Page 1

BUSINESS EXCELLENCE July 2014 | www.bus-ex.com

MONTHLY EDITION

How is your field service operation really performing? How to combat stress at work Petrotrin Basil Read

Royal Arctic Line

Greenland’s

lifeline Royal Arctic Line has become a massively important lifeline for Greenland and the surrounding region over the last two decades


IT’S TIME TO FOCUS ON YOU

Commercial Publishing Services Introducing our new commercial publishing services team Would you like to have your very own corporate magazine or newsletter? We can help you with your publishing needs from CSR, Sustainability or annual investor reports to your employee or shareholder handbooks. Whatever you need, we would love to help

[ Click here to find out more ] or email [ mday@bus-ex.com ]


business excellence

the team business John O’Hanlon Editor johanlon@bus-ex.com

coming soon

Matt Johnson Art Director mjohnson@bus-ex.com

Zambia Special report

Sharon Rooke Administration & Operations srooke@bus-ex.com

<<< more info

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

contributors John Cameron Trimble Field Service Management

Madagascar Special report more info >>>

Daniel Thomas Danz Spas Chris Meredith Officebroker.com Marielena Sabatier Inspiring Potential

subscriptions & enquires info@bus-ex.com

Jacquard House, Queen Street, Norwich, NR2 4SX. England Registered in the UK: 9037437 The content of this magazine is copyright of Hill Top Business Media Ltd. Redistribution or reproduction of any content is prohibited. Š Copyright 2014 Hill Top Business Media Ltd.

Involved To be a part of our authoritative reports promoting emerging markets and showcasing their investment opportunities - contact us today

aturner@bus-ex.com

HINT: For the best viewing experience, click the fullscreen icon here


contents

8 operations

How is your field service operation really performing? Managers have access to more performance data than ever before but simply donâ&#x20AC;&#x2122;t know how to use it to drive operational efficiency.

12 operations

How to combat stress at work

Marielena Sabatier, Executive Coach and CEO of Inspiring Potential explains her five tips on how to deal with stress and depression in the work place.

4

[ July 2014 ] BE monthly


Be monthly [ July 2014 ]

14 top tep

Tips on how to apply for a job

We speak to Daniel Thomas, Founder of luxury hot tub company Danz, as he gives his top ten tips for helping you stand out from the crowd when applying for a job.

16 strategy

The seven deadly meeting sins The seven worst examples of â&#x20AC;&#x2DC;meeting sinsâ&#x20AC;&#x2122; and advice on how to avoid them.

BE monthly [ July 2014 ]

5


contents

Business of the month

20 Royal Arctic Line

Greenlandâ&#x20AC;&#x2122;s lifeline Boasting more than 20 years of internal experience of sailing in Arctic waters, Royal Arctic Line and its employees have become a massively important lifeline for Greenland and the surrounding region over the last two decades.

mining & minerals

28

6

PPC Ltd

Sustainability the key for future development Operating in some of Africaâ&#x20AC;&#x2122;s most important developing nations, PPC Ltd is well on its way to becoming a leading emerging-market business, and a responsible, sustainable one at that.

[ July 2014 ] BE monthly

38

African Minerals

A year to remember Head of Corporate Development and Investor Relations, Mike Jones, discusses the incredible progress made by African Minerals during 2013 and why 2014 is shaping up to be even better.


Be monthly [ July 2014 ] 48

80

Praxis

Aggregating service Praxis is already known as a reliable partner for crushing services: it has grown through excellence in the way it manages its assets to deliver services to major customers.

infrastructure

oil & gas

56

80

No-Spill™ Systems

Inspired innovation No-Spill™ Systems’ commitment is to provide fluid draining solutions that provide high quality and eco-friendly results, and measures its success on its ability to exceed its customers’ expectations.

62

Petrotrin

Investing for increased production As the main source of energy for Trinidad and Tobago as well as its principal foreign exchange earner Petrotrin is investing strategically in upping its offshore and onshore resources of crude.

62

Basil Read

Synonymous with excellence Basil Read has successfully spread its wings in order to bring its reputation for excellence and professionalism to many of Africa’s most important markets. healthcare

96

Ixoreal Biomed Pvt

Emerging botanical ingredient After 14 years of development. The hard work and dedication of Ixoreal’s employees have helped make KSM66® the best product of its kind on the world market today. food & drink

104 Golden Veroleum Liberia (GVL)

Liberia’s road out of poverty GVL is developing a sustainable palm oil industry in West Africa, at once meeting growing global demand and lifting a nation out of poverty.

BE monthly [ July 2014 ]

7


8

[ July 2014 ] BE Monthly


How is your field service operation really performing? Managers have access to more performance data than ever before but simply donâ&#x20AC;&#x2122;t know how to use it to drive operational efficiency Words by

John Cameron

BE Monthly [ July 2014 ]

9


A

high-performance culture is the heartbeat of any successful organisation however managing business performance levels effectively can be challenging. As the business adage goes: “You can’t manage what you can’t measure” and this has never been truer – especially when it comes to the performance of field service organisations. A field service operation is extremely dynamic and often unpredictable. Each day, managers are faced with complex issues which require fast action. However lack of real-time visibility into what is actually happening out in the field can result in managers making poor decisions; directly impacting the performance level of their mobile workforce. In order to develop new strategies which will improve operational decisionmaking and drive future performance, field service managers must begin to utilise instant and accurate information about key trends occurring in the field. Real-time data about why a service window wasn’t met, how many planned jobs were left incomplete, duration of tasks and which technicians are performing well, can all be used to drive service performance levels. By using in-depth insight, managers are able to effectively transform the way work is planned, allocated, managed, reported and evaluated. Field service managers have access to more data than ever before. But are they actually using it effectively to measure

service levels so they can improve operational performance? The simple answer is no. Often field service managers view big data as simply too big or too fast to manage and analyse. They have large quantities of data but simply don’t know what it means or how to use it to help manage performance. Fortunately, advancements in performance management analytics technology are taking the complexity out of big data analysis. By providing greater visibility and enhanced analytics capabilities, the technology helps field service managers monitor the productivity of their operations while at the same time analysing key trends in order to optimise the way they operate. Based on actual location data, technology can generate and customise digestible reports that showcase the key measures including quality of service, statistics for individual workers, actual tasks completed against the total time of the working day, actual against estimated task duration, total tasks completed, total fuel usage and distance travelled. By adopting performance management analytics technology, the field service manager is able to quickly identify what is preventing their workforce from completing more jobs. Managers can look at regions, teams and even individual workers by job type and performance to gain insight into how to improve the utilisation and productivity of their staff.

“By adopting performance management analytics technology, the field service manager is able to quickly identify what is preventing their workforce from completing more jobs”

10

[ July 2014 ] BE Monthly


operations

â&#x20AC;&#x153;Managers can collect, analyse and report operational performance based on data they can trustâ&#x20AC;?

Aberdeen Group, a leading analyst firm, has found that bestin-class companies were more than 35 percent more likely to use workforce management solutions such as performance management tools to optimise resources and workforce processes. Aberdeen Group says laggards need to act now and start to automate the management of their workforce in order to catch up with the efficiency and enhanced response times of best-in-class companies. Driving productivity and performance has been on the top of boardroom agendas for years and this is still certainly the case in the field service industry. A recent survey by the Service Council, a research and advisory company, reaffirms this fact with the study finding performance management and visibility continue to top the list of key business concerns. Reassuringly, developments in technology have meant that businesses now have a way of addressing these concerns directly. Managers can collect, analyse and report operational performance based on data they can trust and generate real value from the information to make educated decisions that positively impact their businesses bottom line. This increased insight also means that not only are field service managers

provided with the ability to constantly learn from day-to-day experiences, but all the relevant sta ke h old e r s a cross different business units have the salient information they need to manage the daily performance of the organisation. Such performance analysis can also help feed into strategic business planning on targets, budgets and resourcing. Knowing what is happening in the field and having the ability to measure its effectiveness is crucial to delivering higher levels of service excellence. As a result, business leaders need to start exploring new and cost-effective ways to manage and optimise the performance of their workforce. Investment in technology is the first logical step. Technology has the power to place the right information in the right hands to ensure the right decisions are made which will ultimately foster a high-performance culture that guarantees short- and long-term business success.

About the author

John Cameron John Cameron is General Manager of Trimble Field Service Management. www.trimble.com

BE Monthly [ July 2014 ]

11


How to combat stress at work Five tips on how to deal with stress and depression in the work place Words by

Marielena Sabatier


operations

A

recent survey of 1,200 conducted by Depression Alliance found that a third of people in the UK struggle to cope at work because of depression, stress or burn out, with 83 percent of those affected experiencing isolation or loneliness as a result. It is not necessarily a big workload that causes depression at work but an unfair boss and an unfair work environment are what can really have an effect on employees and really bring them down. Below are a few tips on how to combat stress and depression at work: 1) Accept stress Denial of stress will only worsen the symptoms. People need to be honest with themselves that they are in a situation that needs to change. 2) Find the root cause of stress This is not necessarily as easy as it sounds but good coaching can usually get to the heart of the matter fairly quickly. People need to spend time contemplating their feelings understand the sources of stress and talking to a friend or business coach can help provide clarity and focus. 3) Identify what needs to happen to change the cause of the stress important not to place too much emphasis on reducing the symptoms without a c k n owl e d g i n g th e underlying causes . Changing the cause might include looking for a more suitable job. Other examples of changing the cause might include arranging for some work to be delegated

to others. It could also include improving organisational skills so that things donâ&#x20AC;&#x2122;t get so out of control in the future. 4) Focus on the solution not the problem Instead of dwelling on the problem, people need to ask themselves how they would ideally be feeling or what their ideal desired outcome is. Too often people get

â&#x20AC;&#x153;people get stuck thinking about a problem without considering an alternative or focusing on the end result they want to achieveâ&#x20AC;?

stuck thinking about a problem without considering an alternative or focusing on the end result they want to achieve. 5) Socialise When stressed or depressed, people tend to overlook their hobbies, friends and interests but spending time with family and friends can be the best tonic. Exercise also helps combat stress and depression by releasing endorphins that create a natural high and it can help replace feelings of tension with optimism and calm.

About the author

Marielena Sabatier Executive Coach and CEO of Inspiring Potential works with businesses and executives to develop and boost their confidence to improve their performance at work. www.inspiring-potential.com

BE Monthly [ July 2014 ]

13


Top ten tips:

How to apply for a job Words by

Daniel Thomas

W

ith up to a hundred people applying for each job he advertises, entrepreneur Daniel Thomas sees the same CV and cover letter mistakes repeated over and over again. For Daniel, who set up his hot tub business DanzSpas eight years ago, it’s all about the cover letter. He never looks at a CV until he has shortlisted ten applicants and believes you can convey more in this one letter than you can in a two page CV. He wants to see that an applicant cares about the business they’re applying to and the job they’re applying for. Daniel Thomas, founder of DanzSpas and YourSkip.com said: ‘The one thing you have to bear in mind when you’re applying for a job is that you will be one of many. There may well be others better qualified or with more experience than you, so you really do have to stand out. “The biggest mistake you can make is sending out a standard letter that you mail out to all companies. A cover letter needs to be personalised, it needs to show that you understand the business and that you’re more than capable of doing the role you’re applying for. “If the cover letter is right, then this puts you in a strong position. Get it wrong and your application could be consigned to the ‘no’ pile pretty swiftly.” H e re a re Daniel’s ten tips for helping you stand out from the crowd when you apply for a job.


1. Unless you’re applying to a large multi national, no one has the time to sit down and read your application properly. We usually get at least 100 applicants for any job we put out. So, your application needs to help me quickly work out whether or not I should take your application seriously.    2. I reject all CVs without a cover letter. I also reject all CVs where the cover letter isn’t written specifically for my company. If the applicant can’t be bothered to research and address the company correctly, then they’re clearly going through the motions of applying for every job that comes up. As an employer I want potential employees to be interested in the business, that way they’ll have the will and drive to succeed.   3. Cover letters are more important than CVs.  We make a shortlist of about ten people all based on covers letters. We won’t even look at CVs until that stage.   4. Within the cover letter we look for signs of passion and enthusiasm.  For us that means: • An attempt to show how you specifically meet the criteria for the role we have set out in the job description. This way we know the applicant has read the job description and actually wants the job as opposed to just sending CVs everywhere. As an example, last year we had someone apply for a financial administrator role. The opening sentence was “I feel my degree and experience in Engineering makes me a strong candidate for your position.” Clearly this candidate hadn’t read the job description. • An attempt to show you’ve researched the company.

5. Ideally, I like to see bullet points used in the cover letter. Bullets help me see what I need to see faster.   6. Make your point within half an A4 page, one page maximum. No potential employer has the time to read a cover letter three pages long.   7. You should also use your cover letter to show your character. If your CV describes you as a super ambitious, then an employer should sense that when they read your cover letter.   8. Try to be creative in your application if the role demands some creative thinking. Last year we advertised for a web marketing/ video person. The application was a link to a YouTube video the person made for us.    9. When it comes to your CV, they need to be presentable but don’t rely on them alone to secure you the job.   10. Unless you went to Oxbridge, then there really isn’t a need to dedicate numerous paragraphs to your time at University. The only exception is if your degree is relevant to the job. However, bear in mind that in nine times out of ten it isn’t. About the author

Daniel Thomas Daniel has led his company to the magic £1m annual turnover mark. www.danz.co.uk

BE Monthly [ July 2014 ]

15


The seven deadly meeting sins The seven worst examples of â&#x20AC;&#x2DC;meeting sinsâ&#x20AC;&#x2122; and advice on how to avoid them Words by

Chris Meredith

BE Monthly [ July 2014 ]

17


M

eetings may be an essential part of the business world, however there are those among us who have no idea how to behave in these situations. We’ve all been in meetings where someone has made us see red either by texting on their phone, not contributing or even not shutting up. 1) Time-wasting Time is an extremely valuable commodity, so meetings that go on much longer than they need to are not only costing you money, but also disrespecting everyone’s time. The main causes of this sin are ‘a’ having no agenda, and ‘b’ organising an unnecessary meeting. The solution however is a very simple one. Set yourself a time limit for each meeting and say at the beginning ‘this meeting will finish at x’. Always have an agenda and put time limits by each item. And finally, if you don’t need to have a meeting and you’re doing it just for the sake of talking, don’t organise one.    2) Texting/Checking emails This sin is very simple. If you are looking at your phone you are not concentrating on the meeting in hand. Often the most productive meetings are when you are away from your desk and completely disconnected from your dayto-day workload.

“if you don’t need to have a meeting and you’re doing it just for the sake of talking, don’t organise one”

18

[ July 2014 ] BE Monthly

Simple rule, all telephones should be banned from meetings. 3) Motor mouths Everyone can probably name someone in their office who likes the sound of their own voice. If you can’t then it’s most likely you. However, when these people get into a meeting situation, they can not only alienate everyone else but also stifle the productivity of the meeting. Sometimes whoever is chairing the meeting has to be blunt and cut in to shut this person up. A less confrontational manner however would be to give


strategy

everyone fair warning at the start that if they go on, they will be shut up. 4) Doom and Gloom Just like the Dementors in Harry Potter, there are those people who can suck the joy and happiness out of every situation. They will try to find fault with anything that is suggested and often their negative energy will dry up even the most bountiful well of ideas. A good way to go about this would be by creating a series of meeting rules which include banning phrases like ‘just being devil’s advocate’ and instead treating every idea as a good idea.   5) Poor chairing/ over talking A bad chair will result in a bad meeting, fact. They are the facilitator for discussion and the arbiter of ideas so if they cannot command the meeting effectively then it will be doomed to fail. Chairing however, isn’t for everyone and that is absolutely fine. If you know you have to facilitate a meeting and you’re not 100% comfortable doing it find someone else who is. Th e re ’s no sh a m e in acknowledging a weakness and delegating the task to someone who is more capable.   6) Late arrivals Just as overrunning meetings disrespect other people’s time, so do latecomers. You could just about get away with arguing that meetings that take too long do have an element of productivity. However, waiting for people to turn up is just dead time. Many companies have now adopted a zero tolerance approach to lateness

“A meeting that is just a talking shop and has set no clear defined actions has failed”

with some even fining people for being late to a meeting. Whilst that maybe an extreme example it is important to set an example that lateness won’t be tolerated.     7) No actions ‘What is the point of this meeting?’ should be on the minds of everyone before you go in that door. A meeting that is just a talking shop and has set no clear defined actions has failed. At the end of every meeting you should spend five minutes evaluating what was discussed. Outline what you wanted to achieve and list through the actions that have been delegated.  Therefore the minutes of the meeting need not necessarily reflect who said what but who is going to do what and by when.

About the author Founded in 2001 by Jim Venables & Andy Haywood, the officebroker.com story began after the one time recruitment specialists switched from filling job vacancies to empty offices. Drawing upon their experience of working closely with clients and satisfying requirements, officebroker.com soon began to offer a unique service to businesses seeking office space. www.officebroker.com

BE Monthly [ July 2014 ]

19


Photo: Lars SvankjĂŚr

Royal Ar

Greenland

Boasting more than 20 years of internal experience employees have become a massively important lifelin liner services with servicing businesses within words by

20

[ July 2014 ] BE Monthly

Will Daynes


rctic Line

dâ&#x20AC;&#x2122;s lifeline

of sailing in Arctic waters, Royal Arctic Line and its ne for Greenland. The Company combines its regular Greenlandâ&#x20AC;&#x2122;s emerging mineral and oil sectors research by

Vincent Kielty BE Monthly [ July 2014 ]

21


Photo: Dan Boman

Operating in remote areas with little or no infrastructure comes with establishing mines in Greenland

22

[ July 2014 ] BE Monthly


Royal Arctic Line

or more than 20 years (since 1993 to be exact) Royal Arctic Line has been a premier provider of specialist services and skills to customers in Greenland and the wider Arctic region. Wholly owned by the Government of Greenland, Royal Arctic Line and its vessels hold an exclusive concession for the transportation of general supplies by sea to and from Greenland, and between the various Greenlandic towns and settlements. Through its subsidiary, Royal Arctic Bygdeservice, goods are also carried to all the settlements, while Royal Arctic Havneservice handles operations in the 13 biggest ports and harbours in Greenland, and at the same time represents the port authority on behalf of the state in these ports and harbours. Forwarding activities such as air freight, combined air/sea freight and consolidated are undertaken by Royal Arctic Logistics. Furthermore, the group is also a major supporting player within Greenland’s oil and mineral exploration sectors with activities in these fields being undertaken by Arctic Base Supply, a business co-owned by Royal Arctic Line and Norwegian Norsea Group. A quick glance over the aforementioned services really does highlight why the company has come to be seen as one of Greenland’s most important lifelines. Greenland, and indeed the other countries that exist within or between the Arctic and Atlantic Oceans, of course comes with its own unique environment and climate, and thus its own unique challenges. It stands to reason therefore that not just any company, shipping or otherwise, is suited for servicing the country. Rather it takes those with market leading experience, knowledge and capabilities to earn business in this remote part of the world. “What you have with much of Greenland is an environment typified by difficult weather and geological conditions, and little or nothing in the way existing infrastructure,” explains Royal Arctic Line’s Commercial

F

BE Monthly [ July 2014 ]

23


Director, Niels Clemensen. “What we have as a business is a large degree of competency, experience and understanding of what it is like to operate within the Arctic. Alongside this we have the physical assets of a fleet of vessels and equipment specifically designed with the Arctic environment in mind.” The fleet that Clemensen speaks of consists of ten ships, each meticulously designed to overcome the challenges that operating in the Arctic possesses. The company’s biggest ocean-going vessels and feeder ships are

24

[ July 2014 ] BE Monthly

of the highest Baltic ice classification and have been specially-built with double hulls and high freeboard so they can sail in Arctic waters. All the ships are fitted with cranes and are supplemented with the shipping company’s barges. “Our vessels are designed especially for carrying out trade to and from Greenland, and for sailing on the North Atlantic, which is of course a very rough sea,” Clemensen continues. “All equipment on board is designed to operate down to -30 degrees,


Royal Arctic Line

Royal Arctic Line’s fleet is designed for Arctic conditions and able to operate just about everywhere in Greenland

“Our vessels are designed especially for carrying out trade to and from Greenland, and for sailing on the North Atlantic”

which is the standard that we work to given that we understand the demands that can be placed on this equipment, especially during the Arctic winter. It is vital to remember at all times also that when working in this part of the world there is almost never a time when there isn’t a huge distance between yourself and the nearest spare part or support vessel. With that in mind the utmost attention to detail goes into each operation our vessels conduct.” Arriving at Greenland in the search for minerals presents the industry with the

BE Monthly [ July 2014 ]

25


challenge of overcoming a remote landscape lacking in infrastructure. Fortunately for these companies Royal Arctic Line and its subsidiaries are more than used to operating under such demanding conditions. The company prides itself on the wide range of logistical and transportation services it can offer its customers. Particular solutions of note include the transport of fuel, machineries and special cargo, regular connections to the US and Canada, consolidation of cargo before shipment, monitoring and surveying,

ice management, forwarding services and preparation for sling operation from barges. To date Royal Arctic Line has been a major provider of logistics support during the construction and operation of several notable mines such as the Olivine Mine and Nalunaq Gold Mine in Greenland. “The services and equipment we have available to the mineral sector are varied enough to support all stages of mineral development, be it the construction, production or operational stage of a mine’s

“The services and equipment we have available to the mineral sector are varied enough to support all stages of mineral development”

Delivering supplies to Antarctic bases includes operating directly on the ice cap

26

[ July 2014 ] BE Monthly


Photo: Lars Svankjær

Royal Arctic Line

Ice management is crucial when operating in Arctic waters

life,” Clemensen enthuses. “The most important thing to remember is that all of these mines are established in the most remote of locations, miles from what few established towns there are and with practically no infrastructure in place to support their growth. What makes us unique is that we are able to reach such locations, places that other shipping companies cannot, and we have the built in knowledge, systems and capabilities required to immediate begin supporting customers in the mineral industry regardless of what stage of development they find themselves.” Royal Arctic Line has also taken the initiative in examining other business opportunities, both in Greenland and further afield. “We also recognise the need to target specific niche markets that are best suited to benefit from our fleet and our unique

capabilities,” Clemensen highlights. “So, for example, we have spent the last five years providing supply services to Antarctic bases belonging to the likes of Belgium, Germany and the UK, to name a few countries, while one of our vessels is regularly leased out to the Norwegian Polar Institute to supply their base. These are the kinds of niche, yet hugely important, jobs that our vessels can undertake and that those belonging to other container lines are unable to.”

Royal Arctic Line

+299 34 91 00 kundeservice@ral.gl www.royalarcticline.com

BE Monthly [ July 2014 ]

27


PPC

Sustainabili for future d

Operating in some of Africaâ&#x20AC;&#x2122;s most important d becoming a leading emerging-market busines words by

28

[ July 2014 ] BE Monthly

Tshilidzi Dlamin


C Ltd

ity - the key development

developing nations, PPC Ltd is well on its way to ss, and a responsible, sustainable one at that

ni

edited by

Will Daynes BE Monthly [ July 2014 ]

29


ncreased concern and focus on global warming has no doubt made it necessary for countries, industries and businesses to look for growth and development opportunities in a more sustainable manner. One particular example would be the global cement industry which has historically suffered from having a high carbon footprint due to the energy requirements and chemical process involved in cement manufacturing technology. PPC Ltd, a pioneer in the southern African cement industry, remains committed to the integration of environmental and sustainability issues into its business strategy. The cement supplier recognises that the impacts of climate change, management of water resources and energy security are among the greatest challenges facing society today. “PPC cannot ignore the need for sustainable development as we believe we have a responsibility towards future generations. We aim to minimise the impact of our environmental footprint and create more positive outcomes in the long term,” explains Tshilidzi Dlamini, Group Sustainability and Environmental Manager for PPC. “The strategic steps we have taken in reducing our environmental footprint, as an integral part of our sustainable development measures, will allow PPC to achieve its long term goals and targets.” Sustainability has been a big part of PPC’s

I

“PPC cannot ignore the need for sustainable development as we believe we have a responsibility towards future generations”

30

[ July 2014 ] BE Monthly


PPC Ltd

“When it comes to water, while we are not a major consumer, we can’t ignore its importance, given the scarcity of water in this country” agenda for many years, and all of their cement plants were ISO 14001 certified in 2001. The company also has a stringent environmental policy, which received a stamp of approval by the then CEO, in 1997, and is reviewed on an annual basis. In October 2011 PPC set out to improve electrical efficiency by ten percent, thermal efficiency by five percent and ultimately reducing its specific carbon footprint by five percent by 2017. Coupled with this, PPC aims to source ten percent of its electrical energy from renewable and/or alternative energy sources. PPC has also carried out significant work on its procurement policies, which now encourage the use of sustainable material and resources. The business is engaging its top six suppliers by spend to assess their sustainability in 2014 and the business aims to expand this further to other suppliers. “When it comes to water, while we are not a major consumer, we can’t ignore its importance, given the scarcity of water in this country,” Dlamini continues. “As such we are working on improving water monitoring systems to understand the areas of potential saving while also continuing to make huge savings through various upgrades.” PPC is of the opinion that changing legislation is one of the biggest stumbling blocks for corporates to increase its drive for sustainable development. “The regulatory

BE Monthly [ July 2014 ]

31


Tshilidzi Dlamini, Group Sustainability and Environmental Manager

process is prohibitive due to the increasing number of licences that one needs to hold to operate business and the processes associated with acquiring this licences. This almost hinders a company’s ability to innovate as its focus turns to licensing,” Dlamini states. The relationship between environmental requirements and production demands has also, at times, made it challenging to address environmental requirements such as upgrading plants to meet certain standards. Over the last couple of years, PPC has received the ISO 14001 certification for all of its cement operations in South Africa. “These systems assisted the business in being able to manage its legal requirements, while also being able to identify key aspects and impacts associated with our operation,” Dlamini says. “As this requires the commitment from PPC’s top management, it created awareness and also availability of resources to address environmental impacts.” Another major achievement for PPC comes in the form of a four star rating for its new headquarters by The Green Building Council of South Africa (GBCSA), an independent, nonprofit company formed in 2007 to lead the greening of South Africa’s built environment. Located in the middle of the hustle and bustle of the Northern Johannesburg business centre, Eastgate 20 on Katherine Street in Sandton, South Africa now houses one of the largest cement suppliers in southern Africa. The new building is strategically designed to efficiently reduce energy and water. The Green Star

“The regulatory process is prohibitive due to the increasing number of licences that one needs... this almost hinders a company’s ability to innovate as its focus turns to licensing”

32

[ July 2014 ] BE Monthly


PPC Ltd

rating system from the GBCSA controlled so that only as much Did you know? cooling is provided as needed, was designed to provide the and the motors do not just stop commercial property industry and start.” with an objective measurement 2001 Eastgate 20 is also expected for green buildings and to create The year that all to make a significant reduction and reward environmental of PPC’s cement in the usage of potable water leadership in the property plants became ISO through the installation of industry. A four-star rating 14001 certified water efficient fittings for taps, recognises a building for its urinals and toilets. Furthermore, “Best Practices”. 40% Eastgate 20 has also increased To consume less energy, The amount of the quality of the water in the Eastgate 20 has been designed revenue PPC hopes adjacent environments. PPC to utilise efficient lighting which to generate from has a storm water treatment is only activated when an area outside of southern site, adjacent to Eastgate 20, is occupied. Further to this, the Africa by 2017 where it treats all the water design has enabled the building from its premises and that of the to take advantage of natural neighbouring sites to ensure that light, reducing the building’s it is clean before it flows into the river. electricity demands during office hours. “Normally during a storm event, rainwater “We have also made considerable progress runs off hard surfaces into storm water drains through our new air conditioning system,” and is directed into the nearest river to avert Dlamini states. “It uses inverter technology for flooding,” Dlamini highlights. “In built up the compressors, meaning that the speed is

BE Monthly [ July 2014 ]

33


areas, the abnormally amplified increase in water flow during storm events disrupts the natural balance of the ecosystem and the river’s ability to function as part of a healthy ecosystem.” PPC has further boosted its green credentials by investing in the wind energy sector. Construction of the Grassridge Wind Energy Facility in Nelson Mandela Bay officially began with project representatives from the Department of Energy (DoE), InnoWind (Pty) Ltd, PPC Ltd and community representatives from Motherwell turning the first soil of the R 1.2 billion wind farm.

The Grassridge wind farm forms part of the DoE’s Renewable Energy Independent Power Producer Procurement Programme and is being established at PPC’s Grassridge Quarry. It is one of the first renewable energy projects to be developed within an operating quarry in South Africa. InnoWind, a local wind energy developer owned by EDF Energies Nouvelles has developed the project. The wind farm is owned by Grassridge Wind Power, a project company which comprises InnoWind, the Industrial Development Corporation and the Grassridge Winds of Change Community Trust. This

“PPC is committed to becoming a more sustainable company. This project is the first step in procuring power from renewable sources”

34

[ July 2014 ] BE Monthly


PPC Ltd

facility will consist of 20 Vestas V-112 3MW wind turbines, with an installed capacity of 61.5 MW, delivering electricity equivalent to the annual consumption of approximately 40,000 households. The development is the first phase of possible future wind farm expansions in its vicinity. “We have come a long way in bringing this project to fruition, and are all very excited to reach this milestone that is the start the construction of InnoWind’s first wind farm in South Africa,” said Kevin Minkoff, Project Manager at InnoWind. According to Egmont Ottermann, Group Energy Manager at PPC Ltd, the wind farm forms part of the cement company’s longterm rehabilitation plans for the mine. “PPC is committed to becoming a more sustainable company. This project is the first step in procuring power from renewable sources.” Indeed, PPC and InnoWind are today in

the midst of discussions for a second phase, 24 MW wind farm under a bilateral power purchase agreement. When commissioned, this farm will supply ten percent of PPC’s electrical energy requirements in South Africa. In a report by the European Cement Association, a safe environment is essential for protecting people from changing weather conditions, such as long periods of drought and a significant level of rainfall. “Concrete can be used to provide comprehensive fire and flood protection including protection of people, animals, goods, property and the environment. It also plays a key role in guaranteeing a safe, secure supply of drinking water and power,” the report said. The report indicates that the high thermal mass of concrete enhanced thermal comfort by minimising or avoiding overheating during heat waves especially when combined with natural ventilation and appropriate building

BE Monthly [ July 2014 ]

35


“Buildings are getting smarter by utilising wind and minimising water usage. Buildings are also much more adaptable to harsh weather conditions or events” architecture. This also reduces the need for air conditioning, thereby reducing carbon dioxide emissions from energy consumption. “Cement is incredibly important in addressing the issues posed by climate change,” Dlamini enthuses. “Buildings are getting smarter by utilising wind and

36

[ July 2014 ] BE Monthly

minimising water usage. Buildings are also much more adaptable to harsh weather conditions or events. We encourage all of our clients to keep that in mind in the design process of their new structures and urge them all to apply sustainable measures during the construction process.”


PPC Ltd

Apart from their operations in their historic territories in southern Africa, the cement supplier has undertaken an African expansion strategy which aims to see PPC generate 40 percent of its revenue from outside of southern Africa by 2017. To achieve this, PPC has been increasing its footprint in Africa. It increased its stake to 30 percent in Ethiopian company Habesha Cement with construction of a 1.4mtpa plant due to start this year. It also acquired a 51 percent stake in CIMERWA of Rwanda, with construction of a 600,000tpa plant currently under way. Meanwhile, the construction of its 1.0mtpa plant in Democratic Republic of Congo is expected to start this year and PPC is also

currently concluding a feasibility study for the construction of a 700,000tpa milling plant to service northern Zimbabwe and Mozambique. PPC is determined to align its sustainability strategies to all of its new operations on the African continent and in committed to making sure that all its operations adhere to international best practices.

PPC Ltd

+27 (0)11 386 9000 contactus@ppc.co.za www.ppc.co.za

BE Monthly [ July 2014 ]

37


African M

A year to r

Head of Corporate Development and Investor progress made by African Minerals during 2013 words by

38

[ July 2014 ] BE Monthly

Will Daynes


Minerals

remember

Relations, Mike Jones, discusses the incredible 3 and why 2014 is shaping up to be even better research by

Jeff Abbott BE Monthly [ July 2014 ]

39


Laying the tracks for the new locomotives

40

[ July 2014 ] BE Monthly


African Minerals

o say that 2013 was a good year for African Minerals is, in truth, something of a major understatement. While the company itself may be more modest about such things the reality is that this is the company that last year was responsible for completing Africa’s fastest major mine development. The mine in question is the Tonkolili iron ore mine in Sierra Leone, and the work of the company in 2013 saw this world class asset commence with the ramp up to 20Mtpa across its fully integrated, exclusive use 200 kilometre mine, rail, port and marine infrastructure network. Active in Sierra Leone since 1996, African Minerals shifted from its initial search for alluvial diamonds to iron ore following the discovery of the Tonkolili deposit. Tonkolili

T

towards African Minerals establishing itself as the largest contributor towards Sierra Leone’s GDP. “Sierra Leone has been heralded as being the country with the second fastest growing economy in the world in 2013, and as the biggest contributor towards GDP we have become an important feature in the country’s emergent industrial landscape,” Jones continues. “Likewise, with its stable environment, clear mining legislation, our strong relationship with the government and with our resource set where it is, the country is equally important to us. That creates a mutual respect and a joint purpose, driving a healthy symbiotic relationship between both parties.” As 2013’s results show, the business model that African Minerals has established for itself, one that encapsulates the ethos of

“Sierra Leone has been heralded as being the country with the second fastest growing economy in the world in 2013” today has a JORC compliant ore resource of 12.8 billion tonnes, which extends over a combined strike length of 30 kilometres, and includes a substantial Direct Shipping Ore and Saprolite mineral resource overlying one of the world’s largest magnetite ore bodies. “The last 12-18 months has very much been characterised by the completion of construction of Phase I at Tonkolili and its subsequent de-risking,” states Mike Jones, Head of Corporate Development and Investor Relations. “We have also spent the last year making the operating parameters of the project more consistent in order to maintain the desired 20 Mtpa run rate.” In total, 2013 saw the company produce approximately 13.1 Mt of saleable iron ore and export 12.1 Mt. These figures contributed

“don’t put off until tomorrow what you can do today” has proven hugely successful. “In order to get a perspective on how we put this model into practice you need only to look at the rapid development of the Tonkolili deposit throughout our time operating here,” Jones explains. “Initially we set up under the pretence of this being an eight million tonne per year partial road haulage operation. Over a relatively short space of time, during which we were developing the asset and securing mining and infrastructure licences, the whole approach evolved to make it a ten million tonnes on rail operation, then twelve, 15 and ultimately 20 million tonnes per year.” As Jones goes on to highlight, such a large change in scope during the early stages of construction would have likely proven to be

BE Monthly [ July 2014 ]

41


African Minerals

New locomotives arriving in Sierra Leone

“We have also spent the last year making the operating parameters of the project more consistent in order to maintain the desired 20 Mtpa run rate” impossible had the company gone the natural route of getting a formal reserve developed, dipping into feasibility studies, securing external project financing and so forth. “By applying a large degree of flexibility when it comes to our financial arrangements and capital decision making, we have been able to significantly enhance and accelerate the completion of the expanded phase I project during its construction.” Impressive as they are, African Minerals’ efforts have not solely been designed to

benefit the company and its stakeholders alone. Rather it has always been its desire to ensure that everybody is a net winner from its activities, striving to create a better quality of life for the communities in and around where it operates, one that is sustainable long after the mine has ceased operating. “One of the first benefits people tend to link to a successful operation like ours is direct employment, however it goes much further than that,” Jones says. “One can only employ a certain amount of people

BE Monthly [ July 2014 ]

43


Beltship Management Limited

The Self-unloading & Transhipment Specialists BML is a joint venture Company between Globe Shipmanagement Ltd and Gypsum Transportation Limited (GTL) and has been involved in the self-unloading and transhipment market for over twenty years. However with our partners we have roots stretching back to the late 1800’s with the first Gypsum Queen loading Gypsum in Canada in the 1890’s. In 1947 GTL were the first Company to build ocean going self-discharging bulk carriers and as such as a group there is a vast knowledge of the industry, the self-unloading concept and the cargoes carried. Beltship in Sierra Leone BML was contacted by African Minerals Limited (AML) in 2010. In 2010 the project was in its infancy and AML required a transshipment solution to move 8 million tons per annum (MTPA) of iron ore from the Port of Pepel, inland from Freetown, to an offshore transshipment location where the iron ore was to be loaded onto Capesize ocean going vessels (OGV). The loading port has a draft restriction of 9.5 meters, the channel is narrow with tight bends, and currents in the channel can run in excess of 4 knots. This challenging environment duplicated, almost completely, the operating

challenges that our vessels were designed to overcome at the loading ports in Nova Scotia, Canada. Additionally the advanced maneuverability of the vessels meant that they were ideal for the challenges of ship to ship operations, and with the flexibility provided by the vessels telescopic boom, efficient loading of an OGV with a minimum of transhipment vessel movements would be possible. AML export cargo consists of three grades of DSO, lumps, fines and AL32. The AL32 is a product which contains a certain amount of clay which can make handling difficult, however the vessels hopper shaped holds with their high slope angle combined with the MHF discharge system (negating hog backs) and oversized conveyors and transfer points was designed to handle “sticky” cargos. These technical advantages, inherent in the design of the vessels, together with an early start date and attractive freight rates, secured the Contract for BML in the face of stiff opposition from other specialist transhipment Companies and BML kicked off operations in October 2011. Since startup the transhipment operation has been very successful and, after a short ramp up period, the vessels have consistently over performed relative to the requirements of the

“Since startup the transhipment operation has been very successful and, after a short ramp up period, the vessels have consistently over performed relative to the requirements of the contract”

44

[ July 2014 ] BE Monthly


contract. This success resulted in a contract amendment to increase the transhipment exports to 20 MTPA for which BML brought into the project a third vessel and embarked on a major upgrade of the two existing vessels to increase design discharge capacity. This upgrade involved back fitting frequency convertor drives to all conveyors together with larger motors allowing faster belts speeds, increased discharge rates but allowing a decrease in per m2 loading of the belts. This has afforded better performance whilst reducing the mechanical stresses on the system. An average rate of 2800 tons per hour is required to meet the 20MTPA contract requirements whilst the actual average is now nudging 3400 tons per hour. BML is now operating 4 vessels in Sierra Leone, has a local office staffed with 55 employees of which 50 are Sierra Leones. BML has a commitment to Sierra Leone and has undertaken a cadetship scheme to provide

education and employment opportunities for the youth of the Country. Promising young men and women are sponsored and supported by BML to attend the Regional Maritime University in Ghana and regularly join the BML fleet for practical training and experience. Currently BML is loading 10 OGVâ&#x20AC;&#x2122;s a month which is an approximate 1.74 million tons per month of iron ore thereby helping AML to reach its targets. To date BML have loaded 123 Cape Size vessels and completed 615 ship-to-ship operations since start up thereby making BML one of the worldâ&#x20AC;&#x2122;s largest transhippers by volume as well as one of the most experienced ship to ship operators worldwide.

+377 97 97 80 90 info@beltship.com www.beltship.com

BE Monthly [ July 2014 ]

45


Wet Processing Plant during night shift

46

[ July 2014 ] BE Monthly


African Minerals

“By the second half of this year we expect to commence with the building of our first Saprolite haematite concentrators, which will go into production by 2016”

obviously, so we look closely at how our presence in the region can positively impact upon people up and down our footprint. In terms of indirect employment, increased activity in the area creates opportunities for the service sector and we also try to assist where we can in the drive in demand for goods and speciality services, including livestock, food and vegetables, carpentry, brick making and clothiers.” The development of people within the community in order to give them a better chance in life is a driving force behind a number of African Minerals’ CSR efforts, one of which is the refurbishment and financing of the Magbaruka Technical College. “One of the first things we noticed when we began operating in Sierra Leone was the fact that, as a result of the devastating Civil War that latest from 1992 to 2002, there was a significant dearth of men and women in the 20-30 year old age group, the group that would typically include your semiskilled artisans and tradespeople,” Jones highlights. “Our response to this is to utilise the college in order to provide national, vocational training in various semi-skilled and skilled trades. In completing this training these men and women will become certified both nationally and regionally, and while of course we would love it if they all one day worked for us, the most important thing is that they leave the college as a mobile asset capable of earning a living either within Sierra Leona or the wider region.” At the time of writing figures released by the company shows the first quarter of

2014 coming along encouragingly, with the fully integrated mine, plant, rail, port and marine operation contributing towards the production of 5.3 Mt of saleable product and the export of 4.6 Mt in the quarter, making the company the largest iron ore exporter in West Africa. “Moving forward there are two key elements that we are focusing on,” Jones concludes. “Operationally we want to stabilise our production rate at 20 Mtpa. Doing so will subsequently bring down our cash costs and thus increase our profit margins. From there we can turn our attention to locking the longer term future of the asset in place. The existing Direct Shipping Ore resource, which represents just one percent of our ore body, is likely to become depleted around the end of this decade, and we will need to have already moved into the higher margin Saprolite phase of the ore body, which represents nine percent of our ore body. By the second half of this year we expect to commence with the building of our first Saprolite haematite concentrators, which will go into production by 2016. This will lock in place the next phase of life for the Tonkolili mine, a multi-generational asset that we believe will be here for many years and decades to come.”

African Minerals

020 3435 7600 info@african-minerals.com www.african-minerals.com

BE Monthly [ July 2014 ]

47


Pra

Aggregatin

Praxis is a young company on a fast track: already it has grown through excellence in the way it mana words by

48

[ July 2014 ] BE Monthly

John Oâ&#x20AC;&#x2122;Hanlon


axis

ng service

y known as a reliable partner for crushing services, ages its assets to deliver services to major customers research by

Peter Rowlston BE Monthly [ July 2014 ]

49


raxis Earth Works (Praxis), based in Grande Prairie in northern Alberta, is a new company, led by its General Manager Ryan Martin since October 2010 – yet in terms of experience it lacks nothing when it comes to rock crushing, its core competency. The company started out operating a single crusher, making aggregate for a mixture of private clients, government departments and municipalities within a reachable radius of Grande Prairie. “We were working for people who had gravel pits or quarries and needed certain grades for road building or mining purposes,” explains Controller Ryan Gosse. That work got the company off the ground and established it for the first 18 months of its existence. Then came an important breakthrough when Praxis landed a contract with Walter Energy (Walter), which, readers of this magazine will recall, has been growing its business effectively at its three mines, Wolverine, Willow Creek and Brule in northeastern British Columbia. The BC border is less than 100 miles from GP, and it made every sense to secure this important client. But Walter is a big American corporation and getting a job from such a client is different from establishing a partnership. Contractors have to deliver! Praxis in the event delivered the value that Walter expects. As Gosse puts it: “Walter Energy has really been a big part of our growth, making up a significant portion of our business.”

P

“Walter Energy has really been a big part of our growth, making up a significant portion of our business”

50

[ July 2014 ] BE Monthly

Crushing unit on site


Praxis

“We have transformed from a pure crushing company to a joint crushing and transportation operation”

The wider world might not have registered the emergence of Praxis: so far it has managed to grow on the basis of repeat work or word of mouth referral from satisfied customers. It has not needed to advertise or chase work. For a mining operation like Wolverine, Praxis delivers two types of end product, a larger aggregate around two inches minus for use in blasting operations and a finer gravel, up to maybe half an inch, for laying down on the mine roads. The client has no lack of material, as they are cutting large amounts of overburden. The contractor’s job is simply to crush it to the size specified and load it onto the trucks. Simply? Anybody involved in this work will perhaps query the use of that word as we shall see, but it describes the scope of Praxis’s involvement. If Praxis has a unique selling point, other than the reliability with which it does its job, it is that it works throughout the year. Northern Alberta is not an easy place to work, especially in the winter. “December to March is definitely tough!” Gosse admits. “Minus 30 or 40 degrees is not uncommon where we are.” That is hard on equipment – in fact no equipment is really designed for those conditions so it takes a lot of looking after. “Production slows in the winter, so does our profit but we look on it as better than shutting down and losing our experienced staff. If we shut down in the winter like a lot of companies do we might not get our core staff back come spring.”

BE Monthly [ July 2014 ]

51


“It is a big pull when we are advertising vacancies to be able to tell people that they can work year round” Year-round working makes sense from both the economic and the HR point of view, he continues. “It is a big pull when we are advertising vacancies to be able to tell people that they can work year round – especially in an area where the O&G industry is a large employer. Those companies usually shut down for three months in the spring melt season

52

[ July 2014 ] BE Monthly

and that is how we compete with them for the best available labour.” So there are seasonal highs and lows but Praxis crushes 12 months of the year. Walter Energy normally has a spring crush program and a winter one. “We are just finishing up the winter crush program. In between, we squeeze in municipal jobs and similar civil


Praxis

work.” The filler work is always there to keep the company’s capital assets in productive use and the workforce in gainful employment. So as soon as the equipment deployed at Wolverine was dismantled it was shifted on Praxis’s own low-bed trailers to another job for another client. It was in late 2012 that Praxis decided to do its own transportation. Prior to this, equipment movement was contracted out, but bringing that in house made sense for the crushing operations and allowed the company to consider diversification. “We bought a couple of transport tucks and now we transport all our own equipment ourselves

including our crushing plant and the support equipment we use like excavators and loaders. And with that equipment we have also started to do contract trucking when we don’t need it ourselves – so we have transformed from a pure crushing company to a joint crushing and transportation operation.” All of the crushing equipment, he explains, is capable of being put on a low-bed or is mounted on its own axles. At the end of a job it is cleaned off, dismantled, loaded on a trailer and relocated. The fleet is still only two trucks strong but expansion is in the air. Praxis has just landed a big contract which involves aggregate crushing but then stockpiling it at a different

BE Monthly [ July 2014 ]

53


site. Hauling the gravel has not been part of the deal to date. The plan for the coming year to 18 months is to grow the asset base to three mobile crushing plants and establish a transportation company that combines Praxis’s own trucking requirements with contract low-bedding, moving other people’s heavy equipment, and gravel hauling. This will simply involve obtaining alternative trailers. That will enable the company to expand into civil construction work, road building and forestry work available in Alberta and beyond. Of Praxis’s 30 or so employees it is a remarkable fact that only five are native to

the Grand Prairie area. Most come in for their three weeks ‘on’ and return to their home town for their week ‘off’. This is typical for this town which, is the largest support centre north of Edmonton, the provincial capital. It has, Gosse reveals, a resident population of 55,000 but a transient population of five times that many, mainly working in the O&G and mining sectors, which accounts for its huge number of hotels. Praxis’s employees have to have experience of handling heavy equipment, though only the team supervisors need to have prior crushing experience. It is skilled work, with a

“There is a lot of work available – the limiting factor for us is the amount of equipment we have and the number of staff”

Crushing unit on site

54

[ July 2014 ] BE Monthly


Praxis

Equipment on the move

lead operator on a control tower overseeing a team of up to four and seeing that the feed matches the machines’ capacity. They work 12 hour shifts, he explains. “At the beginning of the shift they do their pre-equipment checks and make sure everything is up and running and nothing needs to be fixed. After safety meetings they crush for nine or ten hours, and in the last hour or two they do maintenance like oil changes, belt changes, even bearing changes, ready for the next shift to come on.” Major maintenance and overhaul is carried out at the workshop in Grande Prairie, which has a fully equipped service truck in case it needs to go out to the site. It may be harder to maintain something like 100 percent annual expansion beyond the first three years, but Praxis remains hungry for new customers and opportunities, expecting to maintain its 50 percent yearon-year revenue growth record through to 2015 and beyond. With three crushing plants

and a growing tucking operation its reach will spread – ideally it will keep its Grande Prairie service centre for northern Alberta and north-eastern British Columbia but will add a presence in the south of the province near Calgary or Edmonton. “There is a lot of work available – the limiting factor for us is the amount of equipment we have and the number of staff,” concluded Ryan Gosse. “We are a growing business in a growing market.” But ever prudent, he stresses that the market will determine the speed of growth, and the company will never overstretch itself by leveraging beyond its ability to fund expansion from its cash revenues.

Praxis

780-882-8741 rgosse@praxisearthworksltd.com

BE Monthly [ July 2014 ]

55


56

[ July 2014 ] BE Monthly


Inspired innovation No-SpillTM Systems No-Spill™ Systems’ commitment is to provide fluid draining solutions that provide high quality and eco-friendly results, and measures its success on its ability to exceed its customers’ expectations words by

Will Daynes

research by

Stuart Platt

BE Monthly [ July 2014 ]

57


t was a German by the name of Helmut Muller who will always be credited with development of the first environmentally friendly drain plug, patenting the first version of the “pop-up” style, spring-loaded drain plug in 1977. It was then in the mid-1980s that a Dutchman by the name of Poul van Santen would go on to invent an improved version of the aforementioned product. Only a few years after this Lorne and Donna Hasinoff, present day owners of No-Spill™ Systems, were first introduced to the drain plug product. So impressed were they by the product that they subsequently committed their efforts and energy to opening up the North American market for drain plugs, selling them under the name Ettco. Changing its name to Femco Environmental in 1996, the company would go on to champion the development of the Compact and Speed Click™ version of the Dutch drain plug. It was in the year 2000 that the company No-Spill™ Systems was incorporated in the United States. In the years since, No-Spill™ Systems has worked extensively with its customers and utilising its own vast product knowledge is today making its own No-Spill™ branded drain plugs and has improved on every tangible aspect of the product “This No-Spill™ drain plug is now produced using US and Canadian sourced labour and materials and is raising the bar for drain plug quality once again,” enthuses Carrie Hasinoff, Director of Marketing. “This No-Spill™ product is customised for the North American market based on suggestions and years of input from our valued end user customers and dealer network, now over 4,000 strong.” As Hasinoff goes on to state, the need for environmentally sustainable fluid transferring technology is growing stronger by the day. “No-Spill™ Systems is moving

I

58

[ July 2014 ] BE Monthly

American made drain plugs ready for shipment


No-SpillTM Systems

forward with this trend by promoting our No-Spill™ System in many markets in multiple continents. Our latest emerging markets are in South America, and Central America. We continue to adjust and tweak our product to provide specialised solutions for our customers wherever they may be. We’ve completely re-invented the same drain plug with better materials, improved thread pitch accuracy, and a truly American product.” No-Spill™ Systems is committed to providing fluid draining solutions that provide high quality and eco-friendly results, with excellent value for its esteemed customers. “Our success is measured by our belief in No-Spill™ Systems’ ability to meet or exceed expectations of value, quality, and service,” explains Sales Manager, Richard Warren. “We truly believe that our product is the best around and that our customers are getting a better, cleaner and safer way to do fluid changing.” No-Spill™ Systems emphasises that its product is not simply a “fitting”, rather it is a living commodity that changes year to year with every change and movement in the market. In the past two years alone the company has gone about the process of modifying all of its NPT plugs in order to reflect what it calls, “a true North American thread pitch”. With a combined experience of more than 88 years in the industry, No-Spill™ Systems is the longest running drain plug company in the world, and from day one its customers have been recognised as being the core reason behind the success of the business. “Our customers are the first to suggest improvements and we are always backing them up and looking for ways to implement their needs into our product,” Hasinoff explains. “For example, there was an increased demand for the body of our Speed Click™ Clicker to be manufactured entirely in brass. We responded and in addition to improving the brass body of the product,

BE Monthly [ July 2014 ]

59


No-Spillâ&#x201E;˘ production adheres to the highest quality standards

60

[ July 2014 ] BE Monthly


No-SpillTM Systems

“We truly believe that our product is the best around and that our customers are getting a better, cleaner and safer way to do fluid changing”

have improved the way in which it connects to its mating piece. We have also responded to a resounding customer request for quicker flow of fluids through the product. We collected data from our customers, worked tirelessly with engineers and in the end now have the only Speed Click™ Clicker with a three-quarter inch diameter flow in the industry.” The company has also benefited hugely from the development of a business model that stands strong in the face of economic difficulty. “In the economic fall of 2008, we took a risky counter intuitive business approach and doubled our sales team, to reflect the addition effort that would be required to support growing sales volumes in a depressed market,” Hasinoff reveals. “We also created a Drain Plug Specialist position, whose primary responsibility is researching and matching up new drain plugs with their No-Spill™ match. This was another example of the amount of time, resources, and talent we have invested over the years into bringing the No-Spill™ drain plug into fruition and it’s been well worth it. Our customers appreciate the lower price and they appreciate that we are keeping jobs in our home countries where they matter most to us.” “Every time we talk to our customers the message is always the same and that is that they love our products,” Warren says. “Some of these have been with us over 20 years and they just love our products because they save so much time, money and effort. Our products ensure a quick and easy way

of carrying out fluid changes, meaning that a vital piece of our customer’s equipment that is brought in for a fluid change or preventative maintenance is in our premises for the least amount of time and sent back out into the field as quickly as possible.” For the rest of 2014, the company’s plans are to continue pushing for greater sales in the South American mining and oil and gas industries where it continues to see huge demand for onsite maintenance and its products. Further ahead, into 2015, it foresees future growth in all of its core markets as the global economy shifts upwards. In line with this projected growth, No-Spill™ Systems has devised a strategy to further infiltrate the US market in particular with special attention to addressing the needs its competitors simply cannot complete with. “We recognise that our customers can spend their maintenance budget in many ways and we are thankful every time they choose us,” Hasinoff concludes. “In order to continue to meet their evolving needs we will strive to continuously innovate our product. Recently we came out with a 3/4 inch drain tool and it is product innovations like that that we are looking every single day to do, to innovate and meet new challenges.”

No-SpillTM Systems

1-866-466-7745 info@nospillsystems.com www.nospillsystems.com

BE Monthly [ July 2014 ]

61


62

[ July 2014 ] BE Monthly


Petrotrin

Investing for

increased production As the main source of energy for Trinidad and Tobago as well as its principal foreign exchange earner Petrotrin is investing strategically in upping its offshore and onshore resources of crude words by

John Oâ&#x20AC;&#x2122;Hanlon

research by

Robert Hodgson

BE Monthly [ July 2014 ]

63


Facilities in harmony with the landscape

ast year we published an in-depth report on the Caribbean’s leading O&G company, looking at Petrotrin’s business models, vision, people strategy and environmental aspirations. There can be no doubt that this is a company that is pivotal to the development of the nation and indeed the region as a whole. Petrotrin is the stateowned integrated oil and gas company of Trinidad and Tobago engaged in the full range of petroleum operations including the

L

64

[ July 2014 ] BE Monthly

exploration, development and production of hydrocarbons and the manufacturing and marketing of petroleum products. In other words it is active from wellhead to consumer, from upstream to downstream O&G activities as well as being an influential participant in Trinidad and Tobago’s economic and political life, supplying the country’s domestic needs as well as exporting half of its production to the benefit of the country’s balance of payments. This company was incorporated on January


Petrotrin

â&#x20AC;&#x153;Petrotrin directly employs 5,500 people, and incorporates at least 700 smaller local companies in its supply chainâ&#x20AC;?

21, 1993 to consolidate and operate the petroleum producing, refining and marketing assets of State-owned enterprises: Trinidad and Tobago Oil Company Limited (Trintoc) and Trinidad and Tobago Petroleum Company Limited (Trintopec). In 2000, it acquired the assets of Texaco Inc in the joint venture Trinmar Limited, making that entity a part of its Exploration and Production operations. As a state enterprise, Petrotrin is under the direct control of the Minister of Finance.

BE Monthly [ July 2014 ]

65


BEFORE

AFTER

BEFORE

AFTER

BEFORE

AFTER

BEFORE

AFTER

BEFORE

AFTER

BEFORE

AFTER

Theo Richards

GENERAL CONTRACTOR LIMITED Theo Richards General Contractors Limited is a Service type company providing Services to our main client Petrotrin for over 35 years. We provide the following services to Petrotrin Point-a-Pierre Refinery Area, Palo Seco fields and Petrotrin Trinmar Operations and other areas: • Welding and Fabrication • Civil Works • Building Construction and Maintenance • Hydro blasting and Painting • Pipefitting, Grass cutting and other Related Services

Email: theo@trgcl.com | Telephone: (868) 648-0596


Theo Richards General Contractor Limited

The contractor of choice

Theo Richards General Contractors Limited (TRGCL) is an Energy Servicing Company, providing a range of specialized services for Petrotrin including Pipe Fabrication and Installation, Major repairs to their Offshore Platforms and other Facilities. We have demonstrated our ability to perform these works and Petrotrin has gained their confidence in us to deliver a high quality work in their Building and Construction, Rehabilitation of their Offshore Facilities and Refinery Maintenance Jobs. Over the past thirty five (35) years, our services to Petrotrin have expanded and we have moved from small to large categories performing a range of diverse jobs within the required codes of the Petrochemical Industries. The experience gained by working with Petrotrin, provided a medium for growth and expansion for us as a Business Entity. We have now extended our services to other major Energy Sector Companies. As a Contracting Company and a Business Entity, Petrotrin has become one of our main revenue earners and we continue to depend on

â&#x20AC;&#x153;As Petrotrin celebrate twenty (20) years we have the privilege to be a partner with them in business and growthâ&#x20AC;? Petrotrin for continuity and sustainability. Hence, we are privileged to grow as a Business by earning revenue from services we provide to them. As Petrotrin celebrate twenty (20) years we have the privilege to be a partner with them in business and growth. Happy Anniversary to Petrotrin and may our partnership continue to be a success story.

(868) 648-0596 theo@trgcl.com

BE Monthly [ July 2014 ]

67


INLAND & OFFSHORE CONTRACTORS LTD

A Cut Above The Rest

Our Services: Marine Transport • Inland Transport • Pumping/Hydroblasting Tel - 868 677 2093 | E-mail - info@iocltt.com | www.iocltt.com


Petrotrin

It directly employs 5,500 people, and incorporates at least 700 smaller local companies in its supply chain, supporting nearly one in seven of the islands’ population of 1.3 million. The company produces a little under 45,000 barrels per day (bpd) of crude oil, making it the largest crude oil producer in Trinidad and Tobago, and 180 million cubic feet of gas. Its crude feeds the company’s Pointeà-Pierre refinery which has the capacity to process around 170,000 bpd, making products for a variety of local, regional and international markets from fuel oil to aviation fuels. The refinery as it stands today is the result of continuous upgrading since a major $355 million investment programme carried out in 2000. All this, though, is eclipsed by a $1.2 billion upgrade project currently being completed. In its thrust to improve its international marketability, Petrotrin recently engaged in a Clean Fuels Program at Pointe-à-Pierre, which involves the Gasoline Optimisation Program (GOP) and the Ultra Low Sulphur Diesel (ULSD) projects. Between them these projects will help to ensure a full conversion capability of 168,000 bpd, enable the company to produce cleaner and more environmentally friendly gasoline and diesel

“Petrotrin recently engaged in a Clean Fuels Program at Pointe-àPierre, which involves the Gasoline Optimisation Program (GOP) and the Ultra Low Sulphur Diesel (ULSD) projects”

Inland & Offshore Contractors Inland & Offshore Contractors Ltd is proud to have been supporting Petrotrin’s operations for the past twelve years supplying Offshore and Land Transportation, Hydro-blasting and Tubular Maintenance services. Currently we supply marine vessels ranging from 50 to 150 feet providing transport, emergency response services and drilling support. We have also provided tubular maintenance using our water-blasting units. In addition we supply articulated boom cranes ranging from six to twenty ton lifting capacity, tractor trucks, forty and forty-five foot trailers and mobile cranes. Our company stands committed to providing an exemplary service as described in our motto, ‘A cut above the rest’. www.iocltt.com

The Continuous Catalytic Regeneration (CCR) unit

BE Monthly [ July 2014 ]

69


LAND & MARINE

CONTRACTING SERVICES We specialise in: Onshore & Offshore work • Including Diving & Underwater Services • Barge Rentals • Welding & Fabrication Civil Works • Equipment Rental & Mechanical Works #95 Alta Garcia Trace, San Francique Rd., Penal

Telephone: 1 868 647 1885, 338 4009, 488 1949, 336 7935, 298 3315

QUALITY CUSTOMER SERVICE

Sadhna Petroleum Services Company Limited based in Trinidad and Suriname provides quality services in the following: • Turnkey Drilling • Well Abandonment • Rig Management & Maintenance • Drilling & Workover Rigs • Drilling Location and Access Road Construction • Labour Management • HSE Personnel TRINIDAD: 461 Southern Main Raod, Rousillac, Trinidad, West Indies. Ph: 868-651-1929/30 | Fax: 868-651-1937 SURINAME: Larecoweg 138, Saramacca, Suriname. Ph: 597 327-176 | Fax: (597) 327-100

70

[ July 2014 ] BE Monthly


Petrotrin

Port facilities at Pointe-à-Pierre

“We had to change our production processes to get better, cleaner fuels that meet new environmental targets”

to both regional and international markets and will impact positively on the company’s profitability and viability well into the future. As Hemraj Ramdath, at that time Petrotrin’s VP of Strategy and Business Development, told us last year: “We had to change our production processes to get better, cleaner fuels that meet new environmental targets.” The work at the refinery is aimed at helping the company to shift its emphasis from lower value, high volume products such as fuel oil to higher margin products like aviation fuel and

low-sulphur diesel. The object of the exercise is to get a better return on the products, a higher margin and a chance to be competitive in high spec markets. The refinery upgrade will also have to address the lower grade fuel oil market, which since Petrotrin sells around 50,000 barrels a day is an important part of the mix. Further investment will be needed to utilise that fuel oil better and convert it into higher value product in an increasingly competitive market. As the country’s energy minister Kevin Ramnarine put it in April,

BE Monthly [ July 2014 ]

71


Partnering with all Major Oil and Petrochemical Industries

GULF GROUP OF COMPANIES have been serving the Oil & Gas Industries in Trinidad & Tobago successfully for over 37 years possesses a combined knowledge of over five hundred years. GESL is licensed under API Spec 7-1-0125 & Spec 5CT-0247 and is also the licensed and certified agent for:

Our vision is to continue to partner with Petrotrin and others, priding ourselves with our quality, reliability and our delivery of products and services.


Petrotrin

“Petrotrin’s ability to survive will depend heavily on increasing the quantity of equity crude that it runs”

“Petrotrin’s refinery will be challenged and its ability to survive will depend heavily on increasing the quantity of equity crude that it runs, leveraging on location to grow volumes in existing premium markets and capture new premium markets, aggressive cost management and increased operations efficiency, and implementation of a bottom of the barrel solution to convert fuel oil into higher value products, and thereby increase the value of the fuel oil.” Basically, Trinidad and Tobago needs more oil, and that means increased exploration activity on the part of Petrotrin and its partners. The company is carrying out an intensive programme of 3D seismological surveying and interpretation which should

Onshore well drilling in Fyzabad

GULF GROUP OF COMPANIES COMPRISES: GOPCO OILFIELD AND INDUSTRIAL SUPPLIES LTD A Stockist and Supply Company and is one of Trinidad’s leading local supplier of Valves, Casing, Tubing, Tubing Pup Joints, Drill Pipes, Drill Collars, Downhole Tools, and Rig Equipment and Accessories, including all makes of Duplex and Triplex Pumps and related consumable items for the Oil, Gas and Associated Industries. We are the agent for CAVINS OILWELL TOOLS, KING OIL TOOLS(GEFCO) AMERICAN BLOCK and many others. GOPCO also provides Rental of Oilfield related Tools and Equipment for Drilling, Completion, Workover and Fishing Operations. We have experienced Service Engineers and Fishing Tool Operators for performing all types of fishing jobs. T. 001-868-652-8721/22 E. sales@gopcott.com

GULF ENGINEERING SERVICES LTD A machine shop based company which is API and ISO 9001 certified. We provide Machining, Fabrication, Threading of Connections, Quality Manufactured Parts and Products, QA / QC services & repairs to Oilfield & Industrial Equipment. GESL has a comprehensive inventory of ‘Downhole’ Drilling and Production Tools and Equipment that are rented to customers for Drilling/Workover and Completion operations both on-land and off-shore. T. 001-868-652-8447/48 E. gulf@gulfengtt.com

BE Monthly [ July 2014 ]

73


K.G.C. COMPANY LIMITED

K.G.C. Company Limited was incorporated in the year 1995 in the Republic of Trinidad and Tobago. From inception our company has been servicing the needs of our dynamic National Oil and Gas Production and refining companies in the areas of civil and marine construction and installation projects. Our main client has always been The Petroleum Company of Trinidad and Tobago Limited (PETROTRIN). K.G.C. Company Limited has also executed major projects for both local and international companies. K.G.C. Company Limited is often referred to as the preferred contractor in our area of expertise because of our resourcefulness and timely execution. K.G.C. Company is also involved in ship building and repairs in Trinidad and Tobago. We have constructed several Aluminum Hull Passenger / Multi-purpose vessels which were sold companies operating in the Offshore Oil and Gas in the Gulf of Mexico, Venezuela and Trinidad and Tobago. Through continuous improvement, expansion of our resources and being “Turn Key” company has made K.G.C. Company Limited exceptional in the execution of all our projects as we are governed by safety, quality and

efficiency of which our esteemed clients continuously realize the cost effectiveness of their projects. • Civil and Marine Construction • Platform Construction and Installation • Piling - land and offshore • Land & Submarine Pipe laying • Key Wall / Jetty – Construction • Welding and Fabrication (ABS Certified) • Tank Fabrication • Structural Fabrication • Diving Services • Inspection – NDT Services • Labour Supply • Abrasive Blasting and Painting • UHP Water Jetting • Maintenance Services • Marine & Civil Construction Equipment Rental • Ship Building and Repairs • Warehouse and Yard Rental

Please feel free to contact our Office about any of our services or any other service which you may require our support: K.G.C. Company Limited, 106 Celestial Park, Vessigny Village, La Brea, Republic of Trinidad & Tobago, West Indies. Telephone: 868 651 1887 | Fax: 868 648 8159 | E. info@kgccoltd.com | www.kgccoltd.com


Petrotrin

Workers in action

“I don’t think the average man on the street is aware that our refinery has a capacity of 165,000 barrels of oil per day, of which we supply 45,000 barrels or 27 percent”

produce good results and help achieve a modest though significant increase in the medium term, maybe boosting oil production to 65,000 bpd by the end of this decade. However Petrotrin plans, as part of its 2014 - 2018 Strategic Plan, to invest $11.3 billion over the next four years to increase its oil production in an attempt to improve its overall profitability. The investment represents 71 percent of the company’s $16 billion capital expenditure budget for the period. Trinidad and Tobago is still importing 73 percent of its crude requirements at world market prices – both the company and the country would

BE Monthly [ July 2014 ]

75


Petrotrin

Overlooking the water treatment plant

Petrotrin at a glance Crude Production 44,221 bpd Crude Reserves (proved) 152.3 mmbbl Gas Reserves (proved) 299.2 bcf Primary Distillation 175,000 bpd Conversion Capacity 168,000 bpd (Post GOP) Onshore acreage 249,686 Offshore acreage 1,024,713

benefit immeasurably by shifting that balance. As Ramnarine said: “I don’t think the average man on the street is aware that our refinery has a capacity of 165,000 barrels of oil per day, of which we supply 45,000 barrels or 27 percent.” With the refinery upgrade almost complete the priority is for new discoveries and the application of enhanced oil recovery techniques to mature oil fields. Oil production has suffered from decades of low investment and this is related to the availability of landbased acreage to the private sector. The government’s 2013 bid round addressed this, laying the foundation for new oil and gas discoveries on land in the coming years. Among the operators that were awarded a total of twelve wells, with associated seismic

BE Monthly [ July 2014 ]

77


“Petrotrin is the major sponsor of the annual Inmates Calypso Competition held in the eight prisons and centres, which the company has been sponsoring for the past 24 years” operations, were Range Resources, Primera Oil and Gas and Lease Operators Ltd. As part of our last report we highlighted Petrotrin’s social, environmental and economic programmes, which are something of a benchmark for the business community

78

[ July 2014 ] BE Monthly

in the Caribbean and the O&G industry internationally. Not for nothing is the company’s slogan “Energy Based: People Powered”. It is pleasing to be able to report that this activity and ethos is still alive and well, with the company supporting a huge


Petrotrin

Lilies on the pond at Wild Fowl Trust

range of sporting activities as well as health initiatives typified by its hosting of a foot health conference. The conference held in the capital Port of Spain in February focused on the problems faced by diabetics. However a really imaginative and long-term commitment to CSR activities is demonstrated in the annual Calypso competitions throughout the nationâ&#x20AC;&#x2122;s prisons and detention facilities. Petrotrin is the major sponsor of the annual Inmates Calypso Competition held in the eight prisons and centres, which the company has been sponsoring for the past 24 years. Contestants sing compositions from soca, calypso and chutney genres. Most performances portrayed positive messages

highlighting issues of crime, drugs, child abuse, love and peace, and received a spirited response from specially invited guests! The programme has been the opportunity for many inmates to develop musical composition, staging and, performance skills while still in prison, a very positive contribution to their rehabilitation.

Petrotrin

(868) 658-4200/10/20/30 corp-comm@petrotrin.com www.petrotrin.com

BE Monthly [ July 2014 ]

79


Basil

Synonymous wi

With conditions remaining challenging in its home count wings in order to bring its reputation for excellence and pr words by

80

[ July 2014 ] BE Monthly

Will Daynes


Read

th excellence

try of South Africa, Basil Read has successfully spread its rofessionalism to many of Africaâ&#x20AC;&#x2122;s most important markets research by

Jeff Abbott BE Monthly [ July 2014 ]

81


Temporary fuel farm in Ruperts Bay

82

[ July 2014 ] BE Monthly


Basil Read

hen we last featured Basil Read within this magazine in October 2012, much of our focus was on the group’s ongoing work on the St Helena airport project. Said article went into great depth regarding the efforts of the group to deliver the British Overseas Territory with its own international airport, and it soon became clear, to this writer at least, that this project would not only go on to be hugely significant for St Helena but for a group that was already able to boast an impressive track record. Sure enough, within two months of our article on Basil Read going live a number of other industry watchers were queuing up to heap praise on the group and its efforts. One such watcher was Construction World, which proudly presented Basil Read with its prestigious Project of the Year award for the St Helena airport undertaking. Among the factors taken into account by the judges, who were unanimous in their decision to present Basil Read with the award, were the island’s remoteness, the limited skills availability and the infrastructure capacity needed to complete a construction project of this magnitude. Basil Read had to effectively develop a new supply chain from the African mainland. This involved the chartering of a specialist vessel, constructing of berthing and unloading facilities, setting up fuel storage, constructing temporary accommodation for the workforce, setting up communication links, securing and transporting plant and personnel. The St Helena airport project is today in its fourth year of development. Phase I, which commenced in December 2011, is well advanced with a number of permanent works ongoing or near completion. This include a 14 kilometre access road from Rupert’s Bay to the airport site, a 750 metre long concrete culvert and attenuation dam, a 1,950 metre long concrete runway complete with aprons and taxiways, a bulk fuel installation to hold six million litres of fuel, and a 2,500 square

W

BE Monthly [ July 2014 ]

83


babcock

Babcock-supplied construction equipment broadly deployed on St Helena

Backup_of_2014_VOLVO_EXCAVATOR EC700_busexc_203x276 10 June 2014 11:39:23 AM

Babcock’s supply of a broad range of heavy construction equipment to support the construction of an airport on the island of St Helena will also be deployed to build a permanent wharf to allow ships to dock alongside for the first time in St Helena’s history. The equipment— primarily Volvo heavy construction vehicles — has performed reliably, with good fuel efficiency and high productivity. It was supplied to the island in batches, beginning with shipments on the RMS St Helena and, since August 2012, main contractor Basil Read’s flat deck shallow draft cargo ship, the NP Glory 4, has brought the balance of the equipment to the island. Volvo equipment is currently being heavily deployed on the construction of the airport runway, which involves filling the so-called Dry Gut Gorge with 8-million cubic metres of blasted rock to a height of over 100 m, with a width of 750 m, creating an embankment that will form part of the runway. As of February 2014, the Dry Gut fill was 65% complete with more than 5-million cubic metres of material placed through a 24-hour operational cycle. Fill material is sourced from the site area as the landscape and hills are levelled.

“The equipment has performed reliably, with good fuel efficiency and high productivity” Sixty percent of the airport construction is already complete. Once both airport and wharf have been finalised, this heavy construction equipment, previously unobtainable on the island as a result of the challenging shipping logistics, will be available for future infrastructure development on the island. In southern Africa, Babcock is the exclusive distributor for leading international equipment brands, including Volvo and SDLG construction equipment, Winget concrete handling equipment and Tadano cranes. (011) 230 7300 enquiries@babcock.co.za www.babcock.co.za

BE Monthly [ July 2014 ]

85


metre terminal building. Phase I is expected to be completed in full by February 2016, at which time Phase II will commence, which entails the operation of the airport for a minimum period of ten years. Notwithstanding the ongoing success of its St Helena airport project, Basil Read is about a lot more than just a single project. Indeed, as readers of the past article will no doubt be aware, the group engages in a plethora of activities through its various subsidiaries. These include civil engineering projects, road construction, building, integrated housing developments, property development, bitumen distribution, opencast mining and engineering design, procurement and construction management, as well as related services throughout Africa and other emerging markets. Looking at the overall performance of the group, specifically during the course of 2013, one is able to get a better picture of how the owners, board of directors and management have been able to steer a multi-faceted business through what remain uncertain times. For the South African trading environment especially, conditions over the last year have continued to be subdued and rather difficult due to several internal factors such as labour unrest and the slow roll out of large scale projects. Even in the face of these

“Notwithstanding the ongoing success of its St Helena airport project, Basil Read is about a lot more than just a single project”

86

[ July 2014 ] BE Monthly

Haul road at the top of Rupert’s Valley


Basil Read

“Basil Read was able to usher in a return to profitability during the last financial year thanks to a renewed focus on its core operations and a period of consolidation” conditions, Basil Read was able to usher in a return to profitability during the last financial year thanks to a renewed focus on its core operations and a period of consolidation. The result of this was an improvement in its order book by 22 percent to R12.5 billion, an increase in revenues by 15 percent to R6.3 billion and a reduction in debt by 52 percent to R426.4 million. The reduction in the level of debt is particularly significant as it helped to strengthen Basil Read’s balance sheet and provides a solid base to support future growth. If we deconstruct the four main areas of Basil Read’s business, namely construction, mining, developments and engineering, we are able to see the individual ways that the group has managed to offset negative factors in its local market of South Africa with work elsewhere. For example, within its construction business Basil Read has taken the initiative by shifting its focus to other parts of Africa where the need for quality construction groups is high. With secured contracts in Botswana, Namibia and Mozambique and offices established in Zambia, the group is actively tendering for projects in Africa, where there are a number of public and private work opportunities. Meanwhile, tenders submitted in the first

BE Monthly [ July 2014 ]

87


World leader in engineering and project delivery WorleyParsons is a leading provider of project delivery and consulting services to the resources & energy sectors and complex process industries. Our services cover the full asset spectrum both in size and lifecycle - from the creation of new assets to services that sustain and enhance operating assets.

43

countries

166

offices

37,500

people

www.worleyparsons.com


WorleyParsons

Advanced engineering ingenuity and thorough planning showcased on St Helena airport project WorleyParsons, one of the world’s largest EPCM businesses, is lead design engineer on the iconic St Helena Airport project, which incorporates many unique and unusual features that have required advanced engineering ingenuity and thorough planning. The remoteness of the island, its size, materials supply logistics, unique geology, topography and climate, endemic biodiversity with sensitive environmental heritage, ethnic

“WorleyParsons’ scope of work has covered a full spectrum of infrastructure design aspects for the airport project”

World leader in engineering and project delivery WorleyParsons is a leading provider of project delivery and consulting services to the resources & energy sectors and complex process industries. Our services cover the full asset spectrum both in size and lifecycle - from the creation of new assets to services that sustain and enhance operating assets.

Working alongside main contractor Basil Read, WorleyParsons’ scope of work has covered a full spectrum of infrastructure design aspects for the airport project, notably, landside engineering, airside design and the airport buildings, including a bulk fuel storage facility and a 14,5 km access road. One of the biggest project challenges has been the166 so-called 43filling countries offices “Dry Gut Gorge” with 8-million cubic metres of blasted rock to create an embankment that will form part of the runway. Apart from the varying geographical features of the island, the airport site also presented a unique challenge in terms of preserving the environment and history of St Helena. All the exacting requirements of this unique project have been underpinned by WorleyParsons’ global response. For example, the design team drew on the expertise of its world renowned in-house hydrocarbons design expert for the bulk fuel facility and on its global track record in road engineering for the design of the 14,5 km access road.

37,500

WP st Helena ad.indd 1

diversity and history called for real innovation in the design of specific aspects of the project infrastructure. Careful consideration was needed to ensure ease of constructability, logistical challenges and programming of design delivery and this entailed close integration between the members of the design and construction teams.

+27 21 912 3000 Djonker@worleyparsons.com www.worleyparsons.com

BE Monthly [ July 2014 ]

89

peo


two months of 2014 exceed R10 billion, of which R1 billion has been awarded. The first project awarded to Basil Read Civils by Eskom is a contract for further work to be carried out at the Medupi Power Station Project. The contract to be executed over twenty months is for Phases I and II of the excess coal stock yard. The project comprises 965,000 cubic metres of bulk earthworks, 437,000 cubic metres of layer works, 1.1 million square metres of geosynthetic installation and will require 23,000 tonnes of bentonite.

90

[ July 2014 ] BE Monthly

The second project awarded to Basil Read Roads by the South African National Road Agency SOC Limited (SANRAL), is the N8 Kloofeind Haldon contract in the Free State. The project commenced on 7 March, 2014 and involves the rehabilitation of the N8, section 10 from Kloofeind to Holdon Road Interchange. The project duration is twenty months and includes pavement strengthening with road widening and drainage improvements. Similarly, Basil Read Mining is also capitalising on business outside of its home


Basil Read

Working at night on the haul road

Did you know? R12.5 billion Value of Basil Read’s order book at the end of 2013 R6.3 billion Basil Read’s pre-tax revenues for the 2013 financial year

market in order to offset a depressed environment. Already active in Botswana and Namibia, 2013 saw the division secure a five year contract in the latter country at the Tschudi Copper Project, operated by Weatherly International plc. With this project, much of the 2014 financial year will be spent in the start-up phase, with production commencing towards the end of the year. All drill and blast work relating to this contract is to be completed by Basil Read’s Blasting & Excavating subsidiary.

BE Monthly [ July 2014 ]

91


Lilongwe Lubango

M

oz a

m

bi qu

e

Walvis Bay

L端deritz Swaziland

The preferred access to Southern Africa

www.namport.com Head Office Nr 17 | Rikumbi Kandanga Rd | P O Box 361 | Walvis Bay | Namibia Tel: (+264 64) 208 2111 | Fax: (+264 64) 208 2323 Email: marketing@namport.com.na Port of L端deritz Hafen Street | P O Box 836 | L端deritz | Namibia Tel: (+264 63) 200 2017 | Fax: (+264 63) 200 2028


Namibian Ports Authority Namport – the preferred access to southern Africa.

rity

namport

outhern Africa.

The preferred access to Southern Africa

s in Walvis Bay with the re than 4000 vessel calls ntainer terminal capacity of

s Bay is situated at the rica and provides an easier transit route between Europe and the Americas.

Namport is a state-owned entity founded in 1994 after Namibia’s independence in 1990. From humble beginnings as fishing harbours, the company has embraced the surge in the economies of the Southern African Development Community in the past two decades. Today the Port of Walvis Bay receives more than 4,000 vessel calls per year and has a container terminal capacity of 10,000 TEUs. On the West Coast of Africa, it provides an easier and much faster transit route between Southern Africa, Europe and the Americas. The Port of Lüderitz, on the Southern Coast of Namibia, caters for Southern Namibia and provides access to markets in the The Port of Lüderitz, located in the Southern region and provide the best means of Northern Cape of South Africa.SADC Coast of Namibia, caters for Southern access for their markets. Namibia as well as providing access to Namibian Ports alsohas manages a markets in the Northern Cape of South AuthorityNamport subsequently continued Africa. with ongoing equipment upgrades and infrastructure expansion in order to Syncrolift (dry dock facility) where vessels of upensure Namibian Ports Authority also manages a capacities exceeding 6-million tonnes per Syncrolift (dry dock facility) with vessels annum and over 350,000 TEUs. Walvis Bay toof up2,000 tonnes repairs. Through to 2,000 tonnes that can becan lifted be lifted for is recognised as a transhipment hub for for repairs. Through its subsidiary EBH, the entire West Coast of Africa, serving the Namport also operates threeEBH, floating docks major container liners of thethree region in the its subsidiary Namport also operates with lifting capacity of 6,500, 8,000 and most efficient and cost-effective manner. 15,000 tonnes each. Current major projects include: floating docks with lifting capacity of 6,500, • New container terminal expansion taking In the year 1998, Namport embarked on the capacity up to 1-million TEUs per annum; 8,000 and 15,000 tonnes each. first substantial expansion plan in 40 years • Tanker berth for fuel handling; by refurbishing the quays in Walvis Bay and • Oil and Rig repair facilities; deepening the port to -12.8has metres. This • with Car Terminal for New and Used Vehicles; Namport continued equipment has subsequently been increased to -14m • Additional port facilities for bulk material depth and the quay lengthened. A further handling. upgrades and infrastructure expansion to investment in Lüderitz was undertaken for a new cargo and container quay two The SADC Gateway North Port development ensure capacities million tpa years’ later. In the same year, Namport exceeding –6 Namport’s long-term plans –and has been was instrumental in establishing the Walvis brought forward by events including the Bay Corridor Group which seeks to ensure Trans-Kalahari Railway Line development over 350,000 TEUs. Current from major projects at sustainable cargo for the countries of the Botswana and the new Fuel Tanker Walvis Bay include: • New container terminal expansion taking capacity up to 1 million TEUs per annum; • Tanker berth for fuel handling; • Oil and rig repair facilities; • Car terminal for new and used vehicles; • Additional port facilities for bulk material handling. The SADC Gateway North Port development – Namport’s long-term plans – has been brought forward by events including the Trans-Kalahari Railway Line development from Botswana and the new Fuel Tanker Berth facility at the Northport site. Demand from the mining sector is

The Port of Lüderitz, lo Coast of Namibia, cate Namibia as well as pro markets in the Norther Africa.

Namibian Ports Author Syncrolift (dry dock fac of up to 2,000 tonnes t for repairs. Through its Namport also operates with lifting capacity of 15,000 tonnes each.

also increasing the viability of this development Namportof is a state-owned entity founded in biggest industries in Walvis Bay with the ahead expectations. 1994 after Namibia’s independence in 1990. port receiving more than 4000 vessel calls per year and a container terminal capacity of Walvis Bay and Lüderitz are positioned to From humble beginnings as fishing harbours 10,000 TEUs. in Walvis Bay and Lüderitz, the company has access markets in Zambia, Democratic embraced the surge in the economies of the The Port of Walvis Bay is Republic situated at the Southern African Development Community West Coast of Africa and provides an easier of Congo Zimbabwe, Angola and (SADC) in the (DRC), past two decades. Today, andMalawi, much faster transit route between industrial and commercial activities are the Southern Africa, Europe and the Americas. Botswana. These destinations are all well served by the corridors established by the Walvis Bay Corridor Group (www.wbcg.com.na): Namport continues to play an important role in facilitating these trade corridors to ensure improved border crossings, facilities and infrastructure benefits by engaging all stakeholders across all relevant countries to ensure proper regional integration for the benefit of its customers. Walvis Bay enjoys a reputation of efficient operations, competitive pricing, secure facilities and rapid turnaround of vessels with no congestion. 154 |

In the year 1998, Namp first substantial expans by refurbishing the qua deepening the port to has subsequently been depth and the quay len investment in Lüderitz for a new cargo and co years’ later. In the sam was instrumental in est Bay Corridor Group wh sustainable cargo for th

Best of Namibia

Best of Namibia

| 155

+264 64 208 2111 marketing@namport.com www.namport.com

BE Monthly [ July 2014 ]

93


Basil Read Mining is investigating opportunities in carefully selected markets across Africa. There is a caveat to possible expansion, considering the significant capital expenditure required, and the division is therefore simultaneously investigating alternative financing arrangements. Nevertheless, in terms of both expansion and financing, an established track record in South Africa will stand the division in good stead. For its part, Basil Read Developments continues to entrench its reputation for

developing sustainable communities, with a number of landmark developments over the past year. This division is well positioned in the social and gap housing sector where government expenditure over the next few years is expected to increase significantly. It has also extended its urban management experience to provide expert services and capacity-building functions in this area. Given the significant potential for integrated residential developments in the low/middleincome category, both in South Africa and

â&#x20AC;&#x153;Basil Read has taken the initiative by shifting its focus to other parts of Africa where the need for quality construction groups is highâ&#x20AC;?

Accommodation units

94

[ July 2014 ] BE Monthly


Basil Read

First docking of any ship at St Helena

across the continent, the division is exploring a range of opportunities across the continent. Though it may be the smallest of Basil Readâ&#x20AC;&#x2122;s divisions, it has the largest impact with a total economic impact of over R60 billion during construction, creating over 116,000 employment opportunities. For the group, this division is strategically significant, given its focus on sustainable development and the secondary work it creates for group companies. Basil Read Developments continues to focus on its large-scale integrated housing developments, namely those occurring in Savanna City, Malibongwe Ridge and Cosmo City. The combined value of construction work that will be realised over the life of these projects exceeds R4.5 billion. Finally, Basil Read Matomo, the groupâ&#x20AC;&#x2122;s engineering, procurement and construction (EPC) company is rapidly being recognised as a quality EPC service provider in sub-Saharan

Africa, particularly in the mining and energy industries. Across Africa the EPC model is increasingly becoming the preferred option for clients, which offers significant growth opportunities for Basil Read Matomo going forward. The 2013 financial year was very much one of consolidation and stabilisation for Basil Read. With significant prospects, a strong order book and stable balance sheet and a proven ability to expand across the continent of Africa it is understandable that the group is very optimistic about what 2014 and beyond holds for it.

Basil Read

+27 11 418 6300 info@basilread.co.za www.basilread.co.za

BE Monthly [ July 2014 ]

95


96

[ July 2014 ] BE Monthly


Emerging botanical ingredient Ixoreal Biomed Pvt Ltd It took Ixoreal Biomed 14 years of R&D to develop and refine its KSM-66® ashwagandha extract. The hard work and dedication of Ixoreal’s employees have helped make KSM-66® the best product of its kind on the world market today words by

Will Daynes

research by

Peter Rowlston

BE Monthly [ July 2014 ]

97


ometimes referred to by its species name, Withania somnifera, or in some circles as Indian ginseng, poison gooseberry or winter cherry, ashwagandha is a plant of the Solanaceae, or nightshade, family. Typically identified as a short shrub sporting small green flowers and orange-red ripe fruit, ashwagandha tends to be cultivated in many of the drier regions of India and is commonly used as a herb in Ayurvedic medicine. “It was the Ixoreal science team who first sought to introduce to the world the

S

98

[ July 2014 ] BE Monthly

true quintessence of ashwagandha and all its benefits,” states Ixoreal’s CEO, Kartikeya Baldwa. “Convinced that the essence of the ashwagandha root could be extracted without losing its potency, the science team dedicated itself to learning the nuances of plant chemistry and did what no one was able to achieve until then. With Green Chemistry processing, we were able to holistically extract all the root essence while preserving its natural healing potency. This proved to be immensely successful.”


Ixoreal Biomed Pvt Ltd

This uniquely processed ashwagandha today goes by the name of KSM-66® ashwagandha and it has gone on to open up new frontiers for the use of ashwagandha in pharmaceuticals, dietary supplements, food and beverages, and sports nutrition. There are many ashwagandha based formulations available today in the market, however they do not possess a similar level of therapeutic response. This is put down to the absence of sufficient amounts of the ashwagandha’s active phyto-constituents

to deliver a clinically efficacious product. “From the traditional Ayurvedic perspective, ashwagandha’s value is due to an incredibly complex synergy of all its natural constituents,” Baldwa continues. “Reductionists’ efforts to standardize chemical isolates alone of ashwagandha are counterproductive as the process of concentrating a few specific constituents may imbalance the level of other therapeutically useful compounds. To this effect, KSM-66® ashwagandha is different from hydro-alcoholic extracts and other

BE Monthly [ July 2014 ]

99


ashwagandha preparations because Ixoreal’s innovative extraction process, entirely free of chemical solvents and alcohol, does not upset the delicate balance of various constituents found in raw/whole ashwagandha root.” Aside from expressing both the hydrophilic and lipophilic components of ashwagandha, the process also retains and potentiates the synergism of various phyto-active components of the whole root. “Standardised hydro-alcoholic extracts of ashwagandha root might be spiked using withanolides extracted from ashwagandha leaves in order to achieve a moderate to

high percentage of withanolide content,” Baldwa highlights, “however, this is against the very philosophy of ashwagandha usage as prescribed by ancient Ayurvedic texts. The root alone has been advocated for internal usage and not the leaves. Unlike other such extracts, KSM-66® ashwagandha is the only available ashwagandha extract in the world to possess the highest withanolide content derived from roots alone.” This unique extraction processing technology also enabled Ixoreal to achieve superior sensory characteristics by downsizing the bitterness, whereas both raw/whole root

“It was the Ixoreal science team who first sought to introduce to the world the true quintessence of ashwagandha and all its benefits”

100

[ July 2014 ] BE Monthly


Ixoreal Biomed Pvt Ltd

powder and standardized hydro-alcoholic extracts are extremely bitter. In a bitterness test, KSM-66® ashwagandha was found to be the least bitter (three times less to be exact) when compared to other ashwagandha extracts, thus making it a premium choice for food and beverage developers. Ixoreal is understandably keen to emphasis the extreme benefit KSM-66® possesses in a number of cases. Considered to be the most important adaptogen in ayurvedic system of medicine, KSM-66® relieves stress due to presence of vata suppressant properties, which helps in nurturing nervous system, and also helps in preventing early aging and rejuvenates the whole body. KSM-66® increases muscular endurance and helps in building up of stamina, works as a powerful immune booster, helps in promoting calmness and mental satisfaction, improves mental ability, helps in gaining retaining

power and improves mental concentration, and decreases untimely fatigue. Furthermore, KSM-66® is recognised as being a powerful aphrodisiac, is one of the most commonly used herb in relieving hypertension and has also been found to be an excellent supplement that helps in providing strength to heart muscles and keeps the heart working normally. Penetration of KSM-66® has been extremely rapid, with KSM-66® having been included in more than 70 products found in North America, Europe, Asia, Australia and Africa in the last two years alone. This growth has seen the product embraced by a number of leading manufacturers, such as Swanson, Garden of Life, Healthy Directions, 4life, Purity Products, Swisse and Bobybuilding.com. Meanwhile, a search on Amazon.com will highlight that the bestselling ashwagandha is KSM-66®, sold as Ashwagandha Gold by Nutrigold.

BE Monthly [ July 2014 ]

101


Did you know? Phyto-active-nutrient dense KSM-66 ashwagandha offers wide therapeutic benefits. Some of the specific areas of health-related applications of KSM-66 ashwagandha for which interest may prevail are:Anti-ageing support Cognitive support Joint support Sexual health function support Anti-inflammatory support Metabolic support Immune support

“KSM-66® is the only high-concentration extract that is 100 percent organic as certified by USDA”

“Many of the formulators using KSM-66® today had in fact been interested in using ashwagandha for several years but held off because there was no clinically-proven highconcentration root-only extract on the market prior to KSM-66®,” Baldwa says. “Before KSM66®, similar products were typified by being either of low concentration or using parts of the ashwagandha plant other than the root, such as the leaves. For maximum clinical effectiveness, the ashwagandha extract is

102

[ July 2014 ] BE Monthly

Anti-oxidant support Haematopoetic support Free-radical scavenging support

conceptualized primarily as a root extract, not only in ayurveda textbooks, but also in the standard references like the Indian, the British and the U.S. Pharmacopeias.” There are dozens of studies documented in PubMed and conducted by universities and research hospitals, virtually all of which use root-only extracts and no other parts like the leaves. “Conditions within the marketplace which resulted in many formulators being hesitant to use extracts


Ixoreal Biomed Pvt Ltd

containing parts other than the root meant that pent up demand for a product like KSM-66® was able to increase rapidly, and this in turn resulted in our own increase in prominence,” Baldwa enthuses. Another reason for the rise of KSM-66® is that customers like Ixoreal’s dedication to quality in science, clinical trials and production. “We are obsessed with quality here and it is because of this obsession that we consider it very important to control the entire supply chain,” Baldwa adds. “This degree of control means that today we are the only ashwagandha maker that possesses its own farms, production facilities, testing labs, research centre and distribution.” Historically, the supply of the raw ashwagandha plant has been rather erratic, unreliable and uncertain because the local farmers respond to market pressures and grow whichever plants are perceived to be more profitable in that season.

“Ixoreal strives to protect itself and its customers from such uncertainties. It is with that in mind that we decided to take control of our supply chain and make our production processes entirely vertically integrated,” Baldwa concludes. “Ixoreal is the only ashwagandha maker in the world which has its own farms, R&D, testing labs, manufacturing and distribution. Because we own our farms, we are also able to ensure green, sustainable agriculture practices. KSM-66® is the only high-concentration extract that is 100 percent organic as certified by USDA.”

Ixoreal Biomed Pvt Ltd

+91-984-903-0798 info@ixoreal.com www.ksm66ashwagandhaa.com

BE Monthly [ July 2014 ]

103


Golden Veroleum

Liberiaâ&#x20AC;&#x2122;s road o

Golden Veroleum Liberia (GVL) is developing a at once meeting growing global deman words by

104

[ July 2014 ] BE Monthly

John Oâ&#x20AC;&#x2122;Hanlon


um Liberia (GVL)

out of poverty

a sustainable palm oil industry in West Africa, nd and lifting a nation out of poverty research by

Abi Abagun BE Monthly [ July 2014 ]

105


New community housing in Sinoe county

106

[ July 2014 ] BE Monthly


Golden Veroleum Liberia (GVL)

he palm oil industry is nothing if not controversial, and on the whole gets a bad press. Apart from its traditional use in cooking, palm oil is today found in a huge range of food and other products from cosmetics to biodiesel, for which it has been found particularly suitable. World consumption of palm oil is rocketing: compared to levels in 2000, demand is predicted to more than double by 2030 and to triple by 2050. Over 70 per cent ends up in food, but the biofuels industry is expanding rapidly. Indonesia already has six million hectares of oil palm plantations, but has plans for another four million by 2015 dedicated to biofuel production alone. By far the largest producing countries in the world are Indonesia and Malaysia, which

T

in the past, and is held responsible by many for encroachment on tropical rain forests with a negative impact on biodiversity and even climate change. How would it be, he asks, if the lessons of the past could be learned and applied in Liberia, which could enjoy some of the huge economic upside that has transformed both Indonesia and Malaysia, while avoiding the downside that accompanies unsustainable production. Liberia is one of the world’s poorest countries with an average per capita income of around one US dollar a day. It is little wonder that the government seized the opportunity to introduce a new industry that promises to make it prosperous again and help put to rest its recent turbulent history. GVL consulted local communities in 2010,

“I want people to work closely with GVL so that more plants are built and more permanent jobs created” President Ellen Johnson Sirleaf

between them have 1.4 million hectares under plantation, producing 7.5 million tonnes per annum – nearly 92 percent of global production. Africa contributes vanishingly small amounts, though the oil palm elaeis guineensis is native to West Africa and has been produced and traded locally since time immemorial. Liberia does not feature at all on the league tables. But that is going to change, with the entry of GVL into the market. In 2009, GVL was invited by the Liberian government to explore the potential for investment in the country. From the outset, says communications director Virgil Magee, the approach has been one of partnership. He admits that the industry has become associated with poor practice

and development was widely welcomed. Now there is a strong movement from community groups keen to develop their land and place it under oil palm. However any development must be sustainable. The biggest issue thrown up by large scale oil palm cultivation is associated with the loss of virgin forest. Industry efforts to bring this deforestation under control have come through the Roundtable on Sustainable Palm Oil (RSPO), set up in 2001 to establish clear ethical and ecological standards for producing palm oil. Its members include major food companies like Unilever, Cadbury, Nestlé and Tesco, as well as palm oil traders such as Cargill and ADM. Between them, these companies represent 40 percent of global palm oil trade. However,

BE Monthly [ July 2014 ]

107


GREENCONS provides a wide

range of technical expertise including but not limited to Environmental Impact Assessment, Environmental Management Plan, Environmental Audit, Monitoring & Evaluation, Socio-economic surveys, Resource Analysis, Ecological & water resource surveys and High Conservation Value Assessment etc. GreenCons services deliver professional and long lasting value, understanding and appreciating the environmental and social standards our clients must meet with quality and strong commitment. Our relationship with GVL dates since 2011, providing support through ESIA and HCV assessment to ensure sustainable development. This support is enhanced by the Companyâ&#x20AC;&#x2122;s commitment to continual improvement and desire to uphold regulatory compliance.

Contact us: Cell: +231 777-001933 T: +231 886 530870 E: solopwt@yahoo.com, info@greenconsliberia.com

108

[ July 2014 ] BE Monthly


Golden Veroleum Liberia (GVL)

this does not go far enough for GVL which applies a far tougher Forest Conservation Policy which was developed in collaboration with leading international N GOs , including Greenpeace. GVL’s aim is to address the real problems of Liberia. The country is losing up to two percent of its forest cover every year, not thorough palm cultivation but through poverty. Some 70 percent of the population is involved in slash-and-burn farming. Despite efforts to introduce more sustainable ways to live off the forest, poverty is the biggest threat to biodiversity, leading to illegal logging, mining and burning charcoal as fuel. And with the breakdown in society following the conflict years of the 1990s there are few jobs available so 80-90 percent of the population depends on the forest. GVL operates on principles set down by the RSPO, and engages with communities on the basis of free, prior and informed consent (FPIC), the principle that a community has

Green Consultancy Inc Green Consultancy Inc (GREENCONS) is a Liberian owned and registered environmental consultancy. The firm was established and registered in April 2009 with a mission to support sustainable development in the promotion and creation of sound environmental practice in every area of development. GreenCons was awarded “OUTSTANDING ENVIRONMENTAL GROUP OF THE YEAR 2011/2012” by Africa Watch Newspaper on World Environmental Day, June 5, 2011. info@greenconsliberia.com

Liberia Equipment Ltd Liberia Equipment Ltd is your authorized dealer for Caterpillar equipment and parts in Liberia. Our 85 people-team sells and supports a comprehensive range of equipment: Caterpillar (construction, mining and power systems), Olympian generators, Hyster handling equipment, compressors. With a stock of genuine parts, well-equipped workshops and a technical training center, Liberia Equipment Ltd also provides a wide range of services, from diagnosis to complete after-sales solutions. Our dedicated multi-cultural teams of qualified employees are committed to service, available at all times to deliver the right solution to each of our customers. www.jadelmas.com

Sinoe county memorandum of understanding (MOU) signing

BE Monthly [ July 2014 ]

109


the right to give or withhold its consent to proposed projects that may affect the lands they customarily own, occupy or otherwise use. FPIC. It is now a key principle in international law and jurisprudence related to indigenous peoples. However there is a lot of degraded forest in the country, says Magee. “We have to carefully identify that and when we negotiate with the community we go through a process called participatory mapping which is part of the FPIC process. “We get together with the farming communities and they show us what areas

they would like developed, and also specify where they would not like development.” Interestingly enough GVL’s task is not so much to persuade the community to permit development as to curb their enthusiasm. “We have had areas where communities have wanted us to develop, but under our guidelines we can’t touch it because it is primary forest, supporting endangered species for example or throwing up other conservation concerns.” With a 65 year concession from the Liberian government, GVL is making slow

“We get together with the farming communities and they show us what areas they would like developed, and also specify where they would not like development”

Golden Veroleum Liberia cadet training program

110

[ July 2014 ] BE Monthly


Golden Veroleum Liberia (GVL)

American educator Elizabeth Johnson donates books to GVL school

but steady progress. It currently is different ethnically and Did you know? has just 3,000 hectares (or linguistically, he emphasises, and approximately 7,400 acres) under each negotiation is like starting cultivation, which may seem over again. 65 years small when you consider that But the system works. The GVL’s Liberian up to 500,000 acres have been latest MOU signed in April government designated for development, following an FPIC process with concession with an additional 100,000 acres the Numopoh administrative for smallholder development for area in Sinoe County includes 2016 local communities. However in a social agreement going well First production every case it is necessary to go beyond the matter of oil palm from GVL’s through a process of community cultivation on 1,566 hectares, to plantations negotiation that can take from include developmental aspects six months to a couple of years. such as school and clinic “We just signed a memorandum construction, road building and of understanding (MOU) with a community in refurbishments, provisions for safe drinking Garraway in Grand Kru County for a further water, scholarships, adult literacy training 1,800 hectares, he says.” That was concluded and employment. As part of the agreement relatively quickly but every community Liberians will be given employment regardless

BE Monthly [ July 2014 ]

111


Medical care at GVL clinic in Sinoe county

112

[ July 2014 ] BE Monthly


Golden Veroleum Liberia (GVL)

“The government is not able to fund the infrastructure we need, so we are happy to take up that challenge” of any tribal affiliation. It is noteworthy that GVL willingly employs ex-combatants who might otherwise not engage peaceful and legal economic activities. It takes three years for the plants to start fruiting. Production of oil from the plantations will start in 2016. The company is building its first modern crude palm oil mills at Tarjuowon, a site visited by President Ellen Johnson Sirleaf in March this year, on which occasion she encouraged local people to accept and embrace GVL’s efforts to bring employment, skills and infrastructure to their communities. “I want people to work closely with GVL so that more plants are built and more permanent jobs created,” she said. GVL was invited in 2013 to develop oil palm operations, roads and a site for an oil palm factory in the area by Tarjuowon communities. This is a strategically placed site from whence the processed oil can easily be transported to the coast and shipped from a port facility that GVL is building near the Sinoe capital Greenville. Over recent years GVL has constructed or rehabilitated several hundred miles of roads in both Sinoe and Grand Kru Counties, including the Butaw-Philip Pantoe Village Roadway in Tarjuowon, the Greenville-Butaw Highway and the PanamaKlanedaye Road in Sinoe County. GVL also reconditioned the Unification-Sonouhn Town Roadway, the Lexington-Greenville Highway, among others. Though it is not working pro bono, like an NGO for example, GVL is investing heavily in Liberia. “The government is not able to fund the infrastructure we need, so we are happy to take up that challenge. Yes, we are planning to export, and when that happens

we can start to earn foreign currency for Liberia, but the first market we will address will be Liberia itself, freeing it from the need to import, then West Africa, then the rest of the world. Liberia is actually much better placed geographically than SE Asia to supply the Americas and Europe.” Liberian palm oil will have the edge in terms of price, he points out. He could have added that, being a native species, its cultivation will have a lower impact on the ecology, and very probably flourish better in the soils and climate with which it is familiar. The remaining years of this decade have been well planned. 2016 will bring together the first harvests, the completion of the mill that will turn the seeds into oil and crucially the return to Liberia of the engineers who have been sent to learn the technical side of large-scale palm oil production in Indonesia. They will join those Malaysian and Indonesian engineers currently working in Liberia, says Magee. “They will be ready to run the new facility as junior managers and provide the country with a level of expertise it doesn’t have yet.” Down the road, the children studying in GVL schools will contribute to a new generation of qualified Liberians, he hopes, with institutions like the school at the company’s Wakefield Nursery in Butaw, also in Sinoe, taking the lead.

Golden Veroleum Liberia (GVL)

info@goldenveroleum.com.lr @goldenveroleum www.goldenveroleum.com.lr

BE Monthly [ July 2014 ]

113


ITâ&#x20AC;&#x2122;S TIME TO FOCUS ON YOU

Commercial Publishing Services Introducing our new commercial publishing services team Would you like to have your very own corporate magazine or newsletter? We can help you with your publishing needs from CSR, Sustainability or annual investor reports to your employee or shareholder handbooks. Whatever you need, we would love to help

[ Click here to find out more ] or email [ mday@bus-ex.com ]

Profile for Business Excellence Magazine

BE.Monthly  

July 2014

BE.Monthly  

July 2014

Advertisement