Mining Global - May 2017

May 2017

www.miningglobal.com

TOP 10 BIGGEST MINING COMPANIES IN INDIA

GUINEA

UNDER THE SPOTLIGHT HOW GUINEA ALUMINA CORPORATION HAS RAMPED UP ITS EXPORT VOLUME AND REFINED ITS CSR POLICIES

RESPONSIBLE MINING WITH ALLIANCE MINIÈRE RESPONSABLE

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EDITOR’S COMMENT

SMART. RESPONSIBLE. MINING WELCOME TO THE May issue of Mining Global!

This issue we ask, what makes a responsible mining operation in Guinea? The CEO of Alliance Minière Responsable sits down to our Q&A to talk about responsibility, safety, and transforming the Guinean mining climate.

Is the mining industry ready to have a technological conversation? With EKA Solutions’ award winning analytics tool, it looks like that conversation is well underway. We speak to the CEO and founder of the company about making smart decisions, and smarter commodities.

Who are the major players in the mining world? Better yet, where are the major players choosing to base a mining operation? We look at 10 of the biggest mining companies to touch base in India.

Focusing on Guinea again, the Guinea Alumina Corporation is our special report as we detail the company’s CSR policies and ramped up export volumes.

Enjoy the issue!

Dale Benton Editor dale.benton@bizclikmedia.com

F E AT U R E S

PROFILE

Responsible mining with Alliance Minière Responsable TECHNOLOGY

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12 10 BIGGEST

Smart decisions.

Smart commodities.

LIST

MINING COMPANIES IN INDIA

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May 2017

C O M PA N Y P R O F I L ES

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Chibuluma Mines Plc (METOREX GROUP) Africa

Guinea Ministry of Mines and Geology Africa

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Guinea Alumina Corporation Africa

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PROFILE

Responsible mining

with Alliance Minière Responsable

Mining Global speaks with the CEO of Alliance Minière Responsable, as it stands on the threshold of transforming the mining climate of Guinea in an ethical and responsible way Writ ten by: DALE BE NTON

PROFILE

TELL US A BIT ABOUT YOURSELF AND THE CREATION OF THE ALLIANCE MINIÈRE RESPONSABLE? My name is Romain Girbal and I am the CEO of AMR. Together with my business partner Thibault Launay, we started this mining project over four years ago.

Around five years ago, I decided to leave my job in London [first a junior consultant with Glencore, then Director of legal department at Harvest Energy Limited] because I had always felt that I possessed an entrepreneurial spirit and I wanted to 8

May 2017

try and develop my own company.

My destination was Guinea. I moved there because I knew from my experience in the financial industry that this was a country that was ‘waking up again’. This means that there are so many opportunities and potential businesses links and industries to create and develop.

It didn’t start out with any specific mining focus. During the early days of AMR we analysed many different possible businesses in the country, but we were soon presented with an opportunity to develop a mining project and therefore we decided

RESPONSIBLE MINING

to undertake this great challenge.

What is the vision of the alliance? Talk us through the Bauxite potential in Guinea.

What does this mean for the future of mining in Guinea?

Guinea has the biggest world reserves of bauxite and it is of the best quality in the world. But like many sectors in Guinea, the mining industry is an incredibly under developed one. We saw this as a great opportunity to make a change.

Over the course of the last five years, a number of big players of the bauxite industry have arrived in Guinea, looking to establish a major footprint in the area. We are talking some very serious companies like SMB, a Guinean-Chinese consortium which was the first new market entry into the West African country for 15 years. Since then there are also some companies like ALUFER (through the Bel Air Project) and the Guinea Alumina Corporation (GAC) that are very close to a stage of production.

Quite frankly, this is an amazing sign for Guinea as it represents a real

shift in the industry, showing that this is an area that can and does attract some serious major investments.

AMR’s project started over 4 years ago. We went through some hard times because we had to continue developing our project during the Ebola crisis. AMR team never stopped working in Guinea during this tragedy and we managed to finalise all our engineering studies.

Now that the crisis is over and that AMR is not so far anymore to get into production, we focus on the DNA of our company which is to develop a mining production with the highest standards regarding the environment and the local communities.

What were some of the challenges you faced when starting the AMR? When you are starting any form of mining operation in Africa, challenge is inescapable. One challenge in particular was a cultural one. When we started out, my business partner and I were in our twenties and when you’re that young, it is not always easy to be taken seriously in this sector. You could come with a world 9

PROFILE of experience and work behind you, but that initial reluctance is something we found happening more and more.

As a way of mitigating this, we knew that we had to work extremely hard and show that despite our youth, there was an efficiency like no other in the development of a project that will create several hundreds jobs in the country. It was difficult and there were some testing times, but thankfully we always had great support from the Guinean Authorities over the last four years to get us to where we are today.

What have been some of the biggest achievements to date?

Our biggest achievement has been our efforts to raise money during the Ebola crisis for the development of a green field mining project in Guinea.

It has not been easy, but we never gave up and we managed to meet our current shareholders who love Africa, they really do and they are people who believed strongly in the project and who knew that Africa and more specifically Guinea had an amazing bauxite potential waiting to be developed.

How does the AMR 10

May 2017

“rethink” mining?

With the Responsible Mining Alliance, we wanted to show that you can do mining differently. We’re trying to set new standards in the mining industry, first in Guinea where we are starting our operations. Mining is about more than extracting raw materials. It can also be a way to get local communities involved in mining by starting win-win partnerships for everybody.

For any mining organisation, how important is the role of Corporate Social Responsibility (CSR) and working with local governments/communities to benefit and support the economy of the country?

CSR is the key for to becoming a successful mining development, no matter where you are based. You cannot develop a major surface mining project without the full support of the local communities and for this they have to feel associated to the project.

To achieve this goal, AMR will hire and train people from the local communities when and wherever possible. We will strive to procure our food supplies from local producers in order to support local production

RESPONSIBLE MINING

“Our biggest achievement has been our efforts to raise money during the Ebola crisis for the development of a green field mining project in Guinea”

at a good, competitive price.

AMR will work closely in a transparent way with local chief of villages in order to find solutions to any potential issues that could emerge.

In addition to this, we are working closely with the local and national authorities in order to make sure that we take into account their advices and their concerns should there be any.

AMR is already very involved in improving the educational level of the Boké mining school, giving classes on a regular basis to its 11

TECHNOLOGY

Smart decisions.

Smart commodities.

How EKA Solutions’ award winning cloud analytics tool shows an industry ready to engage in technological conversation Writ ten by: DALE BE NTON

TECHNOLOGY

THE MINING INDUSTRY is an industry that has been lagging when it comes to the adoption of technologies.

Many cite this mentality as a direct result of the downturn in commodities over the last few years that many believe the industry is still recovering from to this day. But it is important to note that (and we here at Mining Global have worked hard to highlight this) conversations are happening at 14

May 2017

the top tier level of companies, all with the goal of creating a more efficient and profitable business in the end.

This is where EKA Software Solutions comes in. As a leading global provider of Smart Commodity Software Solutions, EKA sits at quite an advantage point – capitalising almost perfectly on this technological turn throughout the industry.

Founded in 2004, EKA provides

SMART DECISIONS. SMART COMMODITIES.

“I discovered that the supply chain aspect of most businesses is very poor from a software perspective” – Manav Garg

‘best-of-breed’ solutions to manage commodity trading, enterprise risk compliance, procurement, supply chain, operations, logistics and decision support. The company provided services specifically to the agriculture space but over the years has moved to automotive, food & beverage, natural gas and of course, mining.

The idea behind the company came from a similar situation – a company lagging in its adoption of technology solutions.

“I discovered that the supply chain aspect of most businesses is very poor from a software perspective, which is incredible when you think of all the different facets – moving commodities, inventory quality and the management of supply chain,” says Manav Garg, CEO and Founder of EKA Solutions.

Garg comes from a background of trading in soft commodities in Singapore. It is this first experience that granted Garg with a unique insight into the supply chain technology make up of a business.

Fast forward 12 years and Garg and EKA Software Solutions found itself crowned the IT and Software Solution of the Year – Business 15

TECHNOLOGY Intelligence Category by Corporate Vision Magazine. The winning solution – the Commodity Analytics Cloud – is an advanced analytics solution that processes large volumes of data from different sources.

EKA solutions has a vision of serving the mining industry, allowing companies and operators to analyse the value chain and make better business decisions.

“What EKA does is enable these companies to capture data at every point of operations, from stock pile management, looking at the quality of those piles all the way to the logistics supply chain and distribution export management,” says Garg.

EKA Solutions has worked with some of the largest industry leaders in the world, including Tata Steel, BHP Billiton and Rio Tinto.

Through this experience within the mining space, Garg and EKA have been able to see where data analytics and cloud software can better serve a mining operator.

In the mining world there are a number of areas for data capture, particularly when it comes to the number of machinery throughout an operation. A mining organisation can 16

May 2017

determine a lot about its business processes through its machine technology and EKA can enable this.

“How do you take the data from the technology to make operations more efficient?” he says.

EKA Solutions’ Commodity Analytics Cloud enables users to assess the data and make informed business decisions to increase overall operational efficiency – all while using the same existing technology.

Garg admits that he has seen first-hand the lagging mentality towards the adoption of technology in the industry, but is well poised to benefit from the shifting attitudes the

Manav Garg, CEO and Founder, EKA Solutions

SMART DECISIONS. SMART COMMODITIES.

industry is now seeing.

“The downturn affected everyone but now we are seeing a more open mind set, with more conversations on how to better utilise technologies to bring about better cost effectiveness,” says Garg.

With any form of technology and adoption of said technology, there is an unavoidable element of risk involved. Risk is almost inherent with technology and this is evident across the mining space, particularly when it comes to time frames, from proof of concept to physical evidential benefits.

Technologies such as SAP solutions have been used across the industry over the last few years, but Garg believes that where EKA stands apart is in how quickly the profits come to fold.

“The speed in which companies can achieve real profitable benefits at the end are unlike anything these companies within the industry have seen before,” he says.

Garg is also quick to admit that

EKA is not the only company in the market offering a series of service tools designed to achieve similar results. But he feels that EKA has a key advantage in its specific knowledge of the mining space, allowing the company to offer industry commodity specific solutions.

“There are other companies that provide similar tools that digitise the value chain or the supply chain of a company, but these are much more technical, very rarely do these businesses fully understand their 17

TECHNOLOGY client’s core business,” he says.

In working with companies like BHP Billiton and Rio Tinto, Garg believes this is indicative of the shifting nature of the industry, one in which big industry leaders are showing the large scale demand of an industry that is open minded to the adoption of business technology solutions.

“We are definitely in a new world with a more modern way of buying things.

People don’t want to spend years implementing technology like SAP, they don’t have the [patience to live through the risk of implementation for two to three years, spending millions of dollars to discover whether there is any benefit at the end of it all,” says Garg.

The company has brought technology to market that does not require the wait for long sales cycles and buying cycles. EKA Solutions is the world’s first company to bring the digitisation of supply chain to the mining industry – focusing on the decision making aspect, and how data analytics can allow companies to make informed decisions and create a more efficient business in the process.

It is one thing to say a technology solution is good for the industry, it is another to show the proof is in the 18

May 2017

“What EKA does is enable these companies to capture data at every point of operations” – Manav Garg pudding. For EKA Solutions, being crowned the IT and Software Solution of the Year is a proof point of the company’s place in the industry.

Crunching the numbers, and further evidence of an industry more open to the adoption of technology solutions, EKA saw sale of its Commodity Analytics Cloud increase over 400 percent in 2016. It is clear that the mining space is ready to embrace new technologies and create a better, more technology savvy industry.

For EKA Solutions, that’s music to the ears of Garg.

“We want to see the wider adoption of technology solutions,” he says.

“Mining companies are behind in this regard, but they are getting there and we are here, ready and waiting to be able to provide them with the enterprise technology to suit a wide range of their needs.”

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TOP 10

10 BIGGEST MINING COMPANIES IN INDIA When it comes to major players in the mining industry, the mind often runs to Canada, Australia, or even Russia. Here, Mining Global looks at 10 of the biggest mining companies based in India Writ ten by: DALE BE NTON

TOP 10

HINDUSTAN ZINC LTD

10 NATIONAL MINERAL DEVELOPMENT CORPORATION INDIA Incorporated in 1958 as a Government of India fully owned public enterprise.

Under the administrative control of the Ministry of Steel, Government of India, the NMDC is India’s single largest iron ore producer, presently producing about 30 million tonnes of iron ore from three fully mechanised mines. The NMDC is actively involved in the exploration of a wide range of minerals including iron ore, copper, rock phosphate, lime stone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, and beach sands.

NMDC is presently producing about 20 million tonnes of iron ore from its Bailadila sector mines and 10 million tonnes from Donimalai sector mines.

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Hindustan Zinc, a subsidiary of Vedanta Group, is an exploration company with a key interest in zinc, lead and silver. The company is one of the world’s largest integrated producers of zinc, while also being up there as one of the major players in lead and silver production.

Hindustan has a metal production capacity of over one million tonnes per annum across its key zinc mines in Rampura Agucha and Sindesar Khurd, as well as smelting complexes in Chanderiya and Dariba in Rajasthan.

There is also power generation on the agenda, with the company owning 474 MW of coal based thermal captive power plants in Rajasthan to support its metallurgical operations. This environmentally friendly power generation includes 274 MW of wind energy and 35.4 MW from waste heat generation.

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VEDANTA

Vedanta is one of the world’s largest natural resources company with interests in Zinc, Lead, Silver, Copper, Iron Ore, Aluminium, Power and Oil & Gas, with a significant foothold across India.

The company has a number of major operations across - deep breath copper (Vedanta Ltd. Copper Division – Sterlite Copper), zinc (Hindustan Zinc Ltd), aluminium (Bharat Aluminium Company Ltd, Vedanta Ltd – Aluminium Division), iron ore (Vedanta Ltd – Sesa Iron Ore), oil & gas (Cairn India Ltd), and power (Vedanta Ltd – Power Division, MALCO Energy Ltd, Hindustan Zinc Ltd).

And breathe.

The fully integrated zinc operations currently hold 79 percent market share in India’s zinc industry. Vedanta is also one of the largest silver producers globally with an annual capacity of 16moz.

There is huge end-demand for zinc in India, particularly since the galvanizing sector continues to deliver strong growth. The country’s investment in infrastructure is also driving enddemand for zinc, and this momentum is likely to continue for many years.

HINDALCO Hindalco Industries Limited is the metals flagship company of the Aditya Birla Group and just so happens to be an industry leader in aluminium and copper. A turnover of a small sum of US$17 billion makes Hindalco the world’s largest aluminium rolling company and one of the primary producers of Aluminium in Asia.

Hindalco has operations in aluminium, and copper, with a world class copper smelter that stands as one of the world’s largest custom smelters at a single location.

The company’s aluminium smelting operations - and there are many (Uttar Pradesh, Odisha, Madhya Pradesh) - produce a combined 1.3 million tonnes of primary aluminium per year.

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TOP 10

NATIONAL ALUMINIUM COMPANY LTD

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Established in 1981, NALCO is a Navratna CPSE under the Ministry of Mines, Govt of India.

The company has a 68.25 lakh TPA Bauxite Mine & 22.75 lakh TPA Alumina Refinery located at Damanjodi in Koraput dist. of Odisha, and 4.60 lakh TPA Aluminium Smelter & 1200 MW Captive Power Plant located at Angul, Odisha.

But it’s not only metals, NALCO also has two wind power plants - A 50.4 MW wind power plant at Gandikota, Andhra Pradesh and another of 47.6 MW wind power plant at Jaisalmer, Rajasthan.

Nalco has a fully mechanised opencast bauxite mine in Damanjodi. The present capacity of mines at Damanjodi, is 68.25 lakh TPA, which works out around 6825,000 tonnes per annum.

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05 RAJASTHAN STATE MINES AND MINERALS LIMITED One of the premier public sector enterprises of the government of Rajasthan, with a primary focus in mining and marketing of industrial minerals. The company has a number of mining operations focusing on phosphate, lignite, limestone and gypsum.

The major activity of RSMML is the mining of rockphosphate ore, with one of the largest mines in the country at Jhamarkotra. Jhamarkortra is a major player in contributing 98 percent of rock phosphate production in India.

The company also owns and operates a number of Lignite deposits, with the Giral mine producing around 12, 00,000 MT per year.

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03 GUJARAT MINERAL

DEVELOPMENT CORPORATION LTD

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HINDUSTAN COPPER Incorporated under the administrative control of the Ministry of Mines, Hindustan Copper Ltd is the nation’s only vertically integrated copper producing company. Hindustan manufactures copper from the stage of mining to beneficiation, smelting, refining and casting of refined copper metal it downstream.

The bulk of the operations are spread across India: Khetri Copper Complex (KCC) at Khetrinagar, Rajasthan, with the Indian Copper Complex (ICC) at Ghatsila, Jharkhand, Malanjkhand Copper, Project (MCP) at Malanjkhand, Madhya Pradesh, and Taloja Copper Project (TCP) at Taloja, Maharashtra.

Incorporated in 1963 to develop major mineral resources in India, with a silica sand quarrying plant for crushing and screening of silica sand required the glass industry. Fast forward nine years and the company was granted a Lignite Mining Lease at Panandhro, Dist. Kutch. It started its lignite mining operation which gave an opportunity for GMDC to develop its first lignite mine to cater the fuel demand of the industries in the state.

As recent as 2015, the company announced a lignite mine of 1 mMT per annum capacity at Umarsar, Dist. Kutch. With six operating lignite mines in the state, the GMDC became the largest merchant seller of lignite in the country. GMDC has also set up a 1.5 million TPA Pyrite Removal Plant at Bhavnagar Lignite Project on Built on Operate (BOO) basis for removal of Pyrite nodules.

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TOP 10

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BHARAT ALUMINIUM COMPANY Bharat Aluminium Company, a subsidiary of Vedanta Resources, Bharat has the distinction (one of many) of being the first to have Captive Power Plant. BALCO has two bauxite mines in Chhattisgarh state – one at Mainpat with a capacity of 7, 50,000 TPA and the other at Bodai Daldali (Kawardha) with a capacity of 12,50,000 TPA. BALCO is playing a crucial role in introducing aluminium as a potential alternative to other metals like steel in construction, and copper in power transmission industry, and was the first to produce alloy rods for conductors used across the industry.

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KUDREMUKH LTD Kudremukh is a flagship company under the Ministry of Steel, Government of India, formed in 1976. It is the country’s prestigious Export Oriented Unit, with iron ore mining, filtration technology and production of high quality pellets.

The company has a major pelltization complex located in Mangalore, the coastal city of Karnataka. There, the annual capacity of the plant is around 3.5 million tons of iron ore pellets.

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CHIBULUMA MINES: A MODEL MINE IN A MINING WORLD WRITTEN BY DALE BENTON PRODUCED BY RICHARD DEANE

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WHAT DOES IT TAKE TO OWN AND SUCCESSFULLY OPERATE A ‘MODEL MINE’? BETTER YET, WHAT MAKES A ‘MODEL MINE’ AT ALL? THAT’S THE QUESTION FOR JACKSON SIKAMO, CHAIRMAN AND COUNTRY MANAGER AT CHIBULUMA MINES, A METOREX SUBSIDIARY 30

May 2017

AFRICA

T

he Chibuluma mining area, located south of Kitwe in Zambia, is often referred to as a ‘model mine’ operation in Zambia.

This is a result of significantly high copper grades, higher than any other mine in the country, a commitment to Corporate Social Responsibility (CSR) that is unrivalled, and a financial model that not only brings shareholder value but consistently pays taxes into the Zambian Government.

The reality facing Chibuluma Mines right now is that the company is staring the end of the life of mine right in the face. Chibuluma, currently, has only four years left on its life of mine.

Chibuluma Mines has invested around $32million in exploration activity since 2010 in the hope of finding new resources and opportunities to extend that life of mine.

Jackson Sikamo, Chairman and Country Manager at Chibuluma Mines, a Metorex Subsidiary, admits that the company hasn’t discovered a significant operation just yet, but it’s not all doom and gloom.

“Despite this, we’ve actually been able to extend the current

ore body that we have right now.

The fact that we have four years left comes from the exploration work we’ve been doing,” he says.

A MODEL MINE? To be a ‘model’ in any industry is no small feat, but in the mining industry it’s a monumental achievement.

This is a feeling shared by Sikamo, who admits that despite the mine contributing less than two percent of the country’s copper production, there is no mine like Chibuluma.

“In terms of efficiency, good governance, stewardship and the contribution to the community, Chibuluma stands tall above any other mine,” he says.

Mining in Chibuluma has been ongoing since 1955, with Metorex acquiring the mine in 1997. The development and transformation of the mine into the model operation that it is today began in late 2006. During that time, Chibuluma experienced success after success, with production levels increasing year on year from 10,000 tonnes in the first year until it reached a peak high in 2013 when

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Chibuluma Mine is a fully mechanised trackless mining operation. The performance of tyres has a direct impact on the overall efficiency of the mining operation. Tyreport joined the Chibuluma team in November 2016 to provide a full tyre supply and maintenance service. This partnership has resulted in improvements in MTTR, service delivery and overall safety.

- Jackson Sikamo, Country Manager at Metorex

Tel: +260 212 216216 Fax: +260 212 216 217 Mobile: +26 0966 788788 info@tyreport-zambia.com P.O. Box 23321, Kitwe-Zambia.

AFRICA

the mine produced 18,124 tonnes of copper which is to date the highest amount of production.

Come 2014, the copper grades began dropping but Chibuluma continued to produce significantly high amounts of copper ore at 604,000 tonnes – the current annual highest production from the ore body.

So where does Sikamo enter the fray?

His introduction as General Manager in 2013 in itself is a major contributor to the significance of the Chibuluma mine.

“I was the first Zambian General Manager of an operating mine since privatisation started in Zambia back in 2000,” he says. “That’s a major success for a foreign investor who places a level of trust in the abilities of the Zambian people.”

That foreign investment comes in the form of Jinchaun Group, a Chinese state owned mining company. Jinchaun Group acquired Metorex in 2012 and Sikamo points to that foreign ownership as not only a key success, a major foreign conglomerate investing in Zambian mining, but a major contributor to the livelihood of Chibuluma through the provision of additional resources.

870

Number of employees at Chibuluma Mines Plc

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CHIBULUMA MINES

THE CHALLENGE IN COMMODITY In the mining industry, navigating the challenges presented by commodity price cycles is fundamental. Since 2011, the price of copper has continuously fallen and reached its lowest price in January 2016.

This led Sikamo to pull together a major restructure program, a fivepoint program that would allow Chibuluma mines to continue to be a successful operation in spite of the difficult commodity cycle. “We looked very strongly at working to get every operation

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May 2017

IN TERMS OF EFFICIENCY, GOOD GOVERNANCE, STEWARDSHIP AND THE CONTRIBUTION TO THE COMMUNITY, CHIBULUMA STANDS TALL ABOVE ANY OTHER MINE

AFRICA

working above cost line,” says Sikamo, “from restructuring the management of mining enforcement, reviewing and reorganising employees and productivity levels to the cost of expenditure with specific regards to safety and of course equipment management.”

Throughout 2015 and into mid2016, Chibuluma focused on controlling the costs and ensuring every aspect of the business was operating at optimum levels, and it is through this razor-sharp focus that Sikamo can happily report

that 2016 proved to be extremely successful regarding copper production and reduced losses.

WORKFORCE OPPORTUNITIES The success of Chibuluma has come not only from the major internal restructure but also each and every employee of the company. From the mine workers operating the machinery to the project managers to the executive level leadership teams, the input of each employee is crucial to the future success of the company.

In Zambia, a major challenge in this

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COPPERBELT ENERGY CORPORATION The Copperbelt Energy Corporation Plc (CEC) is an independent power transmission, distribution and generation company, with interests in closely linked businesses in Zambia and the Sub-Saharan African region, including optic fibre based telecommunications.

- A member of the Southern African Power Pool - Listed on the Lusaka Securities Exchange - Accounts for over 50% of Zambia’s power consumption - Owns and operates over 1,000 kilometres of high voltage transmission lines and 42 substations covering Zambia’s mineral-rich region of the Copperbelt - 80MW embedded thermal generation capacity (emergency power supply) - Co-owns and operates the Zambia-DRC interconnector

www.cecinvestor.com

Operations Head Office 23rd Avenue P O Box 20819 Nkana East, Kitwe Tel: +260 212 244556 Fax: +260 212 244040 info@cec.com.zm Corporate Office First Floor, Abacus Square Stand No. 2374/B Thabo Mbeki Road, Lusaka Tel: +260 211 261298 Fax: +260 211 261640

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regard is skills development, with Sikamo admitting that skills at an artisanal level are difficult to obtain.

This is where the investment of Jinchaun has also benefitted the operation. Chibuluma currently has a direct labour force of 340 employees. Only 11 of these employees are expats, employed at various levels but largely in key management positions and equipment maintenance. This is very much a deliberate choice for Sikamo. “We are looking at getting the maximum benefit of these expats in terms of output but also using this workforce to be able to train our local employees,� he says.

This mentality extends further to the many mining contractors that operate at Chibuluma. One particular contractor has 15 expat employees, again with the same focus on enriching the Zambian workforce. “These expats are here to ensure the improvement of productivity and ensuring

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CHIBULUMA MINES

THESE EXPATS ARE HERE TO ENSURE THE IMPROVEMENT OF PRODUCTIVITY AND ENSURING KEY SKILLS ARE BEING PASSED ON TO THE LOCAL EMPLOYEES SO THAT IN THE NEAR FUTURE, WE CAN HAVE A FULL ZAMBIAN WORKFORCE

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IN THE QUEST TO MINING EXCELLENCE, IT’S IMPORTANT TO IDENTIFY A LEADING HYDROCARBON PARTNER.

FUELLING MINING

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We listen to your needs and tailor a fully integrated “Total Fluid Management” and “Value In Use” solution to suit your business. Our offer goes much further than on-site Hydrocarbon Management by focusing on the wider mining operation. This is achieved by bringing down the “Total Cost of Ownership” of mining through providing security of supply from the best routes, best-in-class customer service and technical support.

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Contact Person: David Chen Email: daw999@126.com Tel: +260 978 435 888 Plot No: 402, Industrial Road, Chililabombwe, Zambia

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key skills are being passed on to the local employees so that in the near future, we can have a full Zambian workforce,” Sikamo says.

Across the industry mining operators are dedicated to hiring local where possible, but Sikamo admits that while this is the case with Chibuluma, there is a clear strategic roadmap with regards to employing both expats and Zambian locals. This strategic roadmap allows Chibuluma to operate without compromising on productivity and efficiency.

1997

The year that Chibuluma Mines Plc was founded

ABOVE AND BEYOND Through its leadership and management, copper production and the provision of working opportunities for Zambian people, one could argue that this is enough to justify Chibuluma’s status as a ‘model-mine’.

But for Jackson and Chibuluma, it is the commitment to enriching the local community and Zambian economy that truly cements the company’s place as a good corporate citizen.

Chibuluma is consistently working to provide training, education and better healthcare facilities.

This has involved developing and extending a local school in order to better provide for students

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CHIBULUMA MINES

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and teachers, including provision of power. This has seen the school capacity extend from 46 students and two teachers in 2010 to over 900 students and 50 teachers currently.

With the life of mine entering its final stages, Jackson does not see the end but four more years of opportunity.

Through the continued support of Jinchuan, Chibuluma will continue its exploration activities in the country. “We have the skills, the successful lean running of the company and the people to continue well beyond those four years,� Sikamo says.

Mining operations have been in place at Chibuluma for over 50 years and through years of hugely successful redevelopment, looks set to continue long into the future.

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FOREWORD: AN INTERVIEW WITH GUINEA’S MINISTRY OF MINES AND GEOLOGY

WE ASKED DIAKHABY MAÏMOUNA OF THE MINISTRY ABOUT ITS ROLE IN THE COUNTRY’S MINING AND HOW IT GOES ABOUT CHAMPIONING RESPONSIBILITY Produced by Richard Deane 45

G U I N E A M I N I S T RY O F M I N E S A N D G E O L O G Y

Tell us briefly about the history of the Guinean mining Mining and the role that the Ministry plays in promoting and protecting it.

Guinea’s mineral tradition is centennial. Since ancient times, Guineans have been exploiting gold; a fact notoriously recorded in the legendary voyage of King Kankan Moussa in 1325 to Mecca.

However, it was not until colonial times that the mining industry was developed and the minerals riches of the country discovered, uncovering in the soil:

• 4 0 billion tons of bauxite, at more than 40 percent content of Al203, which represent over a third of global reserves of bauxite • 2 0 billion tons of iron ore, the largest and highest grade of untapped deposit of iron ore in the world • 700 tons of gold, and between 30 to 40 million carats of proven reserves of diamonds.

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The diversity and quality of the minerals coupled with 320 km of seacoast on the Atlantic allowing for evacuation through deep-water ports has helped the development of the Guinean mining Mining.

Over the years, Guinea has risen to become both Africa’s largest producer and the World’s second-largest producer of bauxite. The mining industry accounted for about 15 percent of the country’s gross domestic product in 2016. Mineral exports of bauxite, diamonds and gold accounted for 80 percent of the nation’s total exports in 2016.

With the advent of its transition into a democratic state in 2010, Guinea, through its Ministry of Mines and Geology, has undergone a series of reforms to promote transparency, accountability and sustainability in the mining Mining. The Ministry is keen on protecting and ensuring the judicious use of these resources for sustainable economic growth and development.

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Outline the importance of the forthcoming Symposium of Mines in raising the profile of Guinea.

The organisation of this event in 2017 is pivotal to the department’s mining promotion policy. The Symposium Mines Guinée (SMG) is designed for a better understanding of Guinea’s mining and investments potential.

The SMG will draw a clearer picture of Guinea’s business climate as well as the government’s strategic orientations and reforms.

The Ministry’s goal is to appeal to More information about SMG is available online:

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key mining players and connect qualified investors to Guinea’s largely untapped resources and promising projects. Industry leaders, junior companies, investors, institutions will receive detailed briefings on mining and exploration projects. In short the SMG will allow us to develop a strong networking value chain.

The aim is to organise the event on annual basis and make it West Africa’s definitive meeting place for mining professionals.

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Can you give us an overview of national industry developments and investment?

The Ministry of Mines and Geology has implemented comprehensive and courageous structural and institutional reforms to enhance productivity, accountability and sustainability in the extractive industry. Those steps include among others: The modernisation of its mining cadaster which is now available online at www. guinea.miningcadastre.org The creation of a one-stopshop for mining projects, with an internet portal covering all relevant information on permits and authorisations. In total, 107 permits and various authorisations issued by 13 ministerial departments during the year 2016 can be found on the portal.

The implementation of the Master Plan for Mine-Related Infrastructure Development, notably through the signing of the agreement to pool infrastructures

related to mines between major companies such as CBG, GAC, Rusal Dian-Dian and the State.

The establishment of a fully operational National Mining Commission for greater transparency.

The consolidation of these reforms initiated since 2010 has favored investment commitments in 2016 of more than $2.4 billion in the bauxite industry alone. Mining companies such as Dadco, Alcoa, Emirates Global Alumina, Anglo Gold Ashanti, Managem have all heavily invested in the Guinean mining Mining. Lenders such as IFC, Société Générale, BNP Paribas, UFK, Overseas Private Investment Corporation, Société Générale de France, Natixis, Crédit Agricole, ING, Africa Finance Corporation have in the past year alone financed many major mining projects in Guinea.

Production in the bauxite industry is predicted to reach 60 to 80 million tons by 2020. Production in the gold Mining is expected to reach 65 millions tons by 2020.

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G U I N E A M I N I S T RY O F M I N E S A N D G E O L O G Y

What are the Ministry’s regulations and/or views on the importance of environmental responsibility?

As stipulated in the Mining Code, any mining activity undertaken must comply with the legislation and regulations governing environmental protection and management as well as health.

In particular, any application for an authorisation or mining operation permit must include an Environmental and Social Impact Study in accordance with the Environmental Code and its implementing regulations as well as internationally accepted standards in this area.

Administrative requirements depend on the extent of the scheduled work, ranging from simple Environmental Impact Notice for an Exploration Permit to a detailed Environmental and Social Impact Study including for example a Hazard Study, a Risk Management Plan.

Aside from these regulations and legislation, the Ministry of Mines

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and Geology has implemented an environmental and social strategic evaluation (ESES) process, as a tool of sustainable development enabling a better consideration at the national level of environmental and social concerns.

The ESES aims to: (I) a ssist the Government in identifying nationally the environmental and social impacts of existing and future mining activities so as to avoid, so as to avoid, mitigate or compensate them by adopting an appropriate mode of governance; (Ii) p rovide the necessary information and knowledge to support ongoing dialogue with stakeholders.

Can you describe any current, relevant legislation?

Guinea adopted a new mining code on 9 September 2011, which was amended by the 2013 Bill. The new amended code has been widely acclaimed.

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How important is sustainability?

What is your major goal? Â The Ministry of Mines and Geology main goal is to transform the non-renewable resources of Guinea into sustainable development gains for all stakeholders. In that spirit, the government in partnership with the World Economic Forum, the International Finance Corporation, UNDP, the African Minerals Development Center and GIZ, launched and achieved the Responsible Mineral Development Initiative (RMDI) during 2016-2017.

The Ministry with its partners gathered together for seven months mining operators, local communities, civil society and the state around a shared mining vision to identify priority themes, areas for joint actions and approaches to sustainably advance Guinea mineral development. The recommendation that emanated from this initiative is informing the government’s national strategic plan for the mining Mining. The Ministry has a win-win and effective business approach to the development of the industry. In that respect, it has create a one-stop shop to promote greater efficiency in the delivery of non-mining permits and cut down on cost for mining companies.

For a sustainable approach to community development, the Ministry in collaboration with the PNUD, elaborated last month a CSR policy for the mining Mining.

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Guinea’s largest greenfield investment in 40 years Written by Wedaeli Chibelushi Produced by Richard Deane

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Guinea Alumina Corporation S.A. (“GAC”) is developing a bauxite mine and export facilities, at the same refining its CSR policies. We speak to the company’s Director General Aissata Beavogui about this important project for Guinea

“

I’m proud to be part of this project because it will bring hope and opportunities for Guinea,” Aissata Beavogui, Director General of Guinea Alumina Corporation S.A. (“GAC”) tell us.

Beavogui is spearheading the mining company’s bauxite export project, currently under construction in what is the largest greenfield investment in Guinea in four decades. A later phase envisages an alumina refinery.

GAC is passionate about the export project, though this is by no means the company’s sole focus.

Corporate Social Responsibility (CSR) and connecting with the national mining industry are also

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priorities for GAC. For instance, it is a platinum sponsor of the Symposium Mines Guinée – a summit organised by the Guinean government. We quiz Beavogui about GAC and how its ongoing project benefits Guinea.

Beavogui tells us that GAC was established in 2001. The project advanced well through completion of a Bankable Feasibility Study (BFS) along with approval of the Environmental and Social Impact Assessment (ESIA). However, the global financial crisis of 2008/2009 impacted the ability and interest of some of the partners to fund their share of equity.

Following a strategy change within BHP Billiton and Global

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Shapoorji Pallonji And Company Private Limited

Corporate Office: SP Centre, 41/44 Minoo Desai Marg, Colaba, Mumbai 400 005, India Tel: + 91 6749 0000 Fax: +91 66338176 Website: www.shapoorji.in Regd Office: Nagindas Master Road, Fort, Mumbai 400 023

M A FI N R II N CG A

Alumina in 2013, Mubadala and DUBAL of the United Arab Emirates acquired the remaining shares in the project in May 2013. They then transferred the ownership of GAC to the newly formed Emirates Global Aluminium (EGA).

“It was a very good thing for the country, because it’s the first-time the UAE has invested significantly,” Beavogui says. “Guinea is a major resource holder, and the UAE is an inspiring example of what countries with natural resources can do in development.”

EGA, which operates two aluminium smelters in the UAE, has consistently stated its strategic intent to secure raw materials through upstream

193 THE NUMBER OF DIRECT EMPLOYEES WORKING AT GAC

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G U I N E A A L U M I N A C O R P O R AT I O N

Aissata Beavogui Director General

Aissata Beavogui is the Director General of Guinea Alumina Corporation S.A. (“GAC”), a wholly-owned subsidiary of Emirates Global Aluminium (“EGA”). Beavogui has more than 15 years of experience in Audit, Finance and Accounting in the USA and Guinea, particularly in the financial services, Oil & Gas and Communications industries. She has previously held various senior positions with various major Audit advisors and consultants, and joined GAC as Governance and Compliance Manager in May 2014 and then in January 2016 in her current role.

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She holds a BSc in Accounting from the State University of New York- Binghamton, USA and a Certification as a Leading Professional in Ethics and Compliance from the Ethics & Compliance Officers Association (“ECOA”). She is fluent in both French and English.

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investments in bauxite and alumina.

Beavogui explains: “Strategically the objective is upstream integration from bauxite mining to alumina refining and then to the existing aluminium smelting. Ownership of a controlling position in bauxite is an important factor.”

The GAC bauxite mine project is a cornerstone of this strategy, which will ultimately yield a vertically integrated business with the capability of self-managing the processes from mine to metal.

The acquisition led to GAC revamping its whole infrastructure.

Beavogui walks us through the current project. “Right now, we’re in the construction phase,” she explains. “We are constructing the infrastructure that will allow us to export bauxite. The global demand for high-quality bauxite is mostly in Asia, such as China, and is expected to grow significantly over the next decade.”

The infrastructure being built includes a multi-user port terminal, commercial quay and supporting

infrastructure for mining, rail, and marine operations. GAC is also upgrading a rail system linking the mine to refinery locations, a harbour and channel works.

A later phase envisages the expansion of the bauxite mine and existing railway, expansion of the GAC Port Terminal and construction of an alumina refinery.

Differentiator The mining services sector is a majorly competitive business, with Guinea being a current focus for major foreign investment. However, Beavogui asserts that GAC is at an advantage. She explains: “What differentiates GAC is the expertise. If you combine it with EGA, we have nearly 40 years of experience in the aluminium industry.

We actively apply world-leading standards and technologies in all aspects of the project and we ensure that everything we do is in line with sustainable practices in environment, health and safety.”

We’re struck by two further

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With some of the world’s foremost capital projects under our belts, our innovative solutions are the benchmark for capital efficiency and predictability for the mining and metals industry.

We are proud to partner with Guinea Alumina Corporation S.A. on the development of their major bauxite mine in Guinea and to continue contributing to the growth of the mining industry in Guinea. www.fluor.com

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unique GAC features. Firstly, the company is headed by Beavogui, a Guinean woman. “It’s always been the motto of EGA management that this is a Guinean project, therefore we need the face and the image of the Guinean people as it is their project,” she says.

The mining sector is notoriously maledominated. In a 2014 study of the top 500 mining companies globally, Women in Mining UK found the mining industry had fewer women on boards than any other major industry. “I think it’s a big signal that EGA sent out in supporting women leadership by appointing me,” Beavogui, appointed in January 2016, says. “Especially in the context of my country where so few women are hired in high positions, we’re still struggling to have equality in industries such as mining

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“We have built a strong presence in-country with the support of the government and people of Guinea, and we are committed to creating an enduring legacy for the communities through infrastructure such as schools, health facilities, and a whole set of programmes for individuals impacted by our project” AISSATA BEAVOGUI, Director General

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or even the government itself.”

GAC’s social consciousness is also notable. The firm works with NGOs, contractors, consultants and local government services to implement community-based initiatives. Beavogui explains: “We have built a strong presence in-country with the support of the government and people of Guinea, and we are committed to creating an enduring legacy for the communities through infrastructure such as schools, health facilities,

and a whole set of programmes for individuals impacted by our project.” These programmes include those that improve the productivity of livestock and agriculture for the impacted communities.

GAC also provides training for Guinean adults and youths. “We provide adult literacy training and local skills enhancement programmes,” Beavogui says.

“We give information on health, for example drugs and alcohol, HIV programmes, or malaria.”

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Alongside the Guinean people, GAC aims to play a pioneering role in Guinea. It aims to preserve a sustainable environment based on world-renowned and national standards. GAC works with the Guinean Ministry of Environment to apply for an EISA (Environmental and Social Impact Assessment) certificate. “In collaboration with our government, we have produced an action plan in order to suppress,

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eliminate or reduce the impact on the environment and communities,” Beavogui tells us. The action plan is followed and regularly checked by the government.

Along with implementing its environmental action plan, GAC has several other ambitious future plans. For instance, it will share its accrued knowledge with attendees of Symposium Mines Guinée in May 2017.

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GAC’s future plans also extend outside of Guinea. When asked whether the firm wanted to expand its international market, Beavogui responds: “Absolutely, we are keen to sell our bauxite wherever the market leads us.

Wherever the demand is, we will provide.”

GAC’s ambitions sound grand, yet achievable.

Guinean bauxite is amongs the highest quality worldwide. GAC’s bauxite mine is in the Boké region of north-west Guinea, where it holds a concession on more than one billion tonnes of bauxite. Balanced with extensive CSR policies, GAC’s wider goals cement the firm as a definite ‘one to watch’ on the global mining stage.

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