Creating Wealth, investing in communities
CBG
Resources Feature
Creating Wealth, investing in communities 2
Issue 103 ·Business Enquirer Magazine
Issue 103 · Business Enquirer Magazine
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PROJECT DIRECTED BY
WRITTEN BY
Malvern Kandemwa
Jay Benmehidi
CBG
S
trong, lightweight and sustainable, aluminium is a material that is of critical importance to the global economy. From aeroplane components to power cables, consumer electronics, cans and industrial appliances, the properties and uses of this silver-white metal means that it can be found in virtually every area of modern life. Its strategic importance is immeasurable.
Guinea is sitting atop a metaphorical gold mine, and with demand for bauxite projected to grow yet further over the coming years, Compagnie des Bauxites de Guinée (CBG) - the largest bauxite producing company in Guinea and one of the largest in the world – is primed to further consolidate its standing as one of the world’s most important miners.
As the key material that is used in the production of aluminium, bauxite – a reddish-grey mineral that is extracted into aluminium oxide, and then smelted into aluminium, is one of the world’s key resources by extension. The Republic of Guinea, a small west African country with a population of just 13 million, possesses the world’s largest reserves of bauxite, to the extent that one-third of the world’s entire bauxite reserves are to be found inside the borders of the small west African nation.
Traore Souleymane, CEO of Compagnie des Bauxites de Guinee
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Issue 103 ·Business Enquirer Magazine
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CBG Since it was founded in October 1963, CBG has generated vast sums of FDI for the small developing nation – revenue flows that have proven to be indispensable for the country’s socio-economic development. Located in the Boké region, an area that is well known for its abundance of resource riches, such as diamonds, coal and iron ore, CBG’s Sangaredi bauxite mine, processing plant and associated infrastructure are an industrial powerhouse for the country. With reserves of 385m/t at a grading 48.6% Al2O3, and resources in excess of 5 billion tonnes, the Sangaredi Mine is one of the largest in the world and is considered one of the best due to its high alumina content and low silica. “The production of bauxite requires various stages including prospecting, planning, stripping, drilling and blasting (in certain circumstances), transportation, crushing and drying. We supply our customers with bauxite that has a moisture content of 7% or less. This low moisture content gives our bauxite a unique and superior quality that facilitates, among other things, its transportation by ship as well as unloading and processing operations. Since 1973, we have shipped more than 500 million tons of bauxite to the world market, earning us the title of world leader.” Despite CBG’s undeniable economic value, however, there is much more than meets the eye. As a company which has stood as a pillar of Guinea’s growth and development for more than four decades, CBG is as much an investor into communities and social development as it is a business. For Traore Souleymane, CBG’s CEO, spoke proudly of this, saying: “CSR is critical – it is how we take our contribution to society and go beyond compliance. In recent years our budget for community investment has reached US$2.5million a year. In total, we have invested over $ 60 million in several areas to the benefit of local communities in the recent decades. We are fully committed to ensure that these social investments drive positive impact. That is why, in coordination with
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Issue 103 · Business Enquirer Magazine
Resources Feature
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the local communities, we identify, appraise and execute viable and sustainable projects, so as to ensure the communities will be self-reliant in the long run.
his team to the commitment of Traore and the CBG leadership team to seeking to improve conditions and livelihoods for the Guinean people. Traore understands better than most the socio-economic obligation that CBG has as a wealth creator and employer to the community
However, to maintain its standing as a world-leading bauxite producer and ensure that its community investment projects can continue, Traore knows full well that CBG needs to invest further into Sangaredi in order for the project to realise its true potential as a wealth creator.
“I think it is fair to say that the greatest challenge for a mining promotor in a developing country like Guinea is the issue of employment. We are, by far, the largest single employer in Guinea outside of the government. Well over 2000 of our workforce are direct hires. Over 90% of our personnel is Guinean, and over 70% comes from within the local communities of the region where we operate, Boke. I have to say that we need to make more efforts for the local communities to be cognizant of this reality.
In the wake of a successful fundraising initiative, which saw the company raise US$1 billion from an expansive grouping of international lenders, such as the IFC, commercial banks and leading global credit institutions, CBG is primed to embark on a full spectrum expansion of its mining operations which will Guinea further consolidate its status as a world-leading producer and exporter of bauxite for international markets for many decades to come.
Our greatest challenge though, as a company, would be maintaining the cost efficiency of our business, whilst being a big employer. A larger workforce maintains operating (fixed) costs at very high levels. To address this, we have come up with a concept consisting of enabling and supporting the establishment and development of small businesses by and for local communities. This helps not only generate revenue but also create sustained employment for the local communities.”
Over 90% of our personnel is Guinean, and over 70% comes from within the local communities of the region where we operate, Boke.
Since 2015 we have constructed a total of 164 facilities including schools, health centres and posts, water wells etc. Hundreds of kids are enrolled every year thanks to the schools that we have built. Thousands of young Guineans have graduated into college thanks to pre-university education facilities we have built. Over 25% of the medical consultations in our facilities are people from the local communities, the majority which are women.” In this regard CBG is a rarity. Not all miners have the will and the resources to invest into communities and people in such a way, but this policy is testament to the commitment of Traore and
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Facilities
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Our heart has been beating in Africa for over 160 years.
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YOUR CAT® DEALER TO SUPPORT YOU IN ALL YOUR PROJECTS: MINING I CONSTRUCTION & INFRASTRUCTURES ENERGY, MANUFACTURING & SERVICES.
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We constantly invest in our infrastuctures and people, mainly through our JAD Academy dedicated to the training of our teams and which was recently honored by Caterpillar’ accreditation on its Technician Career Development Programme.
A Caterpillar dealer for almost 90 years, JA Delmas is present throughout its Network in 11 countries in West Africa : Benin, Burkina Faso, Cote d’Ivoire, Gambia, Guinea, Guinea Bissau, Mali, Mauritania, Niger, Senegal and Togo, with The digital era lead us to innovative state-ofthe-art solutions: connected device, online more than 2400 employees today. Component sales and online tracking of spare parts, elecRebuild Centers tronic maintenance reports and preventive We operate in the following fields: maintenance to support you whatever your • Construction & Infrastructures (public current and future needs may be. works, excavation…) The Internationally renowned brand we dis• Regional Mining Training tribute, our presence and long history in West • Energy (generators, power plants, marine + Center and industrial engines, solar power sys- Africa, the strength of our Network and the different models expertise of our teams enable us to offer custems). tomized solutions to each of our customers. Our teams offer reliable and high-perfor- Our numer 1 Priority: customer Satisfaction. mance equipment,CatNew or Used, with all the Our ambition: contribute to the success of all Equipment latest technologies. They provide outstanding your projects and remain your Partner of Reflocal technical support, ensure the rapid sup- erence. ply of original spare parts, global solutions for Rental or financing. More and more Customers choose amongst our over 500 available rental references. Thanks to the development of our infrastructures exceeding 50,000m2, our Customers benefit from optimum service and genuine After- Sales support: a spare parts shop with a large stock of around 100 million euros, and a repair & maintenance workshop on each of our sites, 2 Component Rebuild Centers, a regional training Center. Our mobile squads guarantee also on-site interventions.
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Regional Training Center
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Component Rebuild Centers
different models
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Issue 103 · Business Enquirer Magazine
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Resources Feature The CBG expansion project will upgrade Sangaredi’s production capacity from 13.5 million metric tons operation to 18.5 million metric tons. Suffice to say this will have a substantial impact on the Guinean economy from a developmental standpoint. Upon completion of the expansion project, it is anticipated that the mine will generate significant additional revenue for the Government of Guinea. Additionally, the project will increase Sangaredi’s workforce by close to 1,300 employees during construction and over 230 permanent employees when new operations commence. As Traore concludes, CBG will continue to do what it does best as the company enters the new year: support Guinean communities, operate as a responsible miner and employer, and continue to improve standards at Sangaredi: “At CBG we work to build and maintain high levels of trust. From the outset, we work to keep or even go beyond the promises we make. Also we ensure that in any initiative we undertake, the local communities are fully involved, and they take ownership of it. This is hallmark of the CBG way of doing business, and it characterises and determines our success.”
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Issue 103 · Business Enquirer Magazine
CBG
We ensure that in any initiative we undertake, the local communities are fully involved, and they take ownership of it. This is a hallmark of the CBG way of doing business.
Issue 103 · Business Enquirer Magazine
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Compagnie des Bauxites de Guinee 00224623233898 www.cbg-guinee.com
info@busenq.com www.busenq.com