BE.Weekly

BUSINESS EXCELLENCE Issue 93 | www.bus-ex.com

WEEKLY EDITION

Managing the cybersecurity challenge - Boards must be able to hack it!

Why leaders need to ask for feedback

TRESCA

Lighting up the isthmus Bringing power to Guatemala’s most remote communities Tata Zambia:

North american nickel:

GDC:

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 Contacts Editorial 0203 4399362

☎

editorial@bus-ex.com

Design 0203 4399360

☎

studio@bus-ex.com

Finance 0203 4399355

accounts@bus-ex.com

☎

Sales 0203 4399355

☎

coming soon

Zambia Special report <<< more info

sales@bus-ex.com

MANAGEMENT TEAM Matt Johnson Art Director mjohnson@bus-ex.com Sharon Rooke Finance Manager srooke@bus-ex.com Matt Day Head of Operations & Technology mday@bus-ex.com

Madagascar Special report more info >>>

Andy Turner Chief Executive aturner@bus-ex.com

contributors Robin Murray Brown Tyzack Marielena Sabatier Inspiring Potential

subscriptions & enquires info@bus-ex.com

Jacquard House, Queen Street, Norwich, NR2 4SX. England Registered in the UK: 9037437 UK VAT registration: 190 7190 02 The content of this magazine is copyright of Hill Top Business Media Ltd. Redistribution or reproduction of any content is prohibited. © 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 6

In brief

The week that was

In this section youâ&#x20AC;&#x2122;ll find news, views and comments as we take a look back at the last seven days.

10

technology

Managing the Cybersecurity Challenge - Boards must be able to hack it!

With the increasing occurrence of cybersecurity breaches, what must executives do to find the optimum formula to prevent future violations.

14

leadership

Why leaders need to ask for feedback

Leaders who ask and receive feedback can utilise it as a vital ingredient for their own development.

4

[ Issue 93 ] BE Weekly

10

Be Weekly [ Issue 93 ] 34

Geothermal Development Company (GDC)

A vision for Kenyaâ&#x20AC;&#x2122;s future Electricity derived from geothermal resources will play a key role in Kenya achieving its Vision 2030 objectives. Responsibility for this rests on the shoulders of the GDC.

42

Primefuels

50

Tata Zambia

COver story

18 TRESCA

Lighting up the isthmus Guatemalaâ&#x20AC;&#x2122;s energy network is undergoing a benevolent revolution that is bringing power to the Central American countryâ&#x20AC;&#x2122;s remote communities, transforming lives and catalysing business development.

26

North American Nickel (NAN)

Put a lot more nickel in The resource that North American Nickel (NAN) expects to define this summer on its Greenland property could be a game changer not just for Greenland but for the countries that depend on this vital metal to develop their industries and infrastructure.

Fuelling growth Primefuels has taken advantage of every opportunity to provide a much needed logistics service across East and Central Africa and has grown into a partner for major mining, aviation and O&G customers.

A deep partnership The Tata group has a long-standing association with Zambia which it chose many years ago as its gateway into Africa: its strategy is to leverage strong customer focus in diverse markets.

50

BE Weekly [ Issue 93 ]

5

Winners & losers

Ups and downs in the week that was...

Apple Apple reports quarterly profits of $7.75 billion, up by twelve percent, helped by strong sales of its iPhone.

Boeing Boeing’s profits from April to June were boosted by ‘strong’ commercial aircraft sales: profits rose 52% to $1.65 billion over last year.

Pepsico Pepsico shares rose sharply following positive results - it raised its earnings forecast for the year.

Microsoft Reports Nokia losses are behind a 7% fall in profits to $4.6 billion in Q2.

GM Recalling an additional 717,949 vehicles, and as a result its earnings have slumped.

Ticket buyers Six men charged in scam connection for defrauding eBay’s Stubhub of about $1m.

6

[ Issue 93 ] BE Weekly

Spanish jobs The unemployment rate has fallen below 25% for the first time in two years.

Start-ups PayPal Working Capital fund will launch later this year advancing cash to UK small businesses.

Real Madrid Spanish football club has topped an annual Forbes list of the world’s most valuable sports teams.

GSK Shares in drug maker GlaxoSmithKline are down 6% after its profits were hit by a fall in sales and the strong pound.

ECB The website of the European Central Bank has been hacked, with personal information stolen. #german police are investigating.

Alstom Alston Network, a UK subsidiary of the French engineering group, has been charged with corruption by the Serious Fraud Office (SFO).

in brief

manufacturing

Base metals surge in value The prices of zinc, nickel and aluminium were among the front runners as base metals showed gains averaging 1.2 percent Zinc and aluminium prices reached unexpected levels on July 21 with zinc hitting a seven year high. London Metal Exchange zinc futures on the London Metals Exchange (LME) have risen to $1,255.50 a tonne - a price not reached since November 1997. Demand for the metals is driven by China which, as we have reported recently, has indicated aboveexpectation performance results in manufacturing and construction. AME Mineral

Economics has said that world zinc consumption could rise 260,000 tonnes in 2005, resulting in a global deficit of 280,000 tonnes.

China consumes about one-fifth of the worldâ&#x20AC;&#x2122;s zinc, and analysts estimate that demand from China will rise by up to 18 percent in 2005.

Globally its primary use is for coating steel and rustproofing in the automotive industry â&#x20AC;&#x201C; and it is commonly used to galvanise exposed metal products (see photo).

Aluminium prices rose by two percent to more than $2,000 a tonne on the LME, the strongest since the end of February 2013.

Even nickel recovered from earlier weakness to rebound 1.1 percent to hit $18,872 a tonne, though nickel prices are expected to continue to struggle. Nickel was one of the worst performing metals in 2013 due to oversupply and feeble demand, but it has recovered well over the course of this year. Prices rose sharply as Indonesia, one of the worldâ&#x20AC;&#x2122;s leading nickel ore suppliers, placed a ban on exports of minerals, raising supply chain concerns. However, nickel prices could come under pressure in the coming year thanks to uncertainty over the Indonesian political situation and other geopolitical factors.

BE Weekly [ Issue 93 ]

7

IMF sends a mixed message

economics

The International Monetary Fund has cut its forecast for global economic growth this year from 3.7 to 3.4 percent but raised its outlook for some economies The contraction in the economy of the United

States to an annual rate of 2.9 percent in the first three months of 2014 has caused the IMF to predict just 1.7 percent growth this year, the weakest since the recession ended five years ago. Introducing the new forecasts, the IMF’s chief economist Olivier Blanchard (pictured) said: “The recovery continues, but it remains a weak recovery, indeed a bit weaker than we forecast in April.” The reduction also reflects a number of downgrades to the outlook for several other individual economies.

The IMF referred to ‘geopolitical tensions’ in Russia – principally fall out from the Ukraine conflict – downgrading its growth prediction for the year to 0.2 percent from an earlier World Economic Outlook forecast of 1.3 percent, and one percent in 2015.

However a large part 8

[ Issue 93 ] BE Weekly

of the downgraded forecast is explained by temporary factors, such as harsh winter weather and a slowdown in inventory restocking in the United States. In a separate report published on Wednesday, the IMF said it expects the US economy to recover in the April-June quarter to a 3.5 percent annual rate.

Growth should remain above three percent in the second half of the year, it said.

The UK economy is markedly bucking the trend, having regained prerecession levels of output, and the IMF has increase its 2014 growth prediction from 2.8 to 3.2 percent.

The British Chancellor George Osborne commented: “Today the IMF has upgraded their 2014 forecast for the UK by more than any other major economy. The government’s long-term economic plan is working.

But the job is not yet done and so we will go on making the assessment of what needs to be done to secure a brighter economic future.”

Spain may not have emerged quite so completely from its slump but its unemployment rate fell to its lowest level in two years in the second quarter, data showed yesterday, lifted by strong job creation in the services sector and adding to hopes of a sustained economic turnaround. Spain’s IMF forecast has also been revised upward by three percentage points this year to 1.2 percent and by six in 2015 to 1.6 percent Consumer spending in China has declined as the government has tried to cut lending levels, the IMF said. Growth in China will likely be 7.4 percent this year, down from the IMF’s 7.6 percent forecast in April. It will slip further, to 7.1 percent, in 2015.

in brief

Best from the web this week

We’ve done the searching, so you don’t have to! techcrunch.com

inc.com

The First Trillion-Dollar Startup

By Rhett Morris Although many people are familiar with Fairchild’s success, few know the full extent of its impact. During the last year, our team at Endeavor Insight has traced the story of Fairchild and gathered intriguing new data.

We uncovered something that was quite surprising: if the value Fairchild created is measured in today’s dollars, we believe the firm would qualify as the first trillion dollar startup in the world.

Read the rest

forbes.com

How To Work Much Faster

3 Employees You Should Fire Immediately

By Jayson Demers Read the rest

By Siimon Reynolds Working quickly is one of the most important characteristics of the high performing business person.

You can be highly intelligent, motivated and experienced, but if your output is slow then you’ll never reach your potential.

I’ve outlined three simple, yet exceedingly effective techniques to improve the pace at which you work.

Read the rest

BE Weekly [ Issue 93 ]

9

Managing the cybe

Boards must be

With the increasing occ breaches, what must e optimum formula to p Words by

10

[ Issue 93 ] BE Weekly

Robin M

ersecurity challenge -

e able to hack it!

currence of cybersecurity executives do to find the prevent future violations

Murray Brown

BE Weekly [ Issue 93 ]

11

T

he increasing occurrence of cybersecurity breaches – such as the recent case at eBay when it is believed more than 145 million user accounts were infiltrated – is causing executives around the globe to seek ever more sophisticated solutions to prevent future violations . As they review their procedures, tighten their operational environment and add additional levels of security, finding the optimum formula is still proving elusive.

Advances in security architecture and cyber-defence tactics have helped address some risks, but they are inefficient and unsustainable when faced with the more adaptive, embedded and interconnected capability of the current threat. Strengthening network resilience is important but management responses seem overwhelmingly reactive. The criminal cyber threat is nimble and intensely focused and, thanks to its financial success to date, has the wherewithal to invest in innovation and scale, often leaving corporate security trailing in its wake.

Given that the cost of cybercrime to the UK is currently estimated to be between £18 billion and £27 billion, it is essential that boards play a more proactive role. At an operational level, working on the basis that they will be faced with a cyber-attack at some point, leadership teams need to anticipate the business risk and develop counter-measures and business continuity plans which will minimise the disruption.

“we are starting to see the creation of a new senior role on the leadership team, that of the Chief Security Officer (CSO)” 12

[ Issue 93 ] BE Weekly

But how do they do this and who should be in charge of driving the corporate agenda on cybersecurity?

As boards acknowledge that technology on its own is not enough, companies need the addition of strong, well-organised management with a broad range of technical and non-technical capabilities.

In many instances, the responsibility for cybersecurity falls on the CIO. This is perfectly understandable but IT risk and information security have now become business issues and not simply technical ones. Additionally, there is no department that is immune to a cyberattack, or that shouldn’t consider that certain activities undertaken within that department may give rise to a security breach, generated either internally or externally. The challenge here is to oversee the organisation’s enterprise-wide risk management in an effective way that balances managing risks while adding value to the organisation.

In an increasing number of companies, we are starting to see the creation of a new senior role on the leadership team, that of the Chief Security Officer (CSO). Whilst the position of Head of Security is not new, the role has changed considerably in scope of responsibility. Some organisations are also distinguishing between the Head of Physical Security and the Head of Data Security.

Working alongside the CIO, the CFO and others, one of the CSO’s responsibilities is to advise the board and senior executive team on existing risk management procedures. He/she must be able to demonstrate the effectiveness of these procedures in identifying, assessing, and managing the organisation’s most significant enterprise-wide risk exposures.

As boards consider these risks, they must decide whether their current risk oversight and governance processes enable

technology

them fully to understand the potential impact on corporate strategy.

The CSO’s position must interface with other business areas such as IT, Legal, Human Resources, operations and corporate communications. Therefore, even though heads of IT possibly could take on this role, suitable candidates must have a strong commercial ethos as well, with a global view on the impact of the cyber threat and a solid understanding of the changing threat landscape.

The scope of this level of awareness needs to encompass a range of assets, systems and activities, including some perhaps not previously considered as ‘at risk’. These will include assets held by external organisations – such as suppliers – since attacks frequently come indirectly through these third parties.

Earlier this year, Target, the USA’s second largest discount retailer reported that the personal information of as many as 110 million customers was compromised after hackers reportedly installed malware onto the retailer’s point-of-sale machines through one of its suppliers.

Given the need to establish a balance between creating and sustaining a secure environment, whilst also enabling end-users to work unhindered, an experienced CSO should also be a strong team player capable of embracing and managing change and collaborating with others through information and intelligence sharing. Finding someone with the right credentials for the role is a challenge. Growing demand is already outstripping supply of the most qualified people, so CEOs may need to consider executives who have some – but maybe not all – the skills required, and provide the time and facilities for that person to develop accordingly.

How the board views and responds to the cyber threat is equally important. As

“the cyber threat is a question of ‘when’ rather than ‘if’, and organisations need to prepare accordingly”

with many aspects of the board’s role, this is as much about knowing what questions to ask – and being satisfied as to the quality of the answers – as it is about expert or technical knowledge. Indeed, discussing the technical minutiae is almost certainly not the best use of the board’s time.

Rather, and this will become increasingly an issue to be reviewed in annual reports and regulatory processes, the board will need to demonstrate to stakeholders – investors, customers, employees and regulators where relevant – that they are fulfilling their responsibility of assurance: setting the strategic framework and holding management to account.

In the final analysis, the cyber threat is a question of ‘when’ rather than ‘if’, and organisations need to prepare accordingly, even though the nature and target of the threat are constantly changing . What hasn’t changed, however, is the responsibility of security specialists, management teams and boards to provide technical capability, business resilience and strategic oversight respectively.

About the author

Robin Murray Brown Partner at executive search consultants, Tyzack. www.tyzackpartners.com

BE Weekly [ Issue 93 ]

13

14

[ Issue 93 ] BE Weekly

Why leaders need to ask for feedback Leaders who ask and receive feedback can utilise it as a vital ingredient for their own development Words by

Marielena Sabatier

BE Weekly [ Issue 93 ]

15

N

o matter how well senior executives are performing at work, they all tend to dread their annual performance review. Whilst many are trained in the art of giving feedback to their teams, how do they cope when the tables are turned on them?

Receiving feedback and acting upon it is a vital ingredient in the development of leaders in business today.

A recent study from leadership development firm, Zenger Folkman1, found that leaders who ask for feedback are substantially more effective than leaders who don’t. Leaders who ranked in the bottom 10% in asking for feedback were rated at the 15th percentile in leadership effectiveness. Conversely, those in the top 10% of asking for feedback from their employees were ranked in the 86th percentile in overall leadership ability.

Asking for feedback can give leaders vital knowledge and understanding of how they need to improve their performance.

However, it seems that few people really know how to react to the feedback they are given. The reasons for this are often down to low self-confidence. If someone has gone for a big promotion only to be rejected, do they really want to know why they failed to get the job?

However, it is crucial for executives to find out where they went wrong to

“Asking for feedback can give leaders vital knowledge and understanding of how they need to improve their performance”

16

[ Issue 93 ] BE Weekly

discover what they could do better in the future. No matter how senior a person is, it is important for them to ask for feedback post interview or when they have an annual review because everyone has blind spots.

Sometimes feedback can be vague so it is important to ask the person providing it to clarify what they are saying using specific examples.

Executives need to ask the person providing the feedback what they could have done differently. This will not only show they are confident and open, but most importantly, willing to learn from experiences and understand what behaviours they may be presenting that make others form an impression.

It is important for business leaders to take feedback too personally or be defensive about it, although it could be validated by asking for further feedback from other people. It can also be helpful to ask the person giving the feedback for their advice.

People often dismiss feedback because they don’t like what they hear or it’s not in line with the view they have of themselves.

However, being open to feedback, whether it is positive or negative, will enable a person to improve their self-awareness and adjust their behaviour accordingly.

A good example is one particular client of mine who was told she needed a new haircut. She was understandably upset that her hairstyle could affect her chances of promotion. She reflected on the feedback and realised that probably she looked too young, and although she could not do anything about her looks, she could behave in a more serious manner. Sometimes it’s important to look beyond the comment, and understand the overall message.

Often people don’t like giving feedback because they fear they may hurt or upset the person receiving it. In anonymous

leadership

written feedback, people tend to be more honest as they are further removed from the situation. Similarly, if people request written feedback they will have more time to consider what questions to ask. Face to face it may be more difficult to be “curious” without being defensive, however, it gives the opportunity to ask qualifying or clarifying questions.

One way leaders can maximise the potential of face to face feedback is to give the person conducting the review the questions in advance to give them time to think them over properly. The questions should not be vague but targeted at relevant areas such as, ‘What’s one thing I can do to improve X?’.

It is worth bearing in mind that asking for feedback is only useful if there is a genuine intent to act on it and for executives to take action to work on any areas for improvement highlighted in the feedback. Further feedback sessions are recommended too, to ensure the selfimprovement measures put in place have been successful a few months further down the line.

Adobe, a company of 11,000 employees, believes so strongly in the importance of feedback that it has replaced its traditional performance management system with a new simple but effective process.

Either an employee or a manager may request a “check in” every three months.

Before the meeting occurs a group of employees provides feedback on the employee’s performance.

The results form the basis of a conversation about performance

“Being able to ask for honest feedback is one of the hallmarks of a great leader”

improvement and the goal is to make coaching and developing a continuous, collaborative process between managers and e m ploye es .

Since rolling out the new approach worldwide Adobe have experienced a 30% reduction in voluntary turn over.

Being able to ask for honest feedback is one of the hallmarks of a great leader. Whether choosing to adopt an official ‘check in’ system like Adobe’s or taking a more ad hoc approach, feedback is an important tool in enabling leaders to be successful in their roles.

1. Zenger Folkman carried out a study of 51,896 executives in December 2013

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 Weekly [ Issue 93 ]

17

18

[ Issue 93 ] BE Weekly

TRECSA

Lighting up the isthmus Guatemalaâ&#x20AC;&#x2122;s energy network is undergoing a benevolent revolution that is bringing power to the Central American countryâ&#x20AC;&#x2122;s remote communities, transforming lives and catalysing business development words by

Will Daynes

research by

David Brogan

BE Weekly [ Issue 93 ]

19

ransportadora de Energía de Centroamérica S.A., or TRECSA for short, is a Guatemalan company dedicated to the business of energy transmission. The company was incorporated in 2010 following the award of a contract by Guatemala’s Comisión Nacional de Energía Eléctrica (CNEE – the National Commission for Electric Energy) for the construction, management, operation and maintenance of the first phase of the country’s Energy Transmission System Expansion Plan. This first phase is named PET-01-2009.

As a part of one of Latin America’s largest energy companies, Grupo Energía de Bogotá, TRECSA started the PET-01-2009 project in 2010, which will palt a big part in building a more cost effective, reliable and affordable energy service. As the company’s CEO Edgar Loaiza expresses it: “We are a relatively new company, but are able to draw on the commitment and world-class practices of a business group with 117 years of experience in the electricity sector, and 22 years in the natural gas sector, to deliver a modern power transmission system to the people of Guatemala”.

Guatemala is the largest economy in the Central American region. With a population of 14.7 million, the country accounts for 35 percent of the regional economy. However as recently as 2012, according to CNEE, the country was only obtaining ten percent of its

T

“We are able to draw on the commitment and world-class practices of a business group with 117 years of experience in the electricity sector”

20

[ Issue 93 ] BE Weekly

Steel gantries rise over the forest

TRECSA

“This is a nation-wide project and once it is built and in operation, it will benefit all families and companies in the country” power needs from electricity – 63 percent was still dependent on firewood. This is clearly an economy that stands to benefit massively from wider access to power. Growing demand, diversifying the energy matrix, and strengthening the power transmission system are among the main targets of the energy policy. According to CNEE’s demand projections, an increase of 80 percent is expected in the next ten years.

The generation sub sector is highly diversified. It includes hydroelectric, geothermic, biomass, solar and wind energy plants. According to official data, in 2011 Guatemala had a total installed energy capacity of 847 megawatts. “Taking this diversification of the energy matrix into full account, it is still necessary to develop a plan for increased generation capacity. In turn this will create a greater need to build and operate new energy transmission lines and substations, allowing electricity to be transmitted with high standards of quality and reliability from its production point to where it is consumed,” says Loaiza.

Over the years, Grupo Energía de Bogotá, as well as rolling out expansion projects to the major population centres in Colombia, has become recognised as a major player in the Latin American energy sector. Its role in Guatemala is an important step in its strategy to expand its influence, as acknowledged in the recent appointment of its President Sandra Stella Consecrate, as the head of the

BE Weekly [ Issue 93 ]

21

inspired Your weekly digest of business news and views

www.bus-ex.com 22

[ Issue 93 ] BE Weekly

Comisión de Integración Energética Regional (CIER), an international organisation that works for energy integration and technical cooperation in South and Central America and the Caribbean. It is proud to be one of the 54 Lead Group companies in the UN’s Global Compact, recognised in the 2013 Dow Jones Sustainability Index under the emerging markets category. It was the first company in Colombia and one of the few in Latin America to receive a certification in energy efficiency, responsible use and consumption on completion of the ISO 50001 Certification.

Now all of this experience is being put behind the task of progressing an expansion plan that will deliver sustainable value to the people of Guatemala. By June 2014, PET-01-2009 was 79 complete (with 43 percent of construction in place), and the goal is to finish it in September 2015, with the construction of more than 850 kilometres of electricity transmission lines,

TRECSA

A new substation

“TRECSA is committed to sustainable development on a long term basis in Guatemala and the communities where the PET-01-2009 is being constructed” which will reach 74 of the 338 municipalities of Guatemala, at a cost of around $377 million. In addition to these lines, the company will build twelve new substations and expand twelve more in 340 rural communities. According to Edgar Loaiza the expanded system will be able to carry more than 200 MW. Of course, this is a highly technical project involving key international partners like Siemens, which is providing power, control, protection, measurement and communication equipment for the substations, and the Turkish group Mitas

whose expertise in steel pylon fabrication and erection has been key to the project. “We already have four substations constructed and ready to be energised and another 14 under construction. More than 900 towers have been erected and we are on target for completion of the project in 2015,” says Loaiza.

Community engagement has been one of his main concerns. “Because so many people are not used to electricity they have doubts about the project. Our commitment is to show them its benefits and scope. We do have the

BE Weekly [ Issue 93 ]

23

Power line under construction

task of helping people understand that access to electric power will transform their lives for the better. This is a nation-wide project and once it is built and in operation, it will benefit all families and companies in the country.

However it has already generated around 4,000 direct and indirect jobs”.

Additionally, he points out, TRECSA has implemented social programmes in the communities involved, in the areas of education, health, environment and productivity areas.

To date, TRECSA’s community volunteering arm Proyectos Voluntarios de Beneficio Comunitario (PVBC – slogan ‘You bring your time, TRECSA brings the materials!’) has benefited more than 8,146 families and over 4,858 elementary school students in 73 locations close to the network. “TRECSA is committed to sustainable development on a long term basis in Guatemala and the communities where the PET-01-2009 is being constructed, which is why we work daily to build trust and long term relationships with our stakeholders, acting with transparency, respect, trust, integrity and fairness” He is equally proud of the expansion project’s environmental credentials. “We aim to mitigate every kind of impact during construction, and of course we follow Grupo Energía de Bogotá’s guidelines on environmentally sustainable development, incorporating eco-efficient targets in our energy performance, waste management and water consumption, as well as the protection of biodiversity and climate change management”.

Among the initiatives undertaken in the last four years are LED lighting and stand-by solutions that turn the system off

“More than 900 towers have been erected and we are on target for completion of the project in 2015”

24

[ Issue 93 ] BE Weekly

TRECSA

Brand new control room

when is not in use, and collaboration with Guatemala’s Conservation Study Centre (Centro de Estudios Conservacionistas) in collecting samples of flora in the field and transferring them to the Centre for sorting, and expansion of the national database.

Another is monitoring particulate matter and noise at the construction site, and continuous archaeological oversight at substations and pylon sites in order to ensure protection of the cultural heritage of Guatemala.

The project has a fundamental role in the diversification of the energy matrix, emphasises Edgar Loaiza. “As from 2015 more than 30 power plants, most of them renewable, will be connected to the new transmission system, making Guatemala less dependent on oil by-products as an energy resource. PET-01-2009 will also contribute to strengthening the power transmission system by reducing outages”. It will also help bring electricity generation a lot closer to homes, businesses and industries

in scattered communities, enabling them to take a fuller part in the economic life of the country, he says.

Looking to the future, he anticipates TRECSA getting involved in many more projects in Guatemala – certainly the company has had a good start since it arrived, and is fulfilling its role as a much needed provider of infrastructure that will grow the economy and raise the standard of living of millions of Guatemalans to levels many of them have never dream of. He sums up in the simplest way: “We are proud of the ground covered and we expect to become a major player in the national electricity sector!”

TRECSA

(502) 2312 300 info@trecsa.com.gt www.trecsa.com.gt

BE Weekly [ Issue 93 ]

25

North America

Put a lot more

The resource that North American Nickel (NAN) property could be a game changer not just for G this vital metal to develop thei words by

26

[ Issue 93 ] BE Weekly

John Oâ&#x20AC;&#x2122;Hanlon

an Nickel (NAN)

re nickel in

) expects to define this summer on its Greenland Greenland but for the countries that depend on ir industries and infrastructure research by

Andy Turner BE Weekly [ Issue 93 ]

27

ickel may be one of the most common elements in the earth’s crust but that does not mean that it is the most accessible. Unlike some metal commodities, the global supply of nickel is concentrated in a handful of regions of the world. According to the US Geological Survey, in 2011 Russia was the world’s largest producer of nickel followed

by Canada, Australia, Indonesia and the Philippines. It is generally believed that ‘major igneous events’ cause this otherwise inaccessible element to appear close to the earth’s surface – well igneous events don’t come much larger than the 20 mile diameter meteor that smacked into Greenland three billion years ago, tearing open a crater some 60 miles wide. It’s the oldest and biggest meteor impact identified on earth so far and its discovery in June 2012 by researchers from the Geological Survey of Denmark and Greenland (GEUS) may help to explain the abundance of nickel in the Maniitsoq area 100 miles to the north west of Nuuk.

When the meteor hit Maniitsoq, it caused nickel-rich magma from the earth’s mantle to flow up into its crust. These nickel-rich magmas are preserved as the Greenland Norite Belt, which is the focus of North American Nickel’s exploration programme.

On August 15, 2011 the company was granted an exploration license by the Bureau of Minerals and Petroleum of Greenland

N

“When the meteor hit Maniitsoq, it caused nickel-rich magma from the earth’s mantle to flow up into its crust”

28

[ Issue 93 ] BE Weekly

Helicopter-assisted off-loading of equipment and supplies at North American Nickel’s Maniitsoq property in Greenland

North American Nickel (NAN)

“We hire local people not just for camp administration work but also for the more technical jobs” (formerly BMP, now the Mineral Licence and Safety Authority or MLSA). This gave the company exclusive exploration rights over an area totalling nearly 5,000 square kilometres located near Sulussugut. As Dr Mark Fedikow, NAN’s President and Interim CEO explains this was a massive area, and it was important to reduce it to a more manageable size once the most productive areas for drilling had been identified by helicopter-borne surveying. “Initially we held the largest ground position in Greenland, but part of the regulatory process requires that you diminish your asset progressively.

We have reduced ours to a little over 3,600 square kilometres now.”

NAN is probably spending more within Greenland than any other company this year – around $9.5 million. This is a very significant project for the nascent Greenlandic mining industry, and Dr. Fedikow is enthusiastic about the level of cooperation he has encountered from the government and local communities. It is tempting to compare Maniitsoq with the Sudbury Basin in Canada, whose nickel deposits are related to a meteor impact, but in fact it is geologically different and in many other ways Greenland has advantages over Canada. The first of these is in the terrain. “There is virtually no soil or tree cover, so from a helicopter you are always looking at bare rock.” This suits modern airborne geological mapping

BE Weekly [ Issue 93 ]

29

Emplacement of a survival hut at a North American Nickel drill site

techniques like VTEM (versatile timedomain electromagnetic system) used for identifying electromagnetic conductors such as semi-massive to massive sulphide mineralisation. NAN has flown more than 5,700 kilometres of survey, and in these conditions Fedikow says you can maintain a constant height over the rugged terrain with the helicopter-borne geophysical survey, looking a couple of hundred metres into bedrock.

Working with the government in Greenland is a pleasure compared with many jurisdictions, he continues, because of the steps the authorities have taken to achieve transparency. The regulatory regime is straightforward, the rules clear, and the culture enabling for a responsible mining company. And Greenland has to be unique in that there is no such thing as private ownership of land – it all belongs to the state. There are no special interest groups or layers of administration to contend with.

This does not mean that local communities are any the less respected and involved, he hastens to add. Best practices are in place for consultation, maximising the level of local subcontracting and employment just as they would be anywhere else.

So on the ground the company has a crew of 34, including a number of Greenlanders.

“We do try our best to hire local people, despite the fact that there are only 60,000 people in the entire country!” There is a government supported programme that is training Greenlanders for the mining industry, he notes. “They are moving ahead

“Helicopters are critical for us to get to and from our drill sites on the property”

30

[ Issue 93 ] BE Weekly

North American Nickel (NAN)

North American Nickel’s Project Manager James Sparling examining a norite rock sample, Maniitsoq property

with that, and we do hire significantly impact time in the Did you know? the people according to our air for helicopters. “Helicopters are critical for us to get to needs and the skills available. and from our drill sites on the We also hire local people not 20 miles property, he explains, so the just for camp administration Diameter of the weather impacts everything. If work but also for the more meteor that created it is kind and the sky stays clear technical jobs, helping us by the Maniitsoq till September and the results cutting and sampling of the nickel deposit we are expecting are realised, core and preparing samples the staff, the equipment and for analysis. They are doing an 10 kilometres the finance is in place to excellent job.”

This year’s optimum complete 10,000 metres.”

This summer, NAN is drilling target The three targets mentioned drilling intensively, with one will get most of the attention, eye on the weather. The 2013 says Fedikow, because NAN’s drill programme led to the clear goal is to build tonnage based on recognition of the Imiak Hill Conduit Complex nickel, copper cobalt and platinum group (IHCC) which includes Imiak Hill, Imiak North metals (PGM) mineralisation at the IHCC and Spotty Hill, three mineralised zones and potentially define an inferred resource. within 1.6 kilometres of one another. “This “Ultimately the simple question is, can we year we will drill a minimum of 4,700 metres build a resource with sufficient tonnage at a of core. That could be increased to as much grade that will allow us to go into production?” as 10,000 metres, but that depends on That question is being addressed through results and the weather. In August fog can

BE Weekly [ Issue 93 ]

31

Dr. Mark Fedikow President & Interim CEO

Cecil Johnson, North American Nickelâ&#x20AC;&#x2122;s senior prospector examines a gossanous norite outcrop, Maniitsoq property

32

[ Issue 93 ] BE Weekly

Mark has 35 years of industry and government experience as an exploration geochemist and mineral deposits geologist.

He has worked for major and junior mining exploration companies and the Manitoba Geological Survey completing his employment at the Survey as Chief Geologist of the Mineral Deposits Section. In 2001, Mark was the recipient of the Provincial Geologists Medal, a Canadian national award for outstanding g e o s c i e ntif i c achievement. Mark is also a Fellow of the Association of Applied Geochemists.

North American Nickel (NAN)

“As time went on the results were so promising that we thought again and said perhaps we would build a mine ourselves”

the drill results, and constrained by a conceptual economic scenario that is being prepared in collaboration with global mining consultancy Golder Associates.

This will provide an estimate for the necessary nickel resource and the feasibility of building a mill, starting mining, , and marketing the product. The next steps will depend on what the Golder preliminary economic scenario concludes.. Originally the game plan was to define the resource and then involve a major nickel miner to come in and take the project over, he says. “As time went on the results were so promising that we thought again and said perhaps we would build a mine ourselves. That is one reason why we contracted Golder Associates to give us a picture of how we might proceed and how the economics would stack up.” It will depend on what is in the best interests of the NAN shareholders, he says, but he is looking at a precedent that was set with the discovery of the Reed copper deposit in Manitoba in 2007 by NAN’s sister company VMS Ventures. In that case a 70/30 joint venture with Hudbay Minerals was established, with Hudbay building and operating the mine and VMS retaining a minority interest. “That might be the route we take in Greenland.”

Regardless of the manner in which NAN moves forward its intention is to build a

Massive pentlandite-chalcopyrite mineralization in drill core from the Maniitsoq property

nickel-copper-cobalt-PGM resource that will lead to an exploitation licence application.

The Greenland government is supportive and keen to see this become one of the early producing mines – one that will put Greenland firmly on the world nickel map at a time when stalled infrastructure in developing economies is expected to get under way. Nickel demand is directly linked to infrastructure growth, a fact that will not be lost on investors as they look at North American Nickel.

North American Nickel (NAN)

604-986-2020 info@northamericannickel.com @NAmericanNickel www.northamericannickel.com

BE Weekly [ Issue 93 ]

33

34

[ Issue 93 ] BE Weekly

A vision for

Kenyaâ&#x20AC;&#x2122;s future Geothermal Development Company (GDC) Electricity derived from geothermal resources will play a key role in Kenya achieving its Vision 2030 objectives.

Responsibility for this rests on the shoulders of the Geothermal Development Company (GDC) words by

Will Daynes

research by

Stuart Platt

BE Weekly [ Issue 93 ]

35

36

[ Issue 93 ] BE Weekly

Geothermal Development Company (GDC)

t was in Larderello, Italy, back in 1904 that the world’s first geothermal power plant was constructed, a facility that continues to produce green energy to this very day. In the 110 years since then more than 20 of the planet’s major countries have integrated geothermal power into their respective energy portfolios, countries including the US, Japan, Indonesia, Mexico, Cost Rico and Iceland. Kenya, meanwhile, holds the distinction of being the first country in Africa to generate electricity from geothermal sources.

A clean and renewable source of power, geothermal energy possesses a number of important environmental and economic advantages over traditional fossil fuel sources.

This particular form of energy is commercially

I

geothermal energy contributes approximately 209MW towards Kenya’s power mix, a figure which amounts to around 22 percent of the country’s total production, while its geothermal potential has been estimated to reach up to 10,000MW in the long term.

GDC came about as a result of the Kenyan Government’s policy on energy, which un-bundled all of the key players in the electricity sector in order to ensure greater efficiency. GDC’s role from day one has been very much tied to Kenya’s Vision 2030 initiative, one which it expects to contribute towards Kenya becoming a stable middle income economy. In order to attain Vision 2030, the government wants to be able to reach a scenario where the country is able to generate 15,000MW of electricity annually,

“A clean and renewable source of power, geothermal energy possesses a number of important environmental and economic advantages over traditional fossil fuel sources” produced from naturally occurring steam and hot water which lays trapped in reservoirs of permeable rocks below the surface of the earth.

Headquartered in Nairobi, the Geothermal Development Company (GDC) is a 100 percent state-owned business, formed especially by the Government of Kenya to act as a special purpose vehicle to fast track the development of the country’s geothermal resources. An indigenous, abundant and reliable source of electricity, Kenya’s geothermal resources are concentrated within the country’s Rift Valley.

It is here that some 14 fields can be found extending from Lake Magadi to Lake Turkana.

In addition to these fields Kenya also hosts several low temperature fields outside the rift at Homa Hills and Massa Mukwe. At present

5,000MW of which it expects to be derived through geothermal means. This will require a significant step up from Kenya’s existing total effective installed capacity of 1,533MW. For many years Kenya has relied heavily upon hydroelectricity, with perennial power outages forcing the government to invite emergency power producers who use diesel in order to generate electricity. The stopgap measure has been very much a double edged sword for the country, answering the immediate need for emergency power, but at the same time increasing the cost of electricity for the consumer and causing significant damage from pollution.

For its part the Kenyan Government has known for a while that the aforementioned negative issues cannot be allowed to

BE Weekly [ Issue 93 ]

37

Commercial Publishing Ser vices

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

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 ]

38

[ Issue 93 ] BE Weekly

Geothermal Development Company (GDC)

remain a factor as the country continues to grow. To that end it has commissioned GDC to take advantage of the country’s untapped geothermal potential and has provided the company with the mandate and means to drill as many as 1,400 steam wells to provide the required 5,000MW of geothermal power by 2030.

In addition to being tasked with promoting the rapid development of geothermal resources in Kenya, GDC is also responsible for promoting alternative uses of said resources.

Such alternatives include greenhouse heating, the drying of grains, the pasteurising of milk, and the cooling and heating of rooms.

Given the wide number of possible uses for geothermal resources it is unsurprising that GDC’s customer base reflects a variety of stakeholders from different walks of life, all of whom share a strong interest in the development of geothermal technology in Kenya. These customers fall into categories such as government ministries, development partners, independent power producers, investors, governments from the East African Rift System countries and local community groups.

Understandably, GDC is immensely proud to be spearheading growth in the geothermal energy sector. Since day one it has been the creed of the company to actively pursue all practices that are deemed capable of saving the environment from pollution. By committing to provide affordable, safe and reliable energy to as many Kenyans as possible, GDC by extension will be saving on the use of wood

National Oilwell Varco NOV, after successful delivery of drilling equipment to Menengai field, will partner with GDC drilling engineers to ensure they receive optimal performance from the equipment.

NOV will provide the BHA design, use of the downhole telemetry BlackBoxTM recording system, field-testing of a new PDC drill bit, and a team of expert drilling engineers to ensure optimal performance for GDC. www.nov.com

“The Kenyan Government has provided the company with the mandate and means to drill as many as 1,400 steam wells to provide the required 5,000MW of geothermal power by 2030” BE Weekly [ Issue 93 ]

39

fuel and will thereby be assisting in the efforts to protect Kenya’s forests.

As well as contributing towards the protection of Kenya’s natural environment GDC also makes every effort to highlight the work it conducts in supporting local educational needs, economic empowerment, the provision of water and health, and the preservation of art, culture and sport.

GDC supports the achievement of education for children in the areas in which it operates, while also equipping and rehabilitating educational institutions to establish model schools. These efforts are helping to contribute towards the Millennium Development Goal of increasing access to education at the primary level by 2015.

The Millennium Development Goal on

“GDC makes every effort to highlight the work it conducts in supporting local educational needs, economic empowerment, the provision of water and health, and the preservation of art, culture and sport”

40

[ Issue 93 ] BE Weekly

Geothermal Development Company (GDC)

the eradication of extreme poverty and hunger by 2015 creates the imperative for all sectors, the corporate, civil society and government, to collaborate towards income generation, food security, job creation and poverty alleviation initiatives. GDC actively engages innovative young people from its areas of operation to improve the economic status of the communities.

When it comes to the health and wellbeing of these aforementioned communities, GDC recognises that clean water not only sustains life, but prevents water-borne diseases. GDC supports projects that conserve water sources and explore new methods of harvesting rain and underground water. GDC also supports the rehabilitation of water pans and sink boreholes for the communities. With regard to health, GDC

is working to facilitate access to affordable health care among local communities.

Last, but by no means least, GDC is also making every effort to work with individuals and groups to preserve and promote local art and culture for future posterity. The company also encourages and supports sporting activities which it and others realise helps to foster peace between communities.

Geothermal Development Company (GDC)

+254 719 036 000 info@gdc.co.ke www.gdc.co.ke

BE Weekly [ Issue 93 ]

41

Prime

fuelling

Primefuels has taken advantage of every opportunity to Central Africa and has grown in less than 20 years to a words by

42

[ Issue 93 ] BE Weekly

John Oâ&#x20AC;&#x2122;Hanlon

efuels

growth

o provide a much needed logistics service across East and partner for major mining, aviation and O&G customers research by

Abi Abagun BE Weekly [ Issue 93 ]

43

t is good to have a company name that gives a hint to what that company actually does, and from that point of view Primefuels is very aptly named. It is a company, or rather a group of companies, that specialises in providing bulk liquid and dry cargo logistics and transportation services to its customers in East and Central Africa. Headquartered in Nairobi, the capital of Kenya, it is today present in nine countries in East and Central Africa, with a comprehensive regional network. In addition to 12 Operational Sites, it has offices and staff at 30 delivery locations in South Sudan, Uganda, Kenya, DRC, Rwanda, Burundi, Tanzania, Zambia, and Malawi. In addition to its logistics business, it also has business divisions focused on fuel supply, lubricants distribution and management, aviation services, and customs clearing.

The needs in this part of Africa, which is principally served from the Indian Ocean ports of Mombasa in Kenya and Dar es Salaam in Tanzania, are very diverse, and Primefuels serves them all. From the NGOs that are active in many high stress countries or provinces to the fast growing oil and gas and mineral resources industries, manufacturing, defence, energy and infrastructure, each sector needs to work with a logistics partner that really understands its unique requirements.

Primefuelsâ&#x20AC;&#x2122; highly trained and professional staff numbering more than 500 are known for more than just their efficiency in ensuring that commodities reach their destination: they

I

44

[ Issue 93 ] BE Weekly

deliver industry leading standards of safety, health and environmental performance.

Primefuels owns a fleet of over 250 Long Haul trucks, and either owns or leases 430 dedicated rail wagons operating on the rail networks of Tanzania, Kenya and Uganda, but it was a different scale of operation when it started out in 1997 at Mombasa. Then there were just two employees engaged in moving palm oil and LPG by rail to Nairobi. Two years later the young company was awarded a contract to transport fuel to Geita gold mine by rail, shipping it to a depot in Mwanza from Dar es Salaam and Mombasa, and then by road to the mine.

In 2001 the company was established enough to invest in its own road fleet, operating out of the Mwanza yard. The next ten years were a period of consolidation and expansion and by 2010 Primefuels had a base in Mombasa, one in Dar es Salaam,

Primefuels

â&#x20AC;&#x153;Each sector needs to work with a logistics partner that really understands its unique requirementsâ&#x20AC;?

and finally at Kampala, Uganda. Kampala is the gateway to the expanding minerals extraction business in Katanga, however the instability of the region is well known.

In 2011 Primefuels was awarded a contract to move fuel to the the eastern DRC on behalf of MONUSCO the United Nations Stabilisation Mission in the Congo, which is a massive organisation with more than 22,000 uniformed personnel engaged in intervention and humanitarian duties. It also secured a deal with Randgold Resources to supply its Kibali gold mine in the northeast

of the DRC, approximately 560 kilometres northeast of the capital of the Orientale province, Kisangani.

2012 saw the opening of another yard in Kenya, at Nakuru and the commencement of road transport services linking the port city of Dar es Salaam with Zambia and Malawi. Last year Primefuels strengthened its rail transport services on these routes, and diversified into aviation fuel at Tanzaniaâ&#x20AC;&#x2122;s southern deep water port of Mtwara, which boasts an airport where medium size passenger and freight services link it to Dar es Salaam.

BE Weekly [ Issue 93 ]

45

Alvi Trading Company Ltd Direct Importers of Spare Parts for Heavy Commercial Trucks & Trailers Specialising in:

• MERCEDES BENZ TRUCKS • • ACTROS • AXOR • ATEGO • • V6/V8 SERIES & MAN TGA TRUCKS • Sole agents for Available for: • MERCEDES BENZ • MAN • SCANIA • • DAF/ERF • BPW TRAILERS •

Unit 7 Alpha Centre, Mombasa Road P.O.Box-3429 - 00506 - Nairobi, Kenya

Mobile Numbers: 0728 603 499 | 0786 903 497 | 0786 903 499 0727 477 047 | 0700 126 155 | 0786 603 499 | 0786 603 498 Email: alvitradingcoltd@gmail.com www.alvitrading.co.ke

Drive to Live and Arrive Alive!

Our services across Africa are specifically designed to improve driver skills to international standards and prevent road accidents.

Defensive Driving Systems Ltd. Specialised Training Services

Tel: +254 20 243 1550 Email: info@defensivedrivingsystems.co.ke

www.defensivedrivingsystems.co.ke

46

[ Issue 93 ] BE Weekly

Primefuels

â&#x20AC;&#x153;As a partner to mining operations owned by leading international companies Primefuels has had to acquire deep expertiseâ&#x20AC;?

As a partner to mining operations owned by leading international companies Primefuels has had to acquire deep expertise not just in the reliability of fuel supplies but also in world class standards of safety and environmental best practice. It has become acknowledged within the region as a leader in HSE, and the company is certified to ISO14001, the standard governing environmental management systems. All of its vehicles are tracked and controlled by GPS systems and telematics ensure safe driving practices, monitoring

any infringement of permitted driving hours or excessive braking and acceleration. In the event of a breakdown, full backup plans are in place.

The Geita gold mine in Tanzania is one of the largest mines in Africa, and Primefuels has been its transport partner bringing in fuel and lubricants from Mombasa and Dar es Salaam. At Kibali in the DRC, in addition of transportation of fuel from Kenya and Tanzania to the mine site, the company supplies and manages the entire lubricants requirement for

BE Weekly [ Issue 93 ]

47

the mine, with a team of dedicated and expert staff on site. To these important partnerships can be added the transport of mining reagents and consumables from Dar Es Salaam to the Australian company Paladin Energy’s Kayelekera uranium mine near Karonga in Malawi. At Barrick Gold’s Lumwana copper mine in Zambia is supplied by road and rail from Dar es Salaam. All these operations are of course familiar to readers of this magazine, and form the best possible testimonial for Primefuels’ services

The MONUSCO contract brought Primefuels into a whole new set of requirements – clearly defence is the most exacting environment for any logistics company. Through its regional network of depots and offices it transports fuel to eight different locations in the DRC under this contract. With a dedicated team of professional expatriate managers in each of the key offloading locations in DRC, Primefuels’ ability to load in both Kenya and Tanzania means that it can service even an agency of the UN with professionalism

“The plan is to leverage the company’s expertise and regulatory status to roll out aviation fuelling to mid-size and remote airports throughout the region”

48

[ Issue 93 ] BE Weekly

Primefuels

and reliability, despite the risks and difficulties presented in a tense political environment and the ever present threat of lawlessness and conflict.

Primefuels continues to service its original sector, the palm oil industry with a dedicated fleet of IMO containers to ensures that the product is kept safe and free of contamination. As it has expanded though, it has taken advantage of each new opportunity as it is presented, and it is now ready and willing to take advantage of the rich hydrocarbon resources being explored along the East African coast – a situation that plays well to its established regional networks and proven levels of service. It has already begun to offer services to this market by setting up a dedicated helicopter fuelling operation in Mtwara.

The fuel facility at Mtwara is now complete, and Jet-A1 fuel can be supplied direct to the

customer’s aircraft from Primefuels’ own dedicated storage and ground handling facility at the airport. The plan is to leverage the company’s expertise and regulatory status to roll out this service to mid-size and remote airports throughout the region, which have traditionally been under serviced by the large players in the aviation fuelling market. For the private airstrips commonly used at remote sites by mining companies for example, Primefuels can use its portable storage technology to set up a temporary aviation fuel supply for its customer.

Primefuels

+254 20 2228807 admin.nairobi@primefuels.com www.primefuels.com

BE Weekly [ Issue 93 ]

49

50

[ Issue 93 ] BE Weekly

Tata Zambia

A deep

partnership The Tata group has a long-standing association with Zambia which it chose many years ago as its gateway into Africa: its strategy is to leverage strong customer focus in diverse markets words by

John Oâ&#x20AC;&#x2122;Hanlon

research by

Richard Halfhide

BE Weekly [ Issue 93 ]

51

hough Tata had been selling vehicles into the Zambian market for many years prior to that through dealership agreements, it was in 1978 that the Indian industrial giant first established a company based there. This was the first to be set up in the entire continent, and though today the group’s African headquarters is in South Africa, and no fewer than 14 countries have their own Tata subsidiary, Tata Zambia, which also looks after neighbouring Malawi where it has a branch office, remains the deepest ingrained and most diverse of all national subsidiaries. As Ratan Tata said himself: “The Tata group has had an emotional tie with Zambia over the years.”

That at least is the view of Pankaj Khanna, who as Executive Director of the company leads and coordinates all of Tata’s interests in Zambia, where he has been based for more than 20 years. Of course he would say that, but the facts bear him out. The core business is the import, distribution and maintenance of Tata Motors’ range of commercial vehicles to the public and private market – commercial vehicles and buses basically – a sector in which he jealously guards Tata’s 75 percent market share of the market up to ten tons.

Before looking at the exciting plans the company has to grow its specialised contribution to the mining sector, it is worth looking at the sheer breach of Tata’s commitment to Zambia. “When we first came here we were just selling commercial vehicles,” says Khanna, “but we soon started to diversify.

At one time we were selling agricultural equipment and involved in farming and textiles.” Those businesses are now licensed out but Tata Zambia retains a wide portfolio under management. In a disposal of state businesses in the 1980s and 90s Tata acquired a bicycle manufacturer which is now run as an assembly operation using components from India.

Another unexpected business is the 193room five star Taj Pamodzi Hotel in Lusaka. A

T

52

[ Issue 93 ] BE Weekly

“Last year we launched our In Equipment (IC

Tata Ultra Truck

nfrastructure and Construction CE) division ”

Tata Zambia

part of Tata’s Taj Hotels Resorts and Palaces brand, the hotel is owned by Tata Zambia and operated by the Taj Group. This is where visiting heads of state and other dignitaries stay when they visit Zambia. And if they are looking for comfortable vehicles to travel further afield, they will soon be able to visit the new Jaguar Land Rover showroom – the first JLR dealership to be awarded in Africa since Tata’s purchase of the iconic brand in 2006.

That the government regards Tata as a trusted partner is nowhere better illustrated than by the fact that last year the Zambia Revenue Authority awarded Tata Consultancy Services (TCS) a three-year contract for the modernisation of its domestic tax system.

This is TCS’s third revenue and tax system automation project in the African region after a successful implementation for the Uganda Revenue Authority and ongoing implementation for the Kenya Revenue Authority, though it has a track record of more than 20 tax framework implementations in India and the USA. It’s an integrated and multitax system covering VAT, income tax, PAYE, presumptive tax, turnover tax, mineral royalty tax, excise, property transfer tax, medical levy and withholding tax. Once operational, this system is expected to transform the service delivery to taxpayers, support the country’s sixth National Development Plan. It is expected to bring about a higher degree of accountability and transparency to the entire public sector.

Tata Zambia is also in the process of expanding into chemicals and healthcare products, however mining is the mainstay of the Zambian economy and Tata Zambia taps into this industry by supplying a number of mining products. These include valves, bearings, rubber linings, graphite electrodes (used in cobalt processing) and seals. Steel, mainly plates, is supplied to the local market, and tyres are sourced from MRF in India. But the big ticket items for the mining companies are

BE Weekly [ Issue 93 ]

53

under the heading of equipment, says Khanna.

“Last year we launched our Infrastructure and Construction Equipment (ICE) division, which supplies heavy equipment like graders and backhoes and excavators and dump trucks. Most of these come from India, but we also have an agreement with a company called STK in Singapore, and we are launching those products later this year.”

Under the new agreement Tata will distribute STK’s TRXBUILD and LeeBoy brands of heavy construction and road construction equipment in Africa. Customers in Zambia will not only benefit from a range of equipment specially designed for the

mining, infrastructure development, road construction and maintenance sectors, but will also benefit from Tata’s established customer support network. “All this equipment complements our own range,” Khanna points out. “Our truck range goes up to around 17 tons, and it is a good way to cover the market in competition with the established heavy equipment suppliers.”

This is a buoyant market. Last year the Zambian government announced a programme of renewal covering 8,000 kilometres of its roads, and Tata is busily negotiating supply and maintenance arrangements with the overseas contracting

“Most clients bring their vehicles to us for servicing, but for some key clients we provide onsite service”

Tata Zambia office

54

[ Issue 93 ] BE Weekly

Tata Zambia

Tata LPK 2516

companies coming in to do this work. In the mining sector, Tata Zambia’s largest single customer is First Quantum Minerals. However the majority of vehicles are currently sold to subcontractors to whom the large mining companies subcontract the work of moving personnel and materials. The vehicles it supplies are ideal for these customers, and another place Tata Zambia really scores is its ability to keep those vehicles on the road and earning. At its headquarters in Lusaka and its branch at Ndola in the Copperbelt the company maintains fully equipped warehouses and spares departments staffed by trained technicians. “Most clients bring their vehicles to us for servicing, but for some key clients we provide onsite service.

At Livingstone we have an appointed dealer so they can get service locally, and over the next six months we plan to open two more centres, one in the North-Western Province and another in the Copperbelt where business is growing fast.”

Training is part of Tata’s DNA, he continues.

Selected staff are sent to India or to South Africa for three months at a time, and teams from these centres come in to ‘train the trainers’ locally. The company has a second regional training centre at Ndola, he adds, where both Tata employees and customers’ staff can learn side by side about the entire product range. “It is what we feel really differentiates us in Africa. We have a brand that is known and trusted, a great track record, and a reputation built over many years.”

Without these essentials, the important element of competitive pricing would be meaningless, he stresses. There’s a lot of equipment available, but little that can boast Tata Zambia’s level of service backup.

Tata Zambia

+26 (211) 287 160 tata@tatazambia.co.zm www.tata.com

BE Weekly [ Issue 93 ]

55

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 ]