The Sustainable Business Review Magazine by The Sustainable Business Review

CATEGORY

TEAM

THE GRAND HARBOUR REGENERATION CORPORATION

Editorial: Brian Jackson Susette Horspool Michael Minihan

ADDING 21ST CENTURY DESIGN TO 14TH CENTURY HERITAGE

PRODUCTION Karen Hue Jason Olayinka

RESEARCH

John Mills Joseph Philips Candice Nice Neno Lopes

CONTENT QUARTER 2 2018

NGC:

VANTAAN ENERGIA OY FINLAND

An internationally investmentgraded energy company

PROVIDING CLEAN, DOMESTIC AND AFFORDABLE ENERGY

SPECIAL REPORT:

THE GRAND HARBOUR

REGENERATION CORPORATION

PROFILE:

Ichthys: FLAMINGO

HORTICULTURE: SUSTAINABLE HORTICULTURE IN AFRICA

THREE MEGA PROJECTS IN ONE

AND SOME MAJOR INDUSTRY

EVENTS

14 22 30 46 56 64 74 82 94 114

VANTAAN ENERGIA OY FINLAND ELECTRICITY AUTHORITY OF CYPRUS ICHTHYS LNG PROJECT THE NATIONAL GAS COMPANY OF TRINIDAD AND TOBAGO FIRESTEEL RESOURCES DNI METALS NEWMONT MINING- GHANA GOLDQUEST MINING CORP. BRITISH AMERICAN TOBACCO SOUTH AFRICA FLAMINGO HORTICULTURE KENYA LIMITED

THE SUSTAINABLE BUSINESS REVIEW

EVENTS: BRAZILIAN SOLAR ENERGY CONGRESS (BSEC) Dates: Tuesday, 17th to Friday, 20th April 2018 08:00 to 23:00 The Brazilian Solar Energy Congress (Congresso Brasileiro de Energia Solar - CBENS) is the most important technicalscientific event in Brazil in the area of solar energy conversion and other renewable energy technologies. CBENS is the official congress of ISES Section the Brazilian Solar Energy Association (Associação Brasileira de Energia Solar - ABENS), and promotes the meeting of researchers, professors, students, manufacturers, entrepreneurs, traders and other professionals from this field.

GREEN MARITIME FORUM Dates: 23-24 April, 2018 Location: Hamburg, GERMANY Green Maritime Forum will offer a comprehensive program focusing on the expansion and development of shipping related processes. Utilizing the knowledge of expert speakers, industry leaders will be able to obtain the tools and practices they need to cultivate the most innovative and environmentallyfriendly Maritime business. Speakers and fellow attendees will engage and learn together, offering powerful insights on current industry trends, forming partnerships, identifying business growth opportunities, and cementing companies’ role as a force for good when they look for ways to protect the environment. It is a perfect chance to meet marine professionals and industry luminaries www.greenmaritimeforum.com

20TH INTERNATIONAL CONFERENCE ON SUSTAINABLE POULTRY PRODUCTION AND ANIMAL NUTRITIONPRAGUE, CZECHIA Dates: August 13 - 14, 2018 The ICSPPAN 2018: 20th International Conference on Sustainable Poultry Production and Animal Nutrition aims to bring together leading academic scientists, researchers and research scholars to exchange and share their experiences and research results on all aspects of Sustainable Poultry Production and Animal Nutrition. It also provides a premier interdisciplinary platform for researchers, practitioners and educators to present and discuss the most recent innovations, trends, and concerns as well as practical challenges encountered and solutions adopted in the fields of Sustainable Poultry Production and Animal Nutrition.

MOC 2018 MEDITERRANEAN OFFSHORE CONFERENCE & EXHIBITION Dates: 17 April 2018 - 19 April 2018 Location: Alexandria Governorate, Egypt MOC 2018 – Mediterranean Offshore Conference & Exhibition is the Egyptian Petroleum Sector’s biannual international meeting with the High Patronage of the Minister of Petroleum and Mineral Resources of Egypt targeting the Mediterranean oil and gas offshore industry.

The Sustainable Business Review - Quarter 2 2018

EVENTS

OFFSHORE WIND CONNECTIONS 2018 (OWC 2018) TEAM HUMBER MARINE ALLIANCE

Dates: Wednesday, 25 April 2018 at 18:00 - Thursday, 26 April 2018 at 16:30 (BST) Location: Hull, United Kingdom About Offshore Wind Connections 2018 Offshore Wind Connections (OWC) 2018 will be the sixth Team Humber Marine Alliance (THMA) annual offshore conference and has become the “must attend” event for all those interested in the hugely growing Offshore Wind Sector in the North Sea and beyond. Our chosen venue this year is the new Doubletree by Hilton Hotel Hull, located on Ferensway, Hull and is just a 7 minute walk from Hull Paragon Interchange Station. The Yorkshire & Humber region is set to become the epicentre of the industry with billions of pounds to be invested in onshore and offshore infrastructure. The region provides the best location to access to all three of the UK’s largest wind farms and 80% of all North Sea offshore wind farms and 60% of the entire European market (2020) are within 12 hours steaming.

KENYA FOODAGRO 2018 - FOOD SHOW Dates: 04 - 06 September, 2018 Location: Kenyatta International Conference Centre Harambee Avenue NAIROBI. FOODAGRO AFRICA 2018 is Kenya's premier Food, Hotel & Agriculture exhibition. It will showcase top products, equipment and machinery presented by exhibitors from over 20 countries. Building on the success of previous events, the FOODAGRO AFRICA 2018 just gets bigger and better. Also contributing is the recognition of Kenya as one of the major access point in Africa and the huge volume of imports in the country for its own consumption for over 40 million consumers. Last year, Kenya imported goods valued at $200 million and re-exported goods worth $520 million. www.expogr.com

AFRICAN AGRI INVESTMENT INDABA Dates: November 26th - 28th, 2018 Location: Cape Town International Convention Centre, Cape Town, South Africa The African Agri Investment Indaba (AAII) is the global meeting place for agri investment in Africa. Bringing together over 600 key stakeholders – from governments, banks, financiers, investors, project owners, project developers, commercial farmers and the agro-processing industry – to discuss trends that will likely influence food and agribusiness economics over the next decade in Africa. Organised by the African Agri Council in partnership with African governments and government agencies, the Indaba delivers a unique mix of decision makers from across the agri value chain making it the most effective place to conduct business in the sector. www.agri-indaba.com Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

THE GRAND HARBOUR REGENERATION CORPORATION

ADDING 21ST CENTURY DESIGN TO 14TH CENTURY HERITAGE

The Sustainable Business Review - Quarter 4 2017

GHRC

Quarter 4 2017 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

Finding the right balance between modernizing a city while retaining its historical fabric is a delicate process which is not easy to get right. It often involves adding new structures to parts of cities which have remained essentially untouched for centuries. Ensuring that the new respects the old is essential. This was just one the challenges that faced the Grand Harbour Regeneration Corporation (GHRC) in Valletta, the capital of Malta, when it was tasked with redeveloping the city’s harbour area. The mainly baroque city of Valletta was built in the 1500s, and is a designated UNESCO World Heritage site. Improving on what was already there was going to be a tall order. We recently spoke with Dr Stefan Zrinzo Azzopardi, Chairman at the GHRC about the size of the challenge that confronted them, how the project has been even more successful than anticipated, and the difference it will make to the Maltese tourist industry in the years ahead.

HARBORING BIG IDEAS SINCE 2007 The GHRC itself is a public corporation which has been entrusted with the embellishment and upgrading projects in Valletta and its environs. Established in 2007, GHRC provides contracting and project management services including the design, implementation and certification of works and services - taking on a kind of quality assurance role for the whole project. Investment by the government in the Grand Harbour area was crucial to attracting private investment. As Dr Zrinzo Azzopardi says: “this included the Valletta Waterfront and the Cruise liner terminal, making Malta one of the main attractions for cruise liner tourism and yachting berthing and facilities. Moreover, a number of historical palaces and fortifications have been transformed into unique boutique hotels and cultural venues and museums.” The list of GHRC successes is already long and continues to grow. Dr Zrinzo Azzopardi says: “When GHRC was set-up its main project for implementation was the City Gate project that included a new entrance to the Capital City – Valletta and the building of the New Parliament, the restoration of the

The Sustainable Business Review - Quarter 2 2018

GHRC

historical open theatre, and the restoration and re-use of the Upper Fort St Elmo.” Whereas, 2017 has been a very busy year for the country, with Malta holding the Presidency of the EU17 bloc for a six month period ending in June,. 2018 shall be a great year with Valletta becoming the EU Capital City of Culture. GHRC projects are scheduled to be delivered in accordance with this, says Dr Zrinzo Azzopardi: “the embellishment and upgrading of open spaces were carried out at Castille Square, situated opposite the Office of the Prime Minister, Triton Square and the Valletta Landfront Ditch. Whereas the latter is still at a work in progress phase, Triton Square will be used for the official opening ceremony on 20th January, 2018, for Valletta as the EU Capital City of Culture.”

A SUSTAINABLE FUTURE IN URBAN DEVELOPMENT The scale of the challenge laid out at the outset of this article has meant that GHRC needed to learn quickly. The GHRC Chairman says, that thanks to the experience gained on the project over the last 10 years: “we are in a position to implement a project along its life cycle from design to completion. Moreover, GHRC has started to offer its knowledge in project management to other public corporations leading to the generation of revenue.” This knowledge is also passed downstream, as he acknowledges: “The resources at GHRC Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

The Sustainable Business Review - Quarter 2 2018

are mostly professional graduates in their late 20s that are supported by experienced officers in architecture, engineering and management. The leadership focus is on team work with space for individual skills and expertise.” A new generation of leaders has thus sprung up as a side effect of these projects. The City Gate project is sustainable in other ways too. For example, respecting the environment and not just the built environment. Dr Zrinzo Azzopardi tells us: “In the case of the New Parliament building, it is a sustainable construction with zero emissions; for heating and cooling energy is used from a system of 40 wells dug a hundred meters below sea level. The roof is carpeted with 600 square meters of photovoltaic panels.”

GHRC The partners called on board to assist with the operation included private contractors, following a tendering process, and public sector bodies. . Dr Zrinzo Azzopardi says: “Three main public entities have been instrumental in facilitating the implementation of our projects; these included Heritage Malta – the national entity responsible for projects related with culture and museums; the Restoration Directorate that specializes in the restoration

Elsewhere, at the Triton Square project, 20 water reservoirs have been built and these will take around 1,000 cubic meters of rain water. Fifty-two holm oak trees will be planted and around 13,000 square meters of natural stone will be paved.

PARTNERS GHRC has been particularly successful in knowing when to bring in external consultants for certain deliverables. As Dr Zrinzo Azzopardi says: “In the initial 5 years of its set-up, GHRC adopted an approach to subcontract the project management services whilst maintain a contracting, coordination and monitoring role. This experience led to a strategic shift in a capacity building process and more professional resources were recruited in architecture, engineering and project management services.”

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

of bastions and other historical facades and buildings and the Superintendence of Cultural Heritage that monitors and provides guidance on archaeological findings.”

THE FUTURE SHAPED FROM THE PAST The work of GHRC continues apace. It has been appointed as the Contracting Authority to implement the €24 million Regeneration of the Lower Part of Valletta – Marsamxett. The European Regional Development Fund (ERDF) will enable sustainable urban development interventions that will regenerate the lower part of Valletta through a multi-faceted approach that encompasses economic and social elements.

The Sustainable Business Review - Quarter 2 2018

GHRC In addition, GHRC is currently involved in the regeneration of Lower Fort St Elmo, the redevelopment of the Schrieber grounds into a health hub, a resource centre and a car parking and garden facility, and the Regeneration of Birzebbuga. Other national projects are being considered for implementation. The Chairman of GHRC concludes that: “GHRC is proud to be involved in these national projects that are adding value to the Capital City, the Grand Harbour area and other areas in Malta. This has been achieved by a small team of specialists at GHRC and the result of teamwork, supported by Government, the Ministry for Tourism and consultations with all stakeholders.” The small European capital of Valletta is being transformed for the better - it’s little wonder he feels such pride at being involved.

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

VAN

ENERG

PROVIDING CLEAN, DOMESTIC AND AFFORDABLE ENERGY

The Sustainable Business Review - Quarter 4 2017

VANTAAN ENERIA OY

NTAAN

GIA OY FINLAND

Quarter 2 2017 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW Finland has the coldest climate and the highest energy consumption in the European Union, according to research. This is because it is the northernmost country in the European Union, with most of Finland situated north of 60 degrees north latitude. 22% of energy consumption is used for the heating of buildings. Other factors that influence high energy consumption is the presence of energy-intensive industries, a high standard of living as well as long travelling distances. Vantaan Energy is Finlandâ&#x20AC;&#x2122;s largest energy company, and is owned by the local residents. The City of Vantaan owns 60 per cent and the City of Helsinki 40 per cent of the company. They produce and sell electricity and district heat, as well as provide natural gas to industry.

Mr. Pertti Laukkanen, M.S Vantaan Energia Oy. He be means that they do thin their customers or socie standing, they ensure tha the benefit of their owners they are responsible for of than they can even think to responsibility for the environm change. Finland does not h

He said that having a reliable a smooth supply of electric Energy Electricity Networks L and maintenance of Vantaa owned

The Sustainable Business Review - Quarter 2 2018

VANTAAN ENERIA OY

The Vantaan Incinerator:

Waste-to-energy power plant The Vantaan incinerator commenced operations in September 2014 and cost 300 million Euros to build. It is the largest incinerator in Finland. The ground-breaking plant operates two incinerators with a capacity to burn up to 400 cubic metres of waste per second. It doesn’t just process waste, but also produces energy from it.

Sc. (Eng.) is the Managing Director of elieves that responsibility for Vantaan ngs properly, whether it’s to do with ety at large. With their good financial at their operations are sustainable for s, i.e. the citizens. On the other hand, ffering their customers a better service o request. Vantaan is also aware of their ment: they contribute to mitigating climate have any fossil fuel and relies on imports.

e infrastructure in place is critical to maintain city and to keep Vantaan moving. Vantaan Ltd takes care of the construction, operation an’s electricity network. The company is fully by Vantaan Energy Ltd.

Laukkanen told TSB Review that the use of the incinerator has resulted in a one third reduction of fossil fuel use and a significant reduction in carbon dioxide emissions. This also resulted in a reduction in the price of district heating for the municipality. With effect from 2016, organic waste will not be allowed to be taken to landfills. This change in waste legislation influenced the decision to construct the plant. The plant is equipped with a storage bunker with the capacity to store the waste produced by 1,5 million people over 10 days. 320 000 tons of mixed waste is redirected from landfills and is now channelled to produce heat and electricity which is channelled into the grid. The plant is powered by natural gas, producing 920 Gigawatt hours of district heat and 600 Gigawatt hours of electricity annually. This equates to almost half of the city’s heat needs and 30% of the electricity need. Emissions produced by the plant are only 10 per cent of the volumes allowed by the environmental permit. The ground- breaking plant was designed by Pöyry. It is said that the architecture of the plant was inspired by a Star Wars theme. Visitors are surprised that the plant is quiet, clean and odourless, both inside and outside. The building contains the latest in building technology and meets strict environmental regulations. Paroc is one of Europe’s leading manufacturers of energy-efficient and fire-proof insulation

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

VEO Turns the Power On VEO provides customised electrification and automation solutions for power generation – regardless of energy source. Decades of experience makes us the preferred supplier for customers in power generation.

“

VEO helps to harness the renewables to pure energy.

Energy from the Finnish Forest: Martinlaakso power plant Vantaan has received an environmental permit and plans to produce energy from domestic biofuel in this currently discharged boiler at the Martinlaakso power plant. This will reduce the use of fossil fuels like coal and gas. Biofuel includes surplus shrapnel, sawdust, plywood industry and peat. The alteration work commenced in 2017 and it is expected that the new biogas plant would be in use at the beginning of 2019. Vantaan Energy has invested about 50 million Euros in cleaner energy and the future and the investment should be paid in less than ten years. This is in line with Vantaan’s goal to give up reliance

veo.fi solutions. A total of 2,600 m² of Paroc panels were installed on the exterior walls of the administrative building. Financing of 150 million Euros for the construction of the plant was provided by NIB. NIB finances projects that improve competitiveness and the environment of the Nordic and Baltic countries. The Bank offers long-term loans and guarantees on competitive market terms to its clients in the private and public sectors. NIB is an international financial institution owned by Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden.

The Sustainable Business Review - Quarter 2 2018

on coal in the next decade. It is expected that the carbon dioxide emissions of the power plant would be reduced by 34%, and the use of fossil fuels would also decrease annually by 34%.

VANTAAN ENERIA OY

Solar photo voltaic system Photovoltaics are one of the most sustainable renewable energy sources. Increased consumer demand for renewable energy means that the demand for photovoltaics will increase and this business will show increased profits as energy production increases and production costs are lowered. Vantaan has partnered with Naps Solar Oy as a shareholder and a subsidiary of the Naps Group subsidiary's photovoltaic systems. Pertti Laukkanen believes that solar energy is an easy, reliable and maintenance free method of generating energy and reducing the reliance placed on the grid. He said that their customers now have the opportunity to participate in their own electricity production to reduce emissions. Vantaan will supply photovoltaic systems as a whole service.

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

Inquisitive talent: Developers of future technology Vantaan employs about 350 employees, employed highly skilled and capable people. The talent think tank is full of inquisitive developers of future technology. As an employer of choice, they are always looking for the best people who are ready to roll up their sleeves and get stuck in. The company prides itself on doing things in the spirit of fair play and cooperation. They are a stable and successful company that takes care of its employees. It is important to them that their employees enjoy working for Vantaan. They offer a diverse range of fringe benefits and an interesting and stimulating work environment, where employees can strengthen their personal development. The company supports their people at work and at home by insuring them against accidents at work and in leisure-time activities and they also offer a wide range of occupational health services. It is important to them that their employees are able to combine work and family life as smoothly as possible. At work, they can enjoy a healthy lunch at the staff restaurant, and after work employees can take advantage of the on-site gym, massage services and hobby clubs. During leisure time, their employees can use their holiday cabins in PyhĂ¤ and Heinola. They also offer staff discounts on electricity.

The Sustainable Business Review - Quarter 2 2018

VANTAAN ENERIA OY

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

ELECTRICITY A 22

The Sustainable Business Review - Quarter 2 2018

EAC

AUTHORITY OF CYPRUS Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW As a small island nation in the Mediterranean, Cyprus needs to be proactive to ensure energy security for its citizens. With little over a million people, the country cannot take advantage of the economies to scale enjoyed by larger European states on the mainland grid. Its energy solutions therefore, need to be smart and sustainable, and arguably more so than most of its peers in Europe.

The Sustainable Business Review - Quarter 2 2018

The electricity Authority of Cyprus (EAC) is one company which has the mandate to provide these solutions. Formed in 1952 by the British colonial government of the time, it provides over 4 million kwH of electricity to the inhabitants of the island without the the help of any government subsidies through its growing network of power stations, wind farms and solar farms.

EAC The EAC is now an integral part of Cypriot life, operating on a near monopoly and still managing to provide one of the lowest priced electricity services in the European Union - facilitating access for the islandâ&#x20AC;&#x2122;s citizens and industry alike. Fulfilling that task meant we couldnâ&#x20AC;&#x2122;t but help be interested in seeing how the EAC operates, and whether it might provide an energy template for other small independent nations.

KEEPING CYPRUS ELECTRIFIED Because of its current status as the only electricity supplier on the island of Cyprus, the EAC has always had to keep one step ahead of domestic demand. For example, in 2017, the island reached an historical high of electricity demand - as much because of a heat wave being experienced by the island as its annual influx of tourists - and the EAC was still able to comfortably deliver to all.

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

HV/EHV cable solutions | Land-submarine-oil & gas

Cablel® Hellenic Cables is one of the largest cable manufacturers in Europe, offering its clients a wide portfolio of reliable and competitive cable

solutions. With almost 70 years’ experience and a strong emphasis on export. The company focuses on the development of value added products and services to meet the needs of its customers.

It manufactures power, telecommunication and submarine cables, enameled wires and compounds. Hellenic Cables serves major markets such as energy transmission and distribution, oil and gas, renewables, telecommunications and construction. Technical knowledge is combined with continual investment in state-of-the-art equipment to ensure levels of efficiency and quality meet the highest standards.

www.cablel.com 10-23-2017_KX_CABLEL_165X117_FINAL.indd 1

Cablel® Hellenic Cables Group is one of the largest cable manufacturers in Europe, offering its clients a wide portfolio of reliable and competitive cable solutions. With almost 70 years’ experience and a strong emphasis on export, it focuses on the development of value added products to meet the needs of its customers. It manufactures power, telecommunication and submarine cables, enameled wires and compounds. It serves major sectors such as energy transmission & distribution, oil and gas, renewables, telecommunications and construction. Technical knowledge is combined with continual investment in state-of-the-art machinery to ensure levels of efficiency and quality meet the highest standards. www.cable.com

The Sustainable Business Review - Quarter 2 2018

23/10/2017 2:34:19 μμ

The EAC also negotiated lower prices with the Cypriot government, meaning that the electricity supplied on the island will become cheaper and more accessible than ever before. Where previously, prices rose on a scale according to usage, now Cypriots can take advantage of flat fees, ensuring the first kilowatt costs the same as the last democratizing energy across the board. In addition, an audit carried out on behalf of the government in advance of market liberalization - whereby the EAC will no longer be the sole supplier of electricity on the island - said that its corporate culture was a ‘healthy one’ where employees and customers were highly respected. In addition, the audit gave the company a thumbs up on its sustainability initiatives.

EAC GIVING A GREEN LIGHT TO GREEN ENERGY The EAC has never used its leadership position in energy provision as an excuse to sit on its laurels when it comes to sustainability. Instead, as the measures we’ve seen show, it is the driving force in Cyprus for a move towards a greener, environmentally-friendly future. In cooperation with the government, it has passed many landmarks over the past decade which show its commitment to sustainability. The renewable energy component of Cyprus’ overall energy capacity currently stands at around 10%, all of it generated by the EAC. The EAC is working in conjunction with the government to ensure that the country reaches its stated target of 13% on this indicator by 2020. And given its current progress, that is eminently achievable. In August 2017, for example, the EAC also announced that it had purchased Cyprus’ first electric cars. This small fleet alone will reduce carbon emissions from cars on the island by 5.5 tonnes per year but perhaps more importantly, introduces electric charging stations, creating an incentive for others to take on the mantle and begin driving electric cars - the trickle which eventually turns into a stream.

By the end of 2015, a total of 1 914 photovoltaic systems had been installed, as well as some 14 Generation Units using biomass/ biogas with a total installed capacity of 9 714 kW. In that same year, the company’s six wind parks operating on the island generated 221 428 315 kWh. PARTNER FIRMS Providing to over a million end customers is a challenge, and as always, the EAC calls on a number of partners and suppliers to help it deliver on its mandate. Because of its open economy - a requirement of successful island nations - Cyprus has been able to attract world-class talent, which has contributed to many indigenous firms, several of which are currently partners of EAC. These include Koncar DST, a Cypriot distribution firm, the Hellenic Cable Industry SA, which supplies and maintains cables for the EAC and ENECON Mesogios, a GreekUS provider of complex plastics used in the provision of electricity. Others include Premium Lubrication Services Ltd, Nortest (Cyprus) Ltd, Elmasco Ltd and Trust International Insurance Company (Cyprus) Ltd.

This commitment is matched elsewhere, as its range of renewable energy resources illustrate.

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW academic articles, and providing a glimpse into how the EAC and Cyprus, could have an unlikely but influential say in the future of world electricity provision.

KONČAR Distribution and Special Transformers, Inc. Mokrovićeva 8, P. O. Box 100 HR-10090 Zagreb, Croatia

INITIAL RELUCTANCE TO FUTURE BOLDNESS At the time of its inception over 60 years ago, the Cypriot people were reluctant to take on electricity, believing it to be unreliable and a move away from old traditions. It says everything about the success of the EAC that now the whole island is electrified, catering not only to the locals but also the many millions of tourists that visit the island every year, swelling the population to many times its normal size. The EAC continues to innovate, often providing out-of-the-box solutions to energy problems which would not immediately occur to other energy firms. At Glastonbury 2017, its energy-harnessing toilets provided enough electricity to power the screens from concert goers’ urea. In the space of 6 months, the innovation has been peer reviewed in over 60

The Sustainable Business Review - Quarter 2 2018

In 2017, the Cypriot government announced that the domestic energy market would be fully liberalized, allowing new entrants to enter the market in 2019, which the EAC had catered to until now. It’s a move which EAC management welcome, allowing it to share some of the burden of energy provision, while gradually moving to more renewable forms of energy. Thanks to the EAC, any incumbent to the market will be entering a modern, vibrant and forwardlooking market for energy.

EAC

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

Ichthys: 30

The Sustainable Business Review - Quarter 2 2018

TH PR

ICHTHYS

HREE MEGA ROJECTS IN ONE

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW A mineral asset that can genuinely claim to be one of the biggest finds in its country would be impressive on its own but when that country happens to be Australia, one of the world's most mineral-rich territories? Even more impressive. But that is the claim which is made about the Ichthys LNG Project, located approximately 220 kilometres offshore Western Australia and currently nearly 90% complete. It is ranked as one of the most significant oil and gas projects in the world. Ir is hardly surprising that this is the case given its scale. The Ichthys LNG Project is effectively three mega-projects rolled into one, encompassing some of the largest offshore facilities in the industry,a state-ofthe-art onshore processing facility and an 890 kilometre pipeline connecting them. The team behind the project is headed up and operated by Inpex. Its joint venture partners include its major partner, Total, CPC Corporation Taiwan and the Australian subsidiaries of Tokyo Gas, Osaka Gas, Kansai Electric Power, JERA and Toho Gas.

A GAME CHANGER FOR AUSTRALIA The firms behind Ichthys are investing some $34 billion, almost $1,500 for every man, woman and child in Australia. Seldom are such commitments made without considerable forward thinking and the Ichthys Project is no different in this regard. When completed, the project's vital statistics will be quite incredible. It will be the first semi-

The Sustainable Business Review - Quarter 2 2018

ICHTHYS

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

submergible platform in Australian waters and will aim to capitalize on the more than 12 trillion cubic fe of energy rich Ichthys fields.

In addition, the field has an estimated 500 million barrels of exploitable condensate. When in full operatio it will produce an estimated 8.9 million tonnes of liquified gas and 6 million tonnes of liquified petroleu per annum.

DARWIN AND BROOME: THE ICHTHYS COMMUNITIES

Two cities will gain first hand experience of Ichthys before any of the others. These are Darwin an Broome, respectively the bases for the project's onshore and offshore operations. Each was chose because of particular qualities they bring to the table.

The Sustainable Business Review - Quarter 2 2018

ICHTHYS

eet

on, um

nd en

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

w w w. a m s a u s t r a l i a . c o m

DESIGN • ENGINEERING AIRPORT MANAGEMENT • INSPECTIONS • LEGAL COMPLIANCE • SURVEY • TRAINING • SECURITY

submergible platform in Australian waters and will aim to capitalize on the more than 12 trillion cubic feet of energy rich Ichthys fields. In addition, the field has an estimated 500 million barrels of exploitable condensate. When in full operation, it will produce an estimated 8.9 million tonnes of liquified gas and 6 million tonnes of liquified petroleum per annum.

DARWIN AND BROOME: THE ICHTHYS COMMUNITIES Two cities will gain first hand experience of Ichthys before any of the others. These are Darwin and Broome, respectively the bases for the project's onshore and offshore operations. Each was chosen because of particular qualities they bring to the table.

The Sustainable Business Review - Quarter 2 2018

ICHTHYS

Darwin was chosen from a shortlist of cities Black in September 2008. At that time, Inpex and its then sole joint venture partner, Total of France, announced the northern territory as the preferred home for its onshore processing facility. Huge gains have been made in the nine years since. Inpex has opened up an office in downtown Darwin, the project was granted full environmental approval partly through the efforts of that office - and a 3,500 accommodation village was established in Howard Village near Darwin. Two dredging campaigns also served to significantly deepen the city's shipping channel. In addition, the works at Darwin include an LNG processing facility at Bladen Point, which at 361 nĂŠctares will be one of the world's largest of its kind. At all times, the Darwin community has been kept engaged and informed on developments, with some

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

at 361 nĂŠctares will be one of the world's largest of its kind. At all times, the Darwin community has been kept engaged and informed on developments, with some of them making up the 8,000 strong workforce required to deliver the onshore element of the project. Broome is no less important than Darwin to the success of the project, providing vital support which includes workforce helicopter transfers and areas of logistics. In the current phase of operations, project vessels make up to 7 visits per week to the port of Broome for services and supplies. Understandably, this generates considerable interaction between the Ichthys workforce and the wider Broome community.

The Sustainable Business Review - Quarter 2 2018

ICHTHYS

Quarter 2 2018 - The Sustainable Business Review

ICHTHYS

POSH a partner of choice in offshore marine services PACC Offshore Services Holdings Ltd. ("POSH") is a leading offshore marine services provider with 60 years of operating experience and specialised expertise in offshore and marine oilfield services. With a young and diverse fleet of over 100 offshore vessels, POSH serves multiple segments of the offshore oil and gas value chain and is reputed to be a best-in-class service provider. POSH operates across four major business divisions: Offshore Supply Vessels, Offshore Accommodation, Transportation & Installation, and Harbour Services & Emergency Response. The company has a highly experienced team that is consistently recognised by customers for their professionalism and firm commitment to operational and safety excellence. Headquartered in Singapore, POSH is listed on the Mainboard of the Singapore Exchange, and is a subsidiary of Kuok Singapore Limited. POSH’s fleet operates worldwide, serving many of the world’s major oil companies and established international contractors in offshore oilfields across Asia, Africa, Middle East, Europe, North and Latin America.

Supporting the INPEX-operated Ichthys LNG project POSH is proud to have supported the delivery and installation of the Ichthys Explorer CPF, the world’s largest semi-submersible platform, and the Ichthys Venturer FPSO. Apart from this, POSH supported the delivery and installation of ENI’s Jangkrik FPU vessel and the Shell Prelude FLNG facility, the world’s largest offshore floating facility. The company’s state-of-the-art 750-pax semi-submersible accommodation vessel POSH Arcadia, was also appointed to provide accommodation support during the hookup and commissioning phase of these projects. The next landmark project is the delivery of the Egina FPSO vessel for Total. The company’s high-powered oceangoing tugs will be towing the vessel from the Samsung Heavy Industries shipyard in Geoje, South Korea to Nigeria. POSH’s participation in these major projects is testament to the company’s reputation of delivering results for their customers. www.posh.com.sg

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

Lankhorst Ropes develops and delivers world record breaking products to the offshore oil & gas industry. Applications range from Deepwater Mooring to Deepwater deployment. Utilising our proven rope technology we maintain our position as global leaders in the industry. For more information contact deepwatermooring@lankhorstropes.com

www.lankhorstropes.com

By one estimate, about 40 hotel rooms a day are occupied at a minimum by people working on the Ichthys Project. â&#x20AC;&#x153;These bases and these employees are going around town spending money in restaurants, with taxis, with accommodation providers,â&#x20AC;? Broome International Airport Group chief executive Paul McSweeney said. Furthermore, a dedicated Inpex logistics base has been established close to the port of Broome to support the project's drilling program. Eventually, up to 100 workers may be transported to the field every day with the same number travelling back on return flights. In short, the Port of Broome is set for a serious upturn in business.

The Sustainable Business Review - Quarter 2 2018

COMMITMENTS ACROSS MANY AREAS The team behind the Ichthys Project has made a number of commitments to sustainable business practice. Take the environment as an example. It is undertaking a world class environmental monitoring program throughout its construction phase. Reports on progress are made to the local community, various external agencies and the authorities. The environmental monitoring reports are highly comprehensive and the results are currently visible to all on the project's website. Monitoring includes everything from water quality and subtidal sedimentation monitoring, and recreational fishing and fish health monitoring to turtle and dugong monitoring and even underwater noise monitoring.

ICHTHYS

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

Another important commitment made by the team behind Ichthys has been to engage with the Aboriginal and Torres Strait Island peoples. These are often under-privileged communities which have been overlooked by government and other stakeholders. The Ichthys commitment to engage with these communities has already led to Aboriginal and Strait Island participating businesses to effectively engage in the construction phase of the LNG Project. An example can be seen in the subcontracting of Rusca Bros Services, a locally owned and operated company, which has been able to extend its service line as a direct consequence of collaborating on the project.

The Sustainable Business Review - Quarter 2 2018

PARTNER FIRMS A project of this scale involves a substantial number of partner firms, providing everything required to ensure that everything runs like clockwork. The full list is beyond the scope of this article but suffice to mention the main partners. The Wood Group has secured a five-year contract to provide subsea engineering services to Ichthys, while onshore operations will benefit from the global experience of Kentz Engineering Pty. Finally, asset management and flange management services are provided by Cameron Services International. Other partners include POSH Terasea, a specialist offshore marine service contractor, which assisted with delivering the 120,000

ICHTHYS

metric ton Ichthys Explorer and CSE Comsource Pty Ltd who have developed the considerable telecoms infrastructure required by the project. The list of the largest partners is rounded out with JGC Oceania pty, Baker Hughes Australia Pty Ltd, and Hartac Sales and Distribution Pty, Ltd

A NEW AGE IN ENERGY The ability of Australia to source its energy locally will significantly reduce the traffic currently generated to meet Australia's energy needs. The fact that it can nos turn to a state of the art system with world class environmental monitoring is also a huge bĂ´nus. Until recently, Australia was almost entirely powered by coal, the dirtiest form of fuel known. Thanks to Ichthys, this is soon likely to be a distant memory, with Australia significantly enhancing the sustainability of its energy well into the second half of the 21st century.

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

The Sustainable Business Review - Quarter 2 2018

NGC

NGC:

An internationally investmentgraded energy company

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

Commanding

an asset base of over US$ 6 billion, The National Gas Company of Trinidad and Tobago Limited (NGC) is one of the most reputable and largest companies in the English-speaking Caribbean when measured by assets. The globally-acclaimed Trinidad and Tobago Gas Model of Development can be attributed to the hard work of NGC in facilitating the development of one of the first natural gasbased heavy industrial sectors in the region. Established by the Government of Trinidad and Tobago in August 1975, NGC purchases, aggregates, sells and transports natural gas, which is used domestically in power generation, petrochemical production, and in the light manufacturing/commercial sector. So successful has been the NGC model that today the Company is part of a larger group of companies, which includes Phoenix Park Gas Processors Limited (PPGPL), National Energy Corporation of Trinidad and Tobago (National Energy), NGC CNG Company Limited (NGC CNG) Trinidad and Tobago NGL Limited (TTNGL) and La Brea Industrial Development Company Limited (LABIDCO). NGC has invested in over 1,000 km of pipeline infrastructure, both on land and offshore, with an installed pipeline capacity of 4.4 Billion standard cubic feet of gas per day (Bscf/d). In 2017, NGC transported an average of 1,400 million standard cubic feet of gas per day (MMscf/d) for domestic utilisation.

The Sustainable Business Review - Quarter 2 2018

NGC

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

With the capability, expertise and solid reputation to deliver large-scale capital projects on time and within budget, NGC most notably constructed and operates a 56-inch-diameter Cross Island Pipeline (CIP), the largest diameter pipeline in the Western Hemisphere.

NGC has been profitable since inception NGC is an investment-graded company which can access funding on both the local and international money markets for major capital projects. NGC has credit ratings of BBB from Standard & Poorâ&#x20AC;&#x2122;s; Ba1 from Moodyâ&#x20AC;&#x2122;s and AA+ from CariCris rating agencies.

The Sustainable Business Review - Quarter 2 2018

The Company has been profitable since inception and is a significant contributor of taxes and dividends to the Treasury. Its financial success has allowed the Company to self-fund key capital projects or, when necessary, access loans from international funding agencies. Collaborating with its shareholder, the Government of Trinidad and Tobago, NGC is actively engaged in promoting the country as a premier investment location for businesses desirous of expanding into Trinidad and Tobago through its subsidiary companies.

NGC

Forging strong linkages in the gas value chain NGC is strategically placed in the midstream of the local natural gas value chain, allowing it to forge strong linkages both upstream with natural gas producers and downstream with gas consumers. In the upstream sector, the Company has interests in exploration and production activities through a number of jointly-held investments in offshore blocks. Downstream, through its subsidiaries, NGC is involved in the development and management of port

and industrial sites at the Ports of Point Lisas, Brighton and Galeota; the extraction and export of natural gas liquids (NGLs) from Savonetta and the marketing of compressed natural gas (CNG) as an alternative transportation fuel NGC has also invested in a Natural Gas to Petrochemicals Complex.

Valued partner in the global energy business NGC’s President, Mr. Mark Loquan, said: “NGC’s vision is to be a valued partner in the global energy business. We have accrued a wealth of expertise over more than four

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW 8,75x6 Kennscott Ad.pdf 1 01/04/2014 01:23:33 PM

CMY

KENNSCOTT People-centered, dynamic, futuristic, client focused & safety conscious A service provider in the catering, hospitality and ship chandelling subsectors. KENNSCOTT has made its mark as a dependable, ethical, efficient and professional business partner to several leading energy companies, both locally and internationally. Our clients are guaranteed a Home away from Home experience with Service Excellence as our mantra. www.kennscottld.com

The Sustainable Business Review - Quarter 2 2018

NGC of non-governmental and community-based organisations through sponsorships, grants and contributions. It is therefore not surprising that as a national company with a national vision and mission, NGC’s CSR portfolio is extensive, with a focus on Arts and Culture, Sport, Education, Empowerment and Youth Development and Environmental Preservation.

decades and are ideally poised to share our knowledge with emerging energy jurisdictions, such as our continental neighbour, Guyana. Our partnership with Guyana will allow us to explore several options to assist that country in monetising its hydrocarbon resources sustainably, and for the benefit of its people.”

Moreover, NGC has an ongoing energy education programme, which focuses on teaching school children and more specifically communities straddling the pipeline network, about natural gas safety, as well as developing or stimulating a public mindset about energy efficiency in their daily lives.

Providing Industry Expertise in: Turnkey Automation Services

Mr. Loquan advised that similar partnerships with Suriname and Cuba were being assessed, and further afield, with Ghana and Mozambique. NGC is also involved in active negotiations to advance a gas supply contractual arrangement with neighbouring Venezuela to commercialise the Dragon marine field.

Control Valve Engineering and Services Custody Transfer Measurement Verification Maintenance Analyzer & Gas Chromatograph Sales & Services Instrumentation & Control Solutions Asset Reliability Services Machinery Health Management Educational Services

Investment in community safety and well-being NGC strives to be a leader and innovator in the field of corporate social responsibility (CSR) and believes in adding value to Trinidad and Tobago in ways that build shareholder value. NGC’s support ranges from developing programmes to partnering with and sponsoring the initiatives

LOCAL BUSINESS PARTNER (868) 636-1541

pml.co.tt

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW With regard to the latter, as a feature of responsible care, projects centred on renewable energy through its subsidiary National Energy is being given attention. This company is assisting the Ministry of Energy and Energy Industries and the Trinidad and Tobago Electricity Commission with several initiatives geared toward energy education and the adoption of renewable technologies. One notable project is the establishment of a Solar Energy Park, which involves the development of a new manufacturing industry based on advanced technology.

Target: Zero environmental footprint As a business, NGC has committed to using energy efficiently. From a legislative perspective, it must comply with Trinidad and Tobago’s Environmental Management Act and environmental regulations. NGC has an integrated Environment, Health and Safety Management System called the Environment, Health and Safety Improvement Process (EHSIP). The purpose of the EHSIP is to align the constellation of people, processes and technology to help maximise value in harmony with sustainability. Notable among NGC’s many supported initiatives is the execution of a reforestation programme which is aimed at replacing 350 hectares of forest lost to pipeline construction activity. NGC is marketing CNG as a cleaner, cheaper fuel for the country’s transportation sector through the work of its subsidiary, NGC CNG. The campaign involves the construction and refurbishment of service stations for CNG users, the offer of conversion incentives for private vehicle owners and public transport providers, provision of monetary incentives for public transportation providers to purchase new CNG vehicles, lobbying for government fleets to be converted, and a reduction in the government-endorsed fuel subsidy to encourage support for use of CNG.

Exploring new opportunities NGC continues to focus on securing its business returns in a challenging supply and demand environment and strengthening its national contribution to the country. This means diversifying into other parts of the energy value chain locally and making investments to capture value from global arena. NGC is well placed to take its business and experience beyond the country’s domestic borders. The Strategic Plan to 2020 has been developed to grow the organisation to match the new level of dynamism required of NGC to manoeuvre in a more complex, internationally competitive arena.

The Sustainable Business Review - Quarter 2 2018

NGC

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

The Sustainable Business Review - Quarter 2 2018

FIRESTEEL RESOURCES

FIRESTEEL RESOURCES: PRECIOUS METAL MINED RESPONSIBLY

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW In the world of mining, all too often we’re accustomed to seeing European and American management teams taking on assets in African or Latin American countries. It’s refreshing then to see this model turned on its head, with two African mining experts acquiring and operating European and American mines, bringing them to their potential. That is the story of Firesteel Resources, a junior mining company focused on the acquisition and development of mining properties with near term production potential. Firesteel Resources was established by two natives of Zimbabwe, who combined several years of mining development experience and are using it to their advantage in developed markets. One of these, Michael Hepworth, spoke to the Sustainable Business Review recently about the firm and its recent acquisition of a mine in Finland. Mr. Hepworth has been working in this line of business for over 12 years and as we discovered, has a keen eye for seeing the potential in a mine and generating value for shareholders and other stakeholders.

Introducing the Laiva Property With an unemployment rate of around 14%, the area around the Laiva mine in the Ostrobothnia district of Finland, has a rate which is about twice as high as the Finnish national average. Despite having a relatively large city in Oulu with some 250,000 people - foreign investment isn’t always easy to attract, as investors tend instead to look at Helsinki.

The Sustainable Business Review - Quarter 2 2018

FIRESTEEL RESOURCES

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW The Laiva Property, located near the city of Raahe in the Ostrobothnia district, was an obvious place to begin to attract the foreign investment needed to create the employment that the area so needs. With its previous owner sinking some $300 million into the mine, when Firesteel Resources came to look at it, Mr. Hepworth says that the asset was “remarkable.”

The statistics confirm this. For CAD$20 million, Firesteel Resources is acquiring a near ready mine, with an indicated 600,000 ounces .). “The leach tanks need some work,” Hepworth says. “Some of the conveyors need work, some of the pumps need to be replaced.” For these, the company intends to invest around $5 million to bring it to world class mining standards. A world class asset like Laiva will signal that Raahe is “open for business”. The mine has been closed since 2014, and its reopening

The Sustainable Business Review - Quarter 2 2018

will be a welcome boost. As Hepworth says: “There’s a lot of people that want to see this mine back in production so we’re gaining a lot of local support. And there are a lot of Finns on board. Of the top five people at the mine, we’ve only got two Canadians with the rest being Finns. And we would hire more and more Finns as we go.”

FIRESTEEL RESOURCES

Mr. Hepworth sees there being numerous benefits to the area: “In terms of the impact on the local economy, there are a number of areas. The first is taxes: we will generate money and pay tax on that as any good corporate citizen would. But then, each job that you create means they’re spending the money locally. And thirdly, there’s the aspect of consumables and

equipment required to make this work. I see a pretty significant injection into the economy every year - probably in the region of €20 million in direct costs, including salaries. This is a pretty significant investment to the area.” It would appear that Raahe, one of Finland’s unemployment blackspots has good times

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

ahead. As Mr. Hepworth concludes: “We will populate the mine over the next six months with people we will draw from the local area, so I see that as being our biggest focus at the moment. There’s a very well educated, well-rounded workforce so we’re very happy that we have good access to a that resource.”

Turning distressed assets into sustainable assets The thinking around distressed asset purchases too often focuses on the financial aspects. Many of the articles mention the fact that the seller entered bankruptcy or that the buyer is acquiring a high quality asset at a highly discounted price. While the financial element is a necessary component for any business to be sustainable, it’s just one component of a much larger picture. The Laiva Property, acquired by Firesteel Resources, is a good example of this. When it begins operations in August 2018, it will hire hundreds of locals in an area which badly needs jobs. It will turn what was essentially a wasted asset into a valuable one and breathe life into the area surrounding it. So when mining and finance journals talk of the shareholder value being generated here, it’s well worth remembering that there’s sustainable value being created elsewhere as well.

The Sustainable Business Review - Quarter 2 2018

FIRESTEEL RESOURCES

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

PUNTA CANA INTERNATIONAL AIRPORT

DNI METAL MINING BLACK GOLD TO FUEL CLEAN

The Sustainable Business Review - Quarter 2 2018

DNI METALS

LS:

TECHNOLOGIES

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

PUNTA CANA INTERNATIONAL AIRPORT

The European Commission has placed natural graphite on the critical mineral resource (â&#x20AC;&#x153;CRMâ&#x20AC;?) list because of its link to industry, modern technologies and the environment. Similarly, the US and the UK have elevated the status of natural graphite to supply critical, earning it the title of the new black gold. The magnitude of the expansion of the electric vehicle market in the next few years, has made natural graphite supply critical to the development of the automotive industry.

The Sustainable Business Review - Quarter 2 2018

DNI METALS DNI Metals Inc is a mining company that is based in Ontario, Canada. Founded in 1954, the company is listed on the Canadian Stock Exchange in the mining category. DNI owns two commercially permitted, saprolite-hosted graphite deposit in Madagascar. The company has obtained mining permits for 40 years which is renewable. The Company formed DNI Madagascar Sarl, a wholly owned subsidiary in Madagascar, to carry out business in that country.

opex and capex overheads. In addition, Madagascar has a modern and transparent Mining Code. The area where the DNI project is located contains excellent infrastructure and port facilities. The environmental and cost saving advantages of saprolite-hosted (clay) flake graphite mining compared to hard rock mining operations are significant. The actual mining and processing

The Vohitsara project is located 50 kms from the country’s main seaport. The deposit is located less than two kms from the paved national highway. DNI intends to develop the Vohitsara project, should the economic viability and technical feasibility be established. DNI’s second Madagascar graphite project was secured in July 2017 through a non-binding agreement (“LOI”) to buy a property in Madagascar called the Marafody property. Three holes were drilled by the previous owners, who have also completed over 600 m of trenching in 2016. DNI has two other assets which consists of a Polymetallic deposit in Alberta Canada and Gold Royalty in Utah.

Environmental Sustainability CEO of DNI, Dan Weir said that the company was attracted to Madagascar because of its deposits of large flake, high quality graphite which is hosted within soft 'free-dig' material called saprolite. Commercial extraction and processing is expected to be done with low

cost are low as the material does not have to be crushed and grinded and digging is minimal. Madagascar has a tropical weather profile and the graphite found there is largely preserved into coarse flakes. Graphite has chemically inert properties that do not alter during the weathering process. Mining in hard rock deposits found in Canada, is energy intensive, due for the need of crushing and grinding circuits. Graphite mining uses far less energy and extraction of the metal is done through a simple flotation process because of its lubricant

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

characteristic. DNI is investigating ways to further reduce their environmental impact and in this regard, they have started discussions with Caterpillar and other suppliers about using solar power to augment their clean energy usage.

Skilled and experienced Board of Directors The DNI team is highly skilled and they have a combined operational experience of mining graphite at hard rock graphite mines in Canada and Australia. Between them, they have built

The Sustainable Business Review - Quarter 2 2018

three processing plants and designed two, all of which were shut down in the 1990,'s due to increased Chinese competition. Their experience with the high production and capital expenditure costs associated with hard rock graphite mining inspired the DNI team to rather invest in low cost saprolite-hosted graphite deposits. The team is led by Dan Weir, the CEO and Executive Chairman, who has over 20 yearsâ&#x20AC;&#x2122; experience at some of the top financial firms in Canada. Weir is an expert at evaluating and financing mining deals and has managed large

DNI METALS

high tech electrical and energy management projects. Recently, the company appointed two new directors Brian Howlett and John Carter, to help with the development of the Vohitsara and Marafody Graphite Deposits. Carter has over 30 years of experience in the metals and mining industries. He specializes in the engineering design and manufacturing of mineral processing equipment for mining operations and operators such as North American graphite giant, Timcal Inc. Carter has built over 200 mineral processing

graphite processing plants. Howlett, a B COMM graduate, is currently the President and CEO of Dundee Sustainable Technologies Inc. and has over 25 years in senior management and financial roles.

Vohitsara Saprolitic Graphite Project The latest drilling results from the Vohitsara Saprolitic Graphite Project in Madagascar was very positive. The drill results comprise of sixteen holes and one trench from the Main Zone which complement the initial results of drilling from three holes released

plants around the world, including three Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW earlier this year. Graphitic zones are reported to be anywhere from 2 to 10s of metres true thickness.

101 resource study, and a NI 43-101 PEA (Preliminary Economic Assessment). Pursuant to the DA, this work should be completed by late 2017. Upon completion of the PEA, a 50/50 Joint Venture will be immediately formed between DNI & Cougar. Once operational, DNI plans an output of 20,000 to 25,000 metric tons per year.

MOU to Supply Large Flake Graphite to Korea DNI has recently signed a nonbinding MOU with ASX listed Peninsula Mines Limited, to form a cooperative joint venture to supply and potentially produce, up to 20,000 tonnes per year of large flake graphite concentrate to Korean end-users from 2018.

To date, 45 air core drill holes and five diamond core drills have been completed, with an average depth of the Saprolite being approximately 28 meters. DNI signed a Definitive Agreement with Australianbased company, Cougar Metals to develop the Vohitsara Graphite Project. Cougar commenced with a 3,000-meter drilling program, including a 1,000-meter trenching program, a NI 43-

The Sustainable Business Review - Quarter 2 2018

Dan Weir is excited about this venture and in a press release said: "DNI and PSM have strategically identified Korea as an area of growing demand for large flake graphite. We look forward to working with Peninsula's experienced and established team, and with their Korean partners, to access the large and growing Korean flake-graphite markets." Peninsula is an Australian listed, exploration/ development company focused on developing opportunities for mineral discovery and production in South Korea. Peninsula is well

DNI METALS established in South Korea, having worked in that country for over five years. Peninsula and Graphene Korea are working together to identify supply from projects that have the potential to produce flake-graphite concentrate that will meet the specifications for production of Graphene Korea's expandable graphite product, which are, specifically >180-micron flake graphite and a >95% concentrate grade of material that shows expandable properties.

Supplying wholesale graphite DNI has a wholesale graphite business, in which it buys and sells high quality natural crystalline flak graphite to North America. DNI Graphite Wholesale delivers graphite from Brazil which is the second largest flake graphite producer in the world with substantial low cost Saprolite (weathered rock) deposits. They have established a distribution network that currently sources graphite material from a private Brazilian company that has an annual production capacity of over 70,000 metric tons.

Clean technologies driving the demand for graphite According to Bloomberg, the global demand for graphite will soar to 852, 000 tons a year in 2030 from 13,000 tons in 2015. The clean technology revolution is fuelling the increase in demand for electricity storage batteries; electric

vehicles; new solar and wind technologies; lithium ion batteries and fuel cells for electricity production. The move from combustion to electric engines has gained momentum and experts forecast that by 2025, new sales of electric cars will exceed combustion engine vehicles. To illustrate why experts predict that the battery market will triple the demand for graphite in

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

the next few years, consider the 54kg of graphite in every batter Model S (85kWh).

The International Energy Agenc global threshold of 2 million ele million electric two wheelers we year. The quick uptake is fac policies that have been put in pla and cities who want to reap th in the fields of transport d pollution reduction, and ene security. To meet 2030 de sustainability goals countrie cars to be on the road as earl costs have decreased sign and the price of electric veh match the combustion vehic

The future of nat graphite

Synthetic graphite is less co graphite and was introduc nineties. It can be enginee through an expensive chem

The playing field have now new technologies like th upgrading, which allows upgraded to the same spe graphite. An additional ad natural graphite can be forms like spherical an which changes the grap it adaptable to specific in has been shown that th graphite consumes 67 synthetic graphite.

The Sustainable Business Review - Quarter 2 2018

e fact that there is ry anode of a Tesla

cy reports that the ectric cars and 200 ere on the road last cilitated by support ace by governments he multiple benefits decarbonisation, air ergy efficiency and ecarbonisation and es requires electric y 2020s. Car battery ificantly since 2009 hicles is expected to cle by 2018.

DNI METALS

Asked whether he expects that China will flood the graphite market with cheap stock again Weir replied that the this was highly unlikely. He pointed to the fact that China was consolidating its numerous graphite mines as they were mostly family run and used harsh chemicals which were not environmentally friendly. Their mines were old and required deep drilling. China has reduced graphite exports reserving same for internal consumption as they have the largest electric vehicle market. This shortage in supply and increased future demand, will benefit the balance sheet of graphite mining companies. DNI is certainly well placed to become a leading supplier due to their low-cost deposits.

tural

onductive than natural ced by China in the ered to specifications mical process.

w been levelled using hermal and chemical natural graphite to be ecifications as synthetic dvantage is the fact that processed into other nd expanded graphite phite properties, making ndustry requirements. It he production of natural 7% less energy that

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

NEWMONT: FROM HUMBLE BEGINNINGS TO WORLD LEADER IN GOLD

The Sustainable Business Review - Quarter 2 2018

NEWMONT

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

NEWMONT

celebrated 100 years of existence in 2016. Founded by William Boyce Thompson, it is now the second largest gold mining company in the world. That it achieved this after starting as just a holding company for oil, gold and other minerals, is quite remarkable. In 2016, its revenues were $6.71 billion and it employed over 30,000 people. Getting to that level from the initial idea of a holding company involved no small amount of canny investments, a strong desire to always look to new frontiers, and thankfully, a commitment to sustainability and CSR. At a time when investors are beginning to move back to gold once more, now is timely to take a closer look at Newmont.

BEGINNINGS

Newmontâ&#x20AC;&#x2122;s founder, Colonel William Boyce Thompson, was a dynamic individual who saw the potential of the mining industry from growing up in mining towns all over the United States. He gave the name Newmont to his new company based on experiences he had in two such states, New York and Montana. He also travelled the world, visiting mines everywhere to take pieces of knowledge back to the US. The first mine acquired by Newmont was the Empire State Mine in California in 1929. The company was able to take advantage of lower asset prices due to the great stock market crash of that year, showing the same shrewd eye it has shown several times since. In the

The Sustainable Business Review - Quarter 2 2018

NEWMONT

10 years that followed, it was able to acquire 9 more mines, located all over North America, and giving it a national reach. It quickly ventured outside of its home country, however. By the 1920s, it already had gas and oil assets in the North Sea which Thompson first visited on a trip to post-revolutionary Russia in the early years of that decade. In 2017, Newmont also has interest in Peru, Australia, New Zealand, Indonesia, Ghana and Mexico.

COMMITMENT TO

SUSTAINABILITY

Having operations in so many countries particularly in the mining industry - requires a company to keep a tight control on sustainability. As the company itself notes at the outset of its Social and Environmental Performance report, â&#x20AC;&#x153;mining is a long-term business with commitments and investments that can span decades. How can we manage social, environmental and political risks directly impacts our reputation and ability to create value.â&#x20AC;? Primary among the impacts which the company has to mitigate are those on the environment. Newmont has an environmental stewardship program, which addresses areas like water, energy and climate change, emissions and waste management, biodiversity, cyanide management and closure and reclamation taking in every part of the mining life cycle.

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW The company has begun a number of initiatives across its assets, be they in the United States or elsewhere, which work towards long-term sustainability in the environment. Below, we look at two such examples of the company striving towards sustainability and the impact that their efforts are already having through these efforts.

THE LONG CANYON MINE:

PROTECTING WATER FOR FUTURE GENERATIONS Newmont’s newest operation is a mine on the Utah-Nevada border, called the Long Canyon Mine. It straddles a water reservoir called ‘The Big Spring,’ an historically significant source of water for communities in the region.

The Sustainable Business Review - Quarter 2 2018

Newmont engaged both technical experts and local communities to work on partnerships in sharing this vital resource. Newmont, together with two local cities, Wendover and West Wendover, formed a Water Working Group with two major goals: safeguard the cities’ existing supply of water during the life of the mine and provide Newmont with an additional source of water for its activities at Long Canyon. A part of the solution involved Newmont constructing two potable water wells. Combined, the two new wells have a capacity which is approximately four times that of the Big Spring.

ACCOUNTING

FOR CLIMATE CHANGE Because Newmont operates in an industry which is so energy intensive, it pays particularly close attention to its own greenhouse gas (GHG) emissions. At every possible opportunity, it looks for more responsible uses of energy, improved energy efficiencies across the business and even switching from fuels to renewable sources of energy.

NEWMONT

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW The company’s global energy and climate strategy takes an operationally driven approach to managing threats and opportunities and preparing the business for climate change impacts. Among its objectives are to reduce its carbon footprint through renewable energy, energy efficiency strategies and carbon offsetting and collaborating internally and engaging externally on energy policy frameworks that support an effective transition to a low-carbon economy. This commitment to adapting to the changing climate was borne out with the establishment of a Global Energy and Climate Team (GECT). This team is effectively the R&D branch of the firm which is dedicated to the environment and climate change. It relays all of its data to the Carbon Disclosure Project, ensuring its findings and those of other firms in its area, can share ongoing findings and work towards a cleaner future for energy.

PARTNERS AND SUPPLIERS

Newmont is an international firm, which looks to local suppliers in each of the markets where it operates. While many of its partners and suppliers will be known throughout the world as giants of the mining industry, its commitment to local companies means that many of the names will be less well-known to international readers, but no less important to the ongoing success of Newmont.

The Sustainable Business Review - Quarter 2 2018

Examples of the firm’s commitment to local partners and suppliers is illustrated well by its operations in Ghana, where it currently has two mines. Newmont predominantly turns to local suppliers in Ghana, among them African Underground Mining Services (AUMS), WBHO Ghana Limted, GSS Ghana, Banlaw-Africa and KF´94 - a local firm established just twenty years ago and already making a name for itself in mining through collaboration with companies like Newmont.

NEWMONT

A COMPANY THRIVING IN THE

SHADOW OF ITS FOUNDER The founder of Newmont, William Boyce Thompson, was not only an entrepreneur with a global vision, he was also a philanthropist with a firm commitment to science. He dedicated millions of dollars of his personal wealth in the 1920s (at a time when the company was in its infancy) to science and academia in the United States.

This commitment to creating a legacy lives on his company to the present day. Its sustainability report might be among the largest of any company of its size, and its transparency in reporting its data on GHG emissions is admirable. Gold prices are famously volatile - moving up and down with the whims of global investors - but in Newmont, the industry has a stable stakeholder which retains a firm commitment to sustainability.

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

The Sustainable Business Review - Quarter 2 2018

GOLDQUEST

GOLDQUEST Diversifying the Dominican Republic Economy with Sustainable Mining

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

THE DOMINICAN REPUBLIC is renowned for its sandy beaches. As one of the most popular tourist destinations in the Caribbean, there was always some understandable reluctance to allow mining companies explore the potentially vast array of gold and copper resources generated by the countryâ&#x20AC;&#x2122;s volcanic terrain. The Dominican Republic, like many of its Caribbean neighbours, is home to a volcanic formation generated by the collision of the Atlantic and the Caribbean plates. The volcanic activity that characterized the formation of the islands also brought significant gold and copper to the surface. Thousands of years later, mining companies were queuing up to partake. Whatever mining company took on the mantle, it had to be respectful to the local environment - in turn so important to the countryâ&#x20AC;&#x2122;s tourism industry. Canadian firm GoldQuest was chosen among all the contenders, led by Bill Fisher, a well-known stalwart of the mining industry with over 30 years of experience across four continents. The Sustainable Business Review recently sat down with Mr. Fisher, who was able to tell us about GoldQuest and what it is achieving in the Dominican Republic. What emerged from the conversation was an exciting mining opportunity, which is having impressive knock on benefits in areas you typically might not associate, even from a sustainable mining project.

The Sustainable Business Review - Quarter 2 2018

GOLDQUEST

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

The Sustainable Business Review - Quarter 2 2018

GOLDQUEST

BACKGROUND Mr Fisher joined GoldQuest in 2010 at a time when it was exploring the cost of operating in the Dominican Republic. It was right before the company discovered drill holes in their concession areas. He says: “These turned out to be the best drill holes in Caribbean history, so it was a fantastic discovery: 700 feet of almost 10 grams of gold. And when we began drilling more, we found that there was around 3,000 ounces of gold and a little bit of copper as well.” In the 50 kilometre stretch where the company has been exploring, it hopes to develop a mining district, rather than an isolated mine here and there. The results are already there to see: Romero which it began drilling in 2012, Cochimbo which it found at the beginning of 2017 and has already begun drilling now, and the latest mine, Tario, which is still at the feasibility stage and will require work at several levels before being fully ready. As Mr. Fisher explains: “In terms of timeline, we’re probably looking at a year for an environmental permit and then two further years to build.” It’s a long process but one which the company is prepared for, as Mr. Fisher explains: “First, there’s an environmental feasibility study, then we do a financial feasibility study, which will be used to bring the banks on board. This is a $250 million project, so we’re bringing on some debt in addition to the equity.” He continues: “The exploration concessions have to be obtained from the Ministry of Mines. These can then be converted into exploration concessions once you’ve carried out your studies and shown the benefits. After this, we deal with the Ministry of the Environment and their job is to regulate both the physical and the social environment.”

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

CATERING FOR THE PHYSICAL AND SOCIAL ENVIRONMENTS Gaining buy-in from the Dominican Republic’s authorities was easier for Tario, now that GoldQuest has built a reputation for sustainability in its existing mines. As Mr. Fisher notes: “ It’s a sustainable mine. We won’t be using cyanide or taking any water from the river. Also, we won’t be disposing of any waste water into the river. Basically, it’s an underground mine so there are no open pits.” Involving local stakeholders is also important to the success of the project, he says: “There will be local meetings where everybody can have their say. Understandably, the main issue is water. We’re up in the mountains, which is basically the feeder for the plains and that’s where they grow rice, beans and all kinds of agricultural crops so it’s hugely important to reassure these stakeholders that we’re not going to be interfering with the water supply.” As part of the company’s commitment to being resourceful with water, they’re also providing education and resources on more water-efficient crops. “We’re providing an aid program for water and issuing seeds to grow beans instead of rice, so the whole process becomes more sustainable. We’re also aware of the deforestation going on in the Dominican Republic so we’re setting up a carbon credit to offset this process. We’ll go to the Canadian and American corporations with the carbon credits generated by the forestland and sell it to them on the farmers’ behalf so that they’ve got this revenue stream straight away.”

The Sustainable Business Review - Quarter 2 2018

GOLDQUEST

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

In term 800 jo thereâ&#x20AC;&#x2122; peopl foreig

Mr Fis now, What contra emplo

This i create per da creati roads

Like a Princi that o the lo

He sa peopl and h the ch

The Sustainable Business Review - Quarter 2 2018

GOLDQUEST

ms of generating employment, practically all of the benefits will be felt locally. There are about obs in the construction phase and 350 permanent jobs thereafter. In the firm’s existing mines, ’s one Australian and literally everyone else is Dominican out of a workforce of around 250 le. GoldQuest is also committed to providing training to the locals rather than bringing in gn expertise.

sher says of this initiative: “As there haven’t been any underground mines in Dominica until we’ll have to bring in some underground expertise but we can get that in Peru and Mexico. we’ll probably do is send some of our Dominican workforce over there to work with the actors so that they can get some experience during this next phase.” The knock on benefit in oyment is about 3,500 jobs created in the area, a ratio of 10-1 to direct employment.

is notable in itself, but even more so when one considers the high-value employment being ed at the mine. High skilled workers at the mine earn around $25 per hour, compared to $15 ay for local agricultural workers. The knock-on benefits for the local community will be huge ing a raft of opportunities that never previously existed. And this doesn’t even account for the s, power lines and other infrastructure being developed.

CSR INITIATIVES

all high profile mining companies these days, GoldQuest strictly adheres to the Equator iples, which require that all mining works ensure that infrastructure is on a par or better with of Canada or the UK. As Mr. Fisher explains, this meant first class roads and infrastructure for ocal communities where the firm operates in the Dominican Republic:

ays: “We’re in this very remote area about 3,000 feet up. There, all of the village of around 70 le are employed with us. We’ve built the church and rebuilt the school. We’ve also built a clinic have a 24-hour nursing facility. We also pay for the schoolteacher, who we transport in to teach hildren in the village.”

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

GOLDQUEST: ROBUST AND SUSTAINABLE With a population of slightly over 10 million people, the Dominican Republic stands to benefit hugely from the mining boom occurring in its territory. The fact that it has chosen a firm with a commitment to sustainability like GoldQuest ensures that this boom can take place with little or no downstream effects on the countryâ&#x20AC;&#x2122;s famous tropical landscape and its tourism industry. The mining concessions obtained by GoldQuest in the country span for more than 75 years, in which time, the school developed by the firm will have passed through several generations of students, all of whom will contribute to society in the Dominican Republic in their own ways. A country with a poor colonial past looks to have replaced it with a bright and prosperous future.

The Sustainable Business Review - Quarter 2 2018

GOLDQUEST

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

The Sustainable Business Review - Quarter 2 2018

BRITISH AMERICAN TOBACCO SOUTH AFRICA

British American Tobacco South Africa: A consumer driven brand

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW Ever since the first commercial cigarettes was made in 1865 in the US, many iconic moments in cinema were defined by the way the actors used the cigarette as a prop. From Clint Eastwood in the Good, the Bad and the Ugly to Humprey Bogart in Casablanca. In the movies, a cigarette was never just a cigarette. It was used as a prop representing the glamour and chic of the era. Bad guys smoked heavily in the movies. The good guys and gals held the cigarette in a confident manner, puffing elegantly and spitting out iconic lines that defined the period. The fortunes of the tobacco industry may have changed over the years, but British American Tobacco (BAT) South Africa prides

itself on staying ahead of consumer trends. Soraya Benchikh, CEO of BAT South Africa says that the consumers drive everything that they do at BAT. â&#x20AC;&#x153;We invest effort and care in understanding their preferences. We believe that adult consumers make informed choices about smoking and about their brand preferences. Nationally, we offer a diversified portfolio with a brand for every tasteâ&#x20AC;? she said.

The Sustainable Business Review - Quarter 2 2018

BRITISH AMERICAN TOBACCO SOUTH AFRICA

Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

THE STORY BEHIND THE ICONIC CIGARETTE BRANDS The global merger of Rothmans International with British American Tobacco in 1999 created the business as it is known today – and led to the creation of British American Tobacco South Africa. In 1904, United Tobacco Company was formed in the US. The Heidelberg Factory was established in South Africa in 1976, as a social upliftment project in an area with low economic growth. South Africa is also home to the eighth largest British American Tobacco factory globally. The factory is the eighth largest BAT factory in the world. They are the largest employer in the Heidelberg area, and the factory produces over 27 billion cigarettes a year for local and export markets, as well as processed leaf tobacco for export purposes. BAT South Africa has a portfolio of more than 20 brands and are home to most of the country’s top selling brands. The market consists of over 8 million smokers. Dunhill- Launched in 1907, Dunhill cigarettes are sold in 120 countries. It is a strong Premium Brand which offers a diverse range of Premium and Super Premium cigarettes. Peter Stuyvesant -First launched in South Africa in 1954 and then internationally in 1957, Peter Stuyvesant is sold in around 30 countries around the world.

The Sustainable Business Review - Quarter 2 2018

Kent- Kent was launched in the South African market in November 2006. Kent is a modern freestanding Premium Brand, consistently perceived as delivering ‘the modern way to smoke’. Pall Mall- First introduced in 1899, Pall Mall has undergone many changes and is now their leading global Value-for-Money Brand.

BRITISH AMERICAN TOBACCO SOUTH AFRICA Benson & Hedges- Benson & Hedges or B&H was re-launched in South Africa during 2014, following strong consumer demand.

SETTING THE BENCHMARK FOR COMPLIANT MARKETING PRINCIPLES IN THE TOBACCO INDUSTRY A criticism often directed to the tobacco industry, is that they direct their marketing to the youth. BAT South Africa has made a serious commitment to never aim their marketing at anyone younger than 18 years. In addition, they have committed to never persuading adults to begin or continue smoking. They believe that consumers are entitled to have relevant information about the tobacco products available to them. Their marketing practices are compliant with local legislation and regulations in South Africa, and are also aligned with the British American Tobacco Groupâ&#x20AC;&#x2122;s global International Marketing Principles. These principles have set a benchmark for the whole tobacco industry.

STIMULATING ECONOMIC ACTIVITY THROUGH THE BAT SOUTH AFRICA VALUE BAT South Africa relies on over 179,000 outlets across the country to sell its products directly to consumers. They have a significant impact on employment in the sector, accounting for 19,145 jobs through their retail partners. The majority of these businesses are small,

independent, black-owned, and derive substantial income from of the retail sale of tobacco products. They directly employ more than 2,100 people creating much needed economic upliftment in the Heidelberg area. They purchased goods and services worth over R6 billion from local suppliers, creating more jobs downstream. A study has shown that BAT South Africa buys over 90% of all tobacco leaf grown in South Africa. The impact on the agriculture sector amounts to 1,717 full-time equivalent tobacco farming jobs. Transforming the tobacco leaf growing sector BAT South Africa supports several projects that focus on providing support to emerging black farmers to achieve economic success. The Sun- Cured Virginia Leaf Project was established in 2011 to train previously Quarter 2 2018 - The Sustainable Business Review

THE SUSTAINABLE BUSINESS REVIEW

disadvantaged individuals to grow sun-cured Virginia tobacco and other sustainable crops commercially. They are committed to sustainable agriculture and the transformation of the tobacco leaf growing sector. In partnership with its local leaf suppliers, the project has helped establish 87 farmers, who between them cultivate 94 hectares of tobacco crop and produce more than 150 tons of leaf each year. In addition, these farmers produce almost 100 hectares of mixed crop. BAT South Africa acts as an incubation partner, providing emerging black farmers with development funding to kick-start farming activities, while Limpopo Tobacco Processors (the companyâ&#x20AC;&#x2122;s main local leaf supplier) provides crop loans and then purchases and processes all the leaf grown. This is supported by Universal Leaf SA, which provides technical support. In addition, BAT South Africa has contracted Mobile Agri Skills Development and Training (MASDT) to provide training, incubation, mentoring and administrative services to support tobacco growing, as well as the cultivation of other crops and livestock management.

100

The Sustainable Business Review - Quarter 2 2018

BRITISH AMERICAN TOBACCO SOUTH AFRICA

Quarter 2 2018 - The Sustainable Business Review

101

THE SUSTAINABLE BUSINESS REVIEW

102

The Sustainable Business Review - Quarter 2 2018

BRITISH AMERICAN TOBACCO SOUTH AFRICA

Over the last decade, BAT South Africa has invested over R280 million in programmes centred on three themes â&#x20AC;&#x201C; empowerment, civic life and sustainable agriculture. Since 2015, these programmes have been delivered through a charitable foundation called the Signature Trust.

BROAD BASED BLACK ECONOMIC EMPOWERMENT The ownership of BAT South Africa has been structured to meet the countryâ&#x20AC;&#x2122;s transformation targets and 39.88% of the economic interests of BAT South Africa are owned by black people, with 20.03% in the hands of black women, exceeding the targets set. BAT uses its procurement spend to empower B-BBEE recognised suppliers and they benefited from R2.59 billion (42.7%) of its total procurement spending in 2015. In addition, 43.22% of all suppliers were majority black-owned. R161 million was spent on skills development and learning programmes for black people which benefited 782 black people who participated in workplace learning programmes like learnerships, apprenticeships and internships at the company. Aside from providing bursaries to needy learners to further their tertiary education, BAT South Africa have also partnered with Sedibeng College which is located near their Heidelberg facility. The college learners benefit from placement opportunities, which allow them to gain valuable work experience.

Quarter 2 2018 - The Sustainable Business Review

103

THE SUSTAINABLE BUSINESS REVIEW

WORKING ACTIVELY TO REDUCE THEIR IMPACT ON THE ENVIRONMENT Most of the products that go into cigarettes are sourced from the natural environment. The sustainability of these resources is key for the company as well as looking at measures to reduce the impact of their manufacturing processes. Benchikh said that the company recognised the importance of applying sound environmental practises throughout their operations. Their Heidelberg facility contributes the most to their environmental footprint and they have invested in several initiatives to reduce their energy and water consumption.

GREAT PEOPLE AND AN ENGAGING WORK CULTURE Employees say that they are ‘lekker’ company to work for. The word is colloquial for all things nice and pleasurable. Their reputation as a Top Employer is evidence that they are an employer of choice and can attract the best talent both locally and internationally. Benchikh believes that BAT South Africa offers an inspiring, challenging and diverse place to work, with great people and an engaging culture which is key to delivering their strategy. There is a constant focus on driving high performance and at the same time creating and engaging culture where employees and work teams can be successful.

104

The Sustainable Business Review - Quarter 2 2018

Through various development programmes they focus on developing the next generation of leaders and encourage and reward entrepreneurial behaviour. In the spirit of the Rainbow Nation, they value the diversity of their workforce and provide a safe place to work, protecting their employees’ well-being and valuing their views and opinions.

BRITISH AMERICAN TOBACCO SOUTH AFRICA

Quarter 2 2018 - The Sustainable Business Review

105

THE SUSTAINABLE BUSINESS REVIEW

106

The Sustainable Business Review - Quarter 2 2018

BRENNER BASE TUNNEL

We recently caught up with the company CEO, Dr. Toby Bradbury, to discuss the company and its operations in Tanzania, why it considers itself a pioneer in holistic mining practices, and some of the company’s plans for the future. Dr. Bradbury has been CEO since 2015, and his background makes him quite an interesting candidate for a role in this industry - it turns out that he is a keen advocate of environmental principles, both at Shanta Gold and away from work. “I personally designed and built an eco-house for my family back in 2002, just a few hundred kilometres north of Sydney in Australia. That house was completely self-sufficient in terms of water, power and waste. We put our service power back into the grid and the house made a profit and paid for all of our rates and other services. That gives you a sense of where I’m coming from.” It’s a philosophy that Bradbury is keen to bring to Shanta Gold - as much as responsibilities to shareholders will allow it.

Operations

Quarter 2 2018 - The Sustainable Business Review

107

THE SUSTAINABLE BUSINESS REVIEW

Shanta gold produced 88,000 ounces of gold in 2016, 82,000 in 2015 and 84,000 in 2014. It operates an open pit mine,, but is currently transitioning into an underground mine, which will demand progressively more power, the further the company reaches underground. As Dr. Bradbury says: “In 2015, when we made the decision to go underground, we knew we were going to have to upgrade the power demand. We made the decision to change over to heavy fuel oil (HFO) that year.” However, conscious of using extra energy and the environmental responsibility of the firm, they turned to a highly unusual - if inspired - choice of energy for a mine: solar power. “In parallel with all this, we ran a pilot project for a solar plant of 63kw - pretty significant. It was working very successfully and helped us reduce our fuel consumption and carbon footprint.” “With this new solar power plant coming in, our new partners Redavia gave us a proposal. They helped us design the optimum style of a plant which would be worth putting in from a solar perspective. We can’t completely rely on solar, because even in daytime, the clouds come over,

108

The Sustainable Business Review - Quarter 2 2018

SHANTA GOLD

Quarter 2 2018 - The Sustainable Business Review

109

THE SUSTAINABLE BUSINESS REVIEW

110

The Sustainable Business Review - Quarter 2 2018

SHANTA GOLD

Quarter 2 2018 - The Sustainable Business Review

111

THE SUSTAINABLE BUSINESS REVIEW

112

The Sustainable Business Review - Quarter 2 2018

SHANTA GOLD

‘The second most important industry’

Dr. Bradbury has an infectious way of speaking about mining and it’s hard not to be enthused about having such a proponent of sustainability working in the industry. He tells us: “Mining is the second most important industry to man after agriculture. Once we’ve got ourselves fed, we have to find some shelter and keep a roof over our heads. So much of our everyday lives, we take for granted, but it all comes from mining. If you go back in time, mining has defined ages in our history - the stone age, the bronze age and the iron age.” Shanta Gold’s solar power project continues to receive praise all over the globe and hopefully opens the door not just to further solar power projects but maybe even a new way of looking at providing power more sustainably to mining projects. In the meantime, Tanzania, a country whose FDI hasn’t always been beneficial, has truly struck gold. Now all the mining industry needs is more CEOs with the same genuine passion for sustainability that Dr. Toby Bradbury of Shanta Gold has.

Quarter 2 2018 - The Sustainable Business Review

113

THE SUSTAINABLE BUSINESS REVIEW

FLAMINGO

HORTICULTUR

SUSTAINABLE HORTICULTURE IN A

114

The Sustainable Business Review - Quarter 1 2018

FLAMINGO

RE:

AFRICA

Quarter 1 2018 - The Sustainable Business Review

115

THE SUSTAINABLE BUSINESS REVIEW

continent of Africa, with its rich diversity of climates and terrains, has the potential to become a major global food basket in the years ahead. The advent of new agricultural systems, increasing investment and improving yields means that it can look forward to much fuller harvests in the future than was ever possible in years gone by. Leading the charge in this endeavour is Kenya’s Flamingo Horticulture, a vertically integrated agribusiness, which provides its customers with the highest quality output and best practice in the food supply chain. In total, it produces and supplies the EU with 26 million kg of vegetables per annum from its operations in Kenya and South Africa - making it one of the trade bloc’s largest food suppliers.

In addition to food produce and herbs, the company is active in the growing, processing, marketing and distribution of sustainably produced roses and other cut flowers. These flowers are supplied to most of the UK’s leading retailers as well as international customers across the globe, continuing to expand to meet its customers’ demand. What emerges then is the perfect case study for how a small regional player in Kenya in East Africa can become a world leader with no compromises made on sustainability.

116

The Sustainable Business Review - Quarter 2 2018

FLAMINGO

Quarter 2 2018 - The Sustainable Business Review

117

THE SUSTAINABLE BUSINESS REVIEW

EXTENSIV THIRD PA

Having been f Horticulture can However, the sc network across firms which have the quality of ou

For Flamingo in its field was acquisitions. Its own large-scale Africa and longnetwork of vert out growers.

This scale allo produce. For ex producer and e stems per annu companyâ&#x20AC;&#x2122;s own the UK and con

Those farms ar Lake Naivasha) Combined, the growing space. Kenya, whose offers ideal grow with consistent

At a time whe the west, Flami suppliers of fres vegetables. It so for the UK retail are grown on Fl

118

The Sustainable Business Review - Quarter 2 2018

FLAMINGO

VE OPERATIONS AND ARTY NETWORK

SUSTAINABLE, FROM THE FIELD TO THE DINNER TABLE

founded in Kenya in 1982, Flamingo n still claim to be a relatively young company. cale of its own operations and third party the globe would be the admiration of many e been much older, providing testament to utput of the firm since its foundation.

As the company itself notes, when it began operations almost 40 years ago, it made a commitment to sustainability and as the firm expanded, and ultimately became global, its sustainable practices also expanded. Its customers arenâ&#x20AC;&#x2122;t just looking for high-quality produce anymore - now it has to be sustainably produced, sourced and distributed. 538

Horticulture, becoming a world leader s a combination of organic growth and s supply chain is balanced between its e professional farms in Kenya and South -term sourcing partnerships with a global ically integrated third party suppliers and

ows it to offer year-round high-quality ample, it is the worldâ&#x20AC;&#x2122;s largest added-value exporter of flowers, delivering over 780m um. Over a third of these are grown on the n farms in Africa before being distributed to ntinental Europe.

As a large agricultural business - and an integral part of a wider network of businesses - Flamingo Horticulture understands that it is intimately linked to the natural environment and has a keen grasp of the volatility, uncertainty, complex and ambiguous factors (VUCA) that affect its operations and those of its partners. It top line sustainability commitments are guided by its business pillars of freedom, integrity, responsibility, mutuality, innovation and quality. These values reflect on its initiatives in areas into several different categories to which it pays special attention: water management, energy conservation, environmental projects, worker welfare, community projects and CSR.

re located in Kenya (near Mt. Kenya and and South Africa (close to Johannesburg). ey provide close to 2,000 hectares of . Around 90% of this land is located in high-altitude location near the equator wing conditions for flowers and vegetables temperatures and regular rainfall.

n obesity is reaching alarming levels in ingo Produce is one of the largest global sh premium and freshly prepared seasonal ources and processes around 26 million kg l market alone, around a quarter of which lamingo-owned farms in Africa.

Quarter 2 2018 - The Sustainable Business Review

119

THE SUSTAINABLE BUSINESS REVIEW

Because Your Farm Never Stops You have enough things to think about. Losing power doesnâ&#x20AC;&#x2122;t need to be one of them. Since 1949 Blackwood Hodge has been one of the leading generator specialists in Kenya and Uganda. We can help you choose a generator set which will give you years of service, see that itâ&#x20AC;&#x2122;s installed and ensure you have all the service and support you need. Now you can get on with the things which are important to you. To find out more visit: www.blackwoodhodge.com or contact: james@blackwoodhodge.com M: +254 724 298 609

BWH Quarter page ad 2018.indd 1

120

The Sustainable Business Review - Quarter 2 2018

20/02/2018 09:23

FLAMINGO The range of sustainable measures taken by Flamingo Horticulture is beyond the scope of this article such is its breadth. However, highlights include the sustainable capture, cleaning, storage and recycling of its water owning the largest water storage capacity in Kenya - as well as pioneering the use of wetland schemes in Kenya which has benefitted local farmers.

A GLOBAL NETWORK OF PARTNERS Flamingo Horticultureâ&#x20AC;&#x2122;s most prominent suppliers reflect the importance of Kenya to its overall operations. Nearly all of its principal suppliers are local Kenyan firms which

Its environmental projects include reforestation in Kenya; in worker welfare, it is a leader in gender equality, training and development schemes for staff and health awareness training (in areas such as HIV and malaria, for example); finally, in the community, it contributes to projects involving hospitals, clinics, schools and those which promote fair trade. Flamingo can depend on 365 days a year to fulfill the standards it strives for â&#x20AC;&#x201C; both in terms of operations and sustainability. These include Greenlife Kenya, which works with Flamingo on crop protection; Blackwood Hodge (Kenya), which provides the generators for much of the Flamingo operations; Elgon Kenya, which provides the technology required to scale up; and the East African Packing Industry and Packing Industries Limited, which have the considerable logistical task of ensuring all the produce at its source in Kenya, before being sent all over the globe. In addition, Flamingo complements its own supply from Kenya and South Africa with produce from its partners around the world, guaranteeing year-round supply of the highest quality to its customers. All of its partners

Quarter 2 2018 - The Sustainable Business Review

121

THE SUSTAINABLE BUSINESS REVIEW

operate under the firm’s Preferred Partner Programme and continue to play an important part in the Flamingo Horticulture success story. A country-by-country basis shows Flamingo’s reach. Its partnerships with other growers and distributors give it access to the UK, Poland, Tanzania, Peru, Japan, Australia and other countries. Among these partners are global leaders of the horticulture industry, including AAA Growers, Beta Complejo Agroindustrial, Cobrey, and Love My Chillies.

CATERING TO AN URBANIZED WORLD As the world becomes ever more urbanized, and people become further removed from rural areas, the more we depend on companies to guarantee that the food we consume is both high quality and sustainable. Thanks to companies like Flamingo Horticulture, we can rest assured that these concerns are catered for.

122

The Sustainable Business Review - Quarter 2 2018

The firm has made a number of investments over the last couple of years which will be integrated and will allow it to continue its story. These include a recent investment of $2.4m into Dudutech, a biological pesticide manufacturer in Kenya and the acquisition of the Butters Group in the UK late last year, giving it a bigger footprint in that country’s flower market. With companies like Flamingo Horticulture on its doorstep, Africa can look forward to a future of sustainable food production. A new generation of farmers is emerging which is trained in the ways of one of the world’s leaders in sustainable agriculture, and that can only be a good thing as Africa looks to build on its huge progress over the past two decades.

FLAMINGO

Quarter 2 2018 - The Sustainable Business Review

123

THE SUSTAINABLE BUSINESS REVIEW

124

The Sustainable Business Review - Quarter 1 2018