the african business journal jan 2012 - john pinching
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The African Business Journal (TABJ) is a digital publication with an intoxicating cocktail of news articles, lifestyle features and company profilesTRANSCRIPT
Building up
South AfricA’SSouth AfricA’S best employersbest employers
CRF:
The
AfricAn Business Journal
BusinessReducing carbon footprints
sportAfrica’s Olympic Hopefuls
Company foCusRoymec Technologies
January 2012 Volume 3 Issue 1 www.tabj.co.za
IN THIS ISSUE ►
2 SECTION � Title
maerskline.com Proudly serving AfricaHow do we serve Africa? By delivering on time.
If you look at what Maersk Line has achieved in schedule reliability over the past years, you could almost say we’ve invented modern on-time delivery – in West Africa and around the world.
Why does on-time delivery matter so much? Because it enables you to plan with greater certainty and to serve your customers more reliably. Now that is something everyone can benefit from.
At Maersk Line, nothing would please us more than to help take your business to the next level of consistent on-time delivery.
West Africa services – New & improved!• 22 custom-built ships, the largest in West Africa• The market’s best network• Unmatched schedule reliability• Personalised service and strong local presence
R1124_Africa_African_Business_Journal_letter_AD3.indd 1 12-07-2011 21:14:20
eDiTOr’s note
HellO fOlks AnD, depending on when you’re read-
ing this, Merry Christmas/Happy New Year/Hope
you’re enjoying being back at work/What are you
wearing?!,
This mighty fine, slightly festive and log-fire-
heated edition of TABJ starts—as the cover’s
industrious ‘wall’ so brilliantly suggests—with an
exclusive interview, and the person in the hot seat
is Corporate Research Foundation (CRF) visionary
Sam Crous.
We discuss how the organisation is help-
ing employers and employees throughout South
Africa to achieve their full potential. She also talks
candidly about how exciting it is to work in such a
vibrant economy.
There are plenty of other beautifully-wrapped
festive treats underneath the tinsel-draped boughs
of the TABJ tree, including another brutally honest
sports report from our man in Africa and an update
on the unstable political situation in Cairo.
Also, as we sprint towards the start of the
greatly-anticipated London 2012 Olympics, TABJ
attempts to keep pace with Africa’s gold medal
contenders.
In addition, we take a look at how Food &
Trees for Africa (FTFA) is combining with Airports
Company South Africa (ACSA) in an effort to gal-
vanise carbon neutrality initiatives.
As indicated in the CRF interview, the South
African business landscape is buoyant, versatile
and thoroughly looking forward to a fruitful New
Year. Our compendium of company features
certainly reflects this optimism, with contribu-
tions from the construction, mining, transport and
investments industries.
It only remains for us to venture into the
hitherto unchartered territory of 2012. Who knows
what the constantly exciting and unpredictable
African economic landscape has in store for us
next? Whatever happens, TABJ will continue to
proudly bring you the most comprehensive news,
features and company profiles in the business.
As always, great talking to you,
John
maerskline.com Proudly serving AfricaHow do we serve Africa? By delivering on time.
If you look at what Maersk Line has achieved in schedule reliability over the past years, you could almost say we’ve invented modern on-time delivery – in West Africa and around the world.
Why does on-time delivery matter so much? Because it enables you to plan with greater certainty and to serve your customers more reliably. Now that is something everyone can benefit from.
At Maersk Line, nothing would please us more than to help take your business to the next level of consistent on-time delivery.
West Africa services – New & improved!• 22 custom-built ships, the largest in West Africa• The market’s best network• Unmatched schedule reliability• Personalised service and strong local presence
R1124_Africa_African_Business_Journal_letter_AD3.indd 1 12-07-2011 21:14:20
© 2010 KPMG Africa Limited, a Cayman Islands company and and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in South Africa. mc6332
An extraordinary firm, with extraordinary people, on an extraordinary continent.Africa is complex. It is multi-cultural, multi-lingual, geographically vast and steeped in political history. At the same time, the modern business world is increasingly less interested in Africa’s past and primarily interested in working in a unified, seamless context.
KPMG’s organisational structure allows us to manage our operations in a way that makes the most sense in terms of the efficiency and effectiveness of our operations. Our business model, common tools and methodologies, as well as shared values allow us to work with our clients seamlessly across borders.
kpmg.com
John Pinching | Editor | [email protected]
Ben Watts | Staff Writer | [email protected]
Laura Hedges | Editorial Assistant | [email protected]
Vladimir Lukic | Creative Director | [email protected]
Chris Moore | Sr. Advertising Designer | [email protected]
Margaret Oldham | Sr. Graphic Designer | [email protected]
Wincy Law | Sr. Graphic Designer | [email protected]
Tanya George | Advertising Designer | [email protected]
Marc Mauricio | IT/Production Support | [email protected]
Constantin Turtulea | Head of Research | [email protected]
Natalie Edney | Head of Sales | [email protected]
Khayyam Darr | Research Director | [email protected]
Andrew Miskin | Research Director | [email protected]
Hugh Braithwaite | Research Director | [email protected]
Dee Nazer | Research Director | [email protected]
Guy D’Angelo | Research Director | [email protected]
Thomas Eros | Research Director | [email protected]
Michael Alexander-Jones | President | [email protected]
Linda Neal | Chief Executive Officer | [email protected]
Naveed Yusuf | Chief Information Officer | [email protected]
Gemma Parkins | Executive Assistant | [email protected]
Heather MacPherson | General Accountant | [email protected]
Simon Curran | Vice-President/Publisher | [email protected]
South africa office
23 Wellington road
Parktown, 2193
Johannesburg
uK office
2 Sheen road
richmond
Surrey uK TW9 1ae
GEoRGE MEDIA InC.
TABJ Team
Table of cOnTenTs January 2012 | VoluMe 3 | ISSue 1
036Business
sPOrTs
POliTics
TrAnsPOrT
cOnsTrucTiOn
cOver feATure CrF: Building up South africa’s best employers 010
Muse news coming out of africa 018
flying THe green flAg Innovative partnerships plant trees of life as transport companies target carbon neutralising 028
rOunD uP frOM Our sA cOrresPOnDenT: Keep your enemies close 036
africa’s OlyMPic HOPefuls 042
Quick shot: cHAOs AnD cOnfusiOn in Cairo 050
DuBigeOn BODy AnD cOAcH on the buses 056
MAssyn vervOer logical logistics 064
lBc lencO lenco-operation 072
010050
Table of cOnTenTs January 2012 | VoluMe 3 | ISSue 1
Mining
MisTy Blue invesTMenTs urban Durban 080
Iron Maiden: Tonkolili mine opens for business, as AfricAn MinerAls lTD. make a big impression on the mining landscape 086
The steal deel: sAHArA Mining introduces new mill in Mali 104
eire cOnTrAcTOrs The business of blasting 114
lenDOr & BurTOn The Zambian brand 124
TsHiPi MAngAnese Mining Scene steeler 134
DigBy Wells Creating the right environment 144
Mine like a star: rOyMec TecHnOlOgies 150
invesTMenTs
080
134
Building up
South AfricA’S best employersbest employers
CRF:South AfricA’S
In great companyThe CRF Institute has been identifying and rewarding brilliance in the workplace for 20 years. TABJ’s John Pinching meets CRF Manager Sam Crous to talk about why South Africa has become such an exhilarating place to make a living
12 COVER FEATURE � CrF: Building up South africa’s best employers
HOW DiD crf cOMe ABOuT?
CRF is an international organisation and our head
office is based in the Netherlands. We’re operation-
al in 15 countries—South Africa, Australia, China,
South America and throughout Europe. We’ve been
around for about 20 years and in South Africa for
11. The company started out publishing profiles
on great places to work and, over the years, we’ve
refined that process into a far more scientific and
objective approach, which recognises employer
excellence. Each year we now release an index for
every country; listing great places to work, rating
companies and identifying best employers.
By virTue Of Being lisTeD AnD APPrOveD By yOu
guys, DO THe recOgniseD cOMPAnies geT ADDeD
kuDOs?
Yes, absolutely, because when we are really com-
prehensive in how we conduct our research. We
have a standardised approach in all countries
involving 80 questions about HR systems, perfor-
mance, rewards, recognition, management and
leadership. Also different countries will have a por-
tion of what is relevant to its local market. Essen-
tially, what we’re looking at is the framework that’s
in place to manage talent and align the business.
We want to see whether it is sustainable, from a
people point of view, for three to five years.
13JANUARY 2012 � The African Business Journal
“each individual company is able to see quite definitively where they meet current market trends in terms of policies and practices; whether they’re below or above the national average”
14 COVER FEATURE � CrF: Building up South africa’s best employers
HOW DOes iT HelP Businesses TO iMPrOve Once
yOu’ve cArrieD OuT THAT AnAlysis?
We put a benchmark on reports for organisations
that have gone through the research process.
For each question they are asked, the answers
are graphically represented, and benchmarked
against the certified average. As a result each in-
dividual company is able to see quite definitively
where they meet current market trends in terms
of policies and practices; whether they’re below,
or above the national average.
iT sOunDs like THey cAn use THOse resulTs
TO fOrM AnOTHer sTrATegy in fOr THe
fOrTHcOMing yeAr Or lOng TerM fuTure?
That’s exactly what we’re trying to do. Our busi-
ness clients use our benchmarking data to
establish its HR strategy, it reassures them year
on year regarding what their competitors are do-
ing relative to them. It’s also an attention-focus
for talent in the marketplace who are deciding
who to work for. When there are hundreds of
companies to choose from, it gives people a
starting point.
Tell Me ABOuT THe inDusTries yOu DeAl WiTH?
At the moment there’s no limit to the industries
that we can analyse, but the industries them-
selves almost self-select, for example, getting
“The more traditional industries are difficult to change, because some almost have the opinion that they don’t need this type of initiative, but as we move into an increasingly evolved world of work, they’re going to need it more and more”
15JANUARY 2012 � The African Business Journal
mining involved is quite a challenge because
it’s a heavily politicised and unionised industry,
particularly in South Africa. We do have some
mines—like Anglo—which is linked to the South
African government. The more traditional indus-
tries are difficult to change, because some al-
most have the opinion that they don’t need this
type of initiative, but as we move into an increas-
ingly evolved world of work, they’re going to need
it more and more.
HOW DO yOu feel THAT THe Business lAnDscAPe
in sOuTH AfricA HAs cHAngeD?
I see that companies operating in ICT space
have better propositions than any other organ-
isations, especially in South Africa. Our top
three best employers, for example, are Acen-
ture, SAP and Microsoft. Historically, they’re
often more flexible, more nimble and they know
technology—it’s something they’re familiar with
and it definitely enables an entire firm to func-
tion in a different way. Technology has dramati-
cally improved the way HR functions and it has
reduced the administrative load on HR over a
number of years, transforming it from a largely
administrative function, into a more strategic
business partner. The HR side of the business is
adopting a much more modern model, particu-
larly in South Africa.
16 COVER FEATURE � CrF: Building up South africa’s best employers
“I think South africa, as a case study for the new world of work is quite an interesting one because so much is going on—there’s an entrepreneurial spirit and the country is geared towards economic growth”
17JANUARY 2012 � The African Business Journal
in sOuTH AfricA, All sOrTs Of DifferenT,
MulTiculTurAl AnD inTeresTing Businesses
Are crOPPing uP everyWHere; iT’s cleArly An
exciTing PlAce TO Be WOrking
I think South Africa, as a case study for the
new world of work is quite an interesting one
because so much is going on and there’s an
entrepreneurial spirit and the country is geared
towards economic growth so, while we have
these big powerhouses organisations driving the
economy, more and more smaller businesses
are cropping up, creating jobs in the process. Af-
ter many years in isolation, we have now had 15
years of freedom to explore, travel and pursue
our dreams. This has given us a great platform
to be a global force in the job market. It’s in-
spired a culture of people wanting to try differ-
ent things, and the result is a collection of com-
panies that are, in many ways, ‘Google-esque’,
in terms of how they’ve formed their culture and
the type of initiative they have in place. I think
it’s easier for South Africans to evolve in this
way because we don’t have very many of histori-
cal organisations that have hundreds of years’
worth of history holding them back.
HAs THe yOuTH AnD enTHusiAsM Of A lOT Of
sOuTH AfricAn Businesses, BeTTer enABleD
THeM TO survive THe glOBAl DOWnTurn?
We’re used to ups and downs and generally deal
with them very well. When we have our downs,
the fall is not quite as steep as you would see
in Europe or the States, because we are such a
young economy, so we have less distance to fall
when it comes to the global recession. It is an
exciting time and when it comes to people man-
agement issues. We’re tailoring the organisation
to hit the needs of the different generations, and
particularly the diversity of South African, where
there are so many positive initiatives, like the
black economic empowerment agenda.
in TerMs Of yOur exPAnsiOn sAM, WHAT’s THe
PlAn fOr THe nexT five yeArs in TerMs Of AfricA
As A WHOle?
What we see in South Africa is a drive to really
professionalise HR and we want to ensure that
it becomes a good business partner across the
continent. This area has become such a high
entry on the agenda of most South African busi-
nesses that you’ll see it in a lot of mission state-
ments. This is a conscious effort to take respon-
sibility and really drive the economy of Africa
and South Africa. CRF aims to start working in
sub-Saharan Africa over the next two years and
we are very excited about discovering what the
business landscape is like for organisations and
multinationals operating in Africa. TAB
18 SECTION � Title18 NEWS IN REVIEW
Muse news coming out of africa
sAnfOrD HeAlTH WOrks MeDicinAl MAgic in AfricA
Dakota-based medical group, Sanford Health, has
opened a branch in Ghana and now has an estab-
lished presence on four continents.
Claiming to be the nation’s largest not-for-profit
rural health care provider, Sanford Health aims to
eventually run ten clinics in the country and has
similar plans for Ireland, Mexico and Israel by 2014.
It hopes to eventually open 100 clinics worldwide.
Sanford’s main aim in Ghana is to provide pae-
diatricians to children in need but, with a popula-
tion of 24 million, all of whom are new to the con-
cept of immunisation, the healthcare organisation
will have to treat people of all ages.
“In many developing countries, we will need to
offer care to the whole family in order to meet the
health care needs of children,” said Ruth Krystopol-
ski—executive vice President of development and
research at Sanford.
The clinic already running in Cape Coast tends
to 800 patients per week and two further clinics
are expected to open in Mankessim and Kojokrom
during 2012.
life’s A gAs fOr AnADArkO
Houston-based independent oil and natural gas
producers, Anadarko Petroleum Corp., have an-
nounced the discovery of their largest natural
gas field off the coast of Mozambique.
The deposit, 35 miles offshore, contains
15-30 trillion cubic feet of recoverable natural
gas; enough to satisfy U.S. natural gas demand
for a year.
This discovery, paired with the similarly
large deposit found by Italian energy company,
Eni S.p.A, earlier this year, has resulted in
Mozambique’s status as a major gas exporter
rising considerably.
“This could be one of the most important
natural gas fields discovered in the last ten years,”
said Jim Hackett, CEO and Chairman of Anadarko.
Anadarko is currently building a facility in
the region to retrieve the gas, with an expected
export date set for 2018.
Exports are likely to be destined for China
and Japan, according to a company spokesman.
19OCTOBER 2011 � The African Business Journal 19SEPTEMBER 2011 � The African Business Journal
news coming out of africa
THe sPiriT Of nAnDO’s
A recent advertisement by restaurateurs
Nando’s South Africa, presenting Zimbabwean
President Robert Mugabe as ‘the last dicta-
tor standing’, has caused considerable unrest
among Zimbabwe militants.
Jimu Kunaka—head of the ‘brotherhood’ of
Mugabe loyalists, Chipangano—has called for the
restaurant chain to withdraw its advertisement or
face disciplinary action.
The commercial shows Mugabe dining alone
while reminiscing over days spent with previous
dictators such as Moammar Gadhafi, Saddam
Hussein and Idi Amin, as Mary Hopkin’s hit
song, ‘Those were the days, my friend’, is played
in the background.
Innscor Africa, holders of the Nando’s fran-
chise in Zimbabwe, said that they were not aware
of the South African campaign.
“Innscor strongly feels the advertisement is in-
sensitive and in poor taste,” said Musekiwa Kum-
bula, director of corporate affairs at the company,
“but no consultation takes place between differ-
ent franchises when they are formulating market-
ing strategies.”
Under Zimbabwe law it is an offence to insult
Mugabe or to undermine the authority of his of-
fice, and Chipangano have demanded a nation-
wide apology for the negative portrayal.
20 SECTION � Title20 NEWS IN REVIEW
Muse news coming out of africa
Business TO BAck ATTAck On AiDs
Treatment Action Campaign (TAC) skills develop-
ment officer, Lawrence Mbalati, has said that the
South African business sector must endorse la-
bour laws that are non-discriminatory, and boost
funding towards HIV/AIDS programmes.
“Business must take a lead in fighting
stigma and discrimination at workplace and
communities by promoting labour laws that are
non-discriminatory and promoting conducive
environment for HIV testing and treatment,”
Mbalati said.
With World Aids Day fast approaching, there
is a desperate need for funding and awareness
surrounding the cause.
“Business must also increase strategic
health and HIV funding,” Mbalati added, “It must
promote capacity building and skills development
for community empowerment and development.”
Reports have shown that globally an esti-
mated 33.3 million people are HIV positive, and
South Africa has the largest number of HIV suf-
ferers in the world, with an estimated 5.6 million
people living with the virus.
South Africa’s recent investment in fighting
HIV has proven effective, according to a report
made by UNAIDS (Joint United Nations pro-
gramme on HIV/AIDS).
The report revealed that 95 percent of HIV
positive, pregnant women in South Africa, were
21OCTOBER 2011 � The African Business Journal 21SEPTEMBER 2011 � The African Business Journal
news coming out of africa
receiving an antiretroviral in order to prevent
their babies getting the virus; a 30 per cent in-
crease since 2007.
The rate of new HIV infections to the country
has decreased by 22 per cent between 2001 and
2009, and AIDS related deaths have decreased
by 21 per cent between 2001 and 2010.
TATA fOr nOW
Anil Sardana, Managing Director of Tata Power
Co., has announced company plans to build elec-
tricity generation plants in Indonesia and Africa
in attempt to counteract the tough business envi-
ronment in India.
India’s electricity generation is being
quashed by fuel shortages and difficulties in
getting land and environmental clearances, so to
keep business running Tata wants to build power
projects in Africa through its existing group units
in the region, but did not disclose where this was.
The announcement echoes an earlier state-
ment by Ratan Tata, Tata Power Chairman, who
said that the company was: “tendering quite ac-
tively on power projects outside India, so that the
needs of shareholders can be fulfilled.”
Tata Power is currently building a 4,000 mega-
watt power project in India which is designed to
run on Indonesian coal but a recent raise in Indo-
nesian coal prices is causing major problems.
“We believe that blending of coal can offset
22 SECTION � Title22 NEWS IN REVIEW
Muse news coming out of africa
the price to some extent. We are sourcing low-
grade coal from Indonesia, Africa and other
existing mines and will so trial runs to find if
they would be capable of reducing the cost of
power,” he commented.
BHArTi HiT THe MArk
Bharti Airtel has said that its African subscribers
have now reached the 50 million mark.
The Indian mobile firm acquired business in
15 African countries last year in a $9 billion deal
and is the world’s fifth biggest mobile operator.
Manoj Kohli, chief executive of Bharti Airtel,
said: “This milestone demonstrates our contin-
ued dedication and commitment to Africa,” and
the firm aims to have 100 million African custom-
ers at the beginning of 2013.
The firm operates a low cost model in Africa
whereby other companies are sub-contracted
in to manage non-core business activity; Nokia
Siemens and IBM run network management and
IT maintenance respectively.
Bharti’s African branch experienced a net
loss of $7.4 billion for the quarter but revenue
PHOTO BY JAMES M PHELPS, JR / SHUTTERSTOCK.COM
23OCTOBER 2011 � The African Business Journal 23SEPTEMBER 2011 � The African Business Journal
news coming out of africa
grew by 23 per cent for the year, and operating
margins grew to 26.4 per cent for the quarter.
Alongside its membership figures, Bharti has
a target to achieve $5 billion in revenue and $2
billion in operating profit from Africa by the end of
March 2013.
sOuTH AfricA TriAls MicrOsOfT Office
Global IT giant Microsoft has announced the
trial of its newest business productivity platform,
Microsoft Office 365, in South Africa.
The free trial will allow South African busi-
nesses and users to try the program for six
months before its official launch in 2012.
Office 365 does not require any existing Mi-
crosoft infrastructure to operate and was created
to allow businesses to run smoother and more
efficiently with the introduction of a vast variety
of virtual applications.
“Office 365 is the best of everything we know
about productivity, all in a single cloud service.
We have had a huge amount of support from our
local partners and customers to bring cloud com-
puting to the region,” said Melanie Botha, Micro-
24 SECTION � Title24 NEWS IN REVIEW
Muse news coming out of africa
soft SA’s marketing and operations director.
Botha believes that the first users of the ser-
vice are likely to be SME’s, providing them with a
considerable boost as they gain access to soft-
ware used by much larger enterprises.
“Now small companies can cater to their
technology needs without big infrastructure in-
vestments, and get access to several technology
tools they didn’t have before,” she explains.
Customers involved in the trial can subscribe
and continue using the accounts they have set
up with the service when it becomes commer-
cially available next year.
nOkiA knOck-OuT
Six managers in the Nairobi Nokia office are
to be replaced as the regional hub moves to
South Africa.
Kenneth Oyolla—regional manager for Nokia’s
East and Southern region—said that several heads
of department are expected to lose their jobs
which will now be handled from Johannesburg.
Nokia had eight departments in Nairobi; the
headquarters of Uganda, Tanzania, Zambia, Bo-
tswana, Mozambique and Angola, with desks in
finance, sales communications, marketing, retail,
logistics, care and developers outreach.
“The retrenchment is underway and with the
shift in the organisation structure, managers
whose roles will be found duplicating may have to
be replaced,” said Oyolla.
10,500 jobs have been shed in a move that
is part of Nokia’s global plan to reverse its falling
market-share as rivals Samsung, Apple, ZTE and
Huawei become increasingly aggressive.
“I can confirm that I have also opted out as
the general manager since the new structure is
different and does not suit what I am looking for,”
Oyolla announced at a press conference. He will
stay in his position until the end of this month.
visA PAnDers TO rWAnDA
Visa Inc. is to create a new partnership with the
Rwandan government in order to expand its busi-
ness into the country.
The collaboration between Rwanda’s central
bank and a new office in Kigali will permit Visa to
process transactions in Rwandan francs and also
25OCTOBER 2011 � The African Business Journal 25SEPTEMBER 2011 � The African Business Journal
news coming out of africa
to increase the number of ATMS and business
that accept Visa cards in the country.
The government is helping Visa to open its
office, and Rwandan officials will be trained in
financial management in order to handle pay-
ments precisely.
“We’re doing it in Rwanda in hope of being
able to export whatever works to other Africa
countries,” said Elizabeth Buse, Visa’s group
president for the Asia-Pacific region, who also
notes that many Rwandans do not currently have
bank accounts.
26 SECTION � Title26 NEWS IN REVIEW
Muse news coming out of africa
27OCTOBER 2011 � The African Business Journal 27SEPTEMBER 2011 � The African Business Journal
news coming out of africa
Visa already has offices in Kenya, South
Africa and Nigeria, amongst partnerships with
major hotels and tour operators in those regions.
MasterCard Inc. also has offices in the Afri-
can continent and Michael Miebach—president
of MasterCard for the Middle East and Africa—
said: “We see growth potential in these markets
for many years.”
greenPeAce gATecrAsH
A group of climate change activists from various
NGO’s descended upon the Global Business Day
conference in Durban to name and shame those
industries that are smothering progress on the
campaign to combat climate change.
Six apparently peaceful Greenpeace protes-
tors were arrested as they attempted to hang
a banner reading “Listen to the People, not the
Polluters”, whilst other organisations produced
life-size puppets demonstrative of corporations
such as Shell, Koch Industries and Eskom.
“Meeting in the shadow of the vital UN talks
these dirty dozen companies should be ashamed
of their role in undermining global talks to tackle
climate change, to save lives, economies and
habitat. Putting short-term private profit before
public protection is morally repugnant,” said
Kumi Naidoo, International Executive Director of
Greenpeace International.
“Our political leaders need to close the door
on dirty corporations who could celebrate failure
in Durban; they must listen to the people and
not the polluters. Our children and their children
deserve nothing less,” she added.
The so called ‘dirty dozen’ companies consist
of: Royal Dutch Shell, Shell Canada, Canadian
Association of Petroleum, US Chamber of Com-
merce, ArcelorMittal, BusinessEurope, Koch
Industries, BHP Billiton, BASF, International
Chamber of Commerce, American Petroleum and
Eskom. TAB
flying THe green flAgInnovative partnerships plant trees of life as
transport companies target carbon neutralising
flying THe green flAgInnovative partnerships plant trees of life as
transport companies target carbon neutralising
Business
30 BUSINESS � Plane talking: Flying the green flag
PrOMinenT cAMPAigners fOOD & Trees for Africa
(FTFA) are teaming up with Airports Company
South Africa (ACSA) to help visitors arriving in Dur-
ban, make their journey a carbon neutral.
It’s all happening as the world gears up for
surely one of the most important Conferences of
the Parties (COP17)—the 17th annual meeting on
climate change.
Ironically, the environmental cost of flying in the
accumulated delegates, rock stars, hangers-on and
world leaders, has enraged many observers.
The legacy of COP17, however, need not be
an enormous carbon footprint. As South Africa’s
longest standing climate action and environment-
monitoring enterprise, FTFA offers visitors an op-
portunity to leave a tree in Africa to help solve this
dilemma. ACSA’s King Shaka International Airport
in Durban celebrated one year on 1 May 2011.
The airport is currently handling almost five
million passengers annually and, with the current
trend of increasing passenger numbers in the past
few months, it is well and truly set as the gateway
to Africa for COP17. Passengers arriving at King
Shaka International Airport from around the world,
will not only be able to calculate the carbon emis-
sions generated from their flight, but also start
offsetting as soon as they land.
This can be done easily and efficiently by
using the ‘My Tree in Africa’ carbon calculator—the
“The total carbon emissions produced can be offset by buying a tree. This simple act of geological kindness can all be done straight from a visitor’s mobile phone, as soon as they land.”
31JANUARY 2012 � The African Business Journal
“The total carbon emissions produced can be offset by buying a tree. This simple act of geological kindness can all be done straight from a visitor’s mobile phone, as soon as they land.”
32 BUSINESS � Plane talking: Flying the green flag
first of its kind. This uses the global greenhouse
gas reporting protocols, which aim to harmonize
GHG accounting and reporting standards
internationally, ensuring that different trading
platforms and other climate related initiatives
adopt consistent approaches to GHG accounting.
The total carbon emissions produced can
then be offset by buying a tree or, indeed, trees.
What’s more, this simple act of geological kind-
ness can all be done straight from a visitor’s
mobile phone as soon as they land.
International, or local visitors, wanting to
commemorate their time in Durban can also
go to mytreeinafrica.org from their most conve-
niently located computer to buy their tree. Each
purchase comes with a certificate of the specific
tree bought, which also serves as a reminder
of their commitment. Perhaps leaving this on a
mantelpiece will inspire another person to plant
a tree. Before you know it, there’s a forest.
Alternatively, by simply walking straight out
of the International arrivals hall at King Shaka
and heading for the ACSA FTFA stand, visitors
can guarantee that their flight was a carbon
neutral one. The friendly people at the FTFA
stand will calculate individual carbon emissions
as well as the number of trees needed to offset
these emissions.
Visitors can also make a pledge on FTFA’s
Climatree, a beautiful wire art baobab sponsored
by Pick n Pay. By buying a leaf for the Climatree
at only R10, individuals can make their own
personal climate change pledge. Each leaf rep-
resents a commitment towards a lower carbon
future. For every 10 leaves added a tree is plant-
ed for a disadvantaged community in a barren,
dusty township, adjacent to the airport precinct.
This gesture ensures that Africa’s landscape is
being positively changed, while the appearance
of trees will be a lasting symbol of mankind’s at-
tention to the environment.
The Airports Company of South Africa always
strives to give back to the community, and this
way it can help spread environmental awareness.
ACSA staff will assist FTFA in the planting of the
trees purchased during COP 17, in the form of a
sponsored team-building event.
Steering groupMeanwhile, Avis Rent a Car continue to contribute
to the sustainability drive and in its very own col-
laboration with FTFA, planted a hectare of bamboo
plants at Blue Disa, south west of Johannesburg.
Chief Executive of Avis, Wayne Duvenage says,
“Our goal was to offset vehicle emissions from
this year’s ‘Put Foot Rally’; an event that saw crews
travel throughout Africa discovering the many
loved, admired and respected destinations, and in
33JANUARY 2012 � The African Business Journal
“While the outcome of CoP17 remains uncertain, these inspiring campaigns, to offset carbon admissions, show how the seed of an idea can flourish, changing lives forever”
34 BUSINESS � Plane talking: Flying the green flag
support of one of South Africa’s young and dynam-
ic charities, `The Bobs for Good Foundation’.
Avis has always believed that environmental
responsibility is one of their top priorities to help
make the world a little greener than it already is.
With this in mind, Avis joined forces with FTFA in
their Bamboo for Africa programme. Among some
1200 uses, bamboo also provides a high impact
carbon restoration opportunity. The programme
is being introduced to the community with plant-
ings at public schools and on open/tribal land.
Blue Disa, for example, is a community
based organisation on the outskirts of Lawley
Township 25Km south west of Johannesburg.
Reverend Kopano Mohapi is the CEO and runs a
feeding scheme for 300 children on a daily basis
and is entrenched in the local community devel-
opment. It was allocated a derelict farm adjoin-
ing the community, which is being developed to
become a hybrid food crop and energy plantation
35JANUARY 2012 � The African Business Journal
farm. The farm will produce food and sustain-
able solid and liquid fuels to the community. The
sponsors, such as Avis, who support this commu-
nity development, will in return get VCS credits to
offset their carbon footprints.
From the data collected it was calculated that
26 bamboo plants would need to be planted,
but Avis chose to increase that number in order
to fill a hectare of land, planting 231 bamboo
plants in total.
FTFA founder, Jeunesse Park, who recently
presented Al Gore’s 24 Hours of Reality, says,
“Climate change and environmental issues need
to enter the public domain so more people be-
come aware of the role they can play in ensuring
a sustainable future. Avis demonstrates that,
when being green is a company policy, the im-
pacts are powerfully felt.
“We have made it part of our core mission
to consciously make an effort in bettering our
carbon footprint through initiatives such as this
one,” he adds.
While the outcome of COP17 remains uncer-
tain, these inspiring campaigns, to offset carbon
admissions, show how the seed of an idea can
flourish, changing lives forever TAB
keeP yOur eneMies clOseTABJ sPOrTs rePOrT WiTH AnDreW Miskin, AkA Our MAn in cAPe TOWn
Conspiracy theories and Mayan calendars aside, 2012 in africa is what you make of it. Despite issues in europe—which would leave even Solomon scratching his medulla oblongata—and generally near-zero growth expected in the First World, africa, although enigmatic, is still looking like a good place to be; especially if you like sport.
keeP yOur eneMies clOseTABJ sPOrTs rePOrT WiTH AnDreW Miskin, AkA Our MAn in cAPe TOWn
38 SECTION � Title
It’s sure to be ClosWhat can we look forward to in 2012? One Afri-
can swimmer has the weight of a nation on his
broad shoulders and multiple golds are not just
dreamt of, but expected. Chad Le Clos is in sub-
lime form, returning to South Africa in November
2011 after a dominant performance in the re-
cent FINA Short Course World Cup.
Remarkably, the 19-year-old is seemingly tak-
ing it all in his stride. He won 35 medals in the
seven events of the series—23 of them, of the
most precious metal variety—and received the
men’s swimmer of the series award.
As mature and philosophical as young super-
stars are these days, London 2012 looms large,
and the pressure will be cranked up to the pro-
verbial ‘11’. By his own admission, sleeping gi-
ants like Michael Phelps (who competes in most
of the same events as Chad) are likely to sneak
‘out of the woodwork’ and produce something
special on the biggest stage. Chad is going to
have to swim his socks off and even improve on
his current form. At his tender age, he probably
imagines that he can and will swim faster, but
he won’t know how much faster until the fun and
games begin.
cHADle clOs
PHOTO SOURCE:
WWW.FACEBOOK.COM/PAGES/CHAD-LE-CLOS/158215830861049
39JANUARY 2012 � The African Business Journal
PHOTO SOURCE:
WWW.FACEBOOK.COM/PAGES/CHAD-LE-CLOS/158215830861049
40 SECTION � Title
LUKE SCHMIDT / SHUTTERSTOCK.COM
“For the Springboks vs england tests there will be a generous helping of good manners for starters, but the main course will take on militaristic proportions and the heavy artillery will be duly deployed. all is fair in love and war, after all”
41JANUARY 2012 � The African Business Journal
Old wounds reopenedAnother cracking highlight on the 2012 sporting
calendar is the three test match tour that Eng-
land make to South Africa in May/June. Rugby’s
inventors returned from the World Cup with their
reputation destroyed and a team spirit as brittle
Mike Tindall’s wedding vows. As England attempt
to repair some of the damage back in the South-
ern Hemisphere I am certain this going to be an
old-fashioned ‘Anglo Boer War’. There will be a
generous helping of good manners for starters,
but the main course will take on militaristic pro-
portions, and the heavy artillery will be deployed.
All is fair in love and war, after all.
The professional age may have lead to
greater education and therefore less prejudice
between nations, (with many South Africans ply-
ing their trade in France, Japan and indeed the
UK), but you better believe that mature thoughts
of tolerance and ‘forgetting the past’ would only
be counter-productive when these two giants
of rugby line up to sing their respective national
songs in Durban on 9 June, Johannesburg on 16
June and Port Elizabeth on 23 June.
Who will be at the helm of both nations (both
from a coaching and captaincy perspective) re-
mains to be seen. To illustrate how traditional
these two rivals are, I would be willing to put a
large wager on neither country looking outside
their homelands for such appointments.
That said; England rugby and more so cricket,
have been more than willing to include ex-South
Africans in their squads. To have a small dig at
the unquestionably proud English cricket team
(now rated No. 1 in the world), where would they
be without Strauss, Trott and Pietersen? Where
would the triumphant English 7’s rugby team have
been in Dubai in Early December 2011 without
a certain Mat Turner? Do yourself a favour and
research his background too!
Let battle commence. TAB
AfricA’s OlyMPic HOPefuls
STEVE HEAP / SHUTTERSTOCK.COM
AfricA’s OlyMPic HOPefuls
as the Games of the XXX olympiad edge ever closer, TaBJ takes a look at some of the athletes from the african continent that are looking to make their year one to remember.
44 SECTION � Title
kenenisA Bekele
Ethiopia is a production house of long-distance running talent and has brought
to the world stage some of the greatest athletes of all time, including the majes-
tic Haile Gebrselassie.
The country’s current double Olympic champion, Kenenisa Bekele, will no
doubt be among the bookies’ favourites to retain both of his medals from four
years ago in the men’s 5,000 metres and 10,000 metres.
Considered by many to be one of the greatest distance runners of all time,
Bekele will look to reprise his success of four years ago in London’s East End,
despite being recently beaten by compatriot Ibrahim Jeilan in the men’s 10,000
metres at the World Championships in Daegu, South Korea.
Having overcome a succession of injury problems in the past few years,
Bekele will be hoping 2012 is the year he returns to dominating the world of
long-distance running.
MAry keiTAny
With a rich tradition in long- and middle-distance
running, Kenya is once again plotting to bring home
a handful of track and field gold medals from Lon-
don.
At the Beijing Games in 2008, the East African
country won 14 medals, its best Olympic perfor-
mance to date, and its athletes won a total of 17
medals at the 2011 World Championships in Daegu
including seven gold.
Leading Kenya’s charge for glory in 2012 is
Mary Keitany who won the 2011 London Marathon.
45JANUARY 2012 � The African Business Journal
cAsTer seMenyA
South African track and field star has dominated the back pages in recent years having been
subjected to well-documented gender tests by the IAAF. The former world champion 800
metres runner was forced to go through the very public ordeal to prove she did not hold an
unfair competitive advantage over her opponents.
At the 2009 World Championships she clocked a time of 1:55.45 in the final of the 800
metres to take the gold home to South Africa, before being withdrawn from international
competition until July 2010 while the IAAF attempted, somewhat clumsily, to clear her to
return to competition.
This year’s World Championships in Daegu, South Korea, marked her return to the world
stage, but she was unable to repeat her feat of two years earlier, having to settle for the sil-
ver medal in the 800 metres final.
Nonetheless, Semenya will be keen to prove her doubters wrong in London and will be
among the most hotly-tipped medal contenders.
In 2007 Keitany won silver at the IAAF World
Road Running Championships and two years
later became the World Half Marathon champion.
Keitany holds the women’s half marathon
world record and is also the first woman to run
the distance in less than 66 minutes.
Joining Keitany in London as a potential
Kenyan medallist will be Boston marathon win-
ner Geoffrey Mutai and the 3000m steeplechase
runner Brimin Kipruto, who will be going for his
third consecutive Olympic medal.
46 SECTION � Title
ZersenAy TADese
Zersenay Tadese is a true superstar in the tiny Horn of Africa state of Eritrea.
A hero in his homeland thanks to his status as the country’s only Olympic medallist, Zersenay
has the unusual honour of having his wedding broadcast live on Eritrean television.
A 10,000 metres bronze medallist at the 2004 Athens Games, four years later in Beijing he
missed out on a medal after finishing fifth in the same event. He is expected, however, to return
to the Olympics stage in 2012 and is widely tipped to return from London as a medallist.
Zersenay has found most of his success in the half marathon distance, with three consecu-
tive victories in the World Half Marathon Championships from 2007 to 2009. He broke the
world record at the Lisbon Half Marathon in 2010 and has excelled in cross country running,
collecting one gold, one silver, and two bronze medals from the last five IAAF World Cross Coun-
try Championships.
At the 2011 World Championships he finished 4th in the 10,000 metres and will have high
hopes of bringing home a second Olympic medal to his young country.
47JANUARY 2012 � The African Business Journal
TirunesH DiBABA
Ethiopia’s leading lady and the most successful long-distance runner in
the history of the Oromo people will be among the most watched ath-
letes at the London Games.
The Beijing double gold medallist will no doubt be back for more in
London, having followed up a 5,000 metres bronze at the 2004 Athens
Games with gold in the same discipline at the 2008 Games and gold in
the 10,000 metres.
Known in her native country as the “Baby Faced Destroyer” the four-
time world champion also has five world cross country titles to her name.
Following her success in the last Olympic Games she was given the
rank of Chief Superintendent by her club, the Prisons Police, for her
services to both club and country.
48 SECTION � Title
OussAMA MellOuli
Traditionally a nation of boxers and long-distance runners, Tunisia’s more recent
success has come in the pool.
At the Beijing Olympics, swimmer Oussama Mellouli became the first African
male to win a gold medal in an individual swimming event.
In September 2007 Mellouli was retroactively banned from competition for 18
months having failed a drug test in December 2006, but returned in style by win-
ning the 1,500 metres freestyle event at the 2008 Olympics.
The Tunisian will hope to top off a year of political and social upheaval in his
home country by bringing back another gold medal from the London Games.
49JANUARY 2012 � The African Business Journal
kirsTy cOvenTry
Without doubt the sporting star of Zimbabwe (even ahead of moustached former
Liverpool goalkeeping Bruce Grobbelaar) is seven-times swimming medallist
Kirsty Coventry.
Coventry won four medals at the last Olympics, including gold in the 200
metres backstroke — a feat she will be looking to repeat in Stratford’s brand new
public swimming baths.
Described by the head of the Zimbabwe Olympic Committee as the country’s
“national treasure”, Coventry has won all but one of the Zimbabwe’s Olympic
medals, with the only exception being the surprise gold won by the women’s na-
tional field hockey team in the 1980 Olympics in Moscow. TAB
Quick sHOT: cHAOs AnD cOnfusiOn in cAirO050
Quick sHOT: cHAOs AnD cOnfusiOn in cAirO
TaBJ checks in with British expatriate and teacher Gerald Point, in the volatile capital of egypt. It’s a time of great political and social turbulence—here’s his honest, strange and amusing assessment of life on a potential mine field
POliTics
52 POLITICS � Quickshot: chaos and confusion in Cairo
WHAT THe Hell is gOing On in cAirO?
From what I’ve seen and heard it is the unrea-
sonable minority, who are making the most of
recent turbulence, as an excuse to throw stones
at the police. The reasonable Egyptians I’ve met
are taking no part; stating that there is not a big
enough reason to become violent or threaten the
chance of holding an open election.
WHen DiD iT kick Off?
After an announcement by the military that they
would hold the final say on the revised constitu-
tion, and any future military budgets.
cOulD yOu feel Any HOsTiliTy leADing uP TO iT?
It was hard to predict anything coming, because
I can’t read Arabic, but there was a distinct
change in atmosphere a few days before the
major clashes.
HOW HAs THis AffecTeD yOu?
I have postponed my membership of a down-
town spa resort due to the tear gas. This
wasn’t a big problem as it was full of unsavoury
characters anyway.
WHAT MeAsures HAve yOu TAken TO ensure
sAfeTy?
The caretaker of my building has dusted off what
he calls his ‘revolution weapons’, and there are
a number of small arms dealers in the city doing
brisk business. Personally, I carry a can of pep-
per spray at all times. A female colleague of mine
was recently threatened at a demonstration and
she maced four people, rendering them com-
pletely immobile.
“The reasonable egyptians I’ve met are taking no part; stating that there is not a big enough reason to become violent or threaten the chance of holding an open election”
53JANUARY 2012 � The African Business Journal
DOes yOur WOrklife cOnTinue?
I’m a man who likes to keep his word, even in
a revolution—if the schools open, and the kids
want to learn, I’m available (also for private study
at only $50 an hour). Otherwise, it’s business as
usual until the Ministry of Education say other-
wise (or until they take a bribe).
WHAT DO yOu THink Will Be THe resulT Of THe
PrOTesTs?
It’s a bit hotch potch, but there’s some potential
for harmony eventually. The Military cannot
back down as the Police are on strike, and
lawlessness would result. The protestors won’t
back down, because they generally don’t have
“The reasonable egyptians I’ve met are taking no part; stating that there is not a big enough reason to become violent or threaten the chance of holding an open election”
54 POLITICS � Quickshot: chaos and confusion in Cairo
“The caretaker of my building has dusted off what he calls his ‘revolution weapons’, and there are a number of small arms dealers in the city doing brisk business. Personally, I carry a can of pepper spray at all times”
55JANUARY 2012 � The African Business Journal
anything better to do. Non-nationals are hoping that
the elections will distract the country and reduce
violence. The worst case is that the Army become
too aggressive, resulting in serious problems.
WHAT OPiniOn HAve yOu fOrMeD ABOuT THe PeOPle
Of cAirO?
Egyptian people are kind, hot-headed and happy
people, but it’s hard to ignore the religion-influenced
chauvinism shown by most men. This is something
that could very easily change, especially if the next
democratically elected leader decides that radical
changes are needed.
DO yOu THink egyPT HAs A BrigHT fuTure?
It all depends on the direction of Politics. The Mus-
lim Brotherhood probably represent the majority of
working Egyptians, 40 per cent of whom are illit-
erate. Other politicians have championed Turkey
as a model choice for a Muslim state. I certainly
won’t be signing a contract extension until some
confirmation appears.
WHAT HAs Been THe MOsT reWArDing PArT Of yOur
JOurney?
To be honest, beach trips on the weekend. Educa-
tionally, I like to think that I have made a positive
difference to people’s lives. TAB
On THe BusesDuBigeOn BODy AnD cOAcH
056
TrAnsPOrT
On THe BusesDuBigeOn BODy AnD cOAcH
58 TRANSPORT � Dubigeon
Bus and coach manufacturing has come a long way in the last ten years and Dubigeon has been passionately leading the way in modern design, style, innovation and performance.
Of All THe forms of public transport it is un-
doubtedly buses that are seared most into the
public consciousness of communities through-
out the world. We can all remember great
conversations, strange incidents and raucous
laughter, shared on buses. Some of us can
even remember shouting at a few—usually when
we’ve just missed one. Yep, buses really have
been part of everyone’s journey.
Favourite bus stopDubigeon Body and Coach is a bus manufacturing
company with a fine tradition. It was established
60 years ago and is owned by the Larimar Group.
A great deal has changed since the company
started producing its vehicles in the 1950s, not
59JANUARY 2012 � The African Business Journal
least the buses and coaches. As the generations
have passed the appearance, colours and sounds
have evolved, but Dubigeon’s principals remain
the same. Indeed, for the company’s meticulous,
200-strong workforce delivering people safely,
reliably and in comfort, is still the top priority. The
good folk on the Dubigeon production line are as
passionate about building exceptional buses as
their predecessors were, decades before.
The employees are a vastly experienced and
multi-skilled bunch. Craftsmen in its ranks include
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Manufacturers Of Heating, Cooling, Forced Draft Ventilation & Airconditioning Elements for the small, medium & large builders of Ambulances, Buses, Coaches, Marine, Agricultural, & Construction Machinery Industries. A complete & varied range of user friendly products & accessories.www.kalori-sa.com
Year after year we produce MEKRA long mirrors for more than 8 million vehicles such as trucks, buses, agricultural machinery and transporters.We are a "global player made in Germany" - fully focused on the commercial vehicle industry. www.mekra.de
60 TRANSPORT � Dubigeon
bus body builders, spray painters, diesel mechan-
ics, artisans, electricians, welders, technicians,
quality controllers and machinists. Their combined
skills have helped to create some of the best
buses on the road today.
The turnover of the Dubigeon factory ranges
from R100 up to a whopping R354 million a year,
depending on the work volume from customers.
Although the factory particularly specialises in
manufacturing bus bodies and building coaches,
it also repairs old bodies, assembles chassis and
produces auxiliary vehicles units such as mobile
ticket offices, tow trucks and luggage trailers.
Getting there in one pieceDubigeon Body and Coach’ bodies comply with
strict South African and International manufac-
turing specifications, regulations and legislations.
These measures include thorough roll-over pro-
tection and tilt tests.
The roll-over and homologation process for
the company are fully audited by the South Af-
rican Bureau of Standards, while the tilt-test is
fully examined by Gerotek. Dubigeon has also
achieved one of the highest levels of local con-
tent production in the bus building industry, with
most of the component manufacturing being
generated on the premises.
Divisional Director Allan Cox is in no doubt
that the company’s continued high standards
have been the key to its long-term success. “Du-
bigeon have a team that is dedicated to perform
research and development activities for the com-
pany,” he explains. “That same passionate team
is responsible for designing, testing and building
prototypes of new buses.”
61JANUARY 2012 � The African Business Journal
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62 TRANSPORT � Dubigeon
Ticket to rideThe team also has the honour of representing
the company at the industry governing associa-
tion (SABOA), where safety and technical specifi-
cations of buses are developed.
Meanwhile, Dubigeon has also established
a mutually beneficial partnership with the Uni-
versity of Pretoria and Tshwane University of
Technology. A number of students from these
institutions complete their practical training at
Dubigeon, where they are taught priceless skills
in an environment of outstanding professional-
ism. There is certainly no better company in
South Africa to develop coach-building talent.
In addition, the factory have also forged
strong commercial relationships with leading bus
manufacturing companies such as MAN, Daim-
ler-Benz, Bus mark 2000 and Iveco.
It’s fair to say that after six decades of driving
the industry Dubigeon, will keep the motor run-
ning, well into the future. TAB
WWW.DuBigeOn.cO.ZA
63JANUARY 2012 � The African Business Journal
BeHinD THe WHeel:
95 per cent of raw materials and components
used in the manufacture of the Dubigeon
body are locally produced
100 per cent parts availability, due to local
development and production of bodies
Established accidents facility catering for an
express repair service, capable of restoring
the vehicles to their original condition
Unique construction methods, making use
of several sub-assemblies that allow simple
accidents repairs to be carried out quickly
Interior noise levels below 80DB
Dust and water leak resistant facilities
Proven track record of building buses
designed for operating in arduous conditions
for an excess of 1,000,000 kilometres
Quick boarding and alighting of passengers
due to extra wide passenger door
Robust corrosion resistance structures
We distribute throughout Southern Africa
• Our patented “double rail” makes our windows leakproof
• We are BS EN ISO 9001:2008
compliant
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lOgicAl lOgisTics064
With a modern and constantly-monitored fleet, transportation experts Massyn Vervoer is bringing its demanding customers from across South africa the service they require to operate their businesses effectively.
lOgicAl lOgisTics
TrAnsPOrT
66 TRANSPORT � Massyn Vervoer
As One Of the nation’s leading transporters of
construction material, Massyn Vervoer is playing
an important role in keeping the South African
construction running.
From its offices and depot in Witbank,
Mpumalanga, the company transports a broad
range of materials, but has a core focus on con-
struction material logistics.
The company has a fleet of state-of-the-art,
well-maintained vehicles supported by a 24/7
logistics department, which means it is able to
ensure that it always knows where its custom-
er’s freight is.
By ensuring it maintains a strong product
and service delivery record, the company is
heading towards its target of becoming a major
player within South Africa’s transport industry,
despite the economic difficulties all African
companies are facing up to.
“It’s not an easy industry at this time and
it’s quite difficult as everybody thinks that once
you’ve got a truck on the road you make a lot
67JANUARY 2012 � The African Business Journal
of money, but that’s simply not the case at this
stage,” says marketing director Bernard Massyn.
“Another key issue we’re facing is in staff-
ing,” he notes. “There are not as many good,
adequate drivers available as there once was
and also our customers are getting much more
demanding than they perhaps were five or six
years ago.
“Customers are demanding faster delivery
times and booking times are becoming ever tighter.
“There’s no space for error or anything
that can go wrong; whether it is road closures,
breakdowns, or any kind of delay, there’s simply
no space for delays,” he adds.
Fleet of fancyWith a modern fleet comprising more than 45
trucks, ranging from taut liners to tankers and
flat decks to side tippers, the firm is able to
offer a wide range of logistical solutions to its
industrious clientele.
“We cover the whole of South Africa and
as a 24-hour operation we have a control room
tracks all of our trucks and follows up and sorts
out everything that goes along with the logistics
of our operation,” remarks Massyn.
The company moves all types of goods and ma-
terials across the country including a broad range of
building supplies to fast moving goods and clothes.
68 TRANSPORT � Massyn Vervoer
“I would say 50 per cent of our carrying is
building material, and that includes anything
from timber and brick, to cement and tiles,”
says Massyn.
But despite its ability to provide a wide range
of logistical solutions, problems for the company
come from its ability to find quality staff.
“Staffing is becoming more of a problem for
our industry — especially when it comes to finding
quality drivers,” says Massyn.
“We conduct training with all our drivers once
they start with the company and once every year
they are re-evaluated by a drivers association, and
therefore we do try to train the drivers and get to
as high a level as possible.”
A family affairThe company was originally established as
Lowveld Warehousing in 1984, before becoming
SA Transit Services in 1985 during a period of
operational expansion.
At the turn of the millennium the company
began to experience a greater demand for long-
distance haulage, which lead to a further name
change to the current company name Massyn
Vervoer and a further expansion of its operations.
Each department within the company is run
by a different member of the Massyn family.
“Like everybody else, we do have our family
squabbles once in a while, but working with close
relations works really well because everybody
knows what everyone else is doing,” he remarks.
Massyn Vervoer close-nit managerial team
works to ensure a combination of well-main-
tained vehicles, on-time deliveries and constant
communication with its customer, is setting it
apart from its competition.
69JANUARY 2012 � The African Business Journal
“We speak to our customers almost 24-7 and
we speak to our customers about anything they
need to know,” remarks Massyn.
Since the time of the final name change the
company has shifted its focus towards long-haul
projects, sending bigger and faster vehicles on
to the roads of South Africa.
Its drivers are handpicked and are given
periodic training and testing to ensure that they
are up to date with new rules, regulations and
vehicle technology.
From its dedicated control room the
company is able to monitor its fleet throughout
the years.
The control team monitors all of the
company’s vehicles on the road through a
70 TRANSPORT � Massyn Vervoer
71JANUARY 2012 � The African Business Journal
C-Track Surveillance system, which pinpoints
the exact location and speed at which the
vehicles are travelling.
The controllers stay in constant contact with
all of the firm’s drivers, providing them with GPS
co-ordinates and ensuring the driver and the
cargo they are carrying remain safe.
All of Massyn Vervoer’s vehicles have been
fitted with DriveCam camera systems, allowing its
controllers a real time look into the cabin of its
trucks and a driver view of the road.
Flourishing flotillaMassyn Vervoer is looking at expansion and is
planning to add an additional five to 10 vehicles
to its fleet.
“It depends on what concepts are on their
way in now, but at this stage we’re looking at
adding an additional 10 vehicles for the New
Year,” reveals Massyn.
With more vehicles soon to enter service,
things are looking up for the South African de-
livery specialists and with the company’s broad
focus, Massyn believes the firm stands apart
from its competitors.
“I think there are a lot of guys that only focus
on one specific type of transport such as bulk or
flat-decks, but we are quite open-minded to ev-
erything,” he says. “If there’s a contract available
and it’s worthwhile, we will do it, and that is not
really an attitude we will shy away from.”
A strong commitment to its clients and a
willingness to go beyond basic customer service
is helping Massyn Vervoer towards its target of
becoming one of South Arica’s leading transpor-
tation names. TAB
MAssynvervOer.cO.ZA
lencO-OPerATiOn072
lencO-OPerATiOnSouth africa is a changing landscape with incredible structures appearing everywhere you look. It’s a good time to be developing properties, which is why every single day lBC lenco love building for the future
cOnsTrucTiOn
74 CONSTRUCTION � lBC lenco
nOTiceD AnyTHing DifferenT about where you
live recently? Yep, it’s looking pretty smart
isn’t it? South Africa is fast becoming the most
highly modernised, industry leading, architec-
turally adventurous and transformational coun-
try on the planet. In fact Google probably have
to change its maps for South Africa more than
any other continent.
Born in the 80sAt the heart of this geographical revolution are
the property development and construction
companies operating in the region. It is now a
sprawling and hugely competitive industry with
great opportunities for innovation.
Along with New Romanticism, leg warmers
and very strange haircuts, LBC Lenco began its
long and successful dalliance with the industry
back in the seminal year of 1981.
Th company remains one of very few to
have witnessed every nuance South Africa’s
emergence—from the political uncertainty of the
early eighties—to the post-apartheid optimism
of 1994; into the new century and beyond. It’s
been a memorable journey through imagination,
styles, partnerships and progress, and, along
the way, LBC Lenco has laid every brick with as
much care and attention as the first.
Room with a viewThe company was founded by Len Spedding and
started off completing small building projects,
renovations and additions. He has gradually built
the business into the significant and reputable
75JANUARY 2012 � The African Business Journal
enterprise it is today, regularly increasing its ca-
pabilities and taking on bigger projects.
After safely reaching its thirty-year anni-
versary the company can look back proudly on
a diverse and brilliant portfolio of completed
assignments. Indeed, its distinctive finger print
can be seen throughout the Gauteng region as
well as across Durban and Mpumalanga.
Some of its most impressive developments
include Jackal Creek, Blue Lakes, Carlswald,
76 CONSTRUCTION � lBC lenco
Ferngate, Woodbridge and La Bella Costa. These
ambitious settlements involved hundreds of
modern apartments and units, while proving im-
mensely popular with buyers.
With all its experience and market place acu-
men the company is able to fulfil several entry
level contracts while also handling ventures
worth between R50M and R150M—all finished to
LBC Lenco’s uniquely high specifications.
“The company specialises in turnkey develop-
ments and has built a vast amount of experience
and expertise in residential, commercial and
industrial projects,” explains Director, co-owner
and another member of the Spedding dynasty,
Russell. “Over the years we have predominantly
been involved in residential developments, from
entry level to up-market. Our mission is to con-
tinually improve on the quality of our product and
overall performance, while maintaining our ethos
of honesty and integrity.”
77JANUARY 2012 � The African Business Journal
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78 CONSTRUCTION � lBC lenco
Rolling with the punchesThe economic downturn has required the Sped-
ding crew to use all its knowledge of the industry
to ensure long term safety and stability.
Construction has become a cut throat en-
vironment in which fortune favours the brave,
while many businesses have become victims
of the recession. Fortuntely LBC Lenco has not
been one of them. A fine back-catalogue, reliable
workforce and a credit-crunch busting restructure
have ensured survival.
Russell is convinced that the company’s ap-
proach to its work, along with solid foundations
have been pivotal to its continuation.
“When you choose Lenco, you get a vastly ex-
perienced professional company that is honest,
trustworthy, reliable and dedicated to the cause,”
he enthused. “We always try our best, go the
extra mile and look after our clients. Our primary
objective is customer satisfaction; we are not
claim-orientated and try to keep extra costs to a
bare minimum.”
79JANUARY 2012 � The African Business Journal
At the moment the company has a workforce
of 70 highly skilled, efficient and determined
people, all aiming for the common goal of creat-
ing outstanding structures and adding to LBC
Lenco’s impressive legacy of buildings.
Tech careAs the company has evolved—and the technologi-
cal revolution has gathered pace—one of the big-
gest differences has been the business’s reliance
on computers and data. The CCS estimating pro-
gram and Buildsmart accounting software have
been particularly useful in streamlining processes
and guaranteeing that everything runs smoothly.
The company has always been about mov-
ing forward, building for the future and embrac-
ing change. Each and every one of its many
ventures are testament to the company’s philos-
ophy that pride comes before everything else,
including profit.
“It is always the most rewarding thing, on the
completion of a project, when you can step back
and admire your creation. This is what makes it
all worthwhile,” reflects Russell.
As the company moves into its forth decade
of trading there are many projects to look for-
ward, to while new horizons—such as the plan to
expand into central Africa—beckon.
For up and coming companies, LBC Lenco’s
story is an inspirational one—a timely reminder
that sometimes the good guys come out fighting.
There’s certainly something to be said for cement-
ing your status—especially in this game. TAB
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urBAn DurBAn080
invesTMenTs
urBAn DurBAnProperty development and holdings company Misty Blue is developing a mixed-use retail, residential and commercial site, which is targeting buyers from all walks of life.
82 SECTION � Title
lOcATeD in One of Durban’s most sort-after property
areas, construction on Urban Park has begun in
earnest on a development aiming to entice buyers
and tenants by establishing a new benchmark in
modern living.
The style-inspired development will offer buy-
ers top-quality finishes and will look to take advan-
tage of its close proximity to some of Umhlanga’s
best restaurants and shopping facilities, as devel-
oper Misty Blue looks to follow up the success of
its previous Durban development — The Square
Boutique Hotel.
The hotel and spa complex is situated in a
prime position on Umhlanga Ridge, just a stone’s
throw away from Gateway Theatre of Shopping and
a 15 minute drive from the new King Shaka Interna-
tional Airport, and is fast becoming a local icon.
As one of KwaZulu-Natal’s leading property de-
velopers, Misty Blue has established a track record
of developing high-quality residential, commercial,
and mixed-use office blocks and hotels.
Along with The Square Boutique Hotel, its
extensive portfolio includes the Grand Floridian,
situated on the top of La Lucia Ridge, Aldrovande
Palace within Durban’s Gateway development, and
the New Town precinct.
In delivering Durban’s Urban Park develop-
ment, Misty Blue is working with the dynamic and
ambitious interior designs firm Union 3 and archi-
tects PGA Architects, whose extensive portfolio
includes Il Pallazzo, Platinum Towers and the ICC
Durban Hotel.
83JANUARY 2012 � The African Business Journal
Marketed as an exciting new investment
that offers a modern lifestyle for buyers,
the mixed-use development of Urban Park
offers value-for-money property for a range of
investors, first-time buyers and end users.
Urban Park is located at the entrance of
Umhlanga Ridge Boulevard opposite a Porsche
showroom and is protected by 24-hour security
with CCTV surveillance.
It is situated close to Durban’s Gateway Theatre
of Shopping, the city’s leading retail centre, and a
Virgin Active Gym is within walking distance.
For those who enjoy fine foods or a glass
of vino there is a broad selection of nearby
restaurants and nightlife venues, as well as a
selection of conveniences closer to home.
Residents have access to an onsite indoor
swimming pool, gym, coffee shop, health bar, a
hair and beauty salon and a laundromat.
The site also offers residents with conve-
niently-located parking spaces on the same
level as their apartments and park-like gardens
and an eco-friendly inner courtyard.
Urban Park has easy access to the N2 and
M4 travel routes, while direct access to the N2
motorway looks likely to be enhanced by the in-
troduction of a new off-ramp which will provide
convenient access to and from the site.
Each unit within Urban Park comes with
the option of being fully furnished through a
turn-key interiors package provided by Union 3,
allowing each buyer the opportunity to let their
84 SECTION � Title
85JANUARY 2012 � The African Business Journal
unit to potential holiday makers or longer-term
corporate clients.
The rental pool will be arranged and man-
aged by a third party who will be able to assist in
the advertising and client liaison process.
Residential apartments come with quality
porcelain tiles and external aluminium doors and
windows, as well as fully-fitted kitchens complete
with granite tops, built-in cupboards, sanitary
ware, and an oven, hob and extractor.
Each apartment comes with a range of
communication incentives, including permanent
prepaid broadband internet access, a full
intercom system that allows free calls between
security and residents, reduced external call
rates via a pre-paid system, and cabled and
ready-for-DSTV connections.
With its bold and innovative design, Urban
Park is bringing to the market a product for both
end users and investors that rivals some of the
most sought after mixed-use developments in
South Africa. TAB
86 MINING � African Minerals
irOn MAiDenTonkolili mine opens for business, as african Minerals ltd. make a big impression on the mining landscape
87JANUARY 2012 � The African Business Journal
irOn MAiDenTonkolili mine opens for business, as african Minerals ltd. make a big impression on the mining landscape 086
Mining
88 MINING � African Minerals
Just 14 months from receiving all mining licences and environmental permits for its 12.8 billion tonne Tonkolili iron ore project in Sierra leone, london listed african Minerals ltd. (lon: aMI) (“aMl”) has made its first 40,000 tonne trial shipment to China. This constitutes the first iron ore shipment from Sierra leone for more than three decades and aMl expects to soon become West africa’s largest iron ore exporter.
89JANUARY 2012 � The African Business Journal
90 MINING � African Minerals
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MIRABAUD SECURITIES LLP 33 GROSVENOR PLACE, LONDON SW1X 7HY
Mirabaud today is an internationally active group providing financial services geared to clients who seek personalised relationships, high-quality services and maximum performance. The group has its roots in one of Switzerland’s oldest banking establishments.
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A fast-growing independent firm, Mirabaud has tripled its assets under management in the span of ten years to CHF 22 billion as of November 2011.
With nearly 600 employees, over half working internationally, Mirabaud has offices in Switzerland (Geneva, Basel and Zurich), Europe (London, Paris, Madrid, Barcelona and Luxembourg) and in the rest of the world (Montréal, Hong Kong, Dubai, Auckland and Perth).
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Mirabaud Securities LLP has highly experienced sales and research teams focused on the energy and resources sector. The equity capital markets team structures and lead manages equity and equity linked transactions. Since 2006 Mirabaud has raised over US$ 8 billion for public and private companies in these sectors utilising its global distribution networks.
91JANUARY 2012 � The African Business Journal
IN ADDITION TO TRADITIONAL MAINSTREAM BANKING,
MIRABAUD BROADENS ITS HORIZON BY
OFFERING PRIVATE BANKING, ASSET MANAGEMENT AND
BROKERAGE SERVICES.
TO COMMIT DIFFERENTLY TO GO FURTHER www.mirabaud.com
SETTING SAIL TO N W HORIZONS
RORY SCOTT ON +44 (0) 20 7878 [email protected]
MIRABAUD SECURITIES LLP 33 GROSVENOR PLACE, LONDON SW1X 7HY
Mirabaud today is an internationally active group providing financial services geared to clients who seek personalised relationships, high-quality services and maximum performance. The group has its roots in one of Switzerland’s oldest banking establishments.
Mirabaud & Cie, banquiers privés, was founded in Geneva in 1819. Having taken on international dimensions, Mirabaud now operates on four continents, providing its international client base with customised financial and advisory services in three core areas : Private Banking (portfolio management, investment advisory services and services for independent fund managers), Asset Management (institutional management, fund management and distribution) and Intermediation (brokerage services, corporate finance and debt capital management).
A fast-growing independent firm, Mirabaud has tripled its assets under management in the span of ten years to CHF 22 billion as of November 2011.
With nearly 600 employees, over half working internationally, Mirabaud has offices in Switzerland (Geneva, Basel and Zurich), Europe (London, Paris, Madrid, Barcelona and Luxembourg) and in the rest of the world (Montréal, Hong Kong, Dubai, Auckland and Perth).
Mirabaud Securities LLP is a global institutional brokingbusiness providing research and strategy, execution, equity capital markets, corporate advisory and broking across 35 markets worldwide.
Mirabaud Securities LLP has highly experienced sales and research teams focused on the energy and resources sector. The equity capital markets team structures and lead manages equity and equity linked transactions. Since 2006 Mirabaud has raised over US$ 8 billion for public and private companies in these sectors utilising its global distribution networks.
92 MINING � African Minerals
THe TriAl sHiPMenT utilised the integrated mine,
rail and port infrastructure built by the company
and will be tested by Shandong Iron and Steel
Group CO. Ltd. (“Shandong”) prior to the closing of
their US$1.5 billion investment in the Tonkolili by
the year-end. AML’s corporate development and in-
vestor relations head Mike Jones says it is only “the
end of the beginning” for this world-class project.
“When we embarked on the major construc-
tion stage of this project in late 2010, we said
we’d be in production in Q4 2011, and here we
are,” he affirms.
“The Tonkolili mine itself is a wonderful long
life asset that can support pretty much any level
of production you wish to throw at it and it’s go-
ing to be around for more than 60 years. Taking it
to 20 million tonnes isn’t an issue, and as we go
to Phase II and Phase III we’ll be looking at mul-
tiples of what that capacity is.”
AML’s ability to fast-track the development of
the mine and infrastructure promises to transform
the Sierra Leonean mining industry and bring
very significant benefits to the country. Subject to
variables such as iron ore pricing, the ramp up of
production and the timing of the development of
Phase II, payments to the government by AML in
taxes and royalties could total more than $1 billion
dollars over the next few years.
93JANUARY 2012 � The African Business Journal
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94 MINING � African Minerals
The road & rail aheadWhile news of the first shipment was well re-
ceived by the market, many investors are fo-
cussed on the growing scale of Phase I which
has now been expanded to 20 million tonnes per
annum. Production for 2012 has also been signif-
icantly increased to 15 million tonnes per annum
from 12 million tonnes per annum. Mike Jones
however stresses the importance of focusing on
the work ahead at the Tonkolili mine and its 200
kilometres of associated rail and port infrastruc-
ture, rather than dwelling on recent successes.
“The current capacity of the infrastructure and
mine as a holistic process is 16.2 million tonnes.
That is predicated on a certain production capacity
at the mine, a certain export capacity at the port and
the various transport arrangements,” he explains.
“We are building mining capacity to 20 mil-
lion tonnes and through the course of 2012 we’d
expect to produce 15 million tonnes, and export
that amount through the current configuration of
the existing infrastructure.”
Final port and rail commissioning will take
place by the end of the year. The route is covered
by a 99-year exclusive license signed with the
government of Sierra Leone in 2009 which in-
cludes the transport corridor, the Pepel port and
planned Phase II port which will be built at Tagrin
95JANUARY 2012 � The African Business Journal
96 MINING � African Minerals
Point. The port facilities, which include stockyards
with a one million tonne capacity, are already capa-
ble of supporting exports of up to 20 million tonnes
a year subject to minor infrastructure modifications.
Regarding the rail, Jones says, AML has various op-
tions to consider in devising the ideal setup for that
20 million tonne annual target.
“At the moment we’re in the process of final
commissioning of the rail,” he explains.
“It’s open from mine to port and is taking
traffic, but post-commissioning you still need to
finalise such things as the rail alignments and
ballasting, in a process called de-stressing, and
do additional works where necessary; akin to
moving into a house with the decorators still in.”
Decisions on expanding the rail capacity to
accommodate the 20 million tonnes per annum
production level will be made shortly and funded
through a mix of vendor financing, for equipment
including locos and wagons, and internal cashflow.
Taking Tonkolili to the topSince discovering the project in 2008, AML has
been (and remains) fully focused on developing
Tonkolili as a major iron ore mine. The company
has progressively increased the size of the de-
posit from 4.7 billion tonnes in early 2009, to 5.1
billion tonnes and up to 12.8 billion tonnes in
97JANUARY 2012 � The African Business Journal
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SDV was awarded part of the logistics contract for the ECF Pepel Phase for African Minerals in Sierra Leone. This phase entailed the construction of a railway line from Pepel to Tonkolili Mine site, upgrade of Pepel port and other marine work. The first shipments began in March 2010 and we are still continuing to supply logistics support to African Minerals. SDV South Africa has successfully managed the transport logistics of approximately 92,000cbm of cargo over numerous charter vessels loading out of Richards Bay port. This included most recently the successful shipment of 6 x Locomotives to Freetown, each weighing in excess of 80 Tons.
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98 MINING � African Minerals
Dawnus International Ltd are proud to be working with African Minerals Ltd in Sierra Leone.
Dawnus are currently working on:
• Refurbishment of 77km of existing railway and over 85km of new rail.
• Quarrying operations at Rofanye Quarry, Port Loko District, and Markarie Quarry, Makeni District
• Earthwork and civil elements for the iron ore stockyard and ship loading facility at Pepel
• Infrastructure and building works at Tonkolili Iron Mine
All works are being carried out in line with a strict environmental and social management plan. Dawnus currently employ over 1,200 Sierra Leone nationals on these projects.
For further information, please contact [email protected]
www.dawnus.co.uk
New process water weir – Tonkolili
Multi-plate culvert assembly – New rail
2010. Innovatively, AML fast tracked the develop-
ment of the project by raising capital and begin-
ning construction ahead of the final resource
estimate. This enabled the team to bring the proj-
ect into production as soon as possible in order
to benefit from the high iron ore price.
“Other companies might have waited until
they got a resource and possibly a reserve on
it before doing the financing and construction.
We did it the other way round; that’s one of the
reasons why we have managed to build this inte-
grated mine, rail and port in such a short period
of time,” Jones explains.
But fast doesn’t mean finished when it comes
99JANUARY 2012 � The African Business Journal
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to developing this world-class asset to its full
potential. With commissioning of a wet process
facility due to take place in the first quarter of 2012
to lift production to 15 million tonnes per annum
and ramping up to full capacity in the second
quarter, work is under way to increase capacity
to 20 million tonnes per annum. The company
has now begun the construction of an additional
five million tonne per annum expansion for the
production of an AI32 (‘All-In 32’) hematite product
to be commissioned in Q4 2011.
“The wet process facility is a major plant with
15 million tonnes per year head-feed,” Jones says.
“It creates very closely screened lump and
100 MINING � African Minerals
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101JANUARY 2012 � The African Business Journal
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fine product, and has high pressure washes in-
corporated into the system essentially giving you
a cleaner and, incongruously, drier product.
“There’s a possibility of slightly improving the
quality of the iron ore and that’s something we’re
checking out now.”
The AI32 haematite product, he says, pres-
ents a low cost capital exercise with very mean-
ingful revenues. Would-be buyers are those with
their own screening facilities and it looks to be
an attractive option for many.
“For us Tonkolili has always been about just
getting in and getting on with it,” Jones says.
The same applies to securing the financial
backing for future development. Whether raising
more than $1 billion dollars by December last year,
completing the $90 million Standard Bank vendor
financing, and the $100m subordinated standby
facility announced on the commencement of ship-
ment, or moving swiftly towards closing on Shan-
dong’s $1.5 billion planned investment, AML’s track
record in rapid project execution is growing.
A gem for the country & companyWith additional production capacity, AML re-
mains well on course to reach 15 million tonnes
per annum export targeted for the year ahead.
Expanding its current infrastructure capacity of
102 MINING � African Minerals
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16.2 million tonnes per annum will necessitate
some further construction works during 2012,
and achieving that all-important Phase I target of
20 million tonnes per annum for 2013 will be a
key deliverable, and pave the way for the future
expansions into Phases II and III.
“The key milestones in the coming months
are the receipt of NDRC [National Development
and Reform Commission] approval for the Shan-
dong transaction, at the end of the year, and the
flow of funds from that, the commissioning of
the Phase One wet plant in Q1 next year, and the
subsequent ramping up to full capacity. They’re
all operationally based and we’re focused on
103JANUARY 2012 � The African Business Journal
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making sure that they happen,” Jones states.
“This is not the end of this project. It’s the
end of the beginning.”
It takes a team of highly skilled, experienced
and motivated professionals to execute a project
like Tonkolili as swiftly, comprehensively and in
so controlled a manner as AML. Navigating devel-
opment of the right resource tonnage, logistics
and export scenario is, of course, a must for any
mine. But in AML’s case, Tonkolili is an elephant
with game-changing potential for both Sierra
Leone and the company. TAB
WWW.AfricAn-MinerAls.cOM
ABOuT AMl
• African Minerals Ltd. has been
active in Sierra Leone since 1996.
• The company was admitted to
London’s AIM listing upon the
February 2005 raising of £20 million.
• The Tonkolili magnetite resource
was discovered in 2008, after which
more than $1.1 billion was raised
between 2010 and early 2011 to
fully fund its Phase I development
of the project, which recently went
into production as planned in Q4
2011.
• The additional five million tonnes
per annum (mtpa) expansion for
the production of a A132 hematite
product was commissioned on track
in Q4 2011.
• In 2012, AML will commission a
15 million tonnes per annum wet
process facility at Tonkolili during Q1,
thereafter ramping up to full capacity
in Q2.
• “With a full year production from
both the 15 mtpa wet plant and
this additional 5mtpa AI32 plant,
annual Phase 1 direct shipping ore
production from 2013 and beyond is
now scheduled to be 20 mtpa,” the
company states.
104 MINING � Sahara Mining
104
105JANUARY 2012 � The African Business Journal
THe sTeel DeAlSahara Mining introduces new mill in Mali
Mining
106 MINING � Sahara Mining
107JANUARY 2012 � The African Business Journal
news that Sahara Mining S.a. will mastermind a uS$300 million fully integrated steel mill at its high grade iron ore operations in Mali spells big news for the country and a kick-start to its future as a premier multi-commodity mining destination
108 MINING � Sahara Mining
like neigHBOuring gOlD haven Ghana, Mali’s
surge in yellow metal mining rages on. All man-
ner of surveys have followed Thomson Reuters
GFMS and earmarked the country as Africa’s
third largest gold producing nation, but in doing
so reports also note that there is a wealth of oth-
er underexplored resources ripe for extraction,
including base metal market darling, iron ore.
The story of Sahara Mining SA (“Sahara”)—
the West Africa-focused iron ore explorer/
producer operating a high grade Malian hae-
matite mine—encapsulates Mali’s bright future
in multi-commodity markets. In September, the
company announced that it will imminently build
a US$300 million fully integrated steel mill: The
first of its kind for the region offering 300 million
tons per annum capacity, a new-build 70 mega-
watt power plant, and generating around 5,000
jobs once operations commence by April, 2013.
“We’re in the process of acquiring land, and
as soon as it’s done—maybe next month—we’ll
commence construction,” says Indian business
entrepreneur Sandeep Garg, Sahara’s founder
and CMD who also heads wholly owned subsid-
iary Sandeep Energy and Steel.
“It’s a historic project for the West African
region. Its success and sustained production
will send a message to the entire world that this
109JANUARY 2012 � The African Business Journal
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110 MINING � Sahara Mining
region is coming along very well and investors
everywhere ought to watch it closely.”
Praised by Malian Mines Minister Amadou
Cisse, and on track to commence construction by
the year-end, Sahara’s steel mill will offer mas-
sive proportions for the nation’s future mining
industry. The company aims to become a major
player in West African iron ore and promises to
better the communities it enters along the way.
Blue sky in Mali Starting life by sourcing scrap metal for Indian
and Chinese markets, Sahara quickly established
a firm foothold in Mali, along with other countries
such as Gambia and Senegal. It didn’t take long
for the group to spot the benefits behind obtain-
ing their own mining licenses and gathering good
tenements, which culminated in February, 2010,
with Sahara picking up the mine license for its
2,107 square metre Tienfala iron ore project
(now in operation) in the Koulikoro region, 20
kilometres north-north-east of the capital, Ba-
mako. Tienfala is now home to Indian standard
reserves of 92.13 million tons, haematite of 64
per cent (going up to 67 per cent) and good basis
for steel making due to phosphorous, alumina
and silica levels.
“Of the total 2,107 square kilometre area, we
SANDEEP GARG – FOUNDER AND CMD OF SAHARA MINING SA
111JANUARY 2012 � The African Business Journal
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have done prospecting for around 10 per cent—
200 square kilometres—and on that we’re basing
our reserves estimate. From that we have also
completed an aeromagnetic survey which was
done by a South African company. The results are
incoming and we hope that they will go beyond
one billion tons,” Garg explains.
“For this current year we’re producing around
50,000 tons per month, or 6.6 million tons per
annum, and we plan to ramp that up to 500,000
tons per month in the next five years.”
Figures from Tienfala continue to deliver
good news for all concerned (the Government of
Mali has a 20 per cent stake in Sahara). A long-
term, three-year stock mechanism contract with
Chinese group, Continental Minerals (owned
by Jinchuan Group Ltd) is in place. Australian-
headquartered mining consultancy Runge has
begun working on the JORC report for the project.
Results from the aeromagnetic survey will soon
be returned, and first construction work on the
highly anticipated steel mill is mere weeks away.
Right company, right projects, right ethosWhile the steel mill is, without doubt, a major
and much-needed project for Mali, Sahara’s
existing set-up at its Tienfala operations already
SANDEEP GARG – FOUNDER AND CMD OF SAHARA MINING SA
112 MINING � Sahara Mining
113JANUARY 2012 � The African Business Journal
offers a well-positioned base for its construction.
For example, the company owns an extensive
truck fleet, used for transporting iron ore by road
(a highway runs right along the mine’s entrance)
and the return leg of the vehicle’s passage to
port presents Sahara with ideal options for bring-
ing in the necessary coal for the future plant.
“We have a company from India named Pre-
dominant Engineers with whom we’ve signed a
contract for the project,” Garg details.
“They’ll provide the steel mill for us on a fully turnkey basis. They will then install and commission it, and run it for six months before handing it over to us.”
The planned power plant is also taken care
of, and will consist of two 35 megawatt turbines
from Japan, to generate the 60 megawatts of
power required for the steel mill.
“The surplus 10 megawatts power, we will
sell,” Garg adds.
“As ever, our top priority is the Government of
Mali, and with this project we foresee very good
impacts for the country. Lastly, in terms of em-
ployment which is also important, we’ll generate
approximately 5,000 jobs.”
Add in Sahara’s other Malian mining license,
Dogoro (50 kilometres south-west from Bamako)
and its applications for copper and other iron ore
ground, and it becomes clear that in this ambi-
tious new producer, Mali has a real gem.
“We’ll definitely be looking forward to add-
ing mining properties to our portfolio,” Garg
confirms.
“The long-term goal is to export more than
one million tonnes of iron ore per month.”
Tienfala promises to deliver the resources,
the markets continue to support overwhelming
demand, and Sahara has the management team
and country commitment to bring this vital proj-
ect to completion. The steel mill, as Garg says,
will be a historic project for the West African
region. It will also prove a key step in Sahara’s
quest to become a driving force in West African
resources. TAB
sAHArAMining.cOM
THe Business Of BlAsTingeire cOnTrAcTOrs
114
THe Business Of BlAsTing
Mining
116 MINING � eire Contractors
117JANUARY 2012 � The African Business Journal
With an Irish heritage and in its role as one of Durban’s leading building contractors, eire Contractors has played a significant role in some of southern africa’s major construction and infrastructure projects.
118 MINING � eire Contractors
DurBAn-BAseD Drilling AnD blasting special-
ists Eire Contractors was established by current
managing director John Moffatt in 1988.
Starting with just three track rigs leased
from Ingersol Rand, the company has grown
to become one of KwaZulu-Natal’s most suc-
cessful specialist firms, demonstrating its skills
across a selection of Africa countries, includ-
ing Sierra Leone, Zambia, Swaziland, Namibia,
Botswana and Mozambique.
“I was working for another company doing
something similar and decided that I wanted to
start out on my own,” says Moffett, who notes
that at that time the markets were neither a
good nor a bad environment in which to build a
business from scratch.
The company has grown and today has 26
hydraulic rigs to its name having moved with the
times and away from obsolete track rigs.
The firm also has one of the largest plant
holdings of hydraulic rigs across Southern Af-
rica and is capable of handling both large bulk
works as well as intricate jobs.
Irish at heartEire Contractor’s unique name is derived from
Moffett’s Irish heritage.
“My father came to South Africa from Ireland
NIGEL DAM - EMERGENCY SPILLWAY
119JANUARY 2012 � The African Business Journal
EMULSION TRUCK
120 MINING � eire Contractors
121JANUARY 2012 � The African Business Journal
in the late 1940s, so when we were established
the business we were kicking around for names,
and we asked ourselves why not name it after
Ireland?” he explains.
With its fleet of lowbeds and explosive
trucks, the company is currently working on
two three-year projects north of the border in
Botswana and Zambia, and was also the first
South African firm to employ full-time surveyors
to ensure quality control so to provide better
customer service.
Eire Contractors has worked on a range of
projects since its inception in the late 1980s,
which include construction projects such as
Bedford Dam, Maguga Dam and Berg River, as
well as a range of road and rail projects such as
the construction of the N2 road.
Alongside projects focused on erecting vari-
ous structures and infrastructure projects, the
firm has also destroyed a few too, with major de-
molition contracts coming in the form of a range
of bridges and site-levelling projects.
It has benefited from the recent resources
boom and has been awarded a broad range of
contracts for platinum, manganese, diamond,
silica, coal and gold mines at locations across
both Southern and Western Africa.
“In the last 10 years we’ve really gone over
the border in a big way,” remarks Moffett.
“Our most successful sector these days is
mining and quarrying, as there is not as much
construction work around.
“Logistics are the biggest problem when
you work abroad,” he notes. “Trying to get the
right parts and equipment to the right place at
the right time can prove difficult, as can getting
people in and out, but the actual operations are
very similar to what we do anywhere else.
“We’ve actually bought a couple of trucks to
run products or spares of items up into Zambia
and, where we were previously relying on other
road haulers, we’re now hauling it up ourselves,
so we can try and determine the time a bit
more accurately.”
Despite working in tough conditions abroad,
Eire Contractors has continuing to perform strongly
in its home market of Durban where it is currently
working at several quarries around the town.
Strong valuesEire Construction has a strong set of company val-
ues in place which it has published on its website.
“We’re trying to carry on working for the
people we are already working for, and if you
haven’t got values in place then you’re not going
to carry on getting the jobs,” says Moffett. “You
also have to look after the people that are actu-
ally working for you.”
122 MINING � eire Contractors
123JANUARY 2012 � The African Business Journal
Moffett says that with the market tighter than
usual it has remained fairly competitive with the
firm finding it tough to do jobs at a price on which
you can still make money on.
“It is sometimes difficult, but you’ve still got
to do the job the right way — environmentally and
also in respect to how you work with people,” he
remarks. “Even in those places where corruption
or similar things rear their head, which you don’t
want to get involved in, it can take a bit longer
to try and sort it out in the proper way — but we
always do.”
Staff loyaltyEire Contractors employs 350 people across all
markets in which it is operational, and has teams
of mechanics to go around and fix faulty machin-
ery and trucks.
“We try to give our staff opportunities and
try to let them do things on their own by guiding
rather than dictating to them,” Moffett says of
his own managing philosophy.
“And most of our managers and operators
are people we’ve trained up ourselves,” he adds.
“But behind the company is a team of peo-
ple, many of whom have been with us for a long
time,” he notes. “We’ve been in business for 23
years and some of the guys have been with us
that whole length of time, and we’ve even had
four or five retiree’s that have been with the com-
pany for 20-odd years; so there have been a lot
of people that have stuck with us.”
With loyal and enthusiastic staff on board,
and a strong reputation in place, Eire Contractors
looks likely to remain at the top of its trade for
some years to come.
“The next couple of years are going to be
about consolidation, as I think the market’s go-
ing to be a bit rough, but we’ll still be growing
and we will work to do what we do even bet-
ter,” says Moffett. “Rather than purely going for
growth, we need to make sure that we develop
the business properly, so that is really what our
target is.”
With realistic targets in place, modern equip-
ment in its fleets, a loyal customer base and tal-
ented staff, the future looks like it will be a blast
for Eire Contractors. TAB
THe ZAMBiAn BrAnD
124lendor& Burton
Mining
126 MINING � lendor & Burton
as a leading name in Zambia’s construction industry, lendor & Burton has reinvented itself and is now bringing a wealth of local knowledge, skills and passion to internationally-funded projects across the Southern african republic.
127JANUARY 2012 � The African Business Journal
128 MINING � lendor & Burton
fAMily-OWneD cOnsTrucTiOn firM Lendor &
Burton has committed itself to playing a leading
role in the elevation of Zambian industry.
Traditionally involved in plant and crane hire,
earth moving, mobile crushing and mining and
civil contracting, Lendor & Burton has more re-
cently become associated with the Kapiri Group
of companies, which focus on identifying new
projects, prospecting new mining areas, mining
and processing of minerals.
While today it forms a major part of the wider
Lendor Group of Companies, the history of Lend-
or & Burton dates back to the early 1950s, when
the father of current managing director Mark
Burton established firm.
“My father started the company in around
1950 in Kenya when it was still known as East
Africa,” says Burton. “He started off by developing
estates and had moved into rail line construction
in Uganda, Kenya and Tanzania by the mid-1950s.
“We came to be in Zambia with the building
of Kariba Dam on which my father was one of
the contractors. He was actually sub-contracted
by the main contractor and did a lot of the civils
work and river dredging, and he ended up staying
in the region.”
The business would soon dip into road con-
struction and civils projects in Zambia, Botswana,
Congo and what was Southern Rhodesia during
a time when the only mining work the firm was
involved in was over-burden removal in Zambia.
“My father actually founded, financed and
opened up Zambia’s coal deposits and did the
same in South Africa as well in the 60s and
right up to the mid-70s, before moving back
north into the central Africa region,” says Bur-
ton. “So we have quite a history in central and
southern Africa, and he was one of the bigger
contractors of his time.
“He was a construction pioneer and he was a
tough old man who took on jobs that many con-
tractors wouldn’t in his time,” he adds.
Tackling the challengeToday, the company specialises in remote logis-
tics and has all the equipment and the work-
force necessary to take on challenging work in
difficult condition.
“The staff we have are acquainted with working out in the bush, and basically aren’t afraid to sleep under a tree,” remarks Burton.
As Burton’s father built up his Zambian busi-
ness the company was forced to overcome the
economic problems of the day, while playing an
integral role in the country’s economy.
129JANUARY 2012 � The African Business Journal
130 MINING � lendor & Burton
“There was a period where Zambia basically
bottomed out and the president, Kenneth Kaun-
da, asked my father to enter agriculture in the
early 1980s,” Burton notes.
Lendor & Burton then diversified into the
agricultural sector undertaking a lot of land
development, land clearing and irrigation instal-
lation schemes.
“There was a period of about 10 or 15 years
where the company focused on agricultural
development and then about four years ago, just
before my father passed away, with his permission
I started up Lendor & Burton again,” says Burton.
“It installed new faith into the company and we’ve
been slowly building things up since that tough
time, refocusing its remit back onto civil works.”
Bringing back a Zambian iconReestablishing the company during a time of glob-
al financial crisis was no easy feat, says Burton.
“There was demand, but we started again
at a time where the recession hit, so a lot of
131JANUARY 2012 � The African Business Journal
the work had vaporised,” he remarks. “But
now, with the copper price is growing, there are
a lot of opportunities which we’re at the fore-
front of in Zambia.”
Burton says that one of the company’s key
selling points is its “proudly Zambian” heritage,
which has enabled it to get to the forefront of the
country’s growing construction sector.
“It is a Zambian company, and due to my father’s efforts, we are an established brand throughout the country,” he states.
With opportunities in Zambia currently strong
in the mining sector, Lendor & Burton has been
marketing itself as a major competitor to the
many foreign construction companies entering
the Zambian market.
“We want to establish ourselves here as a
company that’s brings integrity and, of course, one
that delivers quality service,” notes Burton. “We’re
slowly getting our feet on the ground and our foot
in the door, so to speak, with some of the big
names already established in the country.”
Moving forward the company is planning
to establish itself in Zambia’s North-Western
Province where First Quantum and Barrick Gold
are operating.
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132 MINING � lendor & Burton
“There are massive developments happening
there at the moment and we’re going to get our
teeth into work in that region,” remarks Burton.
“We’ve also tendered for work around Lusaka, but
our focus for the future will be the North-Western
Province, where we will target private sector work,
predominantly in the mining industry.”
Promoting domestic abilitiesLendor & Burton has maintained a forward look-
ing stance and, in spite of the tough market
conditions of the past few years leading the firm
away from contracting and towards plant hire, it
has recently been approved the finance required
to recapitalise its fleet.
“The tide has turned and we are now gear-
ing ourselves up again for taking on contractual
work,” says Burton. “We’ve been approved some
finance so we’ve recently acquired a new fleet of
equipment and will be able to offer high availabil-
ity and tender for bigger jobs.”
“A lot of our competition comes from South
Africa, and they are often more established and
have much greater capacity, so it can be tough,”
133JANUARY 2012 � The African Business Journal
he notes. “But what sets us apart from them is
that we’re a Zambian company and we’re trying
to establish ourselves on an international level in
terms of the quality of our work.”
The firm currently employs 85 members of
staff, ranging from semi-skilled to skilled indi-
viduals, as well as four junior managers and one
senior manager.
Staying true to its roots, 80 per cent of the
company’s management team derives from Zam-
bia, with 100 per cent of the junior side of the
business domestically sourced.
“Zambia has a bit of a shortage of skilled
labour and skilled staff, so as we grow we will
be forced to source externally, but we intend on
trying to keep the company as Zambian as pos-
sible,” says Burton.
With a strong track record and successful re-
lationships with its previous employers in place,
Lendor & Burton has been busy reinventing
itself, as it once again becomes synonymous with
the advancement of Zambian economy. TAB
lenDOrBurTOn.cOM
scene sTeelerTshipi Manganese Mining
134
scene sTeelerTshipi Manganese Mining
Mining
134
136 MINING � Tshipi Manganese Mining
The exploration and planning stages for any up and coming mining operation is an exciting time. When those early efforts start to pay dividends it makes those tricky decisions, investments and ventures worthwhile, as Tshipi Manganese Mining is just beginning to discover.
137JANUARY 2012 � The African Business Journal
138 MINING � Tshipi Manganese Mining
TO THe unTrAineD eye ‘Tshipi’ looks like a fairly
obscure name, but for those with a penchant for
local Tswana dialect, it’s a title that makes the
company’s intentions very clear. ‘Beautiful steel’
by name, ‘beautiful steel’ by nature, you might say.
The seed of an ideaIn 2003 legislation was eased and it was again pos-
sible to start venturing into manganese production.
With a combination of enthusiastic finan-
ciers and a workforce with a wealth of mining
nous and experience, Tshipi was created in
2007, after the amalgamation of two major in-
vestment branches. With a wide range of skills
and ideas the team has begun to galvanise its
mutual desire to source quality manganese,
while passionately putting this extraordinary
metal back on the map.
Currently it has two ventures—one prospect-
ing tenement, which is located in the north part
of the Kalahari manganese field, and the Borwa
mine, which is in the southern part of the base.
139JANUARY 2012 � The African Business Journal
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140 MINING � Tshipi Manganese Mining
The development stage is well under way and
Director Finn Behnken has been very encour-
aged by the company’s steady progress: “We
commenced the project by developing the mines,
while the Tshipi board began putting the mining
permit into production,” he says. “We appointed
a project manager for the team and approved the
capital expenditure for the development of the
mine, which is now in the stages of being con-
structed as an open pit mine.”
The company is wisely taking a strategic
approach in order to understand the geological
sequences, while cautiously removing concrete,
with a view to eventually mining off the rich sup-
ply of manganese ore.
“Once we have built our crushing and screen-
ing plant, we will then be able to load mate-
rial onto the railway loop, which we’re halfway
through constructing and, at some point in the
next 18 months, the Tshipi Borwa will be brought
into production,” explains Behnken.
Even when the economic meltdown came
along 2008 the company refused to blink and has
remained completely focussed on its vision to be-
come a solvent and reliable manganese supplier.
Welcoming the machinesThe main contract was signed recently and the
mining contractor has already moved in with all
manner of brutal yellow equipment arriving at
141JANUARY 2012 � The African Business Journal
142 MINING � Tshipi Manganese Mining
the site. Thanks to the detailed planning when
the company began, progress has been rapid and
the site is being transformed on a daily basis.
Alongside the cutting edge railway facility—
which will form such a vital transport link to other
areas—there will also be a rapid loading terminal.
Once these structures have been completed the
company will host a smooth, efficient and, above
all, modern mining operation, which could easily
be performing for several decades. It’s safe to
say the company feels it’s on the right tracks.
Already Tshipi has established some other
great partnerships, which will develop well into
the future. Posco Mining has secured the rights
to acquire up to 20 per cent of Tshipi’s overall
production and OM Holdings has the right to mar-
ket a portion of the manganese ore. Meanwhile
the remainder of the ore, which is not accounted
for, is subject to finalisation, and there are sure
to be many interested parties.
These early deals have shown that a bit of
commitment, adventurousness and risk can be
very worthwhile, and Behnken is delighted that
the early potential of the company is coming
nicely to fruition.
“We’re very excited and our project’s is run-
ning completely according to plan, and we’ve got
a lot of activity on site,” he says. “It’s been a fas-
cinating journey and there will be more incredible
Brink & Health Civil
143JANUARY 2012 � The African Business Journal
milestones as the project develops and we start
to build Tshipi’s reputation.”
People powerThe company currently has 124 employees; al-
though once the construction projects have been
completed a further 375 jobs will be created, with
the possibility of more over the next few years.
Makgosi Nkoana, the company’s onsite
general manager has been happy with the cama-
raderie between the Tshipi’s team, especially at a
time when co-operation is so vital.
“At the start of any mining operation there
are always some challenges, but one of the rea-
sons we come to work is to solve them; working
together to create the best possible operation,”
he said. “The teams are working really well and
the input of these individuals is vital as we head
towards the production phases.”
For Tshipi the last few years have been about
laying foundations, strategically placing step-
ping stones, forming partnerships and getting a
foothold, now it’s looking forward to adding some
steel and lots of it.
Indeed, sometimes being the new kid on the
block, really does allow you to shine. TAB
WWW.TsHiPi.cO.ZA
creATing THe rigHT envirOnMenT
144
creATing THe rigHT envirOnMenT
Providing its services to a wide selection of resource players across and beyond the african continent is no mean feat, but is a challenge South african consultancy firm Digby Wells environmental is tackling with aplomb.
Mining
146 MINING � Digby Wells
sOuTH AfricAn-BAseD cOnsulTAnTs Digby Wells
Environmental came into existence in the early
1990s, during a time when the mining sector and
a plethora of other industries were adapting to
changing economic and social conditions.
Today, its international expertise in delivering
environmental and social solutions for its clients
from the mineral resources and mining industry,
has led to it becoming one of the country’s most
sort-after specialist consultancies.
Despite having its eyes focused primarily on
the African market, Digby Wells has extensive
experience from counties in markets as diverse as
the Americas, Europe, the CIS countries and Asia.
“We’ve got 150 active projects at any one
point in time, which you can broadly categorise
into two groups,” explains director Andries Wilke.
“The first covers our domestic clients who account
for roughly half our turnover, and the other is for
international clients.
“If you look at our competition in South Africa,
and probably in West Africa as well, we are one of
the few companies that specialises in mining.
“Being a purely environmental company
gives us a different approach to the studies we
do and the approached we take with that, and
we believe that’s a competitive advantage as
well,” he remarks.
147JANUARY 2012 � The African Business Journal
Formed from a giantThe firm was established when a number of large
South African mining companies were unbundled.
“In the early 1990s, Rand Mines was one
of the three largest mining houses in the world,
but when it was unbundled its environmental
department had an option either to go with
one of the divisions that were being sold off to
various parties, merged into another engineering
companies, or go out on its own,” Wilke explains.
“Digby Wells was then formed by former
department employees and as it came out of
the mining industry it was natural that its first
clientele was predominantly mining companies.”
The company grew slowly in the early stag-
es, but in the past five years has grown much
more quickly.
“We’ve expanded from a workforce of about
12 people 10 years ago to about 80 staff mem-
bers currently and the reason for this expansion
has mainly been the due to the fact we service our
clients with the specialist capabilities required for
inter-growth environmental and social studies,”
says Wilke.
In the domestic market the firm’s main focus
is on coal, but it also works on a range of other
commodities such as phosphate.
“We actively pursue certain clients, but the
bulk of our current new clients coming in are
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148 MINING � Digby Wells
coming either through referrals, or through our
key clients or key contacts we have from previ-
ous companies who recommend us for work with
those clients as such,” Wilke notes.
Crossing the border Outside of the African continent the company is
currently involved with projects in Armenia and
Kazakhstan and has recently carried out work on
Chile’s copper fields.
“Our company’s main focus is squarely on Af-
rica, but if we get requests for work to be done in
other parts of the world we’d definitely do that,”
says Wilke. “We’ve actually covered most of the
continents, although we haven’t done any active
work in Australia yet, nor Antarctica.”
Back on its home continent Digby Wells
has worked extensively in West Africa’s gold
mining sector.
“We also work on other commodity projects
across Africa and are currently active in iron
ore in Guinea and Nigeria, as well as diamond
work in Sierra Leone and gold in the Ivory
Coast,” notes Wilke.
The firm is building a presence in Mali and
has entered into a joint venture partnership in
Senegal, as it looks to expand further into Fran-
cophone West Africa.
149JANUARY 2012 � The African Business Journal
“It’s an important time in West Africa and
we’re setting up offices in Ghana, which has
already been registered and has started to func-
tion,” says Wilke. “We are first and foremost a
specialist on the African continent and we’ve
probably got a strong advantage there compared
with our competitors, and we view ourselves as
having an advantage in developing economies.”
A youthful approachDespite the difficulties of working in a tough
financial climate, Wilke says Digby Wells has
found itself in a lucky position as it continues
to grow thanks to its focus on a broad range of
commodities, and its talented workforce spread
across the African continent.
“The company has grown a fair amount of ex-
perience organically, as clients require additional
services or where we’ve expanded a team by ap-
pointing specialists with experience,” he notes.
When compared to traditional consultancies
in North America and Europe, Digby Wells has in
place a relatively young, but energetic workforce,
with the median age of employees at the firm 31.
“We work hard to bring the right people in,
and we do bring in a number of postgraduate stu-
dents as interns, of whom a number stay with the
company,” says Wilke.
“Furthermore we recruit from our competitors
when the opportunity arises and a number of our
competitors in South Africa have had to reduce
staff numbers, so we used that opportunity to
actually pick up key experts in certain fields.”
With a skilled, professional and energetic
workforce in place at sites across Africa and be-
yond, and with broad commodity spread covered
by its expert, it’s no surprise that this South Afri-
can company is receiving enquiries from compa-
nies across the globe. TAB
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Mine like a starrOyMec TecHnOlOgies150
Mining
Mine like a starrOyMec TecHnOlOgies
152 MINING � roymec Technologies
153JANUARY 2012 � The African Business Journal
When a busy mining operation embarks on a project, it needs to rely on a ‘go to’ company for support, equipment, expertise and advice. During the last decade roymec Technologies have been providing all the above, while also injecting its very own brand of flair and ambition.
suPPlying eQuiPMenT fOr the mining industry is a massive respon-
sibility and one which Roymec Technologies takes very seriously. Its
approach—to use all its experience, while also embracing technological
advancements and new ideas—has helped to galvanise mining compa-
nies by improving efficiency, and transforming their overall performance.
Cutting edgeRoymec technology supplies and equipment was created 10 years ago
by a group of individuals who joined forces from a similar background.
All the founders had careers involved with equipment provision and en-
gineering excellence within the mining sector. Together they provided a
multi-skilled, diverse and experienced foundation for the new company.
Since those halcyon days at the turn of the century the company has
made a steady ascendency to the top of the profession.
On the African continent the business has established a fine
reputation, featuring prominently among some of the most notable
mining ventures in the world, such as Skorpion Zinc, Kloof Gold and
Kayelekera Uranium.
The company is primarily a liquid/solid separation outfit and there-
fore takes on any project that requires the removal of solids from solu-
tion or slurries, while also carrying out some liquid removal systems.
154 MINING � roymec Technologies
Sales Director Hoosen Essack thinks the key
to the company’s success has been the excep-
tional service delivery. “We pride ourselves on
providing equipment that works harder, faster
and smarter,” he explains. “The company has
seen a great push towards getting processes
and machinery to be more effective, and robust
enough for very remote sites—Africa is not a con-
tinent for the feint-hearted!”
As well as operating in global mining, the
company also has many interests in the mineral
processing, metallurgical, chemical processing,
water & effluent treatment, pulp & paper, hydro-
carbon processing and other industries.
Well-oiled machineEvery piece of Roymec’s kit is custom-built and
extremely detailed in accordance with each
client’s requirements. All the equipment is me-
ticulously engineered and designed to fit and
operate within specific plants. The 27 guys at the
offices in Johannesburg have created devices for
all manner of operations over the years and the
team’s precise approach has been rewarded with
a very high among its competitors.
Indeed, before constructing the gear, all pos-
sible considerations—like transportation, mate-
rials being handled and region-specific condi-
tions—are subject to analysis.
“We produce bespoke equipment that can
be moved around on the continent, getting it to
work with the minimum amount of stress, on a
site where clients don’t necessarily have highly
skilled labour and need to let the machinery take
over,” enthuses Hoosen.
Commendably, Roymec builds most of its wares
in South Africa, where skilled units tackle projects
in the Johannesburg area, before carefully testing
the testing the equipment and bringing it to the site.
When equipment arrives at the site all the
gadgets are then retested in their working environ-
ment. Once onsite and fully operational it is liter-
ally a case of ‘plug and play’ (or ‘plug and work’,
as the case maybe!). The company are then able
155JANUARY 2012 � The African Business Journal
to monitor how well the equipment is performing
and offer sound advice along the way.
Rock and rollRoymec supplies equipment to 13 different coun-
tries throughout Africa and are always looking at
other countries to help in the future.
Recently the company has been delighted
to announce the sale of 15 per cent of its
shares to Tamela, resulting in some fascinat-
ing opportunities to grow alliances in the far
east, including Asia, Malaysia and Indonesia.
Advanced discussions have also taken place
with potential partners across South America in
Peru, Chile and Argentina.
There has even been a recent visit to Rus-
sia as the company strives to extend its interna-
tional interests. “We are really enthusiastic about
extending into different areas of the world and
extending our equipment and knowledge into
those areas. It’s a very active and exciting time to
be at the company,” adds Hoosen.
During the last decade the business has
grown into a 180 million rand enterprise, and
new growth in the market is going to increase
that even further. Part of that growth involves
retaining existing while also encouraging the
development and optimising of the equipment.
The company employs a large number of Phd-
qualified graduates, all keen to make their mark
and take the company into an exciting future.
Additionally, for several years now Roymec has
enthusiastically implemented a Black Economic
Empowerment Policy to promote entrepreneurial
communities and give emerging businesses ac-
cess to mainstream business opportunities.
As an ambitious company with the right peo-
ple at the rock face, Roymec has really shown the
mining industry that it means business. Over the
years ahead, it looks forward to a whole world of
opportunities—quite literally.
WWW.rOyTecsA.cOM
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