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MANDELA MAGICSTORIES. HOPE. WACKY SHIRTS
The
AfricAn Business Journal
BusinessAurecon merges with NETGroup
politicsANC special report
company focusBetts Townsend
april 2012 Volume 3 issue 4 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 AgAin fOlks,
Welcome to the April edition of TABJ and what a
delightful instalment of our periodical it is too.
We deploy the first party popper in honour of a
man without whom this publication would prob-
ably look very different.
The person in question is—as the front cover
so eloquently suggests—Mr. Nelson Rolihlahla
Mandela. I’ll be honest, dear reader, I simply
could not hold out for another two years before
looking back on Mandela’s inauguration in
1994, so forgive me if ‘18 year anniversary
special’ sounds a little premature. I make no
apologies, however, as the assembled stories
from some of the people that lived through it,
prove to be as inspirational, fascinating and
compelling as the man himself.
Also on the billing is a continuation of the
‘secret diary of a small business’. This month Jen
battles through a load of cyber weirdness, as she
discoverers that naming a company can leave
you shouting f numbers at your keyboard.
We also have the brutally honest thoughts
of the Cape Crusader, as he looks forward to a
new era for the Springboks, while affectionately
eye-gauging a few former loved ones.
Meanwhile, a controversial look at the
ANC’s continued reign, ethics and practices is
sure to ruffle a few feathers as South Africa’s
political journey reaches a crossroads.
As usual we have got a veritable orchestra
of features from the companies making sweet
music across the continent. This month’s mel-
ody makers come from the retail, healthcare,
mining, paper, freight and property industries.
More proof that Africa is fast becoming the
most versatile and exciting business platform in
the known universe.
See you soon,
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 | johnp@tabj.co.za
Vladimir Lukic | Creative Director | vladimirl@georgemedia.ca
Chris Moore | Sr. Advertising Designer | chrism@georgemedia.ca
Margaret Oldham | Sr. Graphic Designer | margareto@georgemedia.ca
Wincy Law | Sr. Graphic Designer | wincyl@georgemedia.ca
Tanya George | Sr. Advertising Designer | tanyag@georgemedia.ca
Marc Mauricio | IT/Production Support | marcm@georgemedia.ca
Constantin Turtulea | Head of Research | constantint@tabj.co.za
Natalie Edney | Head of Sales | nataliee@tabj.co.za
Khayyam Darr | Research Director | khayyamd@tabj.co.za
Andrew Miskin | Research Director | andrewm@tabj.co.za
Hugh Braithwaite | Research Director | hughb@tabj.co.za
Dee Nazer | Research Director | deen@tabj.co.za
Guy D’Angelo | Research Director | guyd@tabj.co.za
Thomas Eros | Research Director | thomase@tabj.co.za
Michael Alexander-Jones | President | michaelaj@georgemedia.ca
Linda Neal | Chief Executive Officer | lindan@georgemedia.ca
Naveed Yusuf | Chief Information Officer | naveedy@georgemedia.ca
Gemma Parkins | Executive Assistant | gemmap@tabj.co.za
Heather MacPherson | General Accountant | heatherm@georgemedia.ca
Simon Curran | Vice-President/Publisher | simonc@irjonline.com
Contributors | Jen Smit, Nuala Gallagher, Andrew Miskin
South africa office
23 Wellington road
parktown, 2193
Johannesburg
uK office
2 Sheen road
richmond
Surrey uK TW9 1ae
GEoRGE MEDIA InC.
TABJ Team
MANDELA MAGICSTORIES. HOPE. WACKY SHIRTS
Table of cOnTenTs april 2012 | VoluMe 3 | iSSue 4
010
legenD
Business
POliTics
sPOrT
PrOPerTY
reTAil
MAnDelA MAgic Stories from the revolution 010
Muse news coming out of africa 022
THe secreT DiArY of a small business 034
Good vibrations: AurecOns JOin fOrces wiTH neTgrOuP 040
Anc uncerTAinTY 044
THe cAPe crusADer 054
BeTTs TOwnsenD Safe Betts for everyone 060
paper view: Dinu universAl PAPer & PlAsTics 070
hair raising: rAPiDOl & kinkY grOuP 080
POrT Of DurBAn Vintage port 086
DYnAMic exPress express reign 094
freigHT
060
086
MAnDelA MAgic Stories from the revolution 010
Muse news coming out of africa 022
THe secreT DiArY of a small business 034
Good vibrations: AurecOns JOin fOrces wiTH neTgrOuP 040
Anc uncerTAinTY 044
THe cAPe crusADer 054
BeTTs TOwnsenD Safe Betts for everyone 060
paper view: Dinu universAl PAPer & PlAsTics 070
hair raising: rAPiDOl & kinkY grOuP 080
POrT Of DurBAn Vintage port 086
DYnAMic exPress express reign 094
Table of cOnTenTs april 2012 | VoluMe 3 | iSSue 4
HeAlTHcAre
PrOPerTY
Mining
100BecTOn & DickinsOn in sickness and in health 100
fAirview HOsPiTAl Modern medical marvels 106
AnAPrOP PrOPerTY MAnAgeMenT land of the giants 112
reuTecH Mining on the radar 120
g&H cOnsulTing engineers Design for life 134
BellzOne Plc Metal maestros 142
sTefAnuTTi sTOcks Building bridges 154
BAOBAB resOurces Towards 500Mt iron ore & 2016 production 162
DrC gold junior MinerAl invesT inTernATiOnAl Mii aB: nearing 2013 production & adding plus-1Moz tonnage en route 176
ncOnDezi cOAl Mozambique’s next billion ton coal project producer-exporter 186
BAssAri rsOurces Towards 1Moz gold reserves & onwards to development 194
expect big things from BeAcOn Hill resOurces:The Mozambican coking & thermal coal producer & exporter 202
154186
he may be 93 but the world’s greatest living freedom fighter is still going strong—inspiring millions and defiantly wearing wacky shirts wherever he goes. a trail-blazer, force for good and custodian of the new South africa, Mandela’s legacy is now guaranteed.
John pinching talks to those who lived through the great man’s revolution of 1994. here are their stories.
12 COVER FEATURE � Mandela magic
Andrew Miskin - anthropologistAs a 17-year-old grade 11—despite growing up in what is today
known as Madiba Bay (Port Elizabeth)—the significance of Mr. Man-
dela’s release in 1994 was truly lost on me and probably most of
my peers.
It was three years after the first black scholars were permitted
to walk on the hallowed and ‘lily white’ Grey High School grounds.
I was living through momentous, hormonally-charged times, but
all that went through my politically ignorant mind, after seeing Mr.
Mandela’s friendly face and waving arms after being released,
were rather shallow thoughts: ‘Does this mean more international
sport for South Africans?’ and, ‘He seems pretty at peace for some-
one that has spent 27 years in jail. I would probably be a bit an-
noyed myself’.
We grew up on manicured sports fields and in privileged class-
rooms, where politics and the outside world were like a distant
and irrelevant drone. We were masters of our destiny and
nothing could cause us to stray from our
chosen paths.
We knew that things were changing,
and we didn’t really question it. We had
accepted the differences at our schools
(although admittedly the non-white kids
we had been rubbing shoulders with up
“i started to attach some meaning to
Madiba’s release. no longer would i
be taunted by the hypocritical finger-
pointers from over the seas. Madiba
was my president”
13APRIL 2012 � The African Business Journal
until 1994, had come from affluent families). Our parents seemed adamant that change
was the only option in order to avoid economic and political disaster, especially for a
country that had ticked along for decades in mostly undisturbed, but artificial bliss.
You hear later in life how your folks ‘nearly emigrated to Australia’ in the late seven-
ties, and the change of the early nineties brought about another wave of South African
immigrants to countries like New Zealand, England and Australia. I thought nothing of it,
and in retrospect, I am glad I did not over-analyse the situation at the time. No-one truly
knows how things would pan out after 1994, so why guess and make drastic changes in
your own environment?
What followed in South Africa was a purple patch in our economic and, most impor-
tantly, our social history. Call it the best political marketing campaign ever, but Madiba’s
words of wisdom and encouragement to ALL South Africans in those dynamic times
served a two-way purpose. Firstly, it stabilised a nation of massively diverse backgrounds,
at a time when suspicions or even revenge may have been on the cards.
Secondly, it created a blue-eyed boy out of a country that was previously the pariah of
the world. The goodness within its entire people became self-evident, climaxing when the
South African Springboks lifting the William Webb Ellis Trophy in 1995, a year after Madi-
ba’s release. The trophy ceremony was so loaded with meaning and joy, that somehow,
the miracle of the Rainbow Nation appeared to have come to fruition. For the first time,
as an 18 year old white male, I started to attach some meaning to Madiba’s release. No
longer would I be taunted by the hypocritical criticisms of Bono or other finger-pointers
from over the seas. Madiba was my president.
“our parents seemed adamant that change was the only option in order to avoid economic and political disaster, especially for a country that had ticked along for decades in artificial bliss”
14 COVER FEATURE � Mandela magic
Cheyne Foreman - surferBefore ’94 South Africa was very separated between the ‘whites’ and ‘blacks’. There were ‘white
only’ beaches; white only everything, come to think of it. Black people were cleaning the streets,
while ‘garden boys’ and maids were doing most manual labour.
For me all this was the norm, I honestly never knew it was different from the rest of the world.
I was only thirteen and clearly had a great deal to learn about multi-culture.
For thirteen years the only relationship I had was with a black lady who was our live-in maid.
For most people these individuals were like family. Then we also had a black man who was our
‘garden boy’. I’m painting a picture of an anachronistic class system, but this was not my genera-
tions fault—we were brought up like this, we never knew better.
“Black people were cleaning the streets, while ‘garden boys’ and maids were doing most manual labour. For me all this was the norm, i honestly never knew it was different from the rest of the world”
15APRIL 2012 � The African Business Journal
Then Nelson Mandela was elected and everything changed…
Suddenly everywhere felt overpopulated with people, people that I wasn’t used to;
showering naked at public beaches, running around, shouting and being anti-social.
They were people that just weren’t used to living in a civilised society. These were peo-
ple that were used to living in huts and, on reflection, they didn’t know any better. It was
like they were all were let out a cage, which unfortunately was pretty close to the truth.
Then a few years passed and people calmed down and things became manage-
able. The change was everywhere, schools, shops, beaches, work. I was young, and I
remember my friends and me embracing it—the change was good. We all played sport
together, were on the same level and happy about being together. We were young
enough to appreciate other people, regardless of their colour.
Now we were on the map and South Africa was given the right to play international
rugby, and that obviously lead us to a famous victory in the 1995 Rugby World Cup.
This was a most profound and memorable year. SA playing in such an event had been
unimaginable, so going on to win it was like a dream. The country all came together to
support one team. We had Nelson Mandela to thank for this and, obviously, a lot more.
“We all played sport together, were on the same level and happy about being together. We were young enough to appreciate other people, regardless of their colour”
16 COVER FEATURE � Mandela magic
Pieter Mulder – social commentatorThere have been a few major events in my life time that have left a strong impression on my
memory—the 1992 Olympics, Mandela’s inauguration, the death of Princess Dianna, 9/11 and
the Millennium. These events were so significant be-
cause they are shared with millions of other people
all over the world. I share the memory of Mandela’s
revolution more intimately with everyone in South
Africa, because as I left ten years ago.
Whenever I think of my upbringing in Johan-
nesburg I am amazed at the political reality of those
days. I never sensed that apartheid was happening.
Only recently I have discovered and fully realised the
propaganda in those early years of schooling. I sup-
pose you could say I lived in a kind of bubble, shel-
tered from poverty, strife and violence. I suspect that
apartheid was very much about people creating or
maintaining a bubble for themselves.
In February 1990 Nelson Mandela was released
from prison, and I was there. Well, not there exactly, but
I was 12 years old and on a school tour to Cape Town.
Darting in and out of my classmates’ hotel rooms on the
17APRIL 2012 � The African Business Journal
morning of Mandela’s release, I distinctly recall an almost delicious fear that
‘something dangerous might happen’.
When I first heard of Mandela being released I was about 10 years old and
I remember my cousins telling me that we were going to have a civil war and
that we’d better stock up supplies. I also recall watching the inauguration on TV
in 1994. It was spectacular yet no one seemed to be watching it with the same
interest as, say, a rugby match. The nearly effortless integration of new attitudes
happened so quickly. Mandela is now a veritable national treasure in a land
where he was once the unspeakable.
Looking back at South Africa now I am very saddened by the loss of infra-
structure and industry. The bad behaviour of apartheid seems to have been
replaced with bad behaviour of a new sort. It is a country spiralling out of control
desperately trying to keep basic services running, while corruption is rife.
“I suppose you could say I lived in a kind of bubble,
sheltered from poverty, strife and violence. I suspect
that apartheid was very much about people creating or
maintaining a bubble for themselves”
18 COVER FEATURE � Mandela magic
“This tall, nobel peace prize winning man put his arm around
me. no bitterness, no pretension, no arrogance. it felt like he
was my own grandfather”
19APRIL 2012 � The African Business Journal
Jen Smit – entrepreneur In April 1994 I was 16 years old and in my home town of Pretoria. I remember driving
with my family to a viewpoint towards the spectacular Union Buildings to take a look
at the preparations for the inauguration, which was to take place the following day.
Once again there was that rippling undercurrent suggesting that ‘something big was
about to happen’, but this time it was more about anticipation than fear.
When, on the big day, fighter jets with coloured smoke trails blasted low over our
family home, I sensed a new beginning. It felt good.
Then in 1999, I got to meet Nelson Mandela. He was officially opening the Na-
tional Arts Festival in Grahamstown and I was a student journalist covering the event.
I’m still not sure how we managed to sweet-talk his vigilant protector, Zelda, but when
Madiba made a press appearance—to the ‘real’ journalists—in the garden of his guest
lodge, he turned around, called over to my friend Ilda and I and said, “come, I want a
photo with you two”.
In the photo, this tall, interna-
tionally revered, Nobel Peace Prize
winning leader has his arm around
me. No bitterness, no pretension, no
arrogance, just a man who, when he
held my hand, felt like my own grand-
father.
“When, on the big day, fighter jets with coloured smoke trails blasted low over our family home, i sensed a new beginning. it felt good”
20 COVER FEATURE � Mandela magic
Nina de Winter – business womanPre-1994 my first conscious recognition of Nelson Mandela was his release from prison
in 1990, shortly after I started my first year in primary school. His face often showed up in
the news—of which I only had a slight interest—until our first democratic elections in 1994.
Then I really started to pay attention.
Thinking back to all those years ago, it was the palpable momentum of the weeks
leading up to the elections that was so unforgettable. It started with outright fear among
people, but that became glimmers of anticipation, hope and then genuine excitement at
the prospect of something new and better. A sense that we all get to contribute to this new
nation, culminated in a sense of pride about who we are, and could be in the future.
What stands out most prominently was a conversation I had with my father relating to
my history classes at school. I remember saying to him that I wished I could also be part
of shaping history, like a great inventor or explorer. He told me: “You are a part of history.
What is happening in South Africa is changing the course of history, and will always be
remembered.”
It took me some years to really understand what he was telling me.
Inseparable from all these events and the person embodying the spirit of togetherness
is unquestionably, Madiba. TAB
“i remember saying to my father that i wished i could be part of shaping history, like a great inventor or explorer. he told me: ‘You are a part of history’”
21APRIL 2012 � The African Business Journal
“Thinking back to all those years ago, it was the
palpable momentum of the weeks leading up to the
elections that was so unforgettable”
22 SECTION � Title22 NEWS IN REVIEW
Muse news coming out of africa
sA MusT flAATeen cOMPeTiTiOn
South African businesses must move quickly to
grab business opportunities in rapid growth mar-
kets across Africa, before the existing window of
opportunity narrows and they get crowded out by
overseas competition.
This is the view of Nils Flaatten, CEO of the
Western Cape Investment and Trade Promotion
Agency (Wesgro). Flaatten was speaking at the
‘Wesgro Eye on Africa: Economic Outlook, Trends
and Opportunities’ seminar.
“Many African economies are looking at growth
rates of seven per cent plus, while Europe is facing
zero to two per cent over the next few years,” he
said. “As I see it we have a three to five year window
of opportunity to grab the best business opportuni-
ties in Africa, before the rest of the world catches
on. We will face competition not only from the usual
suspects like China, India, and France, but also
from the likes of Brazil and Argentina.”
Flaatten said Wesgro was leading a number
of trade missions to countries in Africa, to open up
trade channels for local businesses. The agency
will take local companies across various sectors to
Ghana and Cote d’Ivore before the end of March,
while a number of African trade missions are
planned for later in 2012.
Flaatten said Wesgro had a team of experts
with trade information and contacts, who were
available to help local business people, and encour-
aged prospective exporters to join its Export Devel-
opment Programme, which is presented in three
phases.
23OCTOBER 2011 � The African Business Journal 23SEPTEMBER 2011 � The African Business Journal
news coming out of africa
Wesgro’s recently upgraded website is also
set up as a trade portal where buyers and sellers
can register and speak to one another. Even big
multinationals currently use it to look for busi-
ness opportunities.
MuTuAl sATisfAcTiOn
Old Mutual has begun an ambitious African ex-
pansion strategy—encouraged by the continent’s
robust economic growth—posting a 17 per cent
jump in earnings in the process.
Old Mutual, a financial conglomerate with
insurance, banking and asset management busi-
nesses across four continents, had identified
“exciting growth opportunities” in Africa, it stated.
“We have considered for many years whether
we should push more into Africa, and up until
this point we’ve been happy with the assets
we’ve got,” said Old Mutual chief executive Julian
Roberts.
“Now we think it is the right time to grow our
business in Africa – you just have to go round the
various African countries to see how very differ-
ent it is, compared with five years ago.”
The company wants to grow in the major mar-
kets of east and sub-Saharan Africa, and build
on its acquisition last month of Nigerian insurer
Oceanic Life.
Old Mutual, which listed in London in 1999,
launched a series of overseas takeovers aimed
at reducing its dependence on its historic home
of South Africa, reported an operating profit of
£1.61 billion (R19bn) for the 2011 year.
24 SECTION � Title24 NEWS IN REVIEW
Muse news coming out of africa
wAl-MArT sPeciAl Offer uPHelD
The world’s biggest retailer Wal-Mart, has been
granted permission to proceed with its 17 billion
rand ($2.2 billion) purchase of a controlling share
of South African chain, Massmart.
The Competition Appeal Court upheld a ruling
last year by the Competition Tribunal—the govern-
ment agency charged with promoting competition
and protecting consumers. The appeal court, how-
ever, did call in its ruling for a study to determine
the best way to protect small producers who might
not be able to compete with foreign producers,
from whom Wal-Mart can import cheaper goods.
Wal-Mart and Massmart had already agreed
to spend 100 million rand (about $13 million)
over three years to help farmers and other South
African suppliers gear up to do business with
Wal-Mart.
The appeal court also called for the reinstate-
ment of 503 workers who lost their jobs in what
unions said was “a step by Massmart to make
itself more attractive to Wal-Mart”.
Potential investors had said they were closely
watching for the ruling, which could signal South
Africa openness to foreign investment. The Wal-
Mart-Massmart partnership has been operating
in South Africa since last year, pending Friday’s
ruling.
South African unions and some government
officials worry Wal-Mart’s arrival will hurt jobs and
local manufacturing. Wal-Mart and Massmart
contend that together they will be able to offer low
prices and a range of goods that will benefit South
African consumers.
The appeals court stated that “there was in-
sufficient evidence to conclude that the detrimen-
tal effects of the merger would outweigh the clear
benefits.”
BOk TO squAre One
South African World Cup-winning coach Jake
White has rejected the chance to be England’s
next permanent head coach.
White is eight months into a four-year deal
with the Brumbies in Australia and says he will see
out his contract.
He reflected: “It is always hard turning down
a chance to win a World Cup, but rugby is about
25OCTOBER 2011 � The African Business Journal 25SEPTEMBER 2011 � The African Business Journal
news coming out of africa
making the right decisions and mine is to stay
where I am.”
On Thursday, White said the RFU had ap-
proached him about coaching England.
White had previously stated his commitment
to remain with the Brumbies until the end of their
current campaign and that would have ruled him
out of England’s June tour to South Africa.
Current interim incumbent, Stuart Lancaster,
is expected to be interviewed before the end of
the Six Nations, as the RFU search for Martin
Johnson’s successor continues.
Nick Mallett—another former Springbok
coach—now becomes a firm favourite for the job.
TABJ’s rugby correspondent Andrew Miskin
said: “He left the Springboks under a bit of a
cloud, over the removal of successful captain,
Gary Teichmann, but his record was incredible,
and South Africa scored many great tries under
his tutelage.”
LUKE SCHMIDT / SHUTTERSTOCK.COM
26 SECTION � Title26 NEWS IN REVIEW
Muse news coming out of africa
“Mallett would be a great coup, for England,
and he is available for the June tour of SA,” he
added.
sTAnDArD inTeresT in AfricA-cHinA PAcTs
Standard Bank Group Ltd. is looking to benefit
more from the growing trade and investment
between China and Africa by expanding its Africa
business and looking for ways to cut spending
outside the continent.
“The biggest opportunity, the fastest grow-
ing opportunity, is the burgeoning Sino-Africa
trade and investment relationship,” Deputy Chief
Executive Sim Tshabalala said.
Standard Bank, Africa’s largest lender by as-
sets, stated earlier this year that it would realign
the bank to put more resources in Africa, while
reducing businesses outside the continent that
don’t feed into the Africa growth goal.
In 2009, China passed the U.S. to become
27OCTOBER 2011 � The African Business Journal 27SEPTEMBER 2011 � The African Business Journal
news coming out of africa
Africa’s biggest trading partner. In 2011, Stan-
dard Bank estimates merger-and-acquisition ac-
tivity from China on the continent totalled $5 bil-
lion, of which the bank said it advised on about
30 per cent. Mr. Tshabalala said he expects
investment from China to grow further in 2012
with a number of deals already in the pipeline,
which should be announced this year.
In 2011 Standard Bank sold a majority stake
in its Argentina operations to Industrial & Com-
mercial Bank of China for $600 million. The sale
is still in progress and subject to some regulatory
approvals. The bank also completed a stake sale
in Troika Dialog Group in Russia, for which it re-
ceived an upfront consideration of $372 million.
“Where we get opportunities to shed invest-
ment bank or universal opportunities outside
Africa, we will,” Mr. Tshabalala insisted.
As part of the bank’s aim to grow business
with Chinese companies doing deals in Africa, it
said that presence in Beijing will increase, while
Hong Kong activity will be reduced.
Recent Africa-China deals that Standard
Bank advised on include the $1.3 billion Africa-
focused miner Metorex Ltd. sale to Chinese nick-
el company Jinchuan Group Co. The bank also
advised on the 25 per cent stake sale of South
Africa’s Shanduka Group to China’s sovereign-
wealth fund China Investment Corp. for 2 billion
South African Rand ($263.4 million), completed
in December.
Standard Bank has also reported that net
profit for 2011 rose 23 per cent to 13.27 billion
rand from 10.77 billion rand.
cArlYle grOuP seAl funD DeAl
Major global private equity outfit, the Carlyle
Group has stated that it has concluded plans to
pursue its geographical expansion into sub-Saha-
ran Africa through the support of Africa Develop-
ment Bank (AfDB) who will disburse a $50 mil-
lion equity fund.
The Board of the African Development Bank
(AfDB) has approved Carle’s equity investment of
USD 50 million into its Sub Saharan Africa Fund.
This fund is the first investment vehicle that
the US-based private equity firm, has agreed to
plough into the region.
28 SECTION � Title28 NEWS IN REVIEW
Muse news coming out of africa
The Carlyle Group has been watching the
increased political stability and rapid growth of
countries like Ghana, Tanzania, Botswana and
Benin. The firm has described these countries as
attractive places to allocate capital, in addition to
South Africa, Nigeria and Kenya, the Fund’s initial
investment anchor countries.
The fund plans to invest a total of USD 500
million, with the potential to double this amount
through co-investment with other Carlyle global
funds. The Carlyle Sub-Saharan African Fund will
seek to invest in large national companies seek-
ing intra-regional market expansion and vertical
integration across neighboring countries.
As AfDB president Donald Kaberuka said:
“The African Development Bank is best placed to
welcome global first-time investors to Africa. As Af-
rica’s premier financing institution, it is our role to
lend market expertise, share our risk knowledge
and our know-how on how to invest in Africa in an
environmentally and socially responsible manner.”
“No other development finance institution can
better play the role of welcoming large investors to
the continent,” he added.
AfDB and Carlyle will also jointly launch the ‘In-
the-Board-Room’ programme; an audio series tar-
geted at African business students. The scheme
will provide more than 1,000 African business
students with access to messages on inspirational
leadership, a sense of strategic command and les-
sons in crisis management.
sTeinHOff TABles iMPressive figures
Furniture company Steinhoff’s strategic position
has been strengthened through the successful
integration of Conforama in Europe, and the repo-
sitioning of its African business.
The results for the period under review include
the six months trading contribution of French fur-
niture outfit, Conforama, which Steinhoff bought
last year for R11.04 billion from PPR—a French
multinational holding company.
Steinhoff reported headline earnings per
share of 166.5 cents in the six months to end-
December from 112.8 cents a year previously.
Revenue increased 123 per cent to R37.645
billion, while operating profit increased 59 per
cent to R3.699 billion. Meanwhile, the company
29OCTOBER 2011 � The African Business Journal 29SEPTEMBER 2011 � The African Business Journal
news coming out of africa
also benefitted from favourable currency swings.
A total of 86 per cent of the group’s revenue was
earned in currencies other than the rand.
Over the past six months, the group opened
seven stores in Germany, two in Spain, and ac-
quired nine previously franchisee stores that will
now be trading as owned Conforama stores.
Conforama also opened two Confo Deco
stores. These new stores comprise 145,351
square metres and account for the majority of the
expansion capital invested in the group during the
period under review.
As part of its restructuring plan, in January it
was announced that Steinhoff would up its stake
in JD Group through a share swap deal, in which it
would ultimately hold 50.1% of JD Group from its
current 32.4 per cent stake.
Steinhoff plans to trade part of its holding in
manufacturing unit KAP International Holdings
(KAP) for shares in JD Group. On implementation
30 SECTION � Title30 NEWS IN REVIEW
Muse news coming out of africa
31OCTOBER 2011 � The African Business Journal 31SEPTEMBER 2011 � The African Business Journal
news coming out of africa
of the partial offer, JD Group will become a listed
subsidiary of Steinhoff.
During the period under review, the group
established the future strategic intent and
positioning of its constituent businesses
comprising Steinhoff Europe, Steinhoff Africa,
associate company JD Group, an associate
investment in PSG Group, and a property
portfolio comprising commercial, industrial and
retail real estate assets.
Looking ahead, Steinhoff stated that it was
confident that its repositioning over the last six
months established the base that would provide
focus from which the separate operating units
would continue to deliver sustainable earnings
growth.
eskOM MAkes cOnnexiOn
In a move designed to tackle South Africa’s
national energy shortage, ICT services company
Business Connexion has launched its Energy
Efficiency Services, on the back of a partnership
agreement with Eskom.
Business Connexion said it saw this as a R1
billion sector for the operation over the next two
years, with a focus on big industry, including the
mining and manufacturing sectors, petrochemi-
cal, retail, and financial services, plus vast oppor-
tunities with government ventures.
Studies to establish energy efficiency, com-
paring South Africa to other countries with a
similar per-capita GDP, indicate that South Africa
is more electricity-intensive by between 35 and
65 per cent. Of this, a significant proportion is
estimated to arise from the use of less energy
efficient technologies and production processes.
This leaves substantial opportunities for energy
saving.
Furthermore, in line with international gov-
ernance trends, local companies are likely to
be legally bound to adopt sustainable business
practices at some point in future. Requirements
such as the reduction of a company’s impact on
the environment, among others, are being sup-
ported by developments such as new building
standards.
As an Eskom-approved Energy Services
Company (ESCO), Business Connexion is
32 SECTION � Title32 NEWS IN REVIEW
Muse news coming out of africaaccredited to identify opportunities for achieving
reductions in electricity consumption and
the scoping and execution of such projects.
The company also offers integrated energy
management solutions, including energy audits,
assessments, financing, commissioning and
ongoing management, offering financial benefits,
improved performance of plant and reduced
maintenance.
gulf swings in BP’s fAvOur
Nearly two years after an explosion sent millions
of gallons of oil into the Gulf of Mexico, deepwa-
ter drilling has regained momentum in the gulf
and throughout the world.
The announcement of an agreement by BP,
and lawyers representing individuals and busi-
nesses hurt by the disaster, also represents a
certain amount of closure.
After a yearlong drilling moratorium, BP and
other oil companies are intensifying their explora-
tion and production in the gulf, which will soon
surpass the levels attained before the accident.
Drilling in the area is about to be expanded in
Mexican and Cuban waters. Oil companies are
also moving into new areas off the coast of East
Africa and the eastern Mediterranean.
The reason for the resumption of such drill-
ing, analysts say, is continuing high demand for
energy worldwide.
“We need the oil,” insisted Amy Myers Jaffe,
associate director of the Rice University energy
program. “The industry will have to improve, but
the public will have to deal with the risk of drilling
in deep waters or get out of their cars.”
Domestic oil exploration and gasoline prices
are emerging as important issues in the Ameri-
can presidential campaign. Although candidates
have sparred over the reasons for rising prices,
there is little disagreement over the call for more
drilling; onshore and offshore.
“The price of gasoline is becoming a genuine
crisis for many American families,” said Newt
Gingrich, the former House speaker and a can-
didate for the Republican nomination, appearing
on CNN Sunday morning. “If it continues to go
higher, it will crater the economy by August.”
President Obama, while in New Hampshire
last Thursday, countered Republican charges
that he was to blame for the rising pain at the
33OCTOBER 2011 � The African Business Journal 33SEPTEMBER 2011 � The African Business Journal
news coming out of africa
pump. “We’ve opened millions of new acres for oil
and gas exploration, and approved more than 400
drilling permits since we put in place new safety
standards, in the wake of the gulf oil spill,” he
said.
Last December, the Obama administration
held its first offshore auction since the BP spill,
granting leases for more than 20 million acres
of federal waters—bigger than West Virginia. The
leases are worth $330 million to the federal gov-
ernment and have the potential to produce 400
million barrels of oil. TAB
“hyphens in urls are generally not a good idea. Something to do with meta-tagging, search terminology and other behind-the-scenes web curiosities, not to mention simple human logic like guessing a company’s web name”
The secret diary of a small business
Business
More musings from our resident start-up business woman, Jen Smit, as she gets involved in a bit of name-calling
What a tangled webif YOu HAve been paying attention, you may recall
that last month in my ‘things I’ve learned so far’
list I referenced the difficulties that the digital
world places on finding an appropriate name.
Well, it continues.Seriously, who knew this bit would be so hard. I
always said that it was important to get a busi-
ness plan sorted before worrying about what to
call my fledgling operation, but as it happens, I
latched onto a name fairly early on and now ‘a
rose by any other does not smell as sweet’, but
try telling that to the internet!
As the home to my enterprise it does unfortu-
nately have a say, and at the moment, it appears
to be saying ‘no’. Basically, both the ‘.com’ and
‘.co.uk’ domain names I want are already taken.
Being new to all this, and therefore relatively
naive in the ways of the internet, I looked at alter-
natives and found that a variation of the name I
want—one with a hyphen—was, in fact, available.
This looked to be a perfectly acceptable compro-
mise to me and so, for the grand sum of about
£9.80 for two years, I bought my first ever URL. I
was on my way—or so I thought.
36 BUSINESS � Secret Diary of a Small Business
Dot to dotAlas, my brother, a successful entrepreneur in
the world of online payments (check out www.
payfast.co.za), rained—in the nicest possible
way—on my parade and told me that hyphens in
URLs are generally not a good idea. It’s some-
thing to do with meta-tagging, search terminology
and other behind-the-scenes web curiosities, not
“i latched onto a name fairly early on and now ‘a rose by any other does not smell as sweet’, but try telling that to the internet!”
37APRIL 2012 � The African Business Journal
to mention simple human logic, like guessing a
company’s web name.
This opinion was seconded by another entre-
preneur, the founder of Danish finance website
NP Investor, who had a ‘been there, done that,
hurt by the hyphen’ story to tell. Back online I
went to look for alternatives and bought option
number two: a hyphen-less ‘.org.uk’ URL. Yet this
still doesn’t feel quite right—it just seems a bit
cumbersome and confusing.
Here I am—itching to follow the advice of vari-
ous people around me, who are adamant that
‘the learning is in the doing’ and I really should
get my retail site up and running pronto—yet
MOre THings i HAve leArneD sO fAr:
• Sometimeslifegetsinthewayofthe
best-laidplans(trynottobetoohard
onyourselfaboutthis).
• Popularconsensusappearstobe
that‘thelearningisinthedoing’.The
jury’sstilloutontheeffectivenessof
the‘failfast’approach,buteverywhere
Ilook,itseemsthenewwayofdoing
thingsislesslinear,moreagile.
• It’snotcalledthewebfornothing—
‘whatacomplicatedwebweweave’
andallthat.
• Apositivepersonalinteractionisstill
thebestformofmarketing,butthere
isstillaplacefortheprimitivecatchy
postcard!
• EveryoneattheIndabalovedthe
proposednamesoitseemsthefight
fortheURLmustcontinue.
38 BUSINESS � Secret Diary of a Small Business
“Thanks to a ‘Whois’ search, i do know who owns the url i am after and as it appears to be lying dormant. i am going to see if i can sweet-talk a chap named Simon into parting with it for a good cause. Mine.”
seemingly chained by the technicality of a name.
Meanwhile, I have a lovely little online bou-
tique that is taking shape behind some electronic
curtains and I’m learning about a myriad of
complex sounding things like web analytics and
ad words. Thanks to a ‘Whois’ search, I do know
who owns the URL I am after and as it appears to
be lying dormant, I am going to see if I can sweet-
talk a chap named Simon into parting with it for
a good cause. Mine.
Moving much faster, thanks in no small part
to the emergency services of one Helen Bennett,
founder of eco-lifestyle website Naked Living,
is my list of potential suppliers. Helen kindly
stepped in at very short notice when my plans for
attendance at the Design Indaba in Cape Town at
the start of March went somewhat awry.
Helen, you may recall from my first column, was
in many ways the catalyst to set up my own busi-
ness. Her seemingly boundless energy continues
39APRIL 2012 � The African Business Journal
to inspire me and armed with my very first set of
business cards and promotional postcards, she did
an incredible job of representing me at the Indaba.
Indeed, so much that within mere days of her at-
tending, I was being contacted by people who were
keen to chat to me more about what I’m up to and
find out how they could get involved.
This, more than anything, is starting to make
things seem real. I still feel like there is a long
way to go, and so much to learn, but I guess it’s
like eating an elephant—you have to do it one
bite at a time. TAB
40 BUSINESS � aurecon join forces with neTGroup
gOOD viBrATiOns: aurecons join forces with neTGroup040
41APRIL 2012 � The African Business Journal
Following on from our company feature last month, TABJ looks at aurecon’s exciting and mutually beneficial merger with neTGroup.
gOOD viBrATiOns: aurecons join forces with neTGroup040
Business
42 BUSINESS � aurecon join forces with neTGroup
engineering, MAnAgeMenT AnD specialist tech-
nical services group Aurecon has completed
a merger with NETGroup. The exciting move
will ensure enhanced service delivery to both
companies’ clients.
NETGroup is a market leader in transmis-
sion and distribution for utilities and industries
in Southern Africa and is a welcome addition to
the thriving Aurecon brand, which was created in
2009 when three separate entities amalgamated.
“This integration mirrors continued efforts to
increase the skills base and capacity within our
organisation,” says Albert Geldenhuys, Aurecon’s
General Manager, South Africa.
Friends reunitedFounded in 1987, NETGroup employed a multi-
skilled work force of more than 260 people,
comprising engineers, business consultants, pro-
cess analysts and information systems specialists.
Prior to the merger, the companies col-
laborated on numerous successful projects.
“We have known each for over 10 years, having
worked together successfully in the South African
and African environment,” says Peter Hulbert,
Aurecon’s Service Group Leader, Energy. “Joining
forces seemed like a natural progression and we
are really looking forward to capitalising on the
many benefits the merger offers.”
“There was excellent culture, vision and val-
ue system alignment between the two compa-
nies,” says Ferdi Nell, former CEO of NETGroup.
“The merger will unite two market leaders who,
together, are uniquely positioned to provide
their energy clients with a further enhanced
set of solutions.”
FERDI NELL PETER HULBERT
43APRIL 2012 � The African Business Journal
Each company will bring its own portfolio of
ventures to the table and with a combined work-
force assembled; the merged outfit will oversee
projects with an even further strengthened team
whose skills and experience are second to none.
What’s more, the increased collection of
technical abilities in the energy space will en-
able Aurecon to tackle assignments of greater
complexities, paving the way for a new and
galvanising chapter. “The addition of NETGroup
staff to Aurecon’s already competent team pro-
vides a lot of credibility in terms of our energy
industry capability and integrating its resources
will open up many great opportunities in the
future,” adds Hulbert.
EnergisedFor a period of at least a year, Aurecon’s energy
teams in South Africa and Africa will operate as
Aurecon, but carry a ‘NETGroup-endorsement’.
The combination of these ambitious compa-
nies has already been a galvanising experience
as employees from both look toward a produc-
tive and successful future in which big ambi-
tions can be realised and new horizons can be
approached with confidence.
“Aurecon will continue to deliver innovative,
high-quality services to our clients by adhering
to the established success that our existing
operations have achieved. We will simultane-
ously explore new opportunities to provide cli-
ents with additional services in new areas. The
boost of this strategic merger will certainly en-
able us to achieve our Leading. Vibrant. Global
vision,” concludes Geldenhuys. TAB
www.AurecOngrOuP.cOM
www.neTgrOuP.cO.zA
Bothcompaniesbelievethathuge
synergiescanbeunlockedthroughthe
merger,resultinginsignificantbenefits
forclients,including:
• AnincreaseinAurecon’sabilityto
serveitslargecorporateclientsinthe
transmissionanddistributionmarkets
throughoutRSA’smajorcentres.
• Asignificantstrengtheningin
Aurecon’senergymarketoperations
throughawiderofferingof
multidisciplinaryservices.
• TheabilityofNETGrouptoleverage
Aurecon’sglobalfootprint,thereby
enablingabetterserviceto
NETGroup’sexistingclients.
Anc uncertainty044PHOTO CREDIT: NEFTALI / SHUTTERSTOCK.COM
Anc uncertainty
POliTics
46 Politics � anC uncertainty
party’s Dominance is posing a threat to the quality of future South african democracy, writes pieter Mulder
THe MAin issue of threat against the South
African political system is accountability and,
overarching this, is the inadequate separation of
powers into institutions and organisations.
47APRIL 2012 � The African Business Journal
party’s Dominance is posing a threat to the quality of future South african democracy, writes pieter Mulder
THe MAin issue of threat against the South
African political system is accountability and,
overarching this, is the inadequate separation of
powers into institutions and organisations.
PHOTO CREDIT: ANTôNIO MILENA/ABR
48 Politics � anC uncertainty
The South African electorate see many in-
stitutions as synonymous with the ANC. These
institutions are the infrastructure of government
and are run almost entirely by the dominant ANC
party. The ANC has successfully blurred the line
between party and government in this fashion.
On the debate of transparency, and hence
accountability, the issue is as follows:
The closed party list allows for impressive gen-
der representation. Coupled with a sterling modern
constitution, South Africa has made remarkable
headway in terms of gender and racial equality.
On the other hand the closed list system hin-
ders the ability for the South African system to
provide constituency service—something that the
country desperately needs in order to fight corrup-
tion and increase transparency and accountability.
One might argue that constituency MPs offer
a true voice of the minorities while others argue
that minority representation, albeit by less qualified
representatives through the current system, is pref-
erable. Either way it is the ANC’s inability to farm
out its power to institutions that hinders its ultimate
success. The reason for this is mainly the infamous
comparison of the ANC and the Indian National
Congress of the past—the only example of another
One Party Dominant (OPD) system.
49APRIL 2012 � The African Business Journal
Party timeThe One Party System: “A party is dominant when
it is identified with an epoch; when its doctrines,
ideas, methods, its style, so to speak, coincide
with those of the epoch... Domination is a ques-
tion of influence rather than of specific strength:
it is also linked with belief. A dominant party is
that which public opinion believes to be domi-
nant...Even the enemies of the dominant party,
even citizens who refuse to give it their vote, ac-
knowledge its superior status and influence; they
deplore it but admit it.” T. Reddy 2005.
Thomas Reddy, leading writer on the domi-
nant party system tells us that the epoch is not
permanent and that support will wane. The party
establishes itself and its identity within the new
institutions staffed by its members. The estab-
lishment of this new regime is associated with
the, ‘Heroic Struggle.’ The transition from the old
to new regime helps the party to develop a select
group of sophisticated leaders with a wealth of
experience.
The main criticism of the ‘Congress System’
is that the control the dominant party has over
the state allows the party to interfere in all as-
pects of civil society, thus reducing democratic
rights. Such Systems rapidly approach authoritar-
ianism (Giliomee and Simkins, 1999), although
the dominant party system is mostly looked at
negatively as it is superior to “fragmented mul-
tiparty systems” and should be appreciated
for providing “Stability in fragmented polities.”
(Friedman, 1999)
Barnes appreciates the system by stating “The
dominant party system suggests a model of how
democracy and stability may be combined under
difficult conditions.” (1974: 593) This is clearly the
case with the ANC and the INC. Arian and Barnes
optimistically conclude that, “The dominant party
system combines stability with political competition
and a large measure of civil liberties. This is quite
an achievement.” (1974: 600).
50 Politics � anC uncertainty
The debateThe question is whether the ANC is abusing its
power. Past president and ANC Leader Thabo
Mbeki, has been quoted as saying that accusations
about the ANC’s dominance, threatens democracy
and borders on racism. Mbeki went on to deny that,
“fictional threat of a one-party state.”(M Wines:
2004). He suggests instead that South Africa is run
by the ANC—the Multicultural Coalition.
This viewpoint has certainly got academic
appeal as it is argued that South Africa is not
capable of sustaining, “A fragmentation of the
liberation movement now.” (A Butler: 2005).
Butler goes on to state that our institutions are
not robust enough to manage the conflicts that
society can produce. ‘The best scenario may well
be 15 or 20 years of ANC dominance, creating a
period of stability during which liberal institutions
can entrench their authority.’ (Butler: 2005).
Recent problems with floor-crossing in parlia-
ment have caused much upset among the oppo-
sition. Tony Leon, retired leader of the opposition
said, “Instead of creating a class of independent-
ly minded public representatives, floor-crossing
has succeeded only in encouraging the lowest
form of cheque-book politics, increasing the
ANC’s dominance and fragmenting opposition.”
The ANC has been known to be ruthless to
dissenting opinions. It is a party that must have an
image of unity “but they cannot make the party nar-
row or monolithic.” (Morris-Jones, 1966: 466).
Arms wrestleOne of the greatest scandals to date has been
the enquiry into an arms deal, when former ANC
MP Andrew Feinstein refused to join the rest of
the ANC caucus in its collective amnesia on the
intentions of public accounts watchdog-Scopa;
he was struck off and replaced by someone on
the closed party list.
Subsequently the judiciary was replaced with
one more complacent to the ANC. Jeremy Cronin,
deputy general secretary of the South African So-
cialist Party, says he fears that South Africa may
end up being similar to the Zimbabwe African
National Union. He is on top of the list of people
berated, vilified and accused of being traitors
by the ANC, ‘for speaking what is the plain and
simple truth.’ (Holomisa:2002).
Others on the list include Nelson Mandela
“Banthu holomisa leader of the uDpM has stated that the anC is fostering a culture in which nobody dare point out that the emperor has no clothes, no matter how grotesquely obvious it may be”
51APRIL 2012 � The African Business Journal
and Desmond Tutu, for pointing out the lunacy
of the ANC government’s handling of issues
relating to AIDS.
Banthu Holomisa leader of the UDPM has
stated that the ANC is fostering a culture in which
nobody dare point out that the emperor has no
clothes, no matter how grotesquely obvious it may
be. He goes on to urge his audience to realise how
intimidating the ANC is when opposition parties
question or expose its bad administration.
There is expected authoritarian behaviour as
far as the media and public broadcaster is con-
cerned—the ANC is making a conscious effort not
to screen anything that may disrupt the viewpoint
or stance of the ‘peoples party’.
What is perhaps most shocking, is that the
aspirations of the ANC are put way before those of
the people it represents. This is backed by a state-
ment made by the ANC in 2002: “All members of
the ANC are first and foremost accountable to the
ANC, irrespective of any other leadership positions
they might occupy in broader society. This extends
to votes by MP’s in parliament especially.
We can see why some are sceptical. Anthony
butler states:
Critics of ANC dominance have argued that
the ANC has exploited its dominant position to
close down opposition and lay the foundations of
a new authoritarianism. Democracy, in this view,
depends on a strong opposition that can defend
liberal institutions against ruling party control,
and offer electors a credible alternative govern-
ment. ANC leaders, by contrast, have confused
their party with the state, and tried to subordi-
nate parliament and the courts to the ANC’s will.
A dominant party, critics claim, will abuse its in-
fluence over the state, the state broadcaster and
electoral commission to ensure re-election.
South Africa’s political members are accused
of Careerism in that they follow the quickest route
to power that they then use to manipulate industry.
Thabo Mbeki recently observed, some ANC activists
seek office “on the basis that when they get elected,
they will use their government positions to extend
material benefits to those who supported them.”
Other cadres see membership of the ANC,
“as a stepping stone to acess state power, which
they would then use corruptly to plunder the
people’s resources for their personal benefit”.
“There will be an alternative to the anC at a later stage of South african politics, but this will be in 5-8 years when the liberation movement has been crystallised into the powerful democratic institutions of the country”
52 Politics � anC uncertainty
53APRIL 2012 � The African Business Journal
(Butler: 2005)
The debate above has highlighted problems
with the administration of South Africa and
although there is no substantial evidence that
the ANC is tyrannical, one could sympathise with
sceptics. The second grand point is that there
is simply no real alternative to the ANC. There
almost certainly will be at a later stage of South
African politics, but this, as suggested by Butler,
will be in 5-8 years when the liberation move-
ment has been crystallised into the powerful
democratic institutions of the country.
The ANC is a blessing in that multiple less
BiBliOgrAPHY
AnthonyButler,ContemporarySouth
Africa,(2004)pg116-120,128,160-
163.
ClemensSpieß,Paper:One-Party-
Dominanceinchangingsocieties.
TheANCandINCinthecomparative
perspective.HeidelbergUni.2002
AnthonyButler,Article:WhySAneeds
astrongANC,BusinessDayedition,
-09-11-2005,pg15.
MichaelWines,Article:Thepolitics
ofANCDominance;President
emphaticallyrejectsnotionof‘one-
party’rule,TheNewYorkTimes-
InternationalHeraldTribune,April
14,2004.
ThivenReddy,“TheCongressParty
Model:SouthAfrica’sAfricanNational
Congress(ANC)andIndia’sIndian
NationalCongress(INC)asDominant
Parties”,AfricanandAsianStudies
Volume4,Number3(2005)pg.271-
300
WyndhamHartley,Bidbydisgruntled
IFP,DAtooutlawfloor-crossing.
BusinessDayEditionApril112006,
pg4BantuHolimisa,UDMleadersays
powerful parties would create a fragmented pol-
ity, possibly resulting in the embodiment of differ-
ences, into conflict politics. The case of the ANC
has brought faster sustained growth in the right
direction and warded off undemocratic practice.
Butler urges that in the light of the Zuma
struggle, “South Africa needs a strong ANC more
than ever.” TAB
www.Anc.Org.zA
our man in South africa, andrew ‘dual capacity’ Miskin, dips his well-sanitised finger in the pie of sporting truth.
THe cAPe crusADer
054
our man in South africa, andrew ‘dual capacity’ Miskin, dips his well-sanitised finger in the pie of sporting truth.
THe cAPe crusADer
sPOrT
56 SPORT � The Cape crusader
THe new BOk coach announcement was greeted
with optimism by gurus and ‘Joe Public’ alike.
Heyneke Meyer possesses that enigmatic quality
I have presumptuously labelled ‘a humble as-
suredness’, characteristic of so many greats in
business, spiritual and sporting arenas.
He has historically recognised the impor-
tance of inter-dependence—‘no man is an island’.
His success lies in co-ordinating a united front,
combined with purposeful support and playing
staff. He has an inspiring, motivational aura.
The new era must be exactly that. No remi-
niscing back to Jake White (successful though he
was at the time), or bemoaning the P Divvy years
(the Jake White second term, managed by se-
nior players in Jake’s absence). No preconceived
FRANçOIS STEYN, SOUTH AFRICAN RUGBY UNION PLAYERPHOTO CREDIT: WIKIMEDIA COMMONS/THOMAS FAIVRE-DUBOZ
57APRIL 2012 � The African Business Journal
ideas of what Springbok rugby is or isn’t. Such
thought stifles creativity and hinders the natu-
ral flow of ideas and energies, which will hope-
fully lead to a group of coaches and players that
share the same passion and vision.
Although my judgement of Pieter De Villiers’
tenure is harsh, there were glimpses of creative
and attacking rugby under his watch, which was
encouraging. Or was that all down to the astute-
ness of a certain Rassie Erasmus; South Africa’s
tactical genius? He would have been useful in
the Anglo Boer Wars, alongside De La Rey and
co. This reference to war comes as the old foe
prepares to visit our shores again soon. There
has always been a link between the rugby and
military tensions. The only difference being that
Rugby’s battle field has painted white lines.
Hunting lionsOne would hope that the new vision and its cast
when, in June, England arrive at their former
colony. If it is, players and support team alike
should heed to this warning—anyone given a
chance during the early part of Heyneke’s reign,
but does not stand up and stake their claim, will
be relegated to the Gehenna-like recycle bin.
On the other hand, if those granted the
opportunity shine and show that they want to
be part of their boss’s purpose, they may win
Heyneke’s heart and remain part of his vision for
the foreseeable future.
Several youngsters with immense promise
are likely to star in that much-anticipated England
series. England themselves have a fresh new look
and attitude about them, but this has not yet been
converted into on-field supremacy. The Boks at
home should have the measure of their oppo-
nents, especially if in-form players from the Super
15 are selected, which I believe will be the case.
Some overseas stars are likely to crack the
nod too. Certainly, Frans Steyn’s experience,
physical attributes and versatility, as well as
his prodigious boot, would be great assets in
a fiercely contested series. I would love to see
Frans Steyn start at 12 and move to 15 at some
stage in the second half, depending on the
match situation. He is too good to have on the
bench for one second of a big international clash.
“rassie erasmus, South africa’s tactical genius, would have been more than useful in the anglo Boer Wars, alongside De la rey and co.”
58 SPORT � The Cape crusader
Young gunsOf the youngsters on display in the first two
rounds of Super Rugby, several have raised
their hands, exhibiting passion, precision and
fearlessness on what remains a very testing
stage. The Stormers tight five—most of them
around the age of 20—stood up to the Sharks
with great aplomb, in round two. Indeed, their
second half ascendency in the scrums was in-
strumental in creating the momentum required
to tip the scales in the Cape Town-based side’s
favour, with Peter Grant (very recently back
from a lucrative spell in Japan) slotting a clutch
penalty from the left hand side touchline to
break Shark hearts.
Other youngsters to impress were the Bull’s
Francois Hougaard—a rare talent at both scrum-
half and wing—and Jaco Taute, a secure yet at-
tacking fullback from the Lions.
The general rugby vibe in South Africa at
the moment is positive and hopeful. Meanwhile,
our cricketers are enjoying an excellent tour of
New Zealand, and are performing with a consis-
tency and passion that has not been evident for
several years. Good luck to Biff and the boys as
they begin their quest for a test series win in the
land of the long white cloud.
Both series in the shorter forms of the game
were convincingly won by a team skipper Bren-
dan McCullum described as ‘the best he has
seen on New Zealand shores in recent times’.
This was even more impressive when you con-
sider that South Africa were subjected to rather
over-the-top banter and sledging in the early
parts of the tour. It is now time for the rugby
boys to step up and deliver and 2012 may well
be their time. TAB
“anyone given a chance during the early part of heyneke’s reign, but does not stand up and stake their claim, will be relegated to the Gehenna-like recycle bin”
59APRIL 2012 � The African Business Journal
PHOTO CREDIT: PHOTOSTOCK10 / SHUTTERSTOCK.COM
BeTTs TOwnsenDSafe Betts for everyone060
BeTTs TOwnsenDSafe Betts for everyone
PrOPerTY
62 PROPERTY � Betts Townsend
63APRIL 2012 � The African Business Journal
South african cities are becoming formidable and eye-catching metropolises, mesmerising anyone who visits them. Betts Townsend has been instrumental in this remarkable journey,
providing heart, soul and passion along the way.
64 PROPERTY � Betts Townsend
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We wish Betts Townsend the best for a long and sustainable future.
We are proud to be associated with you.
in A cOunTrY with a young vision, it helps if the
businesses in it reflect the same youthful zeal,
boundless productivity, international aspira-
tions and optimistic outlook. Betts Townsend
is a dream-weaving construction management
business, which loves nothing more than to
make magic happen—preferably on an awe-
inspiring scale.
Heartbeat of a nationWhen you’re in a multi-billion dollar industry it’s
always useful for a company to have a few cool
heads. Betts Townsend has done just that by
assembling a small but perfectly formed team of
hugely experienced, ambitious and innovative lu-
minaries. The combination of different skills has
allowed the company to embrace big challenges
and thrive during every project—delivering each
and every one, on time and on budget.
When the company began its pilgrimage
only a few years ago it immediately looked at
opportunities that matched its spirit, looking at
big events, such as the world cup and even the
creation of entire towns.
Today, its prophecy and vision have become
a reality. The company has risen to the top of
the ranks and completes ventures across a
vast compendium of sectors including sport,
65APRIL 2012 � The African Business Journal
C
M
Y
CM
MY
CY
CMY
K
2012 FINAL Future ad 210x135 PDFX.pdf 1 10/12/2011 3:46:36 PM
entertainment, retail, tourism and travel;
positively affecting the lives of people in South
Africa and on a global scale.
Some of the stunning structures include the
Peter Mokaba Football Stadium, Southern Sun
Hyde Park Hotel, Fairmont Zimbali Resort, Isando
Warehouse, Hemingway’s Shopping Centre, King
Shaka Airport and even the brilliantly-named
Oprah Winfrey Leadership Academy for Girls.
Business Development Director Mike Taylor
believes that Betts slick management sets them
apart. “On these larger projects time is ticking
from the moment we start building,” he explains.
“Africa doesn’t have the luxury of a constant
interest rate; it’s between 12 to 29 per cent,
depending on where you are in Africa. Therefore,
every second is accounted for.”
Building a reputationTaking on projects of the magnitude, functionality
and—ultimately—legacy, that Betts Townsend en-
joys, takes courage and a meticulous approach.
“We programme, we plan and we’re well-versed
in the game and, consequently, we’re developing a
big reputation. There is a big motivation to remain
on schedule and keep completion times competi-
tive. If it runs over, at the end of the day, we lose; so
far we never have,” enthuses Taylor.
66 PROPERTY � Betts Townsend
With so many different aspects to oversee,
there is also a big emphasis from the company on
communication. During projects the whole supply
chain, all the consultants, architects and construc-
tion workers need to be operating in sync. Making
sure performance levels remain high and that each
element of the operation knows exactly what is
expected has always been a top priority.
According to Taylor the selection of the right
people for Betts Townsend has been essential.
“We try and find like-minded, innovative people,
who are passionate about achieving success and
enjoy working with each other to achieve it,” he
says. “We’re a young, energetic company and our
ability to change with the times has enabled us
to turn out profits, even in the current climate.”
Good timesAs the company continues to make strides it has
its sites firmly set on another industry—mining.
“The mining sector is something which we’re
working very hard on. We’ve actually realised that
we’re putting packages together that no one else
has thought of. We’ve got case studies now, with
a proven track record, so the future is looking
very bright”, says Taylor.
Meanwhile, the company has many more
ground-breaking projects in another sector, which
67APRIL 2012 � The African Business Journal
68 PROPERTY � Betts Townsend
69APRIL 2012 � The African Business Journal
it has started to dominate. “In retail if you look at
our historic track record, I think we have become
leaders in the field over the last five years. We
are taking retail to the townships and strong-
holds outside of urban areas and that is some-
thing we are immensely proud of.”
In many ways Betts Townsend epitomise what
the ‘new’ South Africa aspires to be, casting hope—
quite literally—across the country’s fascinating
landscape. Dynamism, productivity and, above all,
spectacular results—as its structures testify—are
built into its philosophy. There is continuity between
the heartbeat of the company and the activity in its
facilities. It is a company that sees the virtues—not
just in the completion of a project—but the legacy of
the ventures. It genuinely cares about the commu-
nity its creations serve.
The triumph of these ventures comes
through the thousands of lives they have trans-
formed throughout the country. Whether it be
watching a major sporting event at a stadium,
moving into a brand new home or being able to
buy a loaf of bread locally—Betts Townsend has
made these opportunities a reality for thousands
of people. As for the buildings—they speak for
themselves. TAB
PAPer viewDinu universal paper & plastics070
reTAil
PAPer viewDinu universal paper & plastics
72 RETAIL � Dinu universal paper & plastics
The fabulously-named Dinu universal paper & plastics company loves nothing more than to provide people with genuinely essential items. after half a century the company continues its pivotal ‘roll’ in the marketplace.
74 RETAIL � Dinu universal paper & plastics
THe MODern, TecHnOlOgY-OBsesseD world can
be pretty confusing. Sometimes it’s strangely
gratifying to actually get hold of something you
can fully comprehend. Dinu—a family business
in every sense of the word—have been providing
just this brand of reassurance for over 50 years.
Page turner“The company was started by my great Grandfa-
ther and some partners in 1950,” says Johnny
Sher, General Manager of his family’s business.
“The company started out making paper enve-
lopes and other paper stationary. It was then tak-
en over by my grandfather Phil Sher in the early
50’s and he started to grow the company, manu-
facturing paper drinking straws and napkins.”
The company recently celebrated its
62nd birthday—there aren’t many businesses
around that can make that boast, especially in
the current climate.
Over the years Dinu has produced all man-
ner of paper-based items, while also branching
into plastic. The impressive compendium also
includes plastic straws, plastic bags, pocket tis-
sues, toilet paper and kitchen towels.
In recent times it has been solely focused on
tissue paper products, specialising in manufac-
turing paper napkins, toilet paper and kitchen
towel. The company prides itself on offering a
premium high quality product and in a variety of
forms. Dinu particularly specialises in printing
designs and offer a vast range of napkins, toilet
paper and kitchen towels to suit all tastes.
it is this bespoke customer service that Sher believes sets the company apart. “We offer our customers the opportunity to accessorise their homes to reflect a particular style, whether it be in their dining room, kitchen, or their bathroom,” he enthuses.
Let’s rollThe company actually has two brands which serve
very different sector; the exceptionally popular
Dinu brand—which is purely for retail—and also the
Diamond brand, for industrial purposes, including
speciality stores, hotels, and restaurants.
Indeed, the company has an impressive
presence throughout South Africa, selling
products countrywide to big retailers, such as
Shoprite, Checkers, Pick ‘n Pay, Massmart, Spar
Group and Woolworths. In addition, it exports to
neighbouring countries.
There have also been many other factors,
which have contributed to the company’s continued
75APRIL 2012 � The African Business Journal
www.mondigroup.com
76 RETAIL � Dinu universal paper & plastics
success. Toilet roll production has increased by
three times in as many years, the company are the
third largest shareholder in the two ply market and
house brand business has soared. Yep, it’s fair to
say this company is on a roll.
Flushing away profitsThe addition of more competitors in the market
has raised the importance of operating as ef-
ficiently as possible, in order to reduce the costs
of the products and remain competitive. As well
as increasing its production, Dinu has doubled
its skilled and committed workforce to over 200.
All are highly-trained, with formidable knowledge
and experience of the industry.
Like its products the company has always had
an inherent flexibility, which allows it to progress
and adapt to the changes in the market, such as
advances in technology. In addition, the customers
have also become more demanding in terms of
the price they pay and the quality they are paying
for. This requirement has prompted the company
to focus on a programme of continuous improve-
ment in standards, variety and cost effectiveness.
Also, investing in the latest machinery has
enabled the company to grow in many areas and
produce increasingly competitive products to cus-
tomers. This has even included producing its own
water based inks, under the brand Universal Inks.
“You can always be assured by buying a
Dinu or Diamond product that you will be getting
the same consistent quality,” promises Sher.
“We also offer high service levels, and attend
77APRIL 2012 � The African Business Journal
to any customer complaints immediately. The
company is proud to act in an ethical manner,
and always consider how our actions will affect
all stakeholders.”
AbsorbencyIn the next few years the company is very inter-
ested in distributing its products even further afield
and is currently looking for new business partners
78 RETAIL � Dinu universal paper & plastics
79APRIL 2012 � The African Business Journal
in others countries across Africa. This will also in-
volve the creation of further manufacturing facilities
in other countries—an interesting prospect, espe-
cially with improved growth in the African market.
“We are hoping to encourage growth quite
intensively and gain further market share, while
also concentrating on growing our export market,”
concluded Sher. “We are hoping to achieve a larg-
er base of loyal consumers who understand our
company’s philosophies and support our brands.
Above all, we aim to improve the state of hygiene
in South Africa by giving tissue paper access to as
many people and companies as possible.”
With a range of products that households
trust implicitly, Dinu will be cleaning up for
the foreseeable future. After all, that is what it
does best! TAB
www.Dinu.cO.zA
There for you!BTG is present throughout the Pulp & Paper processand committed to helping you achieve significant,sustainable gains in business performance.
Get in touch with us todayto learn how we can helpimprove your bottom line!www.btg.com info@btg.com
Contact our local agent Euro Technology PPT onet-ppt@netactive.co.za
Pub Corp.New image-2012 African Business Journal_Mise en page 1 13.02.12 09:04 Page1
080
reTAil
hair raisingrAPiDOl & kinkY grOuP
080Managing hair of african origin can be tricky, but for over half a century inecto has been making it a pleasure.
82 RETAIL � rapidol & Kinky Group
83APRIL 2012 � The African Business Journal
wHen YOu’ve gOT hair that makes a big impres-
sion wherever you go, it’s essential to have the
best products, ensuring that you’ve got as big a
smile as the people looking at you.
‘Fro showInecto was launched into South Africa in 1947,
emerging from a UK family owned company
called Rapidol. By 1960 ‘Rapid No 1’ and ‘1.5’
became the biggest brand for ethnic consumers
who wanted deep black shiny hair.
During the disco dancing 1970’s, black cus-
tomers embraced the ‘Afro’ hairstyle and sought
to colour their stunning locks. Inecto was at the
forefront, launching two more up-market crème
variants. ‘Super Black’ was the first hair colou-
rant to depict a beautiful black female model on
the pack, with a stunning black afro.
The second was called ‘Crème Black’, and
introduced Indian male and female models.
Showing different races on packaging was an
incredible milestone, especially in South Africa,
and customers were attracted to such well-de-
fined products. Consequently, Inecto remained at
the forefront of ethnic hair colourants in SA and
demand was unprecedented.
84 RETAIL � rapidol & Kinky Group
By the late 1990’s black American TV stars
were seen with an array of different hair colou-
rants, from browns to reds and this ignited a desire
within the local population to experiment with co-
lours other than black. From 2000-2004, in order
to meet the demand, the company introduced a
range of ten colours in a 50ml crème formulation,
and very quickly took the lead in hair colouring.
Inecto continued to expand and in 2007 was
bought by the successful and world-renowned
multinational company, Godrej, based in India.
Premier leagueWith huge growth and demand from consumers,
Inecto launched its premium ‘Inecto Plus’ range, in
seven vibrant new colours. This sub-brand has been
aimed at the young fashionable ‘urban chic’ female.
In 2007 the company also launched ‘Inecto
Henna’ and ‘Inecto Plus Highlights’ as part of an on-
going plan to offer customers various alternatives.
The most recent innovation to hit the shelves—
‘Inecto Semi Permanent’—is popular with those
who enjoy changing hair colour regularly.
“The Inecto brand now has over 14 million sat-
isfied users in the sub Saharan Africa markets,”
says HR Manager Kammy Moodley. “It is well-
known and has developed a reputation as a tried
and trusted manufacturer of quality products.”
The company currently enjoys a market share
of 90 per cent, leaving its rivals clutching at thin
air (thin hair, if you will).
Sister companyKinky World of Hair is a proudly South African
established business. It has been supplying
human hair, synthetic wefted pieces, wigs,
add ons, hair extensions and hair braids to the
South African Consumer for over 40 years. It
also offers employment to over 400 permanent
and casual employees in sales, marketing, dis-
tribution and manufacturing.
The first store opened its doors in Gauteng
in 1971 and, to date, Kinky trades out of 27
retail stores, predominantly in Gauteng and
Kwa Zulu Natal.
85APRIL 2012 � The African Business Journal
“Our retail shops are vibrant, up market and
trendy, and we are constantly looking at innovative
ways to improve and modernise our new and exist-
ing stores,” enthuses Moodley. “Our shops stock a
wide variety of styles and colours, allowing con-
sumers the ability to choose the look they want.”
The dry hair products are well known for
quality and reliability as the company only stock
long lasting, good quality fibres. The highly experi-
enced team have an unrivalled knowledge of the
products and are dedicated to bringing the most
fashionable and desirable products to market.
To improve the accessibility of products,
Kinky distributes to wholesalers throughout
South Africa and neighbouring African countries.
The business also supports and compliments
the hair salon industry, supplying them with hair
pieces. In addition, Kinky assists and encourages
individuals who operate home-based businesses.
In 2008, Kinky World of Hair also became
a fully owned subsidiary of Godrej Consumer
Products Limited.
Hair peaceInecto’s product is manufactured locally (98 per
cent), while the other materials are imported
from India.
Over the past few years Rapidol has achieved
significant increase in turnover, largely due to
the release of new products and an increased
focus on performance. The organisation’s R&D
department in India has been instrumental in
conducting research into the development of new
products in a range of formats including liquid,
powder and crème.
Rapidol has also grown its business in Africa in
recent years and exports now account for roughly
a third of company revenues. It has established liai-
son offices in East and West Africa with teams ded-
icated to assisting appointed distributors. Rapidol
products are sold across the continent by compa-
nies focused on personal care and cosmetics. The
products are supported by a range of advertising
and promotional activities which are used to com-
municate directly with the targeted consumers.
Meanwhile, Kinky has also seen major
growth in recent years. Since its acquisition in
2008, the company has grown from strength to
strength, increasing its number of stores from 15
to 30. The availability of Kinky products in retail
stores and wholesalers has further boosted the
company’s market share.
With such domination across the continent,
and a determination to keep pushing the bound-
aries of its products, you can guarantee that
Inecto is ‘hair to stay’. TAB
www.inecTO.cO.zA
port of Durban086
freigHT
port of Durban vinTAge POrT086
88 FREIGHT � port of Durban
89APRIL 2012 � The African Business Journal
The port of Durban has been a productive, unmistakable and reassuring presence on the landscape for decades.
90 FREIGHT � port of Durban
A THriving POrT is as much part of the commu-
nity as the people it serves. As omnipresent as
the sun, moon and stars, it is the point at which
industry and nature merge to create dreams.
Sea shantiesThe picturesque Port of Durban is 680 nautical
miles north-east of Cape Agulhas and occupies
the natural expanse of Durban Bay—an area of
1850ha. It operates 24 hours-a-day, 365 days-a-
year. In case you hadn’t worked out, it never closes!
The notion of Durban as a port dates way
back to 1824 when the first European settlers
arrived with the intention of setting up a trading
post. The Bay of Natal (Durban Bay) was one of
the few natural harbours available along the east
coast of southern Africa, between Algoa Bay and
Delagoa Bay (now Maputo Bay).
Legend has it that Vasco da Gama sighted the
area on Christmas Day, 1497, before naming the
land ‘Natal’ as a mark of respect for the Nativity.
The first harbour master was appointed in
around 1839 and Durban rapidly became Afri-
ca’s busiest general cargo port and home to one
of the largest and busiest container terminals in
the Southern Hemisphere.
Durban Bay also served a different kind of
purpose in the 1930s, until late in the 1950s,
when it was used as a base for flying boats!
91APRIL 2012 � The African Business Journal
92 FREIGHT � port of Durban
Bay watchThe impressive entrance channel has a depth of
12.8m from Chart Datum, while the channel width
has been widened to 222m at its narrowest point.
At present, the port has a total of 59 effec-
tive berths as well as inner anchorage facili-
ties. A single buoy mooring at Isipingo on the
southeast side of the bluff caters for very large
crude carriers (VLCC), which are too large to
enter the port. In addition, 302km of rail tracks
extend throughout the port area, along with
several major marshalling yards.
Perhaps most importantly, the port performs
a critical role within the city of Durban as an em-
ployer of people. It services its own industrial and
commercial region (the second largest in SA),
and much of SA’s hinterland; including the major-
ity of Gauteng traffic and a significant amount for
neighbouring countries.
The largest ships to have entered Durban
harbour are in the region of 230,000-dwt but
even larger vessels are catered for in the outer
anchorage. On two occasions in recent years the
largest operating vessel—a 564,650-dwt ULCC
tanker, Jahre Viking—underwent repairs and a
survey while at anchor off Durban. The massive
craft has a length of 458m and a beam of 69m.
In response to demand the Port of Durban
has created more container handling facilities,
including a second container terminal on Pier
One, which commenced operations in 2007.
Fleet and greetThe port also operates a fleet of tugs owned and
operated by the National Ports Authority. Six of
these are Schottel type, while later Voith Schnei-
der tugs were built at SA Shipyards in Durban, and
introduced from 2001 onwards. Seven additional
Voith Schneider-propulsion tugs, of between 65
and 70 tonne, are currently under construction
at SA Shipyards in Durban. Several will be intro-
duced to Durban over the next few years. Each
tug is maintained to SAMSA class 8 standard and
equipped for fire fighting and salvage.
The fleet handles in excess of 800 ship
movements each month and four tugs are usu-
ally on duty during daylight hours, with at least
two functioning at night. The port also employs
one work boat/tug—the Royal Tern—which has a
bollard pull of 18.7 tons.
Two diesel-powered pilot boats named Lufafa
and Jujosi—which were built by Veecraft in Cape
Town in 2009—operate when the helicopter ser-
vice is unavailable. The port’s versatile line up is
completed by two floating cranes.
The port also employs a number of launches
and cargo punts including a passenger harbour
boat called Isiponono, which is used for fascinating
93APRIL 2012 � The African Business Journal
tours of the port. Meanwhile, several private com-
panies provide commercial diving services and the
port also maintains a fully equipped diving team.
The vital task of dredging is performed by
the NPA on a regular basis in the port. The major
work is conducted by a trailing suction hopper,
with the dredged sand deposited into a recla-
mation point on the northern breakwater, from
where it is dispersed by the municipality, along
Durban’s northern beaches; loading 2,500 cubic
metres at a time. A new suction hopper dredger
is currently under construction in Europe and is
expected to enter service early in 2011.
It’s fair to say that in its illustrious nautical
history, the hustling, bustling and buoyant Port
of Durban has never been busier, or more enthu-
siastic. After all, keeping industry afloat is a full
time business. TAB
HTTP://POrTs.cO.zA/DurBAn-HArBOur.PHP
TABJ is essential reading for Africa’s top business leaders who want to stay informed of current business news, industry topics and trends. The magazine offers readers a glimpse into major African industries including construc-tion, energy, food and drink, healthcare, manu-facturing and more, through comprehensive profiles of successful African companies.
George Media is proud to promote business in Africa. Contact us today to advertise.
www.tabj.co.za
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AFRICAN BUSINESS JOURNAL
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Executives and decision makers.Chances to promote your business.
DYnAMic exPressexpress reign
094
DYnAMic exPressexpress reign
freigHT
96 FREIGHT � Dynamic express
in the modern world logistics are everything. in business, time is the most valuable currency, which is why Dynamic express offer expert organisation, innovation and application
in A fAsT-MOving environment companies
need to rely on getting their goods from A to
B, rapidly, reliably and safely. Building a repu-
tation in a fiercely competitive environment is
essential to survive. Taking pressure off peo-
ple is what Dynamic Express thrives on every
single day.
Family tiesIn 1989 Kylie Minogue was at the peak of her
pop powers, the Berlin Wall was being disman-
tled and Batman swooped into cinemas. While
all that was going on, something big was happen-
ing in the Moodley household. Indeed, it was an
event that would change their lives forever—Thee-
ru Moodley formed the family’s new business,
Dynamic Express Services.
It takes this seed of an idea to form a busi-
ness, but it is the belief, industry and pro-activity,
demonstrated by Dynamic that have made
dreams become a reality.
In a classic tale of humble beginnings the com-
pany started in a Ford Cortina (as all good compa-
nies should). Since those heady days the enterprise
has the grown to well-over 100 vehicles.
Even though the company has grown consid-
erably over the last 23 years, it is the business’
family-based ethos and hands-on philosophy that
continue to define it to this day.
Theeru’s son Arushen Moodley explains:
“We offer a very personalised transport service
and specialise in airfreight and overnight road
freight transport.”
Dynamics Express track record is sec-
ond to none and the company simply offer
the best service 24 hours-a-day, seven days
a week. The business has thrived due to
steadfastly sticking to a motto that has been
a statement to live by since day one. ‘The
Freight Company with Service Excellence’,
has a guiding inspiration for the entire team,
which is why customers can call the company
at midnight and—not only expect an answer—
but for planning to start taking place to move
their goods, immediately.
Arushen believed that knowledge of products
and customer needs have also been pivotal to
Dynamic’s sustained success.
“Our employees have over 150 years com-
bined experience in the transport industry, so we
understand our customers’ requirements and
expectations,” he says.
97APRIL 2012 � The African Business Journal
Customer servicesThe company’s classic ‘Same Day’ service en-
sures that each parcel or shipment gets to its
destination on the same day. It ships to all major
areas including Cape Town, Port Elizabeth, East
London, Durban, Bloemfontein and Gauteng.
Meanwhile, the ‘Express Service’ uses air
freight and the company endeavours to deliver
by 10am the following morning. This popular
facility also extends to all major regions across
South Africa.
In addition the ‘International Export’ service
will travel to most countries around the world.
The ‘Domestic Service’ completes the line-up.
It is the cheapest option and ensures delivery
within two to three days.
Any item big or small arrives at its destination
on time; every time and, reassuringly, all prices
for Dynamic Express services have remained very
competitive throughout its 23 years in business.
Loyal followingA fundamental reason for sustainability during
the economic downturn has been previously
established business relationships, in which
trust has been engendered over a number of
years. Dynamic Express is a brilliant example
of how forming fruitful partnerships, provides
98 FREIGHT � Dynamic express
99APRIL 2012 � The African Business Journal
essential longevity—especially during difficult
global conditions.
“Most of our contracts have been long stand-
ing with all the major players in the motor indus-
try,” Arushen says. “We understand the impor-
tant role we play in keeping their lines moving
and are passionate about delivering an excep-
tional service.”
Dynamic’s approach to the recession has
been positive and the company has refused lie
down, instead opting to stay on the road—after all
that’s what it does best!
“The economic slowdown has affected all
businesses in some way, but we just keep push-
ing forward,” adds Arushen.
Another aspect of the company to benefit
from the culture of stability has been human re-
sources. The size and commitment of the multi-
skilled team at Dynamic Express has remained
the same for the last five years.
Technically excellentAlong with its dedicated website the company
has advanced computer programmes that can
produce all costing at the touch of a button.
Furthermore, the entire fleet of vehicles are me-
ticulously tracked from departure to arrival at the
destination. This allows customers access to vital
data regarding the exact location of their freight,
and plan accordingly.
Technology and progress have always been
passionately embraced by the company.
“We will keep evolving and looking for new
ways of improving our service to clients. When
advancement comes along that will further en-
hance the performance of the company, we are
always interested,” Arushen reflects.
It is this attention to detail, excellent profes-
sional relationships and adaptability that has
brought the company so much success. It is also
the reason that the family business is such an
enjoyable one to work for.
“Our customers always let us know how much
value we add to their business. That brings a great
feeling of satisfaction,” enthuses Arushen.
In a business environment that relies on pace,
they say that the best companies are dynamic—this
one certainly is. Quite literally. TAB
BecTOn & DickinsOnin sickness and in health
100
BecTOn & DickinsOnin sickness and in health
HeAlTHcAre
102 HEALTHCARE � Becton & Dickinson
When a world’s health is at stake it helps if the equipment provided for hospitals is reliable. reassuringly, Becton & Dickinson have been first class medical products for over a century
wHen YOu’re A hundred years old, may be you
need to think about slowing down a bit? This isn’t
something Becton & Dickinson (BD) would even
contemplate. It’s been proudly moving with the
times for decades and thrives on bringing mod-
ern healthcare to the people.
Impressive centuryThe company was founded way back in 1897—
among the oldest that TABJ has had the plea-
sure of reviewing. The men at the helm were the
splendidly-named Maxwell W. Becton and Fair-
leigh S. Dickinson. As all good partnership should
be, the agreement was sealed with a good, hon-
est handshake—how times have changed!
Since those early days its headquarters have
been based in picturesque Franklin Lakes, New
Jersey. The company is a leading medical tech-
nology outfit that develops, manufactures and
sells medical devices, instrument systems and
reagents. Over the last 115 years it has gradu-
ally developed into a formidable institution and is
now a company of global standing.
“BD is dedicated to improving people’s
health throughout the world. It is focused on
improving drug delivery, enhancing the quality
and speed of diagnosing infectious diseases and
cancers, and advancing research, discovery and
production of new drugs and vaccines,” explains
CEO Peter Mehlape.
Heal the worldBD’s capabilities are instrumental in combating
many of the world’s most pressing diseases and, as
such, it employs approximately 29,000 associates
in more than 50 countries throughout the world.
Healthcare institutions, life science researchers,
clinical laboratories, the pharmaceutical industry
and the general public are all served by BD.
The three core areas of the operation are
medical, diagnostics and biosciences. BD is
proud to develop technologically advanced prod-
ucts, from new drug discoveries to drug delivery.
Between these vital stages are a host of services
that help diagnose, treat and monitor infectious
and non-communicable diseases.
“BD approaches its business in terms of
the impact it has on people’s health, thus it
considers partnerships with leading healthcare
advocates, experts, funders, governments and
grass-roots players, to be among its greatest
achievements,” enthuses Mehlape.
103APRIL 2012 � The African Business Journal
Many of BD’s products, solutions and col-
laborations were born out of Africa’s very specific
needs, which gave rise to its pioneering work in
health system strengthening. BD is championing
efforts to build health infrastructure and capacity
in Africa. About 10 years ago, infectious diseases
in Africa were the main focus of attention from
global and African public health experts. This
focus has shifted in the past two to three years
towards non-communicable diseases, which are
fast overtaking communicable diseases as the
main burden of disease on the continent.
ChampionsThe company has been instrumental in help-
ing funders, policy makers and health providers
realise how this will affect fragile health systems
and what needs to be done to respond adequate-
ly to the new threat of NCDs, while sustaining
efforts to manage HIV, AIDS, TB and malaria.
BD has always been about technological
breakthroughs. In 1924, BD manufactured the
first insulin syringe – even before insulin be-
came available. In 1980, BD introduced the first
automated mycobacteria system for TB (the BD
104 HEALTHCARE � Becton & Dickinson
BACTEC 460TB)—still the gold-standard in TB
diagnostics and a development highly relevant to
today’s TB/HIV dual epidemic in Africa.
As a result of its ground-breaking work and
the longevity of its efforts, BD has a strong pres-
ence throughout sub-Saharan Africa, with repre-
sentation offices, sales support, technical servic-
es and application training for the entire product
range. In addition, BD works with a network of
high-quality, professional distributors.
Africa unitesOut of Johannesburg, BD has succeeded in ex-
panding into other African markets in a sustained
and customer-oriented way. The company has
technical specialists who answer scientific que-
ries regarding the products and services, while
its fully trained sales specialists have a full un-
derstanding of the laboratory equipment, and of-
fer a wide range of support and advice. They also
provide guidance on issues such as healthcare,
worker and patient safety, product optimisation
and patient comfort.
Established in 2000, the BD office support-
ing the east Africa region is based in Nairobi,
Kenya. Its highly competent team in this region
offers sales, marketing and technical support for
BD products and equipment throughout Kenya,
Uganda, Tanzania, Ethiopia, Djibouti, Eritrea,
105APRIL 2012 � The African Business Journal
Rwanda, Burundi and the Seychelles. BD West
Africa, located in Accra, Ghana, also supports
operations in 22 countries in the region.
The Ghana Health Service, acting through its
National AIDS and STI Control Programme and in
collaboration with BD in West Africa, successfully
inaugurated the Ghana National Centre of Excel-
lence for laboratory training in March 2008. Over
100 laboratory workers from the region have
been successfully trained to date.
“Constant listening to the voice of customers
keeps the innovations and new product develop-
ments coming,” concludes Mehlape.
When government, funders, academics and
clinicians look for a partner to implement solu-
tions to specific health challenges in Africa, BD
has constantly been the ‘go-to’ partner. History
has been a witness to that. TAB
www.BD.cOM
fAirview HOsPiTAlModern medical marvels106
fAirview HOsPiTAlModern medical marvels
HeAlTHcAre
108 HEALTHCARE � Fairview hospital
Fairview hospital is a new institution which brings hope, innovation and, above all, ground-breaking treatment to the people that most need it
AfTer YeArs Of preparation, the modern and
greatly-anticipated Fairview Hospital opened its
doors to a grateful public just over a year ago.
The first twelve months have been a hugely excit-
ing opening chapter in what is sure to be a long,
rewarding history.
Health mattersThe commissioning of Fairview Hospital has been
the realisation of a life-long dream. After so much
hard work and dedication, it officially opened its
doors, in Lusaka, on February 14, 2011.
Fairview Hospital is a part of Medicare In-
ternational Limited (the holding company). Its
principle activity involves the operation of a
fully-fledged modern medical hospital, offering a
wide range of high quality, international standard
medical services.
The new establishment, with its advanced
technology and treatments has been designed to
serve the booming Lusaka town and surround-
ings, enhance quality, improve access and
increase efficiency in the delivery of health
care services. There is currently 200 highly
skilled and experienced staff working to make
Fairview one of the most formidable medical
institutions in Africa.
Fairview Hospital was also designed to serve
as a healthcare “hub” for the whole of Zambia, in
order to limit evacuations abroad. Furthermore,
it will assist to save and generate foreign ex-
change in the country by reducing the number of
patients seeking medical facilities abroad.
Rewarding patientsThe hospital offers a wide range of services in vari-
ous specialties, catering for outpatients and inpa-
tients, 24 hours a day, seven days a week.
The impressive outpatient department is
located on the ground floor of the hospital. This
unit provides specialty and general services to
walk-in patients and hospital members. In ad-
dition to consultations, it also provides imaging
services through fully equipped diagnostic cen-
tres and specialist procedures, such as endos-
copy, hemodialysis and minor surgical day cases.
Meanwhile, the inpatient department in-
cludes a medical, surgical, paediatric and mater-
nity wards, while also hosting a neonatal, inten-
sive care, neonatal intensive care units. There is
also an emergency room and two fully equipped
operating theatres.
Both outpatients and inpatients have access
109APRIL 2012 � The African Business Journal
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110 HEALTHCARE � Fairview hospital
to onsite ancillary services including a 24 hour
laboratory department, radiology department,
ambulance service, pharmacy department and
physical therapy services. In addition there are
patients with dedicated house call services.
Currently, the hospital has 62 beds, with a
capacity of 82.
A memorable yearAs a new hospital Fairview has embraced the
most advanced methods available. Medical Di-
rector Dr. Dimitra Papalexiou explains.
“We offer modern treatment services, com-
bining medical expertise and the use of modern
diagnostic equipment,” she says. “We are pa-
tient-centred and adhere to strict standards. All
our patients can receive comprehensive quality
care under one roof, at very competitive prices.”
Fairview is still in the early stages of evolve-
ment within Africa, however, during this period
of operation it has attracted many nationwide
clients from neighbouring countries and beyond.
“This is a truly incredible achievement for
such a young institution, given the timeframe,”
enthuses Dr Papalexiou. “I can truly say that our
vision, dedication and pioneering spirit will, in
time, spread our services across Africa.”
In the hospitals first phase of development,
111APRIL 2012 � The African Business Journal
it will set up high quality diagnostic centres and
clinics across Zambia. This will enable patients
based outside of Lusaka to gain access to mod-
ern healthcare.
The second phase involves expanding into
neighbouring countries, with the main goal to
make Fairview Hospital Lusaka the centre of
medical excellence in the area.
“Our aim is to be the leading healthcare
provider in the region and to be the first choice
hospital for patients,” says Dr Papalexiou.
Technology assetsProcuring advanced technology for the hospi-
tal is a major priority. The main investment has
been in acquiring diagnostic equipment includ-
ing digital x-ray machines, digital mammography,
CT Scanners, 3 and 4D ultrasound equipment,
fully-equipped ICU facilities (including blood gas
analysers) and two modern fully fledged operat-
ing theatres.
In addition, the onsite laboratory has been
designed to the highest of standards and is
comprised of extensive analysers that can pro-
vide a wide range of investigations. It also uses
advanced water treatment equipment, designed
to obtain the most accurate results.
The hospital’s most lucrative contracts have
been with international insurance companies
such as BUPA, Allianz, Vanbreda, GMC and local
corporations from a broad spectrum of corporate
entities such as Barclays Bank, Pepsi, COMESA
and recently the National Parliament for Zambia.
One project, however, that has definitely
stood out was Fairview’s collaboration with the
Ministry of Health and Cardiac Trust of Zambia,
in hosting the Mutima Project. In March 2011 a
team of doctors and nurses from New Zealand
arrived in Zambia to conduct open heart surger-
ies, particularly mitral valve replacements and
repairs. The hospital hosted these procedures
and successfully conducted seven open heart
surgeries.
After such a productive inaugural year
Fairview Hospital is looking forward to the fu-
ture with huge optimism, knowing that getting
results and transforming lives truly is the best
medicine. TAB
AnAPrOP PrOPerTY MAnAgeMenTland of the giants
112
AnAPrOP PrOPerTY MAnAgeMenTland of the giants
PrOPerTY
114 PROPERTY � anaprop property Management
115APRIL 2012 � The African Business Journal
When South africa started changing its landscape anaprop property Management was determined to be part of the revolution.
is THere A greater responsibility than genuinely
transforming lives, while also positively changing
the places in which they live? Fortunately, it’s a
challenge which Anaprop Property Management
relish rising to, every single day.
116 PROPERTY � anaprop property Management
Talking shopIn the last few decades South Africa has been
badly in need of modernisation. Like a superhero
tasked with bringing functionality to a nation,
Anaprop set about its ambitious plan to create
spectacular structures that would provide ser-
vices, jobs and, above all, a real future.
Anaprop was formed by Managing Director
Kiriakos Anastasiadis. His vision was to capi-
talise on the demand for retail and commercial
developments within South Africa. In 1981
Anastasiadis—a structural engineer by qualifica-
tion—started a construction company, Anastasi
Projects, and took on numerous projects for both
private and corporate clients.
From this construction company, the logi-
cal progression was to start a development
company which would finance and own the
commercial properties constructed by Anastasi
Projects, building—literally—an impressive port-
folio, in the process.
Initially these projects were managed by
external property management companies,
but as it grew—in order to provide the optimal
service and maximise potential—it was decided
to create an in-house property, asset manage-
ment and development company. Consequently,
in April 2004 Anaprop was formally created.
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117APRIL 2012 � The African Business Journal
Product placementAnaprop oversees all aspects of property develop-
ment, including project viability, concept establish-
ment, design and layout, project management,
construction and delivery of the final product.
Services also include administration, leasing,
accounting, facilities management, marketing
and business development. In addition, Anaprop
has a formidable team of fully-qualified accoun-
tants, lawyers, bankers and clerical staff, which
maintain the day to day operations of the group’s
property portfolio.
The company is very proud of its healthy and
supportive relationships with all national and
regional tenants, as well as with various local
authorities, town planners, real estate brokers,
professional engineers, attorneys and financiers.
At present Anaprop has a whopping
150,500m² in gross letting areas, with an ap-
proximate market value R1.5 billion. It also has
40 members of staff, compared to eight, only
five years ago.
Currently Anaprop has several shopping
centres, office and light commercial buildings
in its portfolio, and the company are constantly
searching for growth opportunities in either de-
velopment or acquisitions of retail, industrial and
mixed use property.
118 PROPERTY � anaprop property Management
The most lucrative project so far has been
the development of Mall@Carnival—a massive
72 000m2 Regional Shopping Centre in Brak-
pan, Gauteng.
The company is aiming to double the size of its
existing ventures to approximately 300,000m2 and
R3 billion in the next three years. This will include
increased diversify, with further investments in
Africa and internationally. It’s fair to say that this is
a company that has complete belief in its formula
and refuses to sit back.
119APRIL 2012 � The African Business Journal
Climate changeIn the last decade the property management
has changed considerably, but the company has
constantly moved with the times.
Director, Dimitri Thomas, explains: “The prop-
erty development industry has definitely changed
over the past 10 years, and brought with it new
challenges including increases in services costs,
land purchase costs, commercial supply and
demand from retailers for space.”
“Anaprop has always been a conservative
and well-organised development company,
which has enabled us to survive and embrace
change,” he adds.
By managing the entire portfolio in-house
and not over-extending financial exposure during
the boom times—as a few other larger companies
had done—the company has been able to stay
profitable and achieve above industry returns on
its portfolio.
Having delivered an exceptionally high
level of management and overall performance,
Anaprop is now poised for further growth and an-
other exciting chapter in the company’s history.
Indeed, with so many other property com-
panies falling victim to the changing conditions,
Anaprop stands out as a company that has been
able to negotiate turbulence. Thomas believes
that confidently taking control is the key.
“Property development is like driving a car on
ice; in order to reach your final destination you
constantly need to make quick educated deci-
sions and counter steer against external factors
that can put you off course,” he says.
Happy daysPerhaps Anaprop’s greatest achievement is its
status as a ‘one-stop-shop’ in the property
development industry, offering all the services
necessary to develop and manage a portfolio
successfully.
Managing Director, Mr Kiriakos Anastasiadis,
alone brings with him over three decades of ex-
perience in the property industry, and the rest of
the management team have combined 21 years
of priceless knowledge.
“We value the engineering associated with all
our projects, ensuring they are above the indus-
try benchmark in terms of return on investment,”
concludes Thomas.
Anaprop’s major satisfaction is seeing a
project progress from the seed of an idea to a
magnificent reality. It’s just as well because, over
the next few years, the company is sure to reach
even greater heights. TAB
reuTecH Miningon the radar
120
reuTecH Miningon the radar
Mining
122 MINING � reutech Mining
When you operate in a traditional business, in a country that is constantly changing, it helps if you’re a company that moves with the times. For reutech, fluency and performance have always been a top priority
123APRIL 2012 � The African Business Journal
When you operate in a traditional business, in a country that is constantly changing, it helps if you’re a company that moves with the times. For reutech, fluency and performance have always been a top priority
124 MINING � reutech Mining
fOr A quArTer of a century Reutech Radar
Systems built a formidable reputation for ef-
ficiency, innovation and the brilliant use of
technology. Recently, it has used all its nous
and expertise to successfully reinvent itself as
mining luminaries.
Remote controlReutech Radar Systems started as a defence
radar development company 25 year ago and
is owned by the JSE-listed Reunert Ltd. In 2006
Reutech Mining—a division of Reutech Radar
Systems—was formed after the successful devel-
opment of the movement and surveying Radar
(MSR) system for the mining industry. It currently
has a multi-skilled and permanent workforce of
more than 180 engineers and technicians
“The key of the purpose of the enterprise is
to provide the surface mining industry with highly
reliable, state-of-the-art and practical geotechni-
cal measurement and monitoring equipment,”
explains Marketing Director Jan de Beer.
The company’s sophisticated gadgetry can
detect movement of under a millimetre on slope
faces of surface mines from a distance of up to
2,500 meters. The design, remote monitoring
and control abilities allow the system to
calculate these measurements in real-time, on a
125APRIL 2012 � The African Business Journal
126 MINING � reutech Mining
permanent, all-day and all-weather basis.
The measurements are then stored and
tracked by the system and software, provid-
ing mining operations with vital early warnings
of possible slope failures, enabling the rapid
evacuation of personnel and equipment. The
remarkable technology prevents costly dam-
age, minimises the risk to workers, while op-
timising the productivity. It’s fair to say this is
ground-breaking technology—literally.
The company is currently involved with
several concurrent ventures, notably as the
preferred supplier to Barrick Gold Corporation
global operation.
Different strokesSince the turn of the century mining has become
increasingly focussed on safety and profession-
alism, recognising the unpredictable conditions
inherent in the industry.
De Beer believes that this new approach has
been pivotal to the success of the company. “It
has generated an enhanced interest in the type
of equipment that we manufacture. Encouraging-
ly, the clients have become much more demand-
ing in terms of availability and reliability of these
systems,” he says.
Reutech Mining has typically focussed its op-
erations around the geotechnical requirements
127APRIL 2012 � The African Business Journal
THE
AFRICAN BUSINESS JOURNAL
TABJ is essential reading for Africa’s top business leaders who want to stay informed of current business news, industry topics and trends. The magazine offers readers a glimpse into major African industries including construction, energy, food and drink, healthcare, manufacturing and more, through comprehensive profiles of successful African companies.
George Media is proud to promote business in Africa. Contact us today to advertise.
www.tabj.co.za
275,803: Monthly visitors.
Executives and decision makers.Chances to promote your business.
128 MINING � reutech Mining
Shrike Marine the company
Shrike Marine is a young and exciting electronics company founded in 2005. With roots based in high frequency RF and power supply designs, in its few years of operation Shrike has developed six products specifically for use by the military. Shrike offers leading-edge cost-effective solutions utilizing COTS (completely off the shelf) equipment to significantly reduce development time, cost and risk. It’s commitment to providing extremely high levels of service, cost-effectiveness, quality and innovative solutions make it the ideal partner of choice, helping customers to be successful in their projects. Moving forward into the future Shrike has started its own R&D projects to map its place into the RF market. These projects include a radio altimeter for the UAV market, as well as a broadband IFM (instantaneous frequency measurement) receiver heart to ESM systems.
Fulfilling our customers needs
Shrike Marine is a flexible design house that that is able to rapidly put together prototypes for integration into our clients’ systems. We also have the experience to put these prototypes through qualification and the facilities at our disposal to deliver the production items. Shrike Marine is readily able to produce both low and high quantities of the end product.
Cost effective, reliable solutions
Every project has a budget. Cost effectiveness of the final product is vital for its success in the market place. Shrike Marine understands this and as result, much effort is placed on finding a cost effective solution that will meet the requirements as well as the budget. Although cost is constantly monitored, a cornerstone to Shrike Marine’s success is the quality of our products. This is achieved through thorough qualification and rigorous environmental stress screening that ensure that our clients receive a solution that will not let them down.
Building close relationships
The key to an excellent solution is a clear understanding of the problem, which is why building a close relationship with our clients is so important to us. Candidness and open dialogue are key to the development process at Shrike Marine ensuring we understand what you need.
Going the extra mile
A project seldom goes exactly as planned which is why it is important to have suppliers who understand this and are able to adapt as your project progresses. Shrike Marine prides itself on flexibility and being able to assist our clients in meeting their milestones successfully. Be it with pre-production items or unforeseen requirements, we will go the extra mile.
A43 Power Supply Unit (A43PSU)
The A43 power supply unit is a highly efficient supply specifically built for use with radio. Fitting onto the radio’s battery plate, it is designed to enable the normally battery operated radio to be powered using a generator. This enables continuous radio operation without the need to change batteries.
The main design challenge of the A43PSU was to ensure that the switch mode supply did not cause interference with the radio. Careful input and output filtering achieved this and ensured that output noise and ripple was reduced to a minimum and that noise was not injected onto the input lines.
Details Value
Shrike Part No DEN1000
Number of units in operation 60
AC Input 180 – 250 Vac
DC Input 11 – 18 Vdc
DC Output 14.2 Vdc
Output Noise & Ripple < 45mV
Output Power 30W upgradeable to 150W
Overload Protection trip threshold 2A ± 5%
User enabled Built-In Test LED displays output status
Ingress Rating IP67
Environment Standards MIL-STD-810F
EMI/EMC Standard MIL-STD-461E
LAN Control Panel
The LAN Control Panel was designed and built to facilitate the rapid deployment of our client’s system as well as allowing them to utilize fiber to copper converters. It is designed to fit into a backpack frame, together with other key elements of the system. Connections are made within the frame, and connectors on the face of the LCP are available to connect the frame to the rest of the system.
The copper to fiber converters used require power. The LCP conditions the power supplied by battery. Key to the LCP is its efficiency and ruggedness as the backpack frames may be air dropped into regions where they are required. The LCP can be immersed in a meter of water for an hour, provided the dust caps are in place and the frame’s interconnections are made.
Details Value
Shrike Part No DEN2000
Number of units in operation 9
DC Input 10 – 35 Vdc
DC Output 5 Vdc
Output Noise & Ripple < 35mV
Output Power 0.5W
User enabled Built-In Test LED displays output status
Ingress Rating IP67
Environment Standards MIL-STD-810F
EMI/EMC Standard MIL-STD-461E
Shrike Marine’s ACPDU attached to a backpack frame for portability
An interconnection bow (rear) built for a cost constrained client, intergrated into their unit.
Introduction to
C o n t a c t u s
Contact Person Drew Guthrie
Email dguthrie@shrikemarine.com
Phone +27 21 418 6710
Mobile +27 84 448 4743
Contact: Drew GuthrieEmail dguthrie@shrikemarine.comPhone +27 21 418 6710Mobile +27 84 448 4743
Fulfilling our customers needs
Shrike Marine is a young and exciting electronics company founded in 2005. With roots in high frequency RF and power supply designs, in its few years of operation Shrike has developed six products specifically for use by the military. Shrike also manufactures tailor-made cable assemblies to military specifications and is a supplier of application-specific high frequency RF and power supply systems. Shrike offers leading-edge cost-effective solutions utilizing COTS (completely off the shelf) equipment to significantly reduce development time, cost and risk.
It’s commitment to providing extremely high levels of service, cost-effectiveness, quality and innovative solutions make it the ideal partner of choice, helping customers to be successful in their projects.
• Cost Effective• Reliable• Quality Products• Building Close relationships
129APRIL 2012 � The African Business Journal
of clients; having worked extensively with repre-
sentatives across the board, enabling the produc-
tion if the most cost effective and reliable prod-
uct available on the market. The MSR is currently
operating in 16 countries on four continents, with
various new expansions planned in the next few
months.
Over the past year the company has achieved
an average global operational availability of 98.7
per cent—a record high in the industry.
Another genuinely unique aspect of Reutech
Mining is its user guarantee, which automatically
provides a refund of money paid, in the event of
agreed levels of availability not being achieved.
130 MINING � reutech Mining
131APRIL 2012 � The African Business Journal
132 MINING � reutech Mining
Rock solidReutech is passionate about continuously im-
proving the product range. The recently-released
‘Rapid Align’ functionality is another notable
milestone. For the first time in the history of this
technology, a system will be able to be relocated;
and all historical data of areas that have been
monitored before, preserved for future use.
In addition, the latest addition to the MSR
range of products is the ‘060’ model. This sys-
tem was designed in accordance with require-
ments from various major players in the coal min-
ing industry. It provides essential shorter range
scanning (up to 600 meters) and the modular
design of the system allows clients to have a fully
customised solution, according to their specific
requirements. The different options also allow a
choice between various power supplies, combi-
nations and forms of transport.
“The initial feedback of the prototypes and
demonstrations has been tremendously positive
and we look forward to commissioning these sys-
tems on the various sites,” enthuses de Beer.
ExpansionReutech Mining has achieved most of its initial
goals set since the business was created
and, in terms of operational availability and
133APRIL 2012 � The African Business Journal
functionality, it has risen to become the
undisputed world leader. In the near future
there will be further technological wizardry,
which has been designed with the exact
requirements and specifications determined
by the company’s ever-burgeoning network of
clients and colleagues across the globe.
After its first major supply contract—for An-
glo Coal SA in 2006—Reutech Mining has also
expanded extensively geographically, including
sojourns to Namibia, Botswana, Tanzania and
Mali, as well as Zambia.
During the next exciting chapter of the
company’s, already impressive story, it will be
focussing on enhancing its services, developing
representation in the rest of Africa and generally
increasing its presence across the continent.
Mining is of course a very traditional busi-
ness but Reutech have provided beyond any
doubt that combining modern ideas with an
industry that’s as old as the hills, can be a formi-
dable proposition. TAB
www.reuTecHMining.cOM
Design fOr lifeG&h Consulting engineers
134
Design fOr lifeG&h Consulting engineers
Mining
136 MINING � G&h Consulting engineers
137APRIL 2012 � The African Business Journal
For over a quarter of a century G&h has been applying its innovative designs and engineering capabilities to a range of ambitious projects.
138 MINING � G&h Consulting engineers
g&H HAs BuilT a formidable reputation in the
mining industry for producing cutting-edge op-
erations that perform brilliantly, meet detailed
specifications and, above all, last the distance
in a tough environment.
Rock legendsBack in the halcyon days of 1985, some unfor-
gettable occasions were unfolding. Live Aid was
using the universal language of music to save
millions of lives, a chap with orange hair became
the youngest person to win the Wimbledon tennis
championship and, perhaps most importantly,
Greenblat & Hutton (G&H) was formed by original
partners, Motty Greenblat and Bill Hutton.
Initially, the G&H partnership was assigned
by the JCI Coal Division to supply engineering
resources for a major coal mine feasibility study.
At the conclusion, it was implemented and se-
nior G&H engineers played a leading role in the
design, engineering and commissioning of the
overall project.
Between 1990 and 1995 key personnel from
G&H also played a leading role in numerous JCI
projects, principally two additional new ferro-
chrome furnaces at CMI Lydenburg, several plati-
num furnace upgrades (Waterval and Mortimer),
the Foxsmelt platinum furnace project (Waterval)
and various underground projects for the JCI
Gold Division, including an underground backfill
venture for Ashanti Goldfields in Ghana.
Chipping awayDuring 1995 JCI was separated into various new
companies and from this the Anglo Platinum
organisation was formed. G&H consultants then
played major roles in the development and ex-
ecution of various Anglo Platinum key projects.
Notably, the Bafokeng Rasimone Platinum Mine
(BRPM) concentrator project, Potgietersrust Plati-
num 425ktpm expansion project and Lebowa
Platinum 50ktpm UG2 concentrator.
In August 2000 Anglo Platinum downsized
its internal projects division and G&H absorbed a
large portion. The partnership has grown steadily
since then, becoming an independent project
house, overseeing many large scale projects.
During 2003 G&H completed the design,
engineering, construction management and com-
missioning (EPCM) of the platinum Polokwane
smelter project—also for Anglo Platinum—providing
a complete multi-disciplinary service encompass-
ing all disciplines, including site management.
Continued successMeanwhile, G&H continued its extraordinarily
prolific decade by completing phase 1 of the
design and engineering of the Lion Ferro-chrome
139APRIL 2012 � The African Business Journal
140 MINING � G&h Consulting engineers
smelter project for Xstrata. The plant incorpo-
rated two pelletising plants, two large rotary kilns
and two furnaces.
Construction and commissioning of the proj-
ect was undertaken by Xstrata and was success-
fully completed during the second half of 2006.
G&H were subsequently awarded the engineering
and design of the Lion Phase 2 project, which is
due for completion by the second quarter of 2013.
During the last quarter of 2006, the com-
pany completed a large portion of a study for the
Minpro Smelter Expansion Project, for Impala
Platinum. This project was subsequently awarded
to G&H for the execution of the ‘Shared Services’
package of the Furnace No. 4 upgrade scope and
this was completed in 2008.
In addition, during the first quarter of 2008,
G&H were awarded the execution of the new Slag
141APRIL 2012 � The African Business Journal
Cleaning Furnace (SCF2) project at the Water-
val Smelter complex of Anglo Platinum and the
upgrade of the concentrate smelting furnace at
the Mortimer complex. This was completed in
2011 and the slag cleaning furnace is currently
in execution phase.
PhilosophyBusiness Development Director Robert Allen
believes that G&H’s unwavering commitment
to professionalism and efficiency has been
instrumental to its success.
“G&H believes in Total Project Management,”
he explains. “By applying sound project manage-
ment and design principles we are able to com-
plete projects on time and within budget. Over
the years we have developed into a leader in the
design and engineering of platinum and ferro-
chrome, concentrator and smelting operations.”
“We have the in-house knowledge to design
and execute projects for mineral processing fa-
cilities from initial treatment of mined ore to the
production of a saleable product. Our knowledge
base covers the majority of the minerals and
metals processing operations,” he adds.
While implementing innovative design con-
cepts, the G&H design teams incorporate the
main engineering disciplines of process, me-
chanical, civil and structural engineering and
pride themselves on producing cost-effective
designs, delivering projects to the client’s re-
quirements and satisfaction.
Modern marvelsThe design and construction phases of all G&H
projects are simplified and streamlined, through
the use of sophisticated 2D and 3D computer
packages and other modeling tools.
The G&H design and execution approach
follows a logical sequence, based on all the
functions required. Typically, these procedures
include; project mobilisation, eengineering disci-
pline design criteria, block flow and process flow
diagrams, plot plans, equipment specifications,
hazard and operability studies, detailed design,
construction management, optimisation and
training and, finally, hand over.
With so many hugely successful projects
completed and a great many in the pipeline, it’s
no wonder G&H sticks to the formula that has
brought them such a fine reputation in the industry.
Success has never been so well designed. TAB
www.gHcc.cO.zA
BellzOne PlcMetal maestros142
BellzOne PlcMetal maestros
Mining
144 MINING � Bellzone plC
Bellzone’s projects are built on a bedrock of passion, experience, expertise innovation and exploration. The company now looks forward to the most lucrative chapter in its history
145APRIL 2012 � The African Business Journal
146 MINING � Bellzone plC
BellzOne Mining Plc—an exploration and resource
development—was founded by Nik Zuks only three
years ago, but already it has some big ambitions,
which it is determined to realise. The company has
already secured iron ore, nickel and copper permits
in the Republic of Guinea, West Africa and these
credentials have helped to guide the company’s
early fortunes, as they establish the most lucrative
areas for its operations.
Detective workThe company is currently involved with the vital first
phase in Forécariah, with initial production due for
the first quarter of 2012. It has jointly funded the
venture, which involves carrying out accelerated
investigative activity, 30 and 80 kames from the
Guinea coast. Projections suggest that there will be
a production rate of 3-4 mtpa of oxide ore, soaring
to a rate of 10 mtpa in 2013.
In addition the company’s promising project
at the Kalia Mine is due to produce 20 million
tonnes of iron-ore per annum in 2014, expanding
to a capacity of a whopping 50 million tons per
annum in 2018. Drilling results and internal esti-
mates indicate that the project has the potential
to host more than 10 billion tonnes of magnetite
and two billion tonnes of oxide. The massive
quantities also make the fledgling company any
147APRIL 2012 � The African Business Journal
As a stable and reliable partner and specialised contractor,
Dredging International is involved in the development of
Eko Atlantic City in Lagos, Nigeria.
Once again we leave behind positive tracks to the benefit
of future generations.
Creating new land tofoster development.
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Member of the DEME Group DEME: creating land for the future
Dredging International nvHaven 1025 - Scheldedijk 30 B-2070 Zwijndrecht, Belgium T +32 (0)3 250 52 11F +32 (0)3 250 56 50info@deme.bewww.deme.be
adv_Bellzone Mining.indd 1 27/02/12 08:56
148 MINING � Bellzone plC
extremely good prospect for investment, espe-
cially at these early stages.
Chief Financial Officer Terry Larkan explains
the impressive figures: “We have a 50 per cent
commitment to the current mission at Foré-
cariah, which has a total capital expenditure
of $208 million. Our Kalia project will see us
committing an even greater capital expenditure
programme of $2 billion.”
Another massive investment, which com-
mences now, and runs through to 2018, will com-
mit in excess of $3billion to construct a revolu-
tionary, commercially operated railway and port in
Guinea for the export of bulk commodities such
as iron ore. The facility will transform the lives of
thousands in the area.
On the mapRecently, the company has completed a highly
sophisticated mapping and surface sampling
programme, identifying prospective nickel and
copper projects. An aerial survey is also currently
being conducted to further define areas for a tar-
geted drilling programme. These techniques will
eradicate the time consuming practice of drilling
at random, or on a hunch. By carryout research
149APRIL 2012 � The African Business Journal
D&B Suppliers
150 MINING � Bellzone plC
thoroughly and reducing risk the yields will also
be significantly higher.
Further afield, Bellzone has acquired the
rights to buy 70 per cent of whale from Compag-
nie Miniere de L’Ouest Africain in South Africa.
It is undertaking geological studies on the tene-
ments which could be iron ore rich.
Larkan reflects that although they are a
very young company, an adventurous approach
will pay dividends. “We have not been around
long, but have proved that our strategies for
structuring, engagement with community, en-
vironmental considerations and a safe working
ethos have formed the company culture and
proved it has very solid foundations.”
“There is a real sense of pride combined with
huge excitement as we progress towards our tar-
gets. We have worked very hard and the next ten
years will be the most important in the life cycle
of the company,” he added
Going to workBellzone is proudly Africa centric. The majori-
ty of the workforce—which has ballooned from
three to 200 in less than 36 months—and all
assets are based in Africa. As the company
grows so will its presence and the aim is to
gain status as one of the top iron-ore outfits
in Africa.
151APRIL 2012 � The African Business Journal
152 MINING � Bellzone plC
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D
Mine TiMes: HOw BellzOne’s figures sTAck uP
Kalia Mine
TheCompany’sflagshipproject,theKaliaMine,isplannedtocommence
productionin2014,producingironoreandironoreconcentrateatarate
of50milliontonnesperannumby2018.Theminehasa6.16billiontonnes
magnetiteJORCresourceandanoxideJORCresourceof193milliontonnes.
ASupergeneBIFJORCresourceof92.5milliontonnesat36.5percent
Fehasbeendelineatedandshowsthepotentialtoupgradetoproduce
37milliontonnesof63percentFematerial.TheoxideandSupergene
BIFresourceshavebeenestablishedfromjust10.5percentofthe55km2
mappedsurfaceoxidesontheKaliapermit.Drillingresultsandinternal
estimatesindicatethattheKaliaMineProjecthasthepotentialtohostmore
thantenbilliontonnesofmagnetiteandtwobilliontonnesofoxide.
153APRIL 2012 � The African Business Journal
The entire leadership team has extensive
experience of mining all over the continent and
a comprehensive understanding of the unique
challenges, opportunities and advantages in
all conditions within the region. The melting pot
of talent is another example of the company’s
determination to be prepared for every eventual-
ity by using the finest manpower, technology and
knowledge in the industry.
As well as the deals that are already on the
table, the team are constantly on the lookout for
further projects throughout Africa and over the
next few years will provide the foundations for the
next half century.
When billions come into the equation,
whether it is dollars or tonnes, it is surely proof
that young companies can think big too. Natu-
rally, Bellzone are in it for the long haul—quite
literally. TAB
Mine TiMes: HOw BellzOne’s figures sTAck uP
Kalia Mine
TheCompany’sflagshipproject,theKaliaMine,isplannedtocommence
productionin2014,producingironoreandironoreconcentrateatarate
of50milliontonnesperannumby2018.Theminehasa6.16billiontonnes
magnetiteJORCresourceandanoxideJORCresourceof193milliontonnes.
ASupergeneBIFJORCresourceof92.5milliontonnesat36.5percent
Fehasbeendelineatedandshowsthepotentialtoupgradetoproduce
37milliontonnesof63percentFematerial.TheoxideandSupergene
BIFresourceshavebeenestablishedfromjust10.5percentofthe55km2
mappedsurfaceoxidesontheKaliapermit.Drillingresultsandinternal
estimatesindicatethattheKaliaMineProjecthasthepotentialtohostmore
thantenbilliontonnesofmagnetiteandtwobilliontonnesofoxide.
CIF – Project, Financing & Infrastructure Partner
BellzonehasaDefinitiveAgreement(“theAgreement”)withChina
InternationalFundLimited(CIF).TheAgreementgivesCIFrightoffirst
refusaltopurchasetheKaliaMineProject’sproductionatmarketrates
andCIFcommitstoprovidingBellzonecommerciallyrelatedfundingfor
thedevelopmentoftheKaliaMineProject.
TheAgreementcontainsCIF’scommitmenttofundandbuild
commercially-operatedrailandportinfrastructurethatwillenable
BellzonetoexportproductionfromtheKaliaMineProject.The
infrastructureisbeingdevelopedbyKaliaHorizonMineralsPteLimited,
anentitythatis90percentownedbyCIF,withBellzonehavinga10per
centcarriedinterest.TheagreementallowsforBellzonetobethemost
favouredcustomerwithpermanentpriorityaccess.
BuilDing BriDgesStefanutti Stocks154
BuilDing BriDgesStefanutti Stocks
cOnsTrucTiOn
156 CONSTRUCTION � Stefanutti Stocks
157APRIL 2012 � The African Business Journal
as one of South africa’s leading construction groups, and with the capacity to deliver a range of projects in some of africa’s toughest markets, Stefanutti Stocks is playing a leading role in developing the continent’s infrastructure through its construction expertise.
wiTH MOre THAn 12,000 employees on its books and the capacity to
deliver a variety of projects across Africa, Stefanutti Stocks (Pty) Ltd is
playing a leading role in the transformation taking place across the conti-
nent’s construction market.
158 CONSTRUCTION � Stefanutti Stocks
Constructing connectionsThis impressive, South-Africa based multi-disci-
plinary group is aiming to become the preferred
construction partner for all of its stakeholders
as it establishes a comprehensive track record
of industry excellence.
Along with its South African Level 3 B-BBEE
contributor accreditation, the group has been
awarded a Grade 9 rating from the South African
Construction Industry Development Board (CIDB),
proving that it has an uncapped capability for bid-
ding and executing projects.
From the construction of a 129-room hotel in
Cape Town and improvement work on Bospoort
Dam, to the widening of Ben Schoeman Dock,
Stefanutti Stocks has been utilising its skills
and abilities across a wide range of projects in
Southern Africa.
159APRIL 2012 � The African Business Journal
The company has established a presence
in Angola, Botswana, Mozambique, Namibia,
Swaziland and Zambia and, along with its home
base of South Africa, has worked in all SADEC
countries and has even ventured further north.
On trackIn partnership with Stefanutti Stocks Geotechni-
cal, Stefanutti Stocks Civils recently completed
a project in remote Sierra Leone to construct
three rail bridges.
Tendered to African Minerals Limited, the
contract was part of a 120 kilometre railway line
project with the aim of transporting iron ore from a
mine in the Tonkolili district to the port of Pepel.
The joint venture was completed and handed
back to the client on time despite a tight sched-
ule and logistical problems associated with the
isolated nature of the project.
A limited geotechnical study was undertak-
en, which resulted in the decision to installed
permanently-encased oscillated piles on two
of the bridges, and permanently encase auger
piles on the other.
Stefanutti Stocks Geotechnical approached
Bauer Germany to supply two BG28 piling rigs
and one MC64 crawler crane along with spe-
cialised equipment for piling through boulders;
equipment that ensured the piling phase of the
project was completed successfully and on time.
Two of the bridges, known as Tonkolili and
Tabai, consisted of three 22-metre-long spans,
while the Rokel Bridge consisted of five 22-me-
tre-long spans.
Taking stockAnother Stefanutti Stocks Structures Business
Unit Division, Stefanutti Stocks Marine also
160 CONSTRUCTION � Stefanutti Stocks
secured a marine design and construction con-
tract with its preferred JV partner BAM Interna-
tional from Holland for AML.
This contract involved the design and con-
struction of mooring dolphins, fenders and naviga-
tion aids for the Pepel Port offloading facility. The
contract was completed ahead of schedule and
facilitated the out-loading of ore on time which
was a major achievement for the total project.
According to the company, the single big-
gest challenge on the project was its remote
nature and the resulting logistical challenges
associated with it.
Another challenge it was forced to overcome
was the annual rainfall Sierra Leone experiences.
With two seasons a year rotating between dry
and wet conditions, the wet season would end up
testing the construction teams to their limits.
Despite restrictions being placed on the
schedule of the projects by the wet season,
which lasts from July to December, the construc-
tion firm was able deliver each of the structures
on time within a six-month time frame.
Model professionalAs one of South Africa’s leading construction
groups, Stefanutti Stocks is looking to maximise
its shareholder value as it aims to build a sus-
161APRIL 2012 � The African Business Journal
tainable business presence in Africa, as well as
in targeted international markets.
As a multi-disciplinary construction firm, the
company is well positioned to manage a range of
projects of any scale, including large-scale building
construction, mechanical and electrical power struc-
tures, public private partnerships, services for the
mining industry, and road and earthworks projects.
On its website the company declares: “We will
create a desirable place of work, a natural home
for creativity, enthusiasm and personal safety.”
Through its projects, such as the three bridg-
es development undertaken in Sierra Leone, the
company has proved time and time again that it
is able to deliver on time, even if working under
difficult conditions and in remote environments
where its construction teams excel under those
African conditions they know so well. TAB
www.sTefAnuTTisTOcks.cOM
Towards 500Mt iron ore & 2016 productionBAOBAB resOurces
162
FROM RUONI SOUTH LOOKING TO THE NORTHEST WITH RUONI NORTH HILL TO THE LEFT AND TENGE MOUNTAIN TO THE RIGHT. PHOTOGRAPHY C/O BAOBAB RESOURCES LTD.
Towards 500Mt iron ore & 2016 productionBAOBAB resOurces
Mining
164 MINING � Baobab Resources
With a global JorC resource inventory nearing 500 million tonnes iron ore, plans for production in 2016 backed by access to low-cost power, abundant coal reserves and plenty of options for advantageous logistics and port solutions, aiM-listed Baobab resources is in a prime position as Mozambique’s bulk-commodity boom in the Tete province gathers pace.
165APRIL 2012 � The African Business Journal
CAPTION: PHOTOGRAPHY C/O BAOBAB RESOURCES LTD.
166 MINING � Baobab Resources
CAPTION: PROJECT GEOLOGIST NORMAN GWAZA. PHOTOGRAPHY C/O BAOBAB RESOURCES LTD.
167APRIL 2012 � The African Business Journal
MAnAging DirecTOr Ben James, of Mozam-
bique-focused emerging iron ore miner-exporter
Baobab Resources Plc. (AIM: BAO) (“Baobab”),
has many reasons to be cheerful as he readies to
move his clan to Maputo.
The miner is a well-established player in
Mozambique’s tier one coking coal and iron ore-
abundant Tete province in the central north of the
country, where rapid mine and associated infra-
structure development has the region tipped to
supply around 20 per cent of coking coal hitting
global markets in the next decade. Following a
highly successful scoping study in 2011—which not
only outlined a viable iron concentrate model, but
an economically robust, vertically integrated smelt-
ing operation that exploited the project’s unique
access to low cost power and coal reserves—Bao-
bab’s Massamba Group iron / vanadium / titanium
project’s (“Tete project”) global resource inventory
will be closing in on 500 million tonnes (currently
324 million tonnes) when the Tenge deposit re-
source statement is released in March.
“The reason why steel mills are located on
the coast, we believe, is that you need to bring
together three critical commodities: Iron ore, coal
and power,” James says.
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Johan TerblancheGeneral ManagerM +27 (0) 727 369 186
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Digital Surveying offers directional surveying & geophysical logging services throughout Africa. We are currently servicing major mining houses such as De Beers, Barrick, Anglo American, Boabab Resources and many other covering countries such as Botswana, Tanzania, DRC, Mozambique & Ghana. Digital Surveying also services drilling
companies supplying various survey & core orientation equipment. Our association with DHSA in Australia allows Digital Surveying to utilize the latest technology in downhole surveying equipment, and we pride ourselves in providing a quality service with minimal drill rig downtime, at competitive prices.
OFFERING MAGNETIC AND GYRO SURVEYING TOGETHER WITHGEOPHYSICAL LOGGING SERVICES TO THE MINING, EXPLORATION ANDCIVIL ENGINEERING SECTORS
168 MINING � Baobab Resources
“In Tete we’re at the confluence of all three.
This opportunity is on our doorstep.”
So are some of the world’s largest and
most capable bulk resource developers. Min-
ing multinationals Rio Tinto and Vale S.A. are,
like Baobab, significant in Tete—as are tier one
steel producers Nippon Steel Corp, POSCO,
Tata Steel and Jindal.
In these globally dominant entities, Baobab
has its pick of potential partners. In its 632
square kilometre Tete project, the company has
a large and growing multi-deposit resource in-
ventory, well-located to infrastructure, low-cost
power access and neighbouring multi-billion
tonne coal projects. And on the eve of James’
move to Maputo, Baobab remains on track to be
one of the cornerstones behind Tete’s future as
a globally significant steel industry region as its
pre-feasibility study (PFS) unfolds towards 2016
first production.
Pig iron & PFSAs a joint venture between Baobab (85 per cent)
and World Bank Group member the International
Finance Corporation (15 per cent) (“IFC”), the Tete
project, located immediately north of provincial
169APRIL 2012 � The African Business Journal
capital Tete, houses two areas of magnetite-tita-
nium-vanadium mineralisation and is bordered by
both Rio Tinto and Vale projects.
As 2011 drew to a close, Baobab saw off
the year with an inferred JORC resource of
324 million tonnes at 30 per cent iron (Fe) at
the project and a scoping study, conducted by
Coffey Mining Pty Ltd. (“Coffey Mining”), which
outlined two favourable development scenari-
os: Producing a concentrate or upgrading to a
pig iron product by way of mine-mouth smelt-
ing. Production of pig iron, James says, would
enable Baobab to provide a high value, high
demand product, broadening its market base
and mitigating its requirements for road, rail
and port logistics.
“It would result in supporting fewer tonnes at
a much higher value which we could quite easily
truck to port. While it is desirable for us to have
rail infrastructure access, it isn’t critical for proj-
ect success,” he says.
“There are a lot of players considering
trucking—Vale are trucking as we speak—and
there’s a real opportunity there for us to be in
production, exporting product, well before the
rail is at full capacity.”
CAPTION: PHOTOGRAPHY C/O BAOBAB RESOURCES LTD.
170 MINING � Baobab Resources
This option continues to prove attractive as
further electric arc furnace (EAF) steel plants un-
dergo commissioning and demand for crude and
finished steel products carries on strongly. It is, in
part, made possible by Baobab’s advantageous
access to low-tariff hydroelectric power, coal and
water; all components which pose opportunities
to add value onsite and improve a future proj-
ect’s baseline low CAPEX/OPEX should the com-
pany choose this mine-mouth smelting scenario.
Each opportunity to fine-tune profit margins will
be factored into the PFS now underway, which
commenced after the company surpassed, by a
significant margin, its 2011 300 million tonnes
resource delineation target.
Each stage of the PFS is accounted for. Stage
One, during the first half of 2012, includes test-
work covering concentrate beneficiation. Stage
Two, from the second quarter, addresses the
smelting of concentrate to produce pig iron—and
Stage Three, further upgrades to generate steel
products, will take shape alongside the Environ-
mental Impact Assessment (EIA).
“The IFC has committed to its 15 per cent
contributing interest in the pre-feasibility pro-
gramme this year. The PFS will be managed from
Mineral Title application, maintenance & management
Ground selection & target assessment
Geological Mapping and remote sensing for mineral exploration
Conception, planning, running & supervision of mineralexploration programs
Planning, procurement & supervision of drilling programmes
Customised GIS databases creation & management forvarious purposes
Mineral resource estimation
Hidrogeological studies;
Environmental surveys & impact assessment studies
►►►►
►►
►►►
Maputo Head O�ce: Rua B, 233 - Bairro COOP, C.P. 832, MAPUTO • Tel/Fax: +258 21 414841 • Cell: +258 82 305 8339 • Email: gondwana@gondwana.co.mzTete O�ce: Av. Independência • Tel/Fax: +258 252 24504 • Email: gondwana@tdm.co.mz
www.gondwana.co.mz
171APRIL 2012 � The African Business Journal
CAPTION: PHOTOGRAPHY C/O BAOBAB RESOURCES LTD.
172 MINING � Baobab Resources
Perth by our project engineer, Christian Kunze,
whom we had the good fortune to bring on last
year to oversee the scoping study. We’ve signed
up Coffey Mining to cover mine design and envi-
ronmental aspects and brought in strong exper-
tise in the form of Doctor John Clout to focus on
our beneficiation testwork. For our pyrometal-
lurgical testwork and process engineering we’ve
got SNC Lavalin lined up,” James details.
These well-calculated plans received anoth-
er boost ahead of the March resource update
for the Tenge deposit, when Baobab announced
initial results from resource drilling that delin-
eated broad packages of mineralisation.
To 500Mt & Tete pledgesOn February 16, as part of encouraging updates
on drilling at the Tenge and Ruoni deposits within
CAPTION: SENIOR GEOLOGIST PILANI MANGEZI. PHOTOGRAPHY C/O BAO-BAB RESOURCES LTD.
173APRIL 2012 � The African Business Journal
the Tete project, Baobab announced results
from eight of the 23 drill holes at Tenge. These
included significant intercepts of up to 83 metres
at an average head grade of 36 per cent iron and
weighted average concentrate grade of 59 per
cent iron, 0.8 per cent vanadium and 12 per cent
titanium at a mass recovery of 43 per cent.
James says that these results are precisely
aligned with Baobab’s expectations and
174 MINING � Baobab Resources
“correlate particularly well with the Ruoni North
resource block”
The March announcement of the Tenge
resource statement is expected to expand
the global resource base towards 500 million
tonnes, he explains. Furthermore, 2012 step-
out resource drilling programmes in the Tenge/
Ruoni area are expected to add substantially to
the global inventory while the Chimbala pros-
pect area presents further blue-sky upside for
future resource development.
“The 93 million tonne ruoni north resource block alone under-pins a meaningful 25-year mine life in the scoping study.” James explains. “This represents just a third of the current resource base and a fraction of the inventory we expect to define by year end, clearly demonstrating the scope for scaling up production. We could be talking final produc-tion of up to four million tonnes pig iron per annum over a 30 plus year mine life — the kind of numbers that many larger players would be interested by, particularly backed by a resource base of size.”
“The project is now maturing to a point where
we need to address the social responsibility ini-
tiatives we’ll be implementing when we get into
production. That’s where we’ll seek advice from
the IFC,” he adds.
“It’s their forte. They’re involved with vari-
ous governments throughout Southern Africa
in terms of infrastructure development and
they’re champions of infrastructure not mo-
nopolised by the mining majors—exactly what’s
happening in Mozambique.”
Coupled with Baobab’s reduced infrastruc-
ture requirements and better value-for-tonnage
product options outlined by the scoping study,
the IFC’s negotiating expertise will prove highly
favourable as the company accounts for its
logistical needs. Furthering these discussions
and initiating conversations about social initia-
tives are another part of the James family move
to Maputo, and given how globally significant
Tete is set to be for the steel industries, James
himself believes it is vital to be present as these
arrangements are made.
“The government is keen for us to be able to add much value in country as possible,” he emphasises.
”Tete is no longer a small regional centre—it’s
a rapidly developing global mining hub in a coun-
try that’s going through a political and economic
renaissance [and] a great place to be working.”
James’ vision of a Mozambican steel indus-
try in Tete should further materialise as Baobab
unveils the resource upgrade at Tenge in March,
taking the global resource towards 500 million
tonnes as the PFS paves the way towards utilis-
ing the unique combination of resources and
infrastructure to support the establishment of a
pig iron production facility.
Having seamlessly made the transition from
explorer to developer, Baobab continues to
deliver on every estimate it makes. As conver-
sations advance about high demand products,
securing supply routes and ensuring economic
and social prosperity along the way, so does an
incoming miner with one of the strongest posi-
tions in Tete to date. TAB
www.BAOBABresOurces.cOM
AnAlYsT cOMMenTCharlie Gibson, who heads up mining
research at Edison Investment Research,
has just returned from an extensive site
visit to Baobab’s Tete project.
“Whatisnotable”,hesays,“isthat,fromthe
outset,Baobabhasneverfailedtotranslateits
drilling,rapidly,intopredictableJORCcode-
compliantresources.”
“Moreover,thisprocessiscontinuing,with
ongoingdrillingatTengeexpectedtotranslate
intoaresourcewithinthenextfewweeks.As
aninvestmentpropositiontherefore,Baobab’s
Teteprojectofferssomeofthecheapestin-
situironoreinthesector,alreadysupported
byascopingstudybyCoffey,whichhas
demonstratedrobustprojecteconomicsfora
pigironsmeltingoperation.Inthemeantime,
itsMonteMuandejointventure(inwhich
Baobabistheoperator)representsfurther
upsidepotentialintheformofageological
smorgasbordofatyperarelyencounteredany
moreinthemodernworld.”
Drc gOlD JuniOr MinerAl invesT inTernATiOnAl Mii AB:
176nearing 2013 production & adding plus-1Moz tonnage en route
Drc gOlD JuniOr MinerAl invesT inTernATiOnAl Mii AB:
176nearing 2013 production & adding plus-1Moz tonnage en route
Mining
178 MINING � Mineral Invest
Throughout the Cape Town-held Mining indaba proceedings, a raft of reports have emerged, deliberating the merits of mineral exploration in the Democratic republic of Congo (DrC). Many note the enormity of the randgold resources/angloGold ashanti Kibali project in the northeast of the country; on track to 2013 year-end production with proven reserves of 27.5 million ounces of gold. plenty seek to rank the abundance of known natural resources in favour of early-moving country risk. But while many write-ups state that ambitious early-moving juniors will lead the way into the DrC, few let the companies do the talking.
179APRIL 2012 � The African Business Journal
180 MINING � Mineral Invest
JusT 20 kilOMeTres west from Kibali is the
1,442 square kilometre Wanga license area
home to Stockholm-headquartered near-surface
gold explorer and developer Mineral Invest In-
ternational MII AB (STO: MII) (“Mineral Invest”).
This junior has focused on the highly prospective
Kilo-Moto gold belt in the northeast of the DRC
and is on track to commence near-term gold pro-
duction from tailings in 2013 while delineating
resources of at least 1.5 million ounces (JORC or
NI43-101 compliant) for the year thereafter. As
an established country player and joint venture
partner of DRC mining house Office des Mines
d’Or de Kilo-Moto (“SOKIMO”) (Mineral Invest: 65
per cent / SOKIMO: 35 per cent), Mineral Invest’s
story already represents what it takes to be an
aggressive junior gold explorer and developer in
the DRC, and the next chapter will take the team
swiftly onto producer status as it continues add-
ing to its resource inventory.
181APRIL 2012 � The African Business Journal
“This is a great opportunity and our local
team has done a tremendous job in positioning
our company very well in the DRC,” says CEO
Jonas Eriksson.
“It’s an extremely rich resource area—one of
the most gold-rich in the world today—and now
well established on the radar,” agrees Industrial
Advisor Dr. Barrie Oakes.
“The Kilo-Moto gold belt has been sitting
there for years since independence from the
Belgians in the 1960s and only Moto Gold
Mines had previously chosen to go in there
previously. Things changed under the estab-
lished government, and soon Moto sold out
to the Randgold Resources-AngloGold Ashanti
joint venture which is almost adjacent to the
MII license area.”
The presence of tailings, while by no
means the full extent of Wanga’s envisaged
production profile in the long-term, has armed
Mineral Invest with a range of benefits. In ad-
dition generating fast-tracked revenue for the
company and for SOKIMO, justifying the setting
up of their joint venture alongside an aggres-
sive exploration programme (a move rarely
seen by junior miners)these historic tailings
today represent the start of an exciting Kibali-
neighbouring project in one of the world’s most
keenly watched gold belts.
182 MINING � Mineral Invest
Tackling tailings & ongoing explorationDescribing how Mineral Invest has looked at
Kibali in formulating plans for its ground nearby,
Eriksson says that the company has focused on
tackling its large landholding divided over five li-
censes by staying focused on exploration, while
capitalising on the near-term revenue potential
of its tailings.
“We located the tailings at the abandoned
Tendao Mine very early on, practically as soon as
we got onto the property. That triggered the very
early initial campaign that we completed back in
late-2009,” he recalls.
“SOKIMO pinpointed the historical tailings
area, but they knew little about them from a de-
tailed perspective. Under Barrie’s leadership we
initiated thorough investigations, concluding that
the tailings offer a good opportunity for generating
early cashflow. Being the small company that we
are, this was a very interesting possibility for us.”
Field studies are ongoing, today aimed at
identifying the best process for production. Works
are backed by a rights issue which closed in De-
cember and raised capital for two main objectives:
To advance the tailings survey and processing
plans and to support Mineral Invest’s exploration
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183APRIL 2012 � The African Business Journal
agreements with SOKIMO, which include delineat-
ing at least 1.5 million gold ounces in resources.
For the tailings, a focused sampling programme
is underway and small start-up pilot gold production
from alluvial deposits at the historic Tendao mine is
imminent. These works are part of a separate tail-
ings extraction agreement with SOKIMO (SOKIMO:
35 per cent/Mineral Invest: 65 per cent) and cover
a large area over which the tailings are located.
“They include ore not only from the Tendao
mine itself, but from a number of satellite depos-
its they also used as feed ore in for processing,”
Oakes explains.
“We’ve traced the tailings for around 1.8
kilometres along the Wanga River valley and they
extend for up to around 600 metres across the
valley itself. Quite an exceptional volume and
area of tailings were produced. According to his-
torical studies they grade at around just under a
gram per tonne of gold.”
Although a lower grade resource, the tail-
ings are perfectly amenable to modern process-
ing methods capable of generating reasonable
recoveries from the material. Furthermore, from
the numerous alluvial gold deposits in the area,
historical production targeted a number closest
184 MINING � Mineral Invest
to the Tendao mine but there are many deposits
along the river and surrounding tributaries which
remain relatively untouched.
“The Tendao mine itself wasn’t fully ex-
ploited. Belgian explorers of the colonial 1960s
period had begun looking to go underground
at the moment when the Durba mine was dis-
covered. The Belgians decided to move all their
mining and processing equipment from Tendao
to Durba,” Oakes says.
“Historical drilling records indicate additional
primary resources were intersected at around
100 metres below the current level of workings. A
number of shallow open pits to a depth of about
25 metres were excavated in the weathered
crust. They never really exploited the hard rock
itself except in shallow pits.”
Around the Tendao mine deposit, Mineral
Invest has a bedrock resource, alluvial resources
and tailings resources. Another known deposit
exists to the north—due to be investigated dur-
ing the year—and the team’s exploration license
bordering the Kilo-Moto gold belt has never seen
modern mining and exploration.
“That’s why we are setting up an airborne
geophysical survey to identify potential miner-
alised structures within the license. This will be
followed by ground surveys on promising tar-
gets” Oakes adds.
Building on its exploration and joint venture
agreements with SOKIMO, Mineral Invest is also
negotiating taking over the existing open pit CAP
mine. These conversations are the latest in a
growing trend between the partners; Mineral
Invest as a respectable DRC explorer-incoming
producer and SOKIMO as a national entity scout-
ing out the ideal project developer to advance
these gold-rich tenements.
A Junior with Long-Term GravitasIn the months to come, Mineral Invest’s decision
on the processing of tailings will take shape, as
will continued exploration efforts progressing the
1.5 million ounces resource delineation target
following the aeromagnetic survey. Underpinning
both focuses, Eriksson says, is the company’s be-
lief in the DRC government’s approach to mining.
“The kind of business relationship that we
have with SOKIMO is fundamental. What has
185APRIL 2012 � The African Business Journal
struck me during our negotiations that led to our
exploration license and those that led to us sign-
ing the joint venture in September, 2011, was
the government’s sophistication,” he says.
“At the end of the day, this is a positive devel-
opment for the country [aimed at] building eco-
nomic growth around resources and SOKIMO is a
driving force in that regard.”
The presence of Randgold and AngloGold
Ashanti carries its own connotations for the DRC.
These large gold groups, whose project contin-
ues to advance ahead of schedule, are in line to
do well by moving into the country ahead of the
pack. This proves attractive to their peers, as
does the example that Mineral Invest continues
to set for would-be junior mining entrants.
“For the big guys, if they aren’t the first mover
they are definitely the second. Look at the map.
Look who is there and who isn’t and the position-
ing taking place. There is no longer a question on
if they will approach juniors like us, but when. A
partner of magnitude and capabilities is always a
serious force and one to listen to once they have
decided to move in,” Eriksson says.
“We were one of the very few first-movers and
we’ve experienced that reluctance where compa-
nies won’t move at all, but all of a sudden it seems
that the doors are open. People are starting to
understand the DRC—the leadership, the strong
government support and focus on investment.”
As an early-mover equipped with a large
landholding, near-term production and masses
of exploration upside to support the delinea-
tion of significant gold resources in the years to
come, Mineral Invest is in an immensely good
position. The sheer potential of the Kilo-Moto
gold belt continues to attract multinational gold
groups. For a junior the size of Mineral Invest to
establish itself with such a highly prospective
package of licenses complete with historic pro-
duction is rare. Kibali’s speedy progress exem-
plifies the DRC government’s supportive stance
on mining—and as Mineral Invest proves its
value to the markets through 2013 production
and ongoing resource expansion, this emerging
gold production story is a gripping one. TAB
www.MinerAlinvesT.cOM
186 MINING � Ncondezi Coal
ncOnDezi cOAlMozambique’s next billion ton coal project producer-exporter
186
187APRIL 2012 � The African Business Journal
ncOnDezi cOAlMozambique’s next billion ton coal project producer-exporter
Mining
188 MINING � Ncondezi Coal
When chief executive Graham Mascall of aiM-listed thermal coal project developer ncondezi Coal Company ltd (nCCl) (“ncondezi”) surveyed in its formative years what has since become the miner’s flagship 1.7 billion tonne ncondezi Coal project in Mozambique’s coal abundant Tete province, he realised that in this project, the team had “a tiger by the tail”.
fAsT fOrwArD sOMe five years since the Ncon-
dezi project’s initial reconnaissance and it ap-
pears that Mascall was spot on. In December
2011, the project underwent a resource up-
grade—three of six resource blocks on the project
were updated, with the South Block contributing
848 million tons to its resource inventory—and
further resource delineation is due before the
definitive feasibility study (DFS) is completed in
the third quarter.
“We’re looking at a phased ramp up from
around two million tonnes initially up to five mil-
lion tonnes and beyond as we are able to ramp
up production at the project,” Mascall says.
“The idea will be to expand production, pre-
dominantly from operating cashflow as these
projects typically do.”
“Subject to the transition from exploration
189APRIL 2012 � The African Business Journal
license to mining license, as well as securing of
protect financing for construction of the mine and
coal offtake agreements being finalised over the
next few months, the earliest date of first produc-
tion would be early-2015.”
Recent events continue to suggest that
Ncondezi is piecing together the optimum
production profile. The 1.7 billion tonne coal
resource defined to date already matches
up to pre-IPO estimations outlined by SRK
Consulting’s preliminary exploration targets
of 2010. In January, the company penned an
encouraging infrastructure agreement with Rio
Tinto Coal Mozambique (“RTCM”) to build on its
existing order of magnitude infrastructure study
completed in the third quarter of 2011, and
further evaluate a preferred potential new-build
rail and port logistics corridor that had been
identified. And, in keeping with company plans
to up annual output and look out for project
acquisition and M&A opportunities, the Ncondezi
Project’s thermal coal tonnage keeps rising.
DFS drill programme & the DFS StudyDrilling for the DFS on the Ncondezi project—two
of four licenses the company holds totalling over
72,000 hectares in Tete’s Zambezi coal basin—
sought to improve data capture and continuity
WADE ADAMS
CONSTRUCTION LDA
Contact Mike Poyiatzis for more information: T +258 82 5778852 | dg@bricon.co.mz or mike.poyiatzis@gmail.com
190 MINING � Ncondezi Coal
as part of further resource delineation and immi-
nent resource upgrade announcements.
“We’ve drilled an additional 55,000 metres
of new drilling through 310 new holes-core and
percussion. We’ve moved the drill spacing grid
down from four-to-two kilometre spacings to
one kilometre and 350 metre spacings,” Mas-
call explains.
“Of the six blocks we have, four will be part of
our feasibility study.”
Coupling the South, North and Central blocks
which comprise the December-updated 1.7 bil-
lion tonne coal resource with the East Block,
from which results are yet to be released largely
due to South African lab lulls, Ncondezi has
already amassed resources to rival pre-IPO 2010
estimates.
The East Block resource model results are
likely to be received during March, at which point
the team can agglomerate the necessary infor-
mation to generate production schedules and
mining plans, both of which its feasibility contrac-
tor, TWP Projects, has set about compiling.
“The indication is that in resource terms it
looks like it will be larger because we still have
additional resources to be classified from the
East Block for the feasibility study and two addi-
tional resource blocks not being used in the DFS
Study,” Mascall says.
191APRIL 2012 � The African Business Journal
“That said, we haven’t changed our view.
This is predicated on a significant sized, ex-
pandable export thermal coal project and
we’re looking at trying to optimise the thermal
coal product that we can produce—to make
sure that we can sell and market the product
to predominantly Asian markets.”
In the coming month, Ncondezi will also
complete its 3D resource model; the requisite
step ahead of investigating the project’s poten-
tial for high margin coking coal. Mascall explains
that, while the company has always maintained
how prospective the project is for this coveted
coal class, it has also ensured that it has the
most comprehensive data conceivable prior to
initiating investigation. The process took previ-
ous Benga project owners Riversdale Mining
Ltd. approximately two-and-a-half years to piece
together, he notes, and Ncondezi plans to adopt
the same methodical approach.
“Only when you have the complete 3D re-
source model can you go back and interrogate
zones that can be washed down to hard coking
coal specs,” he adds.
“We’ll make comment to the market after we
properly conduct this exercise, likely late-March
early-April.”
Meanwhile, as Ncondezi continues to identify
the optimum thermal coal product spec, the
company is also planning discussions with coal
end-users and traders to confirm likely price
bands. These results, alongside those from the
East Block and the mining and output plans, will
be incorporated into the DFS Study in the coming
months.
Logistics & opportunitiesOf the litany of good newsflow Ncondezi has
furnished the markets with lately, Mascall says
that the most important to understand is the
January 18 announcement that Ncondezi, Minas
de Revuboe (“Revuboe”) and RTCM will partner
on the extended integrated transport corridor
development study (“ITD Project”). This study,
which seeks to look at further evaluating a multi-
user new rail and port infrastructure project to
potentially provide coal export capacity expand-
able from between 25Mtpa to 100Mtpa—as well
as broader economic and social benefits to the
Zambezia province—sparked a sharp upturn in
share price for Ncondezi.
“It’s encouraging. Clearly, it had an effect on
the market but we don’t want to overplay what it
is at this stage. Rio, having acquired Riversdale, is
looking at continuing the study we already complet-
ed with Riversdale and Revuboe last year,” he says.
“This is a result of the completed study—an
extension of that initiative. While encouraging, it
192 MINING � Ncondezi Coal
needs to go through the proper Rio-headed pro-
cess so that two or three years down the track
when they’ve completed the required feasibility
work, depending on the outcome of this work,
they will then choose to go ahead and imple-
ment plans and build the first stage.”
Once Rio has decided to implement the new
rail and port project, Ncondezi will be able to
negotiate terms to get infrastructure allocation
for its coal export requirements at the Ncondezi
Project. Meanwhile, Mascall says, the com-
pany is focused on forging ahead with its DFS
release—the benchmark required forming the
base case model to drive economic and techni-
Mineral Title application, maintenance & management
Ground selection & target assessment
Geological Mapping and remote sensing for mineral exploration
Conception, planning, running & supervision of mineralexploration programs
Planning, procurement & supervision of drilling programmes
Customised GIS databases creation & management forvarious purposes
Mineral resource estimation
Hidrogeological studies;
Environmental surveys & impact assessment studies
►►►►
►►
►►►
Maputo Head O�ce: Rua B, 233 - Bairro COOP, C.P. 832, MAPUTO • Tel/Fax: +258 21 414841 • Cell: +258 82 305 8339 • Email: gondwana@gondwana.co.mzTete O�ce: Av. Independência • Tel/Fax: +258 252 24504 • Email: gondwana@tdm.co.mz
www.gondwana.co.mz
cal project viability, and lay vital groundwork
ahead of the discussions the team plans to initi-
ate with would-be strategic partners in the next
few months.
“It’s one of the next targets we have to cap-
ture on the value curve,” he adds.
“Once you move away from resource valu-
ation and onto feasibility study, you can look
at capturing more of the NPV value that will be
confirmed by the feasibility study.”
With organic growth at the Ncondezi project
well-accounted for, the company continues
to seek out project opportunities and has
inspected a number of other coal licenses in
193APRIL 2012 � The African Business Journal
Tete. None have proved attractive enough to
warrant inclusion in the portfolio yet, Mascall
says, but Ncondezi’s expanding resource
inventory, early-stage allocation agreement on
potential logistics solutions and overwhelming
expertise in Mozambican coal all place it in
good stead as the search continues.
The months ahead read like a how-to in
scalable billion tonne coal project development.
December 2011 rounded on upped total re-
sources. January began with an advantageous
infrastructure agreement with a long-term view
of the region. March will deliver further resource
upgrades and put the team in the right place to
investigate coking coal prospectivity, and as we
approach the September-slated DFS, Ncondezi
continues to stick steadfastly to the predictions
it has previously made, surpassing tonnages
and share performance expectations along the
way.
AIM-listed aggressive project developers
with wholly owned billion tonnage coal plays
are slim to none in Tete, but Ncondezi appears
to be just that. Its dual focus on organic project
growth and M&A opportunities is well-placed,
and when the DFS hits radar screens in the
coming months, it will further cement the com-
pany as one of the region’s most highly antici-
pated coal producer-exporters to come. TAB
www.ncOnDezicOAl.cOM
●
●
●
●
●
●
●
●
●
●
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●
● Corporate Advisory Services
● Scoping Studies
● Prefeasibility and Feasibility Reports
Risk Assessment
Geology
Commodity and Corporate Research
Mineral Resources
Mining Engineering
Process Engineering
Ore Body Modelling
Mine Modelling
Financial and Techno-Economic Modelling
Competent Persons' Reports
Project Analysis, Generation and Management
Mineral and Mining Title Management
e-mail: business@mineralcorp.co.zaTelephone: +27 11 463 4867 Facsimile: +27 11 706 8616
www.mineralcorp.co.za
M I N E R A L C O R P O R AT I O Nthe
ADVISORS TO THE MINERAL BUSINESS
Proud technical advisors to Ncondezi Coal Company Ltd
194 MINING � Bassari Resources
IMAGE C/O BASSARI RESOURCES 194
195APRIL 2012 � The African Business Journal
TOwArDs 1Moz gOlD reserves & OnwArDs TO DevelOPMenTin 2012, Melbourne’s Bassari resources limited (aSX: BSr) (“Bassari”) will continue to up its plus-500,000 gold ounce flagship resource, announce discoveries and enjoy uncapped exploration upside armed with 13 additional quality targets as it nears its one million ounce reserves goal in Senegal
Mining
196 MINING � Bassari Resources
wHen BAssAri PickeD up its three contiguous
Moura, Sambarabougou and Bounsankoba per-
mits—covering approximately 850 square kilo-
metres of Senegal’s Birimian Gold Belt in West
Africa—life was pretty quiet in the now 50 million
ounce gold address.
How times change: Bassari has single-hand-
edly made two brand new gold discoveries and
upgraded one to a confirmed resource of over
500,000 ounces, identified 13 quality prospects,
and continues to advance towards defining one
million ounces of reserves prior to moving into
the development phase.
After announcing a maiden gold resource of
around 240,000 ounces at the Makabingui proj-
ect within its Sambarabougou permit last May,
Bassari upped the project’s resource to 543,000
ounces at 0.2 grams per tonne gold cut-off in De-
cember; an impressive increase of 126 per cent.
“It was the Bassari team who discovered it
and delineated the resources there and it has
excellent potential to grow. It’s proven to be open
both at depth, along strike, and, importantly,
across strike—great potential for further minerali-
sation,” says Jozsef Patarica, managing director
and chief executive.
“We’ve also got Konkouto, our new discovery
in our northern Moura tenement. This proves that
our team on the ground in Senegal can make
gold discoveries. It confirms the prospectivity of
the ground that we have there, and, from our
point of view, we’re well on our way to defining
one million ounces of reserves.”
Given the neighbouring 13 million ounce Sa-
diola gold mine and 4.5 million ounce Yatela gold
mine—not to mention past exploration activities
carried out by the United Nations and the French
Government (BRGM) over its three permits—Bas-
sari is not alone in believing that Birimian Gold
Belt permits house huge potential. Moreover, the
company has a ground team with a lofty track
record of success, confirmed gold discoveries,
a defined and updated resource with uncapped
exploration upside and plenty more targets to
come.
Upping MakabinguiCharting the path of the major East-West shear
zone structure running across the Sambarabou-
gou permit leads the eye past both the Loulo-
Gounkoto gold project (combined 16.8 million
ounces) and newer Sitakili porphyry gold deposit
discovery. It captured the attention of Bassari
geologists with good reason, and its hosting of
the Sambarabougou Granite (a small syntec-
tonic granite) gave rise to the early exploration
works that led the team to discover Makabingui.
The project has seen its gold resource grow to
197APRIL 2012 � The African Business Journal
543,000 ounces in just six months of drilling,
but Patarica says that this is by no means the full
extent of its mineral potential.
“When you look at the grade at a 0.5 gram
cut-off it’s 2.6 grams per tonne—a good grade
given the average shallow depth of about 115
metres. It’s near-surface and open pitable and
there’s plenty of potential to grow the resource,”
he explains.
“We see upside across strike and at depth
in particular, but there’s certainly potential along
strike further to the south as well.”
In 2012 Bassari intends to grow the resource
at Makabingui, targeting more near-surface min-
eralisation.
“While we’re confident that the mineralisa-
tion extends at depth, we want to delineate near-
surface resources at the moment—perhaps also
using a combination of Makabingui and Konkou-
to as we look towards the development phase,”
Patarica says.
“At a depth of 115 metres it’s still relatively
shallow at Makabingui, well within the common
realms of some open pits that go down to as
much as 300 metres, and we still have the op-
portunity to define the current resource more
deeply and keep to an open pit mining method.”
The only factor preventing Bassari from rac-
ing towards its one million ounces gold reserves
target any faster is West Africa’s over-subscribed
assay labs. But the team, undeterred by the lull
in getting results returned, has 13 prospects
along an 80 kilometre strike length to busy itself
with—and that’s exactly how the Konkouto gold
discovery unfolded.
MAkABingui BY nuMBers • 126percentincreasetothe
goldresource
• 543,000ouncesata0.2grams
pertonne(g/t)goldcut-off
foracombinedIndicated
andInferredGlobalMineral
Resourcein10.8milliontonnes
at1.6g/tgold
• 503,000ouncesata0.5g/tgold
cut-offforacombinedIndicated
andInferredMineralResource
in6.1milliontonnesat2.6g/t
goldincludedintheGlobal
MineralResource
• Additionalhighgradeintercepts
fromZone3:Threemetresat
36.6g/tgold(newresult)and
sevenmetresat11.8g/tgold
(newresult)
198 MINING � Bassari Resources
Affirming ground & team Using the time lapse between assays in the
lab and the return of results effectively, Bas-
sari ventured into its Moura permit to drill other
prospects. The plan is to return to Makabingui
once the team completes its strategic review
which includes flying a high resolution geophysi-
cal survey (aeromagnetics and radiometrics)
across the core of all three permits—and it’s a
good job that the company chose to branch out.
Like Makabingui, the Konkouto gold discov-
ery announced on January 11 is a brand new
find mastered entirely by Bassari. It transpired
kOnkOuTO BY nuMBers • KonkoutoGoldProspect–Stage1
drillingprogramcompleted
• Resultsconfirmthediscoveryofanew
mineralisedsystem
• Mineralisedzoneoverastrikelength
inexcessof600metres,openinboth
directionsandatdepth
• Significantintercepts:50metresat
2.5gramspertonne(g/t)goldand20
metresat3.0g/tgoldandfivemetresat
4.7g/tgold(newresult)
• Followupdrillingprogramunderway
199APRIL 2012 � The African Business Journal
200 MINING � Bassari Resources
when the team went to follow up RAB and geo-
chemical results carried out in August 2011,
Patarica says.
“These highlighted some wide zones of gold
mineralisation and our follow-up RC and dia-
mond drilling confirmed that,” he continues.
“We’re back there drilling and looking to ex-
tend that zone along strike because it’s open in
both directions. We’ll also look to do some dia-
mond drilling beneath the area we’ve uncovered
to further test that for mineralisation as well.”
In tackling the rest of its multitude of pros-
pects, Bassari has also run a 12 hole 1,000
metre RC drilling campaign at its Bennajiggi
prospect. This programme finished in Janu-
ary, right on schedule, before the team moved
the rig back to Konkouto some two kilometres
southwards.
The airborne geophysical survey will now
build on past information supplied by the gov-
ernment, Patarica says, and in feeding into the
strategic review it will enable Bassari to prioritise
its known targets and identify key areas of value
at existing projects Makabingui and Konkouto.
The ideal identified & upside mixAs 2011 drew to a close and Makabingui sur-
passed 500,000 gold ounces resource, 2012
IMAGE C/O BASSARI RESOURCES
201APRIL 2012 � The African Business Journal
began with wrapping up RC drilling at Bennajiggi
and moving swiftly into further RC and diamond
drilling at Konkouto in February. The main aim
in the coming months—to continue to define
resources and reveal Makabingui’s extensive
near-surface upside —will trigger once Bassari’s
strategic review is complete, during which air-
borne geophysics will further underpin the true
potential for discovery within the company’s
permits.
The success of Bassari’s Senegal ground
teams to date is irrefutable, as is its methodi-
cal approach to hitting the one million ounce
gold reserve mark by way of both Makabingui’s
potential and the targets defined so far. This re-
source, these results and this aggressive explo-
ration strategy continue to prove that Bassari is
truly a golden performer. TAB
www.BAssAri.cOM.Au
www.BAssAri.cOM.Au/BAssAri/skillseDiT/clienTuPlOADs/88/310112%20DeceMBer%202011.PDf
exPecT Big THings frOM BeAcOn Hill resOurces:The Mozambican coking & thermal coal producer & exporter 202
exPecT Big THings frOM BeAcOn Hill resOurces:The Mozambican coking & thermal coal producer & exporter 202
Mining
204 MINING � Beacon Hill Resources
205APRIL 2012 � The African Business Journal
aiM-listed Mozambique thermal and imminently hard coking coal producer and seaborne exporter Beacon hill resources plc. (lon: Bhr) (“Beacon hill”) has never been one to waste time when it comes to hitting the steel markets with a new, significant and much-needed source of supply.
206 MINING � Beacon Hill Resources
207APRIL 2012 � The African Business Journal
208 MINING � Beacon Hill Resources
AfTer TAking THe reins of the Minas Moatize
coking and thermal coal project in May, 2010,
Beacon Hill Resources got to ground on the now
JORC compliant 42.65 million tonnes reserve
operation in Mozambique’s highly coking coal
prospective Tete province in December that same
year. First shipment of thermal coal was trucked
to the port of Beira and set sail in mid-December,
2011—the same month that the company took
on majority ownership in its second project in
Tete, the Changara coal project exploration-devel-
opment joint venture. Minas Moatize’s maiden
JORC reserve arrived in early February this year,
closely followed by the recent release of its de-
finitive feasibility study (DFS) And plans to immi-
nently list Beacon Hill on the ASX.
Last year, Beacon Hill Chairman Justin Lewis
told TABJ that the company has been “going hell
for leather.” Breakneck-speed progress consid-
ered, it appears that this idiom is more fitting
than ever before.
The Minas Moatize build-upThe newly released DFS demonstrates compel-
ling economics for the Minas Moatize Coking Coal
Project. Financial modelling based on a 4 million
tonne run-of-mine (ROM) operation producing on
average 2.2 million tonnes per annum of saleable
coking and thermal coal demonstrates an NPV
(pre-tax) of US$662 million (using a discount rate
of 13 per cent), an Internal Rate of Return of 79.5
per cent and a mine life of 11.5 years.
The Minas Moatize maiden JORC mining re-
serve, released on February 2, has also provided
encouragement. The reserve count comprising
42.65 million tonnes with potential upside of a
further 7.9 million tonnes— a marketable reserve
of 23.45 million tonnes which represents the
saleable coal post-mining and processing of the
resource, which houses at least 8.72 million cok-
ing coal—further demonstrates the technical and
economic viability of the project.
The 2011 year-end culminated equally suc-
cessfully with December’s first seaborne export
from the project—the 10,650 tonnes of thermal
coal transited by road to Beira. In turn, says
Beacon Hill’s corporate development head David
Premaj, plans to increase export tonnage have
now been well accounted for in the DFS itself.
“Over the last 12 months we’ve demon-
strated that there’s more coal in the ground than
initially expected and a significant proportion
of hard coking coal. Our commencement of the
trucking operation and first export demonstrated
that we really can get the product out viably to
market,” he explains.
“In the next 12 months we’ll be building our
production to have more frequent shipments.”
209APRIL 2012 � The African Business Journal
210 MINING � Beacon Hill Resources
“During the final quarter of 2012, Beacon hill achieved key milestones, which have further de-risked the Company’s development objectives in Mozambique and highlighted the Company’s highly strategic and commercially valuable Minas Moatize coking coal project. our position in Tete has been reinforced following our acquisition of majority ownership in the Changara Coal project, which covers a tenement 70 times the size of Minas Moatize project. With the continued development of Minas Moatize, in tandem with our exploration objectives at Changara, i am confident that Beacon hill is well positioned to build value and become a substantial coking coal producer,”
Justin Lewis, Chairman of Beacon Hill Resources, February 16. 2012
211APRIL 2012 � The African Business Journal
It won’t be long before these shipments incor-
porate hard coking coal. Beacon Hill is about to
commence mining from the Upper Chipanga pit;
the second of the company’s initial pits at Minas
Moatize and one which contains hard coking coal
within the Upper Chipanda coal seam. True to
form, the company plans to begin production at
the pit as early as in the first half of 2012. In line
with its existing 600,000 tonnes per annum cok-
ing coal agreement with Indian metallurgical coal
house Global Coke, this hard coking coal will be
shipped FOB from Beira to markets such as India.
Incorporating this high margin product ben-
efits Beacon Hill in more ways than one, not least
when it comes to the trucking operation already
established and company plans to utilise rail in-
frastructure as it becomes available, in line with
aims to ramp up production to two million tonnes
per annum output in the upcoming years.
“Using a trucking operation, we can mine,
process and transport coal to the port for conser-
vatively around $100 per tonne. Thermal coal us-
ing trucks is a marginal operation; however with
conservative coking coal prices of around $200-
plus per tonne, you can make a $100 margin on
that kind of operation,” Premaj explains.
“That’s why we’re focused on coking coal
in the near term given that we have already
commenced trucking coal to the port for future
shipments. As the rail comes on we’ll look to
commence our life of mine operation involving
the production and export of both coking and
thermal coal.”
Unlike other project developers in Tete
where, for some, rail development poses a piv-
otal project hurdle, it is by no means an absolute
requirement for Beacon Hill. It may be the min-
er’s preferred logistics solution, but with a truck-
ing operation capable of taking up to 500,000
tonnes coal to market per annum, by Premaj’s
example calculations, the company is still sitting
on coking coal at $200 per tonne against $100
operating cost, delivering a $100 margin that
could generate up to $50 million per year.
“Given that our market cap is around US$150
million, when you compare that to the cashflow it’s
an encouraging proposition,” Premaj says.
“As we start to ramp up production and move
into a life-of-mine operation, that’s when we hope
to see shareholder value appreciate.”
Adding the 7.9 million tonnes upside—ripe for
future inclusion in the proven and probable re-
serves category—and it’s conceivable that Minas
Moatize is a 50 million tonnes coking and thermal
coal play. These tonnes, originally outlined by ini-
tial resource drilling, will see infill drilling this year.
And, alongside Beacon Hill’s emerging coking and
thermal coal production and export profile, they
212 MINING � Beacon Hill Resources
aren’t the only option the company has to delin-
eate more resources to add to its global inventory.
The Minas Moatize springboard in actionDescribing how Beacon Hill’s approach has al-
ways been to use Minas Moatize as an ideal plat-
form from which to build near-term production
assets in commodities relating to steel, predomi-
nantly coal, Premaj says that the company’s joint
venture to explore and develop the 184 square
kilometre Changara coal project was an opportu-
nity the team had been looking out for.
This license, some 70 times bigger than that
of Minas Moatize, provides the miner with a veri-
table option to take on a long-term development
project capable of greatly adding to its overall re-
source base. Premaj says that it also represents
the bigger picture for companies active in Tete
and seeking to establish and expand long-lasting
production-export profiles in the globally signifi-
cant steel region.
“There are a lot of underexplored licenses
held by private companies in the basin and what
may happen in the coming years is that we’ll see
opportunities for companies like us to earn-in, or
develop the license areas, through the cash that
213APRIL 2012 � The African Business Journal
we’re generating. This is our opportunity to grow
into a larger coking coal producer in the region.”
It is a move well-timed with respect to Aus-
tralian investor understanding about quite how
much Tete has to offer post-Rio Tinto’s $4 billion
buyout of Sydney’s Riversdale Resources’, which
has its Benga project immediately next door
to Minas Moatize. In part, this is why the ASX
makes for a great place to dual list, Premaj says,
explaining also that given the nation’s historic
prevalence in global coking coal production, its
fund managers know what makes a good coal
play and many hold Mozambique in high regard.
“It’s another capital market in an area we
can broaden our investor interest, and talking
about Minas Moatize and Beacon Hill in Australia
is good in that a large portion of the investment
community understands what we’re doing and
where we’re located,” he explains.
“We’re not actually raising any capital or is-
suing any shares. It’s just a compliance listing to
get up and running on the ASX, and hopefully it
may bring about some value upside.”
The company will present ASX investors with
their multi-project coking and thermal coal pro-
duction and export investment opportunity within
the coming weeks. The listing proposal has been
lodged, Premaj says, and Beacon Hill hopes to
commence trading in the first quarter of 2012.
“It also makes sense given our JORC 39 mil-
lion tonne resource Tasmania magnesite project
where we’ll finalise a scoping study in the coming
months,” he adds.
“That scoping study will form the basis for
securing a joint venture or offtake partner to
fund the development of that project— someone
who really understands the market, potentially
an end-user. Otherwise, from a funding perspec-
tive we’re really focused on Minas Moatize and
the Changara project.”
London’s institutional investors have been
historically bullish on Beacon Hill. When ASX inves-
tors are offered the opportunity to gain exposure
to the company’s rapidly established domestic
and seaborne production and export coking and
thermal coal scenario, it is likely global appetite for
this stock will continue to prove hungry.
Global steel production is on track to hit 1.5
billion tonnes this year. Tete is slated to deliver to
the markets approximately 20 per cent of cok-
ing coal by 2015. Beacon Hill, the company that
previously ran Tete’s only operating mine, knows
what it takes to move first and reap the benefits
thereof, and if past exploits are anything to go by,
the team is just getting started. TAB
www.BHrPlc.cOM
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