The African Business Journal Aug 2011 - John Pinching

8/3/2019 The African Business Journal Aug 2011 - John Pinching

1/200

he

AfricAn Business Journal

Business and culture

aic wm i bsiss

arts & entertainment

ot aic - Mvis

company Focus

ig Miig Cmp

auGuS 2011 Vm 2 Iss 8 www.tabj.co.za

IN THIS ISSUE

FairtradeChanging the future of Africa


2/200

2 SECTIONTitle

- INFORMATIVE WORKSHOP SESSIONS

- NETWORKING OPPORTUNITIES

- AN EDUCATIONAL AGENDA

- CASE STUDIES AND BEST PRACTICES

WWW.ITINFRASTRUCTURE.CO.ZA | CAPE TOWN | 18 - 19 AUGU

WWW.KINETICEVENTS.N

[email protected]+27 21 555 08

IT INFRASTRUCTURE SUMMIT

OPENING ADDRESSMrs. GNM Pandor, MP

Minister, Science &

Technology

Te II Summit welcomes all Senior I Leaders, I

Inrastructure Managers and CIOs to join us or atwo day event that will address how an innovativeand stable I Inrastructure can drastically reducecosts and improve business efciency


3/200

eDiTOrsnt

HellO everyBODy,

Youll notice that the prole picture above

has been invaded by a gentleman with

whom you are most probably unfamiliar.

Rest assured, it is all above board; the man

in question is me, John Pinchingproud new

editor ofThe African Business Journal.

This month has been my rst full issue

and inevitably you will notice a slightly

different style, which I hope you will nd

interesting, informative and entertaining!

The mag has got the usual aperitif

of business news, followed by stories of

companies making an impact in Africa.

Indeed, as several global markets show signs

of recovery, its encouraging to see businesses

are starting to get excited again. This editionhas good vibrations from the mining, aviation,

food and property industries, while a welcome

call from the wild comes courtesy of South

African National Parks.

In addition there will be a refreshed selection

of features, hopefully suiting a wide range of

tastes. These include a jaunt through African-

inuenced cinema, how African women are

changing the business landscape and the

legacy that the FIFA World Cup in Africa has

left behind.

Leading the way in my inaugural issue

is our fascinating interview with Fairtrade.

This extraordinary charity takes us through

its inspirational journey across Africa during

the last decadechanging attitudes, getting

a better deal for farmers and transforming

lives. What better way to start my rst issue?

Fasten your seatbelts and enjoy the ride.

John


4/200

maerskline.com

Proudly serving AfricaHow do we serve Africa? With 22 brand new ships, for starters.

And believe us: Teyre no jus any

ships. Wih wice he capacit of he

indusry average in Wes Africa and

heir own on-board cranes, all 22 of

hese proud vessels are he larges

ever o call a Wes African pors.

Tey are also models of energy

eciency, helping o propel

African exporers and imporers

o environmenal leadership by

slashing CO2 emissions from

ranspor by 30% per conainer.

Why are we making such a big deal

abou Wes Africa? Because Africa

maers. o Maersk Line and o

he world. And as a world leader in

conainer shipping, we wan o be

your rs choice. Every ime.

West Africa services New & improved!

22 custom-built ships, the largest in West Africa Te markets best network

Unmatched schedule reliabili

Personalised service and strong local presence


6/200

b cOnTenTsauGuS 2011 | VoluMe 2 | ISSue 8

080cOver feATure

news

siness & culTure

resOurces

fAirTrADe Cgig t t aic 010

Muse Bsiss ws cmig t aic 018

C One vOice pp t iss mpwig wmi aic bsiss it itti gds? 024

lics t di: Blue cHip Mining AnD Drilling s sccssysd tciq tt my dsi bt w mstptic 030

li t t ck c:TrOllOpe Mining 040

Jef Drill & BlAsTDig wit t dtti dmd 048

TeAl MinerAls Z Zmbi cpp 058

Mzmbiqs st-mv: BeAcOn Hill resOurces

is t cmpy bid mc Mzmbiqs c sty 066

ciTy Of cApe TOwn Ctig aic bsiss b 074

sOuTH AfricAs nATiOnAl pArks Pk li 080

seMBcOrp sizAWt wd 088

MunicipAl


7/200

010

116


8/200

b cOnTenTsauGuS 2011 | VoluMe 2 | ISSue 8

cOMpAny fOcus

fOOD & Drink

spOrTs & leisure

ArTs

188OuT Of AfricAJ Picig tks igigk tg t s aic-icd cim 094

pOpricA! Pt o 100

eAgleBurgMAnn seAls Sig aics ppv 104

gaTa Bidig bsiss ptsips 110

grunDfOs Fiig t w 116

H&M reMOvAls kig t stss t mvig 122

cenTury prOperTy DevelOpMenTs Dvpmts wit wi 128

Sc i t kwdg: kuDuMBA invesTMenTs lTD. 140

leseDi nucleAr services is m dy t vt sv t c gy idsty 146

Tiger Milling cOMpAnyig pvs tt cmy ds dg 156vOpAkT wds gst iqid stg pvid 164

siMAng smig bsisss 172

Cts bv t st: HArTlief cOrpOrATiOn 178

grAnD prixck cgs 188

wOrlD cup at t wist


9/200


10/200

FairtradeChanging the future of Africa


11/200

Fitd s md icdib cgs i

aic. Ti g is w mistkb

symb gd c iss. TABJ

edit J Picig sks Fitd aicsexctiv Dict Mic nk w

t it s mgd t civ s mc

TABJ: What does Fairtrade represent in 2011?

MicHAel nkOnu: In a world where food retail is

increasingly dominated by supermarket chains and

price wars, we give farmers and consumers an al-

ternative. Fairtrade helps farmers in Africa improve

their livelihoods by securing better trade conditions,

while we give consumers the possibility to make a

difference through their everyday shopping. Every

purchase of a Fairtrade certied product from Af-

rica contributes to sustainable change in Africa.

TABJ: How does it standout as a charity?

Mn: We do not consider ourselves as a traditional

charity. We create opportunities for farmers whohave been disadvantaged by the conventional

trading system, to earn reasonable income for

their labours. Fairtrade empowers small-scale

farmers to actively participate in the value chain.

It is about a fair price for a fairly produced prod-

uct. Our ultimate goal is for producers to become

economically empowered without our support.

Has the original concept changed much?

Mn: The concept of fair trade has been around for

over 40 years but a formal labelling scheme didnt

get off the ground until the late 1980s, when the

rst Fairtrade coffee from Mexico was sold under

the Max Havelaar label. Since then the system has

grown exponentiallybut the core concept of sup-

porting producers to have sustainable livelihoods

has not changed. In Africa, the biggest transfor-

mation has been the creation of an intra-African

Fairtrade market. While Fairtrade traditionally fo-

cused on producing in the South, and marketing in

the North, we have recently started to introduce the

FAIRTRADE mark to consumers in Africa. Since 200

Fairtrade products like wine, coffee and chocolate

have been available in South Africa and the range

has been immensely popular. In 2010 we introduce

in 20 yeArs we HAve reAcHeD

Over 500,000 fArMers AcrOss

AfricA. TODAy we represenT

MOre THAn 260 prODucer

OrgAnisATiOns AcrOss 26

cOunTries


12/200

12 COVER STORYFitd: Cgig t t aic

the label into the Kenyan market, increasing market

access for African farmers and giving local consum-

ers the choice to support African trade.

TABJ: What was Fairtrades aim when it rst ven-

tured into Africa specically?

Mn: African farmers were involved in Fairtrades

activity from the beginning. Some of the labels

pioneer members are coffee farmers in Moshi,

Tanzania, and played a pivotal role in the initial

movement. We believe that transparent and

equitable trading environments will allow Afri-

can farmers to improve their lives. Today the

Fairtrade concept is thriving throughout Africa.

TABJ: What regions and industries has it concen-

trated on?

Mn: Fairtrade mainly focuses on agricultural com-

modities. Our top products include coffee, tea,

cocoa and fresh fruits, like bananas and pine-

apples. Cotton and owers are also important

categories emerging from Africa. Our farmers are

located in over 25 countries across Africa, includ-

ing those in conict and post-conict, like Congo

and Sierra Leone. We work across the length

and breadth of Africa from North, East, West to

Southern Africa and our grassroots structures,

such as regional and product networks, enable

us to connect effectively with over 500,000 cert

ed producers across the continent.

TABJ: How have your relationships with African

farmers and workers developed?

Mn: Fairtrade Africa represents African farmers in

the Fairtrade systemwe are the farmers. When

changes in the system are being considered, we

ensure that the voice of our members is heard an

that any changes reect their needs and realities.

TABJ: What educational ventures are you in-

volved in?

Mn: We contribute to education in Africa on differ-

ent levels. On top of the minimum price, traders

and consumers pay a sumcalled the Fairtrade

Premiumwhich is invested in social, environmen

tal or economic projects that benet farmers and


13/200

AUGUST 2011 The African Business Journal

their communities. Premiums are often used by

producer communities to support educational proj-

ects. Across Africa, schools are being built, schol-

arships awarded or computer classes set up as a

result of the Fairtrade Premium.

TABJ: How quickly did the organisations mes-

sages spread?

Mn: In 20 years we have reached over 500,000

farmers across Africa. Today we represent more

than 260 producer organisations across 26

countries. That number is growing, especially

now that we are introducing the African consum-

er market to the Fairtrade concept. We are creat-

ing a real movement for change in Africa, similar

to the one that already exists in the North.

TABJ: What have been the signicant milestonesin Africa?

Mn: Apart from the introduction of the

FAIRTRADE mark in South Africa and Kenya, an

important milestone was our rst Fairtrade Africa

Forum, organised last year in Zimbabwe. Produc-

ers, partners and other stakeholders discussed

how Fairtrade can further help farmers achieve

sustainable livelihoods. The forum also offered

producers the possibility to take ownership of

Fairtrade Africa. We are currently planning the

second edition, to be held at the end of Novem-

ber in Accra, Ghana. In addition to the confer-

ence we are setting up a trade exhibition offerin

farmers in Africa a platform to meet with traders

and create market access for producers.

TABJ: Has your work bred more trust between

businesses and suppliers?

Mn: AbsolutelyFairtrade relationships provide

producers with long-term access to markets. Thes

relationships are based on mutual respect, trans-

parency, and commitment, and grow stronger ove

time. The recent developments in the coffee mark

provide a good example. The sector is facing seri-

ous defaults due to the high demand and declinin

yields, but Fairtrade producers are better prepared

for uctuations. The Kagera Co-operative Union

(KCU), a Fairtrade coffee organisation in Tanzania

recently won UK retailer Sainsburys Best Supplier


14/200



15/200


relATiOnsHips Are BAseD On

MuTuAl respecT, TrAnspArency,

AnD cOMMiTMenTTHey grOw

sTrOnger Over TiMe


16/200


award. According to the jury, KCUs many merits in-

clude timely delivery, non-defaults, highest quantity

of coffee and unquestionable quality delivery. Quite

an achievement!

TABJ: Are you surprised at how instantly recogni-

sable the Fairtrade brand is in Africa and on a

global scale?

Mn: We have been around for 20 years, creat-

ing a real movement in the North. Over the

years the work of our dedicated Fairtrade

organisations such as TWIN, Divine, Traidcraft,

Caf Direct have worked with farmer groups

supporting their capacity building. Major

brands such as Starbucks and Cadbury have

also launched Fairtrade products, increasing

the visibility of the FAIRTRADE Markin addi-

tion to numerous other products, which youcan nd on the shelves in local shops. African

farmers believe fairer trading conditions are

the way out of poverty and producers have

denitely seen the change in their lives com-

munities. Fairtrades success in Africa demon-

strates that consumers and the general public

think trade, not hand-outs, is the way to allev

ate poverty.

TABJ: In what way have attitudes changed be-

cause of Fairtrade in Africa?

Mn: We have seen a major change in how busi-

ness is done, especially in the cocoa sector in Wes

Africa. With major brands switching, competitors

are beginning to think about how they source their

products. The impact of the Fairtrade Premium,

which is invested in social, environmental or eco-

nomic community projects, has been very inuen-

tial. In Africa, Fairtrade has contributed hugely to

improving the capacity of farmer organisations. To

become certied, cooperatives need to develop

business strategies and implement nancial or

environmental management plans.

TABJ: What is the most rewarding aspect of

Fairtrades tireless efforts?

Mn: It is the change we see taking place at in-

dividual, household and community levels. It

satisfying to see how Fairtrade is transformin


17/200


communities through community health cen-

tres that offer maternity care for women and

classrooms that reduce the walking distance

of school children. It is equally rewarding to

hear how farmers outgrow themselvesbeyond

Fairtrade. Due to the management changes

made, many farmers are able to start apply-

ing for grants or partner other NGOs in further

improving their livelihoods.

TABJ: Are there plans to expand the operation in

Africa?

Mn: Yes, the biggest shift is the opening and ex-

panding of consumer markets, but we also want

to reach out to more producers, targeting new

countries like South Sudan. We are also devel-

oping standards for new products or expanding

existing commodities.

TABJ: What are the long term ambitions in Africa

Mn: The vision of Fairtrade Africa in the next

ve years is to develop into a formidable Afri-

can-based producer organisation, supporting

capacity development in Africa and facilitatin

intra-African trade for producers, enabling an

increase in market access, food security and

wealth creation. TAB

fAirTrADes success in

AfricA DeMOnsTrATes THAT

cOnsuMers AnD THe generAl

puBlic THink TrADe, nOT HAnD-

OuTs, is THe wAy TO AlleviATe

pOverTy


18/200

Muse bsiss ws c

sOuTH AfricA super BrAnD

International Marketing Council (IMC) of South

Africa CEO, Miller Matola, has claimed that the

role of ambassador belongs to all South Africans,

especially when it comes to promoting the country,

its innovation, people and economic sustainability.

The rousing call was made at a stakeholder

summit held at the Durban International

Convention Centre.

The IMC is responsible for the South African

brand and works on transforming the countrys

image by developing and marketing strategies that

invite the rest of the world to experience South

Africa through either tourism or business ventures

A nations brand determines to a large extent

how well a country competes for its share of inves

tors, consumers and visitors in a global economy.

South Africa has been written off several times, bu

has managed to prove its competence, said Ma-

tola.

We see possibilities in everything, provide in-

novative solutions and have become a key player

in global institutionsthis is what we need to be

selling, he added.

The IMC conducts a Domestic Perceptions Au

dit to nd out how South Africans feel about their

country.

It monitors what the media is reporting abroad

through the Reputation Industry tool. They also

use the International Tracker Results to see where

in the world elite businesses are choosing to invesThere are also campaigns being run to help

promote the country. A more recent example is the

Play your Part campaign during which South Afri-

cans were asked to give someone a helping hand

either with their time or resources.


19/200

g t aic

spurreD On

Tottenham Hotspur Football Club have arrived

in Johannesburg for the Vodacom Challenge, a

traditional pre-season tournament.

Spurs former skipper Gary Mabbutt (right)

insisted that the London team were not in South

Africa on for a jolly but as important prepara-

tion for their rst Premiership of the new season,

against Everton on August 13.

The North London clubs opening game of

the Challenge is against the Kaizer Chiefs at the

Peter Mokaba stadium in Polokwane. They will

also face PSL champions the Orlando Pirates.

Mabbutt, now a team ambassador, said

Spurs had brought their best players, including

the unsettled Luka Modric, to South Africa and

that coach Harry Redknapp was expecting a

tough challenge.I get frustrated when people say we are here

just on a pleasure trip around South Africa, said

Mabbutt, who played more than 480 matches for

Spurs between 1982 and 1998. This country is

a great location for our pre-season preparations.

The PSL (South Africas top football divi-

sion) had one of the most amazing nishes last

season, with Chiefs, Pirates and Ajax all in it. We

want to win the Challenge trophy, but we know

its not going to be easy, he added.

South Africa has been thriving in terms of

both professional football, and as a formidable

place to do business, since last years highlysuccessful and well-organised World Cup tourna

ment. The recent visit of teams such as Spurs

and Manchester United has ensured that tradin

in South Africa keeps improving.


20/200

20 SECTION it

Muse bsiss ws c

Merkel MAkes energy TAlk

Germany is seeking to bolster renewable energy

trade with Africa, Chancellor Angela Merkel (right)

said, during her recent visit to the continent.

German solar power entrepreneurs see Af-

rica as a potentially huge market for their prod-

ucts and part of Merkels visit to Kenya included

a look at the German-made solar technology at

the new headquarters of the UN Environment

Program in Nairobi.

She and UNEP Executive Director Achim

Steiner toured the new ofce facilities, which

boast more than 64,000 square feet of solar

panels, energy-saving lighting and other green

features.

Merkel said before the tour it was an ex-

ample of how Germany and Africa can help each

other economically on energy.Germany intends to demonstrate how it is

also possible to produce energy using renewable

sources, Merkel said. I believe that Germany is

a prominent leader in this eld and weve dis-

cussed how we can cooperate more closely in

the energy sector.

Accompanying Merkel in Africa were a group

of German parliamentarians and business lead

ers who were seeking ways to boost the role of

Germanys private sector in developing an Afri-

can green economy.

Germanys renewable energy trade with Af-rica amounts to $396 million per year but indus

try backers insist that amount could be greatly

boosted.

PHOTO BY 360B / SHUTTERSTOC


21/200


g t aic

lOAn HArk

Micro, small and medium enterprises (MSMEs)

in North Africa are key to driving employment for

millions of young citizens, but businesses on the

smaller end of the scale have some of the lowest

level of access to nance in the world.

The approval of a $50 million loan to Tunisia

marks the launch of a World Bank facility

designed to address this. The World Bank

Groups MSME Facility is expected to channel

over $500 million to Middle East and North

Africa (MENA) countries over the next ve years,

including support from the International Finance

Corporation, regional partners such as the

African Development Bank and donors.

This regional facility and a partnership with

a number of development institutions, is a stron

and timely response to a MENA-wide lack of

access to nance and jobs and is a critical pilla

of the World Banks Arab World Initiative, said

Shamshad Akhtar, Vice President for the MENA

region at the World Bank.

SMEs in the region have enormous

potential to create much-needed employment

opportunities for a growing, young and

increasingly impatient population. We urgently

need to start this engine and creating access to

nance is critical, he added.


22/200

22 SECTION it

Muse bsiss ws c

vOTe Of cOnfiDence

Encouragingly, the Africa Business Condence

Index (ABCI) for June shows growth in both the

index for manufacturing and non-manufacturing

sectors in Africa, the Africa Business Panel has

announced.

The difference compared to May in the indi-

ces for manufacturing and non-manufacturing is

0.1 and 3.3 percentage points respectively.

Business professionals from 30 countries

in Africa participated in the survey making the

results a reliable gauge and early indicator of

the underlying economic activity on the African

continent.

freeDOM figHTers

A survey of chief executives in 10 African coun-

tries has found that businesses in Africa enjoy

more freedom. In addition regional governments

are apparently more attentive to the private sec

tor than in previous years.

The study, released by PricewaterhouseCoo

pers, asked 201 business leaders from a broad

cross-section of industries within local and expa

triate businesses.

Philip Kinisu, a top ofcial with Pricewater-

houseCoopers in Kenya, said The private sec-

tors in Kenya, South Africa, Nigeria and Rwanda

are actively and energetically participating with

governments on strategic planning.

The survey found that chief executives are

generally optimistic about economic growth in

Africa with more than 60 per cent expecting thebusiness to grow in the next 12 months.


23/200


g t aic

MurDOcH MOsT HOrriD

It may not be directly linked to African business

but the damage done to the so-called Murdoch

Empire has far reachingand mainly positive

consequences for journalism, reportage and the

integrity of the western press.

When the News of the World nally fell on

its swordseveral years after private investiga-

tor, former AFC Wimbledon striker and all-round

slimeball Glenn Mulcaire slithered into prison

there was an almost universal sigh of relief. For

scribes the world over it is a victory worth savour-

ing, for it is essentially a successful assault, not

only on immoral practices, put the arguably more

loathsome practice of publishing puerile, mind-

numbing, culturally bankrupt passages about

cretinous footballers and talentless celebrities.

It has also brought to account the somewhatbafing inuence of the Murdoch family (and

indeed the hitherto untouchable mane of red

hair that is Rebekah Brooks) on governments and

governmental policyand this can only be seen as

a natural restoring of the universes equilibrium.

We have witnessed the death of a publication

which, despite its name, had a no relationship

with news, no resonance with the world and no

place on the news stand.TAB

PHOTO BY STOCKLIGHT / SHUTTERSTOCK


24/200PHOTO BY HARALD DETTENBORN/WWW.SECURITYCONFERENCE.DE


25/200

C One vOicepp t iss mpwig wm iaic bsiss it

itti gds?HOw HillAry clinTOns wOrDs AT THe AfricAn uniOn

cAn MAke A Big iMpAcT AnD Drive iniTiATives frOM THe

glOBes MOsT viTAl fOrces BeHinD eMpOwering wOMen

in Business

Business & culTur


26/200

26 BUSINESS & CULTURE aic wm i bsiss

awys wm t cptivt dic,

u.S. Scty Stt hiy Cit

cd tg cwd w s ddssd

t aic ui (au) i addis abb,etipi J 13.

if All THe women in Africa from Cairo to Cape

Town, decided they would stop working for a week,

the economies of Africa would collapse, she an-

nounced, drawing pause from many of the dele-

gates representing 53 African nations who did not

necessarily share her sentiments.

The women of Africa are the hardest working

women in the world.

A strong advocate for womens rights on all

fronts from her Talking it Overnewspaper columns

(1995-2000) to her famous Womens Rights are

Humans Rights speech (2008) and more recently

her role in speaking out against driving bans in

Saudi Arabia, Clintons position when it comes

to the role of women in businessand how this

ought to be maximised globallyis a pretty well-de-

ned talking point. But is she merely another highprole political gure with a platform for rhetoric

and little swing to foster change, or an important

means for organisations to get their messages

heard and put pressure on the right points of con-

tention to aid progress?

One month on from her high prole address

to the AU, how have law-makers and commenta-

tors throughout African continent reacted to her

calls for improvement, and what is really being

done on the ground to enact change for the em-

powerment of women in the nations business

sector?

A trigger or progress

Before accounting for Clintons remarks at the

AU meet, it is important to outline the attention

that Africa-U.S. relations have gotten in the past

couple of months. In June U.S. President Barack

Obama played host to Goodluck Jonathan, Presi-

dent of Nigeria, and President Ali Bongo Ondimb

of Gabon, at the White House. First Lady Michelle

Obama, with daughters in tow, also toured South

Africa and Botswana. Then at the closing cer-

emony of the African Growth and Opportunity Act

(AGOA) forum, Clinton announced that the U.S.

will commit $2 million to the African Womens

Entrepreneurship Programme (AWEP); days befo

speaking at the AU gathering.

Clintons own prevalence in empowering women in Africaincluding those in business dates

back to her 1995 ve-nation South African tour.

She has since declared this tour to have been a

transformative experience (and one well in ad-

vance of her own ascent into politically-motivated

spheres) which may account, in part, for why her


27/200


words are believed to carry such weight in terms

of policy-making, global investment attention and

general media coverage.

In addition to the various images, depicting

her standing alongside women from rural, tertiary

and family business enterprises, her unrelent-

ing commitment to the issue strikes some heavyheadlines and spotlighting that likely makes

numerous autocrats uncomfortable. Her endorse-

ment of public and private entity-led schemes and

commitments elevates any due organisations

prole, forcing change rather than merely sug-

gesting it. The AU address demonstrates this well:

While many ofcial attendees remained stoic

in the wake of her comments about empowering

women in business, raucous applause ensued

from the gallery section, signifying that while som

in power may not kowtow to her words, her role in

the minds of many is weighty enough to convey

the message intended; with or without getting astanding ovation from those in the room.

Complimenting initiatives

While Clintons role as a mouthpiece cannot be

underestimated, it is likely to be most effective

when in synergy with the various bodies


28/200

28 BUSINESS & CULTURE aic wm i bsiss

campaigning, lobbying and driving change in

the role of women in African business in other

echelons. She and like-minded public gures,

have forced the subject into the highest agendas

of various important international organisations,not least that of the United Nations (UN) and its

new arm, UN Women. The unit announced its rst

UN Women Justice Report in early July, Progress

of the Worlds Women: In Pursuit of Justice. The

report aims to convey why nancial support is a

must-have to ensure the betterment of women

related to gender equality, with a sizable portion

sliced up and dedicated to roles in the business

world, including in Africa. Two of the groups ve

aims are of particular signicance: enhancing

womens economic empowerment; and makinggender equality central to national development

planning and budgeting. The report outlines wha

it will really take to bolster development, from

heightening womens inputs in policy-making and

political choices, to proper allocation of land and

agricultural resources, education and healthcare


29/200


concerns, and how social injusticeslong-

engrained in some statescan most effectively

be tackled and dealt with in strategically to long-

term success. Simultaneously, these overarching

reports factor in contribution from various other

bodies, concerned with progress in more specicareas including how to work on up-skilling women

in given regions, encouraging entrepreneurship

and providing day-to-day support in the form

of centres, advisors and local-level programs.

Investigation of each of these levelsClinton

and her role as a part of the media message;

research and bodies working for policy-making

and legislative change; and smaller groups

dedicated to working on an individual basis to

improve daily lifeunveils how local, national

and international levels can collide and work

more effectively between one another, as well aidentifying why Clintons comments can, possib

carry far more signicance than rst impression

suggest.TAB

MAking A Difference

For more information about companies and organisations working to empower

women in African business at every level, please see this snapshot:

The African Women In Business Initiative (AWIB), from the African

Development Bank (AfDB)

The Global 10,000 Women Certificate Programme for Entrepreneurs funded

by Goldman Sachs.

The Businesswomans Association of South Africa (BWA

The International Finance Corporation (programs Village Phone and the

Democratic Republic of Congo Access to Finance Project received Gender

Awards for empowering women in business).

Uganda Network of Women Entrepreneurs (UNWE)


30/200

license TOB Cip Miig d D

sccssy sd tcimy dsi bt w mst


31/200

rillig s

ttptic

resOurc

030


32/200

32 RESOURCES B Cip Miig d Diig

T wd is bsiss pp w isist

ctiig t ttt, witt v swig

dw t cck t t scy, d ppy

mg gwt. B Cip Miig d Diig

is qit t ppsit. T cmpy s b

ppy t cgitt d ct t iticcis

cmptitiv bsiss, b mkig mvs

tt wi mximis its pmc. Idd, it

bg its jy i 2003 by vy dibty

d mtdicy ssssig t mkt tt ty

itdd t dmit.


33/200



34/200


frOM iTs OriginAl conception, rather than chasing

the fast buck, Blue Chip Mining actually spent 18

months training staff, sourcing equipment, mak-

ing quality control testing and generally polishing

its products; only starting to trade when absolutely

sure it would deliver the best possible service to itscustomers. Its brand and reputation were always

going to be the foundations upon which the new

company would build its empire.

Thanks to that initial investment the compa-

ny is now one of the most reputable and ourish-

ing drilling and mining companies in Africa, with

several lucrative contracts with big companies,

including corporation giants Anglo American. Its

safe to say the idea of medium term analysis fo

long term gains has been an unprecedented su

cess, with each year reinforcing how sensible it

was to look at the bigger picture in the rst plac

Climbing high

In the years since it began trading the company

has leapt from a small, level eight company to a

large level three operation, on the South Africa

mining league table. For those that are not fam


35/200



36/200


iar with the scoring system, this is a bit like South

Africa reaching the World Cup Final!

During this galvanising period it has over-

taken many historically advantaged competitors

in the eld, while also expanding into services

in different categories across the mining realm.

This impressive diversity includes catering for

the local market, in which it has no recognisablecompetitors. For these small regional businesses

it mainly acts as a priceless source of advice for

applicants seeking mining licenses.

Managing Director Martyn Van Zyl has been

impressed by the rapid progress: Where we have

outsourced certain processes in the past, we now

do the vast majority of the work in house, he says

Efciency is a major part of our focus, ensuring

that we save client costs and become really com-

petitive in the tendering process.

Explosive impact

The company also has its own licence with the

South African Police allowing it to handle explo-sives, perform blasting and complete processin

to the nal product before it goes to the smelt

pits for renement. Its entire eet has also been

equipped with mobile mining equipment, while

also changing its workshop to a mechanical

operation, allowing employees to use equipmen


37/200


they are familiar with in every location.

Safety is at the forefront of Blue Chips priori-

ties and all equipment meets the countrys robust

standards, resulting in exemplary working condi-

tions and a record of safety that is second to none.

We do a comparative analysis of parts and

products, testing vigorously before we promote

them to clients, or include them in our opera-tions, adds Van Zyl.

With further efciency targets on the horizon

the company will stop at nothing to ensure cut-

ting edge practices. Indeed, Blue Chip is currently

testing the life span of drill bits, determining the

most abrasive metals. The outcome shows exact-

ly what is required for better penetration and ho

many metres can be mined every minute.

Martyn explained how the reputation of the

company came above everything else. We dont

want to engage in practices that can cause damag

to the company, so ethics are a high currency in o

organisation, he says. It is essential that we also

subscribe to the policies of our biggest clients be-cause they are constantly under the microscope.

Revolution

Coming through a period of global for everyone,

historical and political transformation for South

Africa in 1994, the company has continued to


38/200



39/200


evolve, while embarking on positive discussions

with government ofcials about future projects

and how to use existing public sector equipment

cost effectively.

The economic downturn, while proving a big

challenge, was overcome with careful planning,

regular consultations among staff and using

prots to improve maintenance. This meticulousapproach, which has always proved so benecial,

even before the recession, meant that the com-

pany and its 300-strong workforce didnt suffer

any long term problems.

The practice of forging good professional

relationships, formed in a competitive but buoy-

ant industry will ensure optimum trading for

the company over the next 20 to 50 years. In

recent yearsparticularly since the radical cul-

tural changes of the mid-ninetiesthere has als

been a noticeable increase in the demand for

South African expertise in civil engineering and

mining, where in the past companies may have

approached India or China instead.With seven years of faultless operations, in-

dustry integrity ingrained in its philosophy and a

position at the summit of its eld, the company ha

every reason to keep chipping away.TAB


40/200

TrOl

li t t040Miig cmpy pvs tt


41/200

resOurc

Ope Mining

ck cg t byss c b t mkig y


42/200

42 RESOURCES p Miig Svics

in THe currenTclimate, experience and knowl-

edge represent the greatest advantages for

businesses in any industry. For Trollope Mining

Services, a combination of these assetsalong

with a considerable harvest of passion and ambi-

tionhas been more essential than ever. Indeed,

in the ght for survival the company has actuallyourished, showing itself to be among the ttest

mining companies on the block. Reassuring proof

that sometimes the good guys get their rewards.

Brothers in arms

Trollope Mining Services was created 35 years

ago when two enthusiastic brothers, Peter and

John, bravely took their rst steps in business.

They started off the Trollope enterprise by tena-

ciously purchasing ex-military equipment from

auctions. Using their farm as a base the pair the

began to reuse their acquisitions on short-term

contracts in the mining business, and the rest, ihistorybut a history worth telling.

During those halcyon early days the brother

saw their business outgrow the farm, prompting

a move down to Johannesburg. Here they fo-

cussed predominantly on the coal mining secto

while also venturing into manganese, gold and


43/200


POWERLINE

SUPPLIER OF

PROUD SUPPLIER OF BRAKE COMPONENTS TO TROLLOPE MINING SERVICES FOR OFF-ROAD MACHINES AND EQUIPMENT

Powerline has been a supplier of quality brake components to

the mining and opencast mining industry for 16 years. Our

moo is SAFETY IN THE WORK PLACE and for this reason our

brake disc pads, brake caliper seal kits and brake caliper repairs

are of the highest standard.

imported and locallymanufactured BrakePads and Brake Discs

Brake Caliper Seal Kits,Pistons and many moreitems. Rebuild of Brake

Calipers

Powerline

P.O. Box 167451

Brackendowns, 1454

South Africa

Tel: +27 11 868 4466

Fax: +27 11 868 5409

Fax: 086 607 7143

Cell: 082 893 [email protected]

CMH Toyota Melrose

CMH Toyota Melrose serving all your motoring needs. We deliver country

wide and offer the best deals around. Were here to work with you.

We are proud to be associated with Trollope Mining and the mining

industry. We can supply vehicles with all mine accessories fied.

Preferred Supplier to Trollope for Toyota products.

Contact Our Fleet Sales Execuve:

Ronel Britz, T: 0833779627 E: [email protected]

Address: C/O Corle Drive and

Melrose Blvd, Melrose Arch

P.O Box 88, Melrose, 2076

T: 0112773000 F: 0866340929 C: 0824401864

E: [email protected]


44/200

44 RESOURCES p Miig Svics

platinum. Since then Trollope have specialised i

open pit mining; taking signicant loads from th

ground, drilling and blasting it, removing the roc

and stock piling the usable material.

The companys main facility is now situated

just outside Johannesburgincorporating head

ofces and workshops. There are also bases in

Thabazimbi and Jurmala. Every contract also ha

its own workshops and ofces on site.

Going global

For many years the companys biggest contract

was with Xstrata in South Africa, however, when

the crash came in 2008, some of the agree-

ments had to be terminated. Ironically it is these

cancellations that have been a catalyst for the

companys transformation.

In response to the global economic crisis

the company started to take on a greater variety

of contracts among the junior to middle min-

ing houses. Perhaps most signicantly, Trollope

started to take its operations abroad, compiling

substantial international client base, with proj-ects in Australia, Turkey, Spain and France. The

workforce has also stabilised and risen to 1,000

Managing Director Guy Hopkins explains:

The economic downturn made us look at the

bigger picture and consider the possibilities of

trading on a global scale, he says. I think in


45/200



46/200

46 RESOURCES Trollope Mining Services

hindsight it was a good thing that we were freed

from the some of the long term contracts, as it

enabled us to pursue other options.

In the past we were far too exposed in one

single sector, with one single client. Now we have

an impressive range of clients, projects in sev-

eral different countries, a great reputation in the

industry and a steady cash ow, he added.

Promised land

Inspired by the healthy position and huge pool of

expertise within the companys ranks, there are

plans to expand within key African areas, notably

Zambia, Zimbabwe and Botswana. With the ord

book 90 per cent full there is also a solid found

tion on which to approach other ventures.

From a nancial point of view we are in an

exceptionally strong positionahead of a lot our

competitors. We probably went through the dow

turn quicker than anyone else, so we managed

to emerge from it quicker and equip ourselves

for the future, says Hopkins. Some of the othe

guys are still carrying old contracts at poor rates

at not getting the yields or protability.

During what has been a very steep learning

curve the company has also had the opportunit


47/200


to ne tune its equipment policy. All primary

machinery must now be brand new, ensuring

it has the longest possible life span, while also

providing reliability and exceptional performance.

The result of these widespread changes is

a fresh impetus among staff whose morale is at

an all time high.

Family values

Peter and John are still very much involved in the

company and are as passionate as ever. John is

involved in the plant side, where he is currently

mentoring an up and coming manager, and Peter

is lending his considerable acumen to business

development.

We are keen to retain a family ethos within

the business, while still embracing core corpo-

rate principals, with structured systems, poli-

cies and procedures. Its about striking the right

balance, concludes Hopkins. I look at how the

business runs on a day to day basis and, while

it is very professional, it still has the spirit and

personal touch of a family business.

The biggest test for a company is how it rolls

when the punches are ying. Trollope refused to

throw in the towel and instead came out ghting

Trollopes journey is an uplifting triumph ove

adversity tale and, after doubling its turnover in

the last year, it seems like this story has many

more chapters still to be written. TAB

www.Tmsgroup.co.zA


48/200

DeAling wiTHDeTOnATiOn D

J Di & B


49/200

048

HeMAnD

st

resOurc


50/200

50 RESOURCES J Di & Bst


51/200


Miig c b dgs bsissd t isks ivvd y

wt psig i stigt c is tk. Wit tis i mid it cms

dw t cmpis sc s diig d bstig spciist J Di

& Bst t tk c t pytcics d ctic dttis

qid mis t v ti idd pyds.


52/200


wiTH A TurnOver in excess of ZAR300 million,

Jef Drill & Blast has emerged from depths of

recession, with aplomb.

In general the resources we are majorly

operating in are really on the upespecially now

that the export markets are stable again, says

Jef Drill & Blast managing director Johan Pieterse.The only thing that we see threatening the busi-

ness is the current labour trends in South Africa.

The company has a 300-strong workforce

and a very impressive staff turnover of less than

one per cent a year, according to Pieterse, who

says that despite union action and strikes dis-

rupting certain industries in South African, Jef

Drill & Blast operations look likely to continue

unhindered due to its good staff relationships.

We have a very good relationship with all

our people, notes Pieterse. But its the outside

inuence were worried about.

Within the company we are a well-oiledmachine, with things ticking over and under

control. Weve got a great consumer base, grea

people working for us, great equipment and we

are owned by a great company with great senio

management gures; so as it stands everybody

is happy, he asserts.


53/200



54/200


A rich history

This year the company is celebrating its 21st

birthday and has, in the past two decades, built

up a colourful history.

Pieterse joined the company in 1994 and

two years later was part of a team that led a

management buyout of the rm. In 1997, JefDrill & Blast founder Peter Francis retired, at

which point Pieterse and his team took over the

running of the company.

Following ten successful years of growth, the

specialist mining rm was bought out by South Afri-

can mining giants Sentula Mining Limited in 2007.

The recession, however, was just around

the corner. Jef Drill & Blast initially struggled

through the nancial downturn, and as a result

is today ploughing much of its focus into the

coal mining sector.

Pieterse says that the company indirectly

lost business through the global decline in gold,having previously worked with clients within tha

industry and in the diamond mining sector.

We were working on projects that actually

closed down or mothballed, says Pieterse. The

fact that we suffered as well led to us to lose 50

per cent of our business in 2009 because of th


55/200


recession; but we realised that the country needs

coal to supply people with electricity.

The company currently uses 45 specialist

drilling rigs in the opencast mining sector, and

has its operational eyes focused on the growing

coal sector in southern Africa.

Jef Drill & Blast is a key division within Sen-tula, servicing all of its opencast mining projects

as well its own expanding list of clients.

Formerly known as Scharrig Mining Limited,

Sentula has been listed on the main board of the

Johannesburg Securities Exchange since 1993.

Involved in opencast mining and rehabilita-

tion with operations in 12 countries across the

African continent, Sentula is also one of the ma

jor suppliers of outsourced mining and rehabili-

tation in the South African coal mining industry,

and has grown to become the leading opencast

coal mining contractor in the country.

With such a wealth of managerial talent toturn to at Sentula, Pieterse says that Jef Drill &

Blast has found itself in a fortunate position.

Saety rst

Working for Jef Drill & Blast may sound like fun,

but causing explosions and detonating dynamit


56/200



57/200


is not childs play. The company deals with safety

in the most serious manner possible, notes Piet-

erse, who says safety is part of the rms fabric.

It is a dangerous business, but it is also like

driving a car, he remarks. You can do it safely if

you stick to the rules and regulations.

Safety for us is a paramount concern and

we start off with a safety perspective in every-

thing we do. We undergo a constant process of

training and retraining with our employees, in

order to keep them up to speed with the latest

safety developments, and we also try to make

it interesting for them, he adds. Safety is our

lifestyle and it is not something we enforce

with our staff.

To further push through his point about the

companys attitude towards safety, Pieterse says

that it is something the rm lives and describes

it as like a religion in our business.

Removing the hassle

In a marketplace that needs professional blast

and drill specialists in order to function, JefDrill & Blast is busy setting itself apart from

the competition.

We have been a very good service provider

in the past few years and our clients expect

us to make the customer number one in our

business, says Pieterse. We provide a unique

service and product, and its something that a

lot of mining companies cant do themselves.

We are sensible and we are able to allow

the companies we work with the chance to focu

on what they are good atminingmeaning we

can handle the earth-moving equipment.

We reckon what we can do is take a huge

hassle factor out of the hands of our customers

he stresses.

In the next few years the company is target-

ing a slow, but steady expansion, notes Pieterse

We are slowly, but surely, looking to develo

other markets and it is not a strange thing for us

to work in other sectors of mining, he reveals.

Mozambique is starting to make its mark on th

map now in regards to coal mining, as is Zambia

and the Democratic Republic of Congo, where

our sister company does a lot of exploration for

gold and coal, so these are markets were cer-

tainly looking at, along with Botswana.

Having recovered from the recession with a

bang, and having detonated a steady plan for fu

ture growth, Jef Drill & Blast looks set to embracan explosive future. TAB

JefDrillAnDBlAsT.cO.zA


58/200

MzeAl fOr

058


59/200

sAMBiAn cOpper

resOurce


60/200

60 RESOURCES Mis Ic.


61/200

I 2005 d 2006 aic ribw Mis

(arM) limitd, St aic divsid

miig d mis cmpy, istd its -

St aic xpti ssts t t

Stck excg tg expti d

Miig Icptd (). I 2009 wig

t distig , V S.a (V), Bzii

divsid mtiti, cqid 50 p ct

Mis (Bbds) Icptd (t

cmpy).Tis ws t bgiig t V/

arM jit vt (V/arM JV) tt wd

s t pts sig t jit vt t cs

cpp miig i St aic.


62/200


since THen, THe Vale/ARM JV has progressed a

number of exploration and extraction projects in

Zambia and the Democratic Republic of Congo

(DRC). The companys strategy is being driven

by its joint-venture status and its decentralised

business philosophy, according to senior general

manager Edward Legg.

The company leverages on technical and

corporate support from both joint-venture share-

holders and therefore accesses world best prac-

tical practice, remarks Legg.

The group currently employs approximately

250 staff, the majority of whom are drawn locally.

Its current key focus in Zambia is to develop

Phase 1 of its Konkola North Copper Project which

aims to produce 45,000 tonnes of copper from

2.5 million tonnes of ore per annum and has a

life of 28 years. Phase 2 of the project, which will

follow once studies are complete and has received

shareholder approval, will increase production to

100,000 tonnes of copper per annum.

Legg says: The climate for investment in

Zambia is very attractive due to the presentgovernments approach to expanding opportuni-

ties for investment.The company expects the rst

phase of the Konkola North Copper Project to

employ approximately1,500 people at full pro-

duction, of which 95 per cent will be Zambian. At

present it has approximately 1,400 contractors

on site for the development phase, which will

increase to a total of 2,000 the majority of whom

will be Zambian.

The Vale/ARM JV is also active in the DRC,

where Legg says the climate for investment has

improved due to infrastructure and service im-

provements.

In both the DRC and Zambia, the company

has local partners, being the state-owned min-

ing companies Gcamines and ZCCM-IH, heremarks.

Development plans and an aggressive

approach

The joint venture is currently developing the

rst phase of the Konkola North Copper Project


63/200



64/200


which will produce 45,000 tonnes of copper in

concentrate per annum from its underground

mechanised mine in Zambia.

It has also undertaken an extensive drilling

campaign in the remaining area of the mining

licence, where it expects to develop Phase 2 of

the project which will be of similar magnitude in

three to ve years time, notes Legg, who adds

that the Vale/ARM JV also has other exploration

projects in Zambia.

The company is also nalising a pre-feasi-

bility study for the development of an open cast

mine in the DRC, remarks Legg. Gecamines is

a 40 per cent partner in the Kalumines Project

with the Vale/ARM JV and there are also addi-

tional potential exploration targets in the mining

licence area.

We are aggressively addressing both of

these projects, he adds.

The execution of the rst phase of the Konko-

la North Project development, which includes the

underground infrastructure and the construction

of a processing facility at the mine, is underway,representing an investment of approximately

US$400 million, according to Legg.

In-ll drilling in the target area for the sec-

ond expansion phase has commenced and the

study for this investment will follow the resource

clarication.

Legg also points out that a pre-feasibility

study on the Kalumines Project in the DRC is

underway.

This anticipates the development of an

open-cast mine to process oxide ore in two phas

es, he explains. The rst phase is a concentra

tor, which will be followed at a later stage by a

solvent extraction and electrowinning renery.

In addition to these projects, the company

is also undertaking exploration at its mine sites

as it looks maximise all the opportunities it has

been presented with in the two African countrie

Community care and a ocused uture

The Vale/ARM JV has established a series of Co

porate Social Responsibility (CSR) programmes

at each of its operations designed to meet the

needs of local communities. At the Kalumines

Project in the DRC and Konkola North Project in

Zambia, the company is focusing on infrastruc-

ture, primary education, agriculture and health

initiatives.

Legg notes: The initiatives at Konkola Nortare currently being readdressed with the comm

nity due to the development of the mine.

We are anticipating a potential resettlemen

of residents in the affected area, which will resu

in infrastructure upgrades in the enlarged Konk

la village. During the economic downturn in 200


65/200


the company was forced to resize, but now is well

positioned to take advantage of the increased

demand for copper, notes Legg.

Alongside its CSR initiatives, the Vale/ARM

JV also has in place an environmental program

to monitor and mitigate the impact of its mining

and exploration activities.

Both joint venture partners monitor theircarbon footprint, and therefore the company

subscribes to the same values, Legg remarks.

We adopt Equator Principles with respect to en-

vironmental management and the social impact

of mining.

In the coming years the company is looking

to take advantage of its projects as they come

online and in some cases enter full production,

according to Legg.

The company expects Phase 1 of the Konk

la North Copper Project to reach full production

within the next four years, and Phase 2 to be we

into the development stage in that time period,

he says. But moving forward, we will continue taddress the expansion of our footprint into the

Southern Africa copper business.TAB


66/200

66 RESOURCESBeacon Hill Resources

MOzA

Big plBc hcmpy Mzmbi

066


67/200


Biques

yerrscs is tid mc s c sty

resOurc


68/200


Wit gb st pdcti tippd t

ics t 1.5 bii ts i 2012, its i

t sy tt mis w v gt i y d

scd tp pjcts i t igt ctis, i gd std t sb. Ts w

v mgd t t Mzmbic pjcts

it ti ptis mgst t bst,

d t w tt v ctd s st-mvs

twds cig -tm pdcti i

t gi t mst ppdd .

o sc cmpy, my td gb

by ists wit tw pimy ssts tt t

y ivsts bi, is Bc hi rscs

Pc (lon:Bhr); t cmpy i pssssi

xcitig mgsit py i twst

smi (t at Mgsit pjct, wit

JorC cmd sc 39 mii

ts tck t cmmc sibiity

i 2012) d t Mis Mtiz ckig

c mi i t, Mzmbiqt y

ptig mi i t ckig c dstiti

cic (JorC sc 80 mii ts,

mib sc 57 mii ts).

since rAising Afurther US$20 million in funds in

April, Beacon Hill has been particularly busy. From

its recently completed Phase 1 drilling programme

at Arthur River, to readying for coal export from

Minas Moatize, there is a lot to prepare for. Minas

Moatize is on track to commence coal exports from

the second quarter of this year. Arthur Rivers scop

ing study continues in full swing, taking the projec

towards full feasibility and nding the right partner

for future success. In the words of Justin Lewis,

Chairman, weve been going hell for leather.

First in ete

As the company at the helm of the only operat-

ing coal mine in Tete to date, BHR is in the mids

of some incredible investment and expansion.

Neighbours Vale and Riversdale Mining are

going about building two of the worlds largest

coal projects, commanding new deepwater port

facilities, rail refurbishments, river barging, wor

forces and everything else needed to quite liter-

ally re-landscape the region as a mining hub. As

a result, Lewis explains, it has been important

for BHR to uphold the political importance of th

Minas Moatize mine and understand what its

successful production means for the province a

this stage of its overall development.

We [are] currently producing what are fairlysmall amounts of coal, ve to 10,000 tonnes a

month. Since we acquired the mine a little over

a year ago weve pursued a twin track strategy:

rstly to continue production from the existing

mine, he says.

Mozambique wants it to continue to produc


69/200



70/200


and weve refurbished it [to do so]. Also in terms

of our overall strategy, its important for us to

maintain our rst mover advantage, particularly

in securing access to the logistics.

In parallel with this strategy, BHR has been

working to develop a larger open pit mine aimed

at producing approximately 4 million tonnes a year

run-of-mine and 2.35 million tonnes a year of sale-able coal, with about one million tonnes of that

made up by coking coal. The miner has already

completed drilling across the entire project, tak-

ing the whole mineable resource from 25 million

tonnes to 57 million tonnes, and in effect more

than doubling the mine life from eight years to 15.

Were on course to be in production from

the rst quarter of next yearsimilar timelines t

Vale and Riversdale, Lewis says.

As part of existing production, weve also

just completed the installation of a small wash

plant which will have capacity of about 120

tonnes an hour, or if you ran it at full pelt about

million tonnes a year.During the next 12 months leading up to open

ing the larger open pit, BHR will produce exportab

grade coal with these facilitiesperhaps even by

the beginning of July. This plant will meet the proj-

ects requirements until the larger pit comes into

play, and the company will construct a larger wash


71/200


Global Satellite Service Providerfor VSAT and

Portable Satellite Solutions

Welcome to the Global Village

www.la-mirage.co.za | [email protected] | T +2711 6822184 | Follow us on Facebook

Communicaons provider to Beacon Hill and Randgold Resources

plant in time for that, with a capacity of about four

million tonnes a year, by early to mid-2012. In ex-

amining the way Minas Moatize and BHRs related

infrastructure will expand, and looking at the wider

regional requirements of the many setting up shop

in Tete, it becomes clear quite how important it is

that BHRs core project continues to develop: It is

through following Minas Moatize that a lot of Tetesfuture mining will take place.

More coal, more access and growth or

BHR

Whether youre a new arrival, old hand, large proj-

ect planner or minor involvement party in Tete, it

appears that general consensus for future coal

exports trends towards going via rail-to-port. Lewis

says that BHRs long-term ambitions are the same

focused on transporting its coal to the port of Beir

and couldnt be better timed given the plans for

upgrades and extension work taking place.

Importantly, were looking at exporting a max

mum of about two million tonnes a year of coal,and most of that will end up in India. For us, Beira

can be a long-term solution because although its

a shallow port, and exporting coal to India that on

tends to have shallow ports too, he says.

[Other larger project companies] need to

be able to load direct onto cape-size vessels,


72/200


particularly when they get up to large volumes,

and thats why theyre looking at developing othe

ports. In the short-term were also about to com-

mence trucking coal to Beira any day now.

With the railway line slightly behind schedul

with refurbishments taking place up until Sep-

tember-December this year, BHR has a 500,000

tonnes per annum trucking plan in place to

commence initial export quickly; a little more

expensive than using the rail straight away, but

as Lewis says, with coking coal you do have quit

a lot of margin in what youre doing. Of the fund

raised in April, about half has gone towards the

Tete logistics chain, in keeping with the compa-

nys ability to move quickly and retain rst-move

advantage. At the same time as this balance of

funds, the company entered a Memorandum of

Understanding (MOU) to acquire an additional l

cense area nearby named 1165 (1165L), abo

40 kilometres east of Moatize.

We think its an interesting one because it

in the Moatize Basin where known coking coal e

ists, its surrounded on three sides by Riversdaland on one side by another license area with

a known billion ton coking coal resource on it,

Lewis says.

Theres an estimated resource of about 40

million tonnes of coal, although thats a non-

JORC estimate by the vendors. The MOU allows


73/200


us to acquire that area for $42 million, so $10

million of the funds raised provides the equity

portion of that and were in the process of nal-

izing that acquisition and its debt funding.

Once again, the group has used its initial po-

sition to expand and gain greater access to more

coal. By bringing its holding into production in

conjunction with expanding upon its logistics, it is

poised to develop an ever more signicant-size of

operations.

Clearly in terms of Beacon Hill, it turns us

from what might be seen as a fairly niche player

with an operating mine into a strategic player in

the region with a combined resource of north of

500 million tonnes, Lewis says.

We think that puts us in a better position than

someone coming in three or ve years time.

Still moving rst

At the earlier stage Arthur Magnesite project in

Tasmania, BHR is about to nalize the scoping

study. Lewis says that critical licensing has been

put in place and a small drill program alongside thenow-complete study will run until August/Septem-

ber. At that stage, the company will begin looking

at developing a project and going about nding the

right partner in the process. On track for production

within 24 months, it appears that Arthur Magnesite

may well be BHRs next success storyafter Minas

Moatize and global appreciation of Mozambican

coal industry, of course.

Ive been in and out [of Mozambique] in th

last few years, and its developed enormously.

The speed of change in the last few months

makes you very hopeful about the next 12

months, Lewis says.

We sit right in the middle as the only produ

ing mine and have many strategic advantages,

giving us a great platformand demonstrating

to some extent 1165 and growing and adding to

thatand also it makes us an exciting potential

opportunity to other people who might want a

foothold in this region.

BHRs imprint on Mozambiques growing co

industry has and will be incremental to its futur

success. In addition to getting in rst as a com-

pany and prospering from that, it has provided

many of the building blocks that will open the

region up for future activity. In a matter of days

the Minas Moatize mine will commence export,

offering a vital new source of coking coal as

global demand from the steel industry continueon strongly. The Arthur Magnesite project will be

the next chapter, and given the way the Mozam-

bique episode already reads its going to be a

very exciting story. TAB

www.BHrplc.cOM


74/200

creATing An

Business Hu

074


75/200

fricAn

Municip


76/200

76 MUNICIPAL City Cp w

Cp w ctis t bid d dvp,

wic t sm wd sm spisig

csidig it is y y t t city

pyd g d smwt xpsiv i stig t FIFa Wd Cp, d

tt t wd is sti cvig m

cssi.

BuT fOr sOuTH Africas second city, infrastruc-

tural projects and property developments are

moving ahead, and in many ways because of the

work of the citys municipal authority.

Andre Human, who is the manager for acqui-

sitions and disposals for the City of Cape Town

municipality, says of his role: I buy properties as

required by the city and also sell properties no

longer required by the city. The City is continu-

ing with the expansion of its public transport

project (BRT) and there are also a number of

bulk infrastructure expansion (roads, sewer and

water) projects that require the acquisition of

land by the City. With regard to the sale of proper-

ties, there is still opportunity to selectively placeproperties onto the market for developmental

purposes.

Human says the City of Cape Towns mission

statement is rst and foremost about trying to

be an effective administration with a well-main-

tained and managed asset base.

What my department does is to ensure that

we put our properties to the best use, Human

explains. We also rent out some of properties and

we have a rental portfolio worth about R55 million

We also sell properties to NGOs or we re

properties to support community and social

work such as crches, religious site and those

kinds of things.

In taking vacant sites across the city and trans

forming them through public-private investment

projects, or through sale to private investors, Hu-

mans department is playing a very important role

in Cape Town, ensuring that the sites no longer

required by the Citys authority are put to good use

A role in society

The money raised comes back into the cof-

fers of the city, Human says of plot sales made

by the department. Sometimes some of the

income is offset against infrastructure improve-

ments such as roads, electricity, or bulk public

upgrading, for example.

With its work with NGOs and local charitiestaken into account, Human says that he under-

stand the public value of his departments work

We play a very strong social role in terms of

our properties and we also have an economic role

he notes. This economic role is especially true in

our previously disadvantaged areas, where our cit


77/200


has sold properties in order to create job opportuni-

ties and investment opportunities.

Weve also created quite a lot of retail and

housing development opportunities, which we

facilitated by getting developers on board in a

partnership.

One such example, cites Human, is that of

Khayelitsha Mall, a 17,225 metres squared retailcentre in the Khayelitsha Central Business Dis-

trict (KBD), which has bought business activity to

an area that was in dire need of investment.

Developed at a cost of R86.5 million and

ofcially opened back in November 2005, the de-

velopment of the retail centre was a partnership

between the City of Cape Town, the Khayelitsha

Community Trust and Rand Merchant Bank.

The centre was originally occupied by 51

retailers, but had to be immediately expanded

due to a high demand for trading space; by June

2006, an additional 2,000 metres squared of

retail space had been constructed, bringing the

total cost of the development to R110 million.At the moment, the department is busy wor

ing on the expansion of the citys conference

centre, in a project designed to strengthen Cape

Towns appeal among business tourists.

Each of our projects has a different focus

and strategy, and although our primary focus is


78/200

78 MUNICIPAL City Cp w

on upgrading and uplifting our own communities,

there are also projects that are aimed at bring-

ing people into our city and thereby to strengthen

our tourism sector and create employment to our

people, says Human.

With much help from Humans department

in terms of land acquisition and investment,

the Cape Town International Convention Centre(CTICC), the continents most successful con-

vention venue, is currently planning a massive

multi-billion rand expansion that will include, in

collaboration with the provincial government and

the private sector a new hotel, private hospital

and retail facilities.

Situated along the beach in Blouberg, the

department also had a huge hand in bringing th

Big Bay development to fruition.

The land was sold by the City on public te

der to various individuals and developers and

the property was packaged (zoned, subdivide

bulk services provision, etc.) in a partnership

arrangement between the City and develop-

ment rm Rabcav.

The development consists of 450 single,

500 group housing and 395 sectional title

units, as well as 10,000 metres squared of

commercial development and a mix-use deve

opment incorporating retail, restaurant, ofce

and residential units.

Another notable development it has been

involved in is the Galleria Developmenta R1

billion 110,000 metres squared mix-use deve

opment in the Tyger Valley area of the city. As

part of the transaction, the developer Devmet

Properties will also manage and maintain

Council-owned facilities located on an adjace

property.

Downturn and duty

Of the recession, Human says that Cape Town

certainly felt the pinch.

We had a number of projects that were

not successful in the sale, but there are still


79/200


opportunities, he notes. In previously disad-

vantaged communities where there had histori-

cally been very little investment, there are still

opportunities, and we have found ourselves

concentrated on these opportunities.

What is diferent in our role

compared to a private sector

companys role is that or us its

not only the bottom line, he

enthuses. In Cape Town where

we have quite diverse communities,

including some very rich and some

very poor, one has to take into

consideration these elements, and

while we have learnt many lessons

along the way, we have continuedto improve the service were

ofering.

Human says that he has been very fortu-

nate to have been working in his eld for the

past 20 year, and is grateful of the chance to

have played a role in facilitating such an ofce.

There is certainly the chance of spreading

such a concept as our department out to other

municipalities across South Africa, he enthus-

es. What we do is very much internally orien-

tated in terms of looking for opportunities for

Eris Property Group isproud to be associatedwith the City of CapeTowns ongoingdevelopment initiatives

www.eris.co.za

Tel : (011) 775-100

our local people and creating social prospects

and facilities through the proper utilisation of

the Citys assets.

With this in mind, along with the local gov-

ernment authoritys commitment to making the

most of the investment and development oppor

tunities available to it, it is surely only a matter

of time before the model of the Citys property

management department is replicated in munic

palities across the country. TAB

www.cApeTown.gov.zA


80/200

pArSt aic

Jit vts t Sttt pivt d pb

0


81/200

lifenti Pks

c nti Pks pvts c iv i my

0

MunicipA


82/200

82 MUNICIPAL SanPks

wHile MAn HAs crafted some impressive specta-

cles in the last few centuries, it is Mother Nature

that still remains the most accomplished and

envied architect.

Among her nest achievements are the intri-

cately sculptured landscapes, captivating pan-

oramas, vivacious vistas and awe-inspiring wild-life of South Africas National Parks (SANParks).

It is perhaps tting that a country whose history,

vibrancy, colour and diversity resonates so pro-

foundly in this majestic region.

Every year thousands visit the parks hoping to

set eyes on the cornucopia of spectacular wildlife.

All manner of creatures, including lions, leopards

elephants, rhinoceros, buffalo, various antelope

and baboons, still traverse the stunning terrain,

allowing visitors a truly unforgettable experience

Partners

In recent years SANParks has been expandingits operations through its Public-Private sector

partnerships (PPP) involving eco-tourism, as

dened in the Public Finance Management Act

(PFMA) regulations. These initiatives include th

provision of accommodation, restaurants, retail

platforms and activity-based projects.


83/200



84/200

84 MUNICIPAL SanPks

The exciting development of PPPs have al-

lowed SANParks to boldly branch out into new

markets, improve efciencies, create valuablejobs and have a much wider product range.

While lodge concessions have allowed SANParks

to venture into ve-star luxury catering for the

eco-tourism market and, with good conserva-

tion management, draw experts in several elds.

The accommodation options have also been

increased by the Golden Kudu initiative which

offers concessions, making sure the parks can

be experienced by people from all walks of life.Within the lodge concessions, environmenta

management is very stringentlike establish-

ing exactly what the optimal water consumption

should be. This productive brand of environmen

tal management meets the highest expectation

in the industry.


85/200


With such a seductive product it is easy to

see why SANParks has also formed some equally

fruitful relationships with private sector organ-

isations, including construction companies and

architects. This exibility reinforces its dynamic

outlook and has a noticeably positive impact on

to the local economy.

Progress

In addition to tourism, accessibility has rapidly

increased, with about 500 extra top-of-the-range

beds for customers. The shops and restaurants

have

Documents

The African Business Journal Aug 2011 - John Pinching