than a sheet of paper, yet 200 times stronger than steel and more conductive than copper, in the eyes of many Graphene is the future. Branded as a “supply critical mineral” and a “strategic mineral” by the US and the EU, Graphene is today being used throughout the world in order to achieve critical advances in various industries and technologies, from more efficient solar panels to building lighter aircraft. Everyday items are also starting to benefit from the minerals unique properties, from batteries that last up to ten time faster to phones and computer displays that bend and fold.
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2 Virtual Reality (VR) Once the stuff of science fiction, Virtual Reality (VR) is set to take a major step into the everyday lives of people this year. Following the crowd-sourcing success of Oculus Rift, which this year revealed its Crystal Cove prototype headset, gaming giant Sony has unveiled its own device, which it has dubbed Project Morpheus. “We believe VR will shape the future of games,” where the words of Shuhei Yoshida, president of Sony’s Worldwide Studios. Applications will however extend beyond gaming, with aspects of VR technology being incorporated into many of the most exciting new innovations, for example Google Glass.
technologies 3 3D Printing While the technology has existed since the 1980s, it has only been in the last few years that 3D printers have become more widely available on a commercial level. Today 3D printing technology, the market for which was valued at around $2.2 billion worldwide in 2012, is being utilised for prototyping and distributed manufacturing across a plethora of industries such as architecture, construction, industrial design, automotive, aerospace, military, engineering, dental and medical care, biotech and even the food sector.
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Top Ten
5 Advanced Robotics
4 Unmanned Aerial Vehicles (UAV) Until now the term Unmanned Aerial Vehicle (UAV) or Drones have had an almost purely military connotation, what with their use being embraced by the US and other armed forces in recent combat operations. While their military applications will undoubtedly grow in the years to come, attention is now turning to what some are calling the untapped commercial use of these pilotless aircraft. Potential future uses of UAV’s includes the monitoring of crops, fighting forest fires, inspecting power lines and pipelines, and delivering vaccines to remote parts of the world.
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The idea of creating machines that can operate autonomously dates back many a decade, however it was until the second half of the 20th Century that fully autonomous robots became a reality. In 2014, robotics is an ever-growing field with commercial and industrial robots more widespread than ever before. Often used to perform jobs more cheaply, and more accurately and reliably than humans, robots can today be found being used in manufacturing, assembly, transport, earth and space exploration, surgery and laboratory research. With innovations in sensors and processing, modern robots are able to tackle more complex tasks with greater ability to adapt and more dexterity than ever before.
www.flickr.com/photos/jurvetson/
technologies
7 Driverless vehicles
6 Space Tourism In 2001, American Dennis Tito became the first space tourist, travelling into the atmosphere on an eight day trip that included a stopover at the International Space Station. Since then only six other people have shared such an experience. Nevertheless, predictions remain that the Space Tourism industry is set to become a billion-dollar market in the coming years, claims backed up by the fact that Virgin Galactic, one of a number of private space agencies, had sold around 500 tickets worth $200,000 each by the end of 2012 alone.
2013 was a landmark year for driverless, or autonomous, vehicles, with the US states of Nevada, Florida, California and Michigan becoming the first to pass laws permitting such vehicles on their roads. In the wake of this several European cities in Belgium, France and Italy now intend to develop transport systems for driverless cars. It marked the latest step in the development of the automotive sector, one which numerous experts predict will see 75 percent of all vehicles being autonomous by as early as 2035. BE Monthly
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Top Ten
8 Wearable Tech The world has come a long way since the introduction of the calculator watch during the 1980s, a device which at the time was among the very first pieces of widespread worn electronics. Today the development of wearable technology that will be adopted on a global scale is a crucial aim of the world’s leading tech firms, from Samsung’s new range of Galaxy Gear to Google Glass, the search company’s wearable glasses that it hopes will take the planet by storm. The application of wearable tech also extends far beyond commercial means, with the medical and military industries continuing to prototype and roll out new devices and solutions at a rapid rate.
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technologies
10 Digital Currencies
9 Big Data Never before has so much data been readily available. But how do you get any useful information out of such large data sets? Data collection is becoming so large and complex that it is virtually impossible to process using traditional database management tools or processing applications. With advances in technology such as semantic language processing, and without the financial constraint to cost effectively store and process huge collections of data, more and more businesses are looking to more unstructured data as a source of customer and business intelligence. Big data is also big business with an influx of new dedicated information management specialists, software firms and businesses that excel in big data management and analytics. In 2010 it was calculated that the Big Data market on its own was already worth more than $100 billion, a figure that has continued to grow by ten percent annually since, twice as fast as the software business as a whole.
Introduced in 2009, Bitcoin was the first cryptocurrency, a digital medium of exchange that is electronically created and stored, to begin trading and remains today the best known and most abundant digital currency, with roughly twelve million bitcoins in existence as of November 2013. Since Bitcoin first appeared numerous other cryptocurrencies have been created, many of which share the characteristic of slowly introducing new units in order to mimic the scarcity and value of precious metals and avoid hyperinflation. What they all share however is a design to replicate Bitcoin’s successes in 2013 when its value at one point topped the $1,000 mark. Will 2014 be the year that a new contender steps up to challenge Bitcoin’s dominance? BE Monthly
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The rise
MINT cou
Individually, Mexico, Indonesia, Nigeria increasing importance. Together they re that could hold the key to future prosperit Words by
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Wil
Hot topic
e of the
ountries
a and Turkey are growing economies of epresent the MINT countries, a collective ty for countless individuals and businesses
ll Daynes
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Hot topic
F
irst coined in 2001 by Jim nations and become the next standout O’Neill of Goldman Sachs, the group of emerging nations. acronym BRIC, referring to the Originally known as MIST, before countries of Brazil, Russia, India South Korea was dropped in favour of and China, is today an almost universally Nigeria in October 2013, average growth recognised entry in the economic of the MINT economies between 2009 dictionary. While the fact that the four and 2012 was recorded at 4.7 percent by countries account for over a quarter of the the International Monetary Fund’s World world’s land mass and are home to more Economic Outlook, a figure projected than 40 percent of the world’s population to grow at around 5.2 percent through cannot be denied, projections of the to 2018. Such a result would see the future power of the BRIC countries more than keep nations have always pace with the BRIC differed widely. At one nations, narrowing end of the scale there a gap that has been are those that believe shrinking since 2009. that they may overtake So what is it about the economies of the G7 the aforementioned Of the world’s population live in nations by 2027, while countries that afford a MINT country more conser vative them such high esteem? predictions it will be For starters all four after 2050 that the boast large, young and combined economies of expanding populations, the BRIC countries will eclipse those of a quality that differs significantly from the current richest nations in the world. the likes of China and its rapidly ageing Either way it is clear that impact of the population and one that in theory BRIC countries will continue to be felt for should lead to increases in domestic the foreseeable future. consumption in the near future. In the meantime, a new neologism The MINT countries also benefit from has entered the business lexicon, again their respective geographic positions. popularized by O’Neill. The neologism Mexico has enjoyed increasing demand in question is MINT, referring to the for exports from the US in recent years, economies of Mexico, Indonesia, Nigeria Indonesia lies at the heart of Asia and and Turkey, countries that O’Neill and in close proximity to the likes of China other likeminded economists expect and Australia, Nigeria stands poised to to take up the mantle from the BRIC become a hub of Africa’s blossoming
40%
“Growth of the MINT economies between 2009 and 2012 was recorded at 4.7 percent by the International Monetary Fund’s World Economic Outlook” 40 |
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Rise of the MINTs ($ trillions) Gross Domestic Product 2012
Estimated GDP in 2050
Ranking
16.24
US
1
China
52.62
8.23
China
2
US
34.58
5.96
Japan
3
India
24.98
3.43
Germany
4
Euro Area
2.61
France
5
Brazil
9.71
2.47
UK
6
Russia
8.01
2.25
Brazil
7
Japan
7.37
2.01
Russia
8
Mexico
6.95
2.01
Italy
9
Indonesia
6.04
1.84
India
10
UK
5.69
1.82
Canada
11
France
5.36
1.53
Australia
12
Germany
5.22
1.32
Spain
13
Nigeria
4.91
1.18
Mexico
14
Turkey
4.45
1.13
South Korea
15
Egypt
3.61
0.88
Indonesia
16
Canada
3.47
0.79
Turkey
17
Italy
3.42
0.77
Netherlands
18
Pakistan
3.33
0.71
Saudi Arabia
19
Iran
3.19
0.63
Switzerland
20
Philippines
3.17
0.26
Nigeria
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22.51
Source: World Bank, Goldman Sachs
“As is the case for many an emerging market, the MINT countries continue to face issues including bribery and corruption on a large scale� economy, while Turkey exists as something of a gateway into Asia and Africa for the European Union. Despite the positive features the MINT countries possess, a number of concerns and challenges remain that can potential lead to issues for those individuals and organisations looking to commit capital into these respective regions. As is the case for many an emerging market, the MINT countries continue to face issues including bribery and corruption on a large scale, high levels of debt, governance issues, poor infrastructure development and inadequate education systems. No doubt spurred on by the knowledge that only by being seen to be tackling such issues will alleviate the fears potential
investors will have surrounding these issues, leaders of the MINT nations are at least working towards solutions to these challenges. In Mexico a programme of energy reform is well underway, while changes to its education system, fiscal policy and even the structure of its government are in their formative stages. Meanwhile, Nigeria is taking great strides towards solving a long standing issue, that being energy shortages. For decades now the country has relied solely on gas as its principal energy source and this is a situation that it and the World Bank are hard at work trying to correct. What they both hope will be the answer is the attracting of a $100 million clean technology fund that will help boost the
MINT: The pros and cons Mexico
Natural resources
Location (USA)
Crime
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Indonesia
Young population
Drugs
Strong central bank
Corruption
Natural resources High inflation
Location (Asia)
Inequality
Political uncertainty
Hot topic
availability and use of renewable energy in the country. Diversification of Nigeria’s energy sector is seen as one of the best ways of bringing investment into the country, thus helping its economy to grow as a result. Even with the above challenges the advance of the MINT nations seems set to roll on unopposed. According to Londonbased research service WealthInsight, MINT countries will this year surpass both their BRIC peers and the G8 block in the global race for millionaires. In the service’s study and its list of countries set to create the most millionaires this year, the MINTs are poised to rank within the top eight, led by Indonesia, which is expected to see a 22 percent increase in the number of millionaires this
year. Indonesia is then followed by Nigeria with a ten percent increase, Turkey with an 8.5 percent increase and Mexico with a seven percent increase. BRIC has been a popular phrase in the world of business for some 13 years now, however there is a new group of countries on the scene, each positioned ideally to shine in the way Brazil, Russia, India and China have in the last decade. If current trends continue it goes without saying that the countries of Mexico, Indonesia, Nigeria and Turkey will become increasingly important figures on the global business stage. The big question that leaves us with is what will be the next acronym to take the world be storm?
“All four boast large, young and expanding populations, a quality that differs significantly from the likes of China and its rapidly ageing population”
Nigeria
Natural resources
Foreign investment
Poor infrastructure
High unemployment
Turkey
Exports (Petroleum, Rubber, Cocoa)
Location (Europe and Asia)
Construction projects
Poverty
Political unrest
Volatile currency
Industry (Textiles and mining) Corruption
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Economics
10 lessons from the great 21st century Recession ‘Great Recession’? Of course not greater than the Great War 100 years ago but let us not forget the lessons of this lesser skirmish since it arguably affected so many people. It was (and still is) the greatest economic crisis since 1929 – the so-called Great Depression. So what are the lessons for businesses? Words by
Stephen Archer
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The seven year economic
1 cycle is a dead concept
It used to be the case and is supported by much evidence that economics tended to go in seven-year cycles: seven years climbing and seven years declining. We are now nearly six years on from Lehman’s collapse though the current recession dates back to a year before that when LIBOR rates spiked suggesting a collapse in confidence in bank debt amongst banks themselves. The interconnectivity of global markets and economies means that each economy is more likely to be affected by a global than domestic issue today. Warning signs may be around the globe, not around London, New York or Tokyo. We disregard warning signs at our peril, but warning signs are now far harder to discern.
The bankers and even the governors of our economies were once seen as heroes. Years of growth seemed unstoppable; a new paradigm of continuous growth became accepted wisdom. More scepticism would have been wise but the words of caution that did exist were shouted down and suppressed. Looking back now at the unfettered free market dogma of Greenspan and even Adair Turner now looks like terrifying folly – because it was. Those that created huge wealth and helped economies grow did so with insufficient rigor and doubt. Yes, doubt, it’s a good thing; the check on hubris.
We should embrace and
Though I may suggest naming recessions they will still be unreliably forecast just as weather forecasters so often fail. Economists of all hues lost huge credibility in the Great Recession. Few saw it coming and few predicted its course even after it started. This is a problem but for businesses the best hope is to focus on the economics and influences for the markets in which their industry operates. Each industry has own response to recessions. However, the global and macro economic factors cannot be forgotten.
2 even name recessions
Like the hurricanes that hit America we should name the recessions and connect better with them. This is not to say that we should wallow in them but this could I think help us avoid denial, increase understanding and reduce ignorance. We all suffer the consequences and can contribute to the recovery so let’s keep recessions top of mind and not allow politicians to exploit them for their own ends.
“We disregard warning signs at our peril, but warning signs are now far harder to discern” 46 |
Beware the heroes – they
3 too often fall like Icarus
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Beware the forecasters –
4 complexity is defeating them
We need to understand
5 the new global order
‘When China sneezes the US catches a cold and the rest of the world feels sniffly’. The global nature of capital flows and political impact is something to be concerned
Economics
about. We are not able to vote for people who may determine our economic destiny. Those in business, especially big business need to take greater political and economic responsibility and do so responsibly.
“In the Great Recession we saw debt ruin entire countries and severely damage their social fabric”
When it’s in the news
6 the horse has bolted
The signs of the last recession were clear for many months, even years before it hit home. The speed of such events may be alarming but the lag from cause to effect needs to be better understood and managed. This recession started not with the consumer but with banks. More could have been done to insulate the consumer and business in future. Understand why we
7 are doing well
When it all goes wrong in the economy or business there is always an inquest. Such rigorous examination is rarely to be seen when things are going well. Such are the seeds of complacency and ignorance and yet when things are going well we have the time and funds to really understand why and in so doing understand the risks to sustaining success. Look after the next
8 generation
Humans have the selfish (survival gene) but survival and decadence with decay are not behaviours separated by much. We tend to think of our children, as having to look to for themselves and to some extent this is correct and healthy. But we do not have to make it hard for them by ruining the resources that could
be available to them if we took more care. This applies to business too. Debt can be a bad
9 thing, VERY bad.
Debt for consumers and businesses can lead to ruin. In the Great Recession we saw debt ruin entire countries and severely damage their social fabric. (Iceland, Spain etc.) That debt in sovereign states is now even larger than it was in 2008 with little sign of reducing. Businesses depend on debt finance but have in recent years found it hard to get or undesirable to attain. The reality is that our thinking about debt wisdom needs careful clarification. The global debt model is broken but for businesses it’s repairable. Learn
10 There are some good books on the recession (e.g. Kenneth Rogoff) Read one or two of them. If nothing else you may come away trusting fewer people. That may not be such a bad thing.
About the author Stephen Archer, Business Analyst and director of UK business consultancy, Spring Partnerships www.springpartnerships.com
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Breaking dow
Fresh into her role as general manager of discusses how Fortescue’s approach to bu workforce attracted her to the company, and
written by: Will Daynes |
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Fortescue Metals Group - Cloudbreak
wn barriers
the Cloudbreak mine, Julie Shuttleworth usiness and embracing of diversity in the d her goals and objectives for the years ahead
research by: Jeff Abbott
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I
think it is fair to say that Julie Shuttleworth recognises a great mining development when she sees one. For 13 years Shuttleworth was a part of Barrick Gold, working at various sites in Tanzania and at its Granny Smith mine in Western Australia where, in her role as general manager, she led a team of around 700 people. It was during her tenure at Granny Smith that she would also earn a number of industry accolades, including the title of Australian Mining mine manager of the year in September 2011 and being named among the top ten influential women in mining. “Having achieved a great deal during my time with Barrick, I reached a point where I wanted to look for a new challenge when it came to my own career development,” Shuttleworth tells me. “Fundamentally I was looking for an opportunity whereby I could be general manager of a larger mine site, and preferably one located in Western Australia.” Bearing the aforementioned criteria in mind, the opportunity to take on the role of general manager at Fortescue Metals Group’s Cloudbreak mine, located 89 kilometres westsouth-west of Nullagine in the Pilbara region of Western Australia couldn’t be more tailored made for Shuttleworth if it tried. It was with this opportunity on the table that she joined Fortescue Metals Group in October 2013. Cloudbreak was Fortescue’s first mine site, making its first iron ore shipment in May 2008. With a workforce of approximately 2,000 employees and around 1,000 contractors, the mine today processes some 40 million tonnes of iron ore per annum. This ore is prepared and refined within the screening, crushing
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Loading ore at Port Hedland
Fortescue Metals Group - Cloudbreak
40 million tonnes Of iron ore processed by Cloudbreak per annum
Train loaded with ore
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and desand plants based at the Cloudbreak ore processing facility before being stockpiled ahead of transport to port. Meanwhile the site’s train load out facility feeds up to 16,000 tonnes of ore per hour onto 2.7 kilometre long trains that make the journey along a custom built railway to unloading facilities based at Herb Elliot Port in Port Hedland. “My first impressions of Cloudbreak were very positive indeed,” Shuttleworth continues. “The first thing that strikes you is the highly positive energy around the place and the go-getting attitude. There is a major emphasis on team work, with everyone from all levels of the workforce keen to help one another. Fortescue as a business has always possessed a strong set of values based on concepts such as family, enthusiasm and empowerment, and those are clearly present at Cloudbreak.” Coming into the fold as general manager at an operating mine was always going to be a challenge in itself, with the most important thing being to hit the ground running and get up to speed with things as soon as possible. Therefore it was all the more important that Shuttleworth came into her first day in the job with a clear set of objectives for the mine. “One of the main objectives I have is to drive continuous improvement forward in the area of safety and health across the
Fortescue Metals Group - Cloudbreak
Nev Power, CEO, and Julie Shuttleworth, GM, in open pit at Cloudbreak
mine site,” she states. “That is a fundamental requirement for any general manager and I am working constantly with the whole Cloudbreak team, including leadership and safety representatives, to implement greater improvement across the business. The other area of focus for myself is the production side of the mine, particularly working with the processing department to optimise throughput of Cloudbreak’s ore processing
facility, while also handling a number of other important ongoing areas such as managing costs and so forth.” This is certainly a good time to be a part of the Fortescue family. In the last five years the group has undertaken a massive ramp up program, bringing online several other mines and thus increasingly the group’s total production volumes. This in itself is a huge achievement given the dip in price iron
“Fortescue as a business has always possessed a strong set of values based on concepts such as family, enthusiasm and empowerment” BE Monthly | 53
Fortescue Metals Group - Cloudbreak Feature text to go here... sedDespite do eiusmod tempor ore suffered in elit, 2012. the pressure Lorem ipsum dolor sit amet, incididunt ut labore etsuccess dolore this created Fortescue’s ongoing consectetur adipisicing elit, magna aliqua. enimand ad once again highlighted that a Ut flexible minim quis adaptable business willveniam, invariably benostrud able to sed do eiusmod tempor incididunt ut labore et dolore exercitation weather challenging times. ullamco laboris magna aliqua. Ut enim ad ut aliquip ex ea commodo Fortescue alsonisi holds the distinction of being minim veniam, quis nostrud consequat. aute irure one of the biggest supportersDuis of Aboriginals in exercitation ullamco laboris Australia, leading the way the employment dolor in in reprehenderit in nisi ut aliquip ex ea commodo of Aboriginal people andvelit the esse contracting voluptate cillum consequat. Duis aute irure of Aboriginal run companies. Two months dolore eu fugiat nulla prior to Shuttleworth joining the business, dolor in reprehenderit in pariatur. Excepteur sint is a caption in August 2013,occaecat Fortescue announced it voluptate velit esse cillum This is a caption this cupidatat that non has reached its target of awarding $1 billion dolore eu fugiat nulla proident, sunt in culpa qui pariatur. Excepteur sint occaecat cupidatat in officia deserunt anim id to estAboriginal laborum. contracts and mollit sub contracts non proident, sunt in culpa qui officia businesses Lorem ipsum dolor by the endsit of amet, 2013, aconsectetur target that deserunt mollit anim id est laborum. Lorem had been setelit, in 2011 was achieved six adipisicing sed and do eiusmod tempor incididunt ut labore et dolore magna aliqua. First train fromsit Solomon ahead of schedule. ipsum dolor amet, mine consectetur adipisicing months
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with multi-unit configuration provide high availability; units can be started and stopped according to load demand without impacting the maintenance schedule. Wärtsilä DualFuel (DF) engines offer fuel flexibility; DF engines operate on natural gas (with only 1% diesel consumption) but can switch to 100% diesel mode in the event of interruption in gas supply. In addition to the technical advantages, our fast track deliveries of complete power plants, together with longterm operation and maintenance agreements, provide our customers with complete solutions– in urban areas as well as in the most demanding remote environments. www.wartsila.com
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In the months since Shuttleworth entered the general manager’s office at Cloudbreak these efforts have continued with January 2014 seeing Fortescue reach the $1.5 billion milestone, a feat it achieved by awarding a further 145 subcontracts to Aboriginal businesses. “Fortescue recognises the importance and great benefits gained from employing Aboriginal people and subcontracting work out to their businesses,” Shuttleworth enthuses, “ Fortescue has always believed in
the benefits of having a diversified workforce, one made of up of men and women who can bring different backgrounds, experience and ideas to the table.” At the end of January 2014, 525 employees of Fortescue were Aboriginal, 13 percent of its total workforce, while a further 450 were employed by contractors. More than 250 of Fortescue’s Aboriginal employees living in the Pilbara region also receive housing assistance. Since 2006, Fortescue has had in place a
“Fortescue recognises the importance and great benefits gained from employing Aboriginal people and subcontracting work out to their businesses”
VTEC Aboriginal graduation in Port Hedland
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Fortescue Metals Group - Cloudbreak
Cloudbreak OPF and product stockpiles
Vocational Training and Employment Centre (VTEC) in South Hedland and established a second centre in Roebourne in 2010. Together, they have assisted more than 1,000 people. Fortescue’s VTECs aim to break down employment barriers for Aboriginal people, identifying job opportunities within Fortescue and its contractors, and then developing courses in partnership with various training organisations to equip people with the right skills. All successful graduates from the program are guaranteed a job. An average of 150 – 200 Aboriginal people graduate from Fortescue’s VTECs every year, the vast majority of whom are local Traditional Owners.
Environmental awareness is another big theme within the group, understandably given the remote nature of its operations. As well as having reclamation and waste material programs in place, arguably the most important area of importance at Cloudbreak comes in the form of water management. “When mining a resource like Cloudbreak one of the things you need to do is pump out the groundwater within and around a pit before you can mine it,” Shuttleworth says. “Rather than this water being lost, we transfer the pumped out groundwater into a nearby aquifer downstream from the mine itself. Fortescue’s managed aquifer recharge
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Excavator loading truck at Solomon mine
Fortescue Metals Group - Cloudbreak system is called Papa Warringka, which is Nyiyaparli for ‘water in the ground’ has been operational since 2008 at Cloudbreak and since 2011 at the neighbouring Christmas Creek site. As well as conserving valuable brackish water it also helps to mitigate environmental impacts associated with surface discharge and groundwater level drawdown. Such has been its success that the innovation was awarded with the International Water Association’s prestigious Global Innovation Award for Water Management and Infrastructure. Turning back to Shuttleworth, I ask her what her goals are for the rest of 2014 and beyond. The response is instant and shows a clear strategy in place that will help shape the immediate future for the Cloudbreak mine. “In addition to ensuring we continually improve our safety performance and field leadership within our workforce, I also want this to be the year we increase throughput and reliability of the ore processing facility, reduce our operating costs through various initiatives and increase our own Aboriginal work force from 200 to 300 individuals,” she concludes. “From a longer term perspective it is about looking at optimising grades of material we send to ore and reduce what we send to waste. In doing so we will not only increase efficiencies across the business, but ultimately extend the life of mine as well.” For more information about Fortescue Metals Group - Cloudbreak visit: www.fmgl.com.au
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Guatemala’s gold standard The first gold mine of significant size in Guatemala, Goldcorp’s Marlin Mine continues to make new discoveries that are increasing its life expectancy
written by: will daynes research by: candice nice
60 | BE Monthly
Goldcorp - Marlin mine
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Panoramic view of the processing plant
Goldcorp - Marlin mine
H
aving been in production since late 2005, it took less than five years for Goldcorp’s Marlin Mine to produce its onemillionth ounce of gold. Located in the western highlands of Guatemala, 300 kilometres northwest of Guatemala City in the municipality of San Miguel Ixtahuacan, in an area boasting elevations ranging from 1,800 to 2,300 metres above sea level, Marlin has operated as both an open pit and underground mine, and continues to generate significant cash flow. Marlin Mine was originally discovered in 1998 by two Guatemalan geologists. Acquired in July 2002 by Canadian Company Glamis Gold, it was they who, in conducting an exploration study, determined that the mine held a projected 1.4 million ounces of gold. On 27 November 2003, the Ministry of Energy and Mines of Guatemala issued a licence for the development and operation of the Marlin project and following the successful completion of the construction phase in the third quarter of 2005, the mine began producing gold and silver before the turn of the year. In the time between 2003 and 2006 approximately $300 million was invested into the operator’s exploration activities and overall preparations for exploitation. It was then in 2009 that Goldcorp invested an additional $69 million into the operation, with a similar figure being ploughed into the business in 2010. Such was Goldcorp’s commitment to the long-term success of the project that it remains on course to have invested a further $150 million into Marlin Mine by the end of 2014.
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Grupo EMO’s leadership rests on the application of specialized, trendsetting techniques in technology, planning and developing in each and every one of our underground constructions, tunnels, open space operations and civil work for hydroelectric. The application of these techniques is performed by highly qualified local and international professionals, using the best human and technical equipment as an operations platform with specialized teams and heavy machinery.
Contact: 00502 + 2361-9444 00502 + 2498-4888 info@grupoemo.com www.grupoemo.com
Conquering Limits • Tunnel construction • Civil Work • Hydropower • Mining • Geotechnical • Soil Nailing • Grout Injections • Explosive Management
Key Work Points: • Profitability • Reliability • Industrial Security • Machinery
Goldcorp - Marlin mine
Local workers
Lying within a highly prospective land package of approximately 100,000 hectares that encompass the main deposit and various important vein structures and mineralised zones, the Marlin site hosts four major lithologic units, those being pyroclastic deposits, marlin andesites, tertiary volcaniclastic sequence and porphyric dykes. Marlin was the first gold mine of significant size in Guatemala and because of this Goldcorp made it a matter of great important to build lasting partnerships with communities surrounding the mine site. To
GRUPO EMO Since 2004 GRUPO EMO, S.A. has been an strategic supplier for underground mining operations to GoldCorp. Recognized in the Marlin Mine site as prime contractor for underground projects and forming part of the mine development and ore recovering team, GRUPO EMO has offered a wide range of activities for underground applications including mine development, service installation, bolting and ventilation, also different type of underground support systems including cement and chemical grouting, production mining with long hole equipment and hauling, shotcrete applications and other underground civil works. GRUPO EMO´s focus on professional capabilities in safety and reliable operation and the continuous formation process of our staff, adds to our company´s inventory a steadily enlarged knowledge as well as personal attitude, loyalty and high quality standards, as the most important values we are transferring to our client.
GRUPO EMO has been the pioneer introducing professional underground construction in tunneling and mining in Central America obtaining a sound reputation for its professional engineering capabilities, development of human resources and total commitment to safe and secure working environment. GoldCorp and its local representative Montana Exploradora have recognize this kind of support and continues to contract additional tunnel construction with a full program of wire mesh and split set installation. We are also looking forward to serve as hauling contractor for the open pit re-naturalization program. We feel fortunate and proud to form part of the GoldCorp/ Montana family for the last eight years and we look forward to continue our successful cooperation in the future. E. info@grupoemo.com www.grupoemo.com
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“It took less than five years for Goldcorp’s Marlin Mine to produce its one-millionth ounce of gold” this day the company continues to have a positive impact on the lives of families in the area through the creation of increased health, economic, educational and social opportunities. Furthermore, of the mine’s
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1,905 workers, approximately 98 percent of these are Guatemalan residents. These employees operate each day knowing they are protected by Marlin’s stringent health, safety and environment rules and
Goldcorp - Marlin mine
Nursery environment
standards. Indeed, the safety culture one will find present at the mine has benefited hugely from countless successful safety initiatives that have been implemented throughout the years, including daily and weekly safety briefings, monthly inspections and ongoing training programmes. The mine also operates in full compliance with the environmental standards and regulations of Guatemala and to the mining industry guidelines as set out by the World Bank. Furthermore, Marlin adheres to the internal Goldcorp standards in order to
ensure that the highest level of environmental stewardship is achieved. Marlin’s Environmental Management System (EMS) is designed to promote continuous improvement in the environmental management of the operation. The EMS concentrates on four phases, those being policy and planning, implementation, evaluation, and review and Improvement. Of equal significance is the fact that Marlin holds the distinction of being the first mine in Central America to become fully certified under the International Cyanide
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Goldcorp - Marlin mine Management Code, which is recognised as the international benchmark for transporting, storing and using cyanide. However, long before any Goldcorp mine commences with production the company will have already put plans in place for its eventual closure and the subsequent reclamation of the land. The Marlin Closure Plan for the open pit and waste rock storage facility was approved by the Guatemalan Ministry of Environment and Natural Resources (MARN) in October 2012. Goldcorp’s wholly owned subsidiary, Montana Exploradora de Guatemala,
A local farmer
Everlife EVERLIFE is a Guatemalan firm with 10 years of experience, dedicated to provide consultancy and assessment, with the highest professionalism and quality, in environmental, social and business management issues. We are conformed by a multidisciplinary team of professionals with extensive experience in extractive industries, renewable energy and transmission and distribution of electricity, among others. Our reputation has given us the opportunity to serve some of the most important and largest companies and projects in Guatemala. We are proud to serve Goldcorp and to be able to contribute, through our services, to the sustainable development of mining activities in the country. One of our most important projects is the Environmental Impact Assessment study (EIA study) that was prepared for the Technical Closure of the Marlin Mine Open Pit, which was the first
environmental instrument of its kind analyzed and approved by national authorities. We have also worked on EIA studies for mineral exploration licenses and permits. Guatemala is a country rich in cultural diversity, conformed by 24 ethnicities and the same number of languages. This is a very important part of our expertise, due to the fact that in many projects there is a need to carry out the Public Participation Process with different ethnical groups at once. At EVERLIFE we know our business and we understand how vital this is for your investment and that´s why we offer integral solutions, supported with the use of top of the line technology and equipment, approved and recognized by international environmental agencies. E. flopez@everlifegt.com www.everlifegt.com
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T H E E X T R AC T I O N O F G O L D A N D S I LV E R With Guatemala having many valuable natural resources, Productos del Aire can highlight the extraction of gold and silver, among others.
M.Sc. Juan Ram贸n Pallais | Special Applications Advisory | Guatemala Air Products, Inc. Phone 2421-0400 Ext. 227 | jrpallais@productosdelaire.com www.productosdelaire.com
Goldcorp - Marlin mine
Mine entrance
submitted the corresponding compliance bond to the MARN in the amount $28 million on October 16, 2012. The closure compliance bond amount established with MARN will be adjusted according to actual conditions and as subsequent sections of the closure plan are updated, reviewed and approved by the MARN. Subsequent sections of the closure plane will be updated as required by the MARN. The geochemical, hydrological and geotechnical assessments required for the Tailings Impoundment Closure Plan was conducted during 2013, and a final plan is expected to be submitted to the authorities before the end of 2014.
Productos Del Aire De Guatemala The extraction of gold with cyanide seeks to convert insoluble gold in complex metal anions soluble in water. After being removed and crushed, the mineral is separated from the sludge by Elsner’s equation adding cyanide and oxygen. The “Elsner” chemical equation is: 4 4 Au + 8 NaCN + O2 + 2 H2O Na[Au(CN) 2] + 4 NaOH Cyanide is present as potassium, calcium or sodium cyanide and is essential to avoid gasification, because cyanide is highly toxic: HCN(g) NC-(aq) + H+(aq) Therefore, it is necessary to maintain an alkaline pH throughout the process. Calcium carbonates are added to keep alkaline water. After the gold extraction, the “water process”
has to be neutralized before download to the environment. Productos del Aire is making this neutralization applying gaseous carbon dioxide disolved in the “water process”: CO2 (aq) CO2(g) Which then reacts with the carbonates: Ca2+ (aq) + 2 CaCO3 + CO2 (aq) + H2O HCO3- (aq) And with water to create carbonic acid: H2CO3 (aq) CO2 (aq) + H2O Therefore, a simple application of CO2 gas bubbling in “water process” makes the water pH initially alkalines by the carbonates that reach normal levels without complicated mixtures of chemicals in the water. www.productosdelaire.com
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Industrial, Mining & Food Industry Since its formation in 1985, Grupo DISOSA has been dedicated towards the marketing of chemical products for the industrial, mining and food industry sectors, delivering the highest standards of products and quality of service. Grupo DISOSA is headquartered in the city of Guadalajara, Jalisco, Mexico and has branches in the Mexican states: of Baja California Norte, Chihuahua, Coahuila, Sonora, Zacatecas, Mexico City and in Guatemala in Guatemala City.
Contact Numbers: 52 (33) 3145-�0555 | 52 (33) 3881-�1270 Sales Management: alejandro.cota@disosa.com Mining Management Area: luis.escobedo@disosa.com
www.disosa.com
Goldcorp - Marlin mine
The processing plant
Another part of Marlin’s internal structure is its Sustainable Development department. It is this area of the business which provides resources and funds for community development initiatives in communities near the operation and along the access road to the mine through its Organizational Development Unit. Each project is designed, selected and implemented in conjunction with community
leaders and members. The Sierra Madre Foundation (SMF) is a Guatemalan foundation, funded by Goldcorp, which was formed in an effort to contribute to the development of neighbouring communities. Its mission is to assist with the planning and implementation of sustainable, community-based development and capacity building programs in San Miguel Ixtahuacán and Sipacapa.
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Tilapia fish project
Goldcorp - Marlin mine
2,000 tonnes Of ore produced by Marlin’s underground operation every day In early 2012, open pit operations at Marlin ceased when the mining of the final, highergrade portion of the pit was completed. Today the mine is an underground operation only. Underground operations at the site employ mechanised cut-and-fill and long hole stoping mining, with underground loading equipment feeding haul trucks that transport the ore to the surface via ramps. Production from underground operations is roughly 2,000 tonnes of ore per day. This ore is processed in a conventional crushing, grinding and milling circuit. Marlin also has a tailing storage facility, a waste rock storage area and various ancillary installations. Despite open pit operations coming to an end, successful exploration activities in the area surrounding the pit indicate the potential for extending the life of the mine. The discovery of a bonanza grade vein, the Delmy vein, which is located near the Marlin deposit and within the existing mining area, will contribute significantly to the mine’s future production. For more information about Goldcorp - Marlin Mine visit: www.goldcorpguatemala.com
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Alamos Gold
A track record to be proud of John A McCluskey, President, Chief Executive Officer and Director of Alamos Gold, discusses the secrets behind the company’s success and how its commitment to responsible mining has improved the lives of many
written by: Will Daynes research by: Peter Rowlston
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Pouring gold at the Mulatos Refinery
Alamos Gold
W
hen I look over the last two years, while I do see a highly problematic gold market, particularly for producers, I also see evidence to suggest that the long-term outlook is pretty good. Primarily this is because many of the underpinning reasons for the rise in gold price in the first place continue to exist, reasons like high degrees of sovereign debt.� Those are the words of John A McCluskey, President, Chief Executive Officer and Director of Alamos Gold. Having begun his career in 1983 with Glamis Gold, McCluskey would go on to hold senior positions in a number of public resource companies, founding Grayd Resource Corporation in 1996, and ultimately establishing Alamos Minerals. It was the amalgamation of Alamos Minerals and National Gold on 21 February, 2003, that gave rise to Alamos Gold itself. A Canadian-based mid-tier gold producer, Alamos’ core focus is to become a leader in the field of growing low-cost gold production, in financial performance and in delivering shareholder value. The company owns and operates the Mulatos Mine, located within the Salamandra Concessions in the Sierra Madre Occidental mountain range in the north western state of Sonora, Mexico. Acquired by the company in February 2003 for $10 million, Mulatos is a conventional open-pit, heap leach operation and is recognised as being one of the lowest cost gold mines on the planet. In addition to the Mulatos Mine, Alamos also boasts a leading growth profile with exploration and development activities not only in Mexico,
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Alamos Gold
Overview of Mulatos crushing circuit
but also in Turkey and the United States. Turning back to the topic of the gold industry as it stands today, McCluskey’s belief is that the current gold market is simply not sustainable. “If you look at average all-in sustaining costs of the industry today, which don’t typically take into account taxation, with gold trading around $1,250 an ounce there is simply not enough of a margin present to sustain the industry. The result
of this situation will ultimately be either a rise in the price of gold or a significant decline in gold production.” So given this outlook, how is it that Alamos is able to remain prosperous? “Where we have looked to make acquisitions we have always done so with the view of all-in sustaining costs being below $1,000 per ounce,” McCluskey continues. “This provides us with a much more comfortable margin than that
“The work of Alamos to provide a better quality of life for the communities living around its operations continues unabated” BE Monthly | 81
Mulatos Crushing Circuit
which the typical industry producer enjoys and means we can effectively withstand a drop in the price of gold much better than such producers. It also means that our suite of projects exists as one of the lowest cost development pipelines in the industry and that is a very unique, strong position to be in, in anyone’s book.” The Mulatos Mine is some way removed from being a development asset, but its on-going success marks it out as being the flagship of Alamos Gold. “When we started operations at Mulatos in 2005, we had roughly nine years of production ahead of us, an
estimate calculated off the back of running at 10,000 tonnes of ore per day,” McCluskey highlights. “At that rate we should have run out of ore in 2013, however successful exploration and expansion programmes allowed us to ramp up production to 13,000, 15,000 and now 17,700 tonnes of ore per day, and now we anticipate having a further eight or nine years of mine life ahead of us.” A number of important factors have contributed towards the extension of Mulatos’ mine life. These include the fact that the ore body was not fully defined when Alamos began mining it and the fact that when the
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Alamos Gold
17,700 tonnes Of ore being produced daily at Mulatos
company conducted its first economic study on the mine the gold price stood at around $375 an ounce. As gold prices increased the company was then able to use lower cut off grade assumptions allowing for much more of the material it was defining to become part of its reserves. Furthermore, the Mulatos pit contains a variety of ore types, some of which wouldn’t have qualified as reserves at lower gold prices, but are now profitable. The Mulatos mine and its surrounding area is today very much a different place to that which Alamos first entered over a decade ago. Miles away from any built up modern location, Mulatos is a remote community that prior to 2003 was essentially cut off from the rest of Mexico and was a town lacking in transportation networks and other infrastructure. “Infrastructure has been one of the biggest things we have invested in since beginning operations here,” McCluskey enthuses. “A large sum of money went into the construction of 70 kilometres of road, from the pre-existing paved highway through several mountain valleys all the way to the mine itself.” Of course being a responsible mining company takes more than single gestures and to this end the work of Alamos to provide a better quality of life for the
John A McCluskey
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Mulatos Leach Pad Reclamation
Alamos Gold communities living around its operations continues unabated. In addition to providing support for a number of local elementary and high schools the company continues to pursue an aggressive scholarship programme that has to date sent dozens of individuals into higher education. The company is also responsible for building a medical support network from the ground up in the area. “Before we arrived in the area there was virtually no medical support for miles around,” McCluskey states. “In the event of an emergency people would face up to a six and a half hour drive to the nearest hospital. What we have done is establish a medical clinic at the mine, which has been delivering comprehensive medical care now for more than a decade. In addition we have provided funding for medicine for the local population, rebuilt and maintained 8 kilometres of piping to supply clean drinking water to the town of Mulatos and built a water treatment plant, significantly improving the water quality of the nearest natural water source to the community.” Alamos’ track record in delivering value not only for its shareholders but also local communities speaks for itself, and McCluskey believes that it is one that is widely replicated throughout an industry that should do more
Mulatos Heap Leach Pad
to defend itself against critics. “The basis of virtually every economy comes down to natural resources and their development, therefore the importance of mining cannot be overstated. While there have obviously been examples of environmental degradation in the past, I would say that the industry, especially in the 30 years that I have been a part of it, has had an exemplary record. As a company, and an industry, we want to operate in ways that are environmentally sustainable. I think this industry needs to make this point much clearer.” For more information about Alamos Gold visit: www.alamosgold.com
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Aggreko
ower in place The world leader in temporary power solutions, Aggreko helps governments in meeting the needs of entire populations and keeps industries growing through all contingencies
written by: John O’Hanlon research by: Gareth Hardy
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Banro Resources, DRC 8 MW power project
Aggreko
A
ggreko was founded in the Netherlands in the early 1960s to provide temporary power generation to local companies. In 1973 it moved to the UK, establishing its headquarters at Dumbarton in Scotland, the first step in an expansion programme that has brought it to where it is today, present in 47 countries and employing around 6,000 people. The London Stock Exchange-listed company, a member of the FTSE-100 index, provides power and temperature control solutions to customers who need them either very quickly, or for a short or indeterminate length of time. Examples would be the supply of power to a mining or industrial site which needs to service its permanent power supply, supplying a whole city in times of power shortage, or providing a major sporting event with power and cooling systems. The key being that power can be delivered anywhere, anytime. Now we should make it clear from the outset that we are not just talking about providing gensets for pumps, traffic management, individual manufacturing units or the many other uses in general construction. That is an important business, and is comprehensively covered by local service centres around the globe. Larger projects calling for much more complex solutions, are also delivered globally through Aggreko’s Power Projects business. When it comes to large scale power needed in remote parts of the world, whether the need is short or long term, Aggreko is the company to go to. It supplies multi-megawatt temporary power solutions to companies in the electric utilities sectors, oil & gas (O&G) and mining
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amongst other key sectors. With more than 117 locations across North, Central, South America and The Caribbean, and 194 globally, it boasts the world’s largest generator rental fleet. “Aggreko’s power solutions are rapid, flexible, and highly reliable,” asserts Asterios Satrazemis, President of the Americas Region, where Aggreko lists among its customers every major mining and exploration company as well as most governments and national power grids. In this region the Power Projects division handles large scale projects, defined as anything from 10 MW to over 200 MW. Its client base is primarily utilities, mining and O&G companies. In many South American countries, he explains, hydro power accounts for up to 60 percent of the matrix. “During periods of drought or an El Niño event these sources drop off and we often get asked to provide an interim power solution for anywhere from a few months to several years on a large scale basis to meet the shortfall.” Until hydro-generated levels recover, the national power company needs to put in an interim solution to keep the lights on, and the only way to do that is to call in a specialist who can deploy equipment quickly. “We can effectively deliver a complete power solution within weeks,” says
Satrazemis. “The Power Projects business is conceived around a modular design, where all the equipment is packed in 20-foot ISO containers. It is a plug and play approach so we can deliver assets very quickly with minimal civil works required. We can connect into virtually any voltage they need on the grid, and supplement power to major cities as well as in hard to reach remote areas.” Aggreko has implemented single projects in
“The Power Projects business is conceived around a modular design ... a plug and play approach so we can deliver assets very quickly” 90 | BE Monthly
Aggreko
Aggreko power plant, Ressano Garcia, Mozambique
Asterios Satrazemis
Latin America in excess of works, installation of the fuel 100 MW, he adds. system including the storage These are not always in tanks, and maintenance the easiest locations. In Peru and operation of the power Aggreko was recently able to plant. In this industry, for The number of locations supply a total of 30 MW of every thousand metres of Aggreko operates from power 3,423 metres above sea altitude, a generator loses in the Americas level to two separate electricity on average ten percent of its generating companies. This power. However thanks to equipment, comprising both the advanced technology of generator units and transformers, provides Aggreko’s generators the total loss above sea partial cover for the power which the level will not be 35 percent, but just ten percent Machupicchu Hydroelectric Power Station over the entire 3,423 metres. will be unable to supply during construction As we frequently note in this magazine, of the Santa Teresa Hydroelectric Power many large scale mining projects are in the Station. This is a turnkey solution for these high Andes. Others are in remote parts of the clients, adding to the supply of equipment the Amazon Basin where the grid will perhaps preparation of ground and civil engineering never reach. In these places localised power
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generation is the only solution either for power until that line arrives and not affect communities or for mines, where reliable, the schedule of production at a multi-billion cost-effective power has to be secured to dollar mining complex. It is an excellent make them viable. “We do a lot of work in long or short term solution to maintaining Colombia, for their onshore O&G projects. schedules. Our modular system allows us to Aggreko can come in and provide turnkey increase or decrease capacity very quickly.” power, including all the manpower they need If any single factor has played into Aggreko’s as well as the equipment and its maintenance. success it is the ease with which its equipment Many mining projects in can be moved to the site. A more accessible regions, 20-foot container can be where power lines can be shifted by train, truck, boat built, get delayed through or aeroplane. Each unit can civil unrest or simply because be kept below 40 tons, which the local power utility does means it is unlikely to be not have the funds,” says affected by weight restrictions People employed Asterios Satrazemis. “We can or snaking roads. However, by Aggreko go ahead and provide interim as some of the examples
6,000
CP Mining, Australia
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Aggreko
“We can effectively deliver a complete power solution within weeks” given above show, a site does not have to be inaccessible to benefit from the flexible power generation available from Aggreko. “We are working on heavy fuel oil (HFO) solutions as well to get lower fuel cost for our clients.” HFO is the fuel of choice in many island countries says Asterios Satrazemis, and Aggreko’s modular HFO packages are making a big impact on the market. In other situations liquefied or compressed natural gas (LNG or CNG) stand out as
solutions that allow companies in the hydrocarbons industry to reduce their power generating costs and guarantee seamless operations. In Colombia Aggreko’s economical CNG-based solutions don’t demand high investment in energy supply services like equipment purchase. Aggreko’s affordable rental services include the installation, operation and maintenance so helping push forward production and boost the oil industry with less capital expenditure. For example a Colombian oil company turned to Aggreko to generate power in three of its exploration blocks in the country and improve its production and operating costs. The most widespread fuel source there is diesel, but Aggreko was able to provide this client with a gas solution resulting in considerable savings and an improved carbon footprint. In March of last year the company announced an ultra-efficient 1 MW engine that will provide its customers with 14 per cent more power at 12 per cent lower cost. The G3+ is the product of a three–year, £6 million development programme and it is the first time Aggreko has moved into developing its own engine technology. The G3+HFO variant of the new engine is also the first of its kind that can run on HFO, producing power at around half the cost of traditional diesel alternatives.
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Aggreko Unlike many businesses, the recession has not been hard on Aggreko which recorded revenues of approximately $2.5 billion in 2012 and an operating profit of $612 million. Delays have dogged power schemes and projects that depend on them have depended increasingly on temporary power. “In those cases, where power has to be delivered reliably we are often the first to meet that gap.” It’s a trend seen all over the world, he observes, and a strong driver for the Power Projects business which is growing rapidly in every part of the world, from Africa to the Americas region that he leads. The company has offices serving all of Latin America, the United States and Canada: from these any and every problem relating to temporary power can be solved quickly and reliably. Satrazemis, who has been in his present post since 1 January 2013 was formerly Aggreko’s Managing Director responsible for the Australia-Pacific Region. In his current role as President of The Americas he is enthusiastic about the flexibility of the service available across the region. “On any given day we will be running base load power for a number of mines, large or small, around the country, where if the power goes down they could potentially start losing millions of dollars in revenue. While the emergency and high profile projects get the headlines, providing businesses with power security on a day to day basis is just as important.” Ressano Garcia, Mozambique
For more information about Aggreko visit: www.aggreko.com
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EXSA Peru
Creating
exact solutions In expanding its value proposition, EXSA is positioning itself to remain as influential to Peru’s mining sector as it has been for the last six decades
written by: Will Daynes research by: Abi Abagun
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EXSA Peru
F
ounded in 1954, EXSA Peru is reuse of waste oil in blasting, elimination today part of Breca, the leading of red fumes from blasting operations and economic group in Peru, and is so forth. To achieve this we have invested the country’s leading provider of heavily in technological innovations, while rock fragmentation solutions to the at the same time deepening the expertise mining and construction industries, with more and development of our staff through than a 50 percent market share. The company’s comprehensive training. Furthermore, we are market leadership is reflected in both its introducing automation into our production recent sales growth and its earnings before processes in order to improve our existing interest, taxes, depreciation and amortization safety critical processes.” (EBITDA). Over the last five years EXSA’s sales In order to provide its customers with have increased by an average of 23 percent per the best solutions EXSA took the decision to year, while in the same period its EBITDA has segment its market according to the type of seen more significant growth of approximately operation carried out by said customers. These 25 percent annually. segments include open pit It has become such through mining, underground mining, is pioneering development quarries and construction and commercialisation of a companies. Among its open wide assortment of products pit customers are the likes i nc ludi ng dy na m ites, of Antamina, Yanacocha, The year EXSA cartridged emulsions, ANFO, Goldfields, HudBay and was founded bulk emulsions , ammonium Southern Copper, while when it nitrate and a full range of comes to underground mining initiators. The sales of the aforementioned they include Buenaventura, Volcan, Hochschild products are in turn boosted through the Mining, Minsur, Horizonte and Marsa, and in providing of technical assistance and training the construction market customers include services centred on the proper selection, safe Graña y Montero, Odebrecht and others. With no real substitute available on handling and use of EXSA’s products. “Utilising our 60 years of experience,” the market to match the volume of rock states CEO, Karl Maslo, “we have recently fragmentation it creates, it is understandable been modifying our focus and market why wide-scale mining today remains virtually orientation, expanding our value proposition impossible without the use of explosives. Over to our customers from products and the course of its six decades of existence, EXSA operational services to tailor made solutions, has proudly retained a reputation for not only which we have called “exact solutions”. Such the quality of its products, but also for its solutions include the construction of powder attitude towards safety. magazines and nitrate storage facilities, “At EXSA we recognise the high level of risk as well as conducting secondary drilling, that is linked to our activities and therefore
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EXSA Peru we have made it our mission to ensure that the concept of safety runs through our DNA,” Maslo continues. “Our level of safety awareness is such that each year our annual celebration schedule includes the EXSA Safety Day. This day represents the only date, other than official holidays of course, that the company puts work on hold in order to commit the day towards allowing all of our employees and collaborators to be trained in and strengthen their already comprehensive knowledge of safety.” The contribution of said people to the
success of the company of course has to be recognised, the level of which stems from their enjoyment and satisfaction of being a part of EXSA. “The commitment of our people is reflected in the high score we obtained in a recent Great Place to Work study, which makes EXSA the highest rated explosive company for employee satisfaction in Peru,” Maslo says. “On the subject of awards it was last year that we also received Class A certification from the consultant Oliver Wight for Process Planning and Control. With this recognition EXSA
AEL MINING SERVICES AEL Mining Services, a member of the JSElisted AECI Group in South Africa, is a leading developer, producer and supplier of 3rd generation electronic detonators, initiating systems, blasting services and solutions for mining, quarrying and construction markets in Latin America, Africa, Europe and the Far East. AEL operates closely with selected partners across Latin America and is proud to be associated with Exsa, AEL’s preferred partner and distributor in Peru of electronic detonators including DigiShot™Plus and SmartShot™ range, as well as Underground Bulk Systems (UBS) for more than 12 years. Consisting of a capable team of leading explosives engineers and scientists, AEL has over a century of expertise and knowledge in developing ground-breaking and innovative
blasting solutions that contribute to the creation of infrastructures in countries throughout the world. AEL supports Latin America’s growing mining market and will continue its investment on the continent through its expertise, resources and cutting edge technology. AEL’s proven capability of deploying infrastructure to global standards in a fast turnaround time, coupled with the expertise to rapidly develop customised premier products to suit specific applications and mandatory quality standards, gives the group a competitive edge in expanding into new markets. AEL unearths wealth by meticulously providing the mining industry with carefully controlled energy. www.aelminingservices.com
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inspired Your weekly digest of business news and views
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became the first explosives business in Latin America, and very few in the world, to have obtained this certification.” For the last 60 years EXSA has undoubtedly contributed a huge amount to the sustainable development of the mining industry in Peru. In looking back on its impact on the sector it was decided that its 60th birthday would be the ideal time to redesign its corporate image, one which reflects a new vision for the company and a new approach to how it delivers its service. This new image was first unveiled at the EXTEMIN 2013 mining exhibition. “We want our customers today to not simply see us as providers of products or operational services that are limited to blasting,” Maslo
EXSA Peru
“We believe in long term relationships and that is why we care about ensuring the continuity of our customers’ businesses” highlights, “rather we want them to recognise EXSA as providers of exact solutions that are integral to their entire value chain. We view the business of our clients holistically and as such we want to focus on capturing operational efficiencies in their production chain. We believe in long term relationships and that is why we care about ensuring the continuity of our
customers’ businesses. By knowing the business of our customers better than themselves, we will be able to provide them with tailor made solutions beyond their expectations.” “It is EXSA’s belief that sustainable development and steady growth should be constant goals and as such we seek at all times to uphold best practices when it comes
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“As part of our development over the past 60 years we have grown into a multi-national company” to achieving continuous improvement and delivering total quality and excellence. In recent years we have invested heavily in order not only to respect the environmental laws, but also to exceed the mere fulfilment of our obligations, thus becoming a leader in our industry,” Maslo enthuses. “Moreover, since 2004 we have held ISO 14001 certification and OSHA 18000 certification since 2008, and in 2003 we obtained the ISO 9001 certification. These certifications require us to have procedures and evaluation methods in place to identify and eliminate any potential environmental or safety implications our operations may have. Our degree of social responsibility also saw us become the first blasting company in Peru to receive the distinction of being recognized for our role in this field by being named an Empresa Socialmente Responsible (socially responsible) business.” EXSA’s goal for the short-to-medium term is to continue to grow and consolidate its position as the leading regional player in the mining industry when it comes to rock fragmentation. One way that the company is expressing its aims for the future is through the design and use of a dynamic new logo, one that represents the company’s new value proposition, its continuing high levels of customer focus, its constant process of
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innovation and the way it is always striving to meet its clients’ changing needs by providing them with exact solutions. The colour blue represents the level of trust, confidence and commitment that exists between EXSA and its clients, while the yellow symbolises the human side of the business and the close relationships EXSA forges with its customers. “As part of our development over the past 60 years we have grown into a multi-national company which today has subsidiaries in Brazil, Colombia and Panama, and exports products from Peru to the majority of the countries in South, Central and North America,” Maslo concludes. “Our growth strategy for the future revolves around three strategic pillars, innovation, customer focus and solutions, all of which are furthered as a result of our proven operational excellence, quality, efficiency and safety. Meanwhile, we have developed a very aggressive growth strategy across the Americas, one that has proven to be very successful, and we move into our seventh decade of operations we will continue to look for business opportunities both locally and internationally.” For more information about EXSA Peru visit: www.exsa.net
EXSA Peru
Bette Plant
Reliable Contro plant automatio work, par
r
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Reliable Controls
er Controls and t Commissioning
ols Corporation is a dependable partner for on, assessment, auditing and commissioning rticularly in mining and O&G projects
written by: John O’Hanlon research by: Peter Rowlston
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Gold and copper recovery in the Dominican Republic
Reliable Controls
E
d Macha always felt there was a better way. Fascinated since childhood by the possibilities of automation, he learned the industry inside and out, knowing one day he would be the one to transform it. Beginning at the age of 15, he spent his summers sweeping electrical room floors and troubleshooting pull cords on conveyor belts at a mine site in Mexico. After graduating in electrical engineering from New Mexico State University, Macha worked as a control engineer, taking on numerous jobs including a large commissioning project working with Bowen Engineering and Fluor Daniels in the multi-million Alumbrera project in Argentina. Five years later, there was a delay in projects and Ed realized that was the time to jump on the idea he never stopped dreaming about. The opportunity to start his own business. With the support of his father, Al Macha, and younger brother Alex Macha, who are now respectively RCC’s Vice Presidents in Operations and Technology, Ed Macha developed a unique method for systemizing power, instrumentation and control systems in a way that could make projects more efficient during commissioning. With the implementation of this new way and the support of a few key people, Reliable Controls Corporation (RCC) was born in April of 1999. The primary focus of RCC was the mining industry. The company’s first big break came within months of being established, with the challenge to automate a tripper conveyor control system at a mine that used lasers for control and optimisation. This was followed by another large project performing
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a complete Instrumentation and Controls audit and assessment in 2001 at Minera Escondida’s concentrator. The next few years brought nothing but opportunity and growth for the flourishing company. In 2002, RCC performed the commissioning and start-up of the Power Distribution Systems and Controls Systems for BHP Billiton at Minera Escondida’s Phase IV megaproject. That success attracted the attention of other major clients and the company grew fast. In 2004, RCC had reached eight employees, at which point it expanded its operation in Salt Lake City: since then it has experienced steady growth and today has 53 employees. If there’s a key to this business, it lies in the commitment of its staff. With an average age of 38 the team includes seasoned engineers with the ability to manage large teams, a middle generation in their thirties, highly tech-savvy and bright, and the youngest generation in their 20s, many of whom joined RCC straight from university, eager to learn and willing to work hard to get where they need to be. “It’s a very constructive combination!” says Macha. “We have great leaders in all of those age groups.” The company’s portfolio developed quickly, with satisfied clients in both the mining and the oil and gas (O&G) sectors. RCC is
a perfect fit with businesses in these two sectors – companies that are in the process of building new facilities and clients that are reassessing their existing facilities. This was always the basis for building the firm’s reputation, he says. “We build trust, respect and unity. We become family with our clients, making it a win-win situation. To do this, we train and develop as much as we can. We value our people’s experience and give them
“We build trust, respect and unity. We become family with our clients, making it a win-win situation. To do this, we train and develop as much as we can” 110 | BE Monthly
Reliable Controls
Copper and gold underground mining in Indonesia
training, so we are offering design, installation and our clients continuing commissioning in each expertise. The world faces of them. “We focus on a crisis of resources right understanding our clients’ now and the type of work needs,” he emphasises. RCC’s foundation year we do on power systems, “For example many of instrumentation, automation them need to modernise or and commissioning is huge upgrade their facilities after in fixing that crisis. RCC is developing a long period of operation – they might and training the next generation to step not even have the original documentation, up and resolve the crisis.” The company’s drawings and commissioning information. record of growth by recommendation and So the first thing we will do is to make an the long term relationships it has built audit of the whole installation. We trace with mining and O&G majors testifies every wire, and create plant drawings to the success of this approach. and documentation that may be missing RCC’s engineers are experienced in or out of date: in short, we tell the client both understanding the synergies as well exactly where their plant is at!” RCC’s qualified engineers then use as the unique characteristics of plant
1999
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a proprietary system to pinpoint potential opportunities and offer detailed recommendations for creating more favourable conditions with little to no downtime. “The system breaks the job down into work packages: our engineers go through the entire plant and give the owner a snapshot of every last detail of his instrumentation, automation and electrical installation.” Having established the baseline, RCC goes on to make its recommendation of what needs to be done to upgrade and improve safety or compliance. A great example of this service was shown in 2009, when Barrick Gold contracted RCC to provide electrical and instrumentation assessment and ‘as-built’
Copper thickener in the Atacama Desert, Chile
112 | BE Monthly
engineering services at the Cortez Pipeline Mill located 60 miles south west of Elko, Nevada. RCC performed a detailed electrical and instrumentation assessment including verification and wire tracing, as well as providing ‘as-built’ documentation. ‘As-built’ means assessing the variations from original engineering plans to what was actually built – and any subsequent modifications. Without this, it is impossible to plan any future development. At Cortez Pipeline Mill, wiring, drawings, motor schematics, instrumentation, controls and electrical systems were all audited and the client presented with a turnover package and recommendations related to safety and reliability, critical
Reliable Controls
“We trace every wire, and create plant drawings and documentation that may be missing or out of date: in short, we tell the client exactly where their plant is at!” instrumentation and logic, and electrical and instrumentation component conditions with respect to both safety and functionality. A job well done, which developed into a continued relationship with Barrick and work in major projects world-wide, including being a key partner in the Pueblo Viejo mega project (2011-2013) in the
Dominican Republic where RCC provided pre-commissioning and commissioning services for both Fluor and Barrick. Another core service that has really made its mark on the mining industry is testing and commissioning. This can be applied to a simple standalone plant or complex site-wide systems. “We place a lot of emphasis on that, and have developed a systematic approach to commissioning that is as foolproof as we can make it,” says Ed Macha. He is referring to the in-house software application that covers the whole process of verifying and validating the plant and getting it up and running. The company has been busy in its home state (Utah), Arizona, and Nevada, last year completing commissioning services for Freeport McMoRan, Barrick, and Rio Tinto. Currently, the company is in the commissioning process for the $160 million gyratory crushing system and 21,500 gallons per minute Merrill-Crowe facility at Allied Nevada’s Hycroft gold mine. RCC is providing services to complete all electrical and instrumentation terminations and performing component testing and plant commissioning. The systematised approach by project manager, Jeff VanDyke, and team of 20 has made a substantial difference in the project.
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Another aspect Reliable Controls prides itself in is that of forging innovative technology. RCC has just launched a new application called PlantSight (www.plantsight.com) based on its unique system which is now available to purchase by anyone. This tool is cloud-based and utilises iPads and laptops to perform all inspections, punchlists and test package completion. The key is to
have immediate information available for tracking, making decisions, early discovery and accountability based systems required for the commissioning of world-class facilities. “This tool is great for tracking real time progress, and generating online reporting,” Ed Macha enthuses. “The system aims to improve efficiencies, reducing re-do work and improving the reporting process, all of
“PlantSight is a great tool for tracking real time progress, and generating online reporting”
RCC management - Fred Botha, Alex Macha, Al Macha, Nikki Butler, Ed Macha, Brad Liljenquist
114 | BE Monthly
Reliable Controls
RCC engineer, Michael Toone, utilizing PlantSight while commissioning
which help to meet project deadlines. I truly believe RCC understands the importance of technology and is one of few businesses in the industry that are capitalising on it!” With offices already established in the USA, Chile and the Dominican Republic RCC is now setting up shop in Peru and Indonesia. “We will go wherever our clients need us,” says Macha – and he makes it clear that though he is currently focused on South East Asia and South America, Australia and Canada are definitely of interest, and that the logical progression going forward will be a big push into the energy sector. The latest international venture in Indonesia has proved RCC’s ability to work with a 14-16
hour time difference between the site and the engineering companies/suppliers in North America, as well as the logistics challenge. Though his clients agree that RCC holds the key to the best available plant assessment and commissioning, Ed Macha still thinks there is a better way. “We do our work with so much pride. Everything we do is beautiful. It is a work of art. We all believe in doing a job with passion! We cannot stand mediocrity - there is always the challenge to do it better!” For more information about Reliable Controls visit: www.rcontrols.com
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Essar Steel Minnesota LLC (ESML)
Pellet perfection Essar Steel Minnesota LLC (ESML) is edging closer to the completion of a state-of-the-art open pit mining, concentrating and pelletizing plant within the best known region for iron ore in the United States
written by: Will Daynes research by: Peter Rowlston
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Essar Steel Minnesota LLC (ESML)
D
iscovered in 1866, the Mesabi Iron Range is the chief deposit of iron ore in the United States. Located in northeast Minnesota, within a jurisdiction which has long boasted a track record of successful mineral developments and operations, it is a vast deposit of the mineral that was extensively mined throughout the early part of the 20th Century through to the late 1960s, when natural ore reserves were depleted. It was at this time that Butler Taconite, a company jointed owned by the Inland Steel Company, Wheeling-Pittsburgh Steel Corporation and Hanna Mining Company, developed a taconite mining operation at the site, which allowed it to commence operations in 1967, producing high-quality pellets until May 1985. The closure of Butler Taconite resulted in the property being reclaimed and the plant dismantled. In September 1996, Minnesota Iron & Steel (MIS) was registered as a corporation with the goal of reopening the mine site and constructing a whole new facility, not only as an iron pellet producer but also as a direct reduced iron and electric arc furnace steelmaking facility. It was in 2004, that the project was reactivated by Minnesota Steel Industries (MSI), a company formed by one of the major stakeholders of MIS. A feasibility study was prepared in 2007, and environmental permits were granted for a 4.1 million tonnes per annum pellet plant (MTPA), a 2.8 MTPA direct reduced iron facility and a 2.5 MTPA electric arc furnace. Subsequently, in October 2007,
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MILL INCHING DRIVES ROLLER SCREEN PELLE
Designed & Manufactured
Ingenuity in Hydraulics
Telephone: 1/-51
Abacus Hydraulics Ltd., pioneer of hydrostatic mill inching drives has since its foundation in 1969 designed, and manufactured over 1000 systems now operating in plants around the world. Abacus drives are custom built and can suit any specifications. The available torque range is unlimited and virtually fits any high torque low speed requirements for mining equipment. The drives are equipped with the exclusive TORFLEX速 gear type coupling which has been specifically designed and developed by Abacus Hydraulics Ltd.
TORFLEX速 is a registered trade mark of Abacus Hydraulics Ltd.
- HIGH TORQUE DRIVES ET CLASSIFYING SYSTEMS
d by Abacus Hydraulics Ltd.
• DESIGN • MANUFACTURE • SERVICE
14-620-3113 | Email: info@abacus-hydraulics.com | www.abacus-hydraulics.com
Abacus Hydraulics Ltd., is since 1989 also a leader in the design and manufacture of roller screen pellet classifying systems. Abacus roller screens are equipped with several unique features, are custom built to suit any specifications and are available in a variety of configurations which can meet any project requirements. The roller screens are made of high quality components for reliable and long life operation with special emphasis on easy serviceability and safety.
ABACUS HYDRAULICS LTD The mining industry with its wide range of drive requirements and changing process methods is always seeking more reliable, efficient and versatile drive systems. A Canadian company, Abacus Hydraulics Ltd. is since 1969 meeting this challenge every day. Abacus is custom designing and manufacturing high torque drives and special mining machinery for mines around the world. The Abacus high torque drives have proven their reliability in grinding mill inching drives, apron feeders, thickeners, conveyors and hoists to mention only a few. The drives are custom built and can suit any specifications. The available torque range is unlimited and virtually fits any high torque low speed requirements for mining equipment. The innovative approach of Abacus Hydraulics Ltd. allows the company to supply equipment with unique features which improve safety, reliability, operation and serviceability of the systems. All drives are available with the exclusive TORFLEXÂŽ gear type coupling designed and developed over 30 years ago by Abacus. The ease of engagement, high degree of misalignment tolerance and low cost make this
122 | BE Monthly
coupling ideal for many mining applications. Since 1989, Abacus Hydraulics Ltd. is also a leader in the design and manufacture of roller screen pellet classifying systems used for sizing and conveying of iron ore pellets in pelletizing plants worldwide. Abacus Hydraulics Ltd. has always been receptive to evaluate and develop new systems to fill the customer’s requirements. Abacus has also successfully designed and manufactured other type of systems such as lubrication systems for large hydrostatic bearings of grinding mills and brake systems for down hill conveyors and other applications. A highly competent and dedicated team of employees permit the successful handling of the projects and product support. The company has constantly and steadily grown over the years. During the summer of 2013, the company consolidated their offices and plants to a new facility in Pointe-Claire, Montreal, QC, Canada. This expansion now allows higher production capacity, reduced manufacturing costs and delivery times. E. info@abacus-hydraulics.com www.abacus-hydraulics.com
Essar Steel Minnesota LLC (ESML)
“The company ensures that it achieves continuous improvement in health, safety and environmental performance by creating a culture of employee ownership� Essar Steel Holdings acquired the fullypermitted project from MSI. Essar Steel Minnesota LLC (ESML), a wholly-owned subsidiary of Essar Resources Inc., can today be found building a state-ofthe-art open pit mining, concentrating and pelletizing plant at the site. This undertaking began life as a greenfield pellet plant project in northern Minnesota, on the western end of the Biwabik Iron Formation, with a 19,000acre project boundary, of which 4,360 acres are mineral lease land. ESML has measured and indicated mineral resources of approximately 1,768 million
metric tonnes of iron ore as well as inferred mineral resources of approximately 201 million metric tonnes of iron ore. Construction and development of the project commenced in October 2010, with ESML expecting operations to commence in the fourth quarter of 2014, ramping up to an annual production capacity of seven MTPA in quarter three of 2015. All of the required Federal and State regulatory permits and approvals for the seven MTPA pelletizing capacity have been received, while permits and approvals for 1.8 MTPA of direct reduced iron (DRI) and 1.5 MTPA of electric arc furnace based steel are
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Adyard Abu Dhabi LLC P.O. Box 7604, Mussafah, Abu Dhabi, UAE Email: adyard.abudhabi@topaz-engineering.com Tel: 02-5547722 Fax: 02-5546767
Nico International Hy PO Box 2978, Fujair Email: fab.fuj@topaz-eng Tel: 09-2249400 Fax: 0
Contact: Tony McKay, Managing Director | William Duff, Sales Director | www.topa
ydrospace rah, UAE gineering.com 09-2249504
azworld.com
QUALITY AND DELIVERY The project is for the fabrication, pre – commissioning and load out of Jackets, Piles, Conductors and Deck Structures for the C – 26 cluster & B1731-B Well Platforms of the Oil & Natural Gas Corporation of India, which is total of around 10,000 MTS. Topaz Oil and Gas Limited Topaz Oil & Gas (TOGL) is a reputed U.A.E based experienced service provider to Oil and Gas Industry. Operating out of facilities in Abu Dhabi (Adyard) and Fujairah (Nico International Hydrospace), the business is engaged in offshore and onshore construction across the UAE, and for global clients in the oil and gas, utilities and ports industries. • 140,000 m2 of fabrication area in Abu Dhabi & Fujairah with extensive water frontage • Over 35,000 tons and 360,000 in/ dia capacity per year The ISO 9001:2008, ISO 14001-2004, ISO 18001:2007 and ASME & API certifications ensure our delivery to internationally recognized standards of excellence. Our Services: • EPC Turnkey Projects both Onshore and Offshore. • EPC Turnkey Projects for Tanks and Terminals. • Fabrication and Construction Services for Jackets, Topside, Modules, PARs and PAUs, Exotic Piping, Pressure Vessels, Columns, Heat Exchangers, Separators etc. • Maintenance Services such as Shutdown Support; Valve, Pump, Motor and Generator Refurbishment; Machining and Calibration of Instruments • Rig Repairs both On-float and alongside
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Essar Steel Minnesota LLC (ESML) also in place. Project financing is fully committed for the Since 1961, PaR Systems has been designing and installing commissioning of 4.1 MTPA mill liner handlers world-wide. Whether your grinding mill pelletizing capacity, while is a large ball or rod mill, semi-autogenous or autogenous, obtaining additional project or an existing mill with limited access, PaR has a solution financing for the incremental that can meet your specific requirements. Each is built with 2.9 MTPA is in process. features that enhance the relining process, making it faster, easier, and safer. Your Mill Liner Handler will be delivered ESML possesses the fully operational within 12 months. The knuckled boom and flexibility necessary to its 360-degree rotation means you can reline both sides of produce standard, fluxed the mill without repositioning. and direct reduction grade www.par.com/industrial/mining pellets. The company’s aim is to be one of the lowest cost producers of said pellets in North America by utilising the ore body characteristics of its location area and the significant technological improvements that have occurred since the building of the last pellet plant in the US in the 1970s. Strategically located alongside multiple access points to a first class ground transportation infrastructure the company is perfectly placed to serve the North American market, while multiple vessel options in its vicinity give it access to the international seaborne market. The nature, location and scope of the mine itself allows for less capital equipment to be employed in mining operations, a factor that
PaR Systems
1,768 million tonnes ESML’s measured and indicated mineral resources of iron ore
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is expected to result in significantly reduced operating costs over time. The short haulage distance from the mine to the coarse crusher also provides significant operational costsavings. Ultimately the plant will feature a two-stage crushing circuit, which will increase mill throughput, as compared to a single mill operation. Moreover, transporting the slurry via pipeline will provide the ESML with substantial cost savings over rail and road transportation. The project site will also have a slurry storage capacity of 60,000 tonnes, which is intended to reduce process interruptions. ESML carries with it a steadfast belief that through a combination of teamwork, training, communication and shared responsibility, it can maintain a workplace free of injury, illness or environmental incidents. Most importantly, the company ensures that it achieves continuous improvement in health, safety and environmental performance by creating a culture of employee ownership. To that end, it strives to involve employees at all levels of the organisation in the creation of policies and procedures and seek to ensure that any issues are resolved in a timely manner at the appropriate organisational level. Before a company can develop and operate a mine in the state of Minnesota it must first
complete an Environment Impact Statement or Study, before then obtaining the appropriate environmental permits and approvals which grant permission for the construction and operation of production facilities, as well as the final reclamation of the mine site. Accordingly, ESML has obtained all of the necessary permits and approvals to increase pelletizing capacity to 7.0 MTPA. A supplemental Environmental Impact
“ESML realises it also has a responsibility to give back to the community that supports it in many ways� 128 | BE Monthly
Essar Steel Minnesota LLC (ESML)
Statement for a 7.0 MTPA iron ore pellet plant was approved by the Minnesota Department of Natural Resources on December 29th, 2011 after undergoing a public review process. In addition the company obtained a Permit to Mine from the Minnesota Department of Natural Resources on April 17th, 2012 and an air permit from the Minnesota Pollution Control Agency on May 10th, 2012. Furthermore, the company has engaged environmental consultants to evaluate the increased capacity envisioned in Phase II of the project. The environmental review and permitting process for the additional capacity will involve the preparation and submission of a further Environmental Impact Statement, as well as the amendment of all of the current environmental permits.
ESML realises it also has a responsibility to give back to the community that supports it in many ways. The company’s employees can regularly be found volunteering their time, and making financial contributions, towards various initiatives including local programmes United Way and Food Shelf, and towards local schools, universities and hospitals. In addition to these, ESML’s employee driven Community Connections Committee coordinates vital outreach efforts to several of the region’s leading non-profit organisations. For more information about Essar Steel Minnesota LLC (ESML) visit: www.essarsteelmn.com
BE Monthly | 129
130 | BE Monthly
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
BE Monthly | 131
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
500
BE Monthly | 133
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
136 | BE Monthly
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
BE Monthly | 137
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.
BE Monthly | 139
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” 140 | BE Monthly
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
BE Monthly | 141
142 | BE Monthly
Banro
Producing and prospecting Banro Corporation’s recent achievement of production at its Namoya mine transforms it from a one-mine company with less than 100,000, to a two-mine company targeting more than 225,000 ounces of annual gold production
written by: John O’Hanlon research by: Richard Halfhide
BE Monthly | 143
Banro
P
olitical uncertainty and the serious lack of infrastructure development have gone hand in hand to hold back the development of mineral resources in the DRC. We frequently cover gold mining projects in both West and East Africa that have been in development since the mid 1980s, however though it’s among the richest natural resource countries in Africa, the DRC seems to have lagged badly. At last the picture is beginning to change. Since the election of Joseph Kabila in 2006, and following the introduction with the support of the World Bank of a new mining code in 2003, the country has experienced a revival of interest on the part of both major and junior international mining and exploration companies. Meanwhile, the World Bank, the IMF, USAID, and the ‘Paris Club’ of major global economies, as well as the European Union and South Africa, have committed billions of dollars to social and economic recovery in the DRC. Nevertheless, the DRC continues to raise concerns among global investors who remain to be convinced their money will be safe there. However that has never been the view of the management of Banro, a Canadian gold company that started intensive mineral exploration in the DRC in 1996, starting out with a handful of experienced geologists from Ghana, Tanzania, and the UK assisted by a group of new graduates from the Bukavu Technical Institute. Within a few years, they had delineated over eleven million ounces of gold and identified 16 new targets for follow-up in the DRC’s eastern provinces of South Kivu and Maniema – surely one of the
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SLR SLR Consulting (SLR) is proud to be associated with Banro’s Namoya and Twangiza projects in the DRC. SLR was commissioned by Banro in 2009 to first site and then design a 170m high valley type Tailings Storage Facility (TSF). The challenges associated with this project were diverse and included the diversion of streams around the valley fill dam, sourcing of large volumes of suitable materials for massive earth embankment construction and the design of the embankment to ensure dam safety within the seismically active region. The principles of designing for ultimate closure in a safe and sustainable manner were incorporated in the design approach. The steep topography presented significant
challenges in terms of the design of access roads and stream diversions. SLR was commissioned by Banro in 2011 to prepare an ESIA for the Namoya project. SLR was also appointed for the design of the TSF, return water dam and related infrastructure. The brief included the specialist geotechnical investigation for the TSF, surface water management & flood risk assessments for the mine , geochemical studies to assess the pollution potential of heap leach materials, tailings and associated liquors and groundwater studies including contaminant transport modelling. www.slrconsulting.com
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Operates in 5 African Countries; Kenya, Tanzania, DRC, Zambia and S Sudan. locations Provides total fuel management solutions assuring control and quality.
www.dalbitpetroleum.com
Zambia. Commissioned Phase I of 50 MW . Total Capacity in 2015 will be 100MW. Signed PPA for 20 years. prudent practices reducing generating costs.
www.ndolaenergy.com
Creating Fuel Storage infrastructure of 80,000 m3. Providing High standards construction services for Fuel storage turnkey projects. Prudent Project Management practices. Application of Latest Construction & Design techniques
www.belgraviaservices.com
Banro throughput at full capacity of DALBIT / NECL / BSL 1.7 million tonnes per year, MOVING AFRICA FORWARD WITH Twangiza was projected to TOTAL ENERGY SOLUTIONS produce upwards of 10,000 Significant presence in Fuel supplies and logistics, Creation ounces of gold each month of Fuel Storage Infrastructure and venturing into providing with an expected mine life power solutions in the remotest locations to the Mining of seven to eight years from companies and other Infrastructure players in Africa. www.belgraviaservices.com currently-defined reserves. It is still working towards that level, having produced 22,858 ounces of gold in the fourth quarter of 2013, approximately ten percent higher than in the previous quarter last year. In all Twangiza produced 82,591 ounces of gold for the full year 2013. Banro’s President and CEO Dr John Clarke expressed his satisfaction with this result: “We are pleased with the progress made at Twangiza during the last half of 2013 and look forward to both increased throughputs and recoveries in 2014 following the enhancement project completion in Q1 of this year.” At this time it is a distinct advantage for any junior company to have even one producing and highly prospective property on its books. But now Banro has another. Its Namoya mine, at the southern end of the TwangizaNamoya gold belt in Maniema province and approximately 225 metres south west of
“We are pleased with the progress made at Twangiza during the last half of 2013”
Secondary oversize conveyor 12-CVR-05 belt
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Banro
Re-handling of crushed ore from the primary product stockpile to the heap leach pad
Bukavu, successfully began gold production This is a significant and exciting milestone with the pouring of the first 320 ounces on for Banro, said John Clarke. “We would like December 30, making it Banro’s second gold to thank our professional operations teams, mine to come into production in just over business partners, consultants, regional two years. Construction began at Namoya governments and the local communities for in the fourth quarter of 2012. Remaining assisting us in this significant achievement. building work will continue in step with We look forward to continued growth, new commissioning operations in business opportunities and the first quarter of this year, a long association with the while commercial production DRC”. The start of production is expected to be achieved at Namoya is also a before the end of June 2014. tremendous achievement for At full capacity, gold from the DRC, clearly signifying the Namoya mine is expected that the emerging mining to double the company’s nation is a place to find, projected gold production to finance and successfully Ounces of gold a rate of between 225,000 build new gold mines. delineated at Lugushwa and 240,000 ounces a year. In addition to Twangiza
5.6
million
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Plant make-up water dam and the heap leach pad
“We look forward to continued growth, new business opportunities and a long association with the DRC” and Namoya, Banro has two other key licensed projects, Lugushwa and Kamituga, and more than a dozen exploration targets including Ntula, Mufwa, Tshondo, Luhwindja and Kaziba. At Lugushwa a Measured & Indicated mineral resource of 1.13 million ounces of gold has been delineated, and an Inferred mineral resource of 4.48 million ounces of gold in close-to surface material, where the focus is on oxide resources. Exploration is continuing, with the objective of increasing the oxide resource and further plans include
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undertaking a scoping study. High level analysis of the Kamituga gold project was completed in 2009 and exploration drilling continued into 2012 to increase the confidence of the existing inferred mineral resource for this property to 0.92 million ounces of gold in the Measured & Indicated category. Banro does not subscribe to the view that the Congo is an intransigent place to do business. “We have quite a different view of working in this country, where we have found people eager to leave the troubled past behind
Banro
Heap leach ponds and pad
and build a future characterised by economic opportunity, social development and political stability,� says Martin Jones, Chairman of the award-winning Banro Foundation, which has been formally recognised in the DRC and Canada for its contributions to social and economic reconstruction in the DRC. One of the biggest challenges the company faced was to prove to the DRC government that it was committed to promoting social and economic development and to ensuring that mineral development significantly benefited local communities. After more than a decade of work, five key lessons have been learnt, he says. 1. Ongoing consultation and dialogue at all levels of society is absolutely critical to success in the DRC.
Plant site
2. Along with consultation comes the obligation to listen with great sensitivity and to follow through fully on commitments. 3. Mining companies wishing to work in the DRC must have a strategic and comprehensive commitment to community development. 4. Transparency is critical. 5. Job creation and on-the-job training must be No1 commitment. Under each of these heads the company has honoured its commitment in concrete terms – detailed in the Banro Foundation’s brochure, it is well worth reading. For more information about Banro visit: www.banro.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
1999
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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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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
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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 Monthly | 171
“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
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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 Monthly | 175
“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
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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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In the right place a The successful diversification of its business portfolio and service offering has made Al Rashed International Shipping Company one of the primary contributors towards growth across the Middle East
written by: Will Daynes research by: James Boyle
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Al Rashed International Shipping Company
at the right time
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Al Rashed International Shipping Company
P
roudly boasting a free and thriving economy, Kuwait stands tall amongst the top twenty richest nations on the planet. Among a number of other achievements, the Middle Eastern country has developed one of the largest shipping industries in the Arabian Gulf, within which exists Al Rashed International Shipping Company, one of, if not the leading player in the Kuwaiti marine sector. Following the Iraqi invasion that prompted the first Gulf War, Kuwait faced the challenge of having to rebuild its infrastructure network. It was around this time that Al Rashed International Shipping Company grasped the opportunity to diversify as a business. Since then it has grown into a company which promotes itself not only as a shipping/port agent but also as freight forwarders, charterers and contractors, capable of taking on all manner of shipping requirements from specialised vessels to passenger ferries, freighters, container ships, bulk carriers and oil tankers. “Over the last couple of years we have worked hard to increase our market share not only in Kuwait, but also in Iraq, where we were the first transport and logistics company to establish a proven freight delivery system into the country following the removal of the old regime, and into Saudi Arabia,” explains General Manager, Ravi Varrier. “Today we have some 220 people working for us in Kuwait, 300 in Iraq, and a small set of individuals operating in Saudi Arabia.” As Varrier goes on to tell me, the company has become increasingly involved with
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several major oil projects currently ongoing in Iraq, working alongside many of the leading international oil companies present in the region. Simultaneously, the company is handling the increasing levels of several big bulk vessels’ traffic to Iraq port(s), bringing supplies and materials from Far East and the UAE, predominantly, for use on projects currently underway in the country.
Meanwhile the company is playing a supporting role in several major projects in Kuwait, one being the construction of the new Bubiyan Port in the north-east of the country, while a contract signed eight months ago has seen Al Rashed International Shipping Company become a principal player involved in the building of Kuwait’s largest causeway bridge. These massive individual
“by being able to conduct work in many different fields at the same time we find ourselves in increasingly high demand”
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Al Rashed International Shipping Company
undertakings are the latest to “While the growth join a Kuwait based portfolio w it ne s s e d in t he which also includes a number aforementioned countries of offshore projects. has contributed to our own Kuwait is perhaps the success, arguably the biggest perfect example of a country reason in my opinion is that is determined to spend the diversification of our Estimated offshore what is necessary to create a business and our ability to and infrastructure take on work across different brighter future for itself and investment in Kuwait its citizens, be it through business sectors,” Varrier over the next five years providing better services or by continues. “Our flexibility ensuring strong employment as a business is what makes us stand out as a company opportunities. As a matter of fact, it is estimated that over the course of and by being able to conduct work in many the next five years alone some $20 billion different fields at the same time we find will be spent in Kuwait on major offshore, ourselves in increasingly high demand. In infrastructure and other projects. turn we always strive to establish strong,
$20
Billion
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“We aim to carry on doing what we do best, whilst always looking at ways that we can expand into other key areas” long-lasting relationships with all our clients, whatever their background may be, and this gives them the confidence that we are the service provider best suited to their needs.” The idea that the company needed to diversify was one that Varrier immediately began pursuing upon taking over the role of General Manager, however he is the first to recognise that even with a strong plan in place to expand the business it would
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not have been possible without both the support of the company’s owners who gave a free hand to pursue this business in the right direction, and the dedicated service provided by its workforce. “Take Saudi Arabia for example, where we have only recently started establishing a presence alongside our partners in the region with the aim of becoming more involved in the big oil and gas projects
Al Rashed International Shipping Company
occurring there,” Varrier says. “It represents a hugely exciting and growing market for us to operate and one that has such great potential for future business. Therefore it is clearly a country we hope to expand within and we can only do so by having the right people in place, after all no matter what line of work a business specialises in, it cannot hope to succeed without having the best people to drive it forward.” Ongoing developments in Kuwait, Iraq and Saudi Arabia will no doubt continue to provide much of Al Rashed International Shipping Company’s work over the coming months, with each country requiring the support of experienced partners in the construction and delivery of ever more important oil and gas, power generation and infrastructure projects.
“In the months ahead our strategy is simple, and that is to become an increasingly important contributor to these major projects,” Varrier concludes. “Positioning yourself as a vital service provider, and subsequently maintaining said position, is a fundamental requirement for any big business wanting to grow in this part of the world. From there we aim to carry on doing what we do best, whilst always looking at ways that we can expand into other key areas. That will be key to maintaining our own success and achieving our own growth over the long-term.” For more information about Al Rashed International Shipping Company visit: www.al-rashedgroup.com
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All part of
A combination of world-class facilities Port Everglades a powerhouse of inter
written by: Will Daynes r
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Port Everglades
f the plan
s and innovative leadership has made rnational trade, travel and investment
research by: David Brogan
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Port Everglades
T
hough the name suggests Port Everglades has rapidly established otherwise, Port Everglades does itself as Florida leading seaport for not actually form part of the containerized cargo. Situated within the Florida Everglades, rather is it epicentre of a region that thrives on trade located on the south-eastern and tourism, it is the perfect hub and point of coast of the Florida peninsula within the entry for companies that conduct business in cities of Fort Lauderdale, Hollywood and Central and South America, the Caribbean, Dania Beach. Situated in close proximity Europe, and the Far East. Every year more than 5.2 million tonnes to the Atlantic Ocean shipping lanes, the Florida East Coast railway, the state’s of containerized cargo moves through Port highway system and the Fort Lauderdale- Everglades and it is the port’s position that Hollywood International Airport, it serves nobody moves said cargo in and out faster. all of South Florida from Miami to Palm The reason for this is that the port is part of a Beach and Orlando. thriving global transportation Dubbed South Florida’s network, while an aggressive expansion of its facilities “powerhouse port”, Port through a multi-million Everglades is one of the most diverse seaports in the dollar capital improvements United States, among the programme has also been most active containerized key to recent growth. This cargo ports in the United programme has to date Total value of Port States and South Florida’s resulted in the port adding Everglades’ economic main seaport for petroleum new and expanded marine activity products such as gasoline cargo terminals, become the and jet fuel, and among the first in the nation to have top three cruise ports in the world. an ELMO system installed and achieving Port Everglades leverages its world- 99 percent uptime on its gantry cranes. Ships and cargo are not Port Everglades recognized South Florida facilities and innovative leadership to drive the region’s only source of business however. Covering a economic vitality and provide the highest jurisdictional area of some 2,190 acres the port levels of service, safety, environmental also boasts office space, real estate, warehousing, stewardship and community accountability. a foreign-trade zone and more than 25,000 lineal The total value of economic activity at the feet of docks. Also, and in addition to major port is approximately $26 billion, while cruise lines, cargo and petroleum companies, more than 201,000 jobs in Florida are other ancillary industries including security impacted by it, including 11,700 individuals companies, import and export companies, who work for the companies that provide it food suppliers and steamship agents continue with direct services. to benefit from the port’s success.
$26
Billion
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Port Everglades Port Everglades Behind the growth feature of Port textEverglades to go here... is what it ipsum Lorem refers to dolor as itssit20-year amet, Master consectetur Plan, one that it updates adipisicing elit, sed every dotwo eiusmod years. The tempor plan incididunt ut labore et dolore magna aliqua. calls for on-going capital improvements that ultimately Ut enim adbenefit minimthe veniam, port’s customers quis nostrud in the cruise, cargo exercitation ullamco andlaboris petroleum nisi utindustries, aliquip ex while ea commodo 2014’sconsequat. update Duis re-emphasises aute irure dolor its determination in reprehenderit toin plot voluptate a course velit for esse expanding cillum and enhancing dolore eu fugiat existing nulla facilities pariatur.inExcepteur a manner that occaecat is economical and efficient, as well as sint cupidatat non proident, sunt environmentally in culpa qui officia responsible. deserunt mollit anim id estThe laborum. Lorem ipsum dolor sit amet, most recent update to the Master Plan consectetur adipisicing elit, sed do eiusmod identifies a number of key parameters of port development. These have the magna ability tempor incididunt ut include labore et dolore
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. 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
SWC SWC has served as the environmental consultant team member for master planning at Port Everglades since 2006. Work has included: • site recognizance of upland and marine Port facilities; • collecting current data on all existing submerged and emergent wetland habitats in and near the Port and entrance channel, including mangroves, seagrasses and corals; • collecting current data regarding all listed species in and near the Port, including Acropora corals, manatees, smalltooth sawfish, and wood storks; • collecting current data regarding existing and potential contamination sources on the Port property; • analyzing existing conditions and proposed Port and entrance channel expansion plans in relation to environmental impacts and permitting requirements; • assessing alternative plans for moving the conservation easement associated with expansion of the Turning Notch that includes 8.7 acres of
mangrove impacts, as well as mitigation plans; • assessing the impacts of sea level rise to future Port plans, • preparing text and illustrative figures for relevant sections of master plan documents; • extensive agency coordination and participating in agency and public involvement meetings; • addressing questions and comments from agencies and the public regarding environmental elements of plans and updates; and • preparing text to incorporate environmental sections of the finally-adopted Plan Update into the Broward County Comprehensive Plan. Currently, SWC is assessing new proposed projects at the Port in regard to impacts on natural systems and contamination sources, and is preparing estimated pricing associated with mitigation and remediation required to accomplish these projects. www.swcinc.net
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“Behind the growth of Port Everglades is what it refers to as its 20-year Master Plan, one that it updates every two years� to berth fully laden Post-Panamax vessels carrying up to 7,000 twenty-foot equivalent container units, being able to support more and longer cargo berths with appropriate cranes, cruise berths able to handle 1,100-foot
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ships and larger cruise terminals as well as the reconfiguration of slips to enhance efficiency and safety, upland improvements to terminals and intermodal access, and the adding of a new berth for a crushed rock/aggregate ships.
Port Everglades
Port Everglades recognizes the impact the port has, not only on its tenants and users, but also on the surrounding communities. Addressing and resolving issues and concerns throughout the planning process have fostered an effective working relationship and consensus between the various stakeholders’ interests. It also recognises that the Master Plan is a living document and will continue to be updated accordingly in the future. In the meantime Port Everglades is embarking on three critical expansion
projects that are projected to create as many as 7,000 new jobs regionally and support some 135,000 jobs state-wide over the next 15 years. These key expansion projects are expected to be completed over the next six years and will add up to five berths, widen and deepen the channel to 50 feet and bring freight rail into the Port. For more information about Port Everglades visit: www.porteverglades.net
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Jamaica Urban Transit Company (JUTC)
A route to excellence The Jamaica Urban Transit Company (JUTC) has become a major pillar of economic development on the Caribbean island, with passengers today making in excess of 70 million journeys on its vehicles each year
written by: Will Daynes research by: Jeff Abbott
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Jamaica Urban Transit Company (JUTC)
I
t was in 1995 that the government of efficient and reliable public transport is essential Jamaica took the decision to restructure to the economic well-being and productivity of its public transportation industry, one Jamaica’s inhabitants, the JUTC has successfully which saw the formation of Metropolitan brought about major changes in the quality and Management Transport Holdings which image of public transport in the Caribbean. It was tasked with bringing order to a sector is proud to have improved on the comfort and lacking in the required infrastructure. convenience of the service for passengers with Three years later, in response to the demands a menu of services never before seen in public from the Jamaican people for a strong, reliable transport in Jamaica. This includes services service, the Jamaica Urban Transit Company for physically challenged, premium express (JUTC) was established to provide a centrally services, and charter services. managed, state-of-the-art public bus service. The JUTC Charter Service offers a personal This was done so at a cost of $6 billion, a large approach in organising and managing a sum of money by anyone’s standards but one that customer’s transportation itinerary. As the highlights the government’s leading transit operator within the Kingston Metropolitan commitment to bringing an Transport Region (KMTR), efficient transport system to the Caribbean island. the JUTC is able to arrange The JUTC was always flexible arrangements, that fit into a wide range of needs designed to be a safe, The year that the JUTC modern and reliable system that include support for VIPs was established of transport, efficiently services, corporate event operated at a reasonable shuttles, regional church cost to commuters. In achieving this aim conventions, school outings, community five depots were constructed within the excursions, fun days, beach parties, performing within the Kingston, Portmore and Spanish groups, spectator support for team away-games, Town areas. The subsequent growth of the graduation ceremonies, and family events. company has seen it acquire some 648 Volvo The company’s support system includes and Mercedes-Benz buses, at prices ranging on-going contact between the bus and central from $3.3 million to $11.5 million per unit, a control, giving a higher level of comfort for number of special buses for the handicapped, passenger safety and security. Meanwhile, the 30 single operates MAN buses for hilly features of the buses themselves include air routes and 20 luxury coaches. In addition conditioning, reclining seats, extended luggage to this investment in its fleet the JUTC has compartments, on-board bathroom facilities also brought in an electronic fare collection and public address systems. system and continues to improve upon a It goes without saying also that the company comprehensive training programme for staff. prides itself on having proven professionals Operating on the principle that a safe, behind the wheel of all of its buses, to ensure
1998
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Rubis Energy Rubis Caribbean’s head office is located in Barbados and the Managing Director is Mauricio Nicholls. Over 200 persons are employed across the English speaking Caribbean. Our various departments include Shipping, Supply and Trading, Aviation, Finance, Sales, Marketing, Operations and Information Technology. Our highly qualified teams are strongly motivated by Rubis’ entrepreneurial approach in which the employees are encouraged to think local and constantly seek opportunities to grow the business. We are always looking to grow our business and have created new positions, growing our regional head count since assuming business in the Caribbean. We
We offer a fresh, all-inclusive package of high quality products like our newly modernised RUBIS service stations; great friendly service; Ultra Tec, a long-lasting advanced fuel additive; and new green RubiGas cylinders. Visit a RUBIS station today, our staff are looking forward to serving you! Tel: (246) 417-6300 www.rubis-caribbean.com
have a strong commitment to the local communities in which we operate and have supported various social and charitable organisations in all our markets. Rubis Aviation is a leading supplier of premium aviation fuels in the Caribbean, supplying high quality jet fuel and aviation gasoline at the 11 Caribbean airports in which we operate. The Rubis Shipping, Supply and Trading function is based in Barbados and supports the core business by trading refined fuels. Our products are shipped to various destinations across the Caribbean and we pride ourselves in being a safe and reliable fuel supplier for many countries in the region. www.rubis-caribbean.com
Jamaica Urban Transit Company (JUTC) a high degree of passenger safety on charters. As a matter of course, it periodically runs refresher training for all of its drivers. As it continues to pursue self-improvement, the JUTC has announced several major developments in recent months, the first being the centralisation of its maintenance services at its Ashenheim Road service buses have also been acquired depot. The centralisation of major repairs and the general by the JUTC to serve the preventative maintenance disabled community. The functions at the Ashenheim three new units, which Road Depot is aimed at not are equipped with ramps Million journeys made on only improving the quality and other facilities to JUTC buses in 2012 of repair works generally, accommodate wheelchairbut also promoting greater bound commuters, will augment three others which efficiency in the overall maintenance operations. It is intended to were previously in the company’s fleet. The bus network in Jamaica has well and achieve this through the centralisation of the best available team of technicians truly established itself as being the principle and supervisors to undertake preventative means of transport for the island’s workforce, maintenance and major repair works. its students and the vast majority of the This year has also seen the company add commuting public. Last year alone the people two further consignments of 50 buses each to of the KMTR took more than 74 million its fleet, taking the number of Volvo and VDL journeys on JUTC buses, a figure which helps Jonckheere buses from Belgium that have explain why the company believes that its been added to its ranks to 200 since January vehicles are to economic productivity what 2009. The new buses are all air-conditioned airlines are to the tourism sector. and come complete with state-of-the-art equipment including surveillance facilities For more information about Jamaica and other public safety features. Urban Transit Company (JUTC) visit: Further to the above additions to JUTC’s www.jutc.com fleet, a batch of new and highly specialised
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AKTOR
Greece’s construction
colossus Greece’s largest construction company, AKTOR has grown to become a major player on both the local and international stages
written by: Will Daynes research by: Jeff Abbott
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Abu Dhabi National Exhibition Centre
AKTOR
B
eginning life in the early 1960s as a general contractor for medium to large scale projects occurring within Greek territory, AKTOR would go on to expand rapidly during the subsequent decades making it one of the leading players in the Greek construction sector by the mid-1990s. Buoyed by a combination of Greece’s economic growth between 1998 and 2007, which was in part driven by the country’s first build-operate-transfer (BOT) schemes, projects related to the 2004 Olympic Games and the significant improvements made to Greece’s infrastructure network, AKTOR would go on to amalgamate local contractors to become the largest construction company in the country. AKTOR’s expertise extends to a number of important areas, including buildings, industrial, waste water treatment, mining and quarrying, and facility and project management. In 2012 the company’s turnover reached €904 million, while as of November 2013 its construction backlog has reached a value of 2.8 billion euros. Today AKTOR boasts a presence in 17 different countries and has over 8,000 collaborators at home and abroad. “On the back of the experience we had gained through the realisation of countless milestone projects in Greece, the last ten years has seen the company embark on a programme of overseas expansion,” explains General Manager, John Bournazos. “The first steps in this programme saw the company establish a presence within the Balkans and the Middle East. These two remain regions within which we continue to experience
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“AKTOR has a moral commitment towards maintaining a long-term corporate social responsibility program” strong demand, while they also provide a good foundation from which to continue growing our regional activities.” With the company obliged to adhere to European Union policy on providing financial assistance to what it calls pre-accession countries, road, rail and metro based infrastructure projects remain the thrust
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of AKTOR’s activities today. Nevertheless, recent demand for renewable energy projects has seen the company establish a strong position as part of crucial solar, wind and hydroelectric schemes, while also taking on roles in the construction of waste water treatment plants and various other facility management projects.
AKTOR
Egnatia Odos Metsovo Bridge
When asked what he thinks has contributed to the company’s success, Bournazos has no hesitation in giving his option. “Without doubt our highly qualified and specialised manpower, combined with our fully owned fleet of equipment and the way we implement strict HSEQ procedures in each and every project, have contributed immeasurably to the continued advancement of AKTOR.” It is these strengths and characteristics that have seen the company take responsibility for countless important, prestige projects that fall into the road, rail and metro infrastructure, and industrial and building project fields. Recent infrastructure projects of significance include the company’s work
on several Greek road concession schemes that are transforming the country’s road networks into modern motorways following the success of the Athens Ring Road, and the expansion of sections of the metro lines in Athens and Thessaloniki. Further afield AKTOR was also charged with the construction of the 16 kilometre long Dubai Fujairah Freeway, which included the construction of five bridges crossing over water and gas pipelines, and was involved in the finalisation of sections of Corridor X along the TransEuropean Road Network in FYROM (Macedonia) and Serbia, as well as the completion of the Tirana to Elbasan Motorway in Albania.
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€2.8 Billion Value of AKTOR’s construction backlog as of November 2013
Lukoil Refinery, Burgas Bulgaria
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In Greece the fruits of AKTOR’s labour can also be seen in the form of various buildings. These include the New Acropolis Museum in Athens, a unique structure that provides testimony to both the country’s history and its modern architecture, the restoration of the iconic 19th Century Municipal Theatre in Piraeus and the construction of the Costa Navarino in Messini. This latter project involved the building of two luxury five star hotels within 1.3 million square metres of seaside landscape and the transformation of a further 200,000 square metres of surrounding area into both hard surfaces and green areas housing over 4,000 trees and 300,000 shrubs. Internationally AKTOR was heavily involved in the building of the New Doha International Airport in Qatar, constructing the aircraft maintenance hangar, the service cargo complex, maintenance facility building, motor transport workshop and training centre, while it currently chases new opportunities in the country including Doha Metro. Meanwhile, in Abu Dhabi, the company has worked on several Phase 2 developments on behalf of Abu Dhabi National Exhibitions Company (ADNEC). These included the building of four exhibition halls, a multipurpose hall and two multi-storey car parks.
AKTOR
New Acropolis Museum
Industrial projects brought to life by the company include waste water and water treatment plants in major cities in countries including Greece, Cyprus, Germany, Croatia, Slovenia and the UAE, as well as refineries on behalf of Lukoil in Bulgaria and EL.PE./EKO in Greece. Furthermore, AKTOR has built both underground and above ground facilities for the exploitation of polymetalic deposits within the Cassandra mines, operated by Eldorado Gold.
In addition to its obvious objective of growing as a profitable business, AKTOR has what it describes as a moral commitment towards maintaining a long-term corporate social responsibility programme. “This program involves a number of important responsibilities,” Bournazos enthuses. “These include ensuring the preservation of the cultural heritage of regions that are of particular natural beauty, participating alongside various charities, being a sponsor
“We will continue to improve our operational and managerial models in ways that will increase our production optimisation” BE Monthly | 207
Navarino Resort
AKTOR of sporting activities, supporting research programs and local multi-technical schools, and providing private medical insurance to all of our employees. These are just some of the things that make us a responsible and consciences member of the communities in which we operate.” In recent years, particularly in light of the economic downturn that has affected several of its key markets, AKTOR has recognised the need to become more extrovert. It has done so by internationalising the business to the point where more than 50 percent of its turnover originates from overseas markets. “In the coming years our strategy will pivot around several key axes,” Bournazos says. “The first will require us to galvanise our market leading position when it comes to project construction throughout Greece by not only taking on more public and private projects, but also by enhancing our input within co-financed projects. Achieving increased vertical integration will be ever more vital, while further expansion overseas is something we are aggressively pursuing not only in Europe and the Middle East, but also in North Africa and other selected territories. Last, but certainly not least, we will continue to improve our operational and managerial models in ways that will increase our production optimisation and secure sustainable development for the company for many years to come.” For more information about AKTOR visit: www.aktor.gr
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PREPA – Puerto Rico Electric Power Authority
Bringing change to the Caribbean As Executive Director, Juan F. Alicea Flores discusses, Puerto Rico’s principle electricity provider is moving forward with game-changing plans to shift the island’s dependence from petroleum products to natural gas and renewable energies
written by: Will Daynes research by: Abi Abagun
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L
ocated to the east of the Dominican Republic and to the west of the Virgin Islands, the Commonwealth of Puerto Rico is renowned for its exotic locations, white sandy beaches, mountains, valleys and various natural splendours. Classified by the World Bank as a high income economy and as the most competitive economy in Latin America by the World Economic Forum, it also boasts the highest GDP per capita of any other nation in the Caribbean. It is also in Puerto Rico where the island nation’s electric power authority, PREPA, is working diligently to usher in a new era of energy usage that will greatly benefit not only Puerto Rico but the region as a whole for generations to come. “The biggest challenge we face today as a nation is the high cost of electricity,” states Executive Director, Juan F. Alicea Flores. “As the only energy supplier in Puerto Rico it is our goal to reduce these costs. We currently have a number of important projects taking shape across Puerto Rico, one of which involves the development of the infrastructure necessary to receive natural gas, specifically the creation of a major floating storage facility and the converting or replacing of 14 power generation units.” Founded in 1941, PREPA is responsible for providing electric energy to its customers in the most efficient, cost-effective and reliable manner possible. Today it produces, transmits and distributes virtually all the electric power used in Puerto Rico. PREPA’s workforce of approximately 8,240 employees are spread across various operational and support areas
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PREPA – Puerto Rico Electric Power Authority
Central Cambalache
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PREPA – Puerto Rico Electric Power Authority Puma Energy Caribe tempor incididunt ut labore including generation, transmission and et dolore magna aliqua. Ut feature text environmental to go here... protection and distribution, Lorem ipsum dolorand sit customer amet, enim ad minim veniam, quis planning, finance service, and consectetur adipisicing elit, nostrud exercitation ullamco human resources. laboris nisi ut aliquip ex sed“Puerto do eiusmod temporportfolio today Rico’s energy incididunt doloreof demand for ea commodo consequat. highlightsutalabore high etlevel magna aliqua. Ut Alicea enim ad Duis aute irure dolor in petroleum fuels,” continues. “What minim quis nostrud reprehenderit in voluptate we at veniam, PREPA want to do is reduce this exercitation ullamco velit esse cillum dolore dependence on oil andlaboris transfer it to cleaner, nisi ut aliquip ex easuch commodo eu fugiat nulla pariatur. cheaper sources as natural gas. We consequat. Duisat aute irureoil dependence Excepteur sint occaecat calculate that present is a caption dolor in the reprehenderit in This amongst population stands at around 55 this is a caption cupidatat non proident, sunt in culpa qui officia deserunt voluptate velit dependence esse cillum on natural gas percent, while dolore euapproximately fugiat nulla pariatur. Excepteur stands at 28 percent, coal 16 mollit anim id est laborum. Lorem ipsum dolor sint occaecat cupidatat energy non proident, sunt sit amet, consectetur adipisicing elit, sed do percent and renewable one percent. in qui officia mollit anim in id eiusmod tempor incididunt ut labore et dolore It isculpa our aim to havedeserunt a situation whereby est Lorem has ipsum dolor sit as amet, Ut enim ad minim quis 2017laborum. oil dependence fallen as low two magna aliqua. Executive Director Juan F.veniam, Alicea Flores consectetur adipisicing elit, sed do eiusmod nostrud exercitation ullamco laboris nisi ut
PUMA ENERGY We are a global energy business delivering high quality fuels safely, swiftly and reliably at a fair price. A professional energy business taking great pride in our work. An ambitious energy business, growing fast by answering the unmet energy needs of markets across five continents in over 35 countries. With over 6,000 employees, we bring secure, safe and affordable fuels, lubricants and other oil products to millions of business and retail customers every day. Our storage, refining, supply, retail, business to business, wholesale, aviation, bunker and LPG businesses help to fuel growth in frontier markets. At the heart of Puma Energy is a simple imperative- to always exceed our customers’ expectations.
Meeting our customers’ needs in full is just a starting point. Our brand stands for something extra, for added value that delights customers, so they trust us and choose our products and services time and time again. Added value means different things to different people, but there are consistencies in the way we make it happen. It starts by setting high safety standards and delivering excellent service, always personal and frequently unique to a single customer. It requires speed of thought and response, plus the right balance of flair, innovative thinking and solidity. WE ARE PUMA ENERGY. www.pumaenergy.com
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percent and natural gas, which by that point will be the primary fuel in our generation systems, will have risen to 72 percent.” Look closely and you will see that the moves made by PREPA are already starting to make a difference. At the beginning of 2013 the cost of energy on the island was recorded at 30 cents a kilowatt. Today it
stands at 25.5 cents per kilowatt and Alicea is convinced that by the time PREPA has its entire network of infrastructure up and running in 2015 the cost will have fallen to 22 cents per kilowatt. With such ambitious targets to aim for it will be of little surprise to find that PREPA is already hard at work putting the
“Puerto Rico’s energy portfolio highlights a high level of demand for petroleum fuels”
Energy Control Center
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PREPA – Puerto Rico Electric Power Authority
Workers attending to a power outage
infrastructure it needs in rest of the United States will place, with work currently welcome the introduction of focused on the south of the new Federal Air Regulations, island. The south presents the legislation that will target best opportunity for PREPA the amounts of particulate to initiate the construction released into the atmosphere. phase of its plans by the end of In preparation for this PREPA 2014, in advance of its target also has a number of other Amount being invested to start receiving natural clean energy projects in in transforming Puerto gas by 2015. The north of operation across the island. Rico’s energy mix in 2014 the island in comparison is a These include a 75MW wind farm which is integrated much more complex area to work in, what with it being home to Puerto into its power network and a 20MW solar Rico’s major metropolitan centres and prime energy project. This is just the beginning tourist locations. Nevertheless, PREPA is however what with PREPA planning to have adamant that despite this, natural gas will added an additional 400MW in renewable be circulating the entire island by 2017. power by the end of 2014 alone. From April 2015, Puerto Rico and the “As well as recognising the need to
$300 million
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Puerto Rico Electric Power Authority Main Building
“What we at PREPA want to do is reduce this dependence on oil and transfer it to cleaner, cheaper sources such as natural gas” integrate natural gas and existing renewable energy sources into our energy portfolio we also have one eye on the incorporation of less established technologies that we believe will grow in importance in the years to come,” Alicea explains.
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One such example of these less established technologies is the use of Ocean Thermal Energy Conversion (OTEC). OTEC uses the temperature difference between cooler deep waters and warmer shallow waters to power heat engines which in turn produce
PREPA – Puerto Rico Electric Power Authority
Optic Fibre line installation
electricity. “Due to the geographic nature of Puerto Rico we have an incredible opportunity to capitalise on this rapidly developing technology,” Alicea enthuses. With a budget that exists independent from Puerto Rico’s central government, PREPA plans to invest as much as $1,500 million over the next five years into transforming the island’s energy mix, $300 million of which will be spent in 2014. “PREPA has always employed the very finest technicians and individuals who specialise in identifying future trends and how best to approach them,” Alicea
Costa Sur
concludes. “It is these individuals who will continue moving PREPA forward in its integration of a more varied energy mix and I believe that when we look back on all this in 20 years’ time we will all be extremely proud of what we achieved and how that has impacted the lives of future generations of Puerto Ricans and their Caribbean neighbours.” For more information about PREPA – Puerto Rico Electric Power Authority visit: www.prepa.com
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More clean barrels The face of the O&G industry is changing fast, and nowhere more so than in Colombia which is blessed with large resources both conventional and unconventional
written by: John O’Hanlon research by: David Brogan 220 | BE Monthly
Ecopetrol
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Ecopetrol
T
he growth of Colombia’s oil in which Ecopetrol wants to lead the world. and gas industries is attention- But it doesn’t lose touch with reality: to be grabbing by any standards. As ‘clean’, the oil has to be viable. “Our aim recently as 2007 the country was is to have a 17 percent return on capital producing around 500 million employed,” says Guzmán. barrels of oil equivalent per day (boed) the And Ecopetrol is investing heavily, with first half of last year that figure topped a $75 billion to be committed in the period billion. Though there is an increasing number 2013 to 2020. 90 percent of this money of outside players involved, the lion’s share will be spent in Colombia itself, with the of this production boom has been achieved remainder being spent on exploration and by the largely government-owned petroleum production in three external territories, the business Ecopetrol, today one of the 25 largest USA’s Gulf of Mexico waters, Brazil and petroleum companies in the world. Peru – reflecting a new policy of expansion Ecopetrol’s figures closely mirror national overseas where appropriate. production, rising from Increased production nearly 400 mboed to around will come from three main 800 in the period from sources. The first of these January to September 2013. will be the existing fields, where there is a lot of scope “We have invested heavily in to increase recovery. “In one our legacy fields,” Ecopetrol’s way it is a blessing that we E&P Development VP Rafael Guzmán told us, “and we have seen a relatively low Boepd production have also developed new rate of recovery in many target for 2020 fields. Our plan for the future of these fields to date, is to continue that production because it presents us with growth. We have set two targets, one is to a big growth factor!” This is low hanging reach one billion barrels of oil equivalent per fruit for Ecopetrol since the reserves in the Llanos fields of the Meta department, as day in 2015 and 1.3 billion in 2020.” We’ll look in a moment at how this will well as the Mid-Magdalena Valley further be achieved, but first of all he stresses that north and Catatumbo near the Venezuelan this is no mad race to find and exploit the border are all amenable to well understood country’s reserves. These are to be ‘clean modern techniques of recovery optimisation barrels’. It’s a key objective of Ecopetrol to and enhancement including infill drilling, develop this concept – barrels that have been water and steam injection and other thermal produced without accident, injury, harm to recovery technologies. the environment or the community and with By revisiting its existing resources the goodwill of all stakeholders. It’s a new Ecopetrol has been able to revise its oil and concept in the industry; an ambitious one gas in place estimates upward by more than
1.3
Billion
BE Monthly | 223
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Ecopetrol
15 billion barrels of oil equivalent and at the similar type of oil.” Towards the end of same time increase the expected life of these 2013 Ecopetrol confirmed that two of these reserves by as much as 40 percent. And much discoveries, at Cano Sur Este and Acacias of this growth comes in the form of heavy oil, in Meta province were commercially viable. for which demand is growing in the region. The find is significant for the company; The same parts of Colombia are proving the first time for a decade it has declared ideal for further exploration. commercially viable an oil Because the geology is well which it plans to operate. understood, the likelihood of Ecopetrol expects Cano making further discoveries Sur Este to produce 25,000 bpd by 2016, and that it will is high, and some success invest $656 million in the has already been achieved according to Rafael Guzmán. block and drill 135 wells “We made an announcement there. Both discoveries are last year of four discoveries close to roads, pipelines Investment at and in the same heavy oil and surface facilities like Cano Sur Este producing region, with a treatment plants, he adds.
$656 million
BE Monthly | 225
“In one way the relatively low rate of recovery in many of our fields to date presents us with a big growth factor!�
226 | BE Monthly
Ecopetrol “For example the Acacias discover y is already producing, because it is close to the Chichimene field that we operate, and the Cano Sur field is close to a field in which we have an interest although we are not the operator. It is straightforward to start production from those fields.” The same thing applies in the Middle Magdalena Valley, he says. At the same time as maximising the areas it knows, Ecopetrol is looking at parts of Colombia that have high potential but have been neglected so far. One of these is Caguan-Putumayo close to the border with Ecuador. “Most of Ecuador’s oil comes from fields close to the Colombian border,” Guzmán explains. “Caguan-Putumayo lies between there and the heavy oil producing fields that we have in Colombia and we need to explore what is between. We have high expectations and so far we have gathered some geophysical data and drilled some wells though there is still a lot to learn about it.” This activity comes under what he calls ‘frontier’ exploration. Higher risk but promising ever higher rewards. Under this heading are included the offshore projects the company is contemplating along its Caribbean coast. “We have had a field producing gas there for more than 30 years in partnership with Chevron, but we believe
that the potential is a lot higher.” Ecopetrol has blocks that it owns and others where it partners with successful offshore exploration companies like Petrobras, Repsol and Anadarko. “We will start drilling exploration wells offshore this year” Gas could be a very important part of Ecopetrol’s portfolio going forward. However with a growing domestic market for gas the company will have to address the challenge to monetise future production, he admits. It is all part of Ecopetrol’s ‘blue sky’ exploration which now extends well beyond Colombia to Peru, the USA and northern Brazil, where it has acquired blocks both offshore and onshore in the Campos and Santos basins. The final, and in some ways the most exciting, building block of Ecopetrol’s growth
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“We have had a field producing gas for more than 30 years in partnership with Chevron, but we believe that the potential is a lot higher” strategy is unconventional hydrocarbons. Once again the company is focusing on the areas it knows best and where infrastructure is already in place. Colombia’s potential for shale oil and gas is attracting players from all over the world. It’s no secret that shale gas has transformed the USA’s energy landscape: there are similarities and differences. “Basically, the area we have
228 | BE Monthly
to work with is a lot smaller than in the States, but the reservoirs we are working with are much thicker. What we lack in area we make up in thickness!” Ecopetrol will go into partnership with experienced players from abroad, but it will also develop its own resources and has already drilled four exploration wells in the Middle Magdalena Valley and is actively working in greenfield
Ecopetrol
sites in Cordillera, Catatumbo and the Upper Magdalena Valley. More wells will be sunk this year, he promises. Ecopetrol developed its clean barrels policy in response to the national environmental monitoring agency Autoridad Nacional de Licencias Ambientales (ANLA) which imposes very strict standards on the industry. Bring it on says Rafael Guzmán! “Last year Ecopetrol was ratified for the third successive year by the Dow Jones Sustainability Index. We are every bit as proud of that as we are of our production growth, and we don’t want to grow production at the cost of society or the environment!” The same standards apply to Ecopetrol’s subsidiary Cenit, spun out just last year with the task of providing a national
hydrocarbon distribution infrastructure for Colombia, available to all players. We have spoken mainly about upstream activities, but Ecopetrol is very much involved in developing the downstream market. It is investing in its Cartagena refinery and elsewhere to make them more adaptable in present day conditions. “These refineries were made for light oil which is what we used to produce most, but now we have are producing much more heavy oil the refineries need to adapt.” For more information about Ecopetrol visit: www.ecopetrol.com.co
BE Monthly | 229
Moving
Mexico forward Mexico’s largest enterprise and biggest taxpayer intends to invest a record amount in 2014 in order to maintain its position among the world’s elite oil companies
written by: Will Daynes research by: Abi Abagun
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Petroleos Mexicanos - PEMEX
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Petroleos Mexicanos - PEMEX
O
In order to achieve its aims PEMEX relies ne of the select few oil companies in the world to upon the expertise of its various subsidiaries operate through the length and affiliated companies, PEMEX Exploration and breadth of the industry, and Production, PEMEX Refining, PEMEX from exploration and Gas and Basic Petrochemicals , PEMEX distribution through to the commercialization Petrochemicals and PMI Comercio of the end products, Petroleos Mexicanos, Internacional. PEMEX Exploration and or PEMEX as it is better known, is Production is the body tasked with Mexico’s biggest enterprise, the largest maximizing the long term economic value of taxpayer in the country and one of Latin Mexico’s oil and natural gas reserves. Its main America’s largest companies. activities include exploration, transportation, Created in 1938 through the nationalization storage and the marketing of terminals. of petroleum and the expunging of all The basic functions of PEMEX Refining private foreign and domestic on the other hand include companies at the time, industrial refining processes, PEMEX today boasts a total the processing of petroleum asset worth of $415.75 and petroleum products, billion, making it the d i st r ibut ion, storage and first-hand sales. world’s second largest nonPemex Gas and Basic publicly listed company Petrochemicals (Pemex by total market value. In The record amount Gas) is the subsidiary of recent years the company’s PEMEX is to invest in its PEMEX responsible for the crude oil production levels operations in 2014 processing, transportation have remained stable with and marketing of natural gas, it producing 2.548 million barrels per day in 2012, as well as just over liquid hydrocarbons and basic petrochemicals such as ethane, natural gasoline and six million cubic feet of natural gas. PEMEX’s mission is to maximize the value sulphur. Meanwhile, PEMEX Petrochemicals’ of Mexico’s oil assets and hydrocarbons, main activities stem from the non-basic meeting the domestic demand for products petrochemical processes derived from the through reliable, quality, safe and cost primary processing of natural gas, methane, effective service. In doing so it aims to be ethane, propane and gasoline. Last, but recognized by the Mexican population by no means least, PMI is the commercial as a socially responsible organization arm of PEMEX on the international stage. striving to permanently increase the value With operations throughout the world of its assets, while remaining responsive, PMI handles the imports and exports of transparent and innovation in its operations crude oil to and from PEMEX’s operations. As Mexico’s largest enterprise PEMEX and long term strategy.
$27.7 Billion
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CHEMISA, S.A de C.V CHEMICAL INDUSTRY
...Only Solutions®
Tel: 52+(55) 5557-0988 Email: carlos_maldonado@chemisa.com www.chemisa.com
CHEMISA IS YOUR RELIABLE SOLUTIONS SOURCE IN THE FOLLOWING AREAS: MAIN SERVICES • Consulting • Technical and economical feasibility studies • Estimated investment and cost analysis • Quality Assurance • Industrial safety • Energy Saving ENGINEERING SERVICES • Conceptual Engineering development • Basic Engineering development • Detailed Engineering development • Project management FIELD SERVICES • EPC projects • REVAMP projects • Turn key projects
PRODUCTS • Heat exchangers • Pressure vessels • Skid mounted separator packages liquid/gas and liquid/ liquid • Distillation trays • Random and structured packing • High efficiency column internals • Mist eliminators • High mechanical resistance refractory • Skid mounted separator packages (liquid/gas and liquid/liquid) CERTIFICATIONS: • ASME stamps R, U, U2 and S • ISO-9001 • CONACYT (Scientific and Technological National Council)
We do not just create the product… we design solutions
Congratulations PEMEX on your 75th Anniversary Telephone: 001 403 444-6853 Email: mcc@jvinternational.net www.mccpipelinesgroup.ca MCC complies with the DOT regulations resulting in Operator Qualification, customized to an individual company.
MCC Joint Ventures Canada International Inc. (MCC), in collaboration with our partners in the energy industry, has built training and assessment programs to offer the qualification and certification of craft professionals in the energy industry. The shortage of skilled craft professionals is critical today; we encourage corporations to close the skills gap by maintaining safe and efficient operations. Critical competencies require continuous upgrading! Operator Qualification Services: Our instructors utilize the tools provided by NCCER training and assessment, EWN (Energy World Net), OQSG, Veriforce and MEA to conduct knowledge assessments and performance verifications for operator identified cover tasks.
• Gas Pipeline Operations • Liquid Pipeline Field Operations • Liquid Pipeline Control Center Operations • Pipeline Corrosion Control • Pipeline Electrical & Instrumentation • Pipeline Maintenance • Pipeline Mechanical • Written OQ Plans and regulatory support Safety • Field Safety • Safety Orientation • Safety Technology Management and leadership development • Fundamentals of Crew Leadership • Project Supervision • Project Management Construction • Pipefitting • Pipe layer • Rigger/Signal Person • Instrumentation • Welding Other services: • OSHA & Safety • Records Management • Contractor Management • Master Evaluator Certification New MCC area of expertise: Cooling Tower management & training
CRAFT PROFESSIONALS GENERATE EFFICIENCY & SAFETY
Petroleos Mexicanos - PEMEX carries with it a huge Chemisa amount of responsibility CHEMISA is a leading provider of effective, efficient when it comes to social and and reliable process solutions. For the last 14 years we sustainable development, have served the Oil & Gas, Chemical and Petrochemical and when it comes to industries with Engineering, Procurement, Construction, leveraging its petroleum Start-up and support services to their entire satisfaction. A based operations to help long list of successful installations backs up an increasingly beneficial relationship with PEMEX, based on quality, improve the living conditions responsiveness and trust. of the country’s population. www.chemisa.com As such PEMEX is a strong supporter and promoter of regional development initiatives, seeking at all times to harmonize its own growth with that of the areas in which it operates. Such an attitude also extends to the company’s commitment towards developing itself in a sustainable, environmentally conscious manner. PEMEX considers itself to be among the most proactive of companies in the oil industry when it comes to conservation and ecosystem management, compensation and reclamation. Meanwhile, across its vast operations one will find a shared desire to ensure it succeeds in achieving increasingly efficient use of energy and water. Today PEMEX finds itself one year into its “Business Plan for Petroleos Mexicanos and Subsidiary Entities 2013-2017”. The plan in question has been laid out to plot the course
“As Mexico’s largest enterprise PEMEX carries with it a huge amount of responsibility when it comes to social and sustainable development” BE Monthly | 235
“Projected investment for this year will be 6.5 percent greater than the amount invested last year� of the company over the coming years so that if stays in line with its mandate to create value and achieve operational and financial sustainability in the long term. In putting the plan together a total of 15 objectives were identified and grouped into four separate lines of action, those being growth, operational efficiency, corporate responsibility and management modernization. The objectives include increasing inventory revenues through new discoveries and reclassification, the increased
236 | BE Monthly
production of hydrocarbons, increasing efficiency levels above international standards in gas usage and production costs, and achieving operating performance levels about the industry average when it comes to processing. Other continuously evolving long term aims include strengthening customer orientation, developing human resources, supporting growth and business improvement through the development of technology and maximizing the value of international opportunities.
Petroleos Mexicanos - PEMEX
This year the company plans to invest approximately $27.7 billion across its operations, the most in its history. The vast majority of this, 85 percent to be exact, will be put towards crude oil exploration and production. According to the company its projected investment for this year will be 6.5 percent greater than the amount it invested last year and a massive 154.1 percent greater than the investment made a decade ago. Approximately $3.4 billion of this total investment fund will be used to build four new ultra-low sulphur diesel plants and modernize a further 14. The new plants will be built at three different existing refineries, Madero in the north-eastern state of Tamaulipas, Minatitlan in the Gulf
coast state of Veracruz, and Salamanca in the central state of Guanajuato. Four other plants at the Salina Cruz refinery in the southern state of Oaxaca and the Tula facility in the central state of Hidalgo will undergo a thorough modernization process, while the remaining ten will undergo a less extensive renovation. The diesel project, which will take an estimated 45 months to complete and employ best industry practices, is to be coordinated by a specialized team from the company’s refining unit, Pemex Refining, and an external oversight body. For more information about Petroleos Mexicanos - PEMEX visit: www.pemex.com
BE Monthly | 237
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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
BE Monthly | 239
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 Monthly | 241
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
BE Monthly | 243
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 Monthly | 245
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
BE Monthly | 247
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
BE Monthly | 249
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
BE Monthly | 251
C-DOC IMCA Diver Medic Training
SEADOG Commercial Diving School
I
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
BE Monthly | 253
“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
254 | BE Monthly
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
256 | BE Monthly
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
258 | BE Monthly
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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Dalkia Energy
Making environmental progress through energy One of Europe’s leading energy companies, Dalkia provides innovative solutions and technologies to support sustainable growth and enhance environmental best practices
written by: Will Daynes research by: David Brogan
BE Monthly | 261
Dalkia Energy
B
orn in 1998 following the merging optimising industrial utilities, upgrading of two Générale des Eaux the energy performance of buildings and subsidiaries, Compagnie Générale developing alternative and renewable de Chauffe and Esys Montenay, it energies, Dalkia offers its customers was in 2000 that Dalkia opened across the globe made-to-order solution up its capital to the French electricity provider designed to lower their energy use and EDF, following an agreement between improve the environmental and economic the provider and Vivendi Environmental. performance of their facilities. Representing the Energy Services Division of Using energy audits Dalkia is able to develop Veolia Environment, Dalkia is one of Europe’s and implement decentralised solutions for leading energy companies, boasting operations energy and environmental efficiency before in 35 countries and achieving managed then deploying and operating these solutions revenues of €8.9 billion in 2012. at its customers’ sites. Due to the fact that The company provides innovative solutions Dalkia manages more than 100,000 energy to support the sustainable growth of cities facilities its customers benefit from substantial and businesses. In an era economies of scale and defined by climate change, from its ability to replace scarce resources and volatile frequently-fluctuating process energy prices, Dalkia offers with favourable tariffs, from the purchase of energy to clients proven expertise in operations maintenance. developing, constructing Number of countries in Dalkia’s employees are then and operating greener and which Dalkia operates economical energy systems. tasked with converting said Involved in every step energy into heat, cooling, of the energy chain, from decentralised compressed air and electricity at its customers’ production to demand-side management and site, while maximising plant efficiency. optimised distribution, Dalkia operates with The company always strives to work one goal in mind and that is to improve energy alongside the local authorities and performance. The company’s activities involve manufacturers it serves, be it in cities or at energy infrastructure operation, the design production sites, in order to positively manage and management of high-efficiency systems, their energy use. It is this approach that and energy consumption management. The makes Dalkia different from those energy services it offers include heating and cooling specialists that focus predominantly on the systems, multi-technical and thermal services, centralised production and transport of gas industrial utilities, comprehensive building or electricity. In contrast to such specialists management and associated special services. Dalkia considers itself to be a manager of Building on its own extensive experience local energy infrastructures. in operating cooling and heating networks, In facing down the challenges of the 21st
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Brian A. Flynn Ltd. I N D U S T R I A L R E F R I G E R AT I O N / H VAC
PACKAGED MODULARISED CHILLER ASSEMBLIES: MANUFACTURED AND TESTED AT BAF PREMISES DESIGN, SUPPLY, INSTALL, COMMISSION, VALIDATE, SERVICE ALL REFRIGERATION/HVAC SYSTEMS. APPLICATIONS
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NEWCASTLE-WEST, CO. LIMERICK, IRELAND. TEL: +353 69 62044 | FAX: +353 69 62452 | baflynn@baf.ie | www.baf.ie ISO 9001:2008
Dalkia Energy Century, Dalkia has diversified during the course of its Specialist Industrial Refrigeration / HVAC company. We are lifetime to become a provider certified to ISO 9001:2008 for the Sale, Design, Installation, of innovative solutions that Commissioning and Validation of Industrial Refrigeration / are contributing to the HVAC systems for Biomedical, Pharma, Food, Beverage and sustainable development Electronics Industries. We implement detailed site specific of its clients. Among the maintenance programs for all systems. BAF strive for Capacity Performance, Efficiency, Reliability, Safety technologies it has invested in and Ownership value. are cogeneration, solar power, www.baf.ie geothermal power, heat source capture from incineration and biomass. The company’s efforts in the last mentioned have largely occurred in Europe to date and include the development and network connection of France’s largest biomass energy generation plant in Cergy Pontoise, which provides heat and water for up to 70,000 people, and Pannonpower, one of Europe’s largest biomass cogeneration plants, which is based in Hungary. Dalkia offers state-of-the-art solutions to some of today’s most daunting issues. These include reconciling urban and economic development achieving collective comfort and protecting the environment. The company considers itself to be a key player in the control of energy demand, reduction of polluting emissions and greenhouse gases and the development of renewable energies.
Brian A Flynn Ltd
$8.9 Billion The company’s managed revenues in 2012
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The ways in which it assists in this global cause include its offering of optimised management systems to achieve substantial energy savings through better energy efficiency, its use of renewable energies that significantly reduce our dependence on fossil fuels and the volume of polluting emissions, and the implementation of new solutions such as cogeneration or the use of unavoidable energy.
Fluctuations in the price of fossil fuels, particularly oil and gas, have made the development of new solutions essential. Dalkia is an integrator of energy solutions for the environment by acting on several factors such as the introduction of alternate and renewable energies, optimisation of need management and changes to consumer behaviour. For town councils, these solutions are effectively deployed through community services, not
“Dalkia has diversified to become a provider of innovative solutions that are contributing to the sustainable development of its clients� 266 | BE Monthly
Dalkia Energy
only district heating and cooling networks, but also decentralised energy production and energy management in municipal buildings. The industrial sector on the other hand has been historically dependent on fossil fuels and is particularly concerned by the question of polluting emissions and now faces increasingly strict legal and environmental constraints. In this field, Dalkia offers high performance technical improvements to give better energy efficiency for the supply of utilities, as well as services to achieve optimised control of installations. Combining these services reduces energy consumption and achieves a two-fold economic and environmental benefit. So renewable energies are very much at the heart of Dalkia’s efforts, however it
does recognise that successfully limiting the environmental impact of the energy sector is about more than simply reducing fossil fuels, rather it is also about implementing a rigorous policy against all many of releases and emissions, including CO2, SOx, NOx, dust and other pollutants. It is for this reason that Dalkia’s Research and Development Department can today be found applying its skills to boosting efforts to develop and improve technologies that will ultimately assist in reducing the environmental impact of its clients’ installations. For more information about Dalkia Energy visit: www.dalkia.com
BE Monthly | 267
Water in a time of drought A Nasdaq listed company that provides the commodity that, after air, is the most essential to life: it uses the latest technologies in the interests of the populations that depend on it
written by: John O’Hanlon research by: Robert Hodgson
Consolidated Water
Consolidated Water
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esalination is an increasingly salt-water seepage and a deterioration of viable solution to providing potable water underground. All this amounts potable water in places with to a serious problem that is not going to limited fresh water on land but get any better without intervention. The plenty of access to coastal water best available option, well tried and tested – almost a dictionary definition of a small over the world, is desalination, though island. The islands of the Caribbean are not the cost of plants is still high enough to traditionally thought of as arid but water deter many governments. This is where Consolidated Water comes supplies in the region are under stress as populations increase, and climate change is into its own. Consolidated Water is a company not helping the situation. Intense rains were that designs, builds, operates seawater reported in some Caribbean areas in 2013, reverse osmosis (SWRO) desalination plants but that doesn’t always result in an increase and water distribution systems in several in fresh water supply. Heavy Caribbean countries, where rains mean there’s not enough the supply of drinking water time for water to soak into is scarce and the use SWRO the ground as it quickly runs is economically feasible. off. In addition, the cost of Consolidated Water has water treatment increases, a diverse customer base, Desalination plants in and many islands instead made up from government five countries shut their systems to prevent owned utilities, private bulk water customers and retail contamination. And climate change is causing concern. customers. It also provides engineering Parts of the Caribbean have experienced and management services through eight uncharacteristic drought. In August 2012, subsidiary and affiliate companies. some islands reported extremely dry There are two principal methods of weather, including Grenada and Anguilla. desalting: thermal distillation and membrane By July of 2013, according to the Caribbean separation. Due to the lower energy costs Institute for Meteorology & Hydrology those required for membrane separation methods, conditions had spread to Trinidad, Antigua, it is the preferred technology globally. St. Vincent and Barbados. Jamaica, Trinidad Specifically, reverse osmosis membrane and Barbados ordered rationing last year, separation is the mostly widely used technology with Barbados reducing pressure and used for brackish and seawater desalination. intermittently cutting off supply to some Reverse osmosis is a fluid separation process areas. The island also began to recycle water, in which the saline water is pressurised, with officials collecting treated wastewater and fresh water is separated from the saline by passing through a semi-permeable to operate airport toilets, for example. Overuse of wells elsewhere has caused membrane that rejects the salts. For some
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Suppliers of quality water pumps and accessories for residential, commercial and industrial applications. For more information please visit us at: www.blumenauerpumps.com
Consolidated Water grown a small Cayman Consolidated elit, sedfrom do eiusmod tempor small island nationsWater there incididunt ut labore dolore Islands based utility et business feature text but to go is no choice to here...... liberate Lorem water ipsum from dolor sit magna aliqua. Ut enim ad with revenues of less than $10 fresh theamet, sea. consectetur adipisicing elit, minim veniam, quisyear nostrud Larger countries and coastal million dollars per to a exercitation ullamco laboris communities have tempor or are sed do eiusmod regional water provider with incididunt utaugmenting labore et dolore nisi ut revenues aliquip ex in ea commodo considering their 2013 excess of magna aliqua. Ut enimwith ad consequat. aute irure potable water supply $63 million Duis dollars. Despite minim veniam, quisinnostrud desalinated water efforts a slight in the dolor in reduction reprehenderit in exercitation ullamco laboris to meet their populations total sales velit of bulk water last voluptate esse cillum nisi ut aliquip ex ea commodo growing needs and add a year, probably attributable to dolore eu fugiat nulla consequat. of Duis autethat irure component supply is some of its largest customers’ pariatur. Excepteur sint truly proof. conservation measures dolordrought in reprehenderit in This is a caption this is a caption water occaecat cupidatat non Foundedvelit originally 1973 consolidated profit voluptate esse in cillum proident, sunt gross in culpa qui officia deserunt mollit anim id est as a private waternulla utilitypariatur. in GrandExcepteur Cayman, increase by seven percent over the laborum. previous dolore eu fugiat sint occaecat cupidatat non Cayman proident, Islands sunt in year the largest island in the reaching million, to theipsum satisfaction feature text to$23.5 go here......Lorem dolor group, Consolidated Watermollit obtained McTaggart, whose reaction was: culpa qui officia deserunt animitsidfirst est of sit CEO amet,Rick consectetur adipisicing elit, sed do laborum. feature text to Cayman go here......Lorem eiusmod tempor incididunt ut labore et dolore public utility license in the Islands in “This demonstrates our expertise in operating ipsumOver dolorthe sit years amet,Consolidated consectetur adipisicing magna aliqua. Ut seawater enim ad minim veniam, quis 1979. Water has and maintaining desalination plants
BLUMENAUER PUMPS For over 35 years, The Blumenauer Corporation has been an industry leader, providing Florida, the Caribbean, South America, and beyond with quality water pumps and accessories for residential, commercial and industrial applications. The company Blumenauer and Associates was formed in 1973, supplying the mechanical contractors of Florida with a variety of pump and boiler products to meet the demands of the rapidly growing market. Blumenauer and Associates expanded with the Florida market and in 1980, not only changed its name to The Blumenauer Corporation, but also became manufacturer’s representative of the Grundfos Pumps Corporation for Florida
in addition to ac quiring other major product lines. Today, The Blumenauer Corporation is a leading distributor in the pump industry and represents manufacturers from around the world. The Blumenauer Corporation’s main warehouse facility and service center is located in Orlando and is stocked with a wide selection of pumps, valves and accessories to meet today’s pumping needs. The Blumenauer Corporation is also an authorized warranty service center for Grundfos Pumps in the southeastern United States. quiring other major product lines. E. info@pumpsetc.com www.blumenauerpumps.com
BE Monthly | 273
Seen
Contact us today and put your company in the spotlight!
vincent@bus-ex.com
Consolidated Water and our ability to maximise the production of our facilities CLYDEUNION Pumps, an SPX brand has been providing while controlling costs, pumps, engineering support and technical services to the which ultimately benefits our Consolidated Water Company (CWCO) for over 25 years. customers and shareholders.� Working together with CWCO’s team of professionals on Revenue comes from RO plants built, acquired and operated in the Caribbean, three sources, retail water we have expanded our knowledge and expertise in the desalination arena. We look forward to solving new operations, bulk water application challenges and further developing process operations and engineering innovations for CWCO in this most important industry. and management services. www.clydeunion.com The retail business produces and supplies water to endusers, including residential, commercial and government customers in the Cayman Islands under an exclusive retail license issued by the government to provide water in two of the most populated and rapidly developing areas. Bulk water is supplied to government-owned distributors in the Cayman Islands, Belize and the Bahamas and engineering services, accounting for around 20 percent of turnover, are sold to desalination projects, including designing and constructing desalination plants, and managing and operating desalination plants owned by other companies. In 2003, Consolidated Water completed several acquisitions which expanded its geographical coverage to the Bahamas, British Virgin Islands (BVI) and Barbados, and further expanded its business in the Cayman Islands, including a bulk water business, which serves the government-owned water utility outside of Consolidated Water’s exclusive retail franchise area in Grand Cayman. In 2006, it completed its large Blue Hills desalination plant in Nassau, Bahamas, completing an expansion of that plant in November 2012
CLYDEUNION Pumps
BE Monthly | 275
which brought the capacity up to 15 million gallons per day. The company was listed on the Nasdaq stock market in 1995 and today it operates 14 desalination plants of various capacities in five countries – the Cayman Islands, the Bahamas, Bermuda, the BVI and Belize. Consolidated Water installed its first SWRO plant in 1989 so now it has more than 25 years of design
insight and operational experience with this technology under its belt. From being purely a regional player, Consolidated Water is now expanding into other markets, with active projects in Bali, Indonesia, Mexico and Southern California. “Development activities involving our Rosarito desalination plant and conveyance pipeline project in northern Baja California, Mexico,
“Our ability to maximise the production of our facilities while controlling costs, ultimately benefits our customers and shareholders” 276 | BE Monthly
Consolidated Water
continue to progress,” observed McTaggart “Over the last three months, we have held technical and financial meetings with officials from the Government of Baja California and the public water utility in Tijuana, Mexico, Comisión Estatal de Servicios Públicos de Tijuana(CESPT), and we expect to reach certain important project milestones shortly. In addition, we continue to work closely with the Otay Water District in San Diego County, California, and expect to soon deploy additional water sampling and piloting programs in support of Otay’s efforts to obtain necessary regulatory approvals in California.” He believes that the northern Baja California and southern California region, which has suffered extreme drought conditions,
desperately needs new drinking water sources and that the Rosarito project provides an economical and practical solution to meet this need. An environmental assessment (EIA) has been submitted, and in October last year the company’s Mexican subsidiary NSC Agua completed the first phase of the pilot plant testing program for the 379 million litres per day desalination plant: it has now started on detailed designs for construction of the plant and a pipeline to deliver water across the US border. For more information about Consolidated Water visit: www.cwco.com
BE Monthly | 277
278 | BE Monthly
Camanchaca
Feeding the world from the ocean Camanchaca’s quality fish products have made it a leading player on the international stage
written by: Will Daynes research by: Abi Abagun
BE Monthly | 279
Camanchaca
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owadays, aquaculture is a major economic activity in Chile, due to its excellent geographic, climatic and water quality conditions. In fact, by 2006 the country had risen to become the second largest global producer of salmon, behind only Norway, while in the case of mussels it retains its crown as the largest global producer. Founded in 1965, initially with its focus being the fishing and processing of Langostino lobster and wild shrimp, Camanchaca underwent a significant change in 1980 when the company’s management pursued a strategy of diversification. This change saw the business expanding into aquaculture and subsequently Camanchaca has grown into an international entity with sales offices or brokerage representation in the US, Japan, Europe, and most recently in Mexico, China and South East Asia. Such is the importance of the distribution network that today Camanchaca exports its products to over 50 countries while aquaculture products account for over half Camanchaca’s revenues. Today, aquaculture activities include salmon, mussels, scallops and abalone, while the fishing activities are focused on jack mackerel, sardines, anchovies and langostinos. One of the world’s leading fishing, seafood and aquaculture companies, Camanchaca currently has annual sales of over $400 million. In Northern Chile the company possesses a fleet of 16 fishing vessels, with a total hold capacity of 6,000 cubic metres and a modern plant with a daily fish processing capacity of 2,500 tonnes. Meanwhile, in South-Central Chile it has a
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To Camanchaca, thank you for your trust in our products and services. Copec and Mobil.
More than a lubricant: A business tool If you think of oil as a line item, or simply as an operational cost, perhaps it’s time to think of it as something more: an opportunity. Mobil lubricants can smoothen the way to maximize productivity, reduce expenses and down time.
*Mobil is a trademark of Exxon Mobil Corporation or one of its subsidiaries. Other trademarks and product names used herein are the property of their respective owners.
Camanchaca fleet of eight offshore purseCOPEC seine fishing vessels with a Established in 1934, Copec has sold and distributed fuels total hold capacity of 10,000 for residential and industrial use in Chile. In 1959, Copec cubic metres, three boats for partnered with Exxon Mobil Corporation, one of the leading crustacean fishing, a canning lubricant companies in the world and owner of the Esso and plant with a daily production Mobil brands. It gave Copec the exclusive rights to produce capacity of 25,000 boxes, a Mobil lubricant products. This historical agreement has enabled Copec to consolidate the leadership of a market. fishmeal and fish oil plant, and Copec supports one of its most important customers, a Langostino processing plant. Camanchaca, a leader in the fishing industry by supplying In Petrohué, the company’s high quality products and services. salmon hatchery boasts www.copec.cl an annual salmon smolt capacity of 15 million fish, making it the largest facility of its kind in the world. Elsewhere, Camanchaca’s Río del Este hatchery focuses on breeders in their last stage before spawning, while its Playa Maqui centre specialises in developing trout. Together the Río de la Plata hatchery and the Playa Maqui centre produce an annual trout smolt capacity of five million fish. “The vision of Camanchaca is based on the concept of feeding the world from the ocean,” explains Corporate Planning and Marketing Director, Igal Neiman, “therefore it makes sense that we have been focusing our activities towards meeting human consumption demands.”
“aquaculture products account for over half of Camanchaca’s revenues” BE Monthly | 283
Between 80 and 90 percent of Camanchaca’s products are exported across the globe. “Approximately 90 percent of our salmon products are exported with our main markets being the US, Brazil, Japan and Mexico, while we are seeing increasingly high levels of demand coming from China and South East Asia,” Neiman continues. “In the case of frozen mussels, Europe is our top market, although demand in the US
and Asia continues to rise. Frozen mackerel is mainly sold in Africa, while at home in Chile the growing aquaculture trade means there is a big demand for our fish meal and fish oil products.” Being among the top tier of fishing and aquaculture companies in the world, it will come as no surprise to find that all of Camanchaca’s products come with the highest quality certifications. What you may not know
“The company was the first salmon producer on the planet to be awarded three star Best Aquaculture Practices (BAP) certification”
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Camanchaca
however is that the company people, local communities was the first salmon producer and the environment. on the planet to be awarded For starters the company three star Best Aquaculture employs around 3,000 people Practices (BAP) certification. during peak times, making The year Camanchaca Each star represents having it the largest employer in was founded a different part of one’s some of the localities in which it operates, providing value chain certified to the highest level. In the case of an economic lifeline to Camanchaca the three stars highlight the certain areas, from north to south farming of its salmon, the feeding of the of this long and narrow country. salmon and the work of its processing plant. When it comes to sustainability Camanchaca Camanchaca’s understanding of the value has established three macro-programs dubbed of responsibility also extends beyond its own “Efficient Camanchaca”, “Clean Camanchaca” facilities with the company having taken and “Friendly Camanchaca”, which was great strides in its lifetime to support local set up last year. “As part of the Friendly
1965
BE Monthly | 285
“In the last year the company has continued to make strong progress in expanding its international reach and securing its long term future�
286 | BE Monthly
Camanchaca Camanchaca program we host numerous events designed to allow mutually beneficial interaction with local communities and stakeholder, understanding their concerns and needs,” Neiman says. “One of the other things we do is partner with local schools, inviting classes to visit our facilities where we teach them about our business in the hope that it encourages them to one day work for us or within the wider industry. Meanwhile, when it comes to the environment we also bring together teams to work on cleaning local beaches and are constantly looking at ways to reduce energy and water consumption.” In the last year the company has continued to make strong progress in expanding its international reach and securing its long term future. One development saw it opening an office in China, in partnership with three other Chilean companies, along with the brand “New World Currents”, in order to serve the South East Asian market and increase the distribution of salmon across the region. Furthermore, last year saw Camanchaca become part of the Global Salmon Initiative, a select group of 15 salmon farmers from across the globe, representing 70 percent of the salmon produced worldwide, that are committed towards achieving sustainable growth for the industry.
“Our business expects a big growth in demand,” Neiman concludes. “As such, and bearing in mind the increase in demand for our products in Asia, it is important that we continue to make our production process as efficient as possible. In doing so we must maintain the sustainable growth of our industry. We recognise fully that you can’t take fish from the ocean without considering the renovation of this scarce resource, therefore as we grow as a business we will endeavour to ensure that we preserve the biomass of our oceans in the years and decades to come.” For more information about Camanchaca visit: www.camanchaca.cl
BE Monthly | 287
worldwide customers
The headoffice of the FRUTIGER-Group is located in Switzerland. An independent network of group companies and sales offices care for our worldwide customers. With the business lines Scrapedozers and Wheel Washing Systems, FRUTIGER leads the market
M
obyDick Wheel Washing Systems - We solve the problem of dirty roads and highways! Since 1985, MobyDick Wheel Washing Systems have set the worldwide standard for high performance cleaning, durability, and reliability. MobyDick systems are easy to install, use, and maintain. With over 3,000 installed systems we are proud of our worldwide leadership position. The varied range of MobyDick
“ With over 3,000 installed systems we are proud of our worldwide leadership position” 288 | be directory
Wheel Washing Systems are based on two model lines: Introduced in 1985, TailorMade (TM-Line) Wheel Washing systems are our quality line for effective wheel washing reliablity, durabiltiy and high customer satisfaction. MobyDick »Quick” drive-through and roller models are custom engineered in a variety of wash platform lengths, widths, and axle loading capacities. MobyDick TM-Line Wheel Washing Systems incorporate optional cleaning accessories and recycled water treatment technology to provide our customers with tailor made wheel wash track-out solutions. MobyDick’s ConLine (Construction Line) Wheel Washing Systems are our economic modular wheel wash systems for portable or permanent installations. Engineered for construction, rental, and
FRUTIGER Company AG
industrial sites, the ConLine’s unique modular drive-through design is rugged, flexible, and easy to assemble. The ConLine wheel wash systems provide our customers with MobyDick reliability at an economic price. Our wheel wash experts are committed to developing the most cost effective wheel wash installation to solve your environmental and stormwater problems caused by tire track-out of dirt and sediment onto public roads. For more information visit: www.mobydick.com Earthmoving with Scrapedozers The Scrapedozer is the ideal machine for earthmoving on hauling distances from 50 to 500 meters. On sites where the transport distance is too
long for bulldozers and too short for dumpers the cost effectiveness of the Scrapedozer is overwhelming. FRUTIGER currently offers three different Scraperdozer models. The SR T-10, SR T-12 and SR T-18. All three models compliment each other and allow economic operation in many different working conditions. For more information visit: www.scrapedozer.com FRUTIGER Company AG Stegackerstrasse 26 CH-8409 Winterthur T +41 (0)52 234 11 11 www.frutiger.ch
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