African Business Review - September 2015

africanbusinessreview.co.za

Finance

Morocco’s New PPP Legal Framework

SPECIAL REPORTS:

LISCO & MTN Benin

September 2015

TOP 10

C oun For H tries u Ca p i m a n tal

Leaders

CAAZ Civil Aviation Authority Of Zimbabwe

Photo Credit: Tinotenda Chemvura - Creative Commons/by-nd/3.0

Petroplan: Oil And Gas Recruitment

EDITOR’S COMMENT

Africa: Setting The Standard H E L L O A N D W E L C O M E T O the September Issue of

African Business Review, our mixture of Company Reports and Front of Book Articles this month covers a range of topics affecting the African continent: everything from technology, new legislation and recruitment, to mining and the latest data from the World Economic Forum.

Our company reports this month cover a range of large and mid-sized players on the continent. Our cover story charts the progress of the Civil Aviation Authority of Zimbabwe which is striving to increase tourism to the country. It is a member of ACI Africa which is also featured in this issue.

This issue features a full report on Shanta Gold which is set to develop Tanzania’s significant gold reserves while bringing global standards to the region through its business and CSR practices. We also explore the latest successes of MTN which is bringing to bear the experience of a mighty multinational telco in its operations based in Benin.

Last but not least, we have a report that charts the unique story of the Libyan Iron and Steel Company, which is defying circumstances and undertaking a massive production expansion.

Kicking off this month’s FOB is an exclusive interview with Petroplan’s newly appointed Regional Recruitment Manager for Sub Saharan Africa Lindsay Sher, who discusses the nuances of oil, gas and energy recruitment. Also featured is another exclusive contributed piece by Allen & Overy exploring recent developments in Morocco’s PPP legislation. Last but not least, we use data collected by the World Economic Forum to rank the Top 10 African countries for Human Capital Development.

Enjoy the issue!

Nye Longman Editor nye.longman@wdmgroup.com 3

CONTENTS

6

Features

Exclusive interview with Petroplan Regional Recruitment Manager Lindsay Sher LEADERSHIP

14

TOP10

FINANCE

Morocco’s New Ppp Legal Framework 4

September 2015

22

Countries For Human Capital Development

34

28

Airports Council International, Africa region (ACI Africa)

52

ivil Aviation C Authority of Zimbabwe

42

APM Terminals

68

Palabora Copper

Shanta Gold

Company Profiles SUPPLY CHAIN 28 Airports Council International, Africa region (ACI Africa) 34 Civil Aviation Authority of Zimbabwe 42 APM Terminals

MINING

80

Libyan Iron and Steel

52 Shanta Gold 68 Palabora Copper

MANUFACTURING 80 Libyan Iron and Steel

TECHNOLOGY 90 MTN Benin

CONSTRUCTION 100 Amdec Group

100

Amdec Group

90

MTN Benin 5

LEADERSHIP

Exclusive interview with Recruitment Mana

We discuss the nuances of the oil and gas recruitment indu

h Petroplan Regional ager Lindsay Sher

ustry, as well as possible trends to look out for in the future E D I T E D B Y : N Y E LO N G M A N 7

LEADERSHIP ABR: Could you provide a brief background of yourself, including work and education?

LS: My role at Petroplan, the specialist oil, gas and energy recruiter, is Regional Recruitment Manager for Sub-Saharan Africa. Based in Cape Town, I am responsible for the overall growth, development and profitability of Petroplan’s operations in the region. I joined the company from one of South Africa’s largest permanent recruitment companies where I was Head of Commercial and Engineering Recruitment. In total, I have over 12 years’ experience in the recruitment industry as well as a diploma in business management.

ABR: What are the challenges, if any, of being a woman in the energy recruitment industry?

LS: I have not come across any

challenges thus far. There is nothing stopping talented women producing great results for clients in the oil, gas and energy recruitment sector.

Although the industry does tend to have a large proportion of male candidates, having the skills to place professionals in the right role is not dependant on gender. Additionally, South Africa is my home so I’m very comfortable working here.

ABR: What are the challenges of recruiting in Sub-Saharan Africa?

LS: Currently the main challenge is the skills shortage, as the demand for skilled employees is exceeding the supply. Another issue is that the global oil, gas and energy workforce is ageing and some employers in the sector are largely dependent on a workforce that is nearing retirement.

“My role at Petroplan, the specialist oil, gas and energy recruiter, is Regional Recruitment Manager for Sub-Saharan Africa. Based in Cape Town, I am responsible for the overall growth, development and profitability of Petroplan’s operations in the region” 8

September 2015

L I N D S AY S H E R

9

LEADERSHIP Therefore, recruiting new talent with the relevant skills and qualifications is becoming increasingly important.

A strong focus on training and development is essential in addressing these issues.

There are also numerous legislative, red tape and nationalisation issues that can present challenges for recruiters in the Sub-Saharan African market, both in terms of attracting talent from other locations and placing local professionals with international businesses operating in the region.

ABR: What trends are you currently observing in the energy recruitment industry?

LS: To overcome the skills gap in the market, many clients are hiring expatriates when filling management positions and skill-intensive roles. However, relying solely on this strategy is unsustainable.

At Petroplan, we challenge our clients’ established ways of thinking and encourage them to shortlist beyond the obvious candidates.

Following the oil price decline, many employers in the industry have reacted with a short term view 10

September 2015

L I N D S AY S H E R

“At Petroplan, we challenge our clients’ established ways of thinking and encourage them to shortlist beyond the obvious candidates.” resulting in both salary and staff cuts.

However, Petroplan recruits for a diverse number of specialisms across the oil and gas sector. Therefore, we have been able to adapt to the current market as there is a steady demand for professionals in specialist, technical disciplines such as construction, mechanical and structural.

ABR: What are your predictions for the future of the energy recruitment industry?

LS: Raising the profile of the oil, gas and energy recruitment industry could help to attract new talent into the sector. By presenting the industry to young people as a rewarding career choice, new graduates can be secured at an early stage of their careers.

11

LEADERSHIP

“Raising the profile of the oil, gas and energy recruitment industry could help to attract new talent into the sector. By presenting the industry to young people as a rewarding career choice, new graduates can be secured at an early stage of their careers�

Additionally, considering the current drive for better return on investment caused by the oil price decline, recruitment businesses could 12

September 2015

benefit from using digital technologies to maximise efficiency. This can allow access to candidates who are mobile, attracting a broader range

L I N D S AY S H E R

of applicants to enrich the available talent pool. Furthermore, using techniques such as video interviewing can allow for quicker conversion from interview to placement.

ABR: What is your strategy for running an effective (management) team?

LS: It all starts with an effective training and on-boarding process. At Petroplan, we have a comprehensive training plan, which runs over

six weeks and ensures that new hires are set up for success.

Following this, I like to spend as much time with my team as possible, ensuring that each recruiter understands both candidate and client needs. I am a big believer in treating everyone as an individual and understanding each person’s personality, strengths and weaknesses.

13

FINANCE

Morocco’s New PPP THE RECENT LEGAL LEGISLATION PROVIDES PUBLIC AND PRIVATE SECTOR STAKEHOLDERS WITH AN EXEMPLAR FOR THE FUTURE

14

September 2015

P Legal Framework Writ ten by: HIC H A M N AC IRI (M anaging Partner) & ME HDI BE NZ A KO U R (A ssociate).

N AC IRI & A S S O C IÉ S with A L L E N & OV E RY, C A S A BL A NC A , MORO C C O. Edited by: N Y E L ONG M A N

15

FINANCE ADOPTED IN DECEMBER 2014 with the clearly stated aim to promote the development of infrastructure and the improvement of public services, critical for the growth of the country, Morocco’s law on publicprivate partnership contracts (PPP) has recently entered into force.

This new legislation has been adopted following a rather lengthy preparatory period, including benchmarking with other jurisdictions Sea Port, Casablanca - Morocco

16

September 2015

such as France, Chile and Canada. It is to some extent similar to the French PPP law adopted in 2004 and more or less comparable to existing African legislations, such as Cameroon’s PPP law adopted in 2006 and Senegal’s law on BOT adopted in 2004.

An overall contract The Moroccan law defines the PPP as a contract whereby a public entity entrusts a private party with an overall

MOROCCO’S NEW PPP LEGAL FRAMEWORK

mission covering the design, all or part of the financing, the construction or renovation, the maintenance and/ or the exploitation of a public service work / infrastructure and/or the performance of the related services.

The recourse to PPP is currently open to the Moroccan State, to national bodies in charge of public services (ONDA, ONEE, ANP, etc.) and public companies and is expected to be open to local

authorities (e.g. municipalities) once organic laws provided for by the Moroccan Constitution are adopted.

Promotion of competition and innovation A PPP can only be concluded once a project specification assessment has been carried out and, in principle, further to a competitive tender process which selects the “best value offer.”

But in some specific cases, a PPP

17

FINANCE

‘The parties to a PPP remain free to share the commercial risk by adopting a remuneration scheme combining the “rent” paid by the public partner, fees paid by the users of the public service and resources generated by the exploitation of the project’s assets’

City view of Agadir, Morocco may be entered into by way of direct negotiation with the private partner.

An operator can also submit to public entities a spontaneous proposal for a project that is technically, economically or financially innovative and, subject to some conditions provided by the law, such a proposal can result in direct negotiation between the public entity and the proposal’s holder.

18

September 2015

Optimal risk allocation As opposed to traditional contractual instruments such as public procurement contracts and concessions, PPPs allow optimal risk allocation.

In this respect, the key difference between a PPP and a concession is that of commercial risk: under the classical PPP remuneration scheme, the private partner receives a “rent”

MOROCCO’S NEW PPP LEGAL FRAMEWORK

from the public partner which is supposed to remain the same throughout the duration of the PPP, so that no commercial risk is borne by the private partner, whereas a concessionaire shall perceive a remuneration linked to the number of the public service users and thus bear the entire commercial risk.

However, the parties to a PPP remain free to share the commercial

risk by adopting a remuneration scheme combining the “rent” paid by the public partner, fees paid by the users of the public service and resources generated by the exploitation of the project’s assets. Such flexibility allows the parties to define the most appropriate risk allocation and remuneration scheme on a case by case basis.

19

FINANCE Bankability The Moroccan PPP law also introduces a certain number of principles and mechanisms aimed at protecting the lender’s interests.

For example, the law provides a step-in mechanism allowing the public partner to substitute the private partner for another contractor upon request from a lender (in the event of default from the primary contractor vis-Ă -vis the lender).

It must also be noted that the Nicham Naciri

Medhi Benzakour

20

September 2015

Construction as a part of the Port Tan

MOROCCO’S NEW PPP LEGAL FRAMEWORK

property regime set out for the assets built/acquired by the private partner and, to some extent, the aforementioned remuneration schemes are meant to allow the implementation of proper security packages.

Modern dispute resolution mechanisms During the last decade, the Moroccan legislator has gradually opened up the way for alternative dispute resolution

mechanisms in the context of public contracts. In the same spirit, the PPP law requires a dispute resolution clause which can allow the recourse of conciliation, conventional mediation and arbitration. To conclude, Morocco now holds a comprehensive, rather clear and quite flexible legal PPP framework which will undoubtedly offer business opportunities in various sectors such as transport where major projects are expected to be launched by the beginning of 2016.

nger-Med 2 project to be finished in 2016

21

TOP 10

Countries Human C Developm

Data from the World Eco highlights some globally economies set alongsid challenging circumstan Written by: Nye Longman

s For Capital ment

onomic Forum y competitive de a basket of nces

23

TOP 10 AS A CONTINENT, Africa experiences economic growth at an average of roughly 6 percent per year but the manner in which this is shared and distributed has been sporadic and patchy at best; one of the ways this manifests can be seen in how a nation develops the skills and professional abilities of its people. Those nations that have striven to meet their Millennium Development Goals (MDGs) to reduce extreme poverty have also seen a similar growth in human capital development capabilities.

The World Economic Forum (WEF) uses its Human Capital Index in order to measure countries’ ability to maximise and leverage their human capital, across five age groups and 124 economies. It assesses a range of learning and employment outcomes including labour force participation rate, educational attainment and skill diversity.

The highest performers in the region, including Mauritius, Ghana and Zambia have achieved an average score (that the WEF calls “distance to the ideal”) placing them ahead of the Middle East and North African average (not to mention that 24

September 2015

for Sub-Saharan Africa), and on a par with the lower half of the Latin American and Asia-Pacific region.

On average the Sub-Saharan region has a score of 54.46 out of 100 which makes it the lowest scoring continent in the world but this result does not mean that the area should be written off, especially given that these economies are still in the development stage.

Interestingly, South Africa only ranks as seventh on the list,

‘Generally speaking, unemployment rates across these countries tend to be quite high due mainly to poor economic development, especially with many economies remaining undiversified and dependent on marketsensitive exports’

H U M A N C A P I TA L D E V E L O P M E N T

As a continent, Africa experiences economic growth at an average of 6 percent per year which is surprising given that the country is has the second largest (and, arguably, most diversified) economy on the continent. While the country displays some of the highest secondary education rates and also a high number of its citizens in highly skilled work, the number of people in mediumskilled work is significantly lacking.

Generally speaking, unemployment rates across these countries tend

to be quite high due mainly to poor economic development, especially with many economies remaining undiversified and dependent on market-sensitive exports. However, these countries typically (although not always) have large informal sectors alongside significantly sized populations dependent on subsistence agriculture.

Another factor that the report highlighted was that most countries 25

TOP 10

LEADERS TABLE 1. Mauritius – Global Rank 72 2. Ghana – Global Rank 82 3. Zambia – Global Rank 83 4. Egypt - Global Rank 84 5. Botswana – Global Rank 88 6. Cameroon – Global Rank 89 7. South Africa – Global Rank 92 8. Namibia – Global Rank 94 9. Morocco - Global Rank 95 10. Kenya – Global Rank 101

had comparatively high labour force participation rates for those aged 65 and over; despite the obviously negative interpretation arising from this, the real picture is less clear-cut.

On the one hand, it is certainly true that inadequate social support and pension provision obviously drives many of this age group to remain in work. However, there is much to be said for skilled, experienced workers remaining in their jobs, especially when formal education centres are limited or completely absent.

The report highlighted was that most countries had comparatively high labour force participation rates for those aged 65 and over

H U M A N C A P I TA L D E V E L O P M E N T

Mauritius certainly outperforms the other African economies by a wide margin, particularly for its high education enrolment rates across the board. Graduate trends on the island have failed to diversify, with nearly 60 percent of students gaining qualifications in either social sciences, business or law. So even Africa’s best country for human capital development still has a relatively small level of skills diversity.

Many barriers remain to African economies which hamper their ability to develop their abundant human capital. However, those that have made it into this top 10 have many

‘What is clear is that even the continent’s most exemplary economy still has a way to go before it can truly compete on a global level; those which fall below it must strive to avoid becoming too over-specialised’

A workforce with a broader range of skills would greatly benefit the continent factors in common which go beyond what the WEF study measures.

Indeed, the same economies appear in a recent WEF competitiveness report and for good reason. What is clear is that even the continent’s most exemplary economy still has a way to go before it can truly compete on a global level; those which fall below it must strive to avoid becoming over-specialised.

27

Airports Council International, Africa Region (ACI Africa): Supplied by: ACI

29

ACI AFRICA

A

CI Africa was established as a region of ACI in 1991 with the overarching objective of advancing the collective interests of African airports and the communities they serve.

ACI Africa consists of 62 regular members in 50 countries managing 250 airports and 21 World Business Partners.

“The continent is vast and dynamic, and serving our membership requires developing bespoke solutions to myriad challenges,” explained Ali Tounsi, Secretary General, ACI Africa. “As such, we focus on training, conferences and exhibitions, and collaboration with aviation stakeholders to promote a safe, sustainable and economically viable airport industry that is well positioned for future growth.”

In the realm of training, ACI Africa, in coordination with the ACI Fund and the ACI Developing Nations 30

September 2015

S U P P LY C H A I N

Assistance programme, regularly organis es free courses in French and English to members to improve the capabilities of their staff, especially in the areas of security, the development of non-aeronautical revenues and safety.

Indeed, ACI’s top priority is ensuring safety across every aspect of airport operation. With this goal in mind, the ACI Airport Excellence (APEX) in Safety programme was established in 2012 with the main objective of promoting safety at member airports by identifying gaps and sharing best practices with an eye toward eventual aerodrome certification.

In 2014 ACI Africa welcomed the APEX in Safety team at Sir Seewoosagur Ramgoolam International Airport in Mauritius; Félix Houphouët Boigny International Airport in Abidjan; Diori Hamani International Airport in Niger; Cotonou International Airport; Khartoum International Airport; PortGentil International Airport; and Ouagadougou International Airport. At the time of writing, Nigeria’s Nnamdi Azikiwe International Airport is preparing to host an APEX review in mid-June.

“ACI Africa and its members understand that ensuring the safety of the traveling public is paramount to building a sustainable industry,” Tounsi said. “I’d like to congratulate African airports for their proactive stance with regard to improving safety standards.”

ACI Africa is equally committed to representing its members’ interests on both the regional and world stages, participating in events on a

“ACI Africa and its members understand that ensuring the safety of the traveling public is paramount to building a sustainable industry” – Ali Tounsi, Secretary General, ACI Africa

w w w. a c i - a f r i c a . a e r o

31

ACI AFRICA

32

September 2015

S U P P LY C H A I N

regular basis as a means of sharing knowledge and bringing attention to airport issues. Most recently, ACI Africa actively participated in the Aviation ICT Forum; the Second Airport Expansion Summit; the UNWTO Regional Seminar on Tourism and Air Connectivity in Africa; the African Renaissance Movement Conference; IATA Aviation Day; the Summit of the African Strategy Roads; and the ICAO meeting on Development of Air Cargo in Africa.

In addition to the above, ACI Africa organises events as a means of giving delegates a forum to share experiences and plot the future of the industry in the region. In 2014, ACI Africa held a very successful Regional Security Conference in Dakar, Senegal, as well as its 23rd Annual Assembly, Conference & Exhibition in Durban, South Africa.

“2015 is shaping up to be just as exciting as last year,” Tounsi noted. “In April ACI Africa held the 53rd Meeting of the Board and Working Groups, with its Regional Exhibition and Conference taking place at the same time. Looking ahead, we will welcome delegates to Hammamet, Tunisia in October for the 24th ACI Africa Annual Assembly, Conference & Exhibition.

“ACI Africa is proud to act as the voice of the region’s airports,” concluded Tounsi. “Africa is at the forefront of emerging markets with regard to its high potential for increased air travel, and as the airport industry evolves, we will be there to ensure that it does so safely, securely and sustainably.”

Pascal Kowu Komla, President

Ali Tounsi, Secretary General

w w w. a c i - a f r i c a . a e r o

33

Civil Aviation Authority Of Zimbabwe Opening Country Up To The World Written by: John O’Hanlon Produced by: Daniel Pritchard

35

C I V I L A V I AT I O N A U T H O R I T Y O F Z I M B A B W E

The firm has been established as a commercial entity for more than 16 years, and now it is hoping to generate more interest from international visitors now that political stability has returned to the African country

36

September 2015

C

ivil Aviation Authority of Zimbabwe (CAAZ) is the country’s aviation board which oversees all aspects of aviation in the African hinterland.

CAAZ operates, manages and develops eight airports in Zimbabwe, which are strategically located to serve major tourism destinations in the territory; these include three major international airports, namely Harare, Victoria Falls and JM Nkomo, and five regional airports, namely Masvingo, Hwange, Kariba, Charles Prince and Buffalo Range.

In the airports themselves CAAZ provides the overall management of the facility and has several concessionaires who handle air cargo, passengers, car parking, fueling, airside shuttle bus, cleaning services and so on.

CAAZ provides air navigation and other technical services that are important to all aircraft flying into or out of Zimbabwe. From the air traffic control point of view CAAZ constantly manages the airspace, and so has at all those airports air traffic contollers who control and monitor the aircraft movement with the latest technology.

As an additional product CAAZ offers consultancy services in aviation safety and security within the region.

As part of its regulatory role, CAAZ also serves as the governing body for enforcing laws and regulations related to aviation issues and is responsible for ensuring that stakeholders comply and commit to all regulations and meet obligations.

S U P P LY C H A I N

CAAZ assumes responsibility for issuing licences and permits, as well as verification for various activities including aircraft registration, personnel licences, aircraft operations and airline schedules.

CAAZ said: “The firm is dedicated to bringing more visitors to Zimbabwe, hence relentless participation in local and international destination marketing campaigns in collaboration with Zimbabwe Tourism Authority and other tourism players, with a goal to increase traffic into Zimbabwe.”

In addition CAAZ establishes memorandums of understanding (MoUs)and partnerships with private tourism industry through collaborative marketing campaigns.

CAAZ plays a role in building the image of Zimbabwe just like many other bodies, it is a collective effort, and everyone plays a role in getting the positive message out there to people who have perhaps not heard much about Zimbabwe.

The CAAZ participates in route development and airport marketing forums (Routes World, Middle East and Africa). Furthermore targeted airlines are constantly engaged with, electronically or directly at relevant forums.

As part of an endeavor to attract airlines to Zimbabwe, The Civil Aviation Authority of Zimbabwe offers an incentive scheme to new airlines or existing airlines expanding into new routes. The incentive offer constitutes a 40 percent discount on air navigation, landing

“The firm is dedicated in bringing more visitors to Zimbabwe, hence relentless participation at local and international destination marketing campaigns in collaboration with Zimbabwe Tourism Authority and other tourism players”

w w w. c a a z . c o . z w

37

C I V I L A V I AT I O N A U T H O R I T Y O F Z I M B A B W E

The Reinsurer of first choice.

CHINA JIANGSU INTERNATIONAL ECONOMIC & TECHNICAL COOPERATION GROUP LTD

• Engineering Works • Engineering Consultancy • International Trade • Real Estate • Labour Services

T 0086 25 83310555 F 0086 25 83304526 cjietcc@jinteco.com 5 • West Beijing Road • Nanjing • China

38

July 2015

Dependability, Professionalism Responsiveness, Flexibility • Airline ticketing – local, regional and international • Hotel accommodation reservations • Travel Insurance • Airport transfers • Car hire • Visa assistance • Events management • Inbound and outbound tours • Cruises • Medical tourism

1 Kenny Close, Avondale, Harare, Zimbabwe T +263 772 285 485 / 731 285 485 / 731 716 3070 enquiries@traverzetravel.co.zw www.traverzetravel.co.zw

S U P P LY C H A I N

and parking for a period of twelve months from the commencement of operations.

The upgrading of J M Nkomo International airport (completed) and Victoria Falls International Airport (In progress) demonstrate outstanding commitment to the development of aviation in Zimbabwe.

Back in 1999 there were 34 different airlines flying to Zimbabwe, mostly into Harare. Then the period of hyperinflation and the subsequent sanctions came into play and CAAZ lost over half of those airlines, most being long haul intercontinental flights. The European carriers all left Zimbabwe as a destination. Traffic went down to about eight airlines at the height of the hyperinflation economic situation in 20072009, but now it is on the recovery path and has grown back to 15 airlines, and is still growing.

More recently Zimbabwe has seen some of the international players coming back and setting up routes again. A lot of regional airlines have continued to fly to Zimbabwe, and some airlines have even grown the number of frequencies. In fact; Kenya Airways, Ethiopian Airways and South African Airways have all increased frequency of flights to Zimbabwe.

CAAZ has also attracted brand new international airlines such as Emirates, which is now flying the Harare route daily.

The concerted effort to become one of the most attractive tourism destinations in Africa seems to be paying off, as CAAZ is

1999 The Year that Civil Aviation Authority Of Zimbabwe was founded

CAAZ Tower

w w w. c a a z . c o . z w

39

C I V I L A V I AT I O N A U T H O R I T Y O F Z I M B A B W E

“We are almost going at double pace, because we are coming from a position that is artificial due to the past economic situation. So we are expecting to experience a jump in growth to catch up and then grow healthily afterwards�

experiencing continuous growth in passenger and aircraft movement since recovery in 2011.

Future investments and objectives In 2013, CAAZ embarked on a two year project to upgrade the Victoria Falls International Airport to facilitate the operation of wide body aircraft there and increase passenger handling capacity.

The upgrading project, which is currently ongoing, is scheduled for completion by the end of 2015. The project entails construction of a new international airport passenger terminal capable of handling 1.2 million passengers per annum and a four kilometre long runway capable of handling long haul flights.

With so much renewed optimism surrounding the Zimbabwean aviation industry, the Authority is determined not to lag behind. As a result, management is currently going through the procurement process for new ICT and air navigation systems which will cost millions of dollars.

S U P P LY C H A I N

Company Information INDUSTRY

Aviation industry HEADQUARTERS

Harare FOUNDED

With regard to future ambitions, the company concluded: “We are almost going at double pace, because we are coming from a position that is artificial due to the past economic situation. So we are expecting to experience a jump in growth to catch up and then grow healthily afterwards.

We also want to capture the growth markets and attract more airlines from those regions. We are looking at creating more employment opportunities in Zimbabwean aviation and related industries.

“We are going to increase by at least 30 to 40 percent partly because of infrastructure improvements. Our business directly benefits from increased demand, from tourism to movement of goods. We cherish the positive image that is now growing on the international stage for Zimbabwe, we and we have already started witnessing the potential of business this positivity can attract.

“Zimbabwe is a country worth visiting.

If you are flying in, be assured of safety, security, quality and efficiency.”

1999 PRODUCTS/ SERVICES

Zimbabwe’s aviation board which oversees all aspects of aviation in the African hinterland

w w w. c a a z . c o . z w

41

The Enabling Partner

For Economic Growth Written by: Sheree Hanna Produced by: Daniel Pritchard

43

APM TERMINALS

The container terminal company has made huge financial and operational investments in its Nigerian port facilities in a bid to drive greater efficiencies and aid the country’s path to economic growth

A

PM Terminals which took over running its Nigerian concessions in 2006, has made huge investments in upgrading and improving container port facilities at the Container Terminal Port located in Apapa, Lagos.

The company’s long term investment strategy is to enable greater efficiencies to benefit its customers, assist the wider economic growth plans of the Federal Republic of Nigeria with whom investment plans are aimed at complementing, thereby playing its role in lifting global trade from Nigeria.

APM Terminals Nigeria currently operates two ports: the Port of Apapa and the Port of Onne employing about 1,500 staff.

APM Terminals Nigeria currently operates two ports: the Port of Apapa and the Port of Onne employing about 1,500 staff

44

September 2015

S U P P LY C H A I N

APM terminal Apapa is the busiest container terminal in West Africa

Worldwide network APM Terminals operates a Global Terminal Network of 20,600 professionals and over 60 ports and 135 inland services operations in 58 countries around the globe. APM Terminals designs, builds and operates port and terminal facilities, as well as providing cargo Inland Services for cargo transportation between port facilities and inland locations, as well as other associated cargo handling functions.

The world’s shipping industry and the global logistics chain rely upon APM Terminals and the APM Terminals Global Terminal Network for efficient access to all global markets.

In 2014, APM Terminal Apapa, which is the busiest container terminal in West Africa, handled 700,000 TEUs alone which represents

20,600

Number of staff employed

by APM Terminals

w w w. a p m t e r m i n a l s . c o m

45

In 1609, Galileo altered the course of scientific astronomy when he became the first man to use the newly-invented telescope in his study of the heavens.

This change of approach and method enabled him to simplify and account for what had previously been complicated and inexplicable problems.

In the same way, as modern insurance grows increasingly varied and complex so the need for a clear understanding of insurance.

At Hogg Robinson, we take pride in our ability to see each client’s requirements in his or her own light - with understanding, with experience, but without generalisation.

And this enables us to provide a clear and accurate assessment of insurance needs.

And that assessment leads to a carefully-tailored insurance policy, polic which with good reasons, our clints trust.

And we’ve never used a telescope yet!

...out of one....many specialist units...

Beneet from our specialist knowledge of insurance by contacting:

tel fax e-mail website

: : : :

2798900 2798906 info@hoggnigeria.com www.hoggnigeria.com

Insure your vision

Bode Emanuel Centre 225 ikorodu Road P.O. Box 1156 Lagos Nigeria

Creative insurance has our name on the cover.

Other Offices at Abuja, Calabar, Ibadan, Kaduna, Kano, Port-Harcourt, Warri etc.

APM TERMINALS

S U P P LY C H A I N

about 45 percent of the Lagos container market.

Record breakers APM Terminals Apapa established a new productivity record in July 2015, handling 868 containers on the 4,500 TEU-capacity Safmarine Chambal over 11.5 hours, for a gross crane productivity of 19 container moves per crane an hour and a berth productivity of 75.65 MPH (moves per hour). Thus, it became the first container terminal in Nigeria to surpass 75 MPH operational benchmark at the Mobile Harbour Crane port facility.

At inception in 2006, the average waiting time for vessels calling at the Apapa port was up to 30 days; which reduced to eight days as of 2010.

Today the number of wait days has been reduced to almost zero due to efficiency improvements.

Andrew Dawes, Managing Director of APM Terminals Apapa, said: “Not only have we removed the previous 30-day bottle neck to a move a customer’s cargo to the port, we have also made significant improvements in our real time on-terminal performance and operations”.

Driving efficiency Driving greater efficiencies such as eradicating port congestion surcharges, which nearly a decade ago stood at around $300 per container, to reducing freight trade costs and time out of the logistics chain, has enabled APM Terminals Apapa to raise its profile as

The average waiting time for vessels calling at the Apapa port was up to 30 days

11 The number of harbour cranes at APM Terminals

w w w. a p m t e r m i n a l s . c o m

47

APM TERMINALS

The investment in upgrading the container terminal facilities has included many changes from improving

a world-class port operations company.

“Our vision as a company both locally and globally is that to become an economic enabler and that is the backdrop of everything we do. At APM Terminals we don’t just lift containers, we lift global trade” said Dawes.

infrastructure to building new administration and engineering facilities

48

September 2015

Tapping the markets One of APM Terminal Nigeria’s ICDs is situated in Kano, a city of with a population of over 9 million people, in the north of the country where there is an historical, agricultural-based economy.

As part of its strategy to diversify its economy from oil revenue the federal government has rehabilitated a local train line. Aligning with this, APM Terminals has invested in new rail sidings at both its Lagos and Kano sites in anticipation of trade development in that direction.

S U P P LY C H A I N

Dawes said: “As the government diversifies its dependency from oil revenue, agriculture will take a more prominent place in the economy and for us, this has huge potential. We hope that by enabling these trade corridors via our ICD and rail links, we will in turn lift the agricultural trade potential for Nigeria.”

APM Terminals Apapa currently has weekly trains which will service import needs of customers, and enable traders from these areas to move their goods to market as well.

State-of-the-art facilities The investment in upgrading the container terminal facilities has included many changes from improving infrastructure to building new administration and engineering facilities.

There are now 11 mobile harbour cranes and a new fleet of rubber tyre gantry cranes.

Also, a state-of-the-art container location system has been installed enabling tracking of all containers thereby greatly reducing and pedestrian activity in the terminal yard, a key part of our safety and efficiency drive.

An e-platform has also been launched

Key Personnel

Andrew Dawes Managing Director Andrew Dawes has extensive experience in a wide range of terminal operational functions with several global terminal operators over a period of almost 20 years. In that time, Andrew has held senior management positions and developed expertise in management and port operations with different organisations in North America, Europe, Middle East and Africa.

“Our vision as a company both locally and globally is that to become an economic enabler and that is the backdrop of everything we do. At APM Terminals we don’t just lift containers, we lift global trade” – Andrew Dawes, Managing Director w w w. a p m t e r m i n a l s . c o m

49

APM TERMINALS

Safety and security have been top of the list for investment

to make operations smoother and more efficient for customers. “We now have a full online system where customers can make payments online, get receipts or refunds; thereby reducing the need to come to the terminal.

APM Terminals is the first container terminal in Nigeria to surpass 75 Moves Per Hour

50

September 2015

Standardised training APM Terminals globally standardised training packages are implemented in Nigeria. All APM Terminals employees worldwide comply with the same regulations set across all its facilities. “We have built a technical training facility on site and hold regular technical and soft skill trainings when the need arises. All staff here have access to the same training requirements as they would at any other APM Terminals

S U P P LY C H A I N

facility around the world,” said Dawes.

“We also believe in investing in future generations. Interns from local colleges are taken on in the hope that they gain access to this exciting industry and of course may choose us as an employer in the future.”

Safety and the Environment Most importantly; safety and security have been top of the list for investment for APM Terminals Apapa. “Our safety initiatives are our greatest passion. We currently operate and uphold a zero-pedestrian safety campaign on our terminal yard. All employees are the custodians of safety and that is the cornerstone of our investment in training and retaining the best staff we can.”

Environmental issues are taken very seriously and APM Terminals Nigeria has upgraded its Rubber Tyre Gantry with the latest models which has reduced fuel consumption per hour by almost 50 percent.

In the bid to meet global security standards, the company is working towards its ISO : 28000 certification. “We strive constantly to meet all security requirements locally and internationally in order to assure our internal and external customers that they are safe with us at all times,” said Dawes.

“Our high safety standards, improvements in operations and partnering with governments everywhere is part and parcel of our strategy of lifting global trade everywhere we are”.

Company Information INDUSTRY

Supply Chain HEADQUARTERS

Lagos. Nigeria FOUNDED

2001 EMPLOYEES

20,600 REVENUE

Not Disclosed PRODUCTS/ SERVICES

Shipping & Logistics

w w w. a p m t e r m i n a l s . c o m

51

SHANTA GOLD: Developing Written by: Nye Longman Produced by: Anthony Munatswa

g Holistic Mining Practices 53

S H A N TA G O L D

Luika Gold Mine, Ball Mills

The gold mining company is making a significant contribution to Tanzania’s local communities through exemplary operations

54

September 2015

S

hanta Gold is a Guernsey-based gold mining and exploration company which operates across several sites in Tanzania through its subsidiary Shanta Mining Company Limited (SMCL); one of the most mineral-rich countries on the African continent.

Off the back of ÂŁ73.82 million revenues, the company is seeking to expand its gold production output through its existing and developing mines.

While Tanzania has some of the most impressive gold reserves on the continent, these remain largely undeveloped; it has been the mission of Shanta to develop these assets and share the bounty with the communities it works in.

MINING

New Luika Gold Mine What makes the New Luika Mine increasingly useful to Shanta is its position to become a potential hub for all of its mining activities in the region; the facility consists of a conventional three stage crushing plant, along with two parallel mills. It has extensive potential for further development, as it adjoins the 1,300 square kilometres covered under license by Shield Resources, which it fully owns.

Currently, the company’s gold production is concentrated at this mine (which its owns through a 100 percent stake) spanning 16 square kilometres covered by three mining licenses and a single prospecting license which covers some 49 square kilometres. In order to enable access to high grade open pit ore reserves, and ensure future flexibility, a pushback has been planned at the Bauhinia Creek site which is estimated to be completed by the end of 2015.

Following a recent resource assessment, it was established that this mine contained a total in-situ resource of 1.48 million ounces.

The mine has shown record gold production of 84,028 ounces driven by seven consecutive quarters of increased production ending Q3 of 2014. Further drilling is scheduled this year which will decrease the risk profile of the mine extension associated with the mining work.

In a statement, the company said: “The update for the open pit reserves reflects the redesign of the open pits with a markedly reduced strip

300 Number of staff employed

by Shanta Gold ‘Off the back of £73.82 million revenues, the company is seeking to expand its gold production output through its existing and developing mines’

w w w. s h a n t a g o l d . c o m

55

BC Mining Limited Plot 1401E Chole Road Msasani Peninsular Dar es Salaam info@bcmining.net

BC Mining is a local Tanzanian company providing contract mining services and mining infrastructure development. Having completed all the mine infrastructure, in February 2013 BC Mining began with the opencast mining contract at Shanta Gold’s New Luika project. Our Management Team have successfully managed an average production volume of 300,000 bcms per month, which has been consistently achieved with a 90% equipment availability during this period.

Proud to be partnering Shanta Gold on their Journey

DRILLING

COMPLETE SOLUTIONS SERVICING THE EXPLORATION AND MINING SECTORS People you can work with

Bamboo Rock Drilling provides complete drilling solutions to the exploration and mining sectors on surface and underground mining operations. We are currently providing services to Shanta Mining Company Limited at their New Luika Gold Mine for blast hole, grade control, geo-tech and exploration drilling.

BLOCK F10, TIRDO COMPLEX KIMWIRI ROAD, NAMANGA DAR ES SALLAM +255 755 367 371 darren@bamboo-rock.com

S H A N TA G O L D

MINING

ratio for a proportionally much smaller reduction in reserves. We look forward to announcing the underground feasibility study later this quarter.

This is a win-win for New Luika as the surface mine benefits from a substantial reduction in operating costs while a potential underground operation gets additional high grade resource.”

Singida Mine SMCL’s holdings at its Singida site are substantial to say the least; since 2011 the company has been conducting its definitive engineering study (which is undergoing an update scheduled to finish this year), which revealed up to 450,000 ounces of gold. Resettlement negotiations are currently underway (in line with the company’s strict CSR guidelines) which will enable construction to go

SUPPLIER PROFILE

Luika Gold Mine, Metallurgical Lab

BAMBOO ROCK DRILLING

Bamboo Rock Drilling provides complete drilling solutions to the exploration and mining Sectors on surface and underground operations. We are currently drilling for Shanta Mining Company Limited at their New Luika Gold Mine (blast hole, grade control, geo-tech and exploration drilling), Acacia - North Mara Gold Mine (Underground diamond, Surface Diamond and RC drilling) and Magnis Resources Limited (Exploration drilling).

w w w. s h a n t a g o l d . c o m

57

ORYX OIL COMPANY LIMITED

Wealth Unearthed

Oryx Energies has been supplying the saving for Shanta Gold Mine was identified Shanta Gold Mine at New Luika with diesel by changing from Diesel to Heavy Furnace Our diverse range of robust products for its generators, since the mine’s inception. Oil (HFO) for power generation. Oryx Oil are designed to cope with the most Thischallenging fuel is themining mine’senvironments lifeblood and requires Tanzania will be building a facility that will the fuel supplier to reliably supply products provide 400m3 of HFO storage capacity to to specification, on time and in full, to avoid fuel the generators on site. The fuel will be any interruption in operations. delivered from Dar es Salaam. “Partners” New Luika is a remote site, with road involved in this project will work closely conditions that make transport a challenge. together to ensure that this initiative is Oryx Energies’ affiliate in Tanzania, Oryx Oil delivered on time and that Shanta Gold can Tanzania, has taken on this challenge and, reap the benefits. in collaboration with the mine, has ensured Oryx Energies in Tanzania provides an that mining operations do not run dry. integrated energy platform that masters the Even during the recent transport strike, and defining value chain from product sourcing to in storage Advancing, constantly evolving the future of our technology Oryx Energies ensured that the New and distribution. the global mining industry We are proud of the strong Luika mine received enough fuel to keep business relationship we have with Shanta operations Gold and wish Mike Houston and his team AEL Mininggoing.

Services (PTY) Ltd With the greater emphasis on cost reduction every success in the future.

Tel: +27 11 606 0000 in many mining due toEstate theNorth dip 1 Platinum Drive, companies Longmeadow Business Modderfontein, 1645 in the gold price, a significant operational www.oryxenergies.com www.aelminingservices.com

Oryx Energies is one of Africa’s oldest and longest established independent providers of Fuel,Lubricants, LPG and and associated services, with a presence in over 20 countries across the continent.

As a supplier to the Mining Industry in Tanzania. We are proud to be a partner of Shanta Gold

www.oryxenergies.com

S H A N TA G O L D

MINING

ahead which will eventually see a mine come into production with an expected lifespan of 10 years.

The future potential of the mine is covered by three prospecting licences which together span approximately 92 square kilometres and three mining licenses which enclose a total area of 30 square kilometres. One licence is wholly owned by SMCL, while GL Jossue and JB Joel Limited hold a 10 percent minority interest in two of the mining licences; Shanta fully owns all three of the prospecting licenses, giving it full direction and control in this regard.

Shanta Gold’s Singida open-pit mine revealed up to 450,000 ounces of gold

Songea Mine Shanta is also in the very early stages of exploring gold deposits at its site in the w w w. s h a n t a g o l d . c o m

59

S H A N TA G O L D

‘Despite having projects in differing stages of completion, Shanta is more than willing to invest in capitalising its operations’

Ruvuma Region of southern Tanzania using three prospecting licenses covering an area of roughly 65 square kilometres.

Following airborne magnetic and radiometric surveying in 2008, it was revealed that the site at Songea displayed uranium anomalism, which was later confirmed in 2009 using scintillometry surveys which further established the uranium potential in the area. Alongside these findings, the area also contains tourmaline, sapphire, topaz, and garnet (rhodolite) as well as gem quality cordierite, although whether Shanta is seeking to develop these assets remains to be seen.

Aerial view of the Songea mine

60

September 2015

MINING

Poised for Growth Despite having projects in differing stages of completion, Shanta is more than willing to invest in capitalising its operations. In January 2015 it carried out some additional infill drilling (totalling 2,676 metres) across nine drill holes which has increased the resource at both Bauhinia Creek and Luika and further improves confidence in the potential for underground mining at both deposits.

Last month, the company completed formal documentation for loan facilities with Investec Bank, following receipt of regulatory approval from the Bank of Tanzania. The loan facilities total $40 million, of which $20 million has been

Bauhinia Creek Pit

w w w. s h a n t a g o l d . c o m

61

HARD TO BEAT AND ROBUST SCOOPTRAM ST7LP The Atlas Copco Scooptram ST7LP combines superior productivity, proven reliability and global distribution.

A revolution of underground loaders built for demanding low-seam mining applications where back heights are as low as 1600mm, and where safety is paramount.

Atlas Copco Tanzania Ltd. Phone: +255 22 286 1571 www.atlascopco.co.tz

MANUFACTURERS OF PIPING SOLUTIONS FOR MINING APPLICATIONS

MINING APPLICATIONS PLASCO HDPE Pipes can be used for a variety of above and below ground installations in mining operations, including water transfer, treatment and recovery of mining minerals as well as slurry lines to convey suspended solid matter in quarries. HDPE Pipes are available up to 630mm PN20.

FABRICATED AND ELECTRO FUSION FITTINGS

FIELD SERVICES PLASCO offers professional on-site welding services to install HDPE pipelines using Butt fusion and Electro fusion welding technologies as well as pressure testing for up to 630mm diameter pipes.

VALVES AND FITTINGS

PLASCO also manufactures various types of custom-made HDPE fabricated fittings for specialized Mining applications as well as Compression fittings for a wide range of other uses.

Plot No.112, Mbozi Road, Chang’ombe P.O. Box 19956, Dar es salaam, Tanzania.

Tel (Landlines): +255-(0)-22-2199 820/ 821/ 822/ 823 Fax: +255-(0)-22-2863 551 Website: www.plasco.co.tz

Email: plascosales@plasco.co.tz

Sales Hotlines: +255 717 752 726 +255 686 350 543 +255 769 756 495

S H A N TA G O L D

MINING

used to refinance an existing bank loan from FBN Bank while the rest of the balance will be used as during the implementation of the New Luika Gold Mine Life of Mine Extension Project.

The finalisation of the loan will enable the company to decrease its cost of funding and will also provide greater financial flexibility for the entirety of SMCL’s projects across the country.

A statement from the company said: “We are delighted to have received regulatory approval for these new and competitive loan facilities with Investec. Together with our positive operating cash flow, the loan will put the company in a strong position to pursue upside potential through expansion and exploration opportunities.”

Shanta Gold is listed on London’s Alternative Investment Market (AIM) which belies that the company is not only in a position to receive funding on the world’s most successful growth market, but is also subject to world-class requirements and standards. The economy of Tanzania is heavily reliant on agriculture as a source of income and although mining only currently accounts for 3 percent of its GDP, SMCL’s current exploration efforts are set to make a significant contribution to the country’s economic diversification.

Leach Tanks

Gold Room

Responsible Mining The company has an exemplary CSR programme which covers everything from how it manages and develops its employees, to w w w. s h a n t a g o l d . c o m

63

Your Home In Rough Terrain

SBS Ltd. Supplying logistic solutions, quality camp and catering services in remote areas.

Small Business Solutions Ltd. Plot 5 Zambia Road, Oyster Bay P.O. Box 105933, Msasani Dar es Salaam, Tanzania Jason@sbslogistics.com +255 (0) 784 325 403 www.sbslogistics.com

+255 28 2501018 info@minetrade.co.tz • www.minetrade.co.tz

Tanzania • Mwanza • Dar es Salaam 1921

Ignazio Messina & C.

THE ITALIAN LINE

1994

Ignazio Messina & C. Pty Ltd

SHIPPING AGENCY IN SOUTH AFRICA

- WORKING C Professional Procurement Service forAFRICA Africa CA

THE ONLY INDEPENDENT RO-RO CONTAINER SERVICE IN THE TRADE WITH OWN CONNECTING SERVICES THROUGHOUT THE MEDITERRANEAN

Supporting Shanta with a Professional Procurement and Logistics Service NEW ENTERPRISE TRADING (PROPRIETARY) LIMITED Unit 2, Ferndale Mews, 15 Dover Street, Cnr Oak Avenue, Ferndale, Randburg, Johannesburg, South Africa Tel: (+ 27 11) 781 1387 | Fax: (+ 27 11) 326 4214 | Email: mstevenson@newent.co.za

For rates, bookings & enquiries: Jhb: 011 881 9500 Dbn: 031 365 5200 Cpt: 021 418 4848 Maputo: I.Messina Mocambique Limitada + 258 21 300020/35/37

S H A N TA G O L D

MINING

the ways in which it can reduce its impact on the environment and the communities that its mining operations come into contact with.

The company has constructed classrooms and medical facilities and has provided access to water through establishing and developing a range of local and national partnerships; it has even funded the sustainable, smallscale business initiatives. SMCL’s website captures the pride it has in its impact on the communities it operates in. The company said: “Employment of over 300 hundred local residents has also improved the disposable income in the area and is also allowing selfdevelopment within the family unit.”

Roughly 90 percent of the company’s employees are Tanzanian nationals, which sets

‘Roughly 90 percent of the company’s employees are Tanzanian nationals, which sets a clear precedent in an industry that receives criticism for the over-use of expat workers’

Companies like Shanta Gold are proving that profitable mining and exploration can be achieved while paying attention to the needs of local pople and the environment

w w w. s h a n t a g o l d . c o m

65

S H A N TA G O L D

Companies like Shanta are proving that profitable gold mining and exploration can be achieved while paying sincere attention to the needs of local people and the environment

66

September 2015

a clear precedent in an industry that receives criticism for the over-use of expat workers.

Shanta has stringent health and safety requirements in its mines: “Health and safety is an integral pillar of our key performance indicators used to evaluate the performance of all employees on a monthly basis. Employees are recognised for their safety awareness and performance each month as a way to encourage safe practices.� This method of integrating health and safety with employee performance not only ensures that each team

MINING

member is aware of its importance, but it also enables exemplary practices to be shared and celebrated across the company.

Backing up its strong framework on employee safety is a dedicated health centre for employees, manned by a fully trained doctor; the company even has its own ambulance and aircraft on site at the New Luika Gold Mine in order to ensure the fastest possible response to any incident.

The company also has a range of initiatives in place to make its practices greener and more efficient, which is realised through its environmental management program.

Reforestation has made up the bulk of its work so far, but the company is moving towards something greater: self-sufficiency. Much of this is aided via the company’s strategic patnership with Balton Tanzania; a company that provides security, networking technology, agricultural, and public health solutions.

Although still in a relatively early stage, the company already recycles and composts much of its waste generated through food consumption and is set to build on this positive momentum.

Companies like Shanta are proving that profitable gold mining and exploration can be achieved while paying sincere attention to the needs of local people and the environment.

Through its well-financed operations at the New Luika Mine, it has developed its own field-tested framework for successful future operations in its other developing projects.

Company Information INDUSTRY

Mining and Exploration HEADQUARTERS

Tanzania FOUNDED

2001 EMPLOYEES

c.300 (in Tanzania) REVENUE

ÂŁ73.82 million PRODUCTS/ SERVICES

A gold mining and exploration company, currently it is developing several new gold mines, one of which has newly discovered uranium deposits

w w w. s h a n t a g o l d . c o m

67

Palabora Mining Compan

How Strategic Investment Se Of Palabora And The People

Produced By: Anthony Munatswa Written By: John O’Hanlo

ny (PMC):

ecured The Future e Of The Limpopo

on 69

PA L A B O R A M I N I N G C O M PA N Y ( P M C )

South Africa’s only producer of refined copper and Limpopo’s biggest employer, Palabora Mining Company (PMC) is in expansion mode, a task it is executing with exceptional respect for both community and ecology

70

September 2015

Palabora Mining Company was incorporated in South Africa in August 1956 and was owned and managed by Rio Tinto until 2013 when it was acquired by a consortium led by the Industrial Development Corporation (IDC) of South Africa Limited and China’s Hebei Iron & Steel Group. Acting CEO Maboko Mahlaole was working at the company in the capacity of HR Director at the time of the acquisition, and has seen PMC pursuing new and encouraging strategies under its new owners.

Nobody could say that Rio Tinto and its minority partner Anglo American were not committed to the mine, but at the time of the recession, the implementation of an expansion plan to extend the mine’s life for a further 20 years was in doubt.

The high copper grades obtained from the original open pit mine, which created the ‘biggest hole in South Africa’ having been largely exhausted, and the $410 million underground mine, whose production capacity reached 30,000 tonnes of ore per day reaching the end of its life, a decision had to be made, and in November 2014 the board finally approved a $9.3 billion expansion programme to extend the mine at a deeper level.

The Lift II mine will be dug 450 metres below Lift I and will ensure a continuation of copper mining in Palabora to 2030 and beyond.

This long term vision had to encompass not only building the deep mine, but also addressing the beneficiation operations. As much as 30 percent of the headline cost will be taken up

MINING

Palabora Mining copper refinery

with the addition of a new processing plant.

Copper is not PMC’s only product. Though copper had always been the main revenue earner until three years ago, when it started to earn more from magnetite, an iron ore. Today a greater share of turnover still comes from magnetite. To take advantage of this the company wants to increase its capacity to process magnetite. Two years ago it was processing a little over three million tonnes per annum (tpa) of magnetite, says Mahlaole. “Our target is to increase magnetite production to ten million tpa.” In June 2015 a new magnetite plant was commissioned that will ramp production up to six and eventually ten million tpa.

Internal logistics were also constricting magnetite production, he says. “We are working on a project that we call the magnetite expansion.

“Our target is to increase magnetite production to ten million tonnes per annum” – Maboko Mahlaole, Acting CEO

w w w. p a l a b o r a . c o m

71

PA L A B O R A M I N I N G C O M PA N Y ( P M C )

SUPPLIERS OF FIT-FOR-PURPOSE ENERGY SOLUTIONS Sasol and Palabora Mining Company.

Together leading South Africa into a better future.

INSERT IMAGE HERE

Sasol turbodieselTM ULS 10ppm First with the cleanest diesel to power a cleaner future!

www.sasol.com

72

Month 2014

PA L A B O R A M I N I N G C O M PA N Y ( P M C ) Two years ago our magnetite capacity was just over 3 million tpa. The target is to be able to produce up to 10 million tpa. This project is under way, in fact we just commissioned a new magnetite plant as part of the ramp up to 6 million tpa and eventually 10 million. The higher figure will be reached by optimising the logistics internally.

We have a stockpile of around 220 million tonnes of magnetite spread over a big area – currently it’s moved by tractors, and dried using outdated fan technology.” The new plant incorporates modern drying technology, and a study is taking place on how best to optimise transportation of iron ore to the railhead of Transnet, and how the latter might help to facilitate this.

Another key part of the process is the copper smelter. Being able to produce 99 percent

SUPPLIER PROFILE

MINING

Working underground at the Palabora Copper mine

SASOL

Sasol is an international integrated energy and chemicals company that leverages the talent and expertise of our more than 32 400 people working in 37 countries. We develop and commercialise technologies, and build and operate world-scale facilities to produce a range of highvalue product streams, including liquid fuels, chemicals and low-carbon electricity.

www.sasol.com

w w w. p a l a b o r a . c o m

73

PA L A B O R A M I N I N G C O M PA N Y ( P M C )

EVERY DAY, BUSINESSES ARE using our gas MORE AND MORE We see our responsibility. To answer Africa’s growing demand for cleaner, cheaper and more reliable energy.

We’ve invested in LPG for the long-term as an integrated energy platform.

With quality assurance everyone can depend on.

And by making sure we control our supply chain we also offer you something unique: confidence in the continuity of your LPG supply.

74

Month 2014

What’s more, we go beyond supplying energy by providing on-site technical support. So there is always someone ready to help you get the most from your gas.

By securing today, we’re making a more sustainable future. One that everyone can enjoy. oryxenergies.com

PA L A B O R A M I N I N G C O M PA N Y ( P M C ) pure copper anode differentiates Palabora from its regional competitors, however the old smelter is reaching the end of its useful life since its emissions no longer meet South African regulatory standards. Permission is being sought to stretch its life into next year by retrofitting it with new technology. That would allow a completely new, environmentally efficient smelting plant to be sourced from China and commissioned early in 2016. There was no appetite for investing in a new smelter under the former ownership, says Mahlaole, but Hebei did not flinch at the need to invest in this plant – another long term strategic commitment.

The mine’s new-found sustainability is a winwin, he says. I think the divestment from Rio Tinto and the investment in the mine and the smelter

SUPPLIER PROFILE

MINING

Drilling on the face

ORYX ENERGIES

Oryx Energies is a key player in LPG across sub-Saharan Africa. In South Africa, we are proud of our partnership with Palabora Mining Company (PMC) (Pty) Ltd – where we provide value added solutions, including tank and process monitoring, as well as on-site management.

Oryx Energies occupies a leading position in the South African LPG Market. We supply LPG Bulk, Cylinder, Wholesale, Propane and Butane to a wide range of industrial, commercial and domestic customers. We offer energy cost reduction, remote stock management, supply from all major refineries in South Africa, an import and strategic storage facility, and a Level 2 B-BBEE contributor status.

w w w. p a l a b o r a . c o m

75

PA L A B O R A M I N I N G C O M PA N Y ( P M C )

SUCCESS STARTS WITH JHB 74587B

THE RIGHT PARTNER

Achieving excellence is your number one priority. Helping you get there is ours. What makes us a leading fuel marketer is the commitment we bring to transformation in the fuel industry through our strong B-BBEE credentials.

By understanding your particular business needs, we are able to provide agile solutions and service, which means you can focus all your energy on achieving success, while we fuel it.

To ďŹ nd out about Masana, visit www.masana.biz

Provider of shipping services for unitized, bulk and project cargoes from Southern Africa to Europe and the Far East since 1974 Specialists in the carriage and distribution of forest products worldwide, as well as bulk logistics and transhipment

At Citi, we are as unique and connected to Uganda as you are.

Doing business in more than 40 countries across the continent, no other bank knows Africa like we do.

Congratulations UBA on 30 years of service.

For more information contact: Gearbulk Shipping Singapore Pte. Ltd Contact: Jishnu Ghosh Email: jdg@gearbulk.com Tel: +65 6508 9200

76

Gearbulk Durban Commercial Representative Office Contact: John Currie Email: jnc@gearbulk.com Tel: +27 82 573 9933

www.gearbulk.com

Month 2014

Š 2011 Citibank, N.A. All rights reserved. Citi and Arc Design, and Citi Never Sleeps are trademarks and service marks of Citigroup Inc.

PA L A B O R A M I N I N G C O M PA N Y ( P M C ) bought a new lease of life for this region. PMC has benefited from China’s policy of investment overseas, particularly in Africa. They see Palabora as a showcase for that policy, securing copper and iron ore supplies, a business success story and also a launching pad for their Africa policy. We are fortunate to be in this situation!”

Most fortunate of all in the eyes of Maboko Mahlaole is the fact that PMC will continue to be able to employ large numbers of local people, and improve life for their families.

“Unemployment in this region is over 30 percent. Fortunately at Palabora we have a training centre, accredited by the Department of Higher Learning, where we already run a lot of courses. We train fitters, boilermakers, electricians, rock breakers and other trades.

“So we have a large training footprint of our own within the business. But in the light of the expansion project, we have partnered with the contractors like Murray & Roberts and Master Drillers to put together a programme to standardise training. At the same time we brought in the community leaders and local authorities to ensure there is fairness in employment.”

Having seen the problems that can rise in large projects such as the stadium building programme for the 2010 World Cup and some of Eskom’s energy programmes, he believes it’s important not to over-fuel community expectations, while making sure that community based service providers get a fair share of the

MINING

RD8 Raise Bore machine being constructed on site

“We brought in the community leaders and local authorities to ensure there is fairness in employment” – Maboko Mahlaole, Acting CEO

w w w. p a l a b o r a . c o m

77

PA L A B O R A M I N I N G C O M PA N Y ( P M C ) cake. The main contractors are encouraged to source and outsource locally, employing as many skilled people as they can rather than bringing in workers from other states or abroad.

Environmental management has always been a part of Palabora culture. “We live side by side with vulnerable fauna and flora; we need to look after that as well as the safety of our employees. For example we need to look after the Limpopo river that runs through our mine – it provides sustenance to many communities in South Africa and through into Mozambique.”

PMC has a total demand of 110MW across its site. In 2012 Palabora Copper engaged The Concentrator facility at the mining site

“If you do not pay attention to what is happening around you may not survive long as a business!”

– Maboko Mahlaole, Acting CEO

78

September 2015

MINING

the Australian energy consultant Ensight to review its energy expenditure, during which process it identified $20 million of potential savings. Three years on the exercise has really delivered. “We saved $5.3 million in energy costs, received R 23.1 million from Eskom in recognition of our performance, saved enough power for 77,400 households plus enough water to sustain 2,050 elephants for a year, and cut greenhouse gases weighing as much as 12,850 fully grown elephants!”

Continuing the analogies, his favourite one is that enough coal was saved to drive a steam train from Cape Town to Cairo and back, 17 times.

“It has gained us awards and set an example to other big businesses in the country. In our way we are trying to fight climate change and contribute towards good environmental practices,” he says.

For Maboko Mahlaole, who has been tackling employment issues for 35 years, people come first. “I am optimistic that the focus is not now solely on the individual – there is a new concern for communities. If you do not pay attention to what is happening around you may not survive long as a business!”

Perhaps that’s why PMC has seen very little in the way of industrial discontent (over a period of some turmoil in the country as a whole).

There is no migrant labour here, living in camps.

Almost all of the 2,400 employees working at Palabora live en famille within 20 kilometres of the mine, coming to work on company buses.

Company Information INDUSTRY

Copper Mining HEADQUARTERS

Limpopo, S.A. FOUNDED

2012 EMPLOYEES

2,400 REVENUE

R4 billion PRODUCTS/ SERVICES

South Africa’s large copper mine, smelter and refinery complex.

w w w. p a l a b o r a . c o m

79

LIBYAN IRON AND STEEL GROWING IN THE FACE OF ADVERSITY Written by Nye Longman Produced by Anthony Munatswa

81

L I B YA N I R O N A N D S T E E L

Expanding locally and internationally, the steel manufacturer is a beacon of hope amid trying circumstances

L

ibyan Iron and Steel Company (LISCO), is working against the odds to help rebuild the country’s economy after the 2011 revolution and is doing so with a carefully considered strategy to expand its 60 percent iron and steel market share in Libya.

The company, headed by its Chairman Dr Mohamed Elfighi, is facing the greatest challenge of its existence, yet at the same time it is pushing forward with an ambitious output expansion backed up by maintaining globally recognised standards.

Operations LISCO is one of the largest industrial companies in North Africa and produces a range of iron and steel products. It is owned by the Libyan Government and employs roughly 6,800 people across its facilities; liquid steel

LISCO is owned by the Libyan Government and employs roughly 6,800 people across its facilities

82

July 2015

M A N U FA C T U R I N G

LISCO is one of the largest industrial companies in North Africa

production stands at 1.5 million tonnes per year and its annual revenues stand at approximately one billion Libyan Dinars.

Elfighi was frank about how stability issues had slowed the company’s operations but these had not prevented the company from looking to the future and in fact had proven to be a source of innovative thinking.

He said: “Before the revolution we invested roughly one billion Libyan Dinars on a large expansion to increase annual steel production to 4 million tonnes per year. Some plants have already been finished and some are ready for commissioning but because of the situation in Libya contractors have left the sites. Now we are in negotiation with Danieli to get remote

4 Million Tonnes The Annual Steel Production Of Libyan Iron And Steel

w w w. l i b y a n s t e e l . c o m

83

First class backup and work rolls since ...

Gontermann-Peipers GmbH Hauptstrasse 20 57074 Siegen - Germany Phone: Fax:

+49 271 60 – 0 +49 271 60 – 200

Mail: gproll@gontermann-peipers.de Internet: www.gontermann-peipers.de/en

Algeria Voegele GmbH +49 2737 596 112

Egypt Al Rowan for German Technology + 20 122 399 0634

Bahrain Al Rowan for German Technology + 20 122 399 0634

Lybia Al Rowan for German Technology + 20 122 399 0634

Saudi Arabia Al Rowan for German Technology + 20 122 399 0634

UAE Al Rowan for German Technology + 20 122 399 0634

South Africa ADCENG Heavy Eng. Ltd. +27 11 493 8209

Zimbabwe ADCENG Heavy Eng. Ltd. +27 11 493 8209

L I B YA N I R O N A N D S T E E L

M A N U FA C T U R I N G

assistance for delivering a new bar mill.”

Iron Plant LISCO’s Direct Reduced Iron (DRI) plant comprises three production units; two of which have a potential annual output of 1.1 million tonnes while the third has the addtional capacity for the production of 650,000 tons per year of hot briquetted iron (HBI).

DRI is produced by reducing various forms of iron ore billets into iron using locally available natural gas; HBI refers to a compacted version of this product, which is easy to transport and handle.

The company’s steel production is spread across two separate facilities, which allows

Steel Plants The company’s steel production is spread

SUPPLIER PROFILE

it to produce several different steel products

GONTERMANN-PEIPERS GMBH

Gontermann-Peipers GmbH (GP) was founded in 1825 and we are currently moving from the 6th to the 7th generation. The company is still 100 percent family owned and operates two plants in Siegen – Germany. In terms of roll production, GP is focused on high added value work and backup rolls up to finished weight of 265 tonne per piece with an export share of over 80 percent. To achieve this goal approximately 4 percent of the yearly turnover is spent on research and development of new grades. Every year investments of €6-8 million from of our own resources are realized to upgrade and modernize the manufacturing facilities.

w w w. l i b y a n s t e e l . c o m

85

L I B YA N I R O N A N D S T E E L

LISCO is now exporting all its

across two separate facilities, which allows it to produce several different steel products. Its billets and blooms plant has an annual designed production capacity of 670,000 tonnes of liquid steel which converts to 630,000 tonnes; this was expanded in 2008 to produce one million tonnes.

The plant uses three electrical arc furnaces which each have a capacity of 90 tonnes.

Complementing this facility is LISCO’s steel slab plant which has an equal number of 90ton arc furnaces providing a designed annual output of 650,000 tonnes of liquid steel that converts to 611,000 tonnes per year of slabs.

products worldwide

S AMA RCO. THE PA RTNER YOU CAN RELY ON. Samarco is a Brazilian mining company that produces high-quality iron ore pellets for the global steel industry.

Our production and logistics system is 100% independent and integrated, from our mine to the port. Our production capacity of 30.5 million tons of iron ore pellets per year makes us the second largest seaborne supplier in the world, reaching steel and iron producers in over 19 countries in Asia, Africa, the Americas, the Middle East and Europe.

Our operational results, health and safety performance, socioenvironmental actions and ethical business management have led us to be ranked as the best mining company in Brazil* for the third year in a row.

We thank our North African clients for being part of this successful story since 1986. www.samarco.com *According to awards granted by two of Brazil’s leading business magazines, in the Exame and Época Negócios 360º yearbooks.

M A N U FA C T U R I N G

Competitive Position Operating in the eastern part of the country is extremely difficult due to security concerns, but a new threat has arisen since 2011 in the form of competition from abroad. Elfighi said: “The Libyan market is now open to imports from China, Ukraine, and Turkey; from everywhere.”

Building up LISCO into a recognisable brand has proven to be a timely solution to this new problem, Elfighi said: “We are concentrating on the value and quality of our products, as well as improving costs and the delivery times. LISCO is well known for being number one for quality in Libya.” Achieving recognition has also been approached laterally, through obtaining various assurances for good governance which include ISO 14001, 9000 and 18000 accreditations.

Paying attention to its brand, LISCO LISCO is well known for being number one for quality in Libya.

w w w. l i b y a n s t e e l . c o m

87

L I B YA N I R O N A N D S T E E L

“Since 1998 LISCO has also been working towards a more diverse product base and has achieved this goal quite substantially” – Mohamed Elfighi, Company Chairman

88

September 2015

isnow exporting all its products worldwide, especially to Southern Europe, China, Turkey, and to many Arabic nations.

Since 1998 LISCO has also been working towards a more diverse product base and has achieved this goal quite substantially. Forming a single plant, its galvanised coils section produces 80,000 tonnes annually, while its painted coils line stands at 40,000 tonnes.

The company has an additional four mills which enable it to value-add to its steel products.

Its bar and rod mill consist of two lines each producing 400,000 tonnes annually. It also produces light and medium sections of varying

M A N U FA C T U R I N G

Company Information INDUSTRY

Manufacturing HEADQUARTERS

Misrata, Libya FOUNDED

1979 EMPLOYEES

6,800 REVENUE

1 billion Libyan Dinars

sizes and dimensions through a dedicated mill with an annual capacity of 120,000 tonnes.

Furthermore, its hot rolled coil production stands at 580,000 tonnes in its respective plant, while cold coil plant production has an annual capacity of 140,000 tonnes.

LISCO’s path has not been the easiest, which perhaps goes to show why the company is performing so well. It is expanding in the face of encroaching imports from around the world and is doing so while some areas of the country are still unstable. As the country begins to invest in infrastructure again, the company will be perfectly positioned to grow with Libya.

PRODUCTS/ SERVICES

Iron and Steel Manufacturer

w w w. l i b y a n s t e e l . c o m

89

MTN Benin Stimu Growth In Mobile Mon Written by: Sheree Hanna Produced by: Mariana Lee

ulates Massive ney And Data Services 91

MTN BENIN

Benin’s leading telecommunications company is celebrating successfully raising revenue through major initiatives and operational efficiencies

92

September 2015

M

TN Benin is fast becoming a shining beacon of the MTN Group as it strives to grow its business through innovative initiatives and its highly-motivated staff.

Led by Chief Executive Officer Kennedy Melamu, MTN Benin has made significant strides to develop subscriber penetration, its mobile money and data businesses, as well as launching new enterprise business units to help Benin’s wealth of small to medium sized businesses communicate even better.

The go-ahead company, which currently employs just over 300 people, is also piloting the deployment of a fibre optic cabling to enhance the quality of its transmission. And the company is on a mission to improve its operational effectiveness with a number of ground-breaking initiatives set to benefit both its staff and customers.

Melamu said: “There is an awful lot happening within the company at the moment. Looking at our achievements from 2013-2014 the company had a year-on-year growth of 13 percent and an after tax profit showing an increase of 12 percent.

“In our industry anywhere it is not common to find that level of growth. For the half year to the end of June 2015 our revenue was sitting at 11 percent, which shows we are still managing to find it.

“The bottom line for me is that it is about the people, leading and driving them by supporting and creating the environment that allows them to do better. And this is what we have aimed to achieve.”

TECHNOLOGY

Mobile penetration among Benin’s population is currently at about 75 percent

Opportunity knocks Mobile phone penetration among Benin’s population of 11 million is currently at about 75 percent. According to Melamu the usage of mobile technology in Benin is no different to any other place in Africa as it continues to significantly changes lives of the people.

He said: “Internet usage still has a very low penetration in the market of about 16 percent, but just a year ago it was six percent and my personal prediction is that by the end of the year it will reach 25 percent.

“The use of mobile internet has grown by 107 percent and this is a space where we want to take advantage of a massive opportunity.”

Since taking up the role of CEO two years ago, Melamu, who previously worked for

“We are at the point now where the Central Bank of West Africa is saying ‘who are these hot shots trying to break into banking we need to regulate them” –K ennedy Melamu, MTN Benin CEO

w w w. m t n . b j

93

“ Customer Registration “ Customer Registration Made Simple “ Made Simple “

MTN BENIN

TECHNOLOGY

Vodafone, which operates M-Pesa, the world’s most successful money transfer service, has made it his personal ‘baby’ to nurture MTN Benin’s mobile money offering.

Launched in 2009, the mobile money business had until his arrival just 140 agents and 30,000 registered subscribers, today there are 4,000 agents and 900,000 subscribers. Growth in transaction levels has jumped massively from around 1.6 million Francs in January 2014 to an expected 80 million Francs for July 2015.

Working together Challenges within the regulatory system of Benin have made conditions somewhat harder than some of MTN Benin’s competitors have experienced in breaking the mould and reassuring the nation’s banking community that the growth of mobile money should be good for all.

“We are at the point now where the Central Bank of West Africa is saying ‘who are these hot shots trying to break into banking we need to regulate them’.

“We are still in that phase, whereas M-Pesa which was established well over 10 years ago has jumped through those hurdles already.

“However, conditions are turning for us and I think we have managed to convince a lot of people. There are currently seven or eight commercial banks operating here with a total combined customer base of 900,000.

“Our mobile money service has crossed w w w. m t n . b j

95

MTN BENIN the 900,000 mark. We are trying to find ways of working with the banks and I think they need to stop seeing us as a competitor but as a farm for future customers.”

The company offers both 2G and 3G and has launched 4G

Growing network MTN Benin’s mobile phone’ subscribers are set to meet the four million mark by the end of August 2015 and its network currently recognises 2.1 million smart phones.

To enable more of its subscribers to own their own smart phone, the company through MTN’s procurement side, has acquired some 3G smart phones that retail at cheaper than average prices.

Enlighten your world.

Engineered

to D e l i v e r

Your Reliable Partner for OEM Quality Spare Parts

Visit us online

TWINCO PTE LTD

No 3 Loyang Way 4, SINGAPORE 506956 Tel: +65 65429618 Fax: +65 65427595 Email: sales@twinco.com.sg Website: http://www.twinco.com.sg

Illuminating solutions for day or night. www.provincelighting.com

MTN Benin is fast becoming the shining beacon of the MTN Group

On the technical side, the company offers both 2G and 3G from 600 sites around the country, but has now launched 4G through pilots operating in two major Benin towns.

Melamu said: “The launch has caused a lot of excitement and by the end of the year we should have about 35 locations going live on 4G.” To enhance its data services to the country’s businesses, 80-90 percent of which are SMEs (small-to- medium-sized enterprises) the company has partnered with an RSD-licenced, Internet Service Provider to establish an enterprise business unit and is already seeing a massive growth in its revenue targets which are now sitting at 35 percent ahead of budget targets.

“The launch has caused a lot of excitement and by the end of the year we should have about 35 locations going live on 4G” –K ennedy Melamu, MTN Benin CEO

w w w. m t n . b j

97

MTN BENIN

MTN has procured some 3G smartphones which retail at less than the average prce

98

September 2015

Efficiency drive Furthermore, MTN Benin is working on a number of operational efficiencies to counteract the maturity levels revenues are hitting within the industry.

Procurement has already been centralised within MTN’s group operations and Benin is among the first wave of countries to centralise its transactional activity within its Human Resources, Finance and supply chain activities.

The move will create a more cost-efficient, technologically-driven platform to manage transactions cutting down on manual operation and consequently freeing up staff to become experts within their field.

Melamu said: “We have also just launched a

TECHNOLOGY

Company Information INDUSTRY

Telecommunications HEADQUARTERS

Johannesburg FOUNDED

1994 EMPLOYEES

17,509 (Global; 2010)

three-month trial where everyone in the company becomes a sales person offering a commission for sales on data and mobile money. If staff are doing less manual work then they are able to contribute to the work that helps growth.”

Innovative training and customer service intelligence schemes are also playing a huge part in improving the company’s overall performance.

Melamu’s challenge of creating a better performing business is complete and he is now leaving Benin to join the MTN group executive in Johannesburg in role which will involve him overseeing the group’s customer experience, sales and distribution.

He said: “My objective now is to grow leaders in Africa and that is what I want to do.”

REVENUE

$12.43 billion (2014) PRODUCTS/ SERVICES

Voice, Data, Digital Lifestyle

w w w. m t n . b j

99

Company logo goes here

Amdec Group

Growing a Green Future

Written by: John O’Hanlon Produced by: Richard Deane

101

AMDEC GROUP

The future sustainability of our built environment is in the hands of today’s property developers

T

he iconic Melrose Arch mixed-use precinct in Johannesburg’s leafy northern suburbs has set the precedent for sustainable cities in South Africa for over a decade, starting long before the green building movement officially began in the country.

Today, it continues its legacy of pioneering sustainability. Leading South African property company Amdec are owners in Melrose Arch.

By taking a long-term view and optimising the critical mass of mixed-use developments, Amdec has become a front-runner in green building innovation in South Africa.

Josef Quraishi, Head of Sustainability and Green Building for Amdec group, stated it will continue to push the sustainability envelope.

Sustainability is a win-win Amdec sees sustainability as a win-win. “When we develop, we look at the broader context of investing in communities. A thriving community is good for business; the more attractive a community is, the more desirable our buildings become,” said Quraishi.

He adds: “Amdec will continue with our commitment to find new and better ways to create greater sustainability and better resource efficiency, and use our hard-earned experience in sustainable development not only to benefit those who live, work and visit our developments, but also for the property industry as a whole.”

Quraishi believes that, as a pioneer in sustainable development in South Africa, Amdec has a lot to

102

September 2015

CONSTRUCTION

offer by sharing its experiences and knowledge.

“Our sustainability journey hasn’t been easy, and Amdec believes that sharing our lessons is important, as it helps others along the learning curve, and supports the movement for sustainability,” he said.

Quraishi was part of the team who helped develop Green Building Council South Africa’s (GBCSA) Socio-Economic Category - a world-first for rating tools. In doing so, the GBCSA took the lead in developing a set of socio-economic criteria for green building rating tools. Socio-economic factors are particularly relevant in developing countries such as South Africa, and extend green buildings to encompass not just environmental sustainability but also socio-economic sustainability.

Melrose Arch The Piazza

w w w. a m d e c . c o . z a

103

AMDEC GROUP

The Koolcon Group is a property specialist group, that provides a hands-on approach through the appointment of our in house professionals. We specialize in design, construction, handover and maintenance. Offering a comprehensive design build solution in the commercial property market. We endeavour to ensure the best level of service with regular quality control, keeping our clients current, up to date and our projects on time.

We are able to provide a service across a broad range of sectors including: • • • • • •

Banking and Financial institutions Factories Student accommodation Spa’s, conference facilities and hotels Shopping centres Industrial

• • • • •

Office Parks Civil works Residential developments Telecommunication Towers Medical centres

Johannesburg (Head Office) Tel: +27 (0) 465 6947, Fax: +27 (0) 86 600 2947, E-mail: info@koolcon.co.za Address: Unit D8, Deco Park, Cnr New Market & Witkoppen, North Ridge, Johannesburg www.koolcon.co.za .

Regional offices include: Durban, Port Elizabeth and Cape Town

Complete solutions for the resources and energy sectors

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

- BBBEE Level 2 - 30% PDI ownership

- Over 60 years’ experience - Deep local knowledge - Global expertise ContaCt Details www.novabuild.co.za 021 794 2874 info@novabuild.co.za

104

September 2015

46

countries

157

www.worleyparsons.com

offices

35,600

people

AMDEC GROUP

CONSTRUCTION

Encouraging positive impacts The way we design, build and operate our buildings can address, to some extent, societal challenges such as poverty, unemployment, lack of education and skills, and health. This GBCSA tool is designed to both measure, and encourage, these positive impacts.

The Socio-Economic Category allows the socioeconomic achievements of new buildings and major retrofits to be recognised and rewarded under Green Star SA tools. It is a separate optional category for which projects can be rated alongside their standard Green Star SA certifications. As part of the initiative, the GBCSA simultaneously developed an International SocioEconomic Framework for the World Green Building Council, which can be used by other green building councils to apply to their rating tools.

Quraishi points out that while South Africa has building codes that talk to sustainability, Amdec always looks to do more and do better.

By considering the bigger picture, Amdec’s green building ethos has far-reaching positive impacts.

Its holistic approach to green building is helping to change the way people think and live. “Developers like ourselves can contribute to our socio-economic context, not only with green building but by uplifting local communities, transferring skills, training and mentoring, and using local people and products. Even when contracting large building companies for developments, we can ensure they pay it forward as part of our agreement

Melrose Arch

w w w. a m d e c . c o . z a

105

AMDEC GROUP

Slip Street

with them. From a sustainability perspective, as a developer we have a responsibility to do what we can where we can.” noted Quraishi.

Uplifting local communities Amdec puts this ethos into action wherever it develops. Among its community-specific initiatives, it has used material from construction excavation to rehabilitate a public park and is also taking care of a river course to ensure its banks are well maintained and help reduced flooding.

When it comes to green building itself, Amdec is aware this is a skill that existed long before the company did. “Yes, technology plays a big role in today’s green building, but it isn’t the only factor.

106

September 2015

CONSTRUCTION

There are age-old proven methods of creating greener buildings, going back to nomadic structures that were oriented and built to a height that would provide shade for cattle. Similarly there are exciting ways to reuse and upcycle materials happening all around us, as smart people and communities find ways of creating exciting opportunities with items that others may see as worthless.” said Quraishi.

So, Amdec’s approach to green building goes beyond active green building technologies to also incorporating more subtle elements of green building in design and orientation.

While tree-lined streets, such as those found at Melrose Arch, are beautiful, what may not be immediately apparent is that they also play an important role in green building. The tree canopies provide shading on the front of buildings, helping to keep them cool. The bottom level of a building, and the upper levels, are usually the hottest. The trees mitigate the heat of the sun that bounces off the road. This increases comfort inside the building and decreases a building’s cooling costs.

With Melrose Arch, and Amdec’s next R4 billion mega development of Westbrook, a 128,000ha mixed-use suburb in Port Elizabeth, it is taking the opportunity to explore the latest technologies in sustainability. In fact, Amdec hopes to take Westbrook entirely off the grid.

Reducing electricity consumption Among the solutions Amdec has identified is the gas-powered trigeneration plant, which is only

Melrose Arch -The Piazza

Melrose Arch -The Galleria w w w. a m d e c . c o . z a

107

AMDEC GROUP

High Street

Iconic View

108

September 2015

in use at a handful of properties in the country.

Capitalising on its benefits, it would reduce electricity consumption at a mixed-use precinct such as Melrose Arch by 50 percent, halving its dependence on the country’s power grid. Alongside this, Amdec has also invested over R100 million into alternative fuels, recycling waste and biofuel, and putting gas back into its system to be used within Melrose Arch. This will be the first time this is deployed in context of a South African mixed-used precinct.

Quraishi noted that for Amdec, it is not just about sustainability and doing the right thing, but also about helping its clients to reduce their occupation costs and keeping them working when load-shedding hits. “Amdec is responding to the challenges of South Africa’s energy crisis,” said Quraishi. “This helps to take strain off our power grid, and our building users’ pockets, as well as being good for the environment and helping communities prosper.”

While Amdec is adding more resource-efficient features to its assets, whether there is a rating tool available for them or not, it is also pursuing more green ratings for its properties. Having already earned Green Star SA ratings for two of its buildings in the last two years; Amdec plans to boost its pace of investing in green buildings by taking this number to six in the next 24 months. This means it will pursue more Green Star SA ratings for all its new developments, and some of its existing ones.

At Melrose Arch, Amdec has earned its two Green Star SA ratings: 40 on Oak was South Africa’s first multi-unit residential project certified

CONSTRUCTION

Colourful Detailed Buildings

under the Green Star SA system, with a 4-Star Green Star SA Pilot certification and The Worley Parsons head office was awarded a 4-Star Green Star SA Office v1 Design rating.

As part of its multiunit residential rating at 40 on Oak, Amdec cut energy consumption for each apartment by 50 percent and water consumption by 40 percent making the Melrose Arch apartments even more desirable. For the green rated office, it lowered energy consumption by 40 percent and water consumption by 50 percent.

A platform for sustainable buildings Melrose Arch will also play a leading role in Amdec’s future targeted green star ratings, two of which have already been registered at GBCSA. For existing buildings, Josef explains that Amdec has prioritised getting ratings for single-tenant buildings. “Then

51-200

Number of staff employed by Amdec Group

w w w. a m d e c . c o . z a

109

AMDEC GROUP Melrose Arch

110

September 2015

CONSTRUCTION

we’ll move on to our multi-tenanted buildings, which can be more challenging.” said Josef.

The green inner-workings of Melrose Arch support more than a single building, they underpin a whole precinct, making it an enabling platform for sustainable buildings. Melrose Arch is also packed with ingenious designs and small, smart green touches that also create an enjoyable environment. It includes a central district cooling plant that utilises evaporative cooling so its buildings use less air conditioning than usual, it uses gas and has integrated recycling. Its mixed-uses and pedestrianisation reduces the need for cars, it also benefits from good access to public transport.

Josef explains that blue-chip businesses want their markets to know they are doing the right thing, so occupying a green rated building is becoming a business imperative for them. Amdec is like-minded and answering the call for green rated buildings in South Africa. Quraishi said: “Green buildings are also commercially desirable because they boost productivity and profitability by creating healthy workspaces that also mean lower absenteeism.”

With soaring energy costs, clients across Amdec’s portfolio of assets, including its Evergreen Lifestyle Villages, enjoy the benefits of Amdec’s energyefficient, water-efficient and cost-efficient focus.

For Amdec, its green building ethos is simply good business. “With our sustainability initiatives, Amdec ensures that whatever we do has a positive impact on their environment, in their community and beyond.” concluded Quraishi.

Company Information INDUSTRY

Construction HEADQUARTERS

Cape Town FOUNDED

1989 EMPLOYEES

51-200 PRODUCTS/ SERVICES

Sustainable development foundation for developing worldclass real estate and building design

w w w. a m d e c . c o . z a

111