Endeavour Mining

MINING

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MARCVENTURES HOLDINGS INCY Making A Difference

GUYANA GOLDFIELDS Setting The Gold Standard

LUCARA BOTSWANA (PTY) LTD

A DAZZLING BUSINESS MODEL

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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

since 2012 and not just in terms of safety. Looking to the global mining industry for inspiration as to sustainability, environmental responsibility and even community interaction. The result is a

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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.

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14 | Endeavour Magazine

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Lazenby Holdings are proud to support and work alongside Lucara Botswana

Physical Address: Unit 28 Kgale Mews Plot 113 Gaborone International Finance Park Gaborone, Botswana

Postal Address: PO Box 1729, Orapa Botswana

+267 779 03 155

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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

NOC MAN

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a potential commercial value that justifies the amount of work and investment going into it. Exploration is, essentially, an informed gamble, and when appealing to investors, this gamble must seem as limited as possible. “It is quite hard to find the right project, but the money is there. You have to make sure that your investors understand the industry and the real value of the project. If that can be presented to them, then everything will be fine.” A gamble will always be involved, and you can’t win every time, but through a careful approach and the right level of expert analysis, Tietto does its best to minimise its investors risks and maximise a speedy return on their investment – at least, as ‘speedy’ as anything can be in the world of mining!

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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

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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

Chisu Investment and Development N.V.

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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