MiningonMadagascarPuttingtheMap Ambatovy
PROJECT DIRECTED Gary Smith
BY
WRITTEN BY Laura Watling
2 Issue 107 · Business Enquirer Magazine
It is imperative then, that other reserves for this metal be found.
Ambatovy team posing for a photograph
Business Enquirer Magazine · Issue 107 3
Two thirds of the world’s primary nickel ore is used in stainless steel production. It’s also becoming a key component in the production of electric vehicles, due to its use in heavy duty batteries.
Ambatovy
MiningonMadagascarPuttingtheMap
Investing News stated that in 2021 Russia was the third largest producer of nickel. Of course, analysts had their concerns regarding the nickel market due to the sanctions on Russia, and trading of nickel was even halted on the London Metal Exchange in March 2022.
Achieving Top 5 Status
In 2021, however, the partnership exceeded its yearly projection, making them one of the top five producers of nickel and cobalt in the industry.
Ambatovy Ajoint
venture between Sumitomo Corpo ration and KOMIR, Ambatovy is a major industrial operation, mining and refin ing nickel and cobalt in Madagascar.
Thus far, the project has seen investment of (US) $8 billion, making it the largest-ever foreign in vestment in the country – and one of the biggest in sub-Saharan Africa.
Together, the businesses produce high-quality nickel and cobalt from the Ambatovy mine, with a focus on sustainability.
of Madagascar’s capital, Antananarivo. The ore body of the mine consists of two large, weath ered lateritic nickel deposits - the Ambatovy de posit and the Analamay depost.
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“We owe our 2021 achievements to a strong and fully committed team,” said newly appointed CEO, Gus Gomes, “They succeeded in achieving a major turnaround, in very difficult and challeng ing conditions, including the Covid-19 pandem ic, which had led to stopping production between March 2020 and March 2021”.
Ambatovy strives to be a leader in operation al efficiency, health and safety, environmen tal management, and social engagement – all whilst contributing to the long-term prosperity of Madagascar.
With an early production capacity of 60,000 tons of nickel and 5,600 tons of cobalt, it ranks among the largest lateritic nickel mining com panies in the world.
In addition to its outputs, Ambatovy can proud ly say its briquettes contain 99.9% pure metal. On top of its nickel and cobalt supply, the proj ect also produces 120,000 tonnes of ammonium, created as a by-product of the refining process.
Despite a history dating back to the 1960’s, Am batovy started its operations in 2012, accomplish ing its first commercial production in January 2014. Operations at the mine have been designed to produce around 60,000 tonnes of refined nickel and 5,600 tonnes of refined cobalt annually.
Ambatovy
The mine site of Ambatovy is located 80km east
Sumitomo, headquartered in Japan, is a leading For tune 500 trading and investment business. Mean while, KOMIR (formerly known as KORES) is a fully integrated mining rehabilitation organisation.
Combined, the two deposits constitute one of the world’s largest lateritic nickel reserves, spanning around 1600 ha.
Vivo Energy Madagascar’s main activity is the importation, marketing and distribution of Shell fuels and lubricants both in service stations and to its commercial customers. The company is one of the main energy distributors in the country. WORLD CLASS TECHNOLOGY WORKING FOR MINING SHELL LUBRICANTS TOGETHER ANYTHING IS POSSIBLE www.vivoenergy.com UNLOCKING VALUE Lubrication can unlock significant value, particularly when you consider the costs related to lost production from equipment downtime. We also believe that selecting the right oils and greases, and adopting effective lubrication manage ment strategies can help to reduce maintenance budgets by up to 30%², primarily through lower maintenance costs, reduced equipment downtime and productivity improvements. Shell has one of the world’s largest lubricant expert teams (260 lubricant specialists) and a team of distributor partners, all passionate about their industry knowledge, and having strong industry relationships built on trust, who work with mining companies to achieve TCO savings and more equipment uptime. REDUCING COSTS Ambatovy was seeking to reduce maintenance, operating cost and downtime without decreasing generator reliability and performance. The Vivo Energy lubricants technical team recommended using Rimula R4X 15W40 oil for all the generators to increase the oil-drain interval from 250hrs to 500hrs. Since switching to Shell Rimula R4X, Ambatovy has extended the oil-drain interval of its generator by 100%. As a result, the company has benefited from increased equipment availability, reduced con sumption of lubricant and spare parts, and lower maintenance costs.
V i M a D i s o f f e r s c o n s u m e r s t h e o p p o r t u n i t y t o a c c e s s q u a l i t y p r o d u c t s V i M a D i s i s h e l p i n g t o c r e a t e a n e w M a d a g a s c a r b y p r o m o t i n g t h e e n t r y o f n e w r a n g e s o f q u a l i t y p r o d u c t s o n M a l a g a s y s o i l
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V i s i o n M a d a g a s c a r ( V i M a ) w a s f o u n d e d i n 2 0 0 0 b y Z o u z a r B o u k a , w i t h s o m e o f M a d a g a s c a r ’ s m o s t i c o n i c s t r u c t u r e s t o i t s c r e d i t , i n c l u d i n g t h e 2 0 0 7 S o u t h A f r i c a n E m b a s s y a n d t h e 2 0 1 0 A n t a n a n a r i v o C i t y H a l l S i n c e i t s c r e a t i o n , V i M a h a s a i m e d t o b e a m a j o r p l a y e r i n t h e d e v e l o p m e n t o f a " n e w M a d a g a s c a r " , n a m e l y t h e v i s i o n o f a c o u n t r y w h e r e p r i v a t e c o m p a n i e s c o n t r i b u t e t o i m p r o v i n g t h e q u a l i t y l i f e o f t h e M a l a g a s y p o p u l a t i o n T h e r e f o r e , V i M a i s r e p r e s e n t e d b y s e v e r a l s u b s i d i a r i e s w o r k i n g i n d i f f e r e n t s e c t o r s s u c h a s :
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H e a l t h y l i f e
In addition, it has focussed on creating environ mental programmes to educate the local com munity on the importance of Madagascar’s rich biodiversity, and its role in the country’s future.
8 Issue 107 · Business Enquirer Magazine
Contributing to community, country and economy
At the heart of Ambatovy’s procurement practices is its “buy locally, hire locally” policy, reflecting the organisation’s commitment to support the growth of the Malagasy industry and small business.
DHLGLOBALFORWARDING MADAGASCAR WeatDHLbelievethateveryprojectisunique.Wefocusourresources,expertise andenergiesintomakingeverytaskefficientinoutputandprofitableforboththe customerandthecompany. ImmeubleDHLGlobalForwarding Lot90EAmbohibaoAntehiroka Antananarivo105.Madagascar Tel:+261344217701 DHLGlobalForwarding–Excellence.Simplydelivered. www.dhl.com Business Enquirer Magazine · Issue 107 9
From providing training and capacity building, to assisting in the development of local suppli ers, Ambatovy appreciates the importance of its role in driving the local economy forward in its development.
By processing its raw ore in-country, Ambatovy contributes to Madagascar’s economic develop ment. By doing so, it increases Madagascar’s for eign earnings through export of nickel and cobalt.
Ambatovy has also made significant investment into local, social infrastructure. This includes creating roads and rehabilitating schools and medical centres.
“We are proud of our diverse and international workforce, with over 90% Malagasy employees, and 65% of leadership roles held by Malagasy pro fessionals,” said Mr Gomes.
Ambatovy sees its support for Madagascar’s achievement of the SDG’s in three pillars: Busi ness Approach; Community and Environmental Approach; And Supporting Local Growth.
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Ambatovy
Central to Ambatovy’s mission is supporting Madagascar’s input into the United Nations’ Sustainable Development Goals.
On his appointment, Mr Gomes said, “We are committed to continuing our activities in a sus tainable, responsible and effective manner, follow ing good governance, in order to generate tangible benefits for the country. I assure you that Ambatovy will continue to live up to its commitments”
As part of the awareness campaign, Ambatovy gave colleagues and their families an opportu nity to learn more about the business’s environ mental activities, including its unique breeding program for the golden mantella.
“Our biodiversity commitment includes protecting large conservation areas,” said Mr Gomes, “We have an orchidarium and orchid parks with over 283 orchid species, including 28 new species we discovered and some that are critically endangered. The orchids are protected and transferred to our re habilitation areas. We also protect a large number of fauna, including unique Lemurs which only exist in Madagascar”.
Ambatovy
An exhibition was held at the mine site and plant site, where visitors were able to learn about Am batovy’s activities in the fields of biodiversity, livelihoods, community engagement, reforesta tion and environmental monitoring.
Mr Gomes has more than 35 years experience in the mining industry, with appointments span ning the globe.
In June 2022 the organisation celebrated Sustain ability Month. The theme it followed this year was “Ensuring a future for the next generation”, some thing Ambatovy considers part of its culture.
Business Enquirer Magazine · Issue 107 9
In November 2021, Ambatovy appointed Gus Gomes to head up the business, which stands at 10,000 employees and contractors.
Ambatovy continues to make specific invest ments in education and social infrastructure. Its aim is to ensure that its presence in Madagas car is providing the maximum benefit to its host communities now and for future generations.
Ambatovy
Ensuring a future for the next generation
Ambatovy considers its sustainability pro gramme to be second to none, worldwide
A new era
Prior to working for Ambatovy, Mr Gomes took on senior managerial roles at MPX Energia and MMG, as well as ArcelorMittal and Vale.
Having completed a degree in Engineering and Geology and an MBA in Finance, Mr Gomes first embarked on his mining career for Broken Hill Proprietary. He went on to work as Director of Operations and Technical Services for the second largest metals and mining organisation Rio Tinto.
www.ambatovy.com
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Its continual efforts include having a strong safe ty culture and demonstrating responsible envi ronmental stewardship, both elements of which Ambatovy strives to meet the highest standards.
P e t c h e m S u p p l y C o L t d P e t c h e m S u p p l y i s p r o u d t o b e o n e o f p i o n e e r p a r t n e r s w i t h A m b a t o v y P r o j e c t s f r o m e s t a b l i s h i n g s t a g e , e v e r s i n c e s i t e c o n s t r u c t i o n 2 0 0 7 w h e n P e t c h e m S u p p l y s e r v i n g t o S h e r r i t t S N C L a v a l i n . O u r c o n t i n u i n g s u p p l y s e r v i c e i s f o r A m b a t o v y D y n a t e c i n M R O a c t i v i t y w i t h S t e e l s t r u c t u r e s , P i p i n g c o m p o n e n t s i e , F i t t i n g s , F l a n g e s , F a s t e n e r s , G a s k e t s i n v a r i o u s s t e e l g r a d e s f r o m C a r b o n s t e e l , S t a i n l e s s s t e e l s e r i e s , N i c k e l a l l o y a n d T i t a n i u m m a t e r i a l s . H i s t o r y P E T C H E M S U P P L Y s t a r t e d o u r b u s i n e s s j o u r n e y i n T h a i l a n d s i n c e 1 9 9 6 , 2 6 y e a r s ’ e x p e r i e n c e e n a b l e u s b e i n g o n e o f t h e m o s t r e l i a b l e s o u r c i n g p r o v i d e r o f s p e c i a l a n d e x o t i c m a t e r i a l s w o r l d w i d e f o r s u p p l y i n g t o M i n i n g , R e f i n e r y , E n e r g y , P e t r o c h e m i c a l a n d C h e m i c a l i n d u s t r i e s f o r d o m e s t i c s a n d o v e r s e a s c u s t o m e r s . P h i l o s o p h y & M i s s i o n : O u r i n t e r n at i o n a l s t a n d a r d i z a t i o n t h r o u g h I S O 9 0 0 1 : 2 0 1 5 L R Q A s p e a k s w e l l o f o u r h i g h s t a n d a r d . I t d e m o n s t r a t e s o u r s t r o n g c o m m i t m e n t o f b u s i n e s s m i s s i o n t o m a x i m i z e o u r c u s t o m e r s ’ s a t i s f a c t i o n f i r s t O t h e r t h a n t h e b e s t q u a l i t y o f m a t e r i a l s w e p r o v i d e o u r s e r v i c e d e d i c a t i o n a n d f l e x i b i l i t y i s a l s o r e c o g n i z e d s t r e n g t h a n d m a k e u s w e l l a c c e p t e d b y c u s t o m e r s e i t h e r d o m e s t i c o r o v e r s e a s O u r p h i l o s o p h y i s t o “ s u p p l y t h e ri g h t t h i n g a t t h e r i g h t t i m e w i t h t h e b e s t s o l u t i o n . ” T h e r e f o r e , w e i n t e n s i v e l y p a y d e d i c a t e d a t t e n t i o n i n e v e r y s t e p f r o m i n i t i a l d i s c u s s i o n w i t h o u r c u s t o m e r s t h r o u g h t h e c o m p l e t i o n o f t h e p r o j e c t . l i a c C h r o m e M o l y A 3 3 5 / P 1 1 , P 5 , P 2 2 , P 9 , P 9 1 S t a i n l e s s S t e e l A 3 1 2 / 3 0 4 / L , 3 1 6 / L , 3 1 7 L , 3 2 1 / H , 3 4 7 / H D u p l e x O t h e r G r a d e s a v a i l a b l e C o p p e r , C o p p e r N i c k l e , T i t a n i u m , H a s t e l l o y , I n c o n e l , I n c o l o y A l l m a t e r i a l s s u p p l i e d t o c u s t o m e r s a r e a p p r o v e d a n d i n c o m p l i a n c e w i t h w o r l d w i d e S h e l l a p p r o v e d m a n u f a c t u r e r s F u r t h e r m o r e , w e a r e a b l e t o m a i n t a i n a n e x t e n s i v e s t o c k o f m a t e r i a l s t o r e s p o n d t o t h e r a p i d n e e d o f c u s t o m e r s . O u r r e s p e c t e d s e r v i c e i s b a s e d o n t h e f a s t p e r f o r m a n c e i n s o u r c i n g , s h i p p i n g a n d c u s t o m s c l e a r i n g f r o m o u r w o r l d w i d e n e t w o r k : A s i a , U S A , U K , a n d E u r o p e . F u r t h e r , o u r f a c i l i t y o f s t o c k h o l d i n g i n T h a i l a n d e n a b l e s u s t o p r o v i d e o u r c u s t o m e r s w i t h a S u p p l y C h a i n M a n a g e m e n t s y s t e m f r o m E x W o r k t o D D P I n c o t e r m O u r m a n y y e ar s o f e x p e r i e n c e a n d e x p e r t i s e i n t h e b u s i n e s s s i n c e 1 9 9 6 h a s b e e n w e l l a f f i r m e d b y l e a d i n g o r g a n i z a t i o n s i n v a r i o u s i n d u s t r i e s t h r o u g h o u t T h a i l a n d a n d o v e r s e a s . T h e h i g h q u a l i t y m a t e r i a l s a n d s e r v i c e t h a t w e p r o v i d e a r e n o t o n l y f o r t h e s u c c e s s o f t h o s e o r g a n i z a t i o n s , b u t t h e y a l s o h e l p s t r e n g t h e n t h e n a t i o n s ’ e c o n o m y a n d i n d u s t r i e s
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Business Enquirer Magazine · Issue 106 11 F L A N G E S F A S T E N E R S G A S K E T S V A R I O U S S T E E L G R A D E S " P R O U D P I O N E E R P A R T N E R S O F A M B A T O V Y P R O J E C T S " E m a i l : I n f o @ p e t c h e m . c o . t h W e b : w w w . p e t c h e m . c o . t h F o r m o r e i n f o r m a t i o n
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Ambatovy
