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ISSUE No. 87 |

WEEKLY EDITION How to make employees happy? Top ten causes of work place conflict


Flying through turbulence CEO Erik Venter explains how Comair Ltd defies the economic headwind


goldcorp éléonore mine:

Mangaung Municipality:

n an ow R e is dis ex an gis te c cl d te 23 r@ ou us re r 77 iq nt ive ce 1. pc . E 1 ive 00 .a m 5% 1_ e q ai BE u l 2 otin g

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contents 6

In brief

The week that was

In this section you’ll find news, views and comments as we take a look back at the last seven days.



How to make employees happy?

Invest in your employees and this will make for happier and more productive workers.


top ten

Top ten causes of work place conflict

Whether it’s a clash of personalities, or you’ve fallen victim to poor communication, we list the top ten causes of work place conflict.


[ Issue 87 ] BE Weekly


Be Weekly [ Issue 87 ] 52





Mangaung Municipality

COver story

18 Comair

Flying through turbulence Comair Ltd continues to deliver operational excellence and consistent profitability in what can only be described as an economic headwind: its CEO Erik Venter explains how.


Gelibolu Shipyard

A titan among Turkish shipyards Gelibolu Shipyard has been delivering expertly designed turn-key vessels for the better part of four decades.


Optimising operations For the past two decades Meglab has been providing leading edge solutions, services and products to the mining industry, and boasts a track record that speaks for itself.

Growth on a global scale One of the most geographically diversified companies in the mining industry, Nordgold is looking to follow up a prosperous 2013 with further growth this year.

The heart of South Africa A spate of important developments, initiatives and infrastructure projects are contributing to the city of Mangaung living up to its position as the “heart of South Africa” and 2014 will see the “city of roses” blossom further still.

Goldcorp Éléonore Mine

Well ahead in the final furlong Goldcorp’s Éléonore project in northern Quebec is a copybook example of how to develop a new mine in a sensitive environment by pulling together best practice in every aspect.

68 BE Weekly [ Issue 87 ]


Winners & losers

Ups and downs in the week that was... Toyota Net profit doubles for the year to $17.8 billion thanks to the yen’s weakness and cost cutting

UBS Reports better than expected first quarter results with an increase of 6.7% which surprised analysts

Amazon Launched Amazon Basket, a tool to purchase goods via Twitter hashtags

Lonmin Earnings plunge to $34 million following month long employee strike

Nintendo Poor console sales of the Wii U with 6.17 million units sold result in annual losses

Barclay’s Bank Announces 14,000 jobs to be lost this year


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Bayer Are to pay $14.2 billion for Merck’s consumer care business

Alibaba Seeking to raise $1bn as they file for what could be the biggest public share sale ever

China Exports and imports rebound in April, easing slowdown fears

Orange customers Hackers steal personal data of 1.3 million Orange customers in France

Publicus and Omnicom Officially call off $35 billion merger which would have created the world‘s largest marketing and advertising agency company

Indian government Reliance, Niko and BP file arbitration notice against Indian government over gas prices

in brief

China and Kenya sign co-financing deal to build Nairobi Mombasa railway On May 11th the Chinese Premier Li Keqiang, together with leaders of Kenya, Uganda, Rwanda and South Sudan as well as representatives from Tanzania, Burundi and the African Development Bank, witnessed the signing of the agreement. President Uhuru Kenyatta and Chinese Premier Li Keqiang led regional heads of states including presidents Yoweri Museveni of Uganda, Paul Kagame of Rwanda and Salva Kiir of South Sudan in witnessing the signing ceremony at State House, Nairobi. Speaking at the signing ceremony, President Li said the presence of the African leaders and their representatives demonstrated African countries’ common desire to develop railway network in East Africa. China, he said, is ready to share its technology and experience in railway construction with all parties and cooperate with them in project design, construction, equipment, management, personnel training and financing. The Chinese premier said interconnection in East Africa and in Africa generally will fundamentally boost economic the development of African countries. During his Africa tour, Li had said that China is willing to join hands with Africa to build the continent’s networks of high-speed railway, expressways and regional aviation. The Mombasa-Nairobi railway is an important part of those networks, he said. The standard gauge railway deal – which will lead to the construction of a 609 kilometre railway line – will cost Sh327 billion ($3.7 billion). China will finance 85 per cent of the total cost through Export and Import (Exim) Bank of China while Kenya will pay the remaining 15 per cent through the railway levy charged on imported goods.


“Interconnection in East Africa and in Africa will fundamentally boost economic the development of African countries” President Uhuru Kenyatta thanked China for its development commitments in Kenya and other African countries. He said the signing of the agreement marked the end of the “lunatic express” — the old railway line built by the British during the colonial era using 32,000 workers brought in from India. “What we are doing here today will most definitely transform the course of development not just for Kenya but the whole eastern African region,” President Kenyatta told crowds at the ceremony. “As a result East Africa will become a competitive investment destination ... a busy growing East Africa is good for us a country.” According to plans, the new lines would see passenger journey times cut from the current twelve hours to around four. Freight trains are expected to be able to cut the current 36-hour trip by rail to just eight, a major boost for regional landlocked nations, with planners claiming it will slash cargo transport costs by 60 percent.

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Is Apple about to spend big to capture the beat? Reports claim that the technology giant could be prepared to pay as much as $3.2 billion for the headphone maker and musicstreaming service provider, which was founded by music

producer Jimmy Iovine and rapper Dr Dre. If completed, the deal would become Apple’s largest ever acquisition and is being seen as a move by the company to cement itself

further in the phone and music accessories business, while also bolstering its online music offerings, two areas that are predicted to see massive growth in the coming years. News of the potential deal has left a number of analysts to question the move however, what with there begin a large overlap of customers between the two firms. The price being reported also represents a huge premium on Beats’s previous valuation. The company was valued at just $1 billion after its last funding round in September, which saw it get a $500 million investment from the Carlyle Group.


Landmark moment for India’s aviation sector AirAsia India is a budget airline set up by AirAsia, one of the continent’s largest lowcost carriers, and India’s Tata Group. India opened up its aviation market to foreign investment in 2012 in an attempt to boost growth in the sector and the overall economy. India has seen a surge in demand for air travel in recent years, making it one of the faster-growing aviation markets in the region. However, in an attempt to capture a bigger share of the growing market, airlines have been slashing their fares to attract more customers which, coupled with volatile fuel prices, has hurt their profits. AirAsia says it is planning to offer fares in


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India far lower than those of competitors. Mittu Chandilya, chief executive of AirAsia India, said it was working on being “the lowest-cost” airline in the country. He also said he was confident the airline would be able to make money despite lowering the fares.

in brief

Best from the web this week

We’ve done the searching, so you don’t have to! ted talks

How to rob a bank (from the inside, that is)

William Black William Black is a former bank regulator who’s seen firsthand how banking systems can be used to commit fraud — and how “liar’s loans” and other tricky tactics led to the 2008 US banking crisis that threatened the international economy. In this engaging talk, Black, now an academic, reveals the best way to rob a bank — from the inside. Watch it now

business week


Energy-saving technologies cutting firms’ fuel bills

Here’s One Way to Help Prevent Another Jet From Disappearing Justin Bachman Read the rest

Lucy Fisher and Matthew Wall Electricity costs have doubled for businesses over the last decade, says energy saving body the Carbon Trust, pushing sustainability issues to the top of the agenda. But these days “going green” is as much about business survival as reducing impact on the environment. Read the rest

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How to make employees happy? Invest in your employees and this will make for happier and more productive workers Words by

Marielena Sabatier



n surveys, people often say they want more money and shorter hours, but these are just hygiene factors, it stops them from being unhappy, but it doesn’t engage them. Engagement and motivation comes from having the right leaders and a good workplace culture and leaders who value their employees. Nowadays, work is so integrated into our lives that it is important to feel motivated and fulfilled. To achieve this, leaders need to create a sense of purpose and vision. A sense that what people are doing really does matter. There is plenty of hard evidence that shows that happy employees lead directly to better performance and higher profits. In other words, invest in your employees and this will make for happier and more productive workers. Below are some of my top tips on how to create a culture and workplace that is happy, dynamic, fun, wildly productive and highly profitable. 1) Pay fairly Money is a hygiene factor. It doesn’t make people happy, however, unfair pay can make people feel unhappy and demotivated. Smart leaders pay people well. This is non-negotiable. 2) Deliver good benefits Whether it’s a good health plan, childcare, transportation, a fitness center or free lunch on Fridays, benefits make people’s lives easier and better. They feel appreciated and cared for, which leads to increased loyalty and a willing to go the extra mile. 3) Keep an open leadership door — and an open mind Numerous studies have down that when management is approachable and responsive, employee engagement soars. People spend a big chunk of their lives at work, and when they feel voiceless their frustration grows.

4) Share the profits When employees share in the good times, their investment in the company grows and they will be far more likely to work hard — and to dig deep during the not-sogood times. 5) Make your workplace fun This doesn’t have to be cheesy bonding days out. It is merely about encouraging people to bring their personalities, quirks and passions to work. This leads to an increasingly seamless work/life mesh, a sense that people can really be themselves at work. Games, laughter, fun are great stress relievers, they renew and refresh us, and build very real bonds between employees. According to a Gallup poll Friendship is one of the 12 questions that is correlated to happiness and engagement in the workforce. Friendship helps people work better at work as they support and care about each other. Work is a long part of our days and it needs to be fun. People are happier when they feel they are adding value, when they feel they are trusted and valued and when they feel their work has a purpose. There is the story of a Janitor cleaning Cape Canaveral when the rocket was going to the moon. A news reporter asked him what he did, his answer was to help people go to the moon. It just showed how purpose made his job important to him.

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.

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Top ten causes of

Words by

Chris Meredith


nless you have the patience of a saint, you’ve probably come across someone at work whose personality clashes with your own. Or, maybe you’ve just fallen victim to poor communication from your fellow colleagues or been distracted by their inappropriate work wear.   Here, Chris Meredith CEO of  explains the top ten causes of work place conflict. >>>

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10 Not doing the washing-up It’s hard to believe that this is one of the top ten causes of work conflict, but there always seems to be one employee who doesn’t do their fair share. It’s unfair to assume that only the most junior of staff should hold the tea and coffee duty, and it is important to make sure you take it in turns. Why not draw up a rota, which will ensure everyone knows where they stand and does their fair share. Failing that, invest in a dishwasher.


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Top ten



Annual leave There are rules around when you can take your holiday due to others booking time off first. There’s always going to be a popular period to go on holiday, particularly if you have children, and it’s important to recognize that everyone in the office is just as much entitled to it as you are. If there is a specific time that you desperately want off make sure you book it up ASAP to avoid disappointment and quarrelling with colleagues.

Inappropriate clothing This is a colleague who treats every day as an opportunity to impress with a series of short skirts or low cut tops. Or, if they’re male, they turn up with one too many buttons undone.   Appropriate work place dress is extremely important as it helps employees respect each other. Also, if you’re meeting clients or business partners it is imperative that you make a good impression.

6 Office romance

8 Brown-noser There’s always that one coworker who is a little bit too chummy with the boss. Every office has someone who brazenly sucks-up for a promotion, and it’s difficult not to be annoyed when they get what they want. The key to combating conflict with a brownnoser is to not get embroiled in their business. Maybe they actually deserved that raise. Resist the urge to chat with work allies around the water cooler and instead focus on doing your job to the best of your ability.

Flirting between two employees can be both annoying and uncomfortable. Therefore it is important to recognize that if love does blossom in the office it should stay duly out. If you’re in an office whirlwind romance yourself it’s also important to make a conscious effort to treat all your colleagues the same. On the otherhand, if you’ve found yourself sat in the middle of shameless Ping-Pong of bad flirting, speak up. It’ll soon open the lovebirds’ eyes to the awkwardness it’s causing everyone else.

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5 Competitiveness There’s always someone in the office who seems to want to do everything better than everyone else. Maybe they’re after a promotion, or maybe they just want to prove that they’re the best. Either way, their constant campaigns to outdo everyone in their path can be both undermining and aggravating. It’s best to try and focus your efforts on your own work instead of worrying about other people. If you’re doing the best you can do then your efforts won’t go unnoticed.

3 Clash in personalities The nature of a work place means you’re thrown into the deep end with people who you might not otherwise socialize with. There will always be some sort of disagreement on matters in the office because everyone has their own view, and it would be a very dull place if everyone thought the same. However, making sure you know when to hold back your opinion is key.

2 Two faced colleagues

4 Slackers A slacker’s desk is covered in dust and they pull one to many sickies for it to be believable anymore. Or, maybe they’re the one whose lunch hour turns into the whole afternoon. Whichever one, it’s never nice to feel like you’re doing all the work.


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They know everything there is to know about everyone, and seem to be best of friends with each and every person in the office. They’re overly nice, but always seem to have the latest gossip.  Talking about your colleagues behind their back, no matter how annoying is a disaster waiting to happen and it’s one of the biggest causes of office conflict.   If you’re not impressed with the way a colleague is acting tell them you don’t want to get embroiled in other people’s business. It’s best to stay out of the politics.

Top ten

1 Poor Communication A fellow employee who fails to deliver vital information across is a big problem and can cause plenty of problems.   Good communication is key when it comes to working in a team. If someone doesn’t communicate well or fails to send down the right message, people will start to get annoyed at their incompetence. Be clear, concise and make sure you keep to the point when passing on information and you’ll be fine.

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Flying through turbulence Comair Comair Ltd continues to deliver operational excellence and consistent profitability in what can only be described as an economic headwind: its CEO Erik Venter explains how words by

John Oâ&#x20AC;&#x2122;Hanlon

research by

Stuart Platt

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British Airways operated by Comair Boeing 737 800

ho would invest in an airline? The industry is facing a lot of challenges right now with escalating fuel prices, reduction in passenger volumes caused by the global recession and arguably the growth of technology that allows people to communicate and confer without the need to travel. These are things that affect airlines all over the world, but in South Africa life is even more challenging for a private sector airline operator that



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has to compete with the heavily subsidised national carrier South African Airways (SAA) and its low-cost brand Mango. The government, by taking a largely anti competition stance and allowing SAA to increase capacity in a shrinking market, has done no favours for the industry. Such is the environment in which Comair operates. Dating back to 1946 the JSE listed company has been successfully operating in southern Africa for nearly 70 years. Since


“We don’t have to go through major change management programmes every time we want to make an improvement!”

1991 it has been operating local and regional services under a licence agreement with British Airways, and in 2001 it launched South Africa’s first no frills airline kulula. com. Erik Rudolph Venter, a chartered accountant, joined the company 20 years ago and has been the Chief Executive Officer of Comair Ltd since 1 December 2011. He is a pragmatist, and entirely sees the point of the banks and investors who tell him they would never invest in the airline industry. “I

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Air Traffic and Navigation Services (ATNS) State-Owned Company (SOC) In our 21 years of existence, we have seen the growth of the South African and global aviation industries. We have faced a myriad of challenges. And we have achieved notable and significant milestones along the way. Be that as it may, we have discovered the most innovative ways of delivering world-class safety and operational performance. ATNS is very concerned about the current aviation crisis resulting from the economic downturn, and how this could affect relations between ANSPs and airlines. Recognising the need to support the airline community in its efforts to reduce costs, we have since agreed to seek short-term initiatives, in close collaboration with our clients, including Comair. ATNS has also noted that airlines require reliable information, such as ATM and other ATM-related trends and developments. In this regard, ATNS is transparent at all times and offers proof of active cost and efficiency management to all its clients. ATNS regularly interacts with COMAIR on all relevant operational matters. The two organisations have worked closely on numerous projects, such the implementation of the RNAV (GNSS) procedures at the King

Shaka International Airport in Kwa-Zulu Natal. As is procedure, the regulator requested trials to be conducted before these procedures could be implemented. Following a well-defined programme of action (POA, this process was undertaken without a glitch. Still on procedures, Lanseria Airport Management has contracted ATNS to design instrument flight procedures for its new runway, which includes the Advanced RNP procedures. These procedures enable aircraft to access airport with terrain and airspace limitations. This is a first of its kind in Africa. Kulula - a low cost airline under Comair - is currently trialing the Advanced RNP and preliminary results indicate that these procedures will be approved for use at Lanseria Airport - in the last quarter of this year (2014). This is an exciting milestone for which Lanseria Airport management should be commended. In the main, the airline operators will benefit significant by using the advance RNP, in that it will reduce the operating costs, noise and CO2 emissions. operates daily flights from Lanseria International Airport to Cape Town, and Durban. ATNS continues to serve the ATM community by deploying leading technologies with foresight,

â&#x20AC;&#x153;ATNS regularly interacts with COMAIR on all relevant operational matters. The two organisations have worked closely on numerous projectsâ&#x20AC;?


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as well as on the continual improvement of safety levels. We have prioritized sustainable development by minimizing our own carbon footprint, and seek to continue developing and helping our stakeholders to minimize the environmental impact of their operations through flight efficiency programmes and other best practice initiatives. While our Vision is to be the preferred supplier of air traffic management solutions and associated services to the African Continent and selected international markets, our mission, that of providing a safe, expeditious and efficient air traffic management solutions and associated services, has been a building

block in our quest to capture the market share within the continental aviation sphere. To all our valued stakeholders, engagement and collaboration are deeply embedded in our quest to keep our skies safe. And that is through proper maintenance of sound relations with them. The effective maintenance of such carries with itself proper understanding of the “issues” that we are addressing. And that’s exactly what we’re doing with Comair. +27 11 607 1000

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Comair ticketing staff

wouldn’t invest in a fund of airlines either!” So is he in the wrong job? Not a bit of it. Comair not only outperforms other airlines but a lot of other industries that are not seen as high risk. It has an astonishing record of declaring an operating profit in every one of its 68 years of existence, remarkable enough in itself but quite extraordinary in the South African climate of the last few years. So think again, investors, he says. Look at the company not the industry! The chief explanation he has for Comair’s success is its people. “We hold on to people for a very long time. Long service awards for ten years service or more are held by about 25 percent of our staff at any one time. There is a lot of experience here compared with our competitors in the market.” And the reason they stay is related to the flexibility and adaptability to change that is at the heart of the corporate culture. In the aviation industry more than most, he believes, it is essential to build that flexibility into people’s contracts and instil a continuous improvement mindset: “Everyone is used to the fact that things are always evolving, and we don’t have to go through major change management programmes every time we want to make an improvement!” People and the flexibility they bring to the company are probably the two main reasons Comair has dealt so well with the volatility of the airline market says Venter. The cost environment has imposed a harsh discipline on airlines and not all have been able to adapt. “Look at our 14 year history since 2001: costs have risen by about 168

“We hold on to people for a very long time. Long service awards for ten years service or more are held by about 25 percent of our staff at any one time”


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British Airways operated by Comair Boeing 737 800

percent against a consumer of products such as the Did you know? price index rise of around 98 prestigious Executive Club frequent flyer programme. percent in South Africa over Some years ago there were a the same period. At the same 68 number of similar franchise time the average air fare has Profitable years arrangements round the world, increased only by 37 percent, for Comair though now Comair is one of so we have had to close that only two airlines to remain in gap and that requires constant 26 the scheme. “It has been a very innovation and improvement.” Boeing planes successful arrangement both More efficient aircraft, better in its fleet for Comair and for BA in South route planning, working with air Africa – we are able to make traffic management to improve all the operational decisions landing patterns, saving weight and tailor the service to local requirements, on the aircraft – these are all strategies that while benefiting from the reputation of the have been adopted. top brand in the business.” Comair’s full service offering is flown In 2001 Comair added another brand, in the livery of British Airways (BA) under the low-cost, green-liveried a licence agreement dating back to 1996. (slogan: Full-on Travel). Today most of the The British Airways brand brought with it popular domestic routes in South Africa are a rich heritage of stylish travel, reputation served by both carriers. The major routes for service excellence and a wide range

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are Johannesburg to Cape Town (the tenth busiest route in the world with 4.5 million passengers a year), Johannesburg to Durban, Durban to Cape Town and Johannesburg to Port Elizabeth. “After these,” says Venter, “the numbers get smaller, especially when we look at the various African destinations we serve, though some, like Harare, Mauritius and Victoria Falls are quite busy.” He is constantly looking for new opportunities. There is undoubtedly a lot of growth taking place within many economies

of sub-Saharan Africa, but it is growth from a low base, he warns, and even respectable percentages resolve into low volumes. “I don’t think Africa is quite there yet in terms of potential for passenger volume growth. A lot of hurdles remain to be overcome.” A cautious approach to expansion that will sustain the company’s profitability record. More immediate returns are being generated in cer tain aspec ts of diversification. Taking a travel business approach Comair is developing its revenue

“It has been a very successful arrangement both for Comair and for BA in South Africa”

Kulula Boeing 737-800 in flight


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Happy staff stading in front of the new airport ticket counters at OR Tambo International Airport

streams from car hire, hotel bookings and other value added services. “That segment of the business is starting to grow quite nicely. We have done a successful job of developing our airline lounges and we see possibilities in developing conference facilities and dedicated lounge facilities for other partners.” The company has also set up its own catering facilities at Johannesburg and Cape Town and is applying for licences to do third party catering for other airlines, he adds. “We are finding we can run a much more efficient catering operation than some of the legacy catering businesses were able to provide.” Another important revenue stream over the years has been third party pilot training. With simulator facilities for Boeing aircraft as well as ATR regional jets, Comair can offer

training at a much better rate than anything available in Europe or the USA. This is a service with potential for expansion. But Comair understands training. “We have to train almost everyone ab initio for Comair whether front line staff, finance staff, or cabin crew.” Extensive facilities at the Comair training centre next to O.R. Tambo International Airport provides the knowhow and instils the soft skills vital to the Comair culture. As with any airline Comair needs to keep its assets up to date, and this is the largest area for investment, with an ongoing programme to completely renew the 26 strong Boeing fleet, or at least the 18 that it owns rather than leases. Though it’s a big balance sheet item the replacement of Boeing 737-300s with the larger 800s resulted in a 15 percent increase in capacity that was a major factor

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Flight simulator at the Comair Training Centre (CTC)


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“We are finding we can run a much more efficient catering operation than some of the legacy catering businesses were able to provide”

in the 23 percent rise in revenue over the first half of the current financial year. Being more fuel efficient these aircraft also offset escalating fuel prices. Four new Boeing 737800s were introduced into the kulula fleet last year, and four more will be delivered by the end of 2015 followed by further orders by 2020, he says. Another important ongoing investment is in the migration to a new enterprise solution platform. Says Erik Venter: “We have implemented the Sabre airline solution system, which has already delivered benefits both in revenue and cost efficiency. The basic inventory hosting went live in July 2012, though that in itself does not deliver huge benefits. It’s the bolt-on modules that bring measurable efficiencies. We have been continually adding improvements and new functionality over the last 24 months and will continue to do that.” As with any ERP platform, there’s huge suite of upgrades and new products to choose from – Comair will avail itself of the most relevant functionality. These days TV and newspaper advertising are in rapid decline, with the rise of instant access to news and the ability to skip ads when watching programmes by satellite. Social media have stepped into the resulting space, and Comair is determined to make full use of the new platforms. “It’s essential to keep up to the minute with what is happening in that space especially in Africa with the reliance of so many people on mobile devices to stay in touch. It is a whole new way of thinking and requires a very different strategy. You get instant response from customers and

instant feedback compared with the old ways of communicating with customers.” It has meant getting social media addicts onto the marketing team, who understand the dynamics of the twittersphere: “People respond at 3.00 on a Sunday morning, and by 8.00 you have a trend growing across social media channels – if you are not alive 24/7 you will miss it!” As the last remaining independent privately owned domestic scheduled airline operator in South Africa Comair has a responsibility to its employees, customers and shareholders to secure a level playing field in what is after all an over-traded market, concludes Erik Venter. While in no way challenging the position of SAA nor arguing it should not be subsidised, he feels that it should share the risk as well as the rewards, and be subject to the same rules of competition that protect the industry in other jurisdictions. Things may change after the general election in May but even in the present climate the message is loud and clear – Comair is a great investment, as proved by its confident declaration of an interim dividend based on its results in the half year to December 2013 – resulting in a ten percent rise in its share price.


+27 (0) 11 921 0111

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A titan among Tu

Gelibolu Shipyard has been delivering expertl of four decades and with its order book filli words by


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Will Daynes



urkish shipyards

ly designed turn-key vessels for the better part ing up, 2014 is set to be another great year

research by

Peter Rowlston BE Weekly [ Issue 87 ]



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Gelibolu Shipyard

ying in close proximity to Gelibolu, along the coast of the Dardanelles, one will find Gelibolu Shipyard. A present day reminder of the historic links this part of Europe has to the maritime sector, Gelibolu Shipyard is a family owned newbuilding yard founded in 1975. One half of Aksoy Shipping Group, it specialises in the building of smallto-medium sized sea and river going vessels for its ship chartering sister company, Ali Riza Aksoy Denizcilik. Gelibolu is located at the base of the peninsula named after the town, which juts out from the Thracian mainland and extends for about 50 kilometres in a northeast-southwest direction between the Straits of Dardanelles and the Gulf of Saros, an inlet of Aegean Sea. From Gelibolu eastwards, the Straits widen into the Sea of Marmara. The site of the earliest Ottoman shipyards and navy headquarters, Gelibolu has always been a seafaring town, once serving as the capital of the Ottoman province that occupied most of the Aegean islands, all the way down to Crete. Today, due to its strategic location, Gelibolu is a garrison town, with a substantial part of its surface area consisting of military camps One of the facets of the business that Gelibolu Shipyard benefits most from is its relationship with Aksoy Shipping Group. This Turkish charterer has achieved wide success in the local market through its dedication to reliability, quality, and innovation. As a result of this relationship activity at the shipyard has remained at a steady pace and this has given the companyâ&#x20AC;&#x2122;s engineers the time to construct the modern vessels it has become so well known for. Spread over a total area of approximately 50,000 square metres, the shipyardâ&#x20AC;&#x2122;s facilities include three slipways of 30 metres by 130 metres and approximately 8,000 square metres of enclosed construction workshops with various cutting, bending, welding and shaping machines. From its facilities


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Gelibolu Shipyard

“From its facilities the shipyard’s engineers are capable of constructing vessels of up 150 metres in length and with a beam of approximately 30 metres” the shipyard’s engineers are capable of constructing vessels of up 150 metres in length and with a beam of approximately 30 metres. Gelibolu Shipyard’s experienced and loyal workforce has a strong track record of building and delivering turn-key vessels of all types, from small work-boats to fully automated ocean-going vessels of the highest standards. Examples of this work includes dry cargo carriers, product and chemical tankers, container ships, supply boats, tugs, accommodation barges, ferries and

landing craft. Each and every member of the shipyard’s workforce has helped the company fashion for itself a reputation for excellence when it comes to the quality of its products, its ability to deliver on schedule and for the way it always strives to keep the promises it makes to its customers. Gelibolu Shipyard understandably takes great pride in the high quality of its ships and their components. A perfect example of this would be the REMAS, a 75-metre offshore diving support vessel featuring diesel-electric

BE Weekly [ Issue 87 ]


Gelibolu Shipyard

â&#x20AC;&#x153;The future of Gelibolu Shipyard, like any other yard or associated business, will depend heavily upon the status of the chartering market internationallyâ&#x20AC;?

propulsion, Dynamic Positioning Class II and an environmentally friendly design, which is now owned and managed by leading offshore contractor, Micoperi. The vessel has been specifically crafted for accessing and operating in the Caspian Sea and also possesses a hull that has been designed for river passage, with shallow draught and four point mooring capabilities. The future of Gelibolu Shipyard, like any other yard or associated business, will depend heavily upon the status of the chartering market internationally and the levels of activity

BE Weekly [ Issue 87 ]


Offshore Commercial Shipping Yachting

As every boatman knows, anchors and chains must be replaced now and then. You need strong, good looking anchors and chain cables to finish your new build or your super yacht, to replace the old or lost anchor or chain cables. Wortelboer has what you have been looking for. We have been a reliable partner in the shipping industry for more than 50 years. And that is why our customers keep coming back for more!

Weekly Because a month is a long time to wait... Your weekly digest of business news and views 40

[ Issue 87 ] BE Weekly

Gelibolu Shipyard

that it experiences over the coming months and years. While there is clearly something of an oversaturation of vessels in certain sectors of the maritime industry, including those in which Gelibolu Shipyard specialises in, it is the companyâ&#x20AC;&#x2122;s belief that the flexibility it possesses will allow it to adjust accordingly to service those sectors of the market where demand remains stable or strong. The sector where increased demand is confidently predicted to rise in the short to medium term is the offshore sector. This is because of several factors, not least of all the continued resilience of oil and gas prices, the new discoveries being made in this field and the surge in offshore wind farm developments in countries pushing for greater sources of renewable energy. Each of the above developments offers a company like Gelibolu Shipyard, with

its hard-earned reputation for excellence and quality, fresh opportunities for growth and thus opens up the possibility for an exciting future. This exciting future is in further evidenced in the fact that the companyâ&#x20AC;&#x2122;s order book today finds itself in an increasingly healthy state. With increased traffic entering the yard and a growing demand for its services, Gelibolu Shipyard looks set to ride this wave of prosperity through the rest of 2014 and beyond.

Gelibolu Shipyard

(+90-286) 576 81 39

BE Weekly [ Issue 87 ]


Goldcorp Élé

Well ahead in the

Goldcorp’s Éléonore project in northern Que a new mine in a sensitive environment by p words by


[ Issue 87 ] BE Weekly

John O’Hanlon

ĂŠonore Mine

e final furlong

ebec is a copybook example of how to develop pulling together best practice in every aspect research by

Robert Hodgson BE Weekly [ Issue 87 ]



[ Issue 87 ] BE Weekly

Goldcorp Éléonore Mine

t’s really not long since we last spoke to Éléonore’s energetic site manager Guy Belleau, but in the space of little over eight months – eight months with a severe Canadian winter in them by the way – the site has changed beyond all recognition. Belleau has lost none of his infectious élan. “We are on the last stretch now. I can smell the gold. We promised we would be pouring gold in the last quarter of this year and that is what we will be doing!” Let’s run through some of the things that have happened. Almost all the buildings are up now, he says. All the necessary permits for construction have been awarded. All the contracts have been placed. The exploration shaft is fully operational. The ramp that will bring the ore to the surface is down deeper than 700 metres, while the production shaft


to 20 years. “We are doing lots of diamond drilling to continue to promote resources to reserves and also to allow the definition of our first stopes where we are going to do our first production blast in April. We are currently drilling on a number of new exploration targets.” It would seem that much of the activity there is preparing the workforce for the ramp up to production. “There is a huge amount of training going on, both on the site and off site, so that we can get ready for the commissioning and the operation of the Éléonore mine.” His passion – for once the word is justified – for recruiting the best people and developing their skills to the utmost remains undiminished. “We are very busy with recruitment and training. It is an intense process but it gives us lots of joy!”

“We are on schedule and in-line with our latest capital cost forecast. Everything is progressing as we planned it” itself has reached 700 metres. “We are on schedule and in-line with our latest capital cost forecast,” he says with emphasis. “Everything is progressing as we planned it.” A visitor to the site would now find just 600 construction workers, busy completing the plant, the water treatment plant, as well as the administration building, garage and warehouse. Winter has not yet released its grip on James Bay, but much of this work is being done inside already completed structures. The construction teams are part of a total workforce present at site that now stands around 1,300 people. As well as building a mine and its infrastructure, Goldcorp needs to make the most out of this asset, which is open at depth and is thought to contain resources that will extend its life and productivity well beyond its nominal 15

This is where operational and HR best practices come together in a way he is happy to explain. “I would say we are building one of the best gold mines in the country, if not the world. It is going to have a strong emphasis on technology and world class equipment. The best in class equipment attracts best in class people! We have many applications for every job we advertise.” In the last year, to prove this point, 10,000 resumés have been submitted, so no wonder he finds it a daunting task, but it is a task that is already paying off. “We were successful in appointing the best people in the first batch – and the best people attract more of the same! People want to join Goldcorp for its reputation and the quality of the people they know they will be working with here.” Of course these aspiring employees are

BE Weekly [ Issue 87 ]


One-stop shop solution from 5 to 120,000 volts challenges Meglab, a designer and manufacturer of electronic and electrical equipment, as well as instrumentation and control systems, is an outstanding engineering service partner also offering installation, training and after-sales customer support services. Our competent professionals come up with custom solutions and deliver turnkey projects to optimize the development and operation of plants, underground mines and open pit mines. Our vast array of products and services is what distinguishes Meglab from competition. Housing under the same roof a mastery of technologies working with voltage ranging from 5 to 120,000 volts and the capacity to design and engineer integrated solutions has made Meglab a leading supplier in the mining and timber industry. Meglab has been active in research and development from its first years in operation. Its inventions meet specific needs of the industry and have rapidly contributed to set a reputation of excellence.

Our toll-free number 1877 833-7710

Goldcorp Éléonore Mine

“Safety comes first and last every time, in the training programme and out in the field it is always the same topic. Quite simply, safety takes care of our people”

further motivated by their knowledge that they will have a decent lifestyle and, not to put too fine a point on it, creature comforts. The camp where they live has been extended, with 400 new rooms added recently. Each has its own en-suite shower and washroom, flat screen TV with on-demand movies and a queen bed. It is, he claims, a world class installation like a five star hotel. “In my opinion we can stand alongside any other mining facility in the world. That is part of our strategic plan: to recruit and retain the

BE Weekly [ Issue 87 ]


best people there are in the industry and give them best in class equipment to work with and the best in class training in its use – but that all starts with a best in class camp!” One thing is missing from that list and it is safety. Safety is more than just a priority, it is a core value, he insists. “Safety comes first and last every time, in the training programme and out in the field it is always the same topic. Quite simply, safety takes care of our people.” The site’s safety record,

which has improved progressively by 20 percent in each of the four years since the project started, is another powerful magnet attracting all those resumés. Continuous improvement thinking is central to the way he runs the site. There have been countless improvements related to safety as part of a comprehensive CI program called Operating for Excellence, or O4E. This targets each one of the six pillars of Goldcorp – people, safety, partnerships,

“We are always trying to do things better and smarter. We welcome change with open arms. Even though we think we are doing well in a particular area we are always raising the bar and asking our people how we can do it better”


[ Issue 87 ] BE Weekly

Goldcorp Éléonore Mine

O4E projects were undertaken, production, reserves and Did you know? and 14 more projects have been margins, though the three ‘soft’ pillars – the ones beginning added this year already tackling 10,000 with P – drive the others in his issues related to aviation, Applications in opinion. “We are always trying underground development, the last year for to do things better and smarter. surface transportation, fuel jobs at Éléonore We welcome change with open efficiency, air efficiency and arms. Even though we think we propane efficiency among 1,300 are doing well in a particular many others. “We have a People currently area we are always raising the huge playground to improve, working on site bar and asking our people how even at this stage. When we we can do it better.” Not even start the plant there will be the kitchens escape scrutiny. plenty more but already we Last year costs were reduced are using fuel, tyres, propane significantly through better inventory and all kinds of supplies; we are using underground explosive, drilling tools, management, but it’s not there yet: the target is a green cafeteria generating zero waste! carrying out maintenance and breaking rock During 2013, he points out, more than 45 day after day. Increasing productivity and

BE Weekly [ Issue 87 ]


“Éléonore will end up a low cost mine, profitable at current prices or worse, and it will start producing on schedule bar a meteor strike” efficiency and reducing costs improves the business for our shareholders.” We spoke at length last year about the partnership with the Cree nation of Wemindji and the other communities that the mine affects. That partnership is the foundation of the mine’s success so far and into the


[ Issue 87 ] BE Weekly

future. Businesses continue to be set up and supported within the community, to add to the ones we highlighted earlier. The company is looking at sourcing such necessities as health and safety equipment, drill bit sharpening services and the manufacture of core boxes locally, providing more job

Goldcorp Éléonore Mine

opportunities in the Wemindji. Outsourcing to Cree-owned companies is altogether feasible. Air Creebec continues to carry out 90 percent of personnel movements and BCC Construction has been engaged for much of the building work, while Tawich Construction, a specialist in mining and civil work, has been one of Goldcorp’s preferred contractors throughout the project. Currently there are some 400 Cree workers on the site either working directly for Goldcorp or its contractors. Éléonore will end up a low cost mine, profitable at current prices or worse, and it will start producing on schedule bar a meteor strike. But as we have seen it didn’t get here

by accident. Last summer Guy Belleau sent the entire workforce home for more than a week as a precautionary measure when forest fires came close. “They were not that near, but I did not want to take any chances,” he says. Needless to say the lost time was quickly made up.

Goldcorp Éléonore Mine

819 764-6400 @Goldcorp_Inc

BE Weekly [ Issue 87 ]



Optimising op

For the past two decades Meglab has been and products to the mining industry, and words by


[ Issue 87 ] BE Weekly

Will Daynes




n providing leading edge solutions, services boasts a track record that speaks for itself

research by

Richard Turner BE Weekly [ Issue 87 ]


he company itself commenced operations in 1994 with only a small handful of employees, focusing at that time on electronic products, repairs on remote control system, lights and radios,” explains Marc Lamothe, Business Development Manager for Meglab. “When our President, Louis Valade, bought into the company in 2005, bringing with him some 30 years of mining experience, he quickly set about establishing a whole new electrical division within the company. Subsequently the business grew, employing more people and establishing the other Meglab divisions, all while ensuring the company maintained its core vision, that being the establishing of long term relationships with major national and international customers.” Meglab specialises in custom manufacturing, turnkey project management and integrated problem solving. Its mission is to identify, design, manufacture and install innovation electrical and electronic solutions that are tailored to the unique needs of its industrial customers. These solutions are used to achieve three core objectives for said customers, namely, optimising the pace of production, reducing operating costs and ensuring a safe working environment. “The work of our company over the last 20 years has proven first hand that the key to long-term success is the forging of good


“The work of our company over the last 20 years has proven first hand that the key to long-term success is the forging of good working relationships”


[ Issue 87 ] BE Weekly

Open pit 25kv substation for Osisko Power distribution for electric shovels


“Our focus is to hire good people who are able to service our customers in the way that they expect”

working relationships that are based on trust,” Lamothe continues. “Our focus is to hire good people who are able to service our customers in the way that they expect and to communicate with them in order to identify their individual goals, budgets and timelines. The result of this hard work is the development of products or solutions that are tailor made to fit the customers’ needs.” Meglab essentially acts as a complete onestop service and solutions provider, and is able to call upon the services of a group of employees who collectively possess a wealth of experience in various fields of expertise. Together these employees have contributed towards the company’s ability to develop an industry leading portfolio of products, many of which are unique to Meglab. Such products include its MicroCage, MicroGuide, ScoopCam and MicroData solutions, each of which has been utilised numerous times over the years to provide invaluable services to some of the most complex and remote operating mines. What Lamothe highlights as being one of the best examples of a good working relationship between Meglab and a customer is that which the company holds with Goldcorp’s Éléonore project, located in James Bay, Canada. Here Meglab employees can be found located on site on a 24/7 basis, handling all of the underground mine sites’ electrical and electronic design and engineering requirements. “We have just recently returned from our latest visit to the Éléonore project and I was blown away at how much of a presence our

BE Weekly [ Issue 87 ]


products and people have on site there, and the relationship between workers and staff,” Lamothe enthuses. “Just by walking around the site and seeing the Meglab trademark everywhere, on products controlling air volume, monitoring equipment and people, and generally helping to provide a safer working environment, you can see the fruits of what has become a true partnership and relationship between the two parties.” Such has been the success of this particular relationship that it has in fact recently been extended with Meglab to provide electrical and electronics technicians to the project. “In addition to the extension of our relationship with the Éléonore project our plans for

the future revolve around showcasing our success here and expanding our presence to other Goldcorp projects,” explains Ben Levac of Meglab Technology. “Goldcorp recognises the value we have helped add to the Éléonore project and we plan to visit their AGM in Vancouver during May and hold a presentation at their corporate office where we will showcase the company to the various mining managers in charge of Goldcorp’s other assets.” In addition to its work with Goldcorp, Meglab’s employees can be found working on several other important projects, such as Osisko and their open pit. Power distribution in the pit and PLC fab in the mill, others include

“Everything we do revolves around innovation and our belief that we should never stand still”

Typical Meglab All in one U/G substation / electrical distribution container in service at Goldcorp Eleonore 625 level


[ Issue 87 ] BE Weekly


PLC unit Milling controls (Osisko)

wireless technology to the shaft sinking activities in over 120 shaft compartments in mines, along with mine contractors and engineering firms. “At present we are working with the operators of various projects to best identify ways to implement wireless technology into their communication and belling systems. Power distribution, coordination protection, safe grounding and line harmonic reduction are part of the issues we help our customers resolve. Budget pricing is important with starting new projects, and our knowledge of the complete needs enables us to answer promptly while including all aspects. ” Lamothe says. “Ultimately our goal is to develop partnerships with our customers as the one we have at the Éléonore project whereby we eventually become the principle provider of electronics and electrical components.” In the meantime the company will continue working to not only establish a presence

across other Goldcorp projects but also improve on what it has already achieved at the Éléonore project. “Everything we do revolves around innovation and our belief that we should never stand still,” Lamothe concludes. “What we have achieved at the Éléonore project to date has been possible through the high expectations of our customer and their support, and indeed has been a success story in itself. We consider ourselves, and are considered as partners in lasting relationships with our customers. Aiding each other to achieve and surpass expectations, evolving with the times.”


819 824-7710

BE Weekly [ Issue 87 ]



Growth on a

One of the most geographically diversi Nordgold is looking to follow up a prospe words by


[ Issue 87 ] BE Weekly

Will Daynes



global scale

ified companies in the mining industry, erous 2013 with further growth this year

research by

Robert Hodgson BE Weekly [ Issue 87 ]


stablished in 2007, when Severstal Group, one of Russia’s most successful metals and resources corporations, decided to move into the gold market, Nordgold has since become recognised as one of the industry’s fastest-growing gold mining companies with operations based in West Africa, Kazakhstan and Russia. It was in 2008 that Nordgold, which until then had only been operating in the CIS, acquired a controlling stake in High River Gold Mines Ltd, a Canadian company which held a number of assets in Russia as well as in Burkina Faso. The Taparko mine and Bissa exploration project, both in Burkina Faso were among these assets. Following the positive results Nordgold achieved with turnaround project at Taparko the company decided to proceed with the development of Bissa. The secret to Nordgold’s rapid rise has been a combination of acquisitions and organic investment. Today the company operates nine mines, has one development project, five advanced exploration projects and a diverse portfolio of early exploration projects and licences. Together these assets not only provide employment for over 10,000 workers but also contributed to Nordgold’s gold production increasing to 924,000 ounces in 2013 from 717,000 ounces in 2012. Nordgold’s mission, which clearly it has taken great strides towards achieving already,


“The company insists that success for Nordgold is about more than just gold and that its values run much deeper than effective gold production”


[ Issue 87 ] BE Weekly

Lefa Mills


“One of the company’s major targets for this year is for all of its operating mines to be free cash flow positive by the end of 2014” is to create consistent growth throughout its operations, thus delivering value to its shareholders and all other stakeholders. Nevertheless, the company insists that success for Nordgold is about more than just gold and that its values run much deeper than effective gold production. In addition to this, it constantly strives to ensure that its employees know that their safety is the company’s utmost priority, that it earns and retains the trust of the investment community, that it contributes to the communities in which it operates and that it does its part in looking after the environment. While it is a young company, Nordgold has grown very rapidly and in doing so has been forced to meet the challenges that any expanding mining company would face head on. In the time that it has done so, Nordgold has embraced the realisation that, in order to truly fulfil its potential and reach the next stage of its development, it needed a clear vision as to how it honours the values it is committed to. As the employer of thousands of men and women, Nordgold understands all too well that it bears the responsibility of ensuring their safety and providing a good quality of life for them and their families. Nordgold states that one of its aims on a daily basis is to provide an environment in which its people can realise their potential in conditions that are both comfortable and safe. The company seeks to

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BUILD YOUR NEXT PROJECT WITH WEST AFRICA’S LEADING EPCM CONTRACTOR Together with Nordgold, Lycopodium delivered the Bissa Gold Project in Burkina Faso Lycopodium’s reputation for successful project delivery to world class safety and environmental standards makes Lycopodium the ‘first choice’ partner for any mining project. We work globally with our clients to provide fit-for-purpose engineering solutions in mining and mineral processing. • • • • • •

Feasibility Studies Process Design Engineering Project Management Construction Procurement

For more information contact:

Karl Cicanese Group Manager - New Business E: T: +61 8 6210 5222


be an employer of choice in the communities in which it operates and to hire the very best people in the industry. The hiring of individuals, particularly those from within local communities, plays its part in Nordgold’s aim to support community development. Being a responsible member of the local communities in which the company operates is a central merit of the way it does business. Indeed, it sees it as a vital part of its role to invest in those communities and help them develop. As part of its efforts Nordgold brings in electricity, water, infrastructure and transport. In many areas, it also assists the local population in gaining access to education and health services. The company is focused on mutual respect and dialogue with local communities and government organisations, and meets all of its legal and tax obligations. Last, but by no means least, is the company’s commitment to taking care of the environment. Nordgold’s recognises the fact that it operates within a hazardous industry, however in doing so it makes every effort to take the utmost care in ensuring that it causes little if any damage to the environments in which it works.

Burkina Faso - support of local business initiatives - Weaving

lycopodium Lycopodium has a significant success record in the development and commissioning of projects, often pioneering the introduction of modern process plants and associated technologies to remote and logistically challenging locations. The company has an international reputation for delivering projects which consistently meet or exceed all project criteria and performance targets. Lycopodium’s experience in Burkina Faso and the West African region comprises over 30 projects, including the Bissa Gold Project for Nordgold. This provides Lycopodium with the advantage of recent and relevant project development experience in West Africa, including knowledge of logistics, contractors, and community. The company has been active in the mineral processing industry for

over 20 years and has designed and built processing plants starting at throughputs from 350,000 tpa to 55 Mtpa. Their history in mineral processing and mining, coupled with the proven capabilities of their low cost value-adding design and drafting, provides the ability to offer their client a cost effective project outcome. Lycopodium has also produced a unique and successful model for the execution of projects in Francophone Africa, which has been developed over a number of projects. Lycopodium employs dual French/English translators with local capabilities and connections, ensuring the smooth delivery of information and clear communications to facilitate the successful delivery of projects.

BE Weekly [ Issue 87 ]



Drilled piles

Since 1992, FTE Drilling maintains a constant and active presence in the mining sector in Canada and West Africa. Whether it is for exploration projects or for mines already in exploitation, FTE Drilling offers services ranging from core sampling (RAB – RC – DD) to grade control to help mines increase their productivity.

The economic development of Canada involves the construction of infrastructure in very difficult places, sometimes. That’s why, over the years, our clients are asking us to meet challenges. FTE Drilling has developed an enviable expertise in vertical and angle piling or caissons in small and large diameters. From the new construction to the maintenance of existing infrastructure, in coastal environment as in the heart of the most major centers, FTE Drilling is proud to contribute to the expansion and maintenance of Canadian work.

Sherbrooke :

Montreal :

Nova Scotia :

Quebec :

Burkina :

Senegal :

Togo :




Vegetable production at Bissa community

“A very significant key to our success over the last 15 years has been the renewed partnerships with aboriginal communities” One of the company’s major targets for this year is for all of its operating mines to be free cash flow positive by the end of 2014. It intends to achieve this by applying a forensic approach to cost management, diligent capex spend and working capital optimisation. Despite significant recent gold price volatility, Nordgold consolidated operations remained FCF-positive in 2013 with consolidated all-in sustaining costs reported at US$1,062 per ounce for the same period. A combination of Nordgold’s flexible capex, estimated to be US$200 million

in 2014, reduction of general and administrative expenses, improvements in operational efficiency, as well as the on-going implementation of Nordgold’s Business System, which is expected to add US$55 million to 2014 EBITDA, are keys to ensuring the company remains focused on driving down costs. Nordgold’s efficiency programmes are also showing positive results with growing plant and fleet productivity at key mines, while the company has also successfully reduced consumption of key materials and

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Bissa Crashing


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â&#x20AC;&#x153;Going forward the company will seek to develop the existing pipeline of high quality greenfield and brownfield projects through focused exploration expenditureâ&#x20AC;? administrative expense. Furthermore, it has significantly strengthened its senior operational management team, making new hires with proven expertise. This is expected to help Nordgold to progress with its on-going efficiency improvement initiatives. Nordgold has an extensive pipeline and a proven track record of greenfield development. A perfect example of this would be the Bissa mine, which was launched on time and on budget and has significant exceeded initial production forecasts. Going forward the company will seek to develop the existing pipeline of high quality greenfield and brownfield projects through focused exploration expenditure. To supplement the organic growth pipeline, Nordgold will also seek to capitalise on other opportunities through the evaluation of potential purchases of premium-quality reserves and resources, which comply with its project criteria, to further enhance its reserve base.


+31 20 406 4480

BE Weekly [ Issue 87 ]


Mangaung M

The heart of

A spate of important developments, initiatives and infrast living up to its position as the â&#x20AC;&#x153;heart of South Africaâ&#x20AC;? a words by


[ Issue 87 ] BE Weekly

Will Daynes


f South Africa

tructure projects are contributing to the city of Mangaung and 2014 will see the â&#x20AC;&#x153;city of rosesâ&#x20AC;? blossom further still research by

Stuart Platt BE Weekly [ Issue 87 ]


Free State Botanical Gardens in Bloemfontein


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Mangaung Municipality

ith a name meaning “place of leopards” in the language of Sesotho, Mangaung, also widely referred to as Bloemfontein, is the capital city of the Free State Province of South Africa and one of the country’s three national capitals. Officially founded in 1846, “the city of roses”, as it is affectionately known due to both the abundance of the flowers in the city and its annual rose festival, is today home to approximately 370,000 people, while the Mangaung Local Municipality boasts a population of more than 645,000. Last year was a very significant year for the city of Mangaung in that it reaffirmed its position as being what it proudly dubs, “the heart of South Africa”. It has long been the belief of the city that it is mandated to


tackle the problem head on and bring an end to underground pipe leaks that have cost Mangaung considerable sums of money in years gone by. As with any major city, Mangaung also has to deal with the issue of crime, particularly that which occurs within its booming Central Business District. To ensure the safety of its inhabitants and visitors, the city has gone about installing CCTV cameras at strategic points in all major towns and at several entertainment hot spots. Together with its established law enforcement centres and continued traffic police visibility, this has helped Mangaung in its fight against crime. In its efforts to make Mangaung the ideal city in which people can live, work and invest, the municipality has developed an extensive

“It has long been the belief of the city that it is mandated to deliver excellent service to the men, women and children who reside there” deliver excellent service to the men, women and children who reside there. Not unlike other municipalities across the country, Mangaung faces daily service delivery challenges, for instance backlogs in areas such as housing, water, sanitation and unemployment. In order to combat said issues the municipality has identified a number of possible interventions, for example identifying areas of land in areas such as Vistapark, Ceciliapark, at the airport and Hillside View to accommodate the rising demand for housing. Water pipe leaks have historically been a source of lost revenue within the city. To address this, South Africa’s Minister of Water Affairs has committed to assisting it in financing programmes designed to

Spatial Development Framework (SDF), which is aimed at improving the lives of Mangaung residents, while attracting investors and those seeking better opportunities – from businesses and schools, to pleasure and leisure pursuits. The projects earmarked under the SDF include the N8 Corridor Development and the Bloemfontein Airport precinct development. New industrial development and human settlements will predominantly be taking place towards the east of Bloemfontein, particularly along the vicinities of the N8 Development Zone. The municipality promises that the N8 Corridor Development Project will be one of the most significant investment opportunities that will guarantee jobs to many residents

BE Weekly [ Issue 87 ]


Navigating Commercial Law Poswa Incorporated (Poswa Inc) is a medium-sized wholly black-owned law firm committed to breaking new ground in commercial law, balancing close attention to detail with a wider worldview. The firm was established in March 2010 by its founder and CEO, Luyolo Poswa. It is a progressive law firm which provides services across all aspects of commercial law, including the structuring of transactions, negotiation and drafting of agreements, legal opinions and legal due diligences. Poswa Inc also offers conveyancing and notarial expertise as well as general legal advice and litigation through commercial, civil and labour spheres. Poswa Inc’s head office is based in Johannesburg and they have expanded their national footprint to operating offices in Bloemfontein and Durban. Poswa Inc’s proven track record spans over 90 years of combined legal experience in the corporate, private and financial sectors – Through specialist insight and personalized service, they focus on tailor made legal solutions that broaden business horizons.

Johannesburg office: Bloemfontein office: 1st Floor Block A Palm Park 1 Sandton Close 2 Suite 7 Cnr. 5th Street and Norwich Close 94 Kellner Street Sandton Westdene Johannesburg Bloemfontein Tel: +2711 783 8877 Tel: +2751 430 0296/7

Durban office: Business Centre 2 Ncondo Place Ridgeside Umhlanga Ridge Durban Tel: +2731 830 5369

Mangaung Municipality

and contribute towards building a better life for all. The envisaged development at Naval Hill is expected to become one of the municipality’s world-class recreational facilities and tourism destinations that will give the local economy a great boost in the years to come. Similarly, through the ongoing development of the Bloemfontein Airport, Mangaung is working hard to position itself as one of a number of emerging aero-cities in the country. The proposed Bloemfontein Airport precinct, to the south of the airport entrance, is a multi-billion rand infrastructure and property development project that has already commenced with the implementation of the first phase. The project comprises the development of an international convention centre, a government complex, a regional shopping mall, and an array of sustainable housing typologies. It is being viewed as an opportunity for discerning property investors to widen and improve their investment portfolios. The municipality is keen to stress that youth are the core of its economy and its future prosperity, hence their development is a priority for Mangaung. Whatever the plan, the municipality wants to ensure that these plans do not exclude young people, as well as women and children. Some of the important projects being undertaken include a new furniture factory run by youth, firefighters training at Ehrlich Park Fire Station and youth centres.

“The municipality is keen to stress that youth are the core of its economy and its future prosperity”

poswa During January 2014, Mangaung Metropolitan Municipality appointed Poswa Inc as its sole legal counsel for the establishment of its DMTN Programme and inaugural note/ bond issue. The establishment of its DMTN Programme will facilitate an alternative way of raising finance as opposed to borrowing from commercial banks through the medium of conventional loans and facilities and will create a platform through which the Municipality can issue notes/bonds in the domestic market. Poswa Inc is proud to be instrumental in the establishment of the DMTN Programme for the Municipality and looks forward to an on-going relationship with the Municipality.

Ariel view of the City of Bloemfontein

BE Weekly [ Issue 87 ]


Bloemfontein Supreme court


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Mangaung Municipality

“Mangaung Municipality aims to work continuously in order to fast-track service delivery and grow the economy of the city”

To augment its vision for Currently, the city’s flagship Did you know? the city, the municipality has housing project is the soonalso commenced with several to-be-occupied Brandwag 370,000 huge water and sanitation Housing Project, a mixed Population of the housing project for middle projects. It is also improving city of Mangaung income earners who are not the city’s road infrastructure, which is particularly important eligible for state housing but 645,000 because Mangaung is a cannot access bank loans. Population of the central link for South Africa. Land has also been earmarked Mangaung Local Specific individual projects in certain areas in and around Municipality include the construction of Mangaung for future mixed the Naval Hill Water Reservoir development initiatives, which to supply water to the east of will encompass residential Bloemfontein, the extension units ranging from low income of the capacity of the Longridge Reservoir, and rental to social and commercial initiatives. and road rehabilitation, construction and The city’s tourist attractions include maintenance of major roads including Naval Hill, whose status was further elevated Andries Pretorius, Eeufees, Church, Haldon upon the unveiling of the Nelson Mandela and Fort Hare Streets. statue last year and an overhauling of the An amount of R436 million has been area to make it even safer. Naval Hill gives budgeted for roads and storm water, tourists a bird’s eye view of the sprawling sanitation, waste management and water city of Bloemfontein. projects for the period of 2013/14. Through Through its various ongoing programmes, these projects and many others, 2,823 job Mangaung Municipality aims to work opportunities have been created, with 802 continuously in order to fast-track service of those being permanent. delivery and grow the economy of the city. The municipality is particularly proud that Above all else it will ensure that all the strides since the dawn of democracy, it has been made in 2013 do not fall away and that 2014 able to provide more than 176,000 stands and beyond will be even better! or households with access to sanitation, while more than 155,000 stands have access Mangaung Municipality to basic water supplies in Bloemfontein, Botshabelo and ThabaNchu. 0800 111 300 One of the objectives in terms of housing developments is to earmark the city for social integration, eradicate informal settlements and consolidate dysfunctional settlements.

BE Weekly [ Issue 87 ]


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Issue No.87


Issue No.87