www.africanbusinessreview.co.za December 2014
Special report
Shree Property Holdings Top warehousing solutions provider balancing a family culture with corporate values
finance
New Suez Canal Expands Egypt’s Economic Potential
TOPic1a0n
Afr ies Econom
medtech Ethiopia: EPHARM acquisition pioneers industry growth
Big landscapes Inspire big thinking
THERE’S NOTHING LIKE AUSTRALIA FOR YOUR NEXT BUSINESS EVENT. This year we chose Australia for our global congress. It was an easy choice, as Australia’s proximity to Asia gave us the opportunity to attract many new delegates. The program was one of the best in years. New Australian developments in our field attracted a lot of interest and strong international research partnerships were established. Australia is on everyone’s list to visit, and it lured our highest number of delegates yet. There’s no doubt they’ll be talking about this convention for years to come. Dr Louise Wong, International Board Member
visit australia.com/businessevents/associations for everything you need to plan your australian event.
ed i to r ’ s comment
Africa’s new horizons: from north to south we take a look at exciting developments occurring at the top and bottom of the continent, delving into one of South Africa’s market leading companies and one of Egypt’s most iconic landmarks. Starting at the bottom, Abigail Phillips has interviewed Pran Shree, Chief Marketing Officer at Shree Property Holdings. From humble beginnings, starting as a retail butchery, the business has expanded over the years into cold storage for citrus products and, subsequently, warehousing for almost any product you can imagine. Today, the company has 56 state-of-the-art warehouses around the Durban Harbour and takes pride in offering its clients - whether they are fruit conglomerates or Blue Chip tech companies - fully customisable solutions. Speaking of solutions, Egypt’s New Suez Canal is the other key focus this December as we review President el-Sisi’s master plan for galvanising a previously struggling economy and subdued population. Elsewhere this month, we take a look at the economies already thriving around Africa in our Top 10, and Chris Willcocks of SAP Africa pinpoints the currently untouched potential of cloud adoption in Africa. In this month’s issue,
Matthew Staff Associate Editor matthew.staff@wdmgroup.com 3
E20001-F150-M117-V1-7600
Productive plants don’t have to run around the clock, they just have to run efficiently. Realize the potential of energy-efficient solutions more quickly siemens.com/energy-efficient-production
More than ever before, the key to efficient production lies in implementing energy-saving measures. These range from the use of energy-efficient drives to the shutdown of complex production processes. In the past, this shutdown had to be done manually, making it very time-consuming. Today, a standardized data interface ensures that power consumers can be
switched off centrally in a coordinated and risk-free manner, thus enabling plant operators to achieve energy savings of up to 80 percent during production pauses. We would be delighted to provide you with information about our portfolio of energy-efficient products, solutions and service, which will enable you to quickly achieve lasting gains in efficiency.
Answers for industry.
Features 24 8 TECHNOLOGY
Spawning Africa’s Digital Dragons in the Cloud
CONTENTS
TOP10
African Economies
22
FINANCE
14
New Suez Canal Expands Egypt’s Economic Potential 5
By now, we’ve all played with clouds. And now you want a real one, the kind you can run a business with. That’s when you come to BMC. /URÀSO˴WAREÀBUILDSÀANDÀMANAGESÀCLOUDS — ˱EXIBLE À OPEN À DESIGNEDÀ TOÀ CARRYÀ OFÀaYOURÀ By now, we’ve allANDÀ played with clouds. AndTHEÀ nowWEIGHTÀ you want real BUSINESS ÀIt simple, Untilwith. you That’s try it without us. one, the kindseems you can run areally. business when you come to BMC. /URÀSO˴WAREÀBUILDSÀANDÀMANAGESÀCLOUDS — ˱EXIBLE À OPEN À ANDÀ DESIGNEDÀ TOÀ CARRYÀ THEÀ WEIGHTÀ OFÀ YOURÀ BUSINESS ÀIt seems simple, really. Until you try it without us.
#bmccloud
bmc.com/cloud
#bmccloud
bmc.com/cloud
CONTENTS
32
44
Medtech Ethiopia
Shree Property Holdings
Company Profiles HEALTHCARE 32 Medtech Ethiopia
SUPPLY CHAIN
Tetra Pak
68
44 Shree Property Holdings
CONSTRUCTION 60 Assoc.: Green Building Council of SA
MANUFACTURING 68 Tetra Pak
MINING 82 IPC Coal
92
IPC Coal
Grande C么te Operations
82
92 Grande C么te Operations 120 Khoemacau Copper Mining Pty Ltd 7
technology
Spawning Africa’s Digital Dragons in the Cloud Chris Willcocks of SAP Africa pinpoints the currently untouched potential of cloud adoption in Africa, with a digital revolution waiting in the wings for those willing to embrace it W r i t t e n b y: C h r i s W i l lc o c k s D i r e cto r : C lo u d a n d L i n e o f B u s i n e s s at SA P A f r i c a
8
December 2014
9
technology Earlier this year, technology research house Gartner released a report entitled “Taming the Digital Dragon” as part of its 2014 CIO Agenda. In it, it suggests that if CIOs don’t respond quickly to a tsunami of digital opportunities, they will be washed away – but if they do, untold success lies in store. The problem is, that for much of Africa, the digital dragon has not yet been born, let alone soar aloft. If we’re going to awaken the slumbering digital
10
December 2014
dragon on this continent, we’re going to have to spark a new generation of African solutions and opportunities. And thankfully, in the cloud, we have the ideal incubator to nurture dragons and opportunities alike. Fact is, the cloud is here and now. Whether private, public or any hybrid flavour in between, the infrastructure necessary for people and businesses to access the cloud is rapidly falling into place as high-speed broadband becomes increasingly pervasive around Africa. There are still infrastructure barriers in many areas, but that’s not stopping cloud service providers from building solutions for African businesses. In July, we at SAP released a piece of research that we commissioned through IDG on Africa’s cloud readiness, and the findings were overwhelming: Africa is ripe for the opportunities that can be unlocked by the cloud, fuelled in no small part by the explosion of mobile connectivity across the continent. Cloud adoption presents obvious advantages for Africa’s rapidly growing mobile device market. What companies of all sizes need to do now is to seize the numerous opportunities
S pawn i ng A f r i ca ’ s D i g i ta l D r agons
‘What companies of all sizes need to do now is to seize the numerous opportunities being created by mobility to create uniquely African solutions’ being created by mobility to create uniquely African solutions that speak directly to their customers’ needs. Many African companies we meet talk about the age-old challenge of trying to provide growth and
innovation on static budgets. How do we go digital when we’re still battling to get our CRM system up and running, they ask. That’s a modern reality that every business around the world is grappling with: on the one hand, 11
technology
‘Financial services firms are leading the charge when it comes to using the cloud for efficiency and business innovation’ 12
December 2014
keep the lights on, and on the other, provide innovation and transformation to the business. What this means for Africa is that companies need to pursue new ways of using their available IT resources. We need to stop thinking in technology-centric terms, and start thinking about what it means to transform a business through technology. The big thing that a move to the
S pawn i ng A f r i ca ’ s D i g i ta l D r agons
cloud does is to free up resources: financial, human, computing. Our research shows that workloads like CRM, which are tailor-made for the cloud, are barely being used in countries such as Kenya and Morocco. By putting your CRM in the cloud, you free up a lot of time and money to focus on innovation and new services. Truly cloud-savvy businesses have dozens of enterprise softwareas-a-service operations. They ask themselves: Can we do it with a hosted cloud solution? Chances are they can. But even in Nigeria and South Africa, which lead the cloud market in Africa, we’re still seeing one in every four businesses not even looking at cloud services yet. Financial services firms are leading the charge when it comes to using the cloud for efficiency and business innovation. They have a sound understanding of the benefits of cloud computing, and are winning customers through offerings like mobile banking and other mobile money platforms that make life easier for their clients. Overall, compared to regions like Western Europe, Africa’s cloud
adoption levels are still low. This only serves to highlight the massive opportunity that exists on the continent. If we get our cloud roll-out right, we’ll have our digital dragons soon enough – and the results for the continent will be remarkable.
Chris Willcocks Director of Cloud and Line of Business at SAP Africa
13
fi n a n c e
New Suez Canal Expands Egypt’s Economic Potential W r i t t e n b y: M a t t h e w S t a f f 14
December 2014
15
fi n a n c e
The Suez Canal is one of Egypt’s most iconic features and is now being earmarked as the shining light in the country’s economic recovery and future prosperity “The Egyptian people’s gift to the world.” This is how the country’s president, Abdel Fattah el-Sisi has described the ongoing construction of Egypt’s economical saving grace, ‘New Suez Canal’. A slightly misleading name given that the work is an extension rather than an addition to the current Suez Canal Zone (SCZ) but the national enthusiasm and long term benefits outlined by the parties behind the project are anything but misleading. The globally renowned canal route is already a major transit channel for international trade and has been developed over the years parallel to growing maritime demands, but with 110 kilometres of the 193.3 kilometre route only a single lane channel still, ship crossings can take up to 12 hours. The development of further shipping lanes will be complemented by an entire revamp of the industrial area within the SCZ as Egypt looks to 16
December 2014
capitalise on one of its most prized assets to galvanise a recently flailing economy. Industry benefits Bridging the Mediterranean and Red Seas, the Suez Canal may be one of the shortest shipping routes between Europe and Asia but it is also one of the busiest, proving especially prevalent over the years in transporting crude oil, petrochemicals and liquefied natural gas. The benefits of building a hub for industry around the trade focal point will therefore bring about advantages for areas of tourism, retail, commercial and financial services as well as enhancing petrochemical business opportunities in the immediate region. The 72 kilometres of work that will be carried out will include 35 kilometres of dry digging and a similar amount of expansion and deep digging, all within a strict three year
N ew S u ez C ana l
Map (left) and satellite image of Suez Canal period. Not only will this produce obvious economic potential but will more importantly reduce crossing time for ships by half, doubling carrying capacity a day to 95 ships. For the cities of Ismailia, Suez and Port Said, this regularity of trade also transforms them into potential, thriving international trading centres.
Financial benefits From an economic standpoint, the myriad of benefits expands even more significantly. Amid a sustained period of political turmoil and subsequent shortfalls in trade trust and financial stability, the country has been looking for a catalyst to spark it back into life since the welcome inauguration of el-Sisi as president. 17
fi n a n c e
Capesize bulk carrier at Suez Canal Bridge It comes as no surprise then, that the new man at the helm is so excited and proactive in optimising the New Suez Canal project. Initial estimates suggest that revenues from the canal will now reap up to $12.5 billion, a vast increase from the current figure of $5 billion, with the influx of funds in turn used to revitalise the SCZ and surrounding key cities; 18
December 2014
a lucrative cycle that will certainly be required to first offset the costs going into the project as quickly as possible. The total 60 billion Egyptian pounds going into New Suez Canal comprises 30 billion into the digging process and the second 30 for building seven new tunnels in Ports Said and Ismailia to connect the Sinai Peninsula to the Egyptian shore; an outlay which
feat u r e a r t i c l e sho r tened head l i ne
‘Initial estimates suggest that revenues from the canal will now reap up to $12.5 billion, a vast increase from the current figure of $5 billion’
the success of debt repayments will largely depend on the immediate success of the expansion and buy-in of the international trade community. National pride, international influence Any suggestion that el-Sisi has taken a financial risk in undertaking such a potentially significant project though 19
fi n a n c e
USS Forrestal Suez Canal after 108 days at sea seems to have been outweighed by the investment of the Egyptian population – both in terms of interest and encouragement, and from a monetary perspective. Refusing to allow foreign investors into the project, the President instead urged the public to fund the project through a stock market IPO; a plea that only took two months to come 20
December 2014
to fruition when the country’s central bank confirmed that it had purchased the $8.5 billion worth of investment certificates. Reports suggest that in actuality, the crux of the fundraising only took eight days to complete adding substantial support to the inner financial circle which had already witnessed the country’s stocks rise to the highest
N ew S u ez C ana l
level in six years in the immediate aftermath of el-Sisi’s announcement. Egypt’s economic rival is therefore now intertwined with New Suez Canal, breeding not only economic prominence, but also a sense of national pride that had somewhat lost its way over the past decade. Its largest and most successful fundraising initiative in history has helped lay the foundations for future trade, industry and business on an international scale, and with the dredging operation – incorporating leading international partners such as Royal Boskalis and Van Oord – already underway, the exciting future of one of Egypt’s most iconic landmarks is quickly taking shape.
‘Refusing to allow foreign investors into the project, the President instead urged the public to fund the project through a stock market IPO’
Egyptian President Abdel Fattah el-Sisi
21
TO P 1 0
Top10
African Economies
Based on the World Economic Outlook review of the world’s wealthiest economies, compiled from data released by the International Monetary Fund, we extract the top 10 currently dictating business growth in Africa, by GDP (Gross Domestic Product) Written by Matthew Staff
The Commercial Bank of Ethiopia in Addis Ababa
23
top 10
A giraffe at Nairobi National Park, Kenya with Nairobi’s skyline in the background
10
Ethiopia
09
Libya
US$ 48,145 million
N/A
The hub of East Africa’s growing prosperity has somewhat migrated from Ethiopia to Kenya in recent years, but the former still makes the top 10. Primary sectors for GDP growth in the country are telecoms, finance, transport and retail; all of which compliment Ethiopia’s most lucrative sector, agriculture, which accounts for nearly half of the country’s GDP.
Depending almost entirely on the country’s petroleum sector, Libya’s export potential has long made it one of the most lucrative economies in Africa. Despite ongoing political unrest and subsequent dips in GDP, the country’s oil revenues still ensure that Libya remains in the top 10.
24
December 2014
A f r i can E conom i es
07
Sudan
US$70,127 million
08
Launched as a consequence of its booming oil industry, Sudan has traditionally profited largely from FDIs and oil price increases. Now, with long-running political unrest mostly a thing of the past, the country is once again an attractive investment proposition, and its GDP has benefited as a consequence.
Kenya
US$55,206 million Now seen as the hub for not only East Africa, but central Africa also, across a number of sectors, Kenya’s influence on the continent has not only brought about internal opportunities, but has led it to becoming a major focal point for FDIs. Tourism, telecommunications, media and construction are all prominent sectors in providing this sustainable growth.
The large mud brick temple, known as the Western Deffufa in the ancient city of Kerma, Sudan 25
top 10
06
Morocco
05
Angola
US$105,101 million
US$121,704 million
North Africa is the region struggling the most in Africa at the moment, with Tunisia falling out of the top 10 as a consequence. The international appeal of countries like Morocco has also floundered as a consequence of political instability in the wider region, but the country holds on to its place on the countdown thanks largely to former glories and its competitiveness in key sectors.
For much of the past decade, Angola has been identified as one of the fastest growing economies, not just in Africa, but in the world. Since its 27-year civil war ended in 2002, the country has gone from strength to strength, thanks primarily to successes in the oil industry and strong export markets.
26
December 2014
Below: Vladimir Putin with Angolan President Jose Eduardo dos Santos
A f r i can E conom i es
03
Egypt
US$271,427 million
A nice fresh colourful Algerian salad using bulgur wheat, cucumber, spring onions, peppers and cheese
04
Algeria
Of all the major economies in Africa, it is perhaps Egypt who should be most concerned in recent years, but there are now signs of recovery. With political aspects now settled since 2011’s fall of Hosni Mubarak’s regime, the country is now in the process of rebuilding its production capabilities, led by the New Suez Canal project.
US$211,906 million Like much of North Africa, oil and gas is the main source of Algeria’s revenue, and while the economy is forecasted to grow, the rate of growth is unlikely to be as extreme as it has been in the past. Nevertheless, recent efforts into enhancing hydrocarbon wealth has increased projected GDP growth from 2.8 percent in 2013 to four percent in 2014.
Hosni Mubarak
27
When looking to let loose your business’ full global potential, we’ll help you spread your wings. vodacom.com.ng
Vodacom Power to you
With points-of-presence in more than 198 countries and over 5 000 enterprise customers in Africa alone, we’ve built the widest business network in the world, giving you the freedom to let your business ambitions take flight.
AMBROS/D35696/CAGE
Business without borders
A f r i can E conom i es
Constitutional Court of South Africa
02
South Africa
US$350,779 million Having long been considered as the gateway to Africa, South Africa’s position as the continent’s number one economy has finally been usurped over the past year due to the inconsistency of some key sectors. While still the number one FDI proposition by a sizeable margin, problems within the private sector and internal structures has inhibited the kind of growth seen in the first decade of the millennium. 29
top 10
01
Nigeria
US$580,470 million The emerging market has officially emerged, and the exciting prospect for Nigeria is that there is still massive potential for even further growth moving forward. With the country’s GDP now the only one in Africa to top US$500 million, projections for forthcoming progress forecast Nigeria to be among the world’s top 20 economies by 2020. This push could come largely from international input, with the country’s FDI levels still some way behind South Africa’s, once again highlighting the potential still lingering. Recent successes in Nigeria have come largely due to an economic reformation which has occurred over the past 10 years, now acting as a hub for West Africa as a region. Previously pigeon-holed as an oil producer, the country’s key industries now vary across a range of sectors; its global significance stemming from its foothold in the financial and professional services domain. 30
December 2014
A f r i can E conom i es
The Nigerian capital and main port, Lagos
31
Medtech Ethiopia Pioneers Domestic Industry Growth through Joint Venture and Acquisition Written by: Matthew Staff Produced by: Kiron Chavda
33
Medtech Ethiopia
For the past 16 years, Ethiopia’s pharmaceutical industry has developed alongside Medtech Ethiopia and EPHARM, ensuring that this latest acquisition will optimise the international influence of both
EPHARM emblem, representing the
M
edtech Ethiopia has signaled its intentions in recent years through various acquisitions and diversifications, and is well on its way to benefiting from its most significant investment to date. The Ethiopian pharmaceutical company’s recent acquisition of EPHARM (Ethiopian Pharmaceuticals Manufacturing Factory) signals a full circle in the business’s 16-year development, which initially saw it operate as a distributor for the latter to fill the demand gap in Ethiopia. Founder and Chief Executive Officer (CEO), Dr. Mohammed Nuri, was the innovator who noticed the concerning trend and has not looked back since deciding to form the country’s first pharmaceutical supplier. “I am a doctor by background, and was really frustrated by the shortage of availability of pharmaceutical products in the country,” he said. “This is what pushed me to go into this field and with the Ethiopian market untested at the time, we grew exponentially. “From five staff members in a three-room office, with capital of $50,000, we have now registered more than 300 pharmaceutical products from more than 20 global suppliers. We are ISO certified and one of the top pharmaceutical companies in Ethiopia.”
first and largest pharmaceutical factory in Ethiopia
34
December 2014
EPHARM acquisition EPHARM has been a government-owned organisation for the past 50 years, establishing an
secto r
EPHARM production
unrivalled reputation in the country and industry, making the acquisition a vital feather in the cap of Medtech Ethiopia. With a total of 63,000 square meters of land to expand the EPHARM facilities, Dr. Nuri has taken the opportunity to make sure that the potential of this venture is optimised. “EPHARM has eight manufacturing lines for various products and we will be renovating each one in turn over the next five years to make sure they meet GMP (Good Manufacturing Practice) guidelines before making them fully operational,” the CEO explained. “Any machinery that needs changing we will change, and any that needs upgrading, we will upgrade; all the while maintaining the existing employees and giving
EPHARM products
w w w. m e d t e c h e t h i o p i a p l c . c o m
35
Medtech Ethiopia
H ea l thca r e
them the relevant upgrades in training.� Alongside the physical assets of the renovations and inherited product lines, the retention of the 500 staff members and identity that EPHARM has within the country is seen as pivotal to the success Dr. Nuri expects from the acquisition, while the operational improvements that have begun are already receiving international input and recognition via the likes of Bosch, in regards to the installation and training involved with new machinery. The end result will see EPHARM’s facilities globally competitive, and will subsequently continue to carry the flag for the industry in Ethiopia.
Key Personnel
Dr. Mohammed Nuri Founder and Chief Executive Officer (CEO)
The Medtech sales team w w w. m e d t e c h e t h i o p i a p l c . c o m
37
Medtech Ethiopia
38
December 2014
H ea l thca r e
Joint venture Collaborations, acquisitions and partnerships – both domestic and international – have been key features of Medtech Ethiopia’s vast expansion over the past 16 years. The company now consists of four business units; pharmaceuticals, medical supplies, lifecare and general trading. The first comprised a large portion of the company’s early successes, relying on key partnerships in India and the Middle East to provide as many market-leading products as possible to Ethiopia. The aim now, however, is to capitalise on Ethiopia’s general economic growth and to become the hub for manufacturing and distribution locally. To aid this slow, but concerted transition away from imports, Medtech Ethiopia has recently embarked on a joint venture with one of the UAE’s giant pharmaceutical companies, Julphar, as Dr. Nuri explained: “We signed an exclusive agreement with Julphar 12 years back, registering certain products from this company, and in 2012 we signed a joint venture agreement with them on a state-ofthe-art pharmaceutical manufacturing factory here in Ethiopia called Julphar Ethiopia PLC. “This factory was inaugurated by our Prime Minister and has received big public approval.” With three production lines and 100 employees introduced as a result of the venture, the immediate success of the partnership has subsequently led to a further proposal which will
“From five staff members in a three room office, with capital of $50,000, we have now registered more than 300 products from more than 20 global suppliers. We are ISO certified and one of the top pharmaceutical companies in Ethiopia” - Dr Mohammed Nuri, Chief Executive Officer, Medtech Ethiopia
Medtech’s warehouse
w w w. m e d t e c h e t h i o p i a p l c . c o m
39
Medtech Ethiopia
H ea l thca r e
see Julphar Ethiopia open up the country’s first insulin factory. Work will begin on the factory by 2015 which, once completed, will not only become a massive benchmark for availability of insulin in Ethiopia, but will ultimately become a hub for the entire continent.
3%
Corporate Social Responsibility Being a pioneer from a business sense is very important to Medtech Ethiopia, but being a positive influence in the country outside of its profit-making activities is every bit, if not more significant. For the past 10 years the company has donated three percent of its net income to be distributed around the country to worthy causes, as part of its widespread Corporate Social Responsibility (CSR) programme. “This money goes to the poor and needy and we currently have 10 non-governmental organisations and charities that we regularly support, including work with the blind, providing spring water for 30,000 people in 13 rural areas and supporting rural elementary & secondary schools and two autistic centres,” Dr. Nuri said. “We also work in association with the local university to provide scholarships for young students and are also very much involved in making sure that our manufacturing practices preserve the environment as best as possible.” Once the EPHARM renovation has been completed, the business even has plans to open
Percentage of the company’s income donated to worthy causes over the past 10 years
Spring water development donation project
w w w. m e d t e c h e t h i o p i a p l c . c o m
41
Medtech Ethiopia
Ceramic tile product (left) and showroom
“Medtech Ethiopia is an ethical and highly professional company, proud of itself here and abroad as a reliable and admired business partner” - Dr Mohammed Nuri
42
December 2014
its own charity foundation, providing further aid to people unable to provide for themselves. Vision 2020 As a result of the company’s recent acquisitions and subsequently successful expansion plans, Medtech Ethiopia has had to revise its initial 2020 vision, with the target now to become one of the top businesses in the country. This refers not just to the pharmaceutical sector, but across all businesses, leading to even further efforts to diversify and expand its offering at present. Dr. Nuri explained: “We currently import and distribute products in baby nutrition like DanoneBebelac, as well as being an agent for companies like Procter & Gamble. “We have also just begun running a big ceramic factory in a joint venture with a world class
H ea l thca r e
Company Information Industry
Healthcare headquarters
Addis Ababa, Ethiopia founded
Cattle exporting farm
1998
ceramic manufacturer. This factory in Ethiopia will be upgraded over the next nine months to become the biggest for ceramics in the country.” Adding to this repertoire exists the company’s animal exporting business from its tailor-made export house, which led the company to be named as best cattle exporter in the country five years ago; all of which, Dr. Nuri believes, will conspire to make sure Medtech Ethiopia becomes one of the top three business groups in Ethiopia by 2020. “Medtech Ethiopia is an ethical and highly professional company, proud of itself here and abroad as a reliable and admired business partner,” he concluded. “We have set a new vision of being a top three business group by 2020 while strengthening our CSR programme by truly supporting the needy across the country.”
em p l o y ee s
1,500 revenue
Not Disclosed products/ services
Pharmaceutical
w w w. m e d t e c h e t h i o p i a p l c . c o m
43
Shree Property Holdings
Building on a strong foundation of family values Written by: Abigail Phillips Produced by: Dennis Morales
45
S h r ee P r o p e r t y H o l d i n g s Unilever’s new storage facility located next to their indonsa plant in riverhorse valley
Technology, continuous improvement and a family orientated culture sets Shree Property Holdings in good stead for future growth
46
December 2014
F
ounded in 1980 by husband and wife duo Pran and Annisha Shree, Shree Property Holdings is a family owned and operated business. The family owned business was born out of a retail butchery and evolved into a distributor of local and imported meat products in the region, however in 1999 the family recognised an opportunity in the market and diversified into the cold storage of citrus products. The citrus division of the business was successfully able to secure the two largest clients in the industry - Dole SA and Capespan - and these relationships catapulted the company into the spotlight. That being said the cyclical nature of the citrus season meant that for six months of
S u pp l y cha i n
“We are constantly striving for excellence in terms of methodology, technique and efficiency” – Pran Shree, CoFounder & Ceo of Shree Property Holdings
the year, the company’s warehouses were vacant, which steered it towards the option of letting its facilities to short-term clientele. “The clientele we attracted included large food and beverage brands like Tiger Brands and Brandhouse as well as bulk storage of sugar and grain products with the likes of Tongaat Hullet Sugar. This was possible because our citrus facilities were designed to store food graded products under the EU, EuroGAP and PPECB, HACCP and ISO 22000 approved standards. This in essence fueled our passion and drove us directly into the property development space. We purchased buildings, demolished and custom built them to food graded warehouse standards,” w w w. s h r e e p r o p e r t y h o l d i n g s . c o m
47
Cousins Steel International (Pty) Ltd (CSI) is a Durban-based company, specialising in the design, supply and erection of high quality steel structures. Current work ranges across a variety of industrial applications, including warehouses, factories, and cold storage facilities. info@cousinssteel.co.za www.cousinssteel.co.za
supplier profile
cousins steel international
One of the latest completed projects by Cousins Steel International (CSI) is situated at King Shaka International, in the Dube Tradeport. Designed in its entirety by the team of in-house engineers, the steel frame spans 96m with two internal columns, whilst the roof covers just over 12,000m2, making this a highly functional facility in prime location. With internals at just over 13m, the warehouse has areas over 1,200m2 without any obstructions. An interesting aspect of the construction phase was the use of Voidcon composite decking in the office slab, significantly reducing construction time, whilst keeping within the design, and architectural parameters. With the previously mentioned in-house team, CSI undertakes to design, detail, fabricate, supply and erect the super structure as well as all cladding, doors, louvres and associated items. Along with the stated scope of work, all concrete, stormwater and required design is handled by the CSI team as an added benefit to the client. The client has recently tenanted the warehouse out to global industry giant Samsung, who have subsequently taken beneficial occupation, and started production in the port. Structural Steel Supplier:
Cousins Steel International
Design Engineers:
Cousins Steel International
Developer:
Shree Property Holdings (Pty) Ltd
Building Contractor:
Various
Tenant:
Samsung
For more information, please contact: info@cousinssteel.co.za
> Corporate and Investment Banking
STRONG RELATIONSHIPS ARE BUILT ON SOLID FOUNDATIONS We know the importance of relationships. Working together allows us to understand your needs so we can offer the best real estate solutions for you. With over 152 years of banking experience, this is how we’re moving real estate forward.
They call it Africa. We call it home. www.standardbank.com/cib
Authorised financial services and registered credit provider (NCRCP15). The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). SBSA 174809 – 10/14 Moving Forward is a trademark of The Standard Bank of South Africa Limited
S h r ee P r o p e r t y H o l d i n g s explains Pavan Shree, Chief Marketing and Sales Officer at Shree Property Holdings. In 2007, the company was officially established as a property development company and today, has an extensive property portfolio in Durban comprising of 56 properties. Shree Property Holdings industrial portfolio extends across Durban and the company is currently headquartered at Dube TradePort, in the vicinity of King Shaka International Airport. The majority of its industrial properties are densely concentrated alongside the Durban Harbour and the newly proposed Dig out Port. Since becoming a property development company, Shree Property Holdings has diversified its client portfolio to include blue chip companies, automotive manufacturers and logistics providers
supplier profile
const r u ct i on
Inside the cold room storage of Beacon’s Chocolates
Standard bank
Standard Bank Real Estate Finance, a division of Investment Banking, has the largest dedicated real estate platform of any financier in subSaharan Africa. We provide financing in all areas of the real estate sector and are committed to providing funding via a variety of solutions specific to the needs of our clients putting them at the forefront of their real estate initiatives. Gary Garrett, Head: Real Estate Finance Email: REFQueriesSA@standardbank.co.za Website: www.standardbank.co.za/cib
w w w. s h r e e p r o p e r t y h o l d i n g s . c o m
51
S h r ee P r o p e r t y H o l d i n g s
uti logistics facility
‘Shree Property Holdings has a reputation in the region for developing and maintaining AAA grade, new generation warehouses’
52
December 2014
as well as food and beverage clients. This vibrant tenant profile includes the likes of Unilever, Volvo, Samsung, DHL, Tongaat Hulets Sugar and Katoe Natie just to list a few. Providing world-class storage solutions Shree Property Holdings has a reputation in the region for developing and maintaining AAA grade, new generation warehouses. The company prides itself in providing its clients with complete turnkey storage and logistics solutions, including customisation of facilities for individual tenants. Shree Property Holdings has undergone intensive research and development studies in order
S u pp l y cha i n
to develop spaces built for maximum storage flexibility and efficiency – for example, each layout incorporates open span design and ideal flow within the warehouse to enable maximum usage of the floor area, which in turn assists and creates greater efficiencies in the operation of their client’s business. Furthermore, the company has its own bespoke in-house construction division – Shreeprop – which helps ensure that all new developments are built to plan in a cost effective and timeous manner, further guaranteeing that the quality of materials and workmanship is at its finest. It is this factor that enhances the reputation and the ability
Large overhang constructed to allow for a covered loading space
w w w. s h r e e p r o p e r t y h o l d i n g s . c o m
53
S h r ee P r o p e r t y H o l d i n g s for Shree Property Holdings to build AAA grade warehouses quicker than most.
We put our logo’s on all our properties to show ownership and quality of our products which our company prides on
Continuous improvement Quality and meticulous planning sets Shree Property Holdings aside from the competition and this underpinned by a culture of continuous improvement. “We are constantly striving for excellence in terms of methodology, technique and efficiency,” says Pran Shree, CEO and CoFounder. “We work hard to create productive environments for our tenants using the latest technology.” Shree Property Holdings is a firm believer in technology, as well as deriving benefits from adopting the first user advantages of it, therefore strategically continuing to invest in such to ensure its systems are up to date. “In the citrus business
The Shree Property Holdings development & construction team
54
December 2014
const r u ct i on
we have been using a wireless, handheld based warehouse management system that has enabled us to load the correct pallet out and at the right time based on all the different variables like FIFO, Count, Grade and Target Market. This system has had many revisions over the years and has also been replaced and reengineered a few times as our business grew,” says Mayur Shree. “On the property side we are constantly reengineering our intranet and Microsoft SharePoint Services as connectivity and different platforms evolve. This ensures that all our staff members are constantly connected and informed on the different sites and scope of work that we are busy with. We employ Microsoft Project Professional and Autodesk’s Building Design Suite which has increased our turnaround times and improved our accuracy in all projects from planning to completion,” he continues. The company has also developed its own Shreeprop app, which allows tenants to log enquires instantly with the property management team and expect responses immediately in real time. Corporate social responsibility Technology is not the only driving force behind Shree Property Holdings as an organisation. It is also dedicated to implementing world-class CRS initiatives. “Corporate social responsibility is very important to our company and resonate directly with our core values,” explains Sanam
Key Personnel
Pran Shree Co-founder & CEO 30 years of experience in the Cold Storage and Food Industry 10 years of experience in the Property Development Industry SAPOA member Durban Chamber of Commerce Member
“We work hard to create productive environments for our tenants using the latest technology” – Pran Shree
w w w. s h r e e p r o p e r t y h o l d i n g s . c o m
55
S h r ee P r o p e r t y H o l d i n g s
Our plant and transportation equipment owned and managed by our construction and development team
“The origin of the Shree Future Foundation relays back to Shree Property Holdings core values” – Sanam Shree, Chief Strategy and Investment Officer 56
December 2014
Shree, Chief Strategy and Investment Officer. “The company has always supported various charitable organisations, and has a large involvement with Soroptimist International, Durban Club because of the affiliation of our CFO, Annisha, who was the club’s Immediate Past President. Shree Property Holdings and Soroptimist International, Durban Club have formed a partnership in The ‘Adventure into Adulthood’ project and it was this integration that
S u pp l y cha i n
brought about ‘The Shree Future Foundation.’ “The origin of the Shree Future Foundation relays back to Shree Property Holdings core values of empowerment, innovation and creating a sustainable and better future for our children of tomorrow and the less fortunate. The organisation wishes to educate a university student by providing the potential candidate with the opportunity and funding to study and educate her/himself further. One hundred Grade w w w. s h r e e p r o p e r t y h o l d i n g s . c o m
57
S h r ee P r o p e r t y H o l d i n g s
Warehouse facility occupied by s.a. Landside Logistics
The warehouse has a 20,000 m2 storage capacity
11 students from disadvantaged backgrounds undergo stringent written and oral tests in order to qualify for the grant. The successful student will then be awarded a bursary to study at a tertiary institution. Voluntary educators will provide arms of support and mentorship from both the Soroptimist Club and the Shree Family.� The company aims to grow this foundation to a larger scale over the next few years and truly values corporate social responsibility and believes in giving back to the communities in which it operates. Family values rule the day The company isn’t only dedicated to helping those external of the company. Being a family run business, Shree Property Holdings views its staff compliment as being part of their greater family, whilst firmly adopting the ethos of a corporate structure. It is also important to note
58
December 2014
S u pp l y cha i n
Company Information Industry
Construction headquarters
La Mercy, South Africa founded
2007
that it is passion and dedication that largely fuels the business. All five family members oversee different arenas of the business and work largely to complement each other with their talents and skills. This display of their complimentary skills will be well executed in the roll out of Shree Property Holdings Africa. Whereby Shree Property Holdings is internationalizing the business and increasing its African footprint in the SADC regions. The first step in the Company’s global movement will be via Mauritius. This has also been an easy process due to the fact that their Blue Chip tenants are requesting space in these SADC countries. “We put our family name to our brand,” says Pran Shree. “A constant goal that we strive to achieve is to add value to our clients and their business. Being a young player in the property market, it is worthy to note that for the Shree Family this is just the beginning,” he concludes.
em p l o y ee s
250 revenue
Not disclosed products/ services
Property Development, and Warehousing
w w w. s h r e e p r o p e r t y h o l d i n g s . c o m
59
GBCSA
Green Building Council of South Africa Focuses on Change Written by: CEO, Brian Wilkinson Produced by: Richard Deane
61
G B CSA
Mayfair on the lake, Durban, KwaZulu-Natal
Brian Wilkinson, CEO at GBCSA talks about the association’s aim to make sustainable building the norm, rather than a novelty
62
December 2014
T
he key motivator of the Green Building Council of South Africa (GBCSA) and the green building initiative is the fight against global warming, climate change and the effects that each of these are having on our planet. It is evident that to address the global priorities of climate change and scarcity of natural resources the environmental impact of buildings requires urgent improvement. We aim to address this by ‘inspiring better buildings’ – it’s what gets us out of bed in the morning. Climate change became very real for me last year when my daughter was in the Philippines and Typhoon Haiyan hit. Almost 12 million people were affected, one million were displaced and 4,500 people were unfortunately killed. I am fortunate that my daughter was unharmed and she is safely
C onst r u ct i on
Department of Environmental Affairs, Pretoria Gauteng
back home, but for me that was the time I realised the significance of the work we do. Buildings consume 40 percent of the world’s end-use energy consumption, generate 40 percent of its solid waste and consume 12 percent of its fresh water during construction and on-going operation. Buildings ‘going green’ provides an opportunity to significantly reduce these amounts at a relatively low marginal cost. Green construction methods can reduce energy consumption by almost 50 percent, compared to non-green buildings. Our partners, associates and Green Star certified projects are already reaping the rewards of their green investments through lower operating costs, higher returns on their assets, minimised churn and increased productivity – all
50% The percentage green construction methods can reduce energy consumption
w w w. g b c s a . o r g . z a
63
No 1 Silo - V&A Waterfront Cape Town, Western Cape
Photo: Marc Oberman
Photo: Marc Oberman
G B CSA
No 1 Silo - V&A Waterfront Cape Town, Western Cape 64
December 2014
while doing their bit for the environment. The green building initiative also addresses many of the pressing issues facing local authorities in our country today, such as electricity supply shortages, water shortages, the lack of solid waste disposal sites, transportation and socio-economic issues. Green building is on the agenda of many boardroom tables in the property sector, but we are increasingly seeing governmental change given the existing need and potential positive outcomes. The support has been widespread but of most
C onst r u ct i on
significance is the take up of Green Star SA by Government bodies and big businesses from banks and property developers. The Western Cape Premier, Helen Zille, for example, in 2012 announced the aim to turn the province into the green economic hub in the country. To date, there has been significant investment in this cause and further sustainable job creation. Green building in Johannesburg has also received a boost with the Johannesburg Stock Exchange (JSE) listing its first green bond. The R1.46 billion ($140 million) bond issued by the City of Johannesburg, will be used to fund green initiatives and demonstrates commendable green leadership. Green buildings have been proven to make sound economic sense. Results in the USA, Australia and now South Africa, clearly show that there is no significant difference between the cost
$140 million The value of bonds issued by the City of Johannesburg to fund green initiatives
Office w w w. g b c s a . o r g . z a
65
G B CSA
Offices at Black River Park
Portside, Green Star SA, Cape Town, Western Cape 66
December 2014
of green buildings compared to conventional buildings and that green buildings show the potential to achieve better investment returns and higher valuations. Since 2007, the GBCSA has led and continues to lead the transformation of the industry to ensure all buildings are designed, built and operated in an environmentally responsible way. The GBCSA has concentrated its influence in the South African commercial property sector, with this reach translating into the partnerships with over 1,000 member companies; the education of over 5,000 people and the induction of close to 900 Green Star SA Accredited Professionals. Early this year, the council celebrated an
C onst r u ct i on
Company Information Type of A s s o c i at i o n
Independent, non-profit headquarters
South Africa founded
2007 key people
Brian Wilkinson, CEO
important milestone having certified 50 Green Star rated buildings and projects. We are also looking forward to the marked increase in certifications with the release of the existing building performance tool and the interiors tool, both currently in pilot phase with Version 1 due for release in October this year. We could not have achieved the success we have to date without the support of some very big players in the sector, which have paved the way for change. We need to collaborate and face these challenges together – when it comes to climate change the sum of the parts is always greater than the individual.
Brian Wilkinson, CEO; Manfred Braune, Chief Technical Officer; Jaci Harrison, Membership Manager; Donne Putter, Education Manager; Jo Anderson, Head of Marketing; Reyana Nacerodien, Marketing Content Manager N o. of members/ li sti ngs:
998
w w w. g b c s a . o r g . z a
67
Tetra Pak
Invests Heavily in the African Market Written by: Sam Jermy Produced by: Kiron Chavda
69
Te t r a Pa k
The global food and drink processing and packaging company Tetra Pak, recognises huge growth potential in Southern Africa
70
December 2014
T
etra Pak is looking forward to a surge in market growth in the coming years as southern Africa’s appetite for dairy and juice products held in paper based packaging shows no abating. The company, which was founded in Sweden in 1951, is continuing to plough significant investment into strengthening operations in its Pinetown packaging material factory near Durban. It is also investing heavily in training and employee development. John Strömblad, Managing Director of Tetra Pak South Africa, said: “We are investing a lot on staff training to ensure we are meeting increasing demand and heightened customer expectations.” He explains that consumers are constantly looking for new, more convenient products,
M an u fact u r i ng
which puts pressure on manufacturers to continuously innovate their offerings. “There is a lot more diversity in food packaging and products compared with five years ago,” he said. Due to this increased demand, the company is always looking at ways to develop new packaging solutions and update its production facilities. “We already have a strong technical service area, but we can be even better,” said Strömblad. “We are expanding our capabilities in that respect by offering value added services such as training external operators by illustrating how to reach higher levels of efficiency.” Rise to prominence Aseptic packaging, which is the practice of filling a sterile food or liquid into a paper based
250 The number of employees across its South African operations
w w w. t e t r a p a k . c o m / z a
71
www.jpm.pt
Founded in 1994, JPM is in the fields of Industrial specialized in the design equipment, primarily in
s a technologically advanced company that develops its activities primarily l Automation and Mechanical Engineering. Throughout its journey, JPM has n, production, installation, maintenance and repair of industrial plants and food, pharmaceutical and chemical industries.
supplier profile
JPM industry
Services: Founded in 1994, JPM is a technologically advanced company that develops its activities primarily in the fields of Industrial Automation and Mechanical Engineering. JPM has specialized in the design, production, installation, maintenance and repair of industrial plants and equipment, primarily in food, pharmaceutical and chemical industries. We offer accuracy, innovation and quality in every product and service we develop in order to effectively attend the needs of our customers. JPM has a long experience, founded in numerous projects developed in more than 30 countries all over the World. We are a team of more than 90 people, average age 34, with the appropriate competencies in mechanics, mechatronics, automation, electricity, programming, project management, maintenance and kaizen & lean methodologies, operating on an industrial area of approximately 10.000 m2. Vision: To grow in a sustained way and in the long-term, acting as a lead partner for multinational companies. Mission: To offer engineered solutions, automated equipment and maintenance services for distribution lines, using the latest technologies available, to industrial customers on a global scale, aiming to optimize their production and/ or logistics processes. Website: www.jpm.pt
Te t r a Pa k
M an u fact u r i ng
package, started in 1959 at Tetra Pak. When a sterile product such as UHT milk goes into the packaging, the perishable goods can then be kept for much longer periods without the need for refrigeration. This led to generous savings in distribution and the overall handling of products, such as a reduction in energy consumption. Then in 1991 Tetra Pak acquired a diverse Swedish engineering company called Alfa-Laval AB. It produced industry leading industrial and agricultural equipment and milk separators. At the time of the takeover it was the largest deal Sweden had ever seen. Strömblad said: “Today, if you set up a dairy you can buy or lease everything you need from Tetra Pak. Not only the filling and packaging equipment, but also everything you need for processing such as pasteurisers, sterilisers, homogenisers, automation equipment and so on. “Obviously it’s an investment for that company, but then we also provide technical service and maintenance support to make sure everything is performing properly. The technical service training centre in Johannesburg is where we train our employees from the whole of sub-Saharan Africa. “Most importantly we train our customer’s operators too; we run very practical training courses in our Johannesburg facility. The vast majority of business comes from within South Africa but we’re seeing very interesting growth
Key Personnel
John Strömblad Managing Director John Strömblad MD of Tetra Pak Southern Africa is a 28-year Tetra Pak veteran who has risen through the ranks. He began as marketing trainee and sales administrator in Lausanne, Switzerland. He joined Tetra Pak South Africa from Greater China as VP Sales Management. Prior to Greater China he was the M&PM VP based in Seoul. He has a great deal of experience in developing markets having led the Greater China region for Tetra Pak since 2012
w w w. t e t r a p a k . c o m / z a
75
Your partners from
A to B across
land, sky and sea
www.freight-services.co.za E: julianc@imaginet.co.za
RY INE ll H AC l fu X M ssiona ier of E E P I l TH TRY pp rofe a p ice su Y TO INDUS R v ser HINE ARTS C MA PHIC A GR
PRINTING CONVERTING IPEX specialize in DIGITAL FINISHING
FINISHING solutions to the PRINTING, PACKAGING & CONVERTING INDUSTRIES
www.ipex.co.za
Johannesburg Phone: +27 (0)11 493 7816 Fax: +27 (0)11 493 2389 info@ipex.co.za
Durban Phone: +27 (0)31 701 0260 Fax: +27 (0)31 701 0294 info@ipex.co.za
Cape Town Phone: +27 (0)21 535 1515 Fax: +27 (0)21 535 1513 info@ipex.co.za
T: +27 31 201 4715
Te t r a Pa k
M an u fact u r i ng
potential in other markets such as Zimbabwe, Zambia, Angola and Mozambique too.” The global Tetra Pak group has seen a tremendous growth over the past 30 years, and the same can be said for South Africa since operations started there in the early 1990’s. Today it employs around 250 people in its country headquarters in Johannesburg, engineering centre in Cape Town and packaging material factory near Durban.
“The most obvious way to reduce impact to the environment is to reduce the amount of packaging material” – John Strömblad, Managing Director
Managing growth The encouraging signs of growth throughout the region Strömblad manages has seen many of its customers forge successful international brands. The South Africa entity oversees a total of 10 southern African countries including Botswana, w w w. t e t r a p a k . c o m / z a
77
Te t r a Pa k
Tetra PlantMaster
75% Percentage of Tetra Pak packaging used for milk-based products 78
December 2014
Malawi, Mauritius, Mozambique, Namibia, South Africa, Zambia and Zimbabwe and its main export market is west Africa. However, there are 38 Tetra Pak factories worldwide so there is an allocation of products on a global scale too. Globally, 75 percent of Tetra Pak packaging contains milk and by-and-large South Africa follows this trend. But recently, as well as the leading juice firms, there has been a more diverse range of produce utilising the packaging such as tomato centric products, wine and even canned food like baked beans. StrĂśmblad said: “We provide various different packaging materials which we produce in the factories. That material is then shipped to our
M an u fact u r i ng
customer’s site, sold to them, then the customer uses that material to pack their product. That’s the overall business model. “We have recognised that seed and oatmeal drinks, as well as almond and soya milk is probably one of the biggest growing segments globally and we expect similar growth movements in the future. If we look at market data, we are looking at around 10 percent growth in carton packaged milk and a decline of chilled milk of about four or five percent going forward in the coming years.” Sustainability and CSR The three parts of Tetra Pak’s products are the paper-based material, polyethylene and aluminium foil. Carton material is sourced mainly from Scandinavian manufacturers because in order to form these packages longer fibre is needed, and that comes from slowly growing forests typically found in Scandinavia and North America. “Environmental thinking is in our genes, it started right from the beginning in the 50’s. The most obvious way to reduce impact to the environment is to reduce the amount of packaging material. If you take a typical 1 kilogram carton it weighs 28 grams but if you have a glass bottle it is more like 300g. “A straightforward reason for our fantastic sustainable performance is down to the fact that we are basing our manufacturing on a renewable
13% Percentage the group’s carbon footprint was reduced by from 2005 to 2010
w w w. t e t r a p a k . c o m / z a
79
Te t r a Pa k
Technical Training Centre 80
December 2014
M an u fact u r i ng
resource of paper. It comes from responsibly managed forests which means you plant more trees than you cut down. Most of our packaging material has an FSC marking on them and we are a driving member of the Paper Recycling Association of South Africa (PRASA).” “We are working with the Polyethylene technology providers who can give us green PE produced mainly from sugar cane. We are also striving for a barrier material in place of aluminium. You will see an entirely green product from us in the not too distant future.” Tetra Pak has worked hard to reduce environmental impact and achieved tangible results; the group’s carbon footprint was reduced by 13 percent from 2005 to 2010 despite substantial company-wide growth. It also has a three year old partnership with the paper mill Gayatri, going from zero recycling due to a lack of facilities to 16 percent overall, which is continuously rising, enhancing Tetra Pak’s image as a sustainable, ethical company in Southern Africa. Tetra Pak has become a household name in the packaging and food storage sector. Its commitment to sustainability, product development and continued expansion means it remains a long way in front of the competition. With on-going investment into employee development and geographical expansion, it’s likely to retain its world-leading title for many more years to come.
Company Information Industry
Manufacturing headquarters
Johannesburg, South Africa founded
1951 em p l o y ee s
250 in South Africa revenue
Not disclosed products/ services
Packaging & Processing
w w w. t e t r a p a k . c o m / z a
81
Atlantis Mining SA machinery at Elandspruit and Kromdraai
IPC Coal Blue Sky Th Beyond for Black Empow Written by: Matthew Staff & Produced by: Anthony Munatswa
hinking Goes Above and werment in South Africa 83
IPC C o a l
The South African Mining Company has set itself apart in a congested industry over the past six years, all the while ensuring that it enriches the lives of others as well as its own development
Kromdraai opencast mining area
84
December 2014
I
PC Coal is differentiating itself in a competitive junior mining market through a combination of turnkey products and services, Blue Sky thinking and an unparalleled devotion to Black Empowerment, both internally and in the surrounding region. Based in Durban, with its’ operational centre in Witbank, Mpumalanga (within 30km of its’ coal mines), IPC Coal’s progressive history has been driven by a succession of strategic acquisitions and sales, enveloping an expert developmental process for collieries in the surrounding area which have seen large-scale profit enhancements in each individual case. IPC Coal itself was founded in 2008 as a domestic marketing company for coal originating from Nucoal Mining and its flagship Woestalleen Colliery in Middelburg, Mpumalanga. Chief Operating Officer at the time, Paul Erskine played a pivotal role in the success of that operation and now, in his role as Chairman of IPC Coal, he can reflect on the platform that Woestalleen provided. “I was involved in 2005 with the Investors, where we purchased Woestalleen Colliery for around R65 Million before selling it on four years later for R650 Million, a 1,000 percent increase,” Erskine explained. “We built Nucoal Mining from 65,000 tons a month production to eventually 350,000 tons per month, and IPC was responsible for all the local distribution of the coal to all the guilt-edged, top boiler companies.”
M i n i ng
Following the sale of the Woestalleen site in 2009 and a subsequent foray into a charitydriven bucket list adventure for Erskine, he then returned to open up the Elandspruit Colliery which was mined out by May 2013, as well as the neighbouring colliery in a joint venture with Nungu Colliery where 13 million tons of coal remains. One Stop Shop IPC Coal’s journey stems from the 2004 Mining Rights Act in South Africa when Black Empowerment was brought in, subsequently breeding the junior mining sector, away from the major mining organizations on the continent. To differentiate itself from the 18 or so other companies in the niche market though requires an entrepreneurial flair which Erskine was quick to pick up on and implement by making Elandspruit Colliery Wash Plant
Key Personnel
Paul Erskine Chairman In July 2006 Paul Erskine negotiated the take over and management buyout of Woestalleen Colliery for R65 million. He was appointed COO of Nucoal Mining. Woestalleen Colliery was to become Nucoal Mining’s flagship. Paul arranged with Frazer Alexander to set up Phases 2 and 3, which was the expansion of the washing plant at Woestalleen from 65,000T to 350,000T per month. He arranged R150 million worth of funding which completed the capital expenditure required to take Woestalleen to a 2.4 million Ton coal exported. He also negotiated the acquisition of Vuna Colliery / Zonnebloem Coal Reserve in 2006 which had 26 million tons of coal. He was instrumental in negotiating a 3 million ton / 5 year Eskom contract for middlings. By 2009 the Woestalleen Colliery had more than 20 million tons of reserves and a fully operational 350,000T washing operation but lacked the export allocation for its 2.4 million tons of coal capacity. Paul approached Coal of Africa, a listed company on the AIM and JSE and by December 2009 Nucoal was successfully sold to Coal of Africa for R650 million. Paul decided to do his “Bucket List” and most of his adventures can be seen on his website at www.paulerskine.co.za
w w w. i p c a f r i c a . c o . z a
85
IPC C o a l
Aerial view of the Elandspruit Nungu opencast area
IPC Coal a one stop shop coal provider. “We’ve gone further down the value chain where we take it from Prospecting Rights now, which is really at the Blue Sky level, and we undertake the drilling, geology, environmental studies and the final Mining Rights Application,” he said. “My job is to operate the mines and make sure we turn them around so that the Investors get a really good return.” This approach has fostered a strong reputation in the coal hub of Middelburg, with Investors attracted by the proposition of flexible entrance into the project, whether it’s from early development, Mining Rights stage,
Specialist Gas / CBM services and certified Well Cap Control – core holes to completing perm test / production wells. Multi-Purpose Core/RC/ DTH/ Water Hammer drill rigs and associated supporting equipment manufactured by www.bohrmeister.co.za and Directional drilling www.geosonic.co.za
We offer 24/7 operations with 24 hour live streaming camera surveillance “finger on the pulse” working environment, patented above ground mud sump system which requires no-dug mud sumps. Mud and/ or air drilling with BOP, Rotating Head and 140 bar Booster. Environmentally compliant. www.infin.co.za
Container kitchen sponsored by IPC Coal
or even through to the marketing phase. Throughout the whole service provision though exists IPC Coal’s most prized assets, its sub-contractors. Erskine continued: “Every single part of our business is sub-contracted out. Companies like Atlantis Mining who carry out all our mining operations have something like R250 million worth of equipment, so instead of learning the business that they have mastered, we rely on them and add value for each other.” Atlantis Mining has subsequently mined more than 26 million tons of coal under Contracts that Erskine that has placed with them. This epitomizes the successful model which also incorporates a separate transport division, marketing, in-house sales operation, Social and Labour, Health and Safety and Engineering sub-Contractors, all of whom have worked alongside Erskine on a long term basis to foster
“Companies like Atlantis Mining who carry out all our mining operations have something like R250 million worth of equipment, so instead of learning the business that they have mastered, we rely on them and add value for each other” – Paul Erskine, Chairman
w w w. i p c a f r i c a . c o . z a
87
IPC C o a l
First blast at Kromdraai
“Once you unlock those Blue Sky standalone projects, that’s where the true value comes in” – Paul Erskine
88
December 2014
a mutually beneficial and trustworthy team. Blue Sky thinking IPC Coal’s expertise in the junior mining sector is to attain groups that are at a Mining Rights stage, to then structure the proposition, raise the money and to get the mine up and running within three months of signing the Contracts. By that point, the mine will have begun making a return on the investments put into it, completing the cycle. However, to separate itself from market competitors requires the ability to identify ‘out-of-the-box’ deals, as Erskine explained: “We look for opportunities where we know that there are washing plants and coal in the area, knowing we can put it together because of the people that we know.
M i n i ng
“Some we take equity stakes in and raise funding for, but my main focus now is to look towards Blue Sky Prospecting Rights business because of the early entry and low value. “The drilling, exploration process and environmental studies per mine only costs around R3 Million, so once you package those and validate everything and put it all together, you’ve spent a relatively low amount on a project which you can either sell for R15 per mineable in situ ton or mine them out. “Once you unlock those Blue Sky standalone projects, that’s where the true value comes in, to complement my bread and butter business which still exists at the operating mines of Elandspruit and Kromdraai.”
R3 million Cost of drilling, exploration process and environmental studies per mine
Removal of overburden at Kromdraai
w w w. i p c a f r i c a . c o . z a
89
IPC C o a l
“…in everything we do, we’re trying to pass on that expertise, to enrich people in our organisation” – Paul Erskine
The Learners of Amaoti School outside Durban
90
December 2014
Domino effect Having such a positive influence on Black Economic Empowerment through its’ core operations is one thing, but IPC Coal prides itself just as much on its own Corporate Social Responsibility influence through the Domino Foundation. Instead of enriching a particular black individual or company, IPC decided to enrich an organization in the form of the Domino Foundation, which helps fund children’s homes, feeding programmes, literacy initiatives and life skill development. “It is an incredibly ethically, well run, accountable foundation,” Erskine said. “I have also set up the Mbuyelo Jesu trust which holds 30 percent of IPC Coal’s shares so that the funds that run through it are given to the Domino Foundation, and we work very closely with them on a project by project basis.” This footprint and foundation through
M i n i ng
Company Information Industry
Junior Mining headquarters
Jonathan Erskine (CEO) receiving a Certificate
Durban, South Africa
of Appreciation from Amaoti School founded
everything the company does has bred exponential growth over the past six years, and Erskine is confident that it is initiatives such as this which fit into the same Black Empowerment ethos which helped develop the business from the beginning. “I also run a programme where I take on exprisoners once they are released, to train them as either drivers or weighbridge operators, within one of our sub contracted companies, because everyone is redeemable and because others wouldn’t take a chance on them, their loyalty towards you is unquestionable. Erskine concluded: “This is just another contribution that we make and in everything we do, we’re trying to pass on that expertise, to enrich people in our organization. “As we expand, instead of sourcing human resources from outside, we find people from inside and move them up the chain, and that’s why it’s called ‘Domino’.”
2005 em p l o y ee s
24 revenue
R1.2 billion from 2011-2014 products/ services
Coal, Cement
w w w. i p c a f r i c a . c o . z a
91
Aerial view of the Grande C么te mining area
Boosting the Senegalese Economy with a Globally Significant Mining Project Written by: Matthew Staff Produced by: Anthony Munatswa 93
G r a n d e C Ô t e O p e r at i o n s
Grande Côte’s 36MW power station
The TiZir Limited and Senegalese Government-owned company has spent much of the past decade planning for one of the world’s biggest mineral sands mining ready to bring the fruits of its success to the local region
94
December 2014
G
rande Côte Operations has begun production in one of the world’s largest dredging operations as it aims to achieve economic prosperity, not only throughout its 15 year-plus lifecycle of the mine, but also far beyond that to Senegal and the local population. Stretched four kilometres wide and 100 kilometres long, the Grande Côte site has been a long time in the planning under the guidance of owners, TiZir Limited, and the Senegalese Government who owns the remaining 10 percent; both of which have played an integral role in supporting all stages of the operation’s development. The origins of what is now a globally significant mine, goes back to 2006 when
secto r
Mineral Deposits Limited gained the tenure, followed quickly by a similar successful tender for a gold project, also in Senegal. While the gold mine took off immediately, Grande Côte was slowly developed in the background in regards to logistical planning, locating resourcing and carrying out feasibility studies; all of which culminated in the key ownership agreement which has funded the project to where it is today. Chief Executive Officer, Simon Finnis explained: “Mineral Deposits Ltd (MDL) signed an agreement with ERAMET, a large industrial company with an ilmenite smelter in Norway, as a joint venture partner. “MDL then merged the Grande Côte project
Simon Finnis
CEO Grande Côte Operations
w w w. m i n e r a l d e p o s i t s . c o m . a u / g r a n d e - c o t e - m i n e r a l - s a n d s
95
G r a n d e C Ô t e O p e r at i o n s This map shows the existing rail currently being refurbished and the new 22km rail spur link to the mineral separaton plan
“It’s very important to us that we are self-sustaining so we built everything ourselves to make sure everything is catered for onsite” – Simon Finnis, CEO
96
December 2014
into this joint venture, forming the company, TiZir Limited which now owns the smelter in Norway and 90 percent of the project here in Senegal. “Now that the construction effort is over we can look towards producing what some people have reported as six percent of the world’s mineral sands products from this Grande Côte mine.” Ramping up production Located 50 kilometres north of Dakar, Grande Côte runs parallel with the ocean for the entire 100 km length of the mining concession, making it a globally significant mineral sands deposit. The mine itself was constructed over a two year period, at a cost of $650 million, finishing
m i n i ng
in March 2014 and will mine relatively low grade 1.7 percent heavy mineral sands. Now in the “ramping-up”, commissioning phase of the project, Finnis is eager to start seeing the fruits of the organisation’s labour. “The project itself is fully integrated and starts off with us mining a large sand dune with our dredge.” he said. “We then process that sand through a mineral concentrator - a floating wet concentrator – which separates the sand from the heavy minerals using gravity techniques, creating a heavy mineral concentrate. “This concentrate is pumped to a storage area, and we place the clean sand, using pumps, pipelines and stackers, behind us. “What you end up with is a big pond where we take from the front and put it in the back, so the whole pond continues to move along the mine path following the ore body.” The mining operation will, at full production, mine and process at a staggering production rate of 55 million tonnes per annum. Over a projected lifecycle of at least 15 years, this equates to more than a billion tonnes of resources, with nearly 800 million in reserve. The heavy mineral concentrate is then trucked to the operation’s mineral separation plant where it is put through further stages of processing, all of which culminates in approximate annualised production of 575,000 tonnes of ilmenite (two grades), 80,000t of Zircon (two grades) and smaller amounts of Rutile and Leucoxene.
Grande Côte Operations With construction complete and mining underway, the Grande Côte Mineral Sands Project is one of only a few major new projects globally that is set to take advantage of the supply-constrained mineral sands sector. Grande Côte is located in Senegal, west Africa. Having gained independence in 1960, Senegal enjoys a stable and investor friendly political and social environment. The government of the Republic of Senegal is a valued partner and holds a 10% free carried interest in the project.
Mineralisation
w w w. m i n e r a l d e p o s i t s . c o m . a u / g r a n d e - c o t e - m i n e r a l - s a n d s
97
www.total.com
You know where to turn
supplier profile
total senegal
Total is one of the largest major integrated oil and gas companies in the world, with products marketed in 150 countries. The Group is also a first rank player in chemicals. Its 100,000 employees put their expertise to work in every part of the industry – exploration and production of oil and natural gas, refining and marketing, gas and new energies, trading, and chemicals. With nearly 15,000 service stations worldwide, Total is among the largest refiners & marketers in Western Europe and the leading marketer in Africa. Total is a major player in the specialty products business (lubricants, aviation fuels, marine fuels, heavy fuels, liquefied petroleum gas, bitumen‌) and one of the leading traders of oil and refined products worldwide. Total is committed to meeting growing energy demand while consistently acting as a responsible corporate citizen. Total is actively preparing for the energy future by progressively expanding its offerings and developing complementary next generation energy activities, with a focus on solar. As a result of strong partnerships with mining companies in 40 countries worldwide, Total has developed mining solutions based on a range of high quality products with integrated services. TOTAL MINING SOLUTIONS adds value to mining customers by maximizing equipment availability, increasing productivity and thus, reducing their overall costs. Supplying around 200 mining sites worldwide, Total is a partner of choice for mining companies. Website: www.total.sn
G r a n d e C Ô t e O p e r at i o n s Reaching new scales While inevitable that each of these products will ebb and flow in regards to market demand over the course of the mine’s lifecycle, the flexibility of Grande Côte means that the range of products available from the operations will allow a rise in certain customer interest in one mineral to offset any shortcomings from another. This is also testament to the sheer scale of the project, as Finnis explained. “The project is of such a scale that using equipment that had been previously used elsewhere wasn’t an option. Everything we built was brand new and purpose designed. “It’s a brand new industry in Senegal but not in Africa necessarily. The processes we’re using are common and the same goes for the equipment. However, the scale is not common. “From a mining perspective, it’s twice as large as any single dredging operation in the world so it’s a very significant project.” Ensuring that all construction and mining requirements were available onsite has been
m i n i ng
Grande Côte Operations is the largest of its kind in the world
“The project is of such a scale that using equipment that had been previously used elsewhere wasn’t an option. Everything we built was brand new and purpose designed” – Simon Finnis, CEO w w w. m i n e r a l d e p o s i t s . c o m . a u / g r a n d e - c o t e - m i n e r a l - s a n d s
101
Your Supply Chain Partner for Engineered Projects, Fully Integrated Under One
Umbre
EPL Group is a specialist end-to-end procurement and supply chain organisat delivers a unique approach for improved project performance outcomes, reduc costs and shorter delivery times. Our lean offering seamlessly ties into engine and construction workflows via our globally available Real Time Project (RTP) for visible, traceable and reportable material management across all discipline
Interfacing your project’s supply chain delivery with Procurement
Expediting
•
•
Capital equipment & bulk construction schedule
•
Supplier data and drawin design schedule
•
Supplier quality and inspe
•
On site fabrication packag
•
All equipment and materi in real time by » Project work break dow » Commodity code, tag n purchase order
Contract and purchase order » Tender, evaluation, negotiation and formation » Administration, invoice validation & processing » Dispute resolution & close out
•
Supplier relations & performance metrics
•
Exotic and hard to find engineered equipment and materials
•
Engineering interface with procurement » At the package level » In line with engineers’ bulk commodity class library » In line with engineers’ tagged equipment list » In accordance with project work break down structure
T: +61 (7) 3046 3004 E: enquiries@eplgroup.com.au www.eplgroup.com.au
Level 54, 111 Eagle Stre Brisbane QLD 4000, AUSTRALIA
ella.
tion that ced eering ) system es.
h your engineering and construction programs
k materials to
Logistics •
International project freight forwarding service » Heavy lift and out of gauge air, sea and road logistics » Air and sea chartering » Worldwide cargo hot shot service » Route surveys and engineered lifts for projects
•
Project site warehouse operation & management » Inventory management by project work breakdown structure » Receipt of materials against purchase orders » Issue of materials by construction work pack
ngs to engineering
ection management
ge management
ials reportable
wn structure number and/or
eet,
Our clients include:
c o m pa n y n a me
Dredge launch
“It’s very important to us that we are self-sustaining so we built everything ourselves to make sure everything is catered for onsite” – Simon Finnis, CEO 104
December 2014
a pivotal component of the mine’s potential success, and has recently lent itself to dealing with early challenges and teething problems. Minor redesigns of the project and the implementation of new equipment is something that Grande Côte has been able to respond to quickly and effectively to ensure that optimum productivity is returned to within as short a time as possible. Finnis continued: “It’s very important to us that
secto r
Overlooking the initial dredged pond
we are self-sustaining so we built everything ourselves to make sure everything is catered for onsite, to be as efficient as possible. “We’ve built a large facility at the port to store our finished products and load the vessels, as well as building a power station onsite to provide our electrical needs. We also have a camp, power lines and our own water system to ensure we have everything we need, built ourselves.� w w w. m i n e r a l d e p o s i t s . c o m . a u / g r a n d e - c o t e - m i n e r a l - s a n d s
105
Grand Marine Oil and Gas (NIG) Limited is a company in the marketing of petroleum products and provision of marine support services in the downstream sector of the Oil and gas industry.
SERVICES Vessel Owners (Oil Tankers) Provision of Barges and Tugboats Provision of Jetty facilities Marine security services Shoreline protection services Bunker and Fresh water supplies Ship chandelling and Manning services Provision of House boats Marine consultancy services
C O N TA C T U S www.gramog.org info@gramog.org +234 (0) 808 0770 004
+234 () 803 317 3144 17c, Marine Road, Apapa, Lagos, Nigeria
GRAND MARINE OIL AND GAS
(NIG) LTD
G r a n d e C Ô t e O p e r at i o n s
m i n i ng
Supply chain management Continuing in this vein, Grande Côte has also taken the same internal approach to its supply chain, and especially its distribution channels via rail. “From this point of view, we have also installed a brand new railway from the mine to Mecke to connect in with the national rail network, and have refurbished the line from there to Dakar Port, which we are also managing as we transport minerals to the port,” Finnis said. “It’s been quite difficult because we’re introducing brand new trains and brand new roads and a different culture from the point of view of maintaining that rolling stock in Sengeal.” As a consequence, $50 million has been invested into the rail builds and refurbishments
supplier profile
Highly trained experts
TransAfricaine de Travaux et Services
Main text goes here and can be a block of copy - if there is no desire to indent the copy with headings. Main text goes here and can be a block of copy - if there is no desire to indent the copy with headings. If you need to create a new paragraph then just hit return and a separating rule appears for segregating the paragraphs. The text in this box aligns from the bottom up. Adjust the text box height of course, but leave the position of the box so that the bottom of the box has a y co-ordinate of 742pt. Website: address goes here as the last entry
w w w. m i n e r a l d e p o s i t s . c o m . a u / g r a n d e - c o t e - m i n e r a l - s a n d s
107
G r a n d e C Ô t e O p e r at i o n s
$50m Has been invested into Grande Côte’s Supply Chain
with the operation having received a concession from the Government to manage it internally. Finnis continued: “The rail development has led to a key risk being eliminated in getting our products to port. The roads here may be a lot better than in other African countries but it is still quite difficult from a traffic and efficiency standpoint. 700,000 tonnes per year heading to port is not feasible via trucks.” For such a large scale operation, supply chain considerations have played an integral 108
December 2014
m i n i ng
Locomotives and rolling stock are part of GCO’s fully integrated logistics solution from mine to ship
role from the outset, with Grande Côte requiring the correct skills and equipment throughout the construction phase. In regards to the large amounts of steel, pipework, cables and dredges being purchased, availability simply isn’t there in Senegal, so a lot of the essential components were imported. However, the operation’s dedicated local focus was accounted for in terms of labour via nearby contracting companies. “From a purchasing perspective now, we try and w w w. m i n e r a l d e p o s i t s . c o m . a u / g r a n d e - c o t e - m i n e r a l - s a n d s
109
E N G I N E E R I N G
SUBWELD ENGINEERING NIGERIA LIMITED is a Nigerian company providing leading edge technology driven and customer focused services to the Nigerian Oil and Gas
www.subweldengineering.com
Industry. We have developed our capability
T: 01-2952728, 01-2952675
based on our past experiences to match the
E: info@subweldenginnering.com
demands of today.
G r a n d e C Ô t e O p e r at i o n s purchase locally as much as possible, keeping availability and price in mind,” Finnis added. Employ and train The theme of local commitment and corporate social responsibility (CSR) is one that resonates throughout everything that Grande Côte does, and becomes especially prevalent in regards to employment and people management over the entire lifecycle of the mine. Similarly to the supply chain situation, the skill sets aren’t available in a lot of key operational areas, but this certainly does not mean that Grande Côte has cast aside the premise of local workers, and is instead devoting much of its efforts to developing and promoting the best that the surrounding region has to offer. “It is true that in some areas the skill sets just aren’t there; there aren’t the people who can operate certain items of plants, so our philosophy is to employ and train,” Finnis said. “We have a highly skilled set of expats here doing the training for us and there are very well educated people here who will continue to grow in the organisation. “Skill sets in areas like some trades, instrumentation and high tech plant aspects we don’t see exist, so we have to make sure we tailor our training and expatriate support for areas like that. “We are looking long term and building for the future so that in a couple of years the
m i n i ng
“It is true that in some areas the skill sets just aren’t there; there aren’t the people who can operate certain items of plants, so our philosophy is to employ and train” – Simon Finnis
Grande Côte aim to train local people
w w w. m i n e r a l d e p o s i t s . c o m . a u / g r a n d e - c o t e - m i n e r a l - s a n d s
111
•
•
•
Se rv ices •
•
•
•
Industrial Assembly and maintenance units Boiler piping electromechanical work
•
Montage et maintenance unites industrielles Tous travaux chaudronnerie tuyauterie electromecanique Toutes construction batiments menuiserie metalique aluminium et vitrage Representation negoce courtage
Qualite - Competitivite
Construction buildings joinery metal, aluminium and glazing Representation trading brokerage
E: ils@ils.sn
Years go by, but our passion is still acute
Our businesses:
Construction, civil works, road and motorway works, naval works, energy, ect.
Tel: +221 33839 73 39
T: 00221 77 542 22 72
Email: eiffage.senegal@eiffage.com
1926 - 2014
Website: www.senegal.eiffage.sn
G r a n d e C Ô t e O p e r at i o n s local guys will have received the high levels of guidance and mentoring required to take over from the expats and to run things themselves.” Local focus CSR and sustainability doesn’t just stop at employment opportunities either, with a tailored sustainability department set up to cover areas of environmental considerations, health and safety procedures, community initiatives and corporate aid. “Beginning with the Grande Côte workers, in a perfect world we employ people locally rather than from Dakar so they can go home every night to their families, get plenty of rest and come to work refreshed and happy,” Finnis said. “We have therefore started a housing
m i n i ng
“Beginning with the Grande Côte workers, in a perfect world we employ people locally rather than from Dakar so they can go home every night to their families, get plenty of rest and come to work refreshed and happy” – Simon Finnis
Operators undertaking exploration drilling
w w w. m i n e r a l d e p o s i t s . c o m . a u / g r a n d e - c o t e - m i n e r a l - s a n d s
113
Nobody moves more in the mining industry that’s why I buy Cat ®
Keep it Real. Keep it Cat® Caterpillar and Barloworld Equipment gives the mining industry access to the broadest line of underground and surface mining equipment in the world - from one source. And behind the great products are the people. A team with over 85 years of experience, innovation and entrepreneurship. And one focus: helping mining customers succeed. For more information call +260 211 288 218 or +260 977 771 191 or email Kbwalya@barlows.com.zm
African Review (180x130).indd 1
Exceptional Service. Personal Attention. In order to provide comprehensive solutions to multi-faceted financial services industry requirements, and to deliver a strong client-focused approach across a range of insurance products, servicing corporates medium –size businesses and individuals in South Africa and the rest of Africa, the Pogir Group consists of four separate companies: Short Term Insurance, Healthcare Solutions, Employee Benefits and Life & Advisory.
Visit us online to find out more: www.pogirgroup.co.za St Andrews office park, Block A, Ground Floor 39 Wordsworth Avenue, St Andrews Bedfordview Tel: (011) 879 7200 | Fax: (011) 454 - 0581
2013/11/18 10:35 AM
1921
Ignazio Messina & C.
THE ITALIAN LINE
1994
Ignazio Messina & C. Pty Ltd
SHIPPING AGENCY IN SOUTH AFRICA
THE ONLY INDEPENDENT RO-RO CONTAINER SERVICE IN THE TRADE WITH OWN CONNECTING SERVICES THROUGHOUT THE MEDITERRANEAN 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
G r a n d e C Ô t e O p e r at i o n s
m i n i ng
Promoting the best staff
scheme so our workers can afford to buy and own their own home over a number of years. “We have set this up with BHS, a Senegalese institution that specifically targets the support of housing projects, where they will purchase land and we will assist in getting our people approved for mortgages which is usually a difficult process. We will look out for them and do what we can to help them get their own home in the local area, close to where they work.” A strong health and safety adherence promotes this ethos further, with hazard identification a pivotal factor not only for the organisation’s direct employees, but also the local population in general.
Grande Côte’s philosophy is to employ and train
w w w. m i n e r a l d e p o s i t s . c o m . a u / g r a n d e - c o t e - m i n e r a l - s a n d s
115
CAKASA CELEBRATES
4 YEARS
40 years of success, 40 years of engineering, 40 years of solutions, 40 years of growth, 40 years of world class service. Visit us to see how our 40 years of experience can benefit your operations in Nigeria and ECOWAS States.
BS Travel Management Ltd Rogers House, 5, Psdt John Kennedy Street, Port-Louis, Mauritius Tel: (230) 202 6765 / 403 1919 Fax: (230) 212 8886 E-mail: bluesky@rogers-aviation.com www.bluesky.mu
+ 234 (1) 8505058
Independently owned and operated by BlueSky
info@cakasa.com
www.cakasa.com
CAKASA
(NIG) COMPANY LIMITED
Around the Clock, Around the www.falcondownhole.com World
Engineering & project management
DOWNHOLE TOOLS, FISHING AND OILFIELD SERVICES PROVIDER Our dependable and effective fishing solutions are backed by a proven record of success and extensive world-wide experience
Tel: 234-7030489286, 234-07056939272 Email: ops@falcondownhole.com www.falcon downhole.com Sales: eerivona@falcondownhole.com, 234-7035197025 Operations: gukwuegbu@falcondownhloe.com, 234-8037025143 KLM 15 PORT HARCOURT INT’L AIRPORT ROAD, RUMUODUMAYA, PORT HARCOURT, RIVERS STATE, NIGERIA.
Logiman provides a specialist, multidisciplinary engineering consulting and project management service to the mining and heavy industries. Its particular strengths are in the process and minerals engineering sectors. The Pivot - Block A 3rd Floor - Johannesburg Tel: +27 (0) 11 011 9260 E: info@logiman.co.za www.logiman.co.za
G r a n d e C Ô t e O p e r at i o n s
m i n i ng
Finnis continued: “It is not uncommon in Senegal to see things like people riding around on the roofs of buses, and other hazardous behaviours but of course we can’t accept that because of the safety risk to our people. “We therefore spend a lot of time training and planning to make sure that everything is not just as environmentally efficient as possible, but is also as safe as possible.” Market acceptance Following the eight years of hard work, the next key phase to dictate the overall success of Grande Côte will be the market’s acceptance of the organisation’s products, something which Finnis anticipates being a relatively smooth transition, based on feedback already received. “Every time you introduce a new product, customers need to get used to that and we’ve sent some trial parcels to various places like China and North America over the past year,” the CEO explained. “We have seen acceptance of the products on a trial basis and we hope to do long term business with them, on ilmenite especially. From a zircon perspective we already have some long term partnerships in place.” There will inevitably be a period of time now while prospective customers assess the products coming out of Grande Côte but there is likely to always be a product among the range which is performing well to ensure the ongoing success of the overall operation.
Sampling
“Every time you introduce a new product, customers need to get used to that and we’ve sent some trial parcels to various places like China and North America over the past year” – Simon Finnis
w w w. m i n e r a l d e p o s i t s . c o m . a u / g r a n d e - c o t e - m i n e r a l - s a n d s
117
G r a n d e C Ă” t e O p e r at i o n s
Zircon and rutile storage at the Mineral Separation Plant
New track from the MSP to MĂŠckhe nears completion
118
December 2014
G r a n d e C Ô t e O p e r at i o n s “The products we’re going to make are high quality and they will gain market acceptance,” Finnis said. “There will always be periods in the industry when the market is soft and then times where it’s good. It’s just a case of getting from one period to the other as smoothly as possible. “For instance, the market is robust on the zircon side of the business right now but soft in the ilmenite market.”
m i n i ng
Company Information Industry
Mining headquarters
Senegal, West Africa founded
World class business While many companies have short and medium term goals, the lifecycle of this mine means that Grande Côte can look even further ahead at the bigger picture, and Finnis believes that much of the organisation’s overall targets will be visible within just five years, especially in regards to its influence on Senegal. “In five years’ time we will be a well-known and well understood business in Senegal,” the CEO concluded. “We’ll be an integral part of the community, providing a continuous revenue stream and providing jobs to local people. “In just a few years, the number of expats will be reduced, the expertise of the locals will be increased and we will be providing a platform for the people of Senegal to go on to bigger and better things in the future as well. “We’ve come in and built a world class business and it deserves to be managed to the highest levels possible.”
2006 em p l o y ee s
950 revenue
N/A products/ services
Mineral Sand Mining
w w w. m i n e r a l d e p o s i t s . c o m . a u / g r a n d e - c o t e - m i n e r a l - s a n d s
119
Khoemacau Copper Mining
Prepares for National Development and International Success Written by: Matthew Staff Produced by: Anthony Munatswa
121
K H O E M A C A U C O P P E R M I N I N G P T Y LT D
The Cupric Canyon subsidiary has spent the past few years discussing, planning and drilling in Botswana, and is now ready to move towards the start of construction next year followed by production in 2017
Symbolic ground breaking at the second quarterly meeting 2014 122
December 2014
T
he Khoemacau Project is in full swing having been rigorously planned over the past five years, and is now gearing up for the construction phase in line with its goal of beginning production in 2017. Formed under the global Cupric Canyon Capital company following the acquisition of Hana Ghanzi Copper Ltd in early 2013, Khomecau has subsequently built upon the work already being carried out in the region knowing that the expertise available within the Cupric Canyon organisation would be a perfect match for the project. After a review of more than 250 projects throughout the world, the Khoemacau Project was chosen based on very selective criteria, as Chief Executive Officer, Sam Rasmussen explained: “We’re a private company, and our goal is to create value for all of our stakeholders while maintaining the highest industry standards for safety and the environment. “The benefits of developing an operation such as this in Botswana included the quality of the project, the ease of operating here, the attractive labour force, the transparency and lack of corruption in the country and the investor-friendly mining code and legislation that exists here. “We identified what Hana had done up to that point and we were very impressed with the results. Although the M&I (measured and indicated) reserves were low at the time, we had a very strong sense for the project’s upside potential which has since been confirmed.”
MINING
About Us Khoemacau Copper Mining (Pty) Ltd (“Khoemacau”), previously known as Hana Ghanzi Copper (Pty) Ltd, a subsidiary of Cupric Canyon Capital LP (“Cupric”) has been exploring and developing the GhantsiChobe Copper Silver Project (“Khoemacau Project”), located in the Kalahari copper belt within the Ghantsi and North West Districts.
Core retrieval at Zone 5
Planning ahead Hana’s drilling campaign hit a scale of 30,000 metres, a figure which the Khoemacau Project has quickly and effectively surpassed having reached numbers between 150,000 and 200,000 metres in just a 24 month period to bring it up to a satisfactory M&I reserve level. This means that Rasmussen and his team can turn their attention towards the next stage of the project; namely preparing for construction with a view to production in 2017. “We are just finishing the feasibility study and are now transitioning to the FEED (front end engineering design) stage,” the CEO said. “Cupric
Activities at the Khoemacau Project have now successfully completed the 70,000 metres infill drilling programme at the North East Fold and Zone 5.
w w w. c u p r i c c a n y o n . c o m
123
We offer the following methodologies in Exploration Drilling and Grade Control: Reverse Circulation Drilling Diamond Drilling Air core Drilling Large Diameter Drilling RAB Drilling
Southern Africa’s Premier Exploration Drilling Company Plot 9258 Dumela Industrial, Francistown.
mail@geosearch.co.bw
www.geosearchgroup.com
Enlighten your world.
Visit us online
Solving Technical Problems Through Innovation Contek is a professional services consulting firm with a focus in engineering, environment, safety, related management systems, and regulatory compliance. For more information visit us online.
Illuminating solutions for day or night. www.provincelighting.com
T: (469) 467-8296 • F: (469) 467-8631 contek@contekllc.com • www.contekllc.com
K H O E M A C A U C O P P E R M I N I N G P T Y LT D is strongly committed to the project and we are prepared to begin construction once we have received government approval.” This planning forms arguably the most integral stage of the entire project, with the infrastructure and logistical challenges all addressed, building up to the commencement of production. “In the next three months there are some construction activities that will commence related to the development of water supply, temporary power generation and the camp,” Rasmussen continued. “Once this is completed, we can focus our attention on underground mine development and surface facilities.” There is now a fully functioning camp to cater for the 300 employees already working on this initial infrastructure, and the challenge now is to take the next step towards the larger structure, incorporating equipment, drainage, traffic considerations, power supply and water volume requirements. Competitive product Building toward the company’s 2017 goal, Khoemacau recently submitted an application for a mining licence and expects to receive approval before the end of 2014. This would confirm the rewards of an investment that has totalled around $160 million up to this point, including the cost of acquiring Hana Mining Ltd., Khoemacau’s parent company. Now officially a medium sized mining project,
MINING
Batanani Muyoba (Bates) explains project geology
Apprentices on board attending their first quarterly feedback meeting
w w w. c u p r i c c a n y o n . c o m
125
Top: Quarterly meeting at main camp Zone 5. Above: Titus Chanda, Exploration Manager, addresses the team 126
December 2014
K H O E M A C A U C O P P E R M I N I N G P T Y LT D the Company can partially turn its attention toward the end product and marketing-related matters. “The final product from the mine is a coppersilver concentrate, the content of which is 40 percent copper and 347 g/t silver,” Rasmussen explained. “Our payable product will be 50,000 tonnes per annum of copper, contained in 125,000 tonnes of copper-silver concentrate from the operation.” Not only is Rasmussen excited about the volume of production, but also the cleanliness of the concentrate which will surpass many competitors in terms of quality, which means that more than one buyer is already at the door, years in advance. Local responsibilities Running parallel with the ongoing focus on future economic success and continuous improvement has always been the Khomecau Project’s commitment to the region in which it operates, a dedication that was earmarked from the beginning simply in naming the subsidiary. “’Khoemacau’ is a combination of five words from the sandman tribes that live on the central Kalahari Game Reserve here, meaning ‘hills of the people’, and it was chosen by a local school after we got the local communities involved to help us name our project,” Rasmussen said. “Assisting the nearby communities and people is very important when mining companies operate
MINING
Key Personnel
Sam Rasmussen CEO Sam is a seasoned professional in the copper industry, most recently serving as General Manager of the Los Bronces copper mine in Chile. He has held various operational and technical roles with Freeport-McMoRan Copper and Gold (and its predecessor Phelps Dodge Corporation) for more than 16 years. Sam was General Manager of the TenkeFungurume project in the Democratic Republic of Congo, responsible for development and operation of copper and cobalt processing facilities.
w w w. c u p r i c c a n y o n . c o m
127
K H O E M A C A U C O P P E R M I N I N G P T Y LT D
Overview of main camp in the Banana Zone
“It’s the philosophy of the company; if we don’t have the expertise we develop it, if we don’t have something we build it” – Sam Rasmussen, CEO
128
December 2014
in small communities, so we’ve made a point of carrying out socially responsible activities like building schools, wells, houses and even clinics.” This local emphasis translates to its own employment strategies too, with more than 90 percent of the current workforce of 300 coming from Botswana. Despite a shortage of skills in some areas, Khoemacau is certainly not taking an ‘out of sight, out of mind’ approach and is instead devoting itself to the training and development of indigenous, willing workers to build for the future of the mine in the hope that operations will be
MINING
Company Information INDUSTRY
Mining HEADQUARTERS
Gaborone, Botswana FOUNDED
2013 EMPLOYEES
300 REVENUE
Not disclosed
managed almost exclusively by Botswana in the years ahead. “It’s the philosophy of the company; if we don’t have the expertise we develop it, if we don’t have something we build it,” Rasmussen concluded. “It may take five or 10 years but you’ve got to think long term, and our development plan for the project is consistent with this philosophy. “In five years’ time I’m positive I’ll be able to report back that Khoemacau successfully started up in 2017 and continues to exceed production expectations, all while operating smoothly and safely and empowering the people of Botswana.”
PRODUCTS/ SERVICES
Copper Mining
w w w. c u p r i c c a n y o n . c o m
129