Namibia's Construction and Mining magazine May 2018 by Namibia's Construction and Mining Magazine

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The Strength and Growth of the Mining sector

Construction & Mining Namibia, May 2018

Diamonds & Namibia - A Beautiful Journey This book takes you through the enchanting journey of Namibia’s most precious resource, Diamonds. Namibia’s Diamonds, after being liberated from their Kimberlite hosts, journeyed for more than 1,000 kilometres to the Atlantic Coast along the Orange River. During this voyage, they were subjected to intense abrasion over and over again, and as a consequence, only the best gems without inclusions, diamond’s travels pick up today - from the mine, to the marketplace, to the hand of a soon-to-be bride. To purchase the Diamond Journey book. Please visit the Office of the Diamond Board at The Ministry of Mines and Energy. The book cost only N$450.00 but early buyers who purchase at least 10 copies of the Diamond Journey book, will receive a discount of at least N$135.00

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Ministry of Mines & Energy building 3rd Floor, Aviation Road, Windhoek, Namibia | Tel: +264 61 284 8249 | Cell: +264 811442546 | www.diamondsnamibia.com 2

Construction & Mining Namibia, May 2018

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CONTENT 4

Celsius Raises Capital For Namibia Cobalt...

Mining Expo and Conference 2018

Towards Adopting A New Society Mindset

Renewable Energy is an attractive energy...

Regional Energy Deficiency, is an Investment...

The Case against rainwater harvesting

First Namibian Mined Lithium Readied For...

Building Plans

Wernhil Park introduces Section 1 of Phase 4

Ground-breaking for N$136 Million Vivo house

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Welcome to another edition Namibia’s favorite bi-monthly Construction and Mining magazine. We would foremost like to applaud the Chambers of mines for successfully hosting the 2018 Mining Expo and Conference. Bringing companies, suppliers, stakeholders and investors together in Windhoek, the Expo served as a showcase for the Namibian mining industry. Featured in this issue are: Faces at the 2018 Mining Expo, an opinion piece on Namibia’s renewable energy by the general manager of the renewable energy association, Harald Schütt, a write-up by Professor Anthony Turton from the university of Free State, South Africa, and many other informative and interesting articles. With this issue we begin a journey, evolving the magazine into what is hoped will be an indispensible source of information for both the mining and construction industry stakeholders and other interested parties. We hope that by contributing articles or bits of information relevant to the industry, or suggestions to improve the magazine, you will help us in the evolution and growth of Namibia’s Construction and Mining Magazine. Send through your opinion pieces to info@constructionnam.com Enjoy this read!

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CREDITS Business Developer Roxy Silta Tjarukua info@constructionnam.com +264 81 432 8467 Marketing Caryn Chanengeta marketing@constructionnam.com +264 81 296 7087

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MINING

elsius Raises Capital For Namibia Cobalt Studies ASX-listed Celsius Resources will raise A$9-million to accelerate feasibility studies at its Opuwo cobalt project.

he company said it had completed a bookbuild for the issue of 48.6-million shares, at a price of 18.5c each, to institutional and professional investors in North America, Hong Kong, Europe and Australia. “This capital raising allows the company to be fully funded for the continued rapid evaluation of the Opuwo cobalt project beyond the prefeasibility stage,” said Celsius MD Brendan Borg. “With our recently announcing a maiden Joint Ore Reserves Committee-complaint mineral resource confirming the project as having what we consider to be world significance in terms of size and strategic value, we look forward to continuing to progress the studies on the project as quickly as possible.” The funds would be used to complete both a scoping and prefeasibility study at Opuwo,

resource infill and extension drilling, additional exploration at previously identified targets, the start of a bankable feasibility study, and working capital. In addition to the share placement, which would not require shareholder approval, Celsius will undertake a share purchase plan, also priced at 18.5c a share, to raise an additional A$3-million.

Windhoek and Walvis Bay. The Ruacana hydro power station (320 MW), which supplies the majority of Namibia’s power, is located nearby, and a 66 kV transmission line with ample available capacity passes through the eastern boundary of the Project.

Some 16.2-million new shares will be issued to shareholders, with eligible shareholders entitled to subscribe for up to A$15 000 in new shares. The Opuwo Cobalt Project is located in northwestern Namibia, approximately 800 km by road from the capital, Windhoek, and approximately 750 km from the port at Walvis Bay. The Project has excellent infrastructure, with the regional capital of Opuwo approximately 30 km to the south, where services such as accommodation, fuel, supplies, and an airport and hospital are available. Good quality bitumen roads connect Opuwo to

Galp farms-down 40% of its Namibian Petroleum Exploration License 82 to ExxonMobil Galp informs that it is in the process of farming-down a 40% participating interest in the Petroleum Exploration License (PEL) 82 in Namibia to an ExxonMobil subsidiary. Following the conclusion of the transaction, both Galp and ExxonMobil will hold a 40% interest in the license, and Galp will maintain the operatorship. The National Petroleum Corporation of Namibia (NAMCOR) and Custos, a local Namibian company, each hold a 10% stake in the license. The license is located in the Walvis basin and covers an area of 11,444 km2 in water depths ranging from 300 m to 2,000 m. The transaction conclusion is subject to satisfaction of customary conditions precedent, including the approval of the relevant competent Namibian authorities. 4

Construction & Mining Namibia, May 2018

MINING EXPO ARTICLE

Construction & Mining Namibia, May 2018

Mining Expo and 6

Construction & Mining Namibia, May 2018

Conference 2018 Construction & Mining Namibia, May 2018

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GUEST COLUMN

Towards Adopting A New Society Mindset IN 2018 A RANGE OF SO-CALLED NATIONAL HOT-POTATO ISSUES HAVE BEEN DISCUSSED AND DEBATED HEAD-ON Being in our 28th year of independence my attention has been drawn to debates which have involved the “previously disadvantaged individual (PDI)”. The PDI has been mainly mentioned in debates involving the New Equitable Economic Empowerment Framework (Neeef) and land reform policies. Under Neeef, discussions hover around empowerment of the PDI with financial resources (capital) while land reform policy discourses are concerned with the access to land by the PDI to land. The colligation of these two policies reveals their shared and main objective – which is the empowerment of the PDI with economic resources (capital and land). According to our development plans (HPP and NDP5) empowering the PDI will help address the poignant tripartite problems of poverty, income inequality and unemployment. While the need for empowerment is clear, many questions about the current definition of the term “PDI” have been posed. Among them the following questions have featured recurrently: 1.

Who is exactly a previously disadvantaged individual?

What are the factors considered in the determination of a PDI?

How long is an individual a PDI? In these topics the definition of a PDI is the principal element.

Through the process of answering the above questions this op-ed attempts to bring clarity to the topic. The term PDI originates from article 23 of the Namibian Constitution. Since independence it has been nationally used in matters related to affirmative action. According to the Neeef policy document a “previously disadvantaged individual” is defined as any “(a) racially disadvantaged individual or (b) women or (c) disabled person; who has been socially, economically or educationally disadvantaged by past discriminatory laws and practices”. According to this definition an individual

qualifies to be a PDI based on victimhood to “past discriminatory laws and practises”.

and greatly undermines its ability to move forward.

Relative to the empowerment context, the domain from which the term PDI originates and where it is used, the definition is ambiguous and not constricted. Furthermore the selection of individuals for empowerment just based on one factor – victimhood to past discriminatory practices – is illogical and unrealistic.

We understand that for many of our leaders and elderly citizens, for 30-40 years before 1990, the battle was against apartheid and after independence the task was to redress the aftermaths of apartheid.

A more objective, multi-factor incorporating approach will be helpful. Presently among the victims of the “past discriminatory laws and practices” we find the rich (already empowered), the poor and youths. Under the current definition highincome individuals (the able to afford) and the already empowered become beneficiaries of initiatives aimed at empowering the impoverished and the youth. Because of their connections and their knowhow of the procedures, the rich have a high probability of benefiting, which then tends to defy the objectives of empowerment. The term PDI has been in use since independence, thus “under the banner of PDI” some individuals have been beneficiaries of empowerment initiatives for the past 28 years. Then the question is how long are these individuals going to be beneficiaries? Therefore, how long is an individual considered a PDI? Furthermore, under the present definition, the child of a PDI is also considered a PDI.

Thus their minds are still engrossed in the battle against apartheid; subsequently this mindset is transferred to the youth who then become subscribed to seeing apartheid and white monopoly behind all failures. While we acknowledge the injustices and destructive practices of apartheid, the time for Namibian leaders and the broader society to move forward and embrace a new mindset has come. A new mindset is required that says despite our past, every goal is attainable; a culture that does not empower individuals based on ethnicity or political affiliations; a culture promoting critical thinking, underpinned by meritocracy and productivity; a culture emphasising responsibility and accountability for one's actions and not blaming apartheid for mismanagement of resources, poor educational outcomes and unemployment. It is such a mindset that will allow this nation to confront the present economic emancipation battle. Hofni Unomasa Nguvenjengua is a graduate civil engineer from Unam, and also an associate member of the South African Institute of Civil Engineers (SAICE).+264818760443 and un58479@gmail.com

In the long-term this will concentrate economic resources in the hands of few, perpetuate the status quo and nullify the probable efficacies of empowerment initiatives. The above shows that the term PDI under the current definition is meaningless and inapplicable. Subsequently, it becomes irrelevant and nonsensical to empower individuals based on such a definition. However, it is not only the word PDI which has become irrelevant and meaningless, but also words like struggle kids, war veterans and ancestral land. Twenty-eight years after independence the pre-occupation with thoughts like who are the real PDIs, struggle kids and war veterans entrenches the Namibian society into the past

Hofni Unomasa Nguvenjengua

Construction & Mining Namibia, May 2018

ENERGY

Renewable Energy

is an attractive energy option for mines and industry By: Harald Schütt

n the early days of industrialisation. The meaning of the word “power” was mechanical power: long shafts were installed through a factory and a steam engine turned such shaft throughout the working hours of the factory. When someone wanted to drill a hole, he had to place a belt on a pulley and the other side on the small pulley of his machine, thus transmitting kinetic energy to his drill. When then Mr Siemens, in 1866 developed the electric generator. owners of mines and factories found it more efficient and practical to provide power in the form of electrical energy to each and every workplace. Those days, every factory and mine had its own generator. Then slowly, national grids were built to supply industry and later also private households. The tremendous cost for such generation and distribution infrastructure had to be borne by industry, and utilities had to be protected by regulations and licences, guaranteeing the provider a monopolistic position, without which the tremendous amounts of capital would not have been raised. However, this structure provided quite reliable electricity supply and since the cost was distributed more or less evenly over all users. no one was privileged beyond reasonable levels.

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In Namibia, provision of power was always a big problem, because mines often opened up in regions where the existing infrastructure was not built to provide for the in comparison to hitherto existing users exorbitant loads of such big operations.

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Namibian mines therefore often revert to ancient standards and had to fend for themselves with regard to power supply. One 10

Construction & Mining Namibia, May 2018

prominent and recent example of this is B2Gold. The mine had to install 24 MW of HFO-fuelled generators at considerable cost. New technologies enable them now to generate electricity at much more competitive rates than before. B2Gold is actively involved in constructing a big PV plant, which will provide a cost-advantage merely on fuel savings. Their main problem in this endeavour is the interaction between the big and heavy HFO generators and the erratic nature of sunshine. However, modern equipment such as a sky camera linked to a computer that can predict shading of the solar field and, most importantly, the rapidly decreasing prices for storage make it more and more cost-effective for the mine to go solar. B2Gold will thus maintain its off-grid status, but optimise on the cost of generation without jeopardising security of supply. Ohorongo Cement is another example of cost-effective investment in solar generation capacity. Unlike B2Gold, Ohorongo is gridconnected and has contracted an independent power producer (IPP) to supply them with cheaper electricity than they could obtain from the grid. Here, security of supply is provided by the grid and a lower capacity of diesel generators than in the case of B2Gold, since only essential services need to be kept up when the sun is not shining and the grid connection trips. Other mines like Navachab are in a process of considering its own generating capacity. Rosh Pinah has already issued a tender for a feasibility study. New mines include generation capacity from the outset in their investment plans. Many other industrial enterprises have already installed PV panels on their premises, not only because it is cost-effective but also because in owning their own generation capacity, they

ENERGY

can manage their budgets better and build their own asset base instead of financing infrastructure that belongs to someone else while still being exposed to tariff-increases.

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The irony is that a huge portion of the money paid for electricity isleaving the country right away and does not even benefit the national economy in general because the majority of kWh used in Namibia is imported from neighboring countries. An average of N$2.6 billion is leaving the country every year for importing electricity.

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This money could better be utilised to expand the low-voltage local networks, so that all types and sizes of lPPs could feed their surplus in the grid, supplying their neighbors and smaller local networks. In this way, the money would stay in the country and create wealth for Namibians. In many cases. grid-parity has been achieved. meaning that it is cheaper for mines and other industries to generate power from solar technologies. both thermal and photovoltaic. The rapidly developing storage technology is another gamechanger. Experts reckon that the prices for storage capacity will take the same route as PV panels did in the recent past, so that

a combination of self-owned generation capacity and storage will be the most cost effective solution for a growing number of mines and other industrial operations, both grid-connected and off-grid. The grid is the critical factor in this concert of supply and demand. The national utility as owner of the high-voltage grid as well as REDS and municipalities who are in charge of the lower voltage distribution network are well advised to consider these game-changing developments and play their role in supporting them instead of trying to stick to old guns. That also means they should invest in local, low voltage networks and other equipment to accommodate as much lPP power as possible. while preparing for Namibia to become a net electricity exporting country.

The more power Namibian enterprises and individuals generate within the framework of the Namibian mainstream economy for a fair remuneration, the more money will circulate among Namibians, which finally benefits us all. Harald Schütt is general manager of the Renewable Energy Industry Association of Namibia. This opinion piece expresses his own point of view and not necessarily the view of the association. “This opinion piece was first published in The Namibian Mining Journal 2018”

Finance for affordable land and housing Development Bank of Namibia provides a comprehensive range of flexible, tailored financing products for the construction industry and local authorities. Term loans Installment sales agreements Property development finance Contract (tender) based finance PPP financing arrangements Performance guarantees Visit www.dbn.com.na or call 061 290 8000 for more information. We’re waiting to hear from you.

Expect more.

Construction & Mining Namibia, May 2018

ENERGY

Regional Energy Deficiency, is an Investment Opportunity

he Second Meeting of the Programme Technical Steering Committee (PTSC) of the Project on “Enhancement of a Sustainable Energy Market in Eastern AfricaSouthern Africa-Indian Ocean Region” came to an end Thursday, April 26, 2018 in Swakopmund town, Namibia. Energy experts from COMESA, East African Community (EAC) and South African Development Community( SADC) participated in the two-day meeting. Its objective was to review the implementation of the Project on Enhancement of a Sustainable Regional Energy Market in the Eastern Africa-Southern Africa-Indian Ocean (EASA-IO) Region. Communication experts from the three regional economic communities attended the meeting to close ranks with energy experts on how to publicize the project. The project seeks to address market governance and regulatory related challenges affecting the implementation of energy development projects in the region. It is supported by a Seven Million Euros fund provided under the 11th European Development Fund (EDF) for a period of four years since the signing of the grant delegation agreement with COMESA in May 2017. Chief Executive Officer of the Regional Association of Energy Regulators in Eastern and Southern Africa (RAERESA), Dr. Mohamedain Seif Elnasr, told the delegates that the energy deficiency in the region, provided great opportunities for investments in the sector. “Energy poverty in the region should not only be seen as an investment opportunity

for power generation on a regional basis but also an opportunity to build regional power interconnectors to facilitate trade in power from surplus to deficit regions,” Dr Elnasr said. According to the World Energy Outlook 2014 Factsheet, published by the International Energy Agency related to Sub-Saharan Africa, 950 million people are projected to gain access to electricity in Sub-Saharan Africa by 2040. The report cites urban areas have the largest improvement in the coverage and reliability of centralised electricity supply. Cumulative investment of more than $200 billion will lower the total population without access by 15%: a major step forward, but not far enough, as it still leaves 530 million people in the region, primarily in rural communities, without electricity in 2040. Against this background, Dr Elnasr observed that the energy situation in the region was a firm indication of how much work that needs to be done to ensure it becomes a key enabler and gamechanger to doing business and increasing the productivity of the industries. The main challenges affecting energy sufficiency are: inadequate level and coverage of physical infrastructure due to insufficient low investment in the sector, inefficiency and unreliability of existing energy infrastructure services, increased economic and population growth, the high cost of operating energy infrastructure facilities and the inability to prepare bankable projects. Mr. Graham Ching’ambu, the representative of the European Union Commission said integrating the regional energy market will

Construction & Mining Namibia, May 2018

achieve efficient scale and scope. “From an investment perspective, an integrated regional market will improve returns for both public and private investment,” he said. “It will provide an opportunity to lower the price of power thus lowering the cost of production; rationalize investments in generation leaving room for more investments in transmission and distribution as well as the provision of off grid power.” Mr Ching’ambu who is the Programme Manager in charge of regional Infrastructure projects under the EU support, challenged the participants to look at the program beyond just producing rules and regulations but setting the regional market to deliver more efficient energy. Senior Programme Officer in charge of Energy at the Southern African Development Community Moses Ntlamelle said there was urgent need to link regional States through power Interconnectors in the East Africa Power Pool (EAPP) and Southern African Power Pool (SAPP). This will contribute towards continental integration through energy infrastructure which will realize the Cape-to-Cairo power connectivity and trading along that corridor. Other regional project implementing agencies represented at the meeting were energy regulatory authorities, power pools and centres for renewable energy.

INNOVATION

The Case against rainwater harvesting E quipped with digital media, driven by awareness of climate change, we grow savvy about sustainable solutions. But solving a natural resource issue like water scarcity hinges on one sensitive question– centralisation versus decentralisation?

Faced with escalating shocks like extreme droughts and floods, science urges us to become resilient. Resilience is largely a function of redundancy and diversity: the more diverse a living population, the greater its odds of surviving catastrophic events. Since natural selection has optimised design over geological timescales, humans can learn to replicate it, via biomimicry. So if plants and animals evolved by harvesting rainwater, shouldn’t our species do the same? In essence, over the millennia, we have. Civilisation has only been possible because of the ways a given population has harnessed water and energy to grow food and provide living habitats. Seen through the lens of ecological science, humans have altered natural systems so profoundly that huge populations are now capable of living in cities, billions of us increasingly disconnected from ecosystems. To reconnect us, rainwater harvesting (RWH) is often proposed as a ‘solution’. Let’s put this in context. RWH offers one tool to link people with ecosystems. But as droughts besiege our homes and businesses, surely we can do more than simply place a tank under a roof to catch water through the gutter? A more honest answer takes into account urban scale, time, and place. Harvesting

rainfall is a feel-good thing. Like recycling, it makes a savvy person believe he or she is at least trying to live in a more sustainable way. In truth, the impact of individual RWH is limited to negligible. In arid regions, not much can be harvested. When rain does fall, erratically, or in the “wrong” season, it arrives out of sync with human needs. Closing the water supply and demand gap requires storage, and storage gets complicated. It requires so much real estate as to become expensive, and introduces a new set of hazards such as drowning, providing habitats for mosquito infestation and pathogen proliferation, such as Legionella. These challenges are soluble at the city-scale level, and that is exactly where our focus must be. By using biomimicry as a broad model, we can design connective systems that hold back water as long as possible before discharging storm runoff into the nearest creek. Downpipes can be terminated not in rain barrels for household consumption, but in soak- aways that retain a certain volume of water before allowing it to percolate into the ground. The surplus water is then discharged into a second-tier neighbourhood network of roadside gutters that terminate in a similar but larger structure. In Western Australia these infiltration systems–a kind of inverted pyramid that captures storm water– are found on corner stands of most city blocks. Once again, the design caters for peak flow by allowing a cascade effect of surplus water to meander its way through the system. The overall result is a highly engineered system that is safe, yet

serves both to attenuate peak f lows (thereby reducing extreme risks from flash floods) and recharge aquifers. The latter is particularly useful, if locally appropriate, because in effect it provides storage capacity from the wet season to the dry without occupying valuable real estate above. This solution is possible only if the city planners, and geological contours, allow. New developments in permeable aggregate now make it possible to have water drain through porous, macadam surfaces of a parking lot, into purpose-designed underground storage space. The efficiency of these connective networks for urban rainwater harvesting systems can be complemented–or complicated–by individual efforts. If every family or firm stored rainwater, return flows become radically altered, groundwater recharge diminished and ecological processes negatively impacted. That’s why the planning, direction, coordination, and incentives must come from the city centre, which has the most to gain through encouraging appropriate collective action. The optimal cumulative effect of ‘nature-based solutions’ is enhanced urban resilience for all, with less impact on aquatic ecosystems such as altered flood pulse, reduced freshwater flows to estuarine habitat, and a sustainable city.

Anthony Turton is a professor at the Centre for Environmental Management, University of Free State, Bloemfontein, South Africa

Construction & Mining Namibia, May 2018

LOGISTICS

BRAZILIAN BUSINESS INTERESTED

IN THE NAMIBIAN LOGISTICS SOLUTION

he Brazilian market provides immense opportunities as a trading partner with SADC and the potential exists to utilize Namibia as a hub for a myriad of products. Through regular visits and exhibition at the Intermodal South America, the WBCG has created awareness of the Port and the Walvis Bay corridors. The recent visit to Brazil, gave the WBCG and Namport the opportunity to engage with various stakeholders to further explore opportunities for cargo volumes through Walvis Bay. Meetings were held in different regions to attract interest from Brazilian companies to establish offices, plants and distribution centres in Namibia in order to reach the SADC Market. These meetings culminated in the potential development of Memorandums of Understandings (MoUâ&#x20AC;&#x2122;s) between the WBCG and Brazilian institutions, which will allow for a combined approach to explore the opportunities available between the two markets and for developing the prospect of having a direct call to Walvis Bay. Further interest was expressed in the new container terminal opportunities as well as hinterland connections and potential investment in inland dry ports and depots.

The Namibia Logistics Hub Concept provided further collaboration oportunites on various aspects such as successfull establishing and managing of Free Trade Zones, promoting efficiencies in the logistics sector, trade missions and capacity building opportunities for the Namibian Logistics Sector. The developments on this trip has revealed the potential for cooperation with Brazilian companies to explore business and trade between South American and Southern

African countries. The Namibia Logistics Hub Project, development at the Port of Walvis Bay and overall opportunities in Namibia as a potential distribution hub into Sub Saharan Africa has caught the attention of Brazilian business. The WBCG endeavours to remain steadfast in its search for opportunities between Brazil and Namibia into the Region, in order to ensure the accelarated development of our Logistics sector.

FIRST NAMIBIAN MINED LITH

Construction & Mining Namibia, May 2018

FINANCE

Development Bank loan for Erongo RED

Finance for mass housing and waterfront energy supply

he Development Bank of Namibia (DBN) has provided an additional N$150 million for Erongo RED. The amount is being used to finance additional second phase electricity distribution requirements for the Swakopmund mass housing development, and for the waterfront. Erongo RED previously used N$250 million from DBN to finance its first phase project to upgrade aging distribution infrastructure to Walvis Bay.

will not be able to attract additional enterprises and grow. Speaking about the individual use of the finance, Inkumbi says that distribution of electricity to families and individuals in affordable housing is a basic necessity for socio-economic wellbeing. Viewed in an

Talking about the need for the loan at the signing ceremony that took place on 24 May 2018, DBN Chief Executive Officer, Martin Inkumbi says high quality power supply to the Erongo Region is of national importance.

in addition to being a locale for enterprise. In order to attract commercial investment, Swakopmund, and Erongo RED, have to show demonstrate their commitment to providing enterprise, and investors, with the necessary infrastructure. Inkumbi goes on to say that although the Bank is widely known for financing renewable sources of energy such as Omburu Photovoltaic Park and the Ombepo Wind Farm, the Bank is also committed to financing the infrastructure for traditional sources of energy. Where there is sufficient energy, there is an environment that is conducive for enterprise, as well as for acceptable standards of living, he explains.

He motivates this by explaining that Erongo is currently a major transport and logistics gateway to Namibia by virtue of the port of Walvis Bay. Mining, another major industry, also underscores the importance of the region, and its contribution to the economy. He adds that the region is also a major attraction in terms of tourism, which contributes to the national revenue.

economic light, Swakopmund must be able to attract and retain employees, in order for new enterprises to open and existing enterprises to grow. In this way, the upgrade to the distribution network will have an immediate impact and will secure the future.

He goes on to say that economic activity in the region is dependent on electricity. Without suitable distribution infrastructure, the region

On the topic of the waterfront development, Inkumbi says it has created jobs during its construction phase, as well as permanent jobs,

The combination of infrastructure and enterprise are fields which the Bank actively nurtures with finance, and the Erongo Region is a good example of how finance can stimulate development and economic activity. The Bank has approved loans of more than N$4.6 billion to the Erongo since its inception Inkumbi concludes by urging other regions to approach DBN with plans for infrastructure. The Bank, he says, has the capacity as well as the mandate to provide finance for growth.

HIUM READIED FOR EXPORT

s the first shipment of 30 000 tonnes of lithium ore concentrate is prepared for export from the Port of Walvis Bay destined for China, Namibia is proud to have established itself as a significant producer of lithium concentrate globally.

The lithium ore concentrate was transported from the Desert Lion Energy mine, located 20 km from Karibib, a town in Namibia’s western Erongo Region. Addressing the audience at a celebratory event held at the Port of Walvis Bay in April, CEO and president of Desert Lion Energy, Tim Johnston stated that this is the largest single shipment of lithium concentrate to ever leave the African continent. He added that the delivery of the first shipment of lithium concentrate represents a significant milestone. According to Johnston the product will generate gross revenues of approximately 3.8 million U.S. dollars. The mine is envisaged to have an annual output of about 280 000 tonnes of lithium concentrate, which would make it one of the biggest lithium mines in the world. The first shipment has demonstrated that the production chain is operational from reclaiming, sorting and processing all the way through to delivery of product to our off-take partner at the Port of Walvis Bay.

Namport will facilitate the exportation of the 30,000 tonnes of lithium concentrate every 6 weeks to Mainland China via Walvis Bay Port for the coming months. Trade Ocean Shipping Namibia is contracted by Desert Lion Energy to act as their vessel agent as well as to assist with logistical co-ordination and to manage their landside operations. An opportunity to boost value addition locally exists. Johnston explains that Desert Lion Energy will continue to execute this phase of production, while moving towards the production of higher value products and large-scale mining in the second half of 2018/2019. “In the process, we will create more jobs for Namibians as well as generate funds in revenue, taxes and royalties through our operations” the CEO added. Namport’s Commercial Executive, Immanuel Hanabeb stated that Namport is proud to be associated with this project and the long-term benefits it will bring to the Namibian economy. Currently the major lithium producing areas of the world are Western Australia (for hard rock) and South America (for brine) and much of this ends up in China for further processing into battery grade lithium chemicals.

Construction & Mining Namibia, May 2018

INFRASTRUCTURE

City approves 164

building plans in April A

total of 164 building plans were approved by the City of Windhoek in April. This is a m/m increase of 27.1% from the 129 plans approved in March and follows from two consecutive months of declines in the number of building plans approved. In value terms approvals increased by N$14.1 million to N$96.5 million, representing a 17.1% m/m increase in April. The number of completions for the month of April stood at 231, valued at N$55.5 million. The year-to-date value of approved building plans reached N$526.2 million, 4.1% higher than the comparative period in 2017. On a twelve-month cumulative basis, 1,937 building plans have been approved as at the end of April, an increase of 14.3% y/y. The 12-month cumulative value of plans approved reached approximately N$2.2 billion, an increase of 27.9%. Additions to properties made up 127 out of the total 164 approved building plans recorded in April. This is a 19.8% m/m increase in additions from the 106 additions recorded in March. Year-to-date 470 additions to properties have been approved with a value of N$372 million, rising 35.2% y/y in terms of value. New residential units were the second largest contributor to the number of building plans approved with 36 approvals registered in April, a m/m increase of 90% compared to the 19 residential units approved in March. Year-to-date, 96 new residential units have been approved, 4% less during than the corresponding period in 2017. In value terms, N$41 million worth of residential units were approved in April, 70% more than the N$25 million worth of residential approvals in March. The year-todate value of residential approvals reached N$122 million, 32.6% lower than during the corresponding period in 2017. Only 1 new commercial unit valued at N$8 million was approved in April, bringing the year-to-date number of approvals to 14, worth a total N$32.8 million. On a rolling 12-month perspective the number of commercial and industrial approvals have slowed to 51 units as at April, compared to the 61 approved over the corresponding period a year ago. The 12-month cumulative building plans approved within the last 12 months include a single project worth N$501 million and the average approvals in terms of value for this period was N$56.7 million. Excluding this single large project, approvals from a 12-month cumulative basis decline by almost 34% and indicates the generally low level of investment from the business community. From a 12-month cumulative perspective, 1,937 total building plans have been approved by April, an increase of 14.3% when compared to the corresponding period in 2017. The 12-month cumulative number of approvals has been ticking up since December 2017 and does provide for an optimistic view for approvals to return to above the 2,000-mark, last seen exactly 2 years ago. Consumer and business confidence, as measured by the IJG Business Climate Monitor, fell slightly to 50.8 points in March from 50.9 in February. That it remains above the 50-point mark does signal that an economic turnaround could be on the horizon. The interest rate environment has changed since the turn of the year. Monetary easing was widely expected to spur economic growth in 2018. This expectation dissipated with the market now not pricing in any more rate cuts in South Africa for 2018. What seems more likely at present is a possible rate hiking cycle, driven by recent rand weakness and an increasing oil price. These two inputs will weigh heavily on the SARBâ&#x20AC;&#x2122;s

Construction & Mining Namibia, May 2018

inflation expectations with risks being toward the upside, changing the narrative towards higher interest rates should inflation rise outside of the SARBâ&#x20AC;&#x2122;s target band of 3%-6%. BoN, which has kept its repo rate unchanged and simultaneously adding a 25bps buffer over the SA rate, is likely only to react if the SARB hikes rates beyond BoNâ&#x20AC;&#x2122;s current 6.75% repo rate. This effectively will offer no reprieve to consumers whom have been the biggest users of credit.

MINIMUM WAGE PAYABLE IN CONSTRUCTION SECTOR NOW PROMULGATED

he Collective Agreement that determines the minimum wage payable and the minimum employment conditions in Namibia’s construction sector, which had been signed by the Construction Industries Federation of Namibia (CIF) and the Metal and Allied Namibian Workers Union (MANWU) on 16 November 2017, has been promulgated on 31 March 2018 as per Government Notice No. 65 published in Government Gazette No. 6567 of 11 April 2018. The Collective Agreement therefore came into effect on 31 March 2018, i.e. the date of promulgation.

With the promulgation of the Collective Agreement, the agreed minimum wage payable and the minimum employment conditions is extended by the Minister of Labour, Industrial Relations and Employment Creation, Hon. Mr Erkki Nghimtina, to the entire construction sector, irrespective of the size of business and irrespective of who owns the business. The agreed increase of 5.6% on minimum wage payable therefore will have become applicable on 31 March 2018. The new minimum wage payable is therefore N$16.94. Bärbel Kirchner, consulting general manager of the CIF said: “It is important that there is no confusion. An increase of 5.6% on minimum wage payable is only relevant for certain selected positions, as per the Collective Agreement. It is also only includes an increase of the minimum wages that would need to be paid. “’So, if an employer does not yet pay the minimum wage for selected positions, then they would need to increase the wage to ensure it reaches the minimum wage payable. If, however, the employer is already paying the minimum wage payable, then no further increase is required. This increase of the minimum wage payable therefore does not mean that it is an automatic increase for all. Provided the employer pays the minimum wage payable, any additional increase is totally discretionary, unless the employer had agreed to other arrangements, and that is ultimately largely determined by market forces”. The Collective Agreement between the two parties, CIF and MANWU, was concluded after arduous negotiations which included the threat of looming industrial action. The CIF had emphasised that the construction sector had been hit severely by the economic downturn and since September 2016, has seen large-scale retrenchment in the entire supply chain. The CIF maintained the position that instead of hiking up the increase of only a few remaining employees, that one needed to make every effort to keep as many persons employed as possible. Bärbel Kirchner, consulting general manager of the CIF said: “Sadly we have not seen any recovery in the construction sector since 2016. More businesses are being affected and more people are being retrenched. It is dire situation for our industry – businesses simply have no scope to further continue increasing labour costs without the generation of any revenue”. “We are aware that an increase of minimum wage payable unfortunately still means that more persons will be retrenched if there are no immediate construction or building projects being advertised – our industry needs work to survive. Our industry needs work to build our future”.

Construction & Mining Namibia, May 2018

INFRASTRUCTURE

Wernhil Park introduces Section 1 of Phase 4

xpected to be fully completed by mid2019, the construction of Wernhil Park Phase 4, will according to Managing Director of Broll Namibia, Marco Wenk ensure Wernhil Park will grow to offer approximately 55,000m2 of prime retail, allowing it to compete head-on with other regional malls located in Windhoek’s ever expanding retail landscape. At a cost of over N$450 million, Wernhil Park Phase 4 will be constructed in two sections with the first section scheduled to commence trade by 1 June 2018. On Thursday, 17 May 2018, Broll Namibia a subsidiary of the Ohlthaver & List (O&L) Group – and O&L hosted the Mayor of the City of Windhoek, Muesee Kazapua, members of Council of the City of Windhoek, City of Windhoek Strategic Executives and other stakeholders for a site tour of the nearly completed first section of Phase 4 as well as providing an update on the remainder of the development. O&L, through Broll Namibia has so far spent at least N$160 million on the construction of Wernhil Park Phase 4, and according to Wenk, Section 1 will host at least 9 new shops including: Dis-Chem; Soda Bloc; Exact; Due South; Markham; Sportscene; Donna; Fabiani, and @Home. Wenk: “We are extremely happy with the progress of the entire development and thank all crucial stakeholders as well as the development team for their efforts and perseverance in getting us to this point. We are excited to present our valued shoppers and

tenants with the first section of Phase 4 when trade commences on the 1st of June 2018. Our tenants and shoppers’ continued support and patience during the construction period is sincerely appreciated, and we can assure you that the unfortunate inconvenience that comes with a development of this magnitude will be worth it in the end.” The first section of the new phase involved the conversion of the upper parking deck located on the southern side of Wernhil Park, into prime retail shops. Broll Namibia Public Relations & Marketing Manager, Sylvia Rusch says section two will entail the bulk of the development (consisting of retail, parking and an additional taxi rank facility) on the site where Cashbuild and Fruit & Veg used to be, as well as the bridge link currently under construction over Fidel Castro Street, connecting Sections 1 and 2. Rusch: “The extension to Wernhil Park will enhance the overall shopping experience on offer by not only providing more space, thus reducing congestion within the mall, but it will further ensure that the Centre’s variety and choice from a retailer mix perspective, and convenience in terms of parking, will be significantly improved for the CBD shopper. In addition to this, a second taxi rank (public transport facility), a fully-fledged medical facility and overall easier pedestrian access into the mall from particularly the southern

Construction & Mining Namibia, May 2018

part of the Centre will add to the convenience factor of the future Wernhil Park.” Kazapua during the walk-through of section 1 expressed his appreciation for the investment into the Central Business District (CBD). Kazapua: “I am impressed with what I see and have to commend the project team and Broll Namibia for meeting the initial development timeline.. This is certainly a great contribution to the initiatives supported by the City of Windhoek to further improve and add to Windhoek’s CBD, which has over the years been impacted by decentralization.” Managing Director of SIP Project Managers (Namibia), and Project Manager of Wernhil Park Phase 4, Jacky Jacobs: “The official site handover to the main contractor, Namibia Construction took place on the 3rd of July 2017 and a mere eleven months later, the 1st section of the development will be ready for trade. Although this is an extremely challenging project, progress on the balance of the development is going well and we look forward to meeting the completion deadline of the whole development by 1 June 2019.” Since it first opened its doors twenty-eight (28) years ago, Wernhil Park has seen several stages of growth and development. This, according to Wenk falls in line with Broll Namibia’s commitment to enhance and keep the shopping experience on par with international standards. The entire new phase of Wernhil Park is expected to be complete by June 2019.

CONSTRUCTION

Ground-breaking for N$136 Million Vivo house

ivo Energy Namibia, the company that markets and distributes Shell branded fuels and lubricants and Hangala Properties (Pty) Ltd recently held a ground-breaking ceremony for the construction of the Vivo House.

Johan Grobbelaar, Vivo Energy Namibia’s Managing Director, commended the Hangala Group for the excellent working relations between the parties and thanked the teams who have brought the project to its current stage, so that construction could commence.

With construction scheduled to be completed in 18 months, Vivo House will be Vivo Energy Namibia and the Hangala Group’s new head office. The building, which will have office space, residential units and ample parking space, requires an investment of N$136 million. A total of 300 jobs will be created during construction.

Alfreda Stramis, Chief Financial Officer of Hangala Group and Managing Director of Hangala Capital, speaking on behalf of Dr Leake Hangala, Executive Chairman of the Hangala Group, said: “Hangala Group is a diversified company with interest in financial services, agribusiness and property development. Our slogan is ‘opportunities in partnerships’. We believe in the power of partnership and this project is a classic example of what a true partnership and empowerment can do.”

Speaking at the event, Vivo Energy’s Executive Vice President for Eastern and Southern Africa, David Mureithi explaining Vivo Energy’s ambition in Namibia said it was to take the strong Shell brand, and continue to strengthen it, adding more investment to grow in Namibia and other markets where the company operates. Mureithi added: “We have continued to grow across the continent, starting with around 1200 stations six years ago, to over 1800 at the end of 2017. In Namibia, over the last five years, we have grown from 34 service stations, to 56 today. This is a demonstration of our commitment to invest.” “In that spirit it became clear to us that we do not have a space we can call our own home in Namibia. This project gives us a true home,” Mureithi said.

Hangala Properties (Pty) Ltd, a vehicle for property development for Hangala Group, which is Vivo Energy’s 50-50 joint-venture partner in Havi Properties (Pty) Ltd. Havi Properties (Pty) Ltd. was incorporated in 2016, with the intent of developing a sectional scheme comprising of office units for commercial use and residential units. Once the development is completed, Havi Properties (Pty) Ltd will sell the residential units and lease a portion of the commercial units. Stramis concluded: “Havi Properties has assembled a team of competent and experienced professionals. We have no doubt that given the capabilities and experience of the team, we will at the end have a great product which will add value to the scenery and landscape of Windhoek.”

Construction & Mining Namibia, May 2018

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Construction & Mining Namibia, May 2018