The African Business Journal April 2012 - John Pinching

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 | [email protected]

Vladimir Lukic | Creative Director | [email protected]

Chris Moore | Sr. Advertising Designer | [email protected]

Margaret Oldham | Sr. Graphic Designer | [email protected]

Wincy Law | Sr. Graphic Designer | [email protected]

Tanya George | Sr. Advertising Designer | [email protected]

Marc Mauricio | IT/Production Support | [email protected]

Constantin Turtulea | Head of Research | [email protected]

Natalie Edney | Head of Sales | [email protected]

Khayyam Darr | Research Director | [email protected]

Andrew Miskin | Research Director | [email protected]

Hugh Braithwaite | Research Director | [email protected]

Dee Nazer | Research Director | [email protected]

Guy D’Angelo | Research Director | [email protected]

Thomas Eros | Research Director | [email protected]

Michael Alexander-Jones | President | [email protected]

Linda Neal | Chief Executive Officer | [email protected]

Naveed Yusuf | Chief Information Officer | [email protected]

Gemma Parkins | Executive Assistant | [email protected]

Heather MacPherson | General Accountant | [email protected]

Simon Curran | Vice-President/Publisher | [email protected]

Contributors | Jen Smit, Nuala Gallagher, Andrew Miskin

South africa office

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parktown, 2193

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richmond

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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”


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”


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”


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


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”


“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”


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”


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’”


“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.



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



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



“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



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.



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



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





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


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



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!”


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


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


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


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.


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


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.


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).


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”


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”



(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


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”


PHOTO CREDIT: PHOTOSTOCK10 / SHUTTERSTOCK.COM

BeTTs TOwnsenDSafe Betts for everyone060

BeTTs TOwnsenDSafe Betts for everyone

PrOPerTY

62 PROPERTY � Betts Townsend


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.


BFBA CONSULTANTS (PTY) LTD CONSULTING ELECTRICAL & MECHANICAL ENGINEERS

P O BOX 1351CAPE TOWN 8000T (021) 421-0860F (021) 421-3084

P O BOX 2566DURBAN 4000T (031) 266-8950F (031) 266-9050

P O BOX 5909RIVONIA 2128T (011) 706-1300F (011) 706-8522

P O BOX 1327PIETERMARITZBURGT (033) 345-1483F (033) 345-7033

P O BOX 1937PORT SHEPSTONET (039) 315-0061F (039) 315-0066

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,


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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.


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




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.


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


www.mondigroup.com


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


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



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 [email protected]

Contact our local agent Euro Technology PPT [email protected]

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


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.


“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


The port of Durban has been a productive, unmistakable and reassuring presence on the landscape for decades.


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!



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


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

THE

AFRICAN BUSINESS JOURNAL

275,803: Monthly visitors.

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.


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


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.


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,


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


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Keeping your confidence

TN Medical Support Services Zambia LimitedBase Park, Alick Nkhata Road, Mass Media,PO Box 34951, Lusaka, Zambia.Telefax: +260-211-840 885Email: [email protected]

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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,


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


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.


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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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.


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.


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


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


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



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


THE

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www.tabj.co.za

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Executives and decision makers.Chances to promote your business.


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 [email protected]

Phone +27 21 418 6710

Mobile +27 84 448 4743

Contact: Drew GuthrieEmail [email protected] +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


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.




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


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


For over a quarter of a century G&h has been applying its innovative designs and engineering capabilities to a range of ambitious projects.


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



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


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



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


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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adv_Bellzone Mining.indd 1 27/02/12 08:56


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


D&B Suppliers


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.



With more than 20 years experience, AMC has enjoyed a successful history supplying specialised drilling products to the mineral, oil & gas, water well, horizontal directional drilling, civil and tunnelling industries world wide.

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EuropET +44 (0) 1273 483 700

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souTh AmEricAT +56 (2) 589 9300

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AM

455

-1 IM

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.


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


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.


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.


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


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-


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.


CAPTION: PHOTOGRAPHY C/O BAOBAB RESOURCES LTD.


CAPTION: PROJECT GEOLOGIST NORMAN GWAZA. PHOTOGRAPHY C/O BAOBAB RESOURCES LTD.


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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Kevin PeyperSales and Marketing ManagerM +27 72 436 7602

Johan TerblancheGeneral ManagerM +27 (0) 727 369 186

www.digitalsurveying.co.za

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


“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


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.”



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

►►►►

►►

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Maputo Head O�ce: Rua B, 233 - Bairro COOP, C.P. 832, MAPUTO • Tel/Fax: +258 21 414841 • Cell: +258 82 305 8339 • Email: [email protected] O�ce: Av. Independência • Tel/Fax: +258 252 24504 • Email: [email protected]

www.gondwana.co.mz




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.


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


“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.



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.


“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.


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

WE PROVIDE INTERNATIONALLY• Emergency response support• Project support on logistics• Warehouse Management• Logistics Consultancy• Fleet Management• Procurement• HR Services

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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


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


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


ncOnDezi cOAlMozambique’s next billion ton coal project producer-exporter

Mining


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


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 | [email protected] or [email protected]


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.


“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


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: [email protected] O�ce: Av. Independência • Tel/Fax: +258 252 24504 • Email: [email protected]

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


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

●

●

●

●

●

●

●

●

●

●

●

●

● 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: [email protected]: +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


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


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


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)


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



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


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


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.




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.”



“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


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


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


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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Documents

The African Business Journal April 2012 - John Pinching