EAST AFRICA’S PREMIER MINING CONTRACTOR
CASPIAN TANZANIA
2 | Africa Outlook issue 77
MINING
Mining Made
SIMPLE Offering a range of life-of-mine services, Caspian has consolidated its reputation as a dependable, high-quality contractor Writer:Jonathan Dyble | Project Manager: Donovan Smith
T
he African continent is blanketed by optimism right now, an aura that’s largely owed to the mining industry. Mining firms spent $8.4 billion on exploring new metal deposits last year according to a study from S&P Global Marketing Intelligence, up 15 percent on 2016. Further, the report also forecast that exploration spending could rise a further 20 percent during 2019. Combine this surge in mining pursuits with similarly buoyant M&A activities, and the stage is firmly set for Africa, the home of roughly one third of the world’s known mineral reserves, to thrive for years to come. “Mining is a primary industry. It’s never going to go anywhere,” states Akram Aziz, the Managing Director of Caspian Tanzania – East Africa’s premier mining contractor. “There isn’t really one segment of our lives that isn’t touched by some form of mining. Whether it’s bauxite going into airplanes or the extraction of iron for the manufacture of automobiles, I don’t think a lot of people realise that fact. “It’s truly an exciting, futureproofed industry.” Indeed, Caspian is one company that has managed to establish itself as
a spearhead of this eternal sector. Founded by the current MD’s older brother Rostam in the mid-1980s as Mbeya Earhmovers, the business spent much of its early life working on various rural construction projects such as road building, dam building and alike. Owed to an emphasis on diversification, capitalisation and growth, however, 1998 marked a new, prosperous period in Caspian’s illustrious timeline – a transition from which it hasn’t looked back. “It was the year that Caspian secured a contract on De Beers’ Williamson diamond mine in northern Tanzania,” Aziz reveals. “The contract started as just a two-year deal, but we later invested in improved machinery and secured a longer-term agreement that really sparked the company’s foray into mining contracting.”
MINING MARVEL Fast forward to the present day, and Caspian is still working closely with De Beers’ on the Williamson mine, the companies having maintained and nurtured a fruitful, two-decade long relationship. This project is not the sole accomplishment of the former’s mining contracting endeavours, however.
Africa Outlook issue 77 | 3
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andvik Mining and Rock Technology is a key supplier of the state-of-the-art equipment used by Caspian, East Africa’s premier mining contractor, in Tanzania, helping to empower its highly desired services. “Sandvik are a world-renowned manufacturer of drill rigs. Our relationship with them stretches back more than a decade,” states Simon Mayer, Business Development Manager of Caspian Tanzania, outlining the two companies’ fruitful connection. “They provide us with great after service support, and that isn’t something that all manufacturers do in this part of the world.” Mayer’s appreciation for Sandvik’s commitment to service excellence is most recently evidenced by Caspian’s latest order of a Sandvik Pantera DP1500i. A hydraulic, diesel-powered, self-propelled surface top hammer drill rig, this machine will drastically enhance Caspian’s production and pre-split drilling on open mine pits and other relevant projects. “The Sandvik Pantera DP1500i is an intelligent, selfpropelled, self-contained, crawler-based surface drilling rig equipped with a cabin and rod changer,” explains Peter Kihedu, Key Customer Manager at Sandvik. “With practical intelligence built in, it is perfect for production drilling in large quarries, open pit mines and construction work sites, and well suited to wall control and development works. The rig can be customised and equipped with a variety of options to meet any unique requirement.”
user interface, an easily adjustable control system, excellent stability due to an optimised centre of gravity, remote access and low fuel consumption. “We’re proud that Caspian has not only selected to purchase the DP1500i from us, but also that it has asked for our aftermarket support in a 12-month on-site expertise service agreement,” reveals Kihedu, echoing Mayer’s own statements. “Our highly skilled Sandvik service specialists will work by Caspian 365 days a year to share expertise and help the customer to solve any challenges that it may face.” From maintenance scheduling, parts planning and forecasting to equipment audits and technical training, Sandvik’s expertise on site service is a crucial part of its offering, setting the business apart through dedicated, coherent customer care. The DP1500i, now on site, will add to Caspian’s existing fleet of DP1500 surface drills, the customer already having experienced major benefit from Sandvik’s products. “We already have three machines of the same model, so it makes sense that we continue to source the same equipment,” Mayer affirms. “Practically, this has huge benefits for us, from operator training to the consignment of spare parts. “We will continue to use Sandvik’s machines for as long as they offer us their fantastic in country support and have the correct sized machines for the projects that we are working on.”
Not only this, the DP1500i also offers the highest power in its class for improved penetration rates, and produces comprehensive drilling information, from the condition of the drill to the level of work performed. Its other advantages include an advanced
For more information contact: sandi.zaranyika@sandvik.com
CASPIAN TANZANIA
Indeed, Caspian has amalgamated an enviable portfolio since it leaped into the sector, further evidenced by its role in the development of the Golden Pride Gold Mine. Famed as the Tanzania’s first modern commercial gold mine since its opening in 1999, Caspian conducted the drilling, blasting, loading and hauling functions of the Nzega District-based open pit project, providing heavy earth moving services to Australian firm Resolute Mining Limited. In total, Golden Pride produced more than 2.2 million ounces of gold in its 15 years of operation before closing in late 2013. Meanwhile, 2004 also saw Caspian sign a major deal with PANGEA Minerals Ltd, a wholly owned subsidiary of Barrick Gold, to provide mining services at the Tulawaka Gold Mine in Biharamulo in north-western Tanzania. 6 | Africa Outlook issue 77
“WE’RE AN AMBITIOUS LOCAL COMPANY WITH TANZANIAN SHAREHOLDERS, A DYNAMIC WHICH ENABLES US TO STRIKE THE BALANCE BETWEEN HAVING THE KNOWLEDGE TO NAVIGATE THE COUNTRY’S SOMETIMES TRICKY WATERS...” Operating as both an open pit and underground mine between 2005 and 2013, this site produced nearly a million ounces of gold – a figure almost double that suggested by the original feasibility study – after being brought to life by the expert capabilities of the country’s largest contractor. “We’ve worked on the vast majority of major mines in this country,” Aziz declares. “Sometimes we’ll operate as the complete mining contractor and other times we’ll conduct major earthworks and civil works – we’re ultimately flexible in meeting the requirements
of our customers. “And I believe the reason we’ve been so successful in doing so over the years is simply because we’re Tanzanian. “We’re an ambitious local company with Tanzanian shareholders, a dynamic which enables us to strike the balance between having the knowledge to navigate the country’s sometimes tricky waters while simultaneously upholding the world-class standards that our customers, the likes of Barrick Gold and AngloGold Ashanti, have come to expect.”
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CASPIAN TANZANIA
A COMMUNITY COMPANY This combination of modernity and locality defines the essence of Caspian’s culture. With an employee base constituting 98 percent Tanzanian citizens, Aziz is quick to admit that the firm prefers to offer working and upskilling opportunities to the surrounding communities in which it operates. “We generally look to offer internal promotions and run lengthy in-house training initiatives,” he affirms. “With our vehicle operators, for example, we will start them off on trucks and train them up to be able to drive and operate more complicated vehicles as we and they see fit. “There’s no vocational training or external bodies for mining contracting education in Tanzania. We’re the lead8 | Africa Outlook issue 77
“WE’RE DEFINITELY DIVERSIFYING. WE’D HAD TO ADAPT TO MARKET CONDITIONS, BUT WE’VE GOT A WHOLE LOT OF MACHINERY, EXPERTISE AND A GREAT TEAM THAT ARE MAKING THIS EASY” ing such business here, so we’ve had to provide education internally – something we’re ultimately proud of.” Owed to this emphasis on employee development, Caspian has established a reputation as a community company, many of its staff having spent their entire careers with the business. For Aziz himself, this has been apparent since the company’s foundation over three decades ago. “The amount of people who have led long, fruitful careers here is quite incredible,” he declares. “Whether it’s on site or at the head office in Dar es
Salaam, from members of the management team to the mechanics team and even those who make cups of tea, many have been here for 10, 15, even 20 years.”
DRIVEN BY DIVERSIFICATION To some extent, it is this close-knit, long-standing team that provides Aziz with optimism for the future. “To reiterate, it is our local workers and local management team that provide us with our major competitive advantage,” he continues. “Where a lot of foreign competitors are scared away
MINING
New investments will see Caspian enter a period of diversification by Tanzania’s operating environment and regulations, we’re still comfortable working, investing here and taking on new challenges.” Looking ahead, new investments will see Caspian enter a period of diversification in the coming months, the firm aiming to expand and consolidate its revenue streams in a variety of new ways. It is currently partnered with Yapi Merkezi, for example, a Turkish enterprise that is overseeing the construction of the Standard Gauge Railway in Tanzania – set to become the fastest railway in East Africa, stretching 1,224 kilometres to connect Uganda, Rwanda, Democratic Republic of Congo and Tanzania itself. “We’ve been doing a lot of plant hire work with them, and are also looking
at potentially developing our own mining projects,” Aziz adds, pointing to this latter ambition as a particularly exciting long term prospect. “We’ve got all the necessary equipment available, so it makes sense. “Currently we’re looking at a number of different potential projects in Tanzania, with acquisition opportunities having improved in the past three to four years, and we’re already considering a few different commodities to target. “Nothing has come of it yet, but we’re not in a hurry. You don’t build a mine overnight after all.” Coupling this with numerous other targets, from future mining contracting jobs to the reprocessing of tailing stumps at older mines, it’s hard to argue against the fact that the years
ahead look bright for Caspian. Aziz concludes, inciting confidence: “We’re definitely diversifying. We’d had to adapt to market conditions, but we’ve got a whole lot of machinery, expertise and a great team that are making this easy. “For somebody who understands the risks, there’s an opportunity to pick up projects and move them forward – this is the position that we feel we are in.”
CASPIAN TANZANIA www.linkedin.com/company/caspian-ltd
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