International Resource Forum | Q2 2015 by International Resource Forum

Opportunity Worldwide | Q2 2015 | InternationalResourceForum.com

MINERALS COUNCIL OF AUSTRALIA MCA Director, Sid Marris

PREMIER SOLAR

Quality & Delivery

RED CAP INVESTMENTS

Innovative Energy With Mark Tanton

ABB MAURITIUS

EXCLUSIVE

THE GREAT KENYAN OIL DISCOVERY

Facilitating Mauritius’ Renewable Energy

SIMON BENNISON

THE PLEASURE OF REPEAL ASSOCIATION OF MINING & EXPLORATION COMPANIES

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AMEC provides members an advocacy power they could not otherwise generate. As a not-for-profit organisation, AMEC relies on membership to continue to drive positive changes in the business environment for the mining and exploration industry.

AMEC provides leadership on legislation and policies affecting your business including: • Exploration Development Incentive • Royalties

• Taxes, fees and charges

• Mining securities • Approvals

Call us today to discuss the benefits of AMEC membership on 1300 738 184

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ASSOCIATION OF MINING AND EXPLORATION COMPANIES

PUBLISHER’S NOTE Welcome to another edition of The International Resource Forum. What can I say? It has been a big year for the IRF. This year sees us firmly entrenched in Resource affairs and working directly alongside business to discuss their issues and sharing thier successes. We’ve managed a lot of things, including producing one of the most significant reports on uranium mining in our previous edition. We anticipate emerging economies will have specific need for the resource. We’re proud to say we’re covering two industry heavyweights in the following pages. You’ll find Ajay Vij, Country Director of ABB Mauritius, who discusses facilitating the islands renewable energy revolution and AMEC CEO Simon Bennison, who graciously pens an exclusive for us in our cover story. We also speak with Gurjit P. Jenkins about the Kenyan Oil discovery and its progress and we delve into the Indian Solar industry by speaking to Colonel Ajay Reddy, Vice Presodent od Premier Solar India, a pioneer in the Decentralized Distributed Generation (DDG) field, and is fast emerging as India’s leading Engineering Procurement and Construction Company. Finally, we had a great opportunity to attend both the Mines and Money and Investing in African Mining Events held in London to conduct on-site interviews and meet our clients face to face.

Until the next edition.

J. Landry Publisher

CONTENTS REGULAR FEATURES

Publisher’s Note

News in Brief

Project Updates

Appointments

Upcoming Events

AFRICA EXCLUSIVE The Great Kenyan Oil Discovery: Part I An exclusive with Gurjeet Phull Jenkins, Chairperson, Kenya Oil and Gas Association and Country Manager, Anadarko Petroleum

ABB MAURITIUS

MARK TANTON

Red Cap Investments

PREMIER SOLAR

ABB Mauritius Country Director, Ajay Vij Talks Facilitating Mauritius’ Renewable Energy Revolution

Red Cap Investments Innovative Energy An exclusive with Red Cap Managing Director, Mark Tanton

Kengas Group Quality, Flexible and Reliable Transport Solutions

CONTENTS

Q2 2015 | InternationalResourceForum.com

COVER STORY

ASIA Premier Solar Colonel Ajay Reddy Focusing on Quality and Delivery

AUSTRALIA Sydney Mining Club NSW Minerals Council CEO Stephen Galilee at the Sydney Mining Club

SIMON BENNISON

COVER STORY Association of Mining & Exploration Companies (AMEC)

CEO Simon Bennison pens an exclusive on restoring confidence in the mining sector after the repeal of the mining tax

Minerals Council of Australia (MCA) Sid Marris, MCA Director of Industry Policy on what the repeal of the carbon tax means to investor confidence

AMEC

EVENTS Mines and Money London 2014 Event Wrap-Up

8th Investing in African Mining Event Review

4th Mining Business & Investement Conference Event Wrap-Up

INTERNATIONAL RESOURCE InternationalResourceForum.com FORUM Publisher J. Landry

Media Director Tabrez Khokhar

Associate Editor Nicholas P. Griffin

Publication Layout Zahir Malik

Editorial Contributors Andrew Thompson Raeesah Khan

Web Production Raizwan Butt

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Q2 2015 | InternationalResourceForum.com

Kouga Wind Farm Turbines Red Cap Investments South Africa Company Profile, Pg 32

NEWS IN BRIEF MINING RIO TINTO RELEASES SOLID FIRST QUARTER PRODUCTION PERFORMANCE Rio Tinto chief executive Sam Walsh said “We continue to drive efficiency in all aspects of our business, which is reflected in our solid production performance during the first quarter. By making best use of our high quality assets, low cost base and operating and commercial capability our aim is to protect our margins in the face of declining prices and maximise returns for shareholders throughout the cycle.”

Highlights • Global iron ore shipments of 72.5 million tonnes (Rio Tinto share 57.3 million tonnes) were nine per cent higher than in the first quarter of 2014. Production of 74.7 million tonnes (Rio Tinto share 59.4 million tonnes) was a 12 per cent increase year on year. • Record first quarter bauxite production was four per cent higher than the first quarter of 2014, primarily due to a strong performance at Weipa. • Aluminium production in the first quarter was in line with the same period of 2014, despite the partial shutdown at Kitimat, which continues to prepare for first hot metal at the modernised smelter by mid-2015. • Mined copper production was 12 per cent higher than the fourth quarter of 2014, driven by higher throughput at Kennecott and Escondida. Lower grades at Kennecott were the primary driver of the nine per cent decline compared with the first quarter of 2014.

• During the quarter, the Government of Mongolia and Rio Tinto formally celebrated the major milestone of Oyu Tolgoi shipping one million tonnes of concentrate.

• Higher first quarter coal production was primarily driven by improved production rates at Kestrel South following the longwall ramp-up, increased semisoft production at Mount Thorley and Warkworth and higher thermal production at Hail Creek. • Titanium dioxide production was 17 per cent lower than in the first quarter of 2014 as production continued to be optimised to align with market demand.

GLENCORE’S FIRST QUARTER 2015 PRODUCTION REPORT Highlights: • Own sourced copper production down 9% to 350,700 tonnes, reflecting grade reductions at Alumbrera and Antamina due to mine sequencing and a planned maintenance shutdown at Collahuasi. • Own sourced zinc production up 16% to 356,200 tonnes, driven by the expansions at Lady Loretta (Mount Isa) and McArthur River. Some temporary plant downtime at McArthur River and lower grades at Kazzinc, Matagami and Rosh Pinah resulted, however, in an 8% decline on a quarterly sequential basis.

Q2 2015 | InternationalResourceForum.com

commented on the binding Production Finance Package stating:

Lomas Bayas Copper Mine. Image: Glencore

• Own sourced nickel production was 23,800 tonnes, up 7% relating to the higher contribution from Koniambo. Production issues at Koniambo, however, resulted in sequential quarterly production being down 8%. • Attributable ferrochrome production up 15% to 385,000 tonnes, driven by the Lion 2 expansion project. • Own sourced coal production was 35.6 million tonnes, 4% higher than the comparable period due to higher production from South Africa where two new projects were since commissioned. • Glencore oil entitlement production up 52% to 2.6 million barrels, reflecting the ramp-up at Badila and Mangara and the impact of higher ownership of the Chad assets following the Caracal acquisition in July 2014.

• Overall Q1 2015 copper equivalent production was up 7% compared to Q1 2014 and sequentially in line with Q4 2014.

ATRUM COAL NL SIGNS US$100M EQUIPMENT FINANCE & SUPPLY AGREEMENT Atrum Coal NL (“Atrum” or the “Company”) (ASX:ATU) (OTCMKTS:ATRCF) is pleased to announce it has signed a binding Equipment Finance Agreement with China Coal Technology & Engineering Group Corp (CCTEG) for the supply and finance of anthracite mining equipment to facilitate development at Groundhog North, part of the Company’s flagship Groundhog Anthracite Project (“Groundhog”), located in British Columbia, Canada. Atrum’s Vice President Operations, Mr Ben Smith

“This is a landmark agreement for the Company and significantly de-risks our funding requirements. Through this facility, we have the plant and equipment required to deliver the bulk sample mine, upgrade to a small scale mine and further ramp up and progress approximately 1.5Mtpa (ROM) production of the full scale mine.” “We have secured a strong partner in the world’s dominant supplier of specialist anthracite mining equipment, and a major supplier of high-quality specialist coal mining equipment. CCTEG is also leading research and development of new mining technologies and processes.” The Company will be able to commission mining equipment in stages, commensurate with production ramp up at Groundhog North, and in sequence with the various stages of permitting.

SESA STERLITE LIMITED RENAMED VEDANTA LIMITED Sesa Sterlite Limited (‘Sesa Sterlite’ or ‘the Company’) hereby announces that it has changed the name of the Company from its present name, ‘Sesa Sterlite Limited’ to ‘Vedanta Limited’. The Shareholders of the Company approved the name change of the Company through Postal 9

News In Brief

Ballot, results of which was announced on March 30, 2015. The name change to Vedanta Limited is now effective post issue of ‘Fresh Certificate of Incorporation’ issued by the Registrar of Companies, Goa, Ministry of Corporate Affairs (MCA), Govt. of India.

“The name change from Sesa Sterlite to Vedanta Limited promises a united and aligned identity, Vedanta, which positions us to create greater value for our domestic and global stakeholders, as a diversified natural resources group of companies. Vedanta embodies commitment to deliver world class excellence with low cost operations and superior shareholder returns,” said Mr. Tom Albanese, Group CEO, Vedanta, adding that this is a significant milestone which reflects Vedanta’s commitment to strengthen the linkage between our business, communities and stakeholders. Vedanta Limited, the Indian subsidiary of London listed, Vedanta Resources Plc, a globally diversified natural resources company, is engaged in the exploration and production of aluminium, zinc, lead silver, copper, iron ore, oil & gas and commercial power. The change in the name of the company will have no impact on the operations of subsidiary companies, viz., Cairn India Limited, Hindustan Zinc Ltd 10

(HZL) and Bharat Aluminium Co. Ltd (BALCO) and the divisions of Vedanta Limited.

TRAFFORD AND IRONCLAD MERGER RECEIVES COURT APPROVAL Trafford Resources Limited (ASX:TRF) is pleased to announce that the Federal Court has approved the Schemes in relation to the merger of the Company with IronClad Mining Limited (ASX:IFE). Trafford Shareholders and Optionholders approved the Schemes on 4 May 2015. Wednesday, 6 May 2015 will be the last day of trading in Trafford shares and options. The record date for determining entitlements to New IronClad Shares and Options will be Monday, 11 May 2015 and holding statements will be dispatched by Friday, 5 May 2015.

LUCARA DIAMOND ENTERS INTO A MEMORANDUM OF UNDERSTANDING TO SELL MOTHAE Lucara Diamond Corp. (“Lucara” or the “Company”) (TSX:LUC) (BOTSWANA:LUC) (NASDAQ OMX Stockholm:LUC) is pleased to announce that it has signed a Memorandum of

Mothae Diamond

Understanding (‘MOU’) with Paragon Diamonds Limited (“Paragon”) to sell its 75% interest in its Mothae diamond project based in Lesotho. The sale is subject to approval by the Government of Lesotho. The terms outlined in the MOU are summarized below: • Paragon will pay Lucara US$8.5 million in cash upon the closing of the acquisition. The transaction is subject to the negotiation of a definitive agreement with Paragon and the approval of the Government of Lesotho. • Paragon plans to polish a selection of diamonds recovered from the Mothae asset. Lucara will receive a payment equal to 5% of the profits achieved from the sale of the polished stones. These payments will continue for the processing of not less than 6.75 million tonnes of ore. • Lucara will also receive a

Q2 2015 | InternationalResourceForum.com

Government of Lesotho and Paragon to finalize the transaction and to transition ownership of the Mothae project to Paragon in an efficient manner.”

ACACIA RECEIVES APPROVAL TO COMMENCE MINING AT NORTH MARA

d Project, Lesotho. Image: Lucara Diamond payment equal to 5% of the profits achieved from the sale of rough diamonds not selected for polishing. These payments will also continue for the processing of not less than 6.75 million tonnes of ore. • Paragon will be acquiring Lucara’s Lesotho based company, which owns its 75% interest in the Mothae project. This will include all assets including plant and equipment, liabilities and the company’s rehabilitation obligations Paragon has agreed that it will employ all of the current employees working at Mothae.

Acacia is pleased to announce it has received the required final approvals from the Tanzanian Vice President’s Office in order to commence mining at the Gokona Underground project at North Mara. The timing of the receipt of the approval of the Environmental Impact Assessmentis in line with expectations, with commercial production from the project expected to commence in late Q2 and production ramping up through the remainder of the year. The Gokona Underground project is expected to produce

450,000 ounces over a 5 year life of mine, with all in sustaining costs of under US$750 per ounce. We are confident that the existing reserve will be extended as we increase our understanding of the ore body beneath the open pit, with potential for lateral extensions as well as the mineralisation remaining open beneath the 300 metre vertical depth cut off used in the current mine plan. Following the completion of the Gokona open pit in late Q2 2015, production from North Mara for at least the next five years will comprise a blend of high grade underground material from the Gokona underground and open pit material from the Nyabirama pit. Together these are expected to allow the North Mara mine to sustain annual production rates in excess of 250,000 ounces of gold at very competitive costs.

William Lamb, President and Chief Executive Officer, commented, “We are pleased to announce that we have agreed terms with Paragon on the sale of Mothae. The transaction returns cash to Lucara and allows us to participate in future sales of diamonds from Mothae. We are working with the

North Mara, Tanzania. Image: Acacia Resources

NEWS IN BRIEF OIL & GAS GASTAR EXPLORATION ANNOUNCES AGREEMENT TO SELL NON-CORE ASSETS IN OKLAHOMA Gastar Exploration Inc. (NYSE MKT: GST) (“Gastar”) announced today that it has entered into a purchase and sale agreement to sell certain non-core assets in Oklahoma to an undisclosed private third party for approximately $46.2 million, subject to certain adjustments and customary closing conditions. The transaction is expected to close on or before June 22, 2015, with a property sale effective date of April 1, 2015. “We are pleased to announce another sale of non-core acreage in Oklahoma at an attractive valuation,” said

J. Russell Porter, Gastar’s President and CEO. “The sale of these assets will allow us to continue focusing on our Hunton Limestone exploration and development programs in our core Oklahoma acreage within and around our West Edmond Hunton Lime Unit (“WEHLU”) and AMI joint venture area while retaining a substantial acreage position with Stack Play potential. Following the completion of this transaction, in our MidContinent area we will have approximately 103,600 net acres with Hunton Limestone Oil Play reserves or potential, approximately 41,500 net acres with Meramec Shale/ Mississippi Lime potential and 44,200 net acres with Woodford Shale potential.” “We currently believe we will have ample liquidity to support our capital expenditure plans for the remainder of 2015, and the proceeds from this sale will further enhance our liquidity

and our financial flexibility regarding future capital activities.” The assets to be sold include approximately 29,300 gross (19,000 net) acres in Kingfisher County, Oklahoma. For the most recent three months ended March 31, 2015, net production from the associated acreage averaged approximately 170 barrels of oil equivalent (“Boe”) per day from 38 gross (16.7 net) wells, of which 57% was natural gas. At December 31, 2014, proved reserves attributable to the acreage was 379,000 Boe, of which 63% was natural gas.

GE OIL & GAS DEVELOPS NEXTGENERATION ROOTS* ADVANCED COMPRESSOR Advanced Compressor performance savings of minimum 5% above similar current offerings Compression energy could account for as high as 60% of a plant operation costs Roots Compressor was developed and tested at GE’s facility in Indiana for global deployment

Oklahoma-double-pump. Image: Gastar

GE Oil & Gas (NYSE: GE) today announced the development of the next-generation RootsTM advanced efficiency centrifugal compressor to significantly boost the energy

Q2 2015 | InternationalResourceForum.com

TEMPO AUSTRALIA AWARDED SUBCONTRACT ON THE GORGON PROJECT • Tempo Australia has been awarded a subcontract on the Chevron-operated Gorgon Project on Barrow Island, Western Australia; IAGT Advanced Compressor Rendering. Image: GE Oil and Gas

efficiency of industrial air/gas and wastewater applications. Building on more than 90 years of Roots compressor technology, this compressor will help operators reduce plant energy consumption. Compression energy accounts for up to 60% of entire plant operation costs because of its intensive energy use, making it an obvious target for efficiency savings. The design is more efficient than turbo blowers and fans. It improves energy efficiency in comparison to current comparable offerings by at least 5 percent and can translate into savings of $1.5MM* over 10 years of operation for a medium-size compressor/impeller. The next generation compressor is designed to integrate with existing plant lines without the need for reconfiguration. “The advanced Roots compressor is a major step in the evolution of our centrifugal compressor technology,” said

Daniela Sozanski, Roots global product line manager, GE Oil & Gas. “GE has made significant investment to combine efficiency with robustness and longevity at a challenging time when efficiency is more important than ever.” The RootsTM Advanced Compressor deploys a proven design by incorporating the compressor and gas turbine technology expertise of GE Oil & Gas and GE Power & Water. The compressor efficiency gain was achieved by advancing the design of the compressor impeller, volute, variable diffuser vanes, inlet guide vanes and controls. Extensive computational fluid dynamics and finite element analysis were performed to determine optimum configurations. The advanced technology is now available in the robust Roots centrifugal product lines for applications such as, air separation, sulfur recovery, and waste water aeration.

• Tempo will provide construction, precommissioning and commissioning services. Mining and energy sector services company, Tempo Australia Limited, is pleased to announce it has been awarded a subcontract for the provision of temporary craft labour for construction, pre-commissioning and commissioning services to the Mechanical, Electrical and Instrumentation (ME&I) contractor on the Chevronoperated Gorgon Project on Barrow Island, Western Australia. Tempo will provide skilled personnel to support the ME&I scope on a call-off basis and has the potential to create in excess of 100 new local jobs. Tempo Chairman Carmelo Bontempo said: “We are extremely pleased to secure this contract on the Gorgon Project. We see it as further testament to our ability to deliver high quality, cost effective services and solutions to leading mining and energy 13

sector clients. We have built a strong reputation based on our people, performance, productivity and safety. We look forward to demonstrating these capabilities on Gorgon.”

funds in the next three years.

in Block 15, offshore Angola.

The pipeline, scheduled to begin service in 2017, requires federal and other regulatory approvals.

Operated by ExxonMobil, the deepwater project is expected to produce around 70,000 barrels of oil per day at peak.

DUKE ENERGY BUYS 7.5% OF PREVIOUSLY ANNOUNCED SABAL TRAIL PIPELINE

Sabal Trail Transmission, a joint venture of the pipeline’s owners – Spectra Energy, NextEra Energy, Inc., and now Duke Energy – seeks to secure those approvals by early 2016 and begin pipeline construction later that year.

“This is the first of BP’s planned start-ups for 2015 and is another successful project from this prolific block,” said Darryl Willis, BP’s regional president, Angola.

Duke Energy has bought a 7.5-percent ownership stake in the proposed and previously announced $3-billion Sabal Trail natural gas pipeline that will traverse Alabama, Georgia and Florida to meet the growing need for natural gas in those states. Duke Energy’s commercial power business unit will invest approximately $225 million in the approximately 500-mile underground pipeline – from Tallapoosa County, Ala., to Osceola County, Fla. – during the next seven years. The company expects to invest more than 90 percent of those

Duke Energy acquired its ownership share from Spectra Energy, resulting in a pipeline ownership structure of Duke Energy (7.5 percent), NextEra Energy (33 percent) and Spectra Energy (59.5 percent).

START UP OF KIZOMBA SATELLITE FIELDS OFFSHORE ANGOLA BP confirmed the start of oil production from the Kizomba Satellites phase 2 development

“We expect to follow this up later in the year with the Greater Plutonio phase 3 project in neighbouring Block 18 which is operated by BP.” Kizomba Satellites phase 2 is a subsea infrastructure development of the Kakocha, Bavuca and Mondo South fields, tied back to the existing Kizomba B and Mondo Floating Production, Storage and Offloading (FPSO) vessels and is expected to recover around 190 million barrels of oil. The project scope includes subsea wells, FPSO topside

Kizomba B FPSO. Image: BP p.l.c

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modifications and installation of flowlines and subsea equipment. The development is located approximately 150 kilometres off the coast of Angola in water depths of around 1350 metres.

2006, when, following an international tender, the company was granted Area 4 offshore block located in the Rovuma basin in the north of the country.

Interpretation of the recent NMC3D seismic survey identified the possibility of a potentially large structural extension to the southern flank of the Callawonga field.

Partners in Block 15 are BP (26.67%); ExxonMobil (operator, 40%); ENI (20%); Statoil (13.33%). Sonangol is the concessionaire.

Callawonga-11 is a stepout well being drilled 670 metres south-east of the Callawonga-9 production well to appraise this upside potential.

CLAUDIO DESCALZI, ENI’S CEO, MEETS THE PRESIDENT OF MOZAMBIQUE, FILIPE NYUSI,

If the upside structural model is confirmed, there is potential for a significant increase of the estimated reserves in the Callawonga field.

The President of Mozambique, Filipe Nyusi, for the first time since his appointment, met in Maputo Eni’s CEO, Claudio Descalzi. Maputo (Mozambique), 6 May 2015 - The President of the Republic of Mozambique, Filipe Nyusi, for the first time since his appointment last January, met today in Maputo Eni’s CEO Claudio Descalzi. The meeting was also an opportunity for Eni’s CEO to update the President on the progress of ongoing projects in Mozambique over the development of the Area 4, where resources of approximately 85 Trillion cubic feet of gas in place have been so far discovered. Eni has been present in Mozambique since

Cooper Basin, South Australia, spudded on Wednesday 6 May 2015 at 04:00 hours. At 06:00 hours this morning, the rig was drilling ahead at 51 metres in 12-1/4 inch surface hole.

Claudio Descalzi, Eni CEO. Image: ENI s.p.a.

COOPER SPUDS CALLAWONGA-11 WELL Cooper Energy Limited (ASX: COE) reports that Callawonga-11, an oil appraisal well located in PPL 220 (refer map following) on the western flank of the

The Birkhead Formation and Hutton Sandstone are secondary targets of Callawonga-11. Windmill-1 (2.9 km southeast) recovered 25 barrels of oil on drill stem test (DST) of the Birkhead Formation, and oil shows were observed in Shelly-1 (1.9 km southwest). Callawonga-11 is expected to take 7 – 10 days. Following Callawonga-11, the EDA Rig 930 will move 3 km north to drill Sensation-1, an oil exploration well in PRL 98 (refer map following) to conclude the drilling campaign. Cooper Energy holds a 25% interest in PPL 220, with the balance held by the Operator, Beach Energy Limited. 15

NEWS IN BRIEF RENEWABLE ENERGY ENEL GREEN POWER BEGINS CONSTRUCTION ON CARRERA PINTO SOLAR POWER PLANT IN CHILE Once fully operational, Carrera Pinto will have an installed capacity of 97 MW and will be able to produce more than 260 GWh each year EGP will be investing a total of approx. 180 million US dollars in construction of the plant Enel Green Power (“EGP”) has begun construction of the new Carrera Pinto solar photovoltaic power park in Chile. With a total installed capacity of 97 MW, once fully operational the new plant, will be able to generate more than 260 GWh per year, equivalent to the annual

electricity consumption of almost 122,000 Chilean households, and will avoid the annual emission of more than 127,000 tonnes of CO2 into the atmosphere. The solar park is located in the Atacama region and owned by Parque Solar Carrera Pinto S.A., a subsidiary of Enel Green Power Chile Ltda. It will be completed and enter service in the second half of 2016. EGP will be investing a total of approximately 180 million US dollars in the construction of the facility in line with the growth targets set out in EGP’s current business plan. The business is financing the projects with its own resources. The project will be supported by a long-term power purchase agreement (PPA) with Empresa Nacional de Electricidad SA (Endesa Chile). The energy generated by the plant will be delivered to

SIC (Sistema Interconectado Central), Chile’s Central Region Transmission Network.

YINGLI REACHES OVER 13 GW OF SOLAR PANEL DELIVERIES WORLDWIDE Yingli Green Energy Holding Company Limited (NYSE: YGE) (“Yingli Green Energy” or the “Company”), one of the world’s leading solar panel manufacturers, known as “Yingli Solar,” today announced that it reached more than 13 gigawatts (GW) of cumulative global solar panel deliveries by the end of the first quarter of 2015. The Company’s global fleet can now produce approximately 16 billion kilowatt-hours (kWh) of clean solar electricity each year, which is almost enough energy to meet the city of Beijing’s residential power consumption in 2014. In total, the energy produced by all deployed Yingli Solar panels can offset nearly 9 million tons of carbon emissions each year, which is equivalent to taking about 1.7 million cars off the road.

Pullinque, Chile - 51,4 MW hydroelectric plant. Image: EGP

“We are incredibly proud of reaching this historic milestone, which is a testament to both our innovative, high quality solar products and

Q2 2015 | InternationalResourceForum.com

to our dedicated pursuit of Yingli’s mission to bring green energy to all,” commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. “Together with our partners, we have made solar power -- and the significant environmental and economic benefits it provides -accessible to communities in nearly every corner of the world.”

MIDAMERICAN ENERGY ANNOUNCES PLANS FOR INVESTMENT OF APPROXIMATELY 900 MILLION IN NEW WIND DEVELOPMENT MidAmerican Energy Company has filed plans with the Iowa Utilities Board for the development of up to 552 megawatts of new wind generation in Iowa. MidAmerican Energy is in the process of obtaining necessary permits and easements for the construction of wind farms at two new sites. Pending IUB approval, the company plans to begin construction in spring 2016, with completion scheduled for the end of 2016. Total cost of the project is approximately $900 million. Bill Fehrman, president and CEO of MidAmerican Energy said, “We are very excited about building additional wind

farms that will produce clean, carbon-free energy.” Fehrman said the company continues to focus on developing wind projects because wind generation offers many clear benefits for MidAmerican Energy customers. “Wind continues to be a factor in keeping our customers’ electricity rates among the lowest in the nation.” Iowa Gov. Terry Branstad noted that MidAmerican Energy’s efforts have helped the state become a national leader in wind generation. “Iowa derives a greater percentage of its electricity from wind than any other state, and we’re second in the nation in the number of people employed in the wind industry,” Gov. Branstad said. “Thanks to our low electricity prices and commitment to renewable energy, major tech companies and other energy-intensive businesses are interested in locating and expanding facilities here, which is good economic news for all Iowans.”

“If we look back a little more than a decade ago, we did not own any wind generation resources across our system,” said Fehrman. “As a company, we made a commitment to developing wind as a resource for our customers, and we’re proud to say we’ve followed through with and expanded upon that commitment. Once the proposed projects are completed, we’re projecting that 57 percent of our total retail load could be served with energy from these turbines. This puts us in a strong position to comply with future carbon emissions limits without placing the significant financial burden of that compliance on our customers.” “We have abundant wind resources in Iowa and community leaders and landowners who want wind development in their areas,” Fehrman said. “Over the next 30 years, an estimated $1.5 billion in property taxes and lease payments will flow to local communities as a result of our wind projects.” 17

News In Brief

AMRUMBANK WEST WIND FARM STARTS PRODUCING ELECTRICITY E.ON reaches milestones in offshore wind power in German and U.K. North Sea Two E.ON offshore wind farms are gradually coming online, further increasing the economic significance of the company’s renewables business. Humber Gateway began exporting power to the U.K. grid at the end of February. Now Amrumbank West, which is located in the German North Sea, has also started producing power. The power from the first of its 3.6 megawatt turbines flows to an offshore transformer and converter platform from which it is exported via a 85-kilometer subsea cable, which comes ashore near Büsum, about 100 kilometers northwest of Hamburg. The installation of turbines

is moving forward. Humber Gateway will be completed this summer, Amrumbank West this fall. The two farms will have an aggregate capacity of more than 500 megawatts. Both projects are on schedule. Amrumbank West recently achieved another important milestone with the installation of the last of the foundations for its 80 turbine towers. The service center on Helgoland island, from which the operation and maintenance of the wind farm is monitored and managed, has also been completed. The building provides 35 workstations, storage space and helicopter hangar nearby.

SOLARCITY CLOSES $500 MILLION AGGREGATION FACILITY Solar leader brings BofA Merrill Lynch, Credit Suisse and Deutsche Bank together to finance more than 500 MW of solar projects.

Amrumbank, North Sea, Germany. Image: E.ON

SolarCity (NASDAQ: SCTY) announced it has closed a $500 million financing aggregation facility with BofA Merrill Lynch, Credit Suisse and Deutsche Bank. The loan facility is expected to be the largest of its kind for distributed generation solar projects, and once deployed will finance more than 500 MW of solar power systems for homeowners, businesses and government organizations. The facility will be secured by a portfolio of high quality, long-term customer systems and contracts. Through a novel structure, the financing will allow SolarCity to fund customer installations at an earlier stage in their development cycle, enabling a faster return of working capital to support the rapid growth in SolarCity’s forecasted installations. When fully drawn, SolarCity will be able to finance installations for tens of thousands of homes and businesses throughout the United States. The clean energy provided by these systems will offset carbon dioxide emissions over the lifetime of the systems. The revolving loan will permit fully developed systems to be continuously refinanced through ongoing securitizations or other capital markets solutions, further driving down the cost of a new system to residential, commercial and government customers, while providing committed capital for SolarCity to finance the design and installation of new systems.

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TRINA SOLAR ESTABLISHES NEW MANUFACTURING BASE IN THAILAND Trina Solar Limited (NYSE: TSL) (“Trina Solar” or the “Company”), a global leader in photovoltaic (“PV”) modules, solutions, and services, announced that it has set up Trina Solar Science & Technology (Thailand) Ltd., a subsidiary company in Thailand to build a manufacturing facility with 500 MW of module and 700 MW of cell production capacity. Trina Solar will invest US$160 million in the facility, which is located in Rayong of Thailand. Production is projected to commence in late 2015 or early 2016. Mr. Zhiguo Zhu, COO and President of Module Business Unit of Trina Solar, commented: “Thailand is an ideal location for us to build a new manufacturing base due to its proximity to key emerging markets in the Asia Pacific region as well as its favorable investment environment in terms of land acquisition and labor costs. The new factory will serve to diversify and expand Trina Solar’s existing manufacturing capacity to meet growing demand from both our established key markets and emerging markets. We believe diversifying our global manufacturing capacity will allow us to better leverage resources more cost effectively, enhance our

competitiveness in overseas markets and enable us to increase our global market share. Besides, Thailand is also a particularly attractive PV market given its sunny environment, long-term PV subsidies, and favorable government policies towards the solar sector. We are also very delighted that our investment in the region will help create jobs and support local economic development, as well as further develop the solar industry in Thailand.”

VESTAS RECEIVES 72 MW ORDER IN U.S. STATE OF KANSAS Order is Vestas’ first project with RPM Access Vestas has received a firm and unconditional order in the United States for 36 V1102.0 MW turbines to power the Marshall Wind Farm in Marshall County, Kansas.

to purchase such high quality turbines that are manufactured in the United States,” says Felix Friedman, Vice President of Development. “The Vestas V110-2.0 MW wind turbine generators on 95 meter towers provide RPMA an optimal match to the wind conditions at the northeast Kansas site. Together with Vestas’ longterm service agreement and our strong local partnerships, we are looking forward to realising the full potential of the Marshall Wind Farm.” “We are delighted to embark on this long-term partnership with RPM Access,” says Chris Brown, President of Vestas’ sales and service division in the United States and Canada. “In addition to increasing the amount of clean and affordable energy available to the people of Kansas and Missouri, the 20-year service agreement ensures RPM Access will receive unparalleled service and optimal energy production from their turbines and that these communities will benefit from a steady source of quality jobs.”

The order was placed by RPM Access LLC, an independent developer, owner and operator of wind farms in the Midwest. The project’s scope includes supply and commissioning of the wind turbines as well as a 20-year Active Output Management (AOM 5000) service agreement designed to maximize energy production. The announcement marks the first turbine supply contract between Vestas and RPM Access.

Macho Springs, USA. Courtesy of Vestas Wind Systems A/S

”RPM Access is very pleased 19

PROJECT UPDATES STRATEX UPDATES ON DEVELOPMENT AND EXPLORATION PROJECTS IN TURKEY Altintepe Gold Project, Muratdere Copper Project, and Karaağaç Exploration Project Stratex International Plc, the AIM-quoted exploration and development company, is pleased to provide a progress update on its two advanced exploration projects in Turkey. At the Company’s 45%-owned Altintepe Gold Project (‘Altintepe’), its joint- venture partner Bahar Madencilik has been funding all preproduction costs, including US$39 million towards construction. Meanwhile, at its Muratdere

copper project (‘Muratdere’), the Company’s joint-venture partner Lodos Maden Yatırım Sanayii ve Ticaret A.Ş. (‘Lodos’) has recently completed a feasibility study as the final part of its commitment to earn to 70% of the Project and has now provided a revised base-case financial model for the project. Highlights: Altintepe • Construction of three-stage crushing plant and ADR plant well advanced and commissioning of the ADR plant is projected for lateJune; • Unseasonably wet weather persisted until late April and final construction of leach pad commencing shortly; and • Court decision pending on legal challenges directed at the original Environmental Impact Assessment.

Altintepe construction upgraded. Image: Stratex

Muratdere • Revised base-case model for the copper project using current metal prices delivers a net income after tax of US$90 million with IRR of 29% and NPV(7.6%) of US$35.9 million; and • Stratex in discussion with partner Lodos to determine the best way forward for the Company. Karaağaç • Exploration underway with the intention of drilling as soon as forest permits have been granted; and • Programme funded by partner Anadolu Export, who will pay Stratex US$500,000 cash if a minimum JORC-compliant indicated resource of 50,000 oz gold is confirmed, plus a 1.5% net smelter returns royalty on any future mineral production. Bob Foster, Stratex Chief Executive, said, “Construction of the mine has progressed, despite heavy precipitation continuing into late-April. It is unfortunate, however, that these conditions have continued to delay construction of the leach pad but dry weather can be expected to be the norm now and final construction should commence shortly. We anticipate giving a more detailed update following a site visit by our technical team.”

Q2 2015 | InternationalResourceForum.com

WORLD’S LARGEST ENGINE POWER PLANT BY WÄRTSILÄ INAUGURATED IN JORDAN

“It is a great pleasure to witness the inauguration with Wärtsilä and other project partners. We are very proud of the world’s largest engine power plant,” says Taemin Kim, Administration Manager of AAEPC.

The inauguration of IPP3, the world’s largest internal combustion engine (ICE) power plant, took place at the plant site near Amman, Jordan. The plant is powered by 38 Wärtsilä 50DF multi-fuel engines with a combined capacity of 573 MW. In recognition of its world record size, the plant has been accepted into the Guinness book of records.

IPP3 will be used for covering the sharp daily peaks of electricity demand in Jordan. Fast starting and the capability of ramping output up and down quickly and efficiently are key features of ICE technology. “By starting one engine at a time, the plant can follow the demand very precisely,” Kim confirms.

The ceremony was hosted by the owner of the plant AAEPC (Amman Asia Electric Power Company) and was held under the patronage of His Majesty King Abdullah II Ibn Al Hussein of Jordan. Wärtsilä has been responsible for leading the EPC (engineering, procurement and construction) consortium delivering the largest Smart Power Generation plant in the history of the company.

IPP3 and its sister plant, the 250 MW IPP4, have been in commercial operation since late 2014. According to data provided by the Jordanian grid operator NEPCO, their impact on the Jordanian power grid has been remarkable. Since the two engine plants have covered most of the peak demand, large gas turbine power plants in the grid have been released from this task. As a result,

The tri-fuel power plant IPP3. Image: Wärtsilä

turbines now produce steady baseload, operating much more efficiently. This leads to significant savings in fuel, energy costs and CO2 emissions.

DANTYSK OFFSHORE WIND FARM FORMALLY OPENED German Federal Minister for Economic Affairs Sigmar Gabriel, Swedish Minister for Enterprise and Innovation Mikael Damberg, Hamburg Mayor Olaf Scholz and Torsten Albig, Prime Minister of the State of Schleswig-Holstein, joined Magnus Hall, President and CEO of Vattenfall, and Dr Florian Bieberbach, CEO of SWM, in Hamburg today to celebrate the formal opening of the DanTysk offshore wind farm. Located 70 kilometres west of Sylt Island, the DanTysk offshore wind farm is the first infrastructure project jointly implemented by Vattenfall and SWM as part of the energy transition in Germany. Vattenfall holds a 51% stake in DanTysk Offshore GmbH, which is responsible for construction and operation, while SWM holds 49%. The site comprises a total of 80 Siemens wind turbines in the 3.6 megawatt (MW) class with a total installed capacity of 288 MW. The capital investment is more than EUR 1 billion. DanTysk will generate climate-neutral power equivalent to the annual consumption of more than 400,000 average households. Offshore construction started in February 2013. 21

APPOINTMENTS AFREN APPOINT NEW CEO Alan Linn has been appointed as Afren’s new CEO bringing to ‘New Afren’ 35 years’ of industry experience and a successful track record implementing strategic change within established businesses.

and operational results within both large and small oil and gas companies. Following Alan Linn’s appointment as CEO, Toby Hayward will be stepping down as interim CEO with immediate effect and will continue as an independent non-executive director of the Company.

succeeding Henry Legarre who is leaving the Corporation.

In addition, the Board will be further strengthened with the appointment of new directors to broaden its expertise in due course and an executive search firm is being retained to assist with this process.

Henry has been an important member of Oryx Petroleum from its earliest days and has been instrumental in the development of our team and asset base. I want to thank him for his extensive contributions and we wish him well in his future endeavours.”

ORYX PETROLEUM ANNOUNCES APPOINTMENT OF NEW COO

Commenting today, Oryx Petroleum’s Chief Executive Officer, Michael Ebsary, stated: “We are pleased to appoint Vance to the role of Chief Operating Officer while we regretfully announce Henry’s departure from our team.

Alan has 35 years of international experience in the oil and gas industry developing and restructuring businesses in challenging and diverse environments.

Vance Querio joined Oryx Petroleum in March 2012 and served as its West Africa Regional Manager before his appointment as Chief Operating Officer. Prior to joining Oryx Petroleum, Mr. Querio worked with Addax Petroleum, where he was Chairman and Managing Director for its Nigeria Business Unit, leading Addax Petroleum’s operations as the largest independent oil company in Nigeria, with peak production capacity of 120,000 barrels per day.

He has been successful in implementing strategic change within established businesses and has over 12 years’ experience working with executive teams and boards in companies listed in the UK and Australia. He has a strong track record of delivering sound commercial

He previously provided executive management and professional engineering services for several oil industry companies including 20 years in various positions working for Chevron, including project management in the Middle East, West Africa, North and South America and South East Asia.

Image: © Bloomberg

The Board of Afren is delighted to confirm the appointment of Alan Linn as the new Chief Executive Officer and executive director of Afren with immediate effect.

Vance Querio promoted to role of COO Oryx Petroleum Corporation

Image: Courtesy of LinkedIn

Limited (“Oryx Petroleum” or the “Corporation”) today announces the appointment of Vance Querio as its Chief Operating Officer. Mr Querio is

Q2 2015 | InternationalResourceForum.com

LUNDIN PETROLEUM APPOINTS SENIOR VICE PRESIDENT DEVELOPMENT AND OPERATIONS Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that Mr. Nick Walker will join Lundin Petroleum’s management team as Senior Vice President Development and Operations.

Image: Courtesy of LinkedIn

Mr. Walker will join Lundin Petroleum with immediate effect and will have the responsibility of overseeing all worldwide development projects as well as being a member of Lundin Petroleum’s Investment Committee. Mr. Walker joins Lundin Petroleum from Africa Oil Corporation where he has been Chief Operating Officer since 2012. From 2009 to 2011 he held the position of Executive Vice President for International Operations at Talisman Energy. Prior to this he held various managerial, operational and commercial positions at

Talisman Energy, Bow Valley and BP. Mr. Walker holds degrees in Mining Engineering from Imperial College London, Computer Science from University College London as well as an MBA from City University Business School also in London. Ashley Heppenstall, President and CEO of Lundin Petroleum comments: “We welcome Nick to our senior management team. He has been involved in developing and operating major projects around the world and his experience will be invaluable as we continue to grow our production portfolio.”

SUNEDISON APPOINTS PANCHO PEREZ AS EVP AND COO SunEdison, Inc. (NYSE: SUNE), the world’s largest renewable energy development company, announced that Pancho Perez has been appointed to the newly created role of Executive Vice President and Chief Operating Officer.

history at SunEdison and Terraform, he is the ideal choice to lead operations for our development and asset management platform, including EPC, supply chain, services and asset management,” said Ahmad Chatila, President and Chief Executive Officer at SunEdison. “Our massive opportunity for growth during the transformation of the power sector requires a focus on scaling our systems and processes. We are structuring SunEdison for sustained, rapid growth.” “I am excited to extend my role at SunEdison to work with Ahmad and our team to rapidly expand our development and asset management capabilities around the world,” said Pancho Perez, Executive Vice President and Chief Operating Officer at SunEdison. “We are now the largest renewable development company in the world and see tremendous opportunity for growth as solar and wind resources become the preferred new generation resources globally.”

Mr. Perez’s appointment extends his role as COO for TerraForm Power to leadership in the same role across the SunEdison platform. Mr. Perez has previously served as President of SunEdison Europe, Middle East, and Latin America. “With Pancho’s successful

Image: SunEdison 23

Q&A

THE GREAT KENYAN OIL DISVOVERY Part I

An exclusive with Gurjeet Phull Jenkins, Chairperson, Kenya Oil and Gas Association and Country Manager, Anadarko Petroleum By: Andrew Thompson 24

Q2 2015 | InternationalResourceForum.com

ince the announcement of Kenya’s first major oil discovery by joint partners Tullow and Africa Oil caught the world’s attention in 2012, there has been considerable hype surrounding the frontier region’s potential. Of the 1.3 billion barrel estimated in the South Lokichar Basin in North West Kenya’s Turkana County, 600 million barrels have been confirmed. The discovery in Turkana province now sits at an estimated 600 million barrels. Tullow and Africa Oil are now working towards its development and commercial viability. There are host of other companies now carrying out exploration work in Kenya across the highly prospective East Africa region, including Eni, Total, Anadarko and the BG Group. The Kenyan government is in the process of enacting a wave of regulatory reforms and legislations to ensure it capitalises locally on the developing industry. However, the process has not been smooth sailing, with uncertain regulations, benefit sharing arrangements, political disputes and local community tensions, security issues and a falling oil price ensuring that the road from discovery to production will need to be navigated carefully. -In this first part of a two series interview, Andrew Thompson speaks to Gurjeet Phull Jenkins, Chairperson of Kenya Oil and Gas Association, which was established this year to support industry development within of the sector. She is also Country Manager for American Anadarko Petroleum, which is exploring for oil off Kenya’s East Coast.

Gurjeet Phull Jenkins, Chairperson, KOGA

Andrew Thompson: How much has the Kenyan oil sector grown over the last five years? Gurjeet Phull Jenkins: There has been massive growth. I was with the sector in Kenya six years ago, in its initial stages of growth, where you had more of the small brief case companies looking at Kenya. It has now moved to Kenya having large and serious investors in the country, so you have the likes of BG Group, Total, Anadarko, Eni and others looking into investment in Kenya, so definitely it’s not just the number of companies that’s increased; it’s also the portfolio, the size of investment in Kenya. AT: How much potential is there in Kenya’s hydrocarbon sector? GPJ: The potential of the resource is there. We’ve seen what’s happened in the Northern side of Kenya, where they’ve had a couple of good discoveries, so we know there is a system there. Off shore as well, although there haven’t been any major significant discoveries, there have been a few discoveries that have at least displayed that there is a working petroleum system there. 25

It’s really just a question of continuing the exploration program. It’s just going to take a lot of work. It’s going to take a lot of investors to come into the country. Definitely there is the need to build investor confidence, so companies can come in to the country and tap into the potential.

“One of the key

factors a company will look at is the tax regime of a country AT: The government has embarked on a wave of legislative reforms to the sector. How will it affect investor sentiment and the sector moving into the production phase? GJP: There is a general consensus that we are in a good place, in the sense that the government has started working on these bills and policies; and companies have not gone too far into exploration without these guidelines – however there is still a lot of work in ensuring that these bills and policies encourage the investors to come into the country and increase exploration.

through its tax system, but at the same time managing a tax system that attracts further investment. Right now where we are at, we still need more investors to come in. We need more partners coming in. It’s spreading that risk, which is very standard in the oil and gas sector. AT: Are there fears that a developing oil sector could bring with it conflict and social and economic issues, as it has in other parts of Africa? GJP: There is that concern. The Government has outscored the development of a petroleum master plan and one of the components in that master plan is drawing examples from different countries, not just countries where it works, but also in countries where it hasn’t worked, so we can do things differently. Companies are dedicated to working with the host government as well as the local communities, so with the support of the Government we can avoid the conflicts. If that project is followed through and as the sector develops you are using a document like that as a basis, there’s less of chance of it going wrong.

One of the key factors a company will look at is the tax regime of a country, which usually has a major impact on investor confidence both at the time that an investor is carrying out a risk assessment of the country, as well as what kind of fiscal stability there is while the company is operating in the country. When it’s not favourable it impacts on the cost of exploration. When a company has different countries and different opportunities and has a large investment portfolio, they are normally going to explore in regions that make more economic sense. We as the investors are still working with the Government so as to ensure there is fine-tuning that balance between bringing in local income 26

Oil Africa worker at a water plant

Q2 2015 | InternationalResourceForum.com

AT: There have been a number of terrorist attacks by Muslim extremist group Al Shabab in exploration areas recently, how could this effect the development of the sector? GJP: It does have an impact on operations, in extreme cases a company might not be able to access a certain area, because they are at high risk â&#x20AC;&#x201C; we know some companies have had that issue here. On the other side, it also increases the cost of exploration. In some cases the security plan can be about a quarter of the entire exploration cost, which is a huge number. Some of the companies will look at the security situation in a particular area and that can actually determine whether they actually want to go into that region or not. -In our next edition, we continue our focus on the Kenyan oil discovery as we speak to: Alex Budden VP External Relations, Africa Oil. IRF

Andrew Thompson is a journalist, formerly with the Australian Broadcasting Corporation, now focusing on the mining and resources sectors in East Africa

@Andy_Thompson_

Company Feature

ABB MAURITIUS Facilitating Mauritiusâ&#x20AC;&#x2122; Renewable Energy Revolution By: Nicholas Paul Griffin 28

Q2 2015 | InternationalResourceForum.com

La Ferme Bambous Solar Farm

ith a current GDP growth rate of around 4%, the remote Indian Ocean nation of Mauritius is on the brink of further promising expansion of its infrastructure in support of its growth potential. The country has seen a tremendous improvement in its standing on the World Economic Forum’s annual competitiveness index, with July’s index release gaining them top position in Africa and a steady world rise from a previous position of 54th up to an impressive 45th. As well as being recognised as one of the world’s top 25 outsourcing destinations, the country is known for its business-friendly environment and a low tax jurisdiction with investment opportunities in several areas. The International Resource Forum takes a closer look at one of the companies instrumental in helping forward Mauritius’ current socio-economic development.

ABB Mauritius “Mauritius remains one of sub-Saharan Africa’s economic success stories,” says Ajay Vij, Country Manager of ABB Mauritius, a global leader in power and automation technology boasting a mix of environmentally friendly products, systems and services, in addition to expansive experience in emerging economy development projects—a platform that sees them well-positioned to support the nation in its development endeavours. Mr. Vij attests to the fact that accessible, reliable energy has been a critical element of Mauritius’ steady growth in the industry, finance and tourism sectors since the shift from a largely agricultural economy just decades ago. However, the country is still only able to meet around a quarter of its energy needs through local generation. As it lies kilometers from the mainland, the remaining balance—more than 75%—must be imported in the form of diesel, coal and fuel oils.

Ajay Vij, Country Director - ABB Mauritius

Q2 2015 | InternationalResourceForum.com

“It is certainly our plan to even further expand our local engineering capabilities.

MW of additional renewable capacity. Some 40,000 people will also participate in a program to provide solar heated water in homes. On a larger scale, the CEB has also invested in 60 MW of new solar and wind capacity to be added to the grid by 2015.

ABB has an impressive track record when it comes to supporting the Government, Demand for electricity in Mauritius is expected businesses and local communities in achieving to grow by 60% over the next ten years. In 2008 key objectives in a sustainable manner. The the country announced its “Maurice Ile Durable” company has already delivered seventeen (MID) initiative, a program designed to ensure central inverters for a 15.2 MW PV power this higher demand is met in an economically plant at La Feme, which was developed by the and environmentally sustainable way. MID is Tauber-Solar Group from Germany. composed of five balanced pillars—education, environment, employment, equity and energy— The PV plant was successfully connected in with the aim of making Mauritius a world model February 2014 and will produce approximately for sustainable development. 24 gigawatt-hours of clean energy a year, Mr. Vij is extremely optimistic about ABB’s participation in the Mauritian economy: “It is certainly our plan to even further expand our local engineering capabilities,” he says, “while working with our customers to develop custommade solutions that will benefit both the people and the environment.” ABB’s business model looks to forge close relationships with local partners for on-theground operational delivery, aided by a wealth of global knowledge, expertise and experience. Local Renewable Generation The energy pillar of the MID initiative includes a number of policies and incentives designed to reduce energy consumption and to shift Mauritius’ energy mix more towards renewables. The country’s goal is to meet 35% of demand through local renewable generation by the year 2025. Part of this plan includes a Small Scale Distributed Generation project for businesses, residents and communities to install photovoltaic (PV) panels to meet their own needs and to sell surplus energy back to the local grid. According to Mauritius’ Central Electricity Board (CEB), this process will add over 2

saving roughly 15,000 tons of CO2 emissions annually. But ABB by no means intends to rest on its laurels. Having served the Mauritian market for over 15 years, the company has identified huge potential in the country’s vibrant and growing economy, recognised worldwide for its prudent macroeconomic policies. ABB’s comprehensive packages include competencies, products and services for the complete primary production chain in the power, mining and mineral processing industries. The company delivers power distribution equipment, integrated process control, optimization and information systems, and a number of other world-leading technologies, utilizing these services alongside its in-depth knowledge of its customers’ processes to provide long-term cost effective solutions. ABB’s philosophy is to employ its global network to provide local support and engineering facilities that are convenient and effective in supporting its customer base. La Ferme Bambous In line with the MID initiative, ABB and its local partner, SARAKO PVP Co., recently completed 31

ABB’s PVS800 central inverters a major project in support of the Mauritian Government’s vision of a sustainable island. The $6 million turnkey solution delivered the country’s largest solar power plant to date, designed to add an additional 15 MW of electricity from 62,000 modules of photovoltaic solar panels to the national grid per year. The electricity generated through this power station, located at La Ferme Bambous, just south of the La Ferme Reservoir, will be used solely as an extension of the electricity produced by the CEB. This will reduce the importation of fossil fuels, thus having a direct positive impact on the country’s carbon emissions. The site selected for the power station does not contain any endemic or indigenous fauna and flora, as it consists of mainly barren land. It is also devoid of any hydrological features such as rivers, springs or wetlands. The turnkey solution developed for the 32

Bambous project draws on ABB’s longestablished position as a market leader and technology pioneer in solar energy conversion. ABB supplied a number of essential technological components to the project, including AC/DC cabinets, dry type transformers and Unisec switchgears, a concrete container, PASS module, center solar invertors and SCADA. The completion of the La Ferme Bambous project can be regarded as a major milestone for ABB. “We see this project as much more than the generation of clean energy to be added to the grid,” Mr. Vij says. “It is also contributing to the sustainable island ideal of the government through the socio-economic development of the Bambous community.” In the wake of this project, ABB is currently working through its partners in Mauritius on various other solar and wind projects which are part of the Government’s MID initiative. IRF

www.new.abb.com/southern-africa

Company Feature

RED CAP INVESTMENTS Innovative Energy

An exclusive with Red Cap Managing Director, Mark Tanton By: Tabrez Khokhar

Q2 2015 | InternationalResourceForum.com

ed Cap is an innovative and dynamic South African company that develops renewable energy businesses and projects.

Established in 2009, Red Cap is currently focused on developing a portfolio of large-scale wind energy projects across Southern Africa. The International Resource Forum caught up with Managing Director Mark Tanton to discuss Red Cap’s successful bids in South Africa’s REIPPP program and the progress on the Kouga Wind Farm project. Mark was recently selected by the Recharge 4040 initiative as one of the world’s foremost young energy pioneers.

-Tabrez Khokhar: Give us a brief outliine of Red Cap Mark Tanton: Energy shapes our world and drives our economy. Over the last decade, renewable energy has become a financially viable alternative to conventional energy and the sector has experienced unprecedented growth internationally and locally, with renewables expected to fill the need for new power and to displace hydrocarbon-based generation. Red Cap was founded to lead this transformation within the South African energy landscape. TK: How has Red Cap taken successful advantage of SA’s IPP programs?

Kouga Wind Farm Turbines

MT: Red Cap is one of the few 100% South African developers in the South African renewable energy sector, and has successfully bid two large-scale onshore wind projects in the REIPPP programme, with both projects having a large Broad 35

Red Cap Investments

MARK TANTON

Managing Director, Red Cap Investments 36

In 2014 Mark was selected by the Recharge 4040 initiative as one of the worldâ&#x20AC;&#x2122;s foremost young energy pioneers.

Q2 2015 | InternationalResourceForum.com

Based Community Trust ownership for the benefit of the local communities, far exceeding the Renewable Energy Bid minimum threshold of 2.5%: • The 80MW Kouga Wind Farm bid project in Bid Window 1 of the South African Renewable Energy Independent Power Producer Procurement Programme, and • The 111 MW Gibson Bay Wind Farm Project in Bid Window 3 of the South African Renewable Energy Independent Power Producer Procurement Programme in partnership with Enel Green Power. We have an innovative management team that balances relevant technical and financial experience with policy facilitation, project development and management capability. As a privately owned company, we are able to operate as a project developer, offering investors and stakeholders the comfort of unbiased expertise. We are also able to engage the market independently, as we are not owned by a utility or tied to any specific manufacturer. Our experience in both the private and public sectors gives us insight into genuinely sustainable current and future opportunities in the energy sector. As a result, we know how to structure business models to best take advantage of these opportunities. Over the years, the team has interacted with many of the key players in the sector and has developed an extensive high-level network. Our partners have a successful track record in the financing and development of renewables globally. TK: Progress of the Kouga Wind Farm (KWF) project and critical milestones achieved MT: All construction on the KWF is now complete and is due to achieve commercial operation. The next step is connection to the national grid. Once operational, these 32 turbines will generate approximately 300 million KWh per

“Our experience in

both the private and public sectors gives us insight into genuinely sustainable current and future opportunities in the energy sector. year, enough to supply approximately 50,000 average households with electricity. This clean energy works towards powering South Africa’s low carbon future by mitigating over 300,000 tons of greenhouse gas emissions annually. In addition via the Kouga Wind Farm Community Development Trusts 26% ownership and the Project Company’s socio economic development projects, the wind farm will inject in excess of R250 million into local upliftment projects that will directly benefit members of historically disadvantaged communities in the region. TK: Any current projects involved with or upcoming? MT: We are currently involved in the financial close for The Gibson Bay Wind Farm in partnership with Enel Green Power. • The Gibson Bay Wind Farm is a R2.25bn on shore wind renewable energy project that consists of 37 turbines each capable of generating 2.5MW of power, delivering 111MW of new grid connected capacity. • The Gibson Bay wind farm is located in the Kouga region of the Eastern Cape and once commissioned the 37 turbine project will enter commercial operation in early 2017, generating in excess of 424GWh per year • The Gibson Bay Community Trust owns 40% of the wind farm. Khana Energy is participating in the round 4 REIPPP bidding process for wind energy generation projects. Red Cap has a 49% ownership in Khana Energy. 37

Red Cap Investments

Innovating Energy in South Africa to create a Cleaner Future Red Capâ&#x20AC;&#x2122;s vision is to identify and develop business opportunities within the renewable energy industry. We aim to set the industry standard and drive best practice, ensuring sustainable socio economic benefits to the communities involved. We are currently focused on developing a portfolio of large-scale wind energy projects across Southern Africa, all in close partnership with the local community, environmental groups and public stakeholders. We have a strategic, long-term view to project development. Our business model is to be involved in the entire project process, from early stage scoping through to permitting and operation of the wind farm. We cover the full range of development activities, including land acquisition, site engineering, project finance, stakeholder engagement and overseeing plant construction and operation.

TK: Give us an overview of Khana Energy and your partnership with Gamiro Investments, how will this facilitate Red Cap? MT: Red Cap strongly believes the SA Renewable Energy industry profile needs to transform and the skill transfer needs to take place in a sustainable way. As such Khana Energy was founded to participate as a co-investor in projects successfully bid in the South African Renewable Energy Independent Power Producer Procurement programme. Khana Energy is a black owned and controlled renewable energy company with the vision to become a fully integrated, fully operational black, South African independent power producer with the skills and capacity to deliver every aspect from project bidding to successful implementation. Khana Energy is committed to transformation and development in the Renewable energy sector in a sustainable and meaningful way, as such Khana Energy aims to build an operational entity that houses the best South African and global skills in the sector and is committed to creating jobs and transferring capability that will eventually be owned by young, capable and appropriately qualified South Africans. Through a partnership between Gamiro Investment Group and Red Cap, the executive team consists of a diverse and skilled group of South African professionals with proven renewable energy, project finance and economic development capabilities to meaningfully add value to projects in which they are invested. TK: Outline impacts Red Cap has had recently â&#x20AC;&#x201C; on communities, economic development, environment, etc.

Kouga Wind Farm Landscape

MT: As a 100% South African developer we are committed to the communities in which we are involved, and are committed to transformation within these communities and the industry as

Q2 2015 | InternationalResourceForum.com

Red Cap Team (L to R) Erica Morgan, Christelle Roy, Lance Blaine, Mark Tanton, David Nicol, Sam Parenzee, Jadon Schmidt

a whole. In line with this commitment we work to build relationships with the community, facilitating community participation in our wind farms through large broad-based Community Trust ownership for the benefit of the local communities, far exceeding the Renewable Energy Bid minimum threshold of 2.5%. By involving all stakeholders, we are able to develop successful projects that benefit and support local communities. All of Red Cap’s wind energy projects are developed in partnership with landowners, the local community, environmental groups and public stakeholders – with the aim of benefitting all parties involved. Closer to home, Red Cap has initiated a programme of maths numeracy in the local community, donating 10 tablets to the Silikamva High School in Hout Bay. This school is situated next to the informal settlement of Imizamo Yethu and the school primarily serves this disadvantaged community. This Tablet Maths programme, taught by a Red Cap Director, uses various maths APPS to teach basic maths numeracy to scholars moving from junior to senior school. This is a pilot programme, taking place weekly for an hour in a facilitated class

TK: What is Red Cap’s roadmap for the near future and expansion priorities? MT: We want to focus on growing Red Cap’s portfolio of innovative and progressive projects within South African renewables & clean energy. Establishing Khana Energy as the empowerment partner of choice and successfully developing Khana into SA’s leading fully-fledged local black owned IPP over 5-7 years TK: What is the Recharge 4040? MT: it is a diverse group of energy pioneers from major wind and solar companies, banks, investment funds, crowd-funding platforms and governments from across the globe. TK: Give us your closing thoughts MT: Red Cap has an exemplary success record within the Renewable Energy Independent Power Producer Procurement Programme in South Africa. It has a highly skilled and experienced team and is able to identify and resolve issues prior to bid to ensure projects are best positioned to be successful in both enticing investors and becoming a preferred bidder. IRF

www.red-cap.co.za 39

Company Feature

KENGAS GROUP Quality, Flexible and Reliable Transport Solutions By: Nicholas Paul Griffin

Q2 2015 | InternationalResourceForum.com

enya’s Kengas Group Ltd started with Bulk Petroleum Products Supply and Delivery Services within the Great Lakes region, including Southern Sudan, and has over 25 years’ experience, operating in some of the world’s most demanding locations. Offering total logistics solutions in East and Central Africa, Kengas firmly believes in putting the needs of the customer at the forefront of its concerns, promising to increase productivity for its clients with the efficient management of multiple services and delivery requirements. By bringing greater synergy to daily business, maximizing the efficiency of businesses and providing specialized services across countries, Kengas strives for continuous improvement, bringing positive change for its client base. Since remote environments require spe¬cialized services, Kengas, along with its experienced partners, provide a plethora of services designed to meet its clients’ varying needs. Those offered include fuel logistics and supply, logistical support to move cargo, food procurement and catering services, camp design, construction and management, fleet management and much more.

Kengas Link transport service

The company vision is to be the region’s leader in terms of offering these specialized services, confident in its ability to do so based on sound success in the oil industry and its Social Development programs. With the aim of efficiently and reliably providing services which fuel the national economy and improve quality of life for its citizens, Kengas employs integrity, teamwork and great communication to achieve its goals. On the business end, the company aims to create maximum value for shareholders and stakeholders, as well as empowering its employees by embracing its core values. 41

Kengas Group

“The strict adherence to safety guidelines is one of the company’s core values, and has proved essential in the business they undertake. Hassan Kassim, General Manager with Valerie Otieno, Sales & Marketing

Safety and Social Responsibility With a consistent increase in profits since its inception seven years ago, and a workforce increase of five times its original employee base, it is clear to see Kengas are a company on the up. The company now operates 360 trucks, with 160 company owned and the rest subcontracted out, shared between roughly 60 subcontractors. This growth is a significant increase from the company’s starting position in 2007. The business generated by the company means Kengas is the preferred transporter for many small-scale truck owners. This growth has continued with the opening of a chain of petrol stations in the last two years, helping to establish a retail chain under the name Kengas Energy, and a support services division to target the logistical needs of the oil and gas sector called Kengas Support Services (KSS). These new subsidiaries of the Kengas Group join the long-established Kengas Link, the group’s transport arm. Since the company predominantly operates in remote areas of Africa, which are often harsh and hostile, ever-present dangers such as banditry, accidents, loss of network coverage, climate, war, rampant corruption and many more very real concerns must always to be taken into consideration. 42

In these areas a well-trained and prepared staff base has proved to be one of the company’s biggest strengths. It goes without saying that a certain type of employee is needed to excel in such hazardous environments, and Kengas prides itself on making sure it has a team equipped to handle these unique challenges. At any given time there are forty to fifty assets in dangerous areas, with twice that number of ground personnel. In December 2013, when hostilities broke out in South Sudan, the company had 25 trucks in Juba and around 25 further north, either servicing clients or returning to base. Many returned with footage of the awful destruction, highlighting the risks the company’s employees were taking just by doing their job. The team of staff at the office and petrol station at Juba remained throughout, and are still stationed there today. Without their support and resolve, Kengas would not be the company it has worked so hard to become. Kengas’ health and safety record goes some way to highlighting the strength of its employment base in these areas, with the company registering high in the annual SHEQ reports, with less than four major and minor accidents per year since its registration in 2007. Which, considering the terrain the company operates in (South Sudan and the Democratic Republic of Congo primarily), represents an impressive record. All accidents are followed up with a root cause analysis and the issue of CARs. The company is committed to high-quality staff training, placing particular emphasis on preparing drivers, turn boys and workshop mechanics for these potentially difficult conditions.

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volunteerism and encouraging employees to take active roles in communities. In the DRC and South Sudan, which are prime markets, the company donates books, clothes, stationary, building materials and more, to boost the well being of the community. Looking to the Future The discovery of oil in East Africa is a positive step towards self-reliance for the region in regards its energy needs.

Juba Petrol Station, South Sudan

The strict adherence to safety guidelines is one of the companyâ&#x20AC;&#x2122;s core values, and has proved essential in the business they undertake. The safety performance of the company is monitored, proactively and reactively, to ensure key safety goals continue to be achieved. Monitoring by audit forms a key element of this activity and includes both a quantitative and qualitative assessment.

With the opening of new refineries, the cost of fuel will drop, reducing the logistical cost of essential commodities. In this respect, Kengasâ&#x20AC;&#x2122; business will likely grow further, as transport of fuel will still be required to remote areas. It may also lead to the establishment of more petrochemical-based manufacturing and other associated industries, which will result in an increase in transport requirements for local and international distribution.

The results of all safety performance monitoring are documented and used as feedback to improve the system by identifying systemic weaknesses and accident precursors, and either eliminating or mitigating them. In line with these values, Kengas is developing an Operations Excellence Program, whose primary objectives will be to improve asset and workforce productivity as well as providing disciplined definitions and service standards. Kengas group also employs a Community Social Responsibility program, responding to the social needs of the residents of regions within which it works, ensuring that the company operates as a privilege in the community where it will serve, and not as a right. In addition, the scheme serves to promote and participate in a wide variety of social development programs to improve the quality of life in the area, promoting the spirit of 43

Kengas Group

Mission To efficiently and effectively provide logistics solutions for our clients using customer tailored solutions.

Corporate Values • • • • • •

Integrity Teamwork Communication Customer Focus Compassion and Understanding Continuous Improvement

Memberships

Eldoret Petrol Station, Kenya Since the pipeline from South Sudan will originate in Juba, towards the port of Lamu, transport of crude oil from the drilling sites will be required, meaning the future for a company like Kengas looks bright. The company has already begun to work towards this next chapter in several key ways, starting with the achievement of an ISO 9001:2008 certification, a major milestone for the company which happened in the space of a single year, beginning in August 2012, with gap analysis conducted in Sept 2012.

Kengas Group has endeavored to remain the market leader. Kengas Group memberships include:

The intention is to achieve an ISO 14001 by the end of next year. Further improvement in the company’s SHEQ processes is also in the works, for which a new team has been assembled.

• KTA (Kenya Transporters Association) • KCM (Kenya Chamber of Mines) • PIEA (Petroleum Institute of East Africa)

The recently opened office in Mombasa will see a significant increase in dry cargo, oversize cargo and humanitarian cargo distribution, and the registration of the Dar es Salaam office in Tanzania will reach both the dry cargo and fuel

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Kengas fleet navigating rough terrian logistics market, catering for Zambia, Rwanda and South DRC.

â&#x20AC;&#x153;Kengas has made

sure it is ready to be involved in the coming developments in the region. Many other plans for expansion are already in motion, including the redesigning of the truck yard in Eldoret to meet international standards, the installation of an ERP system for better coordination, upgrade of IT infrastructure, installation of tracking devices on the entire company fleet, and partnerships with established international companies to look for support services business. By becoming members of PIEA (Petroleum Institute of East Africa), which is the focal body when it comes to all up stream, mid-stream

and downstream activities in that part of the world, Kengas has made sure it is ready to be involved in the coming developments in the region. In addition, the company has become a member of KCM (Kenya Chamber of Mines), another important body when it comes to the extractives industry, a market making huge progress in East and Central Africa. Kengas will continue to expand, with Kengas Link, the transport arm of the company to start operating in Tanzania shortly, and Kengas Energy to open another four petrol stations by the end of 2015. Kengas Support Services is still under development, with one client in South Sudan. The company is looking at major contracts in 2016, when drilling will begin in Kenya. All this points to a bright future for the Kengas Group and the region, and the groupâ&#x20AC;&#x2122;s professional values put them in the perfect position to continue moving forward in the industry. IRF

www.kengasgroup.com 45

Company Feature

PREMIER SOLAR Focusing on Quality and Delivery An exclusive with Premier Solar Vice President of Operations Colonel Ajay Reddy By: Raeesah Khan

Q2 2015 | InternationalResourceForum.com

stablishing it self as a pioneer in the Decentralized Distributed Generation (DDG) field, Premier Solar EPC is fast emerging as India’s leading Engineering Procurement and Construction Company for establishing Solar Power Plants on a fast track basis, with optimum mix of quality and timeliness. In our exclusive with Vice President of Operations, Colonel Ajay Reddy, he candidly discusses their efforts to focus on their growth in Africa and their goals in line with India’s Jawaharlal Nehru-National Solar Mission (JNNSM).

Col. Ajay Reddy, VP, Operations

Premier Solar’s operation and maintenance team on project site

Raeesah Khan: Can you give us an overview of Premier Solar EPC and the company’s involvement with the Indian solar industry? Colonel Ajay Reddy: Premier Solar has been operational for 20 years, established in 1995. In 2010, India opened up its solar market and the ‘Jawaharlal Nehru-National Solar Mission’ (JNNSM) was announced. Through this policy the country aims to output 20 Gigawatt (GW) of solar power by 2020. To capitalise on this opportunity, Premier Solar launched a second subsidiary company called ‘Premier Solar Powertech’; whose principal focus is engineering, procurement and construction (EPC).

One of the first projects that Premier Solar Powertech was awarded was a large 14 Megawatt (MW) plant order from Jharkhand (Indian State). At the time, the 14 MW plant was the largest order in India and no one had undertaken a project of that scale. Work on the Jharkhand plant started in December 2011, took 6 months, completed in June 2012 and was then inaugurated by (then) President of India, Hon. Pratibha Patil. We had decided to experiment and use as many technologies as possible in this plant. This includes used thin film technology, crystalline technologies, our own Premier Solar modules, as well as modules from other vendors and imported suppliers. We also 47

Premier Solar

utilised invertors from different makes across the world, L-tech - from Norway, Power-One; which has now become ABB, AV Germany and Delta LPI. For the structures, we used both the ‘screw type’ and ‘firm footing’ technologies. In addition to those, we tried out solar trackers, bare conductors, aerial vice cables and every known technology that was present in the market at the time. The theory behind trying out all these technologies was to learn! The three things we wanted to learn were; first, the ease of installation. How easy would it be to install a unit? Secondly, once an item is installed, what was its efficiency? How good was it? And the third and most important concerned vendors who supplied the material to us. Would they hold our hand once the installation was done? We analysed this information and it formed the core of what has made us market leaders in India today.

“Our core values

are dependant on principally focusing on quality & delivery

trinity. If you try to get too much out of one, you will lose something in the other. We believe the relationship between the developer and contractor should carry on for the full life cycle of the plant/project. RK: Can you highlight Premier Solar’s track record and how the combined experience of the team contributes to its success? CAR: The people behind the organization collectively have 18 years’ of experience in the solar industry. They have worked in the US solar industry, are experts in company structuring and the power industry, as well as having good track records in project management. To date, the Premier Solar team has contributed to all company procedures by putting in their individual expertise, which has led them to garner support from the vendor industry. At the time the company was established, the Indian industry had not been sensitized to the solar industry. There was only the transformer industry. We needed to get the transformer industry to understand the kind of technology and manufacturing required for the solar industry. Hence we undertook efforts to educate the industry, and this kind of high value engagement put Premier Solar on track for growth.

RK: What are the core values of Premier Solar?

RK: What are the major services of Premier Solar?

CAR: Our core values are dependant on principally focusing on quality and delivery. I recently wrote an article where I tried to explain the trichotomy between quality, price and timeliness.

CAR: Premier has two focuses; one is module manufacture and second is EPC. As EPC does not come stand alone, we also arrange funding. We understand the full picture from a developer’s point of view since we own our own plant.

Many developers try to bargain with an EPC contractor, where they try to bring down the price, commitment on delivery and quoting competitors who would be willing to deliver the project in shorter time periods at much cheaper prices. As I wrote, cost, quality and timeliness are a 48

We also offer consultancy services, advising various parties to put up solar plants or not, what are the p50’s involved, and an analysis of what kind financial returns are guaranteed. RK: What are Premier Solar’s major milestones to date?

Q2 2015 | InternationalResourceForum.com

Premier Solar Powertech is an experienced solar Turnkey EPC company, part of, one of the oldest integrated solar player in India â&#x20AC;&#x201C; PREMIER SOLAR. Our innovative model for solar projects is based on our expertise in PV module & cell manufacturing, Global Solar EPC execution and exclusive technology partnership with leading Solar Inverter Companies.

Eastern Indiaâ&#x20AC;&#x2122;s largest solar plant constructed by Premier Solar

CAR: Our flagship 14 MW Plant in Jharkhand is our best and the greatest journey that we have had to date. Following that we entered into Decentralized Distributed Generation (DDG). Unfortunately there are people in remote Indian villages that have never seen electricity in their lifetime. Premier Solar participated in a government tender whereby these villages were to be solarized. To give you an example of the logistics and challenges involved of electrifying one of these villages, we had to travel by road until there was no more road left, we then trekked through a jungle for about five to eight kilometers, came

across the Godavari river; waited for about an hour for a boat, crossed the river and traveled another four kilometers up a hill and that is how we reached this particular village. As per the tender, the village had to be solarized and that involved carrying solar panels, batteries, transmission poles, cement, etc. All the raw materials that are required for a solar plant, we had to lug them physically to that village. This was just one village and it took around sixty days for the materials to reach the village! To date we have electrified a total of 97 villages in the state of Andhra Pradesh, many forums recognized this act across the world, 49

Premier Solar

and we were awarded ‘The Power-Gen 2013 Solar Project of the Year’ award. Once we had completed and showed our capability, we received several more orders from other villages for electrification. RK: What are the benefits Premier Solar has brought to these villages, in terms of improving their social economic development? CAR: The moment we completed our installations; we immediately noticed the gradual positive impacts they were having on the community. During the constructing of these plants and installations, we had the support of the local communities. This meant we managed to hire local labor to shift the materials to and from the villages.

No one else has undertaken the task of rural electrification on a large scale, the maximum anyone can do is four or five villages. If you compare Premier Solar, we have completed 97 projects in different villages and have lined up another 73 villages in the state of Madhya Pradesh. Quite clearly Premier Solar has cemented its position in this field within India. Coming to MW level projects, we currently have lined up 70 MW worth of projects in the state of Andhra Pradesh, which when completed will be a massive development for that state.

We paid them for the labor and also noticed that they were more than willing to assist, as they felt included within the development. They were getting the materials for their own local plant and getting paid for it. At completion we taught and hired a few to operate the solar plants. Hence, they run their own solar plant, and earn from it. RK: How were the villagers empowered through your projects? CAR: Not surprisingly, a lot of people call me from those villages now as they have mobile phones, which they can essentially charge; this was not possible before our installations. Another result is directly off the construction of the plants, where we paid the laborers and in turn, from the money they made, they were able to setup kiosks to trade groceries. Some of these villagers have also bought TV sets and are able to add this luxury to their lives. RK: How would you say these projects have cemented Premiers’ position as a major player in the solar industry in India? CAR: As of now, to my knowledge, there is only one credible player in the DDG space, which is ‘Premier Solar’. 50

Solar car park commissioned by Premier Solar RK: Who are some of the strategic partners you currently work with? CAR: We have strategic partnerships both on the developer and vendor sides. The developers are those who are willing to invest in projects, they are institutional and individual investors who are keen to develop solar power in the country. As far as vendors are concerned, we have some very specific preferences after our experiences. For example, we have pacts with Schneider Electric, Delta and Refusol. We also have a good relationship with the media, other solar stakeholders and the Indian government. The government is very supportive of solar measures in India, which allows the industry to grow; in turn it helps us grow.

Q2 2015 | InternationalResourceForum.com

“the most important

point we must understand as far as solar power is concerned, is quality! RK: Premier has recently forayed into East Africa with its first project in Uganda. How did you recognize the opportunity? CAR: Africa is a happening place! In terms of infrastructure, it is still a developing continent. Premier Solar recognizes this opportunity and found Uganda to be very accommodating. The Ugandan government was friendly, open to investment and, as added incentive, there was ample European funding available. Together with our European partners we began taking part in developing solar power on the continent, with Uganda being our first point of entry into Africa. We are also venturing into Kenya and Senegal as their feed-in tariffs are accommodating, their governments have good vision, they think well, and they understand that fossil fuel is not going to last forever. They would rather have the option of a mixed energy portfolio. Kenya has given open freedom tariffs, Senegal is also moving in that direction and Uganda has several tenders out for solar power. Our diesel hybrid plant project is being installed on Kalangala Island, located on Lake Victoria and it is an off-grid island without power. Typically, a solar plant needs a grid to function; since our project is not grid connected we have simulated it by using solar power and battery power. We’ve made half of the solar plant believe that the remaining half of itself is a grid. At night, when sunlight dips, the load is automatically transferred onto diesel generators. We have integrated the solar plant with these generators to take on the load from dusk till dawn. The combination of the solar plant and the diesel generator is brought into a kind of symbiotic relationship, and in turn the entire project works as one massive plant that supplies electricity to the island.

RK: Are you involved in any CSR activities within India; if so, what are they? CAR: Yes, CSR is very close to us. For example, for the 14 MW Jharkhand plant, we had to take the land from the government. They in turn acquired the land from local villagers. Initially, the villagers were unhappy; so we decided to install a transformer, water pumps as well as bathroom and washroom facilities for them. In addition to the above, we’ve been responsible for job creation in the locality. We are very pleased that Premier Solar has had a positive impact on the livelihood of those villagers; the idea is to share some of our revenues from time to time to enhance their way of life. RK: What are your upcoming initiatives and expansion plans? CAR: We are engaged in a number of simultaneous activities moving forward. We have government tenders in hand as well as private PPA (Power Purchase Agreement) orders. Furthermore, we are developing a number of solar plants in East Africa. Premier Solar is going out in a big way to expand. In the coming two to three years we are aiming to complete a number of projects. RK: Could you share any closing thoughts, especially as India is an emerging market in the renewable energy field? CAR: We are entering Africa in a major way; our involvement in various countries across Africa is going to be one of our hallmarks for the coming years. Plus, our participation in Phase II of the Jawaharlal Nehru National Solar Mission (JNNSM) is going to be vital to us. I want to stress, the most important point we must understand as far as solar power is concerned, is quality! Developers must insist on quality and not price. The moment the price lowers, the quality comes down with it and that’s something solar power developers must never accept. IRF www.premiersolarepc.com 51

Association

SYDNEY MINING CLUB “This Coalition Government Has Let Us Down” NSW Minerals Council CEO Stephen Galilee at the Sydney Mining Club By: J. Landry

SW is the worst state in the country for mining investment; behind even Victoria and Tasmania. These was the fact the state was facing in the lead up to the elections.

The information from the Fraser Institute’s survey was a major talking point during NSW Minerals Councils CEO lunch address at the Sydney Mining Club. “When the Coalition was elected we were ranked 20th, now we’re 39th… something has gone backwards” said Minerals Council CEO Stephen Galilee. “We’re the least attractive state for mining.”

Q2 2015 | InternationalResourceForum.com

During his hour long address, Galilee provided the ammunition to back up his claims as he pointed to exploration activity falling almost by half within a period of three years from 2011 to 2014. The effect being that 1 in 5 coal miners has been put out of work in the last 2 ½ years. ”We’ve had a frank discussion with the Premier”, he explained while urging reform on state mining issues in the lead up to the election. So, just how important is mining to the country? It’s a fundamentally popular industry in NSW. Consistently, for three years running there has been 70% support. Unfortunately, the government isn’t giving them the support they need. The state’s depleted mining scene is evident as the sector’s profitability reverses while simultaneously being hit with extra fees. “We’ve had new and increased fees on our sector… we’ve been seen as a cash cow… without any warning or consultation.”

Stephen Galilee, CEO - NSW Minerals Council

“NSW mining is not attractive to

“Under The Bridge by Nicki Mannix Licensed under CC BY 2.0

investors. They’re staying away, its hurting the state, and voters are noticing. 53

Sydney Mining Club

During his address Galilee also made special note of the visible radical environmentalists who are gaining media attention through both legal and illegal demonstrations, aiding negative coverage of the sector. The event, kicked off by Sydney Mining Club Founder and Chairman Julian Malnic was hosted to a packed house at the Tattersalls Club. Malnic used his introduction as an opportunity to speak about the issues that have held down the industry - the MRRT, land access issues and the carbon tax. The message from both Malnic and Galilee was blunt - NSW mining is not attractive to investors. They’re staying away, its hurting the state, and voters are noticing.

The Minerals Council has made sure their message is visible as well. Their current advertising campaign is gaining significant traction and the organisation is working with the Newcastle Knights NRL club as part of their “Voice for Mining Family Day.” Yet despite the current NSW Government’s remarks of jobs and growth, Galilee had this to say about the Labor alternative, “it’s difficult to make an assessment on the Labor Party because they haven’t really talked about their policies.” IRF

www.sydneyminingclub.org 54

Fair Work Act 2009

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Association

Association of Mining and Exploration Companies Australia’s international competitiveness must be restored By: Simon Bennison

he mining and mineral exploration industry has been a major contributor to the Australian economy through the creation of jobs, investment in regional communities, and numerous taxes and royalties which have contributed to Government revenue streams. In the past seven years, the mining industry has paid over $117 billion in Federal taxes and State royalties.

The mining industry is also a significant driver of Australia’s GDP. The industry accounted for around 80% of growth in GDP in the March 2014 quarter. For the year 2012-13 the industry contributed 10% of Australia’s total GDP with 2% of the workforce. 56

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Simon Bennison, CEO - Association of Mining and Exploration Companies (AMEC)

AMEC

The carbon tax has imposed significant costs and inflationary pressures to Australian businesses, consumers and the economy. In a global economy, this has put them at a significant competitive disadvantage. Overseas competitors are not subject to the same taxes and costs which has resulted in capital going to more attractive jurisdictions such as Canada and Africa. A recent PwC report ranked Australiaâ&#x20AC;&#x2122;s overall tax rating at 133 out of 188 countries analysed. The research found Australia has a total tax rate of 47.7%. The Association of Mining and Exploration Companies (AMEC) is extremely pleased that the Federal Government has recognised the damage that the carbon tax has done to Australiaâ&#x20AC;&#x2122;s reputation and repealed the tax. The repeal will help restore Australiaâ&#x20AC;&#x2122;s international competitiveness and reputation as a safe and stable investment destination. The carbon charge through reduction in diesel fuel tax credit meant all AMEC members have been paying more for their energy. In many cases projects are very isolated and do not

have access to the power grid and therefore rely on diesel fuel as the primary source of power. Diesel fuel is a significant input cost and accounts for up to 25% of total costs for base and precious metals. The reinstatement of the diesel fuel credit to pre-carbon tax levels of 38.143 cents per litre will therefore have a significant positive impact on mining and mineral exploration companies. This should have a flow on effect to the level of investment in mining and exploration projects, and therefore jobs and Government revenue streams. These resources companies are providing the future economic growth in the Australian economy, especially in rural and regional communities where companies provide thousands of jobs and much needed social infrastructure. However to ensure this remains the case, Australia must have the right policy and business conditions to attract ongoing investment in mining and exploration projects to sustain the industry for the future.

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Investment in mineral exploration essential A key issue for AMEC has been the fact that the rate of discovery of new mines has not kept pace with the depletion of existing mines. At the same time, Australia’s share of global exploration has reduced from 21% in 2002 and now stands at 12%. The Australian mining sector has been a world leader, successful in a growing competing global environment, but is still dependent upon past discoveries. Recent research from the University of Western Australia shows that about half of Australia’s non-bulk commodities mines would be exhausted in between 7 and 18 years. Their research also showed that it takes on average 7 years to convert a discovery into an operating mine. This long ‘discovery to mine’ lead time means that action must be taken now to prepare for the future and extend the life of the mining industry – and associated Government revenue streams – over the next decade and future generations.

Data from the Australian Bureau of Statistics (ABS) paints a similar picture. There have been consistent decreases in expenditure and metres drilled for greenfields exploration. Metres drilled on greenfields (new deposits), at 300,000 metres for the March 2014 quarter, is the lowest in the last 10 years, and is lower than the March 2009 post GFC quarter of 338,000 metres (refer graph below). Expenditure on greenfields (new deposits) is also the lowest since June 2006. The number of Initial Public Offerings (IPOs) for Australian based mineral projects has also been declining. There were only 12 IPOs in 2013 and three so far this year - well below the high of 126 in 2007. Other capital raisings have been few and far between. The fact that 67% of funds raised in 2013 for mineral exploration projects on the Australian Securities Exchange (ASX) went to offshore projects, the highest proportion since 2008, is also of concern. This is markedly impacting the level of investment in exploration projects in Australia, affecting local communities, service providers, contractors and the Australian economy. 59

Solutions To reverse this trend, AMEC has been advocating for policy changes that will make Australia a more desirable place to invest. This includes an Exploration Development Incentive (EDI), announced by the Federal Coalition in its Resources and Energy Policy paper, and repeal of the carbon and mining taxes. The EDI will allow investors to deduct the expense of eligible mineral exploration expenditure against their taxable income

and should provide a much needed boost to investor confidence. A ‘no taxable income’ test will ensure that the program is only available to junior minerals explorers who will be able to pass a tax credit to their resident investors based on eligible exploration expenditure in Australia. Ongoing investment in greenfields exploration is essential in order that these junior companies can discover the mines of tomorrow.

Looking to the future We must continue to restore Australia’s reputation as a safe and stable place to invest so the sector can continue to provide the significant economic and social benefits and Government revenue streams. The repeal of the carbon tax and mining tax, as well as the introduction of initiatives such as an Exploration Development Incentive, will go a long way to recovering some of the lost competitiveness that has occurred in recent years. IRF www.amec.org.au 60

Q2 2015 | InternationalResourceForum.com

AMEC-AD-007

Support your business and industry by supporting AMEC

AMEC provides leadership on legislation and policies affecting your business including: • Exploration Development Incentive • Royalties

• Taxes, fees and charges

• Mining securities • Approvals

Call us today to discuss the benefits of AMEC membership on 1300 738 184

www.amec.org.au | info@amec.org.au | 1300 738 184

ASSOCIATION OF MINING 61 AND EXPLORATION COMPANIES

Association

Minerals Council of Australia What the Repeal of the Carbon Tax means to Investor Confidence

An interview with Sid Marris, Director of Industry Policy By: J. Landry 62

Q2 2015 | InternationalResourceForum.com

Sid Marris joined the Minerals Council of Australia in May 2008. As Director of Industry Policy, he has responsibility for a wide range of policy issues of importance to the Australian Minerals Industry including Climate Change and Energy, Infrastructure and Transport, Workplace Relations as well as contributing on trade, economics and innovation matters. J. Landry spoke with him exclusively on what the repeal of the carbon tax means to the Australian mining industry.

Sid Marris, Director, Industry Policy, Minerals Council of Australia

Minerals Council of Australia

J. Landry: What was the immediate effect of the carbon tax introduction? Sid Marris: The carbon tax was a $7 billion hit to the bottom line of companies across the country, this is almost the same as increasing the company tax burden by 10 per cent in one go. By the time it was abolished after two years it had taken $15 billion through either charging permits or adding to the cost of diesel fuel used by businesses. JL: What are were the problems with the scope and reach of the carbon tax? SM: The minerals industry has always argued that measured transition to a low emissions global economy required a global agreement that included reduction commitment from all major emitting nations, encourage least cost emission reduction through market mechanisms that did not impinge on the competitiveness of the internationally traded sector and involve substantial investment in a broad range of low emissions technologies and adaptation measures. The carbon tax fundamentally sought to put Australia much further ahead than any other nation, with a scheme that covered 60 per cent of all emissions at a price that was almost three times the European scheme. JL: How did this compare with the European scheme and its graduation of this process? SM: The European scheme is a good point of comparison. That scheme will take twenty five years to develop. Emissions coverage is only 45 per cent, and even many firms are only required to buy permits for half their emissions and some still have generous exemptions from the full impact of the scheme for several years to come. JL: Which industries were hit hardest by its introduction? SM: For mining companies in remote locations that depend on diesel fuel for all their energy, the carbon tax was a big burden. Even though 64

there were some exemptions for emissions, intensive trade exposed industries such as aluminium and metals refinery. They still faced a cost impost not faced by their international competitors. The coal sector actually qualified under the government own rules to receive exemptions from the full cost of the scheme but that was arbitrarily denied. Critics try to characterise these arrangements as hand outs, but that is completely mislead, they are an exemption from the full cost of tax being added on to business. JL: How did this undermine competitiveness in Australia? SM: Australiaâ&#x20AC;&#x2122;s mining industry are price takers. The international price is set so any impost from government such as a carbon tax cannot be passed on to customers. Australiaâ&#x20AC;&#x2122;s costs structure is already higher than other countries, with labor costs for some areas 50 per cent higher than equivalents in the United States. JL: What do you think should have been done with the tax revenues? SM: The impossible choice created by the carbon tax was that it was meant to give a price signal to change behaviour but it was levied at such a rate that companies were starved of the funds they needed to invest in research, development and deployment. The Government saw the tax as a way of redistributing money in the community and decided to over compensate households for the effect of the tax, again at the expense of research and development. JL: Does the repeal boost investor confidence now? If so, in what ways? SM: There is an immediate boost to confidence from the repeal of the carbon tax. A $7 billion hit to the economy has been avoided this financial year alone. The challenge of climate change remains a dilemma for business but in many ways the overreliance on what was just a revenue raising measure gives a chance re-start the discussion. IRF www.minerals.org.au

Q2 2015 | InternationalResourceForum.com

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Events

MINES AND MONEY LONDON 2014

EVENT WRAP-UP

Business Design Centre, London - UK

Q2 2015 | InternationalResourceForum.com

he International Resource Forum was on hand live for the 2014 Mines and Money London event.

Mines and Money London is Europe’s leading mining investment and capital raising conference and exhibition, bringing together over 3,000 investors, financiers, brokers and mining developers, over five days of business matching, knowledge sharing and deal-making. Over 200 mining companies were in attendance including some of the world’s largest natural resources fund managers. As always Mines and Money presented a packed programme of over 200 mining investment leaders presenting keynotes, market analysis, company presentations, panels and workshops. The event is Europe’s largest mining investment and deal-making forum, connecting miners with money and investors with opportunity. A global event with 3,000 attendees from over 75 countries that included 100 spotlight presentations from mining companies. Importantly it is unrivalled in its deal-making opportunities with one-to-one meetings, daily social events, and lunchtime roundtable discussions.

The 2014 convention delivered: • More institutional investors, boutique fund managers and private equity players than ever before • The highest ratio of miners ever seen at Mines and Money London • Delegates from over 75 countries • 200 speakers from across the globe delivering their market insights, addressing current challenges and talking through the outlook for 2015

“Mines and Money London

2014 took significant steps to re-establishing it’s rightful place as the premier mining event in line with London’s standing as a global platform for mining investment, banking and advisory companies” Mark Bristow CEO, Randgold @MinesAndMoney 67

Mines and Money London 2014

Some of the keynote speakers included: Biao Chen, Managing Partner, Jinjiang Mining Fund Catherine Raw, CFA Director and Portfolio Manager, BlackRock Clem Sunter, Scenario Planner and Former Chairman & CEO Gold and Uranium Division, Anglo American Daniel Oliver, Founder and Managing Member, Myrmikan Capital Douglas Milne, CEO, Special Contingency Risks Dr. Anthony Hodge, President, International Council on Mining and Metals (ICMM) Evy Hambro, Managing Director and Chief Investment Officer, BlackRock Frank Giustra, President & CEO, Fiore Financial Corporation & Founder Lions Gate Entertainment Frank Holmes, CEO and CIO, US Global Investors Gary Brown, Senior Vice President & CFO, Silver Wheaton Jean-Claude Brou, The Minister of Industry and Mines, Ivory Coast Joanne Warner, Head of Global Resources, First State Investment Robert Friedland, Executive Chairman, Ivanhoe Mines Ross Beaty, Chairman, Pan-American Silver Corp. Tom Albanese, CEO, Vedanta Resources 68

Q2 2015 | InternationalResourceForum.com

“As a forum to meet investors it is excellent! We’ve had several investors approach us, we would never have had the opportunity to meet them on our own” Richard Murphy, President and CEO, Ginguro

“A excellent collection of topical and stimulating presentations which, combined with a series of well attended round tables and panel sessions, provided a timely review of the mining industry and the opportunities and challenges it faces.” Mike Price, Advisor, RCF

“We have been coming to Mines and Money London for many years now and still find it Europe’s best mining investment event” Tom Butler, Global Head of Mining, IFC – International Finance Corporation

‘An excellent opportunity to network with key mining companies and financiers under one roof’ Daniel Litvin,

Managing Director, Critical Resource 69

Mines and Money London 2014

The Mining Journal Outstanding Achievement Awards 2014 Winners Gowlings Country Award Winner: Côte d’Ivoire BMO Fund manager of the Year Winner: Ani Markova, Smith & Williamson. DMT Consulting Exploration Award Winner: Gold Road Resources SP Angel CEO of the Year Winner: Mark Connelly, Papillon Resources Lifetime Achievement Award Winner: Dr Richard Sillitoe SRK Consulting Corporate Development Award Winner: Guyana Goldfields Yorkville Mining Analyst of the Year Winner: Brock Salier and Filipe Martins, GMP Securities EY Large Cap Deal of the Year: Winner: Lundin Mining Investec Small and Mid Cap Deal of the Year: Winner: Altona Minerals sale of Kylylahti to Boliden

www.minesandmoney.com/london

Q2 2015 | InternationalResourceForum.com

Enhancing Australia’s prosperity through technological innovation The Australian Academy of Technological Sciences and Engineering (ATSE) ATSE is made up of some of Australia’s leading thinkers in technology and engineering. One of Australia’s four Learned Academies, it’s an eclectic group, drawn from academia, government, industry and research, with a single objective in mind – to apply technology in smart, strategic ways for our social, environmental and economic benefit. To achieve that goal, ATSE has formed a variety of expert, independent forums for discussion and action – platforms to move debate and public policy on issues concerning Australia’s future. These focus on energy, water, health, education, built environment and innovation – and the international collaboration necessary to ensure that Australia is abreast of world trends. It’s an open, transparent approach – one that government, industry and community leaders can trust for technology-led solutions to national and global challenges. Each year, the Australian Government recognises the importance of the work we do by awarding the Academy an establishment grant to help with: n Fostering research and scholarship in Australia’s technological sciences and engineering; n Providing and conducting administrative support, workshops, forums and similar events to enable the Academy and its Fellows to contribute on important national issues; n Managing the development and execution of our programs; and n Supporting relationships with international communities.

The Australian Academy of Technological Sciences and Engineering (ATSE) 1/1 Bowen Crescent Melbourne Victoria 3004 Australia +613/ (03) 9864 0900 info@atse.org.au www.atse.org.au

Events

8 INVESTING IN AFRICAN MINING th

LONDON, 2014 EVENT WRAP-UP By: By: Tabrez J. Landry Khokhar

Andaz Hotel, London - UK

Q2 2015 | InternationalResourceForum.com

rganised by Bruce Shapiro and Wayne Floreani, the 2014 edition of MINEAfrica took place Monday, December 1 in the Great Eastern Room of London’s Andaz Hotel.

The one day conference is a great lead-in to the larger Mines & Money program taking place in London the same week. A less crowded atmosphere, and more intimate environment than Mines & Money, the one day program provides the perfect setting to engage with a number of key industry personnel. With this year’s event showcasing over 15 speakers in the mining industry it was evident that despite the downturn in the industry, there are still opportunities across Africa including key countries like Ethiopia and Zimbabwe. Here’s a snapshot of who was there and what they had to say:

Allana Potash Farhad Abasov, President and CEO

TSX Graham Dallas, Head of Business Development, EMEA, TSX and TSX-V Exchange

Focused on Ethiopia, Farhad paid particular interest to North Eastern Ethiopia with its hot and dry climate that allows them to utilise solar technologies to enhance their ability to extract “one of the shallowest deposits in the world.”

Formerly of the London Stock Exchange (LSE), Graham used his time at the platform to discuss the access that companies have by being listed on the Toronto Stock Exchange (TSX). In particular, he made note of its ability to reach a larger audience than its nearest competitor, the Australian Stock Exchange (ASX).

At only 100 metres depth, Farhad made note of the country’s food self-sufficiency and used the example of Saskatchewan Canada where the largest solution mining project in the world is based. The company’s total CAPEX is $642m USD.

Caledonia Mining Mark Learmonth, VP, Corporate Development and Investor Relations Since his arrival at Caledonia in 2008 Mark has made a point of presenting his company’s benefits including in his belief that, “we are significantly undervalued.” Since 2009, Zimbabwe has started using the US dollar as the functional currency. They are currently paying out dividends of 0.015 cents per quarter with more and more of the company being held by UK and Swiss investors. Under a more stable Mugabe government, Mark also made note, “don’t leave this room thinking the dividend is under threat.”

IRF Publsiher J. Landry, with Mine Africa President, Bruce Shapiro

8th Investing in African Mining

Hatch Goba Craig Simmer, Regional Director: Infrastructure EMEA Speaking about sustainability and community engagement, Craig touched on creating sustainable growth relating to business. This included the involvement of local suppliers for activities including building homes around mining sites. With some of their projects relocating complete communities for mine expansion, there is a concerted effort to work with local suppliers to enable more localised prosperity opportunities. In Craig’s own words, “We’re effectively building a brand-new town… we try to match supply development sustainably”. Kefi Minerals Harry Anagnostara-Adams, Executive Chairman Mining in Ethiopia, and floated as a junior, micro-cap explorer on AIM 7 years ago they have planned for construction less than 12 months from now. With significant numbers of Australian staff, Harry promoted the fact that in his eyes the company is “very, very tightly run… we don’t run head offices in London or elsewhere.” Ethiopia, as Africa’s only country not be colonised has a population of 93 million with 74

half the land size of Western Australia and is the world’s 5th fastest growing economy. The Ethiopian government is now overtly encouraging the minerals sector for the first time. Additionally, in December 2013, they acquired 75% of Tulu Kapi and set out a revised development strategy. MCD International Energy Solutions Manuel Duggal, MD The company, which has been in operation for almost two years is a TSX listed junior miner with its main project in the Horn of Africa. They are specialists in the supply of remote turnkey power solutions and mine utilities. With 20 years experience on international projects their presentation addressed fuel and power being the most expensive issues at a mine site. Diesel generated power is what most mines currently use because it is reliable – especially for remote applications, but it is expensive. Many organisations would need to find cleaner fuel options or face a review of their environmental impact assessment. During their presentation a case study was presented discussing their tender for a new power plant for a project in Tanzania. The end product is a solar-hybrid EV power farm with overall fuel cost savings of 26%. Importantly, it is the first solar pv/hybrid heavy fuel oil power plant at a mine.

Q2 2015 | InternationalResourceForum.com

“South Sudan is a

completely new gold province, 96% of the South Sudanese economy is oil.” Mark Parker, CEO, Equator Gold Holdings Control Risks Roddy Barclay, Senior West Africa Analyst Control Risks is a global risk management firm specialising in political strategic risks including crisis and security planning. Roddy spoke of a number of issues, in particular: • Political instability and conflict • Resource nationalism and contractual instability • A greater focus on local content heightens the risk of political interference and corruption • Islamic militancy is likely to persist in affected regions as we’re seeing with new terrorism in certain countries like Nigeria Interestingly, the terrorism threat is nuanced and many mining areas are unaffected – even in countries like Mali with Roddy calling Islamic militanantism a “generational issue”. More positively, overall conflicts in Sub-Saharan Africa are declining and the risk of an African “Arab Spring” remains low.

Sierra Leone and Guinea. Ministries have been closed, and there are ongoing issues of employees not turning up to work. Equator Gold Holdings Limited Mark Parker, Executive Director and CEO The company was founded in 2011 in South Sudan with Channel Islands based key shareholders including Sprott and Richmond (South Africa). In the company’s view, South Sudan is a completely new gold province since “96% of the South Sudanese economy is oil”. They have three gold targets with two of them nearing production. In Equator’s opinion the country represents great opportunity since nothing has been done in the country in 60 years. Mark is the former MD of African Eagle with 40 years of prospecting and corporate experience. Nedbank Capital Mark Tyler, Head of Resource Finance Mark used his time to address the topic of how to finance an African Mining Project. In his view, what’s been surprising is “the recovery of the juniors over the past few years.” Much of this contribution to recovery has been through Canada in the Toronto Stock Exchange. However his assessment was blunt, “Equity markets are tough. They’re not going to get better in the short-term.” In his opinion, “All of the South African banks have an interest in debt funding.”

In South Africa, the issues include the continuation of unrest in South Africa that will continue to constrict the sector’s growth and raise operational costs. Competition between unions is continuing to drive increased assertiveness. Issues with local engagement will remain a spark for discontent and disruption. Ebola will most likely be a major issue well into 2015 after the declaration of force majeure in some Ebola stricken countries like Liberia,

Nancy Eastman, Partner - Fasken Martineau

8th Investing in African Mining

(L to R) Wayne Floreani, Robert Friedland, Bruce Shapiro, Graham Dallas, Nancy Eastman

iNHEMACO (International Health Management Consultants) Albie de Frey, Director Albie provided a historical background to the Ebola virus and some of its key differences to other diseases as part of their topic on Ebola in West Africa. With the first case being identified in 1976 in Zaire, Ebola is an animal based disease that occasionally jumps to humans during the process of animal preparation for human consumption. Albie addressed the misconceptions about the disease and its relationship with other diseases like malaria, rabies and yellow fever. Sunridge Gold Corp Michael Hopley, President, Director & CEO With their feasibility study completed in 2013, they expect a mining permit in 2015. They have 210 million outstanding shares and point to Eritrea as a place of interest, being independent from Ethiopia for the last 22 years. GB Minerals Luis da Silva, President and CEO Working in Guinea Bissau which has a new 76

government on hand, and with the company offering all new Directors, GB Minerals offers very low liquidity with significant shareholders. Their Greenfield project is of the highest grade phosphate rock and they are connected with the capital city Bissau by 120km of paved roads. Ivanhoe Mines Robert Friedland, Executive Chairman and Founder Ivanhoe is currently involved in African projects including South Africa’s Platreef Project which is the only project in the world the Japanese have invested in. They also have interests in Congo’s Kamoa Discovery with Robert making note that Congo produces more copper than Canada. Additionally, Ivanhoe is also involved in Mongolia’s Oyu Tolgoi project which is designed to be the largest underground mine in the world, where they have been working with the local people to have part and parcel in the operation. IRF

www.mineafrica.com

Q2 2015 | InternationalResourceForum.com

Building Business Connections: Bringing Canada and Australia Closer Together

For Membership Information and Upcoming Events www.cacc.com.au Corporate Sponsors

Corporate Members

Honorary Advisors 77

Events

MBI 2014 EASTERN AFRICA Mining Business & Investment Conference Nairobi, Kenya By: Tabrez Khokhar

Safari Park Hotel, Nairobi - Kenya

Q2 2015 | InternationalResourceForum.com

he Mining Business and Investment 2014 (MBI 2014) Conference was held at Safari Park Hotel Nairobi Kenya for two days, the 16th and 17 of October.

The conference was organised by Prescon Ltd in partnership with the Kenya Chamber of Mines, UNDP and UK Trade and Investment. The event was well attended with a turn up of more than 300 delegates and a host of issues were discussed in the seven sessions, ranging from: • Mining Policy and Registration • Infrastructure Development in E.A in relation to mining • Fiscal Frameworks • Finance • Case Studies • Technology Advancements in Mining It also saw the launch of the EA Mining Review. Some of the keynote speakers included: Hon. Stephen Julius Masele,

Deputy Minister for Energy and Minerals, United Republic of Tanzania Dr. Melba Wasunna,

Co-founder and Vice President of Thamani Trust Cliff Otega,

CEO, Trans-Century Ltd. David Scott,

President & CEO, Tembo Gold

Stephen Mallowah,

Senior Partner, MMC Africa Law Amish Gupta,

Director Corporate Finance, Standard Investment Bank Dr. Tim Sharp,

Exploration Manager, Discovery Group, African Barrick Gold Exploration Kenya Ltd. Taita Taveta University College Scott Mumford,

Project Manager, Mining and Industrial Development Finance and Advisory Service Gachao Kiuna,

Rwandan International Trade Lawyer and Independant Consultant

Arthur Ndegwa,

Managing Director & Head of Energy & Natural Resources, Standard & Mutual Andre Olivier,

John Bosco Kangoga,

Group Head of Satellite Services, Liquid Telecom Group Tarn Brereton,

CEO, Tancoal Intra Energy, Tanzania Nisheet Devani,

Head of Business Development, Tancoal Intra Energy, Tanzania

@MBIEASTAFRICA 79

MBI 2014

Some of the key exhibitors at MBI2014 were: • Base Resources • Kenya Fluorspar • Atlas Copco • Panafrican Group • Case Construction • African Barrick Gold • United Spectrometer • Freight Forwarders • PRD Rigs • Vivo Energy • Taita Taveta University College • General Motors

www.prescon-int.com 80

Q2 2015 | InternationalResourceForum.com

SYDNEY’S HOME FOR EVENTS Resplendent on the edge of Sydney Harbour with breathtaking views over the water to the city skyline beyond, The Star Event Centre is an event in itself. Launched in January 2013, the $100-million Event Centre boasts cutting edge AV technology and lighting and hosted nearly 200 events for more than 145,000 guests in its first year alone! The Star also offers exclusive private dining room options, as well as five-star luxury accommodation in three separate towers within the complex. So when you’re planning your next event in Sydney, make it The Star. Enquiries, call The Star Sales Team on +61 (02) 9657 8568 or email starsales@echoent.com.au

EVENT CENTRE

PRIVATE DINING

80 PYRMONT STREET, SYDNEY STAR.COM.AU

FIVE-STAR ACCOMMODATION

/TheStarBusinessEvents

/company/the-star-business-events

UPCOMING EVENTS May 19th Uzbekistan International Oil & Gas Exhibition & Conference - 12 - 14 May, 2015

Tashkent, Uzbekistan www.oilgas.uz

African Utility Week

July Global Refining & Petrochemicals Congress

1 - 3 July, 2015 Delhi, India www.refpet.com

NSW Resources & Energy Investment Conference

12 - 14 May, 2015 Cape Town, South Africa www.african-utility-week.com

27 - 28 July, 2015 - Sydney, Australia www.eiseverywhere.com

4th International Convention on Marine Renewable Energy

10th RENEWABLE ENERGY 2015 EXHIBITION

20 May - 21 May, 2015 Nantes, France www.thetis-emr.com

June

29 - 31 July, 2015 Tokyo, Japan www.renewableenergy.jp

Aug

23rd European Biomass Conference and Exhibition

7th Guangzhou International Solar Photovoltaic Exhibition

Mines & Money Africa

ABM Week 2015

1- 4 June, 2015 Vienna, Austria www.eubce.com

18 - 20 August, 2015 Guangzhou, China www.pvguangzhou.com

8 - 11 June, 2015 Port Louis, Mauritius www.minesandmoney.com

17 - 21 August, 2015 Rio De Janiero, Brazil www.abmbrasil.com.br

Brazil Offshore

Tanzania Oil & Gas Expo

23 - 26 June, 2015 Rio De Janiero, Brazil www.brasiloffshore.com/en/

27 - 29 Aug, 2015 Dar-es-Salaam, Tanzania www.expogr.com/tanzania/oilgas/

Let us promote your event. Email: editor@internationalresourcforum.com 82

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