MINING
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MARCVENTURES HOLDINGS INCY Making A Difference
GUYANA GOLDFIELDS Setting The Gold Standard
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EDITOR’S NOTE
M
ining has been a part of our lives for as long as civilisation itself, predating even agriculture the industry that is said to have started it all. In fact, long before we had cities or what we would now consider a ‘civilised society’, we were industrious enough to dig deep in the pursuit of natural treasures. The practise of mining goes back as far as Neolithic humanity, at 4000–3000 BC, who worked together to create flint shafts that still stand in some countries today. Like Neolithic miners and their quest for flint, or the ancient empires and their hunger for metals and precious stones, our reliance on what lies inside our planet is at the core of our industry. Through the ages, we have experimented and learnt how to manipulate what we find, discovering more and more uses for what the earth yields. Even in recent years, whilst mining has faced one of its decennial dips and increasing investment has been paid into alternative technologies for energy and manufacturing, our thoughts and pockets still return to the rock. This industry has been with us since the beginning, and from the rising optimism and investment taking off within the sector, it is not on its way out in a hurry. Endeavour Mining & Exploration follows influential companies in mining, oil and gas and exploration, keeping abreast with the peaks and troughs of this sector that, after all this time, still pulls the political and economic strings of our world. Through the challenges and successes, there is innovation and daring investment happening across this sector; in our quarterly issue, we will examine not only the operations and research taking place in these stories, but the employees and company leaders behind them. Alice Instone-Brewer
Copyright © Littlegate Publishing Ltd 2019
Endeavour Magazine | 3
CONTENTS
FEATURES
P W Group Nigeria 4 | Endeavour Magazine
6
A Dazzling Business Model Lucara Botswana (Pty) Ltd
16
A Fast-Track To Gold Tietto Minerals Limited
22
Making A Difference Marcventures Holdings Inc
30
Always Digging Deeper P W Group Nigeria
38
Lasting Treasure Teranga Gold Corporation
46
Setting The Gold Standard Guyana Goldfields
54
The Golden Lining Auryn Resources
63
A Gem Of An Idea Korite Ammolite
68
The Next Big Thing In Canadian Mining Alderon Iron Ore Corp
74
Dedication To The Core Tanzania Chamber Of Minerals and Energy
80
Building Together Baitali Group
Tietto Minerals Limited
Tanzania Chamber
Auryn Resources Endeavour Magazine | 5
LUCARA BOTSWANA (PTY) LTD WWW.LUCARADIAMOND.COM // 001 604 689 7842
A DAZZLING BUSINESS MODEL To be a premier operation in a luxury industry takes something more than knowledge and determination and as Lucara proves, that je ne sais quoi is rarer than the world’s finest diamonds. WRITTEN BY AMY BUXTON
LUCARA BOTSWANA (PTY) LTD Lucara Diamond Corp. is a mining operation with a difference in
that it seeks to locate, harvest and sell only the very best resources possible. This is no mere lip service, as while less ambitious operations might be happy to offer a variety of stones, Lucara exclusively mines for Type IIA examples and not small ones at that, “Lucara’s 100 percent owned Karowe diamond Mine, located in Botswana, has been in production since 2012 and is one of worlds’ foremost producers of large, Type IIA diamonds in excess of 10.8 carats, including the historic 1,109 carat Lesedi La Rona (second largest gem diamond ever recovered) and the 813 carat Constellation (sold for a record US$63.1 million).”
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N
ow that you’re sat up and paying attention, it’s time to take a closer look at how a diamond mining operation becomes a global industry leader, which is something that Naseem Lahri,
Managing Director, was able to explain.
A CUT ABOVE THE REST Asking Naseem what it is that really sets Lucara apart from its competitors, she was happy to reveal that, “Firstly, it’s our commitment to invest in technology. We are pioneers in the way that we’ve done things in that we are always
Karowe Mine Started Here (AK 6)
looking for new innovations that will improve our efficiency and the safety of our team. From purchasing state of the art machines for recovering diamonds through to investing in a new sales platform, we are always at the very forefront of things. The other thing that sets us apart is that the management team is willing to take some calculated risks. We aren’t afraid to get on with some tough decision making.” It’s no secret that mining is an industry that has come on in leaps and bounds, in terms of safety and responsible exploration techniques, in recent years, but Lucara has been ahead of the game from day one. Instead of having to play catch up with modern legislation and improved operational methodologies, Lucara has been working in accordance with international best practices
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8 | Endeavour Magazine
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When working alongside the most precious stones in the world, it must be easy to see everything in terms of monetary value, but
CARVING ITS OWN NICHE Naturally, while discussing Lucara with Naseem, Endeavour Magazine wanted to know how the market is currently performing. Given the luxurious nature of the resources being mined, it wouldn’t come as a surprise if there were periods of turbulence, but Lucara appears to have a built-in life jacket for such rough spells, “Questions about the buoyancy of the diamond industry can be hard to answer, as we are the exception to the rule, as opposed to being the rule itself. Some competitors might be struggling, but we aren’t, thanks to how niche our operation has always been. We exclusively source Type IIA diamonds, which make up just 1-2% of all excavated stones, making us a premier provider with a bank of dedicated clients. The fact that we constantly invest in new technology has also helped us to navigate ourselves away from standard industry difficulties.” Though on paper, choosing to create a niche from day one could have been considered risky, it was obviously one of the ‘calculated risks’ that Naseem acknowledges has made for a courageous management team that produces results. Why settle for average, when you can be aspirational?
THE MOST PRICELESS ASSETS Naseem had a surprise up her sleeve, “Our staff are the most valuable assets and resources that Lucara has. We recognise this every day and seek to demonstrate it through continuous professional development, internal promotions and optimised safety procedures. We want to develop long-term team members, so we look for people that share our values, both at home and at work and we always look to promote from within, before we look at outside talent.” There’s a real sense of Lucara being a family away from home, for everyone that works for the company and just like a real family, Naseem explains that people can always come home, “When our GM left us, we were happy for him to go and stretch his wings and experience opportunities elsewhere, but we realised that he was the right person for us, bar none. We approached him to come back, which he did, and we’ve been working perfectly ever since.” When was the last time that you heard about a company putting humility and the good of the entire operation ahead of pride? While so many organisations would not choose to invite a former employee back, Lucara simply followed its principles of
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LUCARA BOTSWANA (PTY) LTD always wanting the best. Unusual it might be, but this decision is just one more example of the way that Lucara is always working just that little bit differently to everyone else and let’s face it; the results really speak for themselves, so it must be an approach that works.
A BRIGHT FUTURE With a unique business model in place, a contingent of appreciated and well rewarded staff, a reputation that competitors would kill for and performance levels that nobody can rival, Lucara is now looking ahead to 2019 with vigour and positivity: “Obviously we are looking to further develop Clara, our next generation sales platform that will make purchasing a far simpler process, but we are also devoting time to mining feasibility studies. We want to extend our local reach, so potential is being assessed and then there’s new technology. Obviously, we can’t predict what will be created in the next year, but I can tell you that our eyes are very much peeled, to ensure that we are ready to invest in anything relevant to us.” Lucara’s 2019 looks set to be filled with clarity and promise and who could ask for anything more?
Lazenby Holdings is based in Botswana and proudly provides processing, maintenance and project expertise for Lucara Botswana at the prestigeous Karowe diamond mine. A motivated leadership team with a highly skilled workforce (550 individuals and a 98% citizen employment ratio), deliver production excellence to our valued client. Safety, Quality and Service Excellence are the paramount elements within the Lazenby business model. Comprehensive controls and integrated computerised systems ensure cost effective and highly efficient techniques for the management, control and ongoing optimization of the Physical Address: Unit 28 Kgale Mews LucaraPlot Botswana processing operation. 113 Gaborone International Finance Park
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14 | Endeavour Magazine
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Endeavour Magazine | 15
TIETTO MINERALS LIMITED WWW.TIETTO.COM // 0061 8 9486 4036
A FAST-TRACK TO GOLD Tietto Minerals is a junior exploration company operating out of West Africa that bills itself as focusing on “fast-tracking the development of gold”. We spoke with Caigen Wang, company Founder and Managing Director, to see how they attempt to achieve this goal. WRITTEN BY ALICE INSTONE-BREWER
TIETTO MINERALS LIMITED
Tietto Minerals was founded in 2010, when Australia-based
Caigen decided to turn his academic involvement with the mining sector into the practical kind. The junior exploration company was originally intended to operate in Western Australia, where Caigen had working in the sector for ten years, following a career in education where he specialised in mining technology.
F
amiliar with the Australian mining world both through
“We really enjoy working in Côte d’Ivoire. They have very
experience and study, Caigen assessed his options, but
good infrastructure and logistical supplies. Finding spare parts
eventually concluded that the industry was bloated, and that
for machinery can sometimes be a challenge, but the country’s
it was too dominated by established names to provide fruitful
Ministry of Mines is very efficient, so we really don’t encounter
opportunities for his new company. So, he turned his attention to
many challenges.” It is partly these working conditions, but largely
the rest of the globe, and soon settled on West Africa. If one was
the promising explorative data, that has prompted Tietto to put
willing to invest the time and the funds, Caigen saw the potential
most of its eggs in the Côte d’Ivoire basket. That said, their projects
in West Africa to yield far greater success; it would be more of a
in Liberia are also starting to explore in earnest.
challenge, but the rewards would be a less glutted market to operate within, and the space to find promising prospects to explore.
“At this stage, we are focusing on resource growth, so will not be rushing towards a mine development at this stage. However, we
Nine years later, Caigen is continuing to apply what he learnt
have a major resource update this month, and another at the end
in Australia, but has also become well-acquainted with his new
of the year. After these, we will then begin to look properly at the
environment. The company started out with a licence in Liberia in
mine development side of operations.”
2010; it now has two projects in the Republic of Liberia, in Dube
“I think it’s going to be a slow growth moving forwards. However,
South and Cestos, and it has also expanded into Côte d’Ivoire.
we’re expecting the transition from exploration to production to be
Despite not entering Côte d’Ivoire until 2012, two years after their
a smooth transition, as we have the support of the community, and
first project began, this has become the most advanced, and is now
of the government as well..”
treated as Tietto’s main focus.
At their Côte d’Ivoire project, Tietto currently employs between
This jewel of their portfolio is still only 5% explored, but they
70-120 people, with the addition of many part-time locals. In their
have high hopes for its prospects. Multiple sections of gold veins
Liberia projects, as well, a full-time team of both local and expat
have been exposed by artisanal mining. All illegal miners have now
employees in complimented by part-time local labourers. In all
been removed from the area by the government, and the company
three areas, this allows Tietto to give back to the local economies in
has set out 11 key areas that it plans to drill. Of these, it has so far
a direct way, as well as helping to address the issue of the artisanal
drilled four. “We are currently working towards a resource update
mining that its operations have replaced. In fact, expats are only
at the end of this month,” Caigen informs us, “And we are expecting
hired in specific cases, where a particular skill cannot be found
to have a mature increase of this resource.”
locally, but the company makes it a priority to hire locally as much
18 | Endeavour Magazine
TIETTO MINERALS LIMITED as is possible. “Working in the community is our main principle.
As well as being careful not the disrupt the local people. Tietto is
We also work to bring awareness of our operations to these
careful not to disrupt the local environment. The two are essentially
communities, to make sure they understand what we are doing.
one and the same, because any damage to the environment has a
So, that cooperation has been quite successful.” This open back
direct impact on the people living in and around it, and in many
and forth has allowed Tietto to navigate local feeling and avoid
cases, relying on it. Currently, there is little fallout to watch out
causing a clash with or damage to the community, which is always
for, but Tietto is still being mindful of it: “At this stage, as we are
an essential focus and concern for a mining company, whether
still in the exploration stage, our impact to the environment is at a
explorational or operational.
minimum, particularly as in West Africa, you have so much rainfall
Tietto’s exceptions to hiring locally are reserved for roles such
that if you cut some grass, say, it is soon back to normal.”
as technical experts, who are brought it to work closely with these
“In Côte d’Ivoire, we did need to cut down a few trees to make
local managers. Both technical knowledge and an understanding
an access road, but we did this is a careful manner. We have experts
of the land and community are essential for overseeing projects
working on an assessment of the cost of the tree – how much it
such as these, and so these two groups are asked to work together
would cost to replace – so that we could prepare the funds and
and combine this knowledge. Sometimes, sourcing technical
deliver them through government officials to the farmers and land
experts has involved Tietto taking on students, offering them the
owners who were affected.” This carefully assessment, combined
opportunity to put their talents into action, whilst providing the
with an open communication with said land owners, has proven
company with the talents it needs. These students assist in the
successful in allowing Tietto to stay accountable for any impact
implementation of the most modern exploration technologies,
they make, and to make this minimal impact whilst maintaining a
combining geophysics and geochemistry. However, this is only a
positive relationship with the community.
handful of staff, compared to the many locals that Tietto employ, from labourers to team supervisors well-versed in the land.
20 | Endeavour Magazine
From working as a university lecturer on the topic to working his way through the sector itself, Caigen feels that the only successful
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MARCVENTURES HOLDINGS INC WWW.MARCVENTURESHOLDINGS.COM // 0063 2 831 4479
MAKING A DIFFERENCE Marcventures Holdings Inc. is one of the leaders in nickel ore production in the Philippines, and even more excitingly, it is sat on another resource that will give it an exclusive edge in the country. We spoke with Isidro Alcantara, CEO and President of Marcventures Holdings, to find out what they have building behind the scenes. WRITTEN BY ALICE INSTONE-BREWER
MARCVENTURES HOLDINGS INC
In the Philippines, nickel is at a low point in the market,
but as our technology continues to progress, it is predicted to rise. Not only that, but Marcventures have an ace up their sleeve that puts them ahead of their local competitors. We were keen to speak with Isidro Alcantara, their CEO, on the cause for the current enthusiasm, but first, we delved into the challenges that the Philippines’ nickel is currently facing.
“W
e are in what you’d call a state of flux. As you know,
industry, with only one Indonesia as a real competitor. However,
we are the second biggest nickel exporter after
they do hold a strong advantage, as Isidro explained:
Indonesia. We are in a down cycle in the market at the
“We are at two distinct disadvantages. First, they have more
moment, which is exacerbated by the slowdown in China, which is
high-grade nickel than us, so they can achieve better yields. Second,
our market. If you look at the LME, the price levels we’re seeing
they have coal, so their power cost is much lower than ours. Our
should be at least 25% higher, but the LME is calculated based on
best bet for competing is to find new technologies that lower our
pure nickel inventory, and China is a direct raw ore market. We’re
operating costs.”
just expecting and hoping that the prices rebound by 2019 – that’s
Not ones to accept second place, Marcventures are looking
everybody’s prediction – so we are looking forward to better times
into just that. “I’ve had discussions with interested parties four
then.”
times in the last 18 months, and I’ve been to Europe to look at
As well as nickel prices being at a low point, mining is in a transition period in Indonesia. “The former secretary, Gina Lopez,
their technologies.” The companies are still in the process of signing MOUs, but the changes are certainly in the works.
wanted to stop mining. The new secretary seems measured and
A connected and even bigger change for the company is the
fair, but there are stricter regulations coming in.” Marcventures
possibility of expanding their operations into nickel processing.
are not concerned about stricter regulations, but they, and other
Currently, they export raw ore, but processing would open up Japan
mines, have had to suspend operations whilst their facilities were
and other nearby Asian countries as viable markets, and would
audited. 24 out of 27 were found to already be at spec for the
also allow Marcventures to better blend their high-grade nickel
new rules, leaving minimum impact on Marcventures, but it is still a
with their low-grade nickel to bring it to marketable grades, thus
bump for them and the industry at large.
increasing their profits. To do so, they require a higher tonnage, and
“There’s a need to support the industry, understand the
so have acquired extra mines to make up the difference.
industry, and I think we can be a major driver for mining and the
In the meantime, lower market prices for nickel have prompted
economy. In the 70s, mining and agriculture were the drivers of the
Marcventures to slow down their operations and to be more
industry. There’s no reason why we can’t go back to that position
selective in what they mine: “We’re concentrating more on the
in the economy. Implement strict laws – we have no problem with
higher grade. We’re allowed to mine 5 million tonnes a year, but
that – but with support, can you the growth we could achieve in the
last year we only did 2.5, and as the prices are lower this year, we’re
Philippines? 10% of Canada’s GDP comes from mining. In Australia,
only looking at 1.5 million. We’ll make more money from 1.5 million
I think it’s even more than 10%. Imagine the potential if we could
tonnes than 3 million that may include lower-grade ore.”
even bring ourselves up to 5% in the Philippines?”
However, Isidro’s team are sitting on something that will
Whilst only a small percent of the Philippines’ GDP may be
change the game for them far more dramatically than a refinery:
reflected by mining, the country is making a strong impact on the
bauxite. Marcventures own 100% of the known bauxite mines
24 | Endeavour Magazine
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MARCVENTURES HOLDINGS INC in the Philippines, meaning that they own 100% of the country’s
Isidro isn’t actually a miner by trade, only having entered the
potential for aluminium. With demand for aluminium set to rise, it’s
industry five years ago, but he speaks about it with enthusiasm. He
no surprise that Isidro is feeling confident: “As you know, aluminium
was actually a banker for 35 years, Executive VP of the third biggest
is being termed the metal of the future. If the number of electric
bank in the country, and later the President and CEO of another.
cars increases, the increased consumption of the batteries will have
He retired at 50, but came back into employment after a friend
two initial effects: it will increase a demand for nickel, and there is
convinced him to get off the bench and try his hand at managing
discussion over replacing the steel cladding with aluminium, as it is
a mining company. CEO and President of Marcventures Holding,
a third of the weight and doesn’t corrode.” Aluminium is also using
he does not oversee the operation of the mines themselves, but
increasingly in the creation of cars themselves, whether electric
he oversees the business sense behind him. “I was the one who
or fuel driven, and it is a metal that is in high demand from the
led the acquisition of this mine, and the other mines. ‘Let’s do the
defence industry, given its long-lasting and light-weight nature.
deals!’. That was my business model – I’m a banker! I put in a little
“I guess there’s a reason President Trump wants to revive the
money, I have skin in the game – my wife is not particularly happy
aluminium industry in America! I’m excited, because we have
about it, but it’s kept me active. If you’re not doing anything, they
the only two mines here. I believe we have 160 million metric
say you die early.”
tonnes, of which about 74 to 80 million tonnes in minable.”
Even as a banker, Isidro was interested in heavy industry, and
Marcventures already have their permits in place to pursue their
he’s continued to get stuck in since his return to business. “I’ve
bauxite resource, and will soon come to an end of their mine
tried to learn as much as I can. I was the kind of guy who, even
planning and design phase, as well as road alignment and similar
when I was an EVP, would sit in on factories and operations – I like
logistical arrangements. Soon, they will begin to build. They predict
to learn! So, now I can pose as if I’m a miner, but I’m not a miner. I
completion in only 18 months, and aim to be shipping bauxite ore as
even sleep in the mines once in a while. I’m 64, but I love getting
soon as 2020.
my hands wet.”
Marcventures Causeway 26 | Endeavour Magazine
This hands-on approach to learning about the industry is, to
disturb about 25% of the total land area that we are licensed to do,
Isidro, not only good fun, but a key part of successful leadership:
and we take care of the roads, we ensure control of gas, and most
“I think you need to learn what you are CEO of, because you must
important, replanting.”
earn the respect of your team. You really have to care not just about
However, simply restoring the environment isn’t enough for
the profits, but the people and their advancement. That will show,
Marcventures – they want to leave an area in not only restored
and they will get them behind you.” As well as offering constant
condition, but improved condition. “You have to provide a livelihood.
training to his staff, Isidro supports them when they move on to
There was nothing in these areas before mining, we came along and
key roles in other companies, and he prides himself on being a good
their situation has improved, but when we leave, there is nothing
mentor to those in his team.
again. Sometimes, that’s the beef I have with anti-mining activists.
As well as caring for his own staff, Isidro holds the wellbeing of
Some of these people have grown up in rich villages and they’ve
those in the communities around his mines in high regard. In fact,
never seen real poverty. They don’t know what we can do for these
he is passionate about the good work that Marcventures is able
people.”
to do in these communities, and it is keen for the wider world to
As a part of this effort to provide incomes after they leave,
understand the hand that mining can have in remote areas such
Marcventures have proposed a programme in which re-planting
as these. First of all, they are conscious of the environment and
includes the introduction of bamboo to new areas: “Bamboo is a
their impact on it: “We have an officer dedicated to looking at the
$6-8 billion industry in the world. It is used for products ranging
environment. We always check against regulations, and we like
from chop sticks to hardwood flooring, which is now more
to go beyond that. Nickel is a mining type where one can achieve
expensive in North America than cherry and oak. It has 100-year
progressive re-habitation, because we only dig to 25 meters at
life, it is easy to care for, it emits 35% more oxygen, and can really
most, vs gold and copper where your pit can be 200, 300 meters.
elevate an area’s income. The government agencies in charge really
We disturb the earth – there’s no doubt about that – but we only
want to make it a nation-wide effort.”
Safety first at Marcventures Endeavour Magazine | 27
MARCVENTURES HOLDINGS INC On top of serving as a catalyst for this programme, the
However, given concerns over the environmental impact of these
company has also improved the lives of these communities in other
companies, the positive impact they make is easily overlooked, with
staggering ways. “When women gave birth, it was touch and go
big industry easy to perceive as a black-and-white ‘bad guy’.
whether the child would survive. We have put up a full-time clinic
“Our main fault, if at all, is that we were content doing our
with a midwife. There was no school. We now have a secondary
business, making money, and not putting information out into
school. The LGUs provided the budget for teachers, but we put up
he public. We have been demonised – especially by anti-mining
the school.” They also provide scholarships that have sent many
groups. We now have an aggression information campaign, so
young people from these areas to college. Education, more than
we’re starting to get this stuff out there. I think a lack of information
anything else, can change the fortunes of not only individuals, but
and understanding breeds fear, and that is what has driven the
their families, and the entire area they come from. Isidro shared a
polarisation.”
moving account of one such person they have helped:
Making this area of their operations known, and sitting at
“I got a letter from a young girl who we had sent to culinary
a turning point for their operations, it’s a time of rebirth for
school. Now, she works as an assistant chef in the Middle East.
Marcventures. Come 2020, they should not only be trading in
She wrote to me and said she was given the chance because of the
a new wave for nickel, but will be embracing a burgeoning new
scholarship, and the last line is what breaks your heart, because she
market in aluminium. Hopefully, on top of all this, they will also
said, “Now my family can get a chance to get out of poverty.”
be better known for the good works they are carrying out in the
This incredible stories are not exclusive to Marcventures;
areas they mine – an awareness that will hopefully spread to the
schools, clinics and improved agriculture have been the legacy of
perception of other mining companies and similar industries. With
many mining companies operating around the world. As we see at
more awareness of both sides of that dialogue, perhaps the world
Endeavour every day, the positive impact of industry and the level
can move forwards together to find approaches to industry that are
of input the private sector puts into charitable works is staggering.
beneficial to everyone.
Waters are kept clean for the community people to enjoy 28 | Endeavour Magazine
Mangrove planting
P W GROUP NIGERIA WWW.PWLIMITED.COM // 234 709 8121450
ALWAYS DIGGING DEEPER One of the premier engineering partners in Africa, PW Nigeria Ltd came from humble beginnings and rose to a prominent mining industry position through good old-fashioned grit, determination and inspired market analysis. Endeavour Magazine spoke with Martin O’Boyle, Plant Manager, to find out more about the company’s meteoric rise to fame. WRITTEN BY AMY BUXTON
P W GROUP NIGERIA
We wanted to start at the very beginning with PW
Nigeria Ltd (PWN), by taking a look at exactly what the company seeks to do on a day-to-day basis. However, having dug deep into the activities carried out by this expansive and forward-thinking operation, it might be easier to talk about what it doesn’t do, as the specialisms proudly offered by the PWN team are as seemingly endless as the client base that requires them.
A
dequately positioned to offer a wealth of services, including mining, earthmoving, significant road, bridge and airport infrastructure, construction, design and logistics, PWN
doesn’t so much have many strings to its bow as an arsenal of archers; “PW Nigeria Ltd is at the forefront in developing Africa’s roads, bridges and other civil infrastructure. In partnership with government and multi-national companies, we are active in construction, but also in making available the continent’s rich natural resources. We are a responsible company, as well as a dynamic one. We apply sound environmental standards to all our projects. “PW Nigeria Ltd provides jobs for more than 5,000 people on the continent and brings a new dimension to civil engineering in this land of endless opportunity and potential. Since 2000 we have moved more than 50 million tonnes of earth and rock during mining and road works operations, built more than 2,000 kilometres of highway and installed almost 100 kilometres of underwater cable in swamps and at sea.” Martin O’Boyle went on to say that, “PW Nigeria is one of the largest civil engineering, construction and mining contractors in West Africa, with over 40 years’ experience in several countries. As part of the PW Group, it was involved in major gold projects including the Obuasi, Teberebie, 32 | Endeavour Magazine
Obotan, and Wassa mines in Ghana, Syama mine in Mali, the Youga mine in Burkina Faso and the North Mara mine in Tanzania.” Impressive credentials, we think you’ll agree, but how and why was the company started? Now that is an interesting tale. You might not necessarily think that Africa and Ireland are naturally connected, particularly in terms of engineering developments, but all it took was one ambitious and talented mind to join a few dots and suddenly, the landscape of civil engineering was altered forever. Founded in 1948 as H&D Flinn Ltd by the late Mr. Huge Flinn, the company was rebranded as Public Works Ltd in 1963. The company became one of the largest and most respected civil engineering operations in Ireland during the 1970s, which offered great scope for growth and development if Flinn seized the potential in front of him. He not only dared to dream, he strived to turn potential into promise, which resulted in PW Nigeria Ltd being formally set up in 1974, thanks to the backing of a melting pot of investors from both Nigeria and Ireland. Today, PW Nigeria Ltd is one of the largest contracting operations in the country and has a reputation to match, thanks to being known for both the quality of workmanship provided and the levels of professionalism maintained throughout every contract. This is one of many reasons why PWN’s client base is exceptionally diverse and sizeable.
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P W GROUP NIGERIA “PW Nigeria Ltd has a wide range of valuable clients. On the
It’s becoming increasing rare to find longstanding family-owned
governmental side these include the Federal Ministry of Works
companies that have remained true to the ethoses of the founding
and Housing, the Federal Aviation Authority of Nigeria, FERMA,
fathers, but PW Nigeria Ltd has. Perhaps that’s why there is an
the Federal Ministry of Water Resources, the Federal Capital
undercurrent of social responsibility and employee consideration
Development Authority and the Nigerian Ports Authority. At the
running through everything that that company does:
State level, we have worked extensively with the Ministries of
“The company has always had a very strong policy of substantial
Kaduna, Plateau, Nasarawa, Taraba, Adamawa, Enugu, Benue, Ogun
re-investment in Nigeria. It has an extensive and modern fleet of
and Lagos. We have also worked with a long and distinguished
construction equipment and a highly trained and dedicated staff. It
list of private clients such as Chevron and Shell in the oil industry
is highly committed to the continued development of Nigeria and
and practically every major bank in Nigeria, for private property
its aim of being one of the foremost and leading countries not just
infrastructure development.”
in Africa, but the world.”
With a heritage dating back almost 70 years, a reputation
O’Boyle expended staff stewardship and talked briefly about the
for being the best and a diverse portfolio of service available
alliances that made the move from Ireland to Nigeria so successful:
to prestigious clients, how could PW Nigeria Ltd get any more
“PW Nigeria Ltd have an internal company agreement with its
impressive? Well, there are a few more facets to this operation that
entire staff which enables the most capable staff to be promoted
make it stand out from the competition, the most notable of which
from a junior level through Intermediate to Senior Staff level. In
is the fact that it is still a family-run company, with Donal Flinn at
terms of forging beneficial relationships, when the company first
the helm:
moved to Nigeria it was greatly helped by the Irish Missionaries
“Donal is a civil engineer with over 35 years’ experience in
who had first come to the country over a century before. Their local
Ireland, the United Kingdom and Africa. Donal has extensive
knowledge, fluency in the 300+ dialects and moral support was
experience in strategic management and is CEO of P.W. Ltd, and a
invaluable when moving to the more remote parts of the country.”
Director of P.W. Nigeria.”
Adding to the impressive credentials of PW Nigeria Ltd is the
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P W GROUP NIGERIA fact that the construction industry has been suffering in recent
Mining market and the largely untapped reserves and associated
years, but the company has not faltered;
development opportunities. We have acquired exploration licenses
“The Nigerian market has recently suffered a recession and
for two potential gold projects in the north of the county, and have
caused a decline in construction projects across the nation. With
also tried to help develop the mining sector through innovative
falling oil prices, Nigeria - an oil dependant nation - has realised that
schemes with the state government. Having operated in Nigeria for
as a country it needs to diversify to generate revenue internally,
over 40 years, PW Nigeria Ltd has extensive knowledge of the local
and recently moved its focus from oil to the mining sector. There
market and conditions, operating over 20 quarries to support their
are challenges ahead as this largely untapped mining sector
civil engineering operation during that time. Recently, PW Nigeria
requires investment in terms of exploration and development.
Ltd has been seen as the go-to company for logistical, technical and
During colonial times some exploration work had been carried out
engineering support and solutions across a wide range of mining
and provides an area of focus in the beginning. The market has the
projects.”
potential to grow at a fast rate.”
PWN clearly have their work cut out ahead of them, and we can
So what does the future hold for PW Nigeria Ltd?
already tell that they will be digging ever deeper into their reserves
One look at the team’s ongoing projects tells us that the
of professionalism and expertise to offer increasingly more intuitive
future is set to be busy, but that won’t stop more contracts being
and innovative engineering solutions - and that’s something we
competitively tendered for. With a relatively new head office fully
look forward to witnessing.
up and running, PW Nigeria Ltd has everything in place to ensure that operations can continue seamlessly and to the standards for which the company is well-known. It’s a good job too, as the industry is showing signs of improvement in Nigeria. O’Boyle was pleased to talk about some of the upcoming endeavours; “Currently, PW Nigeria Ltd is concentrating on the Nigerian
36 | Endeavour Magazine
TERANGA GOLD CORPORATION WWW.TERANGAGOLD.COM // 001 416 594 0000
LASTING TREASURE Corporate social responsibility – it’s something we take seriously in business, but some companies lift it to another level. One such company is Teranga Gold Corporation, a gold producer that is making waves in French West Africa, not only with an exciting and highly profitable organic pipeline, but with a vast slate of CSR projects to match. WRITTEN BY ALICE INSTONE-BREWER
TERANGA GOLD CORPORATION
Richard Young, Teranga Gold Corporation’s President and
CEO, joined the Company at its inception: “I was the first employee, and Alan Hill, our Chairman, and I took the Company public in late 2010. I was the President and CFO until the fall of 2012, at which point I became President and CEO, and I’ve held that position ever since.”
T
he two men met at Barrick Gold Corp after Young joined
on their second mine, Wahgnion, located in Burkina Faso, which is
the team in the early nineties. Prior to this, starting in 1984,
anticipated to be in production by the end of 2019. Once up and
Hill had led the development of Barrick’s mines, which gave
running, Wahgnion is expected to increase the Company’s yearly
him a wealth of experience with which to set out and achieve a pipeline of his own. “Barrick was smaller when we met, and then grew into a larger company, and both Alan and I left together with
production by 50% to between 300,000 oz. and 350,000 oz. Teranga also has an excellent organic pipeline, the key focus of which is the Golden Hill project:
the goal of doing something more entrepreneurial. We’ve worked
“We started drilling Golden Hill in the first quarter of 2017,
together ever since.” At first, the pair joined Gabrielle Resources,
and we expect to announce a maiden resource by the end of this
where Richard indicated they attempted to permit one the largest
year. We spent about $7 million on the project in 2017, and have a
undeveloped gold deposits in the world - unfortunately, with no
budget of $8 million for 2018. Golden Hill is moving along rapidly.
success. After five years, in 2010, they turned their attention to
We’re getting very good grades and continuity in our first five target
new horizons: “We had tried our hand at permitting, and we really
areas; presuming we get the tonnage, we’ll move on to a feasibility
wanted something that was already in production and was in a
study with a view to developing Golden Hill into our third mine.”
country that was mining-friendly - a country where we could grow.
This third project is particularly exciting because of the elevation it
Sabodala Gold Mine in Senegal seemed to be that place.”
could give Teranga’s production profile: attaining mid-tier status is
Teranga acquired this mine in 2010, and the flagship has now produced over 1.4 million oz. of gold. Last year saw a record yield of
an active goal for the Company, and it seems that management has a clear path to achieving this vision.
233,000 oz., and for the next five years, the Company predicts an
On top of all this, Teranga also has exploration projects in both
annual yield of 200,000 oz. Looking further ahead, there is a long
Burkina Faso and Côte d’Ivoire, which could turn into mines further
life still in the mine yet! “It’s got at least a 13-year mine life left; it’s
down the line.
a quality asset for us.”
Teranga has an impressive pipeline, which represents heavy
Off the back of this asset, the future holds a busy slate for
investments from the Company, as well as strategic forward
Teranga Gold. Thanks to the Sabodala Gold Mine’s steady success,
planning. The acquisitions behind this line-up began in earnest in
the Company has been able to expand: work has already commenced
around 2013, when many gold mines in Africa were feeling the
40 | Endeavour Magazine
TERANGA GOLD CORPORATION pinch of the downturn in gold prices. Instead of playing it safe,
you move into an emerging jurisdiction where there isn’t a history
Teranga’s management team and board took a chance: “For the
of gold mining, there’s a lot of work that a company needs to do in
most part in 2013, companies retreated and focused on limiting
order to gain the trust of its stakeholders. We’ve really focused on
costs and taking care of their balance sheets, whereas we took the
that: it’s our aim to lead the West African mining community in CSR.”
opportunity to start building a strong pipeline of projects designed
Many companies express a similar sentiment, but the Teranga
to take us to mid-tier status.” The decision was a gamble, but a wise
team is inarguably putting their money where their mouth is. We
one, and now Teranga faces the exciting prospect of reaping the
asked Richard to break down some of the initiatives that the
rewards. “We’ve really set this company up for what we think is
Company has put in place, and it was far from a short answer.
tremendous growth in the next few years.”
This focus seems as central and sincere as the Company’s focus
This foresight and bold investment could be highlighted
on mining – and to Richard’s mind, the one can’t exist without the
as the key to Teranga’s success, but Richard and Alan feel it is
other. The first of the projects he explained to us was Teranga’s
something more than this. “First and foremost, I think it’s our
approach to government relations:
focus on CSR.” Corporate social responsibility initiatives focus
“In 2013, with a downturn in gold prices, there was less money
on ways that companies can operate sustainably, ethnically, and
coming into Africa. The Senegalese mining code had made sense
to the long-term benefit of the regions they work in. They are
when it came into effect in 2003, but the country was under severe
an increasingly important focus for many businesses, particularly
financial pressure ten years later.” Teranga cooperated with the
for heavy industries that have the potential to greatly impact the
Senegalese government to make their operations in the Sabodala
communities around them, for better or for worse. However, for
mine more mutually beneficial: “Within West Africa, when you’re
Teranga, CSR is not an afterthought, an addition or even a safety-
converting an exploration licence into a mining licence, there’s an
net. It is the front line.
option for the government to take an additional interest, which
“We lead with CSR,” Richard explains with pride. “We have
generally speaking they don’t take, but we paid for that option. We
always believed that a strong CSR programme pays for itself. When
also moved our royalty rate up from 3% to 5%. Many companies will
42 | Endeavour Magazine
pay the mining code and not a dollar more, but we understood that this was a long-term partnership. That made a world of difference for us and the government.” This cooperation and understanding built up trust between Teranga Gold and the Government of Senegal; however, maintaining credibility with the central government alone was not enough. Richard and Alan believe that every stakeholder, including the Company’s shareholders, should benefit from responsible mining, and this meant working with the communities directly affected by Teranga’s operations. The first way to do this is to make sure the Company’s presence creates jobs, rather than taking them away: “At the beginning, between 10%-13% of our workforce was expatriate. We’ve now cut that down to between 5%-6%. We also work with small enterprises on precuring goods and services. We’ve gone to local companies for our ore haulage, for all of our bus services, and maintenance work on our mills – we really work hard to work with local companies to build up their skill set.” These efforts keep money moving through the communities Teranga works in, which provides a strong short-to-mid-term benefit. However, more than this, they are thinking long-term: “We have a local training programme on site, where we bring casual labour in to learn skills – bricklaying, carpentry, iron works etc. This
Endeavour Magazine | 43
TERANGA GOLD CORPORATION allows them to not only work but also to learn a trade that they can employ either regionally or at a national level.”
“It was tough. In fact, there were groups who didn’t think it was possible. We really believed it could be successful, but it took time.
One of the most significant and innovative of Teranga’s long-
Ultimately, though, after the first market garden took off, then all
term projects has been the development of ‘market gardens’.
the other communities wanted one.” Teranga has also built several
Some of the communities that the Company work in are in
health clinics in Sabodala, and runs a project called White Gold for
dry, arid areas far from the coast where there is a distinct rainy
Life, which works with artisanal miners who used to farm cotton
season, and the ground does not hold the moisture well, meaning
before its global prices suffered. “They want to go back to farming.
that the food supply is weak. Teranga decided to do something
It’s more stable, it’s safer, and their kids can be in school. White
about it:
Gold for Life is basically a seed to shelf project, because the area
“We had 18 months of consultation with local stakeholders and government on what they wanted to see this region grow,
actually has all the five steps that are required to produce a finished product.”
and then we looked for appropriate opportunities.” Following the
The Company’s projects don’t end there: “We’ve got a social
consultations, the Company devised the idea of market gardens,
fund of between US$1.2-$1.5 million a year, which we spend on
and they have now constructed 12 to date. Areas of land are
local projects. We establish an annual protocol with the community,
prepared for farming around the installation of a bore hole that can
where they set out how they want that money to be spent. Everyone
keep the crops watered all year round. Each garden costs around
is aware of which projects each community has focused on and
US$255,000 to create, depending on size, and an ergonomist
wants to move forward.” We also set up a dedicated fund after
works closely with the women of the communities to make sure
the discovery of a high-grade mine 25 kilometres from Teranga’s
that the farms cultivate a beneficial variety of crops between them.
processing plant. When artisanal miners travelled to work the new
The project has been life-changing, improving the health of the
site, Teranga used the fund to inject economic activity back into
families and the areas impacted, but surprisingly, it initially proved
the areas they had travelled from, to mitigate the impact of them
difficult for Teranga to get groups involved:
moving away.
44 | Endeavour Magazine
Arranging CSR projects of this capacity, and with this level of local insight and involvement, is a full-time job in itself. In fact, it’s several! Teranga has made this scale of involvement possible by committing not only time and resources, but people. In 2010, the Company’s CSR team consisted of two employees; today, it has 50. “We’re really proud of our CSR work. To be honest, it’s one of the most pleasurable aspects of our roles.” Teranga’s genuine commitment to CSR has paid off, both for the communities that have and continue to prosper as a result, and for the Company itself. Generosity and reliability have created strong business ties and bonds that are allowing them to pursue the exciting organic growth pipeline they have in the works: “It’s allowed us to grow the Company in Senegal, and more importantly, it’s allowed us to grow elsewhere in French West Africa, because our solid reputation precedes us.” Smart business sense that benefits everyone, combined with the gutsy decision to expand when other companies were internally focused - Teranga Gold is a company set to achieve great things in the coming years, and in our opinion, they deserve to do so!
Endeavour Magazine | 45
GUYANA GOLDFIELDS WWW.GUYGOLD.COM // 001 416-628-5936
SETTING THE GOLD STANDARD The Republic of Guyana, a South American nation based on the northern coast of the continent, is not, for want of a better term, a household name. But then again, nor are many of the world’s best kept secrets. WRITTEN BY DJAMIL BENMEHIDI
GUYANA GOLDFIELDS
A former British colony for a little over two centuries
until it achieved independence in 1966, Guyana’s landscape and spectacular bio-diversity – its otherworldly beaches and sweeping savannahs, and the peaks and plateaus of the Guiana Shield that thrust out into the sky above the canopy of the lush rainforest that blankets the land around it – showcase the beauty of nature at its finest and most unspoiled.
G
uyana’s natural gifts have provided the foundations upon
of 150,000 ounces of gold per year on average. However, these
which a thriving eco-tourism sector is emerging, but as the
figures, impressive as they might be, don’t tell the full story for one
miners who have entered the country in recent years have
simple reason: they are conservative in nature, and don’t take into
found to their delight, Guyana’s natural gifts are as bountiful below-
consideration vast, as of yet untapped ore reserves onsite, nor an
ground as they are above.
expansion of Aurora’s processing facilities that upon completion
Guyana Goldfields, one of Canada’s most promising up-
will greatly increase production capacity.
and-coming junior miners, has discovered first-hand just how
“We have ore reserves of 3.2 million ounces of gold, all very
extraordinarily mineral-rich the Guiana Shield region is – an area
high-grade at approx. 3 grams. Then there’s additional resources
stretching across tracts of territory in Guyana, Suriname, Venezuela,
that could potentially ramp up reserves to around 8 million ounces
and Brazil. It is here that the company’s flagship project, the Aurora
– we have a further 5 million ounces where we need to do more
Gold Mine, is based, and make no mistake about it – in finding, and
drilling and technical work to expand accessible ore reserves.
then developing the site over the years since, Guyana Goldfields
But right now we have a 15-year mine life, although in reality, its
have struck gold.
lifetime could last a lot longer than that. We’re expanding the plant
“We announced commercial production Jan 2016, and last year
at a phenomenal rate from around 150-160,000 ounces to about
(2016) represented our first full year of production with just over
220,000+ ounces per year – we’ve just started that expansion,
151koz of gold. It’s been a great accomplishment and we’re pleased
which will be a $42 million project and completed by early 2018.
with the progress we’ve made thus far,” said Scott Caldwell, Guyana
Constructed on-time and on-budget at a cost of US$250
Goldfield’s President & CEO. He continued: “We also started 2017
million, Aurora Gold Mine’s credentials place it firmly in the world-
off strong by producing just over 40koz in Q1’17 while maintaining
class category, and signals Guyana’s return to the top table of big-
an excellent health, safety and environmental track record with
ticket gold producers. However, as Caldwell mentioned, what’s
over 3,000,000 hours accumulated without a lost time incident.”
most exciting to Guyana Goldfields along with its investors is that
Such considerable output from what is a truly world-class gold
this already top-tier asset hasn’t yet come close to realising its
asset signals Guyana’s return to the top table of global gold mining.
potential. Indeed, realising this potential is the company’s foremost
With estimated reserves in excess of 3.2 million ounces to be mined
goal, and Guyana Goldfields is set to commit to a $6-8 million per
over an initial 15-year lifespan, Aurora presently yields in the region
annum spend on exploration and drill work which will not only
48 | Endeavour Magazine
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GUYANA GOLDFIELDS incorporate brownfield work on the Aurora site but true grassroots
Guyana Goldfields team have the means and resources to achieve
greenfield exploration amongst other targets within their vast
this. However, what is undoubtedly one of the most fascinating and
portfolio of assets in Guyana. Such a considerable outlay, along
reassuring attributes of the company is that there is a commitment
with the $42 million that has been set aside for the mill expansion,
to getting to the top the right way, and to becoming one of the
is a statement of intent on the part of Guyana Goldfields.
sector’s premiere mining companies without compromising the
Technically speaking, Guyana Goldfields is, for all its strengths,
environmental integrity of Guyana in any way. Once upon a time, the
a junior miner, but Scott and the rest of the team have far greater
gold mining sector had a poor reputation that, due to incompetence
aspirations. And critically, the means are there to achieve organic
and malpractice, was well-deserved in many instances. Times have
growth through the drill-bit, mill expansion, and exploration, which
changed, however, and such negligence on the part of the mining
will in-turn deliver a sufficient enough production increase to see
sector is for the most part now an unpleasant chapter in history,
Guyana Goldfields rise to the next level.
but understandably a distrust of the sector lingers, especially in the
On this, Scott told us: “We believe, or at least hope that we’re
minds of the Guyanese who remember the Omai disaster in 1995.
going to find another deposit that will require us to build a new,
With this in mind, Guyana Goldfields has set-out to make itself a
second mill, and the goal is to organically grow from 220,000
valuable and conscientious component of the Guyanese economy
ounces to maybe 300-400,000 ounces. But we’ve got to get drilling,
that not only contributes wealth to the country’s national coffers,
then we’ll know if we’re going to be truly successful. There’s a lot of
but also invests in sustainable objectives that increase the quality
targets, we know there’s a lot of gold in the region, the question is
of living for the Guyanese people as a whole.
can we find it and put it into production? If we do and we continue
In every fibre and sinew of the company can be found an
achieving organic growth, we can go to the next level and become
overarching commitment to going about mining operations in a
the next mid-tier producer.”
socially and environmentally responsible manner, as Scott was
In terms of capability and expertise, there is little doubt that the
50 | Endeavour Magazine
keen to iterate: “Our focus and efforts on CSR and sustainability is
Endeavour Magazine | 51
GUYANA GOLDFIELDS engrained. The company’s CSR Strategy, Community and National
got a great working relationship with the government and the
Initiatives target areas locally within our communities, and also on
local communities there. It’s a very friendly and supportive country
a national level that promote sustainable development in Guyana.
to do business. On the operations side - the mine is performing
We do a lot of work with children, in terms of investing in and
well, as is the mill and the processing plant. Our next focus is on
supporting educational efforts, and we also work with a number
the mill expansion which will bring our overall annual production
of indigenous communities on various initiatives. We invest in and
from 150koz of gold to over 200koz. Alongside that, we’re also
support schools and offer transportation to help kids get to school,
focused on organic growth through the drill bit and ramping up our
which can involve helping them travel by bus or by boat. Offering
exploration efforts to hopefully find that second mine”.
opportunity to children with a view to building a better future has been a central focus of ours.”
We also have a strategic investment in a company called Solgold PLC, a team that is based out in Brisbane, Australia. It
Through building relationships with local communities and
looks like they’ve found a huge porphyry copper-gold system in
taking great stride in operating in a conscientious manner to
Ecuador that looks very promising. Following our investment, we
eliminate any negative social or environmental impacts, Guyana
at Guyana Goldfields own about 7.2% of the company – clearly
Goldfields is winning hearts and minds. As they have shown,
as far as strategic investments go, it’s done quite well. All in all
it is possible to marry commercial success with a socially and
everything’s looking pretty good. Things are going great at Aurora
environmentally responsible approach to doing business. Business
and our strategic investments are looking pretty good for us.”
is booming, and with gold prices continuing to rise it would be safe
Having worked with Guyana Goldfields over the years and
to say that over the short to medium-term, at least, the marketplace
having observed the company’s growth and development, it is hard
looks buoyant.
for us not to share Scott’s optimism.
When asked about what’s next for the company, Scott concluded: “We’re very happy working in the country, and we’ve
YOU HAVE A RESOURCE. YOU HAVE A VISION.
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DUE DILIGENCE & SCOPING STUDIES TECHNICAL ENGINEERING STUDIES ON-SITE SERVICES ENGINEERING, PROCUREMENT & CONSTRUCTION PERMITTING SUPPORT MINE RECLAMATION SERVICES WWW.JDSMINING.CA 52 | Endeavour Magazine
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Endeavour Magazine | 53
AURYN RESOURCES WWW.AURYNRESOURCES.COM // 001 778 729 0600
THE GOLDEN LINING “This is a once in a career, once in a lifetime opportunity.” Auryn Resources is a junior explorer on the verge of what could be a major discovery. As they complete the season’s drilling and await their results, we spoke with Ivan Bebek, executive chairman and co-founder of Auryn Resources, about Auryn’s current portfolio and the exciting discoveries that could be on their horizon. WRITTEN BY ALICE INSTONE-BREWER
AURYN RESOURCES
It is no secret that the gold market is at a low point. In
fact, for the past year, it has been getting steadily worse. “The gold price and the gold sentiment has deteriorated on a monthly basis for 12 months in a row.” Ivan is upfront about the current state of the market, and yet he’s bubbling with anticipation. “I average about four hours sleep a night because of my excitement thinking about the potential discoveries we could make.”
T
his might seem strange, coming from the Chairman of a gold junior during a gold market slump, but Ivan knows two very exciting things: firstly, this low point means that the market
should be ready for an upswing over the next few years and, fortuitously timed with this trajectory, Auryn Resources’ portfolio may soon bear treasure of global significance. We spoke with Ivan about their current projects and Auryn to learn more. . Whilst Auryn Resources has several projects in Peru and Canada, we focused in on two in particular: Committee Bay in the Arctic, and the Peruvian Sombrero. Both projects represent heavy investments and hard, often arduous work, particularly in Committee Bay’s case, and both required leaps of ingenuity and faith from Auryn and its team, but those gambles and long hours may be poised to pay off. In both cases, Auryn’s team believes that all the signs are pointing to the possibility of discovering a worldclass gold deposit – perhaps even more than one. “Committee Bay is a 300-kilometre-long greenstone belt with several gold occurrences along the entire belt, and Sombrero is over 100 000 hectares. These sites are district scale, meaning that there may be multiple multiple multi-million ounce deposits within the large land positions discovered over the next few decades. We spent about three years – this is our fourth year – and quite a bit of capital to bring these projects to a near-discovery state.” The last 5 million ounce gold mine to be found was back in 2013 – the Amaruq mine, discovered by Agnico Eagle, which is now in development. This deposit is close to Committee Bay, as
56 | Endeavour Magazine
well as it’s Agnico Eagle’s third mine of consequence in the arctic,
they have taken an aggressive approach to developing these assets,
implying a potential gold-rich area. The recent drop in large high-
throwing money at these locations and making risky decisions that
quality gold discoveries also means promising things for gold prices:
seem set to pay off.
“Nobody’s finding goldmines. Two years from now, there’ll be a
This aggressive approach has been particularly true at Committee
major production cliff – I believe we will lose approximately 20% of
Bay. The 300 km greenstone belt is a massive undertaking, and the
global production in one year. Very few people are spending money
Arctic makes for hostile working conditions. The land had already
looking for new mines, and we’re one of them. We strongly believe
seen about $65 million worth of exploration expenditure before
that there will be a major reversal in gold prices as we get closer to
Auryn acquired it, including $30 million spent on the infrastructure,
the production cliff and the potential weakening of the US dollar.”
which includes a full camp, fuel and even drills. However, there
All of this puts Auryn in a fantastic position: if their portfolio bears
was still plenty of work to be done. To tackle such a large area,
fruit, it will come at the perfect time.
Auryn devised a method of till sampling to study the glacial till that
So, why is no one finding 5 million ounce deposits anymore?
covers the rocks, which would allow them to study the history of
“All of the easy ones have been found. The amount of capital that
the movement of the glaciers over the belt and eventually vector
was spent from 2000-2011 was intense, and everything that was
back to the sources of gold. They also brought in an R.A.B. drill rig
outcropping was found. Now, people are starting to explore for
(rotary air blast), which drills chips rather than core. Chips provide
major deposits undercover.” Undercover exploration is more costly
less information than core, but they are far quicker to produce, and
and a much higher-risk endeavour, requiring more time, resources
more efficient when exploring a large area:
and effort. The bear market has significantly reduced the number
“We drilled 18 targets last year, spending approximately $25
of companies searching for gold, and slowed their searches down:
million drilling 30,000 meters. That kind of undertaking along
which means very high rewards could await for shareholders of
with the aggressive sampling we have done across the 300km is
the first company to find the next high-grade, large deposit, and
the kind of undertaking you would see a major do in ten years or
Auryn’s team is confident that the signs they’re seeing at their
so, and we did it in a couple of years. It’s been extremely tough
projects indicate they could be onto two of them. Not holding back,
on our geologists because the amount of energy and work is very
Endeavour Magazine | 57
AURYN RESOURCES intense in the short seasons. You have from June to August to
will eternally evolve at Committee Bay, but our confidence is the
be physically working on the project with access to the surface,
highest it’s ever been. We’re seeing spectacular core.”
and you don’t get results until after the season, so you’re working
The results from this year’s drilling will be fully returned by the
basically around the clock, 24 hours a day for three months straight,
end of October. “What we’re hoping to define is a model so that
and then there’s processing the data in the fall ahead of the next
everyone can see the start of a significant deposit vs. a one-hit-
yea’rs plans.”
wonder. That’s what I’m excited about. When we get an answer this
The method was costly, but it allowed Auryn to speed up
year, if successful, it may show us something that we can actually
their chance for discovery. The vast amount of data allowed them
call a start of a deposit, and people can start to make meaningful
to compare the land in this district against nearby discoveries,
speculations as to its size and value based on how many holes, over
and through this comparison, they saw that Committee Bay was
the 1.5 km drilled, if the rock we hit contains high grade gold.”
exhibiting all of the geological signs one would hope for to imply
What if this heavy investment in Committee Bay doesn’t pay
the potential presence of significant gold deposits, and this meant
off? The results so far are on par with other key discoveries in the
they were ready for the next step:
area, and Auryn feels confident in their cause for excitement, but in
“This year, we brought out the core rig for the first time for
the exploration game, nothing is for certain. However, Committee
maiden exploration, and what we’ve had a chance to do is see
Bay isn’t their only key project; they also have a potential ace in
what’s happening in the rocks in a much more revealing manner,
the hole in Peru at their Sombrero property. This project looks
and in real-time. We’re hitting all the right rocks and at respectable
as though it could be just as fruitful, and it is less expensive and
widths, and what we’re seeing in our drilling this year is much
logistically challenging to develop:
stronger and much more evident than what we have seen to date.
“The Arctic is fairly isolated and requires infrastructure. In our
The most important factor this year was the tightening of the
Sombrero project, the opportunity is parallel to what Committee
spacing of the sampling we did on surface. When we sampled the
Bay could be in scale, but it boasts some of the best infrastructure
belt we were sampling 500 meters by 1000 meters. This year we’re
one could hope for in a project. As luck would have it, the
looking at 100 by 100 meters. The science is not perfect, and it
government put in high-tensile power lines on the project since
58 | Endeavour Magazine
Auryn optioned the project. It also has roads directly to it, water and access to people nearby.”
“A river cuts a 400 meter cliff, and in that cliff, there are mining adits half-way-down– the Spaniards were mining into the actual
Las Bambas, a notable copper deposit approximately 200km
cliff, showing that the entire cliff, which we sampled, is mineralised
east of Sombrero, sold for $7.3 billion in 2014, despite 2014 being
from top to bottom. It’s one thing to have the surface showing gold
a bad year for metal prices. This has Auryn feeling understandably
and copper, but it’s another to have a free cross section. It really
positive - especially since early exploration implies that Sombrero
increases the confidence and probability.”
bears several similar characteristics, including copper levels, to Las
“One of the factors here is the grade – we’re seeing up to 193
Bambas, on top of signs of gold instead of molybdenum, which is
gram-per-ton gold, and up to 17% copper. That means there’s a
seen in Las Bmabas. Sombrero is located between many rich sites -
very high metal budget, implying it’s a strong system, which is a
so why had no one developed it before? Ivan explained: “There was
very positive line of evidence. The second thing we like about it
volcanic cover over all the rocks on this side of the major gold trend
is the scale. We’re talking multi-kilometre, long targets. The scale
and so people didn’t really look in this region. About ten years ago,
would be comparable to Las Bambas and several of the other major
a gentleman named Miguel Cardozo - now part of our technical
mines in the region. “
team - noticed that there was an erosion window in this cover
Between these two projects, it seems a safe bet that Auryn could
where one could see the bedrock. He was sampling very high gold
be on the cusp of at least one major deposit, if not several! Pouring
and copper values, but was never able to drill it because market
everything into these sites, the company is combining courage and
cycles turned against exploration.” The team at Auryn recognized
gut instinct with careful planning: also in the portfolio are a number
the opportunity to invest and continue Miguel’s work, and as with
of midsize projects, which the company would consider selling, if
Committee Bay, so far, they are finding all of the geological signs
the right price was offered, in order to fund their larger ventures.
they would hope for to imply a major deposit. Most excitingly in
“Our most advanced project is Homestake Ridge. This is a
Sombrero, a ravine and past small-scale miners have afforded them
spectacular deposit – it’s about 1.2 million ounces at 7.5 grams per
a sneak preview of what might lie under the highly-mineralized
ton gold and silver equivalent, so far. We suspect that this could
surface rocks:
potentially have a lower capex to build, due to nearby infrastructure,
Endeavour Magazine | 59
AURYN RESOURCES and potentially mined profitably due to the high-grade nature of
deposit, and this was achieved in Ghana. Whilst Keegan developed
the mineralization. We are drilling it right now to expand more of
this site, Cayden was founded with a similar goal, and it was
the high-grade gold we’ve found there, but it’s in a much more
successfully sold to Agnico Eagle for $205 million amidst the bear
mature stage than many of our other projects. Because of its
market after a hundred drill holes, even despite an official resource.
proximity to other deposits in British Columbia’s Golden Triangle,
The team grew at Cayden with Ivan and Shawn then teaming up with
and infrastructure that goes right to the edge of the property, it
Russell Star, a finance guy with a lengthy and successful career in
makes it a very appealing asset for a mid-tier.”
institutional banking. Through both companies, the partners learnt
Ivan is standing at a breath-taking moment in his career - there
what it meant to run successful junior exploration companies from
is all to play for, and all he can do now is wait for the results and
set-up to discovery to production and/or sale. Achieving success
look forward to drilling Sombrero in early 2019. We asked him how
with both, they set out to take their ambition a step further, and
he had ended up here, and where his journey with mining began:
Auryn was born, with the aim of finding projects that would make
“I started in the business as a stock broker at 22 years old, and
gold majors take notice.
I was buying mining stocks back in the .com era. In 2005, I came
Today, some majors are. Notably, Goldcorp invested in the junior
across my partner, a fellow mining entrepreneur, Shawn Wallace.
last January, putting in $36 million and becoming Auryn’s biggest
He’s seven years my senior and when we met each other we said,
singular shareholder. They followed this investment with a further
‘You know what? We like working for these two successful mining
$2 million the following year in two more financings. This interest,
groups, Roman Skhklanka in my case and Hunter Dickinson in his,
which Ivan believes is the largest investment globally from a major
but we want to try it our way’, taking the best of what we learned
into a junior at this low point in the gold cycle, shows the major’s
in the business to date.”
confidence in what Auryn is doing, and appeal of the potential scale
Shawn and Ivan started two companies prior to Auryn –
of the discoveries that might be made.
Keegan Resources and Cayden Resources. Keegan Resources was
In talking about their potential success, Ivan continuously brings
established in 2005, with the aim of finding a 5-million-ounce
the credit back around to his partners and the Auryn team. As well
60 | Endeavour Magazine
as his partner Shawn, he points to Auryn’s chief geologist, Michael
the freedom to follow their gut and approach their jobs with the
Henrichsen. Henrichsen was originally a global structural geologist
passion and individuality that their expertise gives them, rather
for Newmont. “He is one of the most professionally organised
than ticking boxes, has allowed the team to flourish, and there is no
geologists I’ve ever met. His best asset is that he surrounds himself
quicker route to a group of happy scientists. When a team is happy,
with people that know more than him about different areas of
they put in extra effort – Ivan tells us that during the exploration
geology. His area is structural geology, but if he needs to know
months, everyone, himself included, is putting in overtime not
about geochemistry, say, he goes to the world expert: somebody
because they have to, but for the love of the task.
that’s humble enough to acknowledge that they don’t know
Now, with results and possibly rewards for that effort so close
everything, especially in the world of science, is a brilliant person
on the horizon, Ivan and the team are full of optimistic anticipation:
to have confidence in. So, Michael’s the one who assembled the
“It’s an emotional rollercoaster that I can’t really describe. Do we
technical team for Auryn.”
have the next biggest goldmine in the world, or do we still have
Like Michael, Auryn’s team of experts includes many names
more work to do? I’m more excited than worried, but I’m so excited
that previously worked for exploration majors. We asked Ivan how
that I average about four hours of sleep a night. I look at Sombrero
Auryn managed to not only attract such a high-calibre team, but
and Committee Bay both in a portfolio, and I go, ‘This is a once in
how they’ve allowed this team to flourish and make the most of
a career, once in a lifetime, that as a junior explorer, to have the
their potential: “Our ability to finance really drew them in, and we
scale of these projects, at a time where the market’s not finding
also took away a lot of the red tape that they had with a major. The
resources.”
big deposits I’ve seen found are by a geologist who’s been free to
“It’s a spectacular opportunity that I’m doubtful will find us
be extremely creative in their exploration efforts. When you offer
again. I’m hoping one of the two, or both of them, work out, and
to back people financially, and give them the latitude to do what is
that we can deliver a return for the next 20 or 30 years.”
necessary for science, it doesn’t guarantee you a discovery, but it certainly gives you a really good shot.“ Allowing this talented team
Endeavour Magazine | 61
62 | Endeavour Magazine
KORITE AMMOLITE WWW.KORITE.COM 1-800-917-2228
A GEM OF AN IDEA WRITTEN BY AMY BUXTON
When it comes to the glamorous world of gemstone discovery and jewellery creation, there is one company that seems to be leagues ahead of competitors in terms of innovative designs and beautiful materials, which is why Endeavour Magazine wanted to take a closer look at KORITE. Endeavour Magazine | 63
KORITE AMMOLITE
Founded in 1979, KORITE has risen through the ranks to become Canada’s premier and most respected coloured gemstone discovery operation, thanks to its single-minded approach to harvesting and displaying ammolite.
I
n fact, the company vision says so much more than we ever could, in terms of how focused it is, “To colour the world with KORITE ammolite, Canada’s
gemstone, recognised for its unique provenance, high quality, rare vibrancy and talisman-like energy.” With a targeted vision such as this, it makes sense that the mission statement of the operation talks exclusively about celebrating the incredible gemstone, through amazing jewellery designs and high-end collectibles, but what exactly is ammolite? Derived from ammonite, a fossilised material that is notable for its unusually vibrant colours and stunning composition, finished ammolite has all the aesthetic superiority of its parent material, but in a more polished and presentable way. “Ammolite is an official gem, certified by the World Gemstone Federation, one of three in the past 300 years. Rare because of its limited discovery in Southern Alberta’s Bearpaw Formation, KORITE is a truly unique and authentic ammolite gem that has bold vibrancy, positive energy and a natural history.” With control over more than 90% of the ammolite resources in the world, it comes as no surprise that KORITE is so successful, knowledgeable and respected in the industry, after all, if you
64 | Endeavour Magazine
KORITE AMMOLITE
surround yourself with one specialist product, you’re going to
forward designs for its signature KORITE jewellery. Distinctly
quickly become an expert in it! Don’t think that a single-minded
colourful and deeply emotive, the new direction will help grow the
approach to harvesting means an unethical approach though, as
business to secure its leadership in the industry.”
that couldn’t be further from the truth as KORITE stands by,
So, KORITE is a market leader, has monopoly over the lion-share
“Environmental and ethical mining practices, eco-responsible
of the natural resources in the world, thanks to ownership of the
leadership, manufacture, design and community support to the
largest commercial mine and now, has an incredibly experienced
highest standards of sustainability, design, craft and citizenship.
and industry-expert management team in place, but that’s not all.
The company, its discovery team, craftspeople, designers and sales
With a smooth finish and gorgeous aesthetics that are said to rival
professionals stand by quality and professional confidence at every
black opals for their colour and fire, ammolite is entwined in legend,
stage of its intimate Canadian operations.”
folklore and even spirituality,
With a fantastic heritage in the industry already, a new
“Recognised as the most influential stone of the millennium,
management team came as a welcomed refresh and brought new
ammolite is celebrated internationally, by Feng Shui masters for its
knowledge into the fold that would prove to be fantastically useful
significant properties. Only KORITE Canadian ammonites combine
for future projects. Martin Bunting, a respected retail executive,
the excellent properties of the ammolite gemstone and the good
has been brought in as CEO, alongside Jay Maull, a mining and
fortune of the shell together in one beautiful and very special fossil.
jewellery professional, who was appointed as company President.
The gem symbolises good luck and prosperity, enhances clarity,
The introduction of these two top-level executives in 2015
promotes cooperation and encourages wisdom.”
heralded a new dawn for KORITE and to say that the future looks set to be dazzling, would be a trite understatement,
Filled with vibrant colours that correspond to key Feng Shui principles, it’s no surprise that ammolite is treated with respect and
“New management introduces new and exciting opportunities
reverence, or that KORITE has made such an effort to protect its
to evolve the brand by exploring refined, on trend and fashion-
interests, primarily by announcing that it owns and runs the only
66 | Endeavour Magazine
legal ammonite-producing mine, the reach of which is now being
marketplace through hard work and innovation, there is a sense of
extended by a huge five acres.
having stumbled upon an unusually progressive organisation,
With demand from 28 countries for this amazing and diverse
“From responsible harvest at its award winning excavation to
gem, there’s no mistaking that the extra acres are needed, but
finished jewellery and decor statement pieces sold around the
Canada itself is also seeing a huge increase in demand, thanks to
world, the company stands by quality and professional confidence
the 150th birthday celebrations being held in 2017,
at every stage of its International operations. We have now
“Canadians can bring out their true colours with ammolite in preparation for Canada’s 150th birthday celebrations in 2017 and
become one of the most loved and respected coloured gemstone companies, with a far-reaching signature jewellery brand.”
KORITE is proud to be the official jewellery supplier licensee for
Just as ammolite can be traced back 71-million years and has
Canada 150. The ammolite gemstone is set in beautifully designed,
a long and traceable history, we get the feeling that KORITE has
Canadian symbolic keepsakes and jewellery as a new collection of
many more years of successful mining and design ahead of it. The
everyday wearable accessories. Promoting Canadian patriotism,
Canada 150 celebrations and increased mining facilities are just
there will be 21 keepsakes to collect, set in silver plate or sterling
two amazing developments to happen to KORITE in 2017 and it’s
925 silver.
only just begun, so we can only imagine the stratospheric levels of
KORITE encourages Canadians to share the ammolite keepsakes
success that await the team as the year progresses.
with friends and family locally and abroad to spread the message of unity, independence and cultural diversity in Canada.” It’s not a rarity to find a forward-thinking company that produces inspiring, gorgeous products, but when you couple that with a genuine commitment to environmental stewardship and a desire to make a global impression on a highly competitive
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Endeavour Magazine | 67
ALDERON IRON ORE CORP WWW.ALDERONIRONORE.COM // 001 604-681-8030
THE NEXT BIG THING IN CANADIAN MINING Iron ore undoubtedly is an indispensable metal in today’s modern world, much as it has been for over 3,500 years. Just look around you: iron and steel can be found everywhere, from the hulls of great ships to the frames of towering skyscrapers and bridges; it is used to manufacture the chassis of cars and lorries and to build heavy machinery. WRITTEN BY DJAMIL BENMEHIDI
ALDERON IRON ORE CORP
Wherever you look, iron or steel won’t be far from
eyeshot. In fact, it is likely to be found in every street in every city, and likely in the kitchen, or any other room for that matter, of every home. Strong, inexpensive, and resistant to rust, our entire world is built using it, meaning that demand is, and always will remain high.
N
aturally, the rewards for mining operators with the ability to find and develop the few genuinely world-class iron ore deposits out there are great indeed. And make no mistake
about it, Alderon Iron Ore Corp., a Canadian mining junior focused on the development of one of the most promising iron ore deposits to be found in Canada in recent years, is set to reap them in the near-future. There are a great many mining juniors out there, particularly in Canada – arguably the global hub of international mining - but few
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catch the attention of industry experts and investors in the way that Alderon Iron Ore has. In a manner of speaking, Alderon Iron Ore has hit the jackpot, following its 2010 acquisition of rights to the Kamistiatusset property, known as the Kami Project – a site of astonishing promise that has set the tongues of investors wagging. The Labrador Trough geological belt, a resource-rich stretch of land on the Quebec border of southwest Labrador, is widely regarded to be Canada’s premier iron ore mining territory. To-date, Labrador Trough is the one of the only regions in the past half-century
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that has yielded iron ore reserves in Canada, but the discoveries that have been made here are easily the equal of deposits from the world’s traditional iron ore-producing superpowers, China, Australia, and Brazil. The Kami Project is a chip off the old block in
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this respect - Alderon is sitting on a veritable gold mine.
70 | Endeavour Magazine
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ALDERON IRON ORE CORP Presently, Alderon is a development stage company, but after seven long years, work is set to begin on building the mine and
provide accommodation and amenities for the workers who will one day be needed to operate the Kami mine.
the adjoining facilities needed to breathe life into the project.
Once operational, the economic impact of what will be a truly
Upon completion of site development, the project will be ranked
world-class iron ore mine are going to be great for the region
amongst the top iron ore-producing mines in the world, in terms of
indeed, and will provide a much-needed shot in the arm for nearby
the size of its iron deposit and quality of the ore beneath its land.
Labrador City and Wabush. The towns are mining settlements
The numbers speak for themselves: mineral resource estimates
through-and-through, which have relied almost entirely on the
have revealed that the site is home to in excess of 1.2 billion tonnes
mineral riches from Labrador Trough since the days of the early
of ore inferred at 29.8% iron, and a further 522.6 million tonnes
1950’s, when prospectors and workers first came to the area
inferred at 29.5% iron.
seeking their fortune.
The underground riches of this resource-filled region have long
This industry truly is the lifeblood of these towns, which given
been known, and yet for all its promise, a lack of infrastructure in
the cyclical nature of mining, has meant its roaring booms and
the area prevented the discovery and development of the iron ore
terrible busts have left Labrador City and Wabush exposed to the
that lay beneath its earth for many years - but no longer. Less than
ebbs and flows of global economic headwinds. And yet, for all the
2.5km from the Kami Project, paved highway is in place to shuttle
busts, downturns, crashes and falls in fortunes this region has
workers, resources and equipment to site, as is a common carrier
endured over the years, even grizzled veterans with mining in their
railway with a 50-million-ton capacity only 14.5km away, granting
blood were shocked by the severity of the industry downturn just
access to a multi-user deep-water port with all-year-round access
gone: an event of grinding brutality that brought even the world’s
to the open ocean. Low-cost powerlines lie only 15.5km from site,
largest, most powerful mining operators to their knees.
and the neighbouring twin towns of Labrador City and Wabush
72 | Endeavour Magazine
The impact of what many in the mining sector consider to be
the industry’s great recession crushed numerous mining juniors and
billion in total incomes expected over the life of the project.
mid-tier operators, and saw countless mines mothballed as once-
“In Newfoundland and Labrador alone, we expect that Kami will
booming commodities prices crashed heavily following slowing
create approximately 32,000 direct and spinoff jobs, generate more
Chinese demand and a resource supply glut. Indeed, Alderon itself
than $2.2 billion in total incomes to workers and businesses and
barely survived this difficult period. Low iron ore prices meant that
contribute more than $1.8 billion in much needed revenue for the
development of the Kami Project during this troubling time was an
provincial treasury.”
impossibility, but despite a recent fall in value, iron ore prices have
It has been a difficult journey for the company but it would
risen to the point where development of the site is once more on
seem that Alderon Iron Ore is finally on the cusp of realising its vast
the agenda.
potential. These are exciting times for the company and the wider
Following the recent release of its Economic Impact Assessment (EIA), the financial boost that Alderon’s Kami Project will have on
industry, for that matter, with the Kami Project emerging as the site to watch.
the region once it enters operation is difficult to overestimate. In a statement, Alderon Iron Ore’s CEO Mark Morabito said: “The release of an independent economic impact assessment represents another significant milestone in our efforts to effectively re-boot the Kami Project and capitalise on improving iron ore market fundamentals. The EIA results provide clear validation that Kami will have a positive economic impact in Labrador and beyond, as demonstrated by the more than 100,000 per person years of employment that it is estimated to produce and an estimated $7.6
Endeavour Magazine | 73
TANZANIA CHAMBER OF MINERALS AND ENERGY WWW.TCME.OR.TZ // 255 22 2667594
DEDICATION TO THE CORE The mining industry in Tanzania is critical, in terms of supporting the local economy, so it makes perfect sense that an overseeing body would be put in place to protect the interests of everyone, at every level. Endeavour Magazine spoke with Gerald Mturi, Executive Head of the Tanzania Chamber of Minerals and Energy, to find out if there are any innovations or challenges on the horizon. WRITTEN BY AMY BUXTON
TANZANIA CHAMBER OF MINERALS AND ENERGY
The Tanzania Chamber of Minerals and Energy may have only been brought into being in 1994, but don’t let their relatively short operating span fool you into believing that developments haven’t been made. Originally founded in order to ensure that its members’ interests were represented within the Tanzanian mineral sector, the Chamber essentially gives a voice to everybody, from stakeholders through to investors and even mediates between governmental bodies and mining operations as well.
N
aturally, with communication playing a major role in the day-to-day business of the Chamber, highly experienced, dedicated and responsible professionals were needed to
get on board, and Gerald Mturi proved to be the exact calibre of management material required; “I have been an executive of the Chamber since September 2016, taking over from Eng. Emmanuel Jengo who worked for the TCME for 17 years. Before joining the TCME I worked for Resolute (Tanzania) Limited, a subsidiary of Resolute Mining Limited of Australia for 16 years in various capacities, and my background is firmly in accounting.” It’s no mystery why Gerald was considered to be the man for the job. With a wealth of experience within the mining industry already and qualifications relating to high-level accounting, he was perfectly positioned to inject new life into the Chamber; “Currently we have about 42 members and are looking to expand when new projects come online. There is the potential to have more than 60 members in the next few years.” We can well believe that expansion is on the cards, especially when you understand exactly who the Chamber seeks to represent and bring together; “The Chamber represents a broad spectrum of relevant players in the mining industry, including small-scale miners, individuals, service providers and international mining companies of all sizes who have identified Tanzania as a worthwhile place to invest their money. These companies are carrying out a range of activities within the mining sector from exploration to production.”
76 | Endeavour Magazine
Mining is a complex industry to navigate, what with a number of different operational and investment tiers to take into account and then there’s the fact that Tanzania is a very attractive prospect for international investors as well. Being able to draw up a comprehensive communications strategy is vital; one that will reach local businesses as well as foreign parties, which is why promoting the current ongoing mining projects in the country is a top priority for Gerald, “As of now, we have five large scale gold mines and one large scale diamond mine. We have one world-class uranium project and one world class nickel project. These two are currently under care and maintenance, due to low commodity prices, but it’s expected that as soon as prices improve, mines will be constructed in the two project areas. There are also two advanced graphite projects and three others. There is one iron and one coal (advanced) project, and our plan is to develop them together. The coal project will feed a coal-fired power plant whose electricity will run a steel smelter to process the iron ore. There are also many other small and medium gold, rare earth and gemstone projects.“ Far from being a one-trick pony, Tanzania’s mining industry is offering a wide range of potential finds and savvy investors are
PANAFRICAN GROUP
Endeavour Magazine | 77
TANZANIA CHAMBER OF MINERALS AND ENERGY frequently seeing the sense in offering their knowledge and financial backing to mining operations within the country. As Gerald says,
“Encouraging all members to achieve best practice, in accordance with the Chambers commitments and in all aspects of
“Tanzania is a country where mining investors can come and
their business, with special emphasis on Occupational Health and
invest. The country has a rich geology with a lot of potential for
Safety (OH&S), environmental conservation and land management,
hosting world-class mines and it currently has a firm and strong
sustainable social development, commercial practices, building
Government, which is anti-corruption. We have just revived our
capacity in the workforce and working in partnership with
mining legislation and there are some piquant changes that people
educators and students.”
will definitely want to know about.”
This small part of the Chamber’s mission statement is a
You might be thinking that it’s a little strange that the Chamber
worthwhile endnote, as it succinctly demonstrates that Tanzania
would be so happy for external investors to come in, but regardless
is doing things that little bit differently. Safety, the future and
of where the funding comes from for new exploration projects, the
education are central concerns, and if that isn’t a good enough
benefits to local communities will always be felt, while also keeping
reason for outside investors to take some serious interest, then we
the industry as buoyant as possible. Gerald explained a little further,
don’t know what is.
“Mining provides employment, generates foreign exchange and
In terms of securing a profitable, informed and progressive
generates taxes for the country. Profits always eventually trickle
industry within Tanzania, Gerald and his team at the Chamber are
down to support social economic projects and give back to the
ready for whatever the future will bring, and will be consistently
communities close to successful projects.”
striving to improve the mining sector from the inside, out. We look
With a comprehensive mission in place to represent, educate,
forward to revisiting the chamber to see the results, especially
mediate and protect every facet of the mining industry in Tanzania,
when commodity prices improve and resting mines are opened
the Chamber of Minerals and Energy has been focussing on the
back up for new exploration projects.
elements that will best serve the interests of its members. Critically, this includes,
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www.shantagold.com Endeavour Magazine | 79
BAITALI GROUP WWW.BAITALIGROUP.COM // 00597 530 654
BUILDING TOGETHER Construction and agriculture – these industries evoke opposing images of urban and country development, hard to imagine working in harmony, and yet these are the two pillars of Suriname’s Baitali Group. In reality, both industries are cornerstones of civilisation, and one cannot exist without the other. For the Baitali Group, this is especially true: we spoke with Farsi Khudabux, company CEO, to talk about the two faces of the company, and what it is that pulls the Baitali Group together. WRITTEN BY ALICE INSTONE-BREWER
BAITALI GROUP
The Baitali Group run a regional operation, working in
Suriname and its neighbouring Guyana as well as throughout the Caribbean. Like any group, it is the umbrella for a range of companies, some of which were founded almost 40 years ago whilst others have only stood for four. This range of experience and services is the product of a long and evolving tale, including venture in construction, manufacture, agriculture and even mining. With these many strings to their bow, Baitali Group are a jack of many trades – but that hasn’t stopped them mastering some, too.
B
reaking the Group down, the umbrella covers the following companies: General contractors Aannemingsmaatschappij Baitali (AMB), manufacturers Baitali Pavement Products (BPP),
testing company Baitali Pavement Testing & Technologies (BPTT), Batali Mining and the agricultural Machinale Landbouw Nanni (MLN). Their customers range from rice exporters to government bodies, their contracting work covering everyone from local groups to multi nationals. Their collection of services first began to take form in 1960, with the construction company Surinaamse Constructie Maatschappij N.V. (SCM). SCM stood as the sole
Proud to support Baitali Group
company in the Baitali Group for 20 years, until AMB succeeded it in 1980. The second company would serve as a replacement to the first, rebranding the efforts and experience of the last two decades into a new and smoother machine. AMB’s core operations revolved, and still revolve, around infrastructure, performing engineering, construction and project management on major projects within road construction, dewatering, dike construction and irrigation works. It is a field
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82 | Endeavour Magazine
that comes laden with wide-spread implications for Suriname, and that’s a responsibility that AMB take seriously. In their own words; “Purposeful, smart and sustainably designed infrastructure is key to well-being, economic growth and prosperity.” AMB have delivered some of the largest and most complex civil infrastructure projects in Suriname, ranging from major irrigation projects to work on heavy duty pavements for the country’s ports and harbours. Not stopping at construction, AMB are also involved
in the design and operation of the infrastructure they help to create, including services in traffic planning, utility relocation and sustainable infrastructure design: “AMB combines smart planning, resilient design, technical know-how and an integrated approach to make visions become a reality. We have helped customers bring ambitious concepts to life, like large-scale urban development projects.” AMB’s extensive works represented the entirety of Baitali’s activities for six years, but as is often the pattern after six years of success, it became time diversify. Mr Baitali did so in a drastic direction, not complimenting his contractors with a manufacturer or expanded construction services, but instead branching into agriculture. To forgive the pun, the founder didn’t want to put all of his eggs in one basket – however, the agricultural company’s main output was in fact rice. MLN took on rice production head-on, launching into this new field by tackling every aspect of the industry, all the way from sowing through to processing and sale. Today, the company’s annual production is approximately 5000 tons, most of which is exported to Europe, whilst the remainder is sold on the local market. This two-pronged company continued in its approach, growing
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We would like to congratulate Baitali Group on their continued success.
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Tel. (597) 478272/ (597) 8868834 Fax: (597) 478273 Email:chisupmp@gmail.com Endeavour Magazine | 83
BAITALI GROUP in expertise and experience, until 2012, when the diversification
able to support, monitor and cover its own operations essentially
bug struck again. This time, three new companies were founded
head to toe – a position that results in consistency, reliability, and
in the space of two years, more than doubling the number of
significant savings along the way.
companies under the umbrella in a sudden burst of activity:
At the cusp of this game-changing expansion for the Group,
Baitali Pavement Testing & Technologies, Baitali Mining and Baitali
Farsi Khudabux took over the role of CEO. He has held the position
Pavement Products were all founded consecutively. These three
for the past five years, part of a total 12 with the Group. As an
companies worked in co-operation to streamline a new range of
overseer of this change, we asked Farsi what he felt Baitali’s key
operations that all built upon AMB’s origins: road laying, asphalt
to success has been. For him, it is always the people. “I started in
and concrete.
2005 as a Junior Engineer and worked my way through different
Founding three new companies hot on each other’s tails is a
positions and departments to the position that I have now. I think
costly and ambitious move, but in doing so, Baitali set themselves up
this is a good example of how the company facilitates personal
with a smooth, well-integrated series of operations. BPP specialise
growth.”
in asphalt, soil cement and subbase production, whilst Baitali
An inevitable part of any expansion, and particularly the
Mining produce aggregates perfect for this process. Their mines,
founding of new companies, is a growing body of staff. Farsi sees
currently operational in Apoera and Upper Corentyne (Kabalebo),
the protection of these assets as top priority, and what enables
also produce different sizes of dike stones that are essential for
Baitali to achieve the range of quality services they offer: “We
the Baitali Group’s infrastructure works, with enough left over
employ 400 people and we consider each one of them as the most
for profitable trade with the Apoera and Wakay port. Meanwhile,
important asset of our company. Our vision is to give employees all
BPTT is a certified research laboratory, providing geotechnical
the possibilities and opportunities (especially training) to develop
engineering and testing on all types of materials needed for road
themselves in a professional way. Ultimately, they shape the
construction. Between these triplets and AMB, the Baitali Group is
organization.”
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Despite this dedicated workforce and a wide and well-
goal, with so many of its branches supporting each other, whilst still
connected series of operations, Baitali’s market has thrown the
operating in their own rights. However, they aren’t stopping there
company several challenges. Farsi explained:
– with local funds an issue, the Group’s companies are starting to
“The industry Baitali Group operates in is currently experiencing
look abroad: “Baitali Group is attempting to spread its wings beyond
difficulties due to the economic recession in Suriname. Due to price
Suriname. We are aware that at some point, the small society and
drops of the country’s leading commodities (gold and oil), there has
scale of Suriname might become an obstacle in the expansion that
been a drastic cut in government earnings. Since the Government
we aspire towards.”
and government related institutions have been the prime market
Yet despite local strains, Baitali’s success in Suriname is far
of Baitali Group, this development also had its influence on our
from over. Quite the contrary – they have a slate of plans at home
company.”
as well as for abroad, including designing, building & financing a
When keeping afloat in difficult waters, attention can end up
project for reconstructing the East-West connection road into
turned on the competition. However, Farsi is more concerned in
Suriname, launching their own rice brand, and investing in ocean-
seeing Baitali being the very best that it can be, rather than focusing
going vessels for the export of their aggregates. Most notably, they
on undercutting its rivals. “As a large-scale company, we certainly
have recently won a contract for rehabilitating one of Suriname’s
face competition in Suriname, but our approach to competition is
busiest shopping streets. Suriname has been the home of Baitali’s
positive. In our industry, and certainly in an economy as small as
success since the 1960s, and the Group are far from flying the
Suriname’s, we don’t consider competitors as rivals. We believe
nest – more, their home is a country they will continue to benefit
that competition is a positive impulse to raise your bar. We just try
and improve through their infrastructural expertise, and from that
to do everything with an extra touch of our core values and always
foundation, can reach out to the wider world and see just how far
try to be one step ahead.”
their ambition takes them.
The Group has already positioned itself well to achieve this
BAITALI GROUP OF COMPANIES Duisburglaan 29 Paramaribo, Suriname
Tel: +597 530-654 Email: info@baitaligroup.com Website: Baitaligroup.com
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