AfricAn Business

January 2012 Volume 3 Issue 1




Business Reducing carbon footprints

sport Africa’s Olympic Hopefuls

Company foCus Roymec Technologies

CRF: Building up
South AfricA’S best employers



Proudly serving Africa
How 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.

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eDiTOr’s note

HellO fOlks AnD, depending on when you’re reading this, Merry Christmas/Happy New Year/Hope you’re enjoying being back at work/What are you wearing?!, This mighty fine, slightly festive and log-fireheated edition of TABJ starts—as the cover’s industrious ‘wall’ so brilliantly suggests—with an exclusive interview, and the person in the hot seat is Corporate Research Foundation (CRF) visionary Sam Crous. We discuss how the organisation is helping employers and employees throughout South Africa to achieve their full potential. She also talks candidly about how exciting it is to work in such a vibrant economy. There are plenty of other beautifully-wrapped festive treats underneath the tinsel-draped boughs of the TABJ tree, including another brutally honest sports report from our man in Africa and an update on the unstable political situation in Cairo. Also, as we sprint towards the start of the greatly-anticipated London 2012 Olympics, TABJ attempts to keep pace with Africa’s gold medal contenders.

In addition, we take a look at how Food & Trees for Africa (FTFA) is combining with Airports Company South Africa (ACSA) in an effort to galvanise carbon neutrality initiatives. As indicated in the CRF interview, the South African business landscape is buoyant, versatile and thoroughly looking forward to a fruitful New Year. Our compendium of company features certainly reflects this optimism, with contributions from the construction, mining, transport and investments industries. It only remains for us to venture into the hitherto unchartered territory of 2012. Who knows what the constantly exciting and unpredictable African economic landscape has in store for us next? Whatever happens, TABJ will continue to proudly bring you the most comprehensive news, features and company profiles in the business. As always, great talking to you, John

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.
© 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

John Pinching | Editor | Ben Watts | Staff Writer | Laura Hedges | Editorial Assistant | Vladimir Lukic | Creative Director | Chris Moore | Sr. Advertising Designer | Margaret Oldham | Sr. Graphic Designer | Wincy Law | Sr. Graphic Designer | Tanya George | Advertising Designer | Marc Mauricio | IT/Production Support | Constantin Turtulea | Head of Research | Natalie Edney | Head of Sales | Khayyam Darr | Research Director | Andrew Miskin | Research Director | Hugh Braithwaite | Research Director | Dee Nazer | Research Director | Guy D’Angelo | Research Director | Thomas Eros | Research Director | Michael Alexander-Jones | President | Linda Neal | Chief Executive Officer | Naveed Yusuf | Chief Information Officer | Gemma Parkins | Executive Assistant | Heather MacPherson | General Accountant | Simon Curran | Vice-President/Publisher |

South africa office GEoRGE MEDIA InC. 23 Wellington road Parktown, 2193 Johannesburg

uK office 2 Sheen road richmond Surrey uK TW9 1ae

Table of cOnTenTs
January 2012 | VoluMe 3 | ISSue 1


cOver feATure CrF: Building up South africa’s best employers Muse news coming out of africa flying THe green flAg Innovative partnerships plant
trees of life as transport companies target carbon neutralising

010 018 028 036 042 050 056 064 072


rOunD uP frOM Our sA cOrresPOnDenT: Keep your enemies close africa’s OlyMPic HOPefuls
Quick shot: cHAOs AnD cOnfusiOn in Cairo

POliTics TrAnsPOrT

DuBigeOn BODy AnD cOAcH on the buses MAssyn vervOer logical logistics lBc lencO lenco-operation




Table of cOnTenTs
January 2012 | VoluMe 3 | ISSue 1

invesTMenTs Mining

MisTy Blue invesTMenTs urban Durban
Iron Maiden: Tonkolili mine opens for business, as AfricAn MinerAls lTD. make a big impression on the mining landscape The steal deel: sAHArA Mining introduces new mill in Mali


086 104 114 124 134 144 150

eire cOnTrAcTOrs The business of blasting lenDOr & BurTOn The Zambian brand TsHiPi MAngAnese Mining Scene steeler DigBy Wells Creating the right environment Mine like a star: rOyMec TecHnOlOgies



CRF: Building up
South AfricA’S best employers

In great company
The CRF Institute has been identifying and rewarding brilliance in the workplace for 20 years. TABJ’s John Pinching meets CRF Manager Sam Crous to talk about why South Africa has become such an exhilarating place to make a living


COVER FEATURE • CrF: Building up South africa’s best employers

HOW DiD crf cOMe ABOuT? CRF is an international organisation and our head office is based in the Netherlands. We’re operational in 15 countries—South Africa, Australia, China, South America and throughout Europe. We’ve been around for about 20 years and in South Africa for 11. The company started out publishing profiles on great places to work and, over the years, we’ve refined that process into a far more scientific and objective approach, which recognises employer excellence. Each year we now release an index for every country; listing great places to work, rating companies and identifying best employers. By virTue Of Being lisTeD AnD APPrOveD By yOu guys, DO THe recOgniseD cOMPAnies geT ADDeD kuDOs? Yes, absolutely, because when we are really comprehensive in how we conduct our research. We have a standardised approach in all countries involving 80 questions about HR systems, performance, rewards, recognition, management and leadership. Also different countries will have a portion of what is relevant to its local market. Essentially, what we’re looking at is the framework that’s in place to manage talent and align the business. We want to see whether it is sustainable, from a people point of view, for three to five years.

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“each individual company is able to see quite definitively where they meet current market trends in terms of policies and practices; whether they’re below or above the national average”


COVER FEATURE • CrF: Building up South africa’s best employers

HOW DOes iT HelP Businesses TO iMPrOve Once yOu’ve cArrieD OuT THAT AnAlysis? We put a benchmark on reports for organisations that have gone through the research process. For each question they are asked, the answers are graphically represented, and benchmarked against the certified average. As a result each individual company is able to see quite definitively where they meet current market trends in terms of policies and practices; whether they’re below, or above the national average. iT sOunDs like THey cAn use THOse resulTs TO fOrM AnOTHer sTrATegy in fOr THe fOrTHcOMing yeAr Or lOng TerM fuTure? That’s exactly what we’re trying to do. Our business clients use our benchmarking data to establish its HR strategy, it reassures them year on year regarding what their competitors are doing relative to them. It’s also an attention-focus for talent in the marketplace who are deciding who to work for. When there are hundreds of companies to choose from, it gives people a starting point. Tell Me ABOuT THe inDusTries yOu DeAl WiTH? At the moment there’s no limit to the industries that we can analyse, but the industries themselves almost self-select, for example, getting

“The more traditional industries are difficult to change, because some almost have the opinion that they don’t need this type of initiative, but as we move into an increasingly evolved world of work, they’re going to need it more and more”

JANUARY 2012 • The African Business Journal


mining involved is quite a challenge because it’s a heavily politicised and unionised industry, particularly in South Africa. We do have some mines—like Anglo—which is linked to the South African government. The more traditional industries are difficult to change, because some almost have the opinion that they don’t need this type of initiative, but as we move into an increasingly evolved world of work, they’re going to need it more and more. HOW DO yOu feel THAT THe Business lAnDscAPe in sOuTH AfricA HAs cHAngeD? I see that companies operating in ICT space have better propositions than any other organisations, especially in South Africa. Our top three best employers, for example, are Acenture, SAP and Microsoft. Historically, they’re often more flexible, more nimble and they know technology—it’s something they’re familiar with and it definitely enables an entire firm to function in a different way. Technology has dramatically improved the way HR functions and it has reduced the administrative load on HR over a number of years, transforming it from a largely administrative function, into a more strategic business partner. The HR side of the business is adopting a much more modern model, particularly in South Africa.


COVER FEATURE • CrF: Building up South africa’s best employers

“I think South africa, as a case study for the new world of work is quite an interesting one because so much is going on—there’s an entrepreneurial spirit and the country is geared towards economic growth”

JANUARY 2012 • The African Business Journal


in sOuTH AfricA, All sOrTs Of DifferenT, MulTiculTurAl AnD inTeresTing Businesses Are crOPPing uP everyWHere; iT’s cleArly An exciTing PlAce TO Be WOrking I think South Africa, as a case study for the new world of work is quite an interesting one because so much is going on and there’s an entrepreneurial spirit and the country is geared towards economic growth so, while we have these big powerhouses organisations driving the economy, more and more smaller businesses are cropping up, creating jobs in the process. After many years in isolation, we have now had 15 years of freedom to explore, travel and pursue our dreams. This has given us a great platform to be a global force in the job market. It’s inspired a culture of people wanting to try different things, and the result is a collection of companies that are, in many ways, ‘Google-esque’, in terms of how they’ve formed their culture and the type of initiative they have in place. I think it’s easier for South Africans to evolve in this way because we don’t have very many of historical organisations that have hundreds of years’ worth of history holding them back. HAs THe yOuTH AnD enTHusiAsM Of A lOT Of sOuTH AfricAn Businesses, BeTTer enABleD THeM TO survive THe glOBAl DOWnTurn?

We’re used to ups and downs and generally deal with them very well. When we have our downs, the fall is not quite as steep as you would see in Europe or the States, because we are such a young economy, so we have less distance to fall when it comes to the global recession. It is an exciting time and when it comes to people management issues. We’re tailoring the organisation to hit the needs of the different generations, and particularly the diversity of South African, where there are so many positive initiatives, like the black economic empowerment agenda. in TerMs Of yOur exPAnsiOn sAM, WHAT’s THe PlAn fOr THe nexT five yeArs in TerMs Of AfricA As A WHOle? What we see in South Africa is a drive to really professionalise HR and we want to ensure that it becomes a good business partner across the continent. This area has become such a high entry on the agenda of most South African businesses that you’ll see it in a lot of mission statements. This is a conscious effort to take responsibility and really drive the economy of Africa and South Africa. CRF aims to start working in sub-Saharan Africa over the next two years and we are very excited about discovering what the business landscape is like for organisations and multinationals operating in Africa. TAB


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life’s A gAs fOr AnADArkO Houston-based independent oil and natural gas producers, Anadarko Petroleum Corp., have announced the discovery of their largest natural gas field off the coast of Mozambique. The deposit, 35 miles offshore, contains 15-30 trillion cubic feet of recoverable natural gas; enough to satisfy U.S. natural gas demand for a year. This discovery, paired with the similarly large deposit found by Italian energy company, Eni S.p.A, earlier this year, has resulted in Mozambique’s status as a major gas exporter rising considerably. “This could be one of the most important natural gas fields discovered in the last ten years,” said Jim Hackett, CEO and Chairman of Anadarko. Anadarko is currently building a facility in the region to retrieve the gas, with an expected export date set for 2018. Exports are likely to be destined for China and Japan, according to a company spokesman. Claiming to be the nation’s largest not-for-profit


sAnfOrD HeAlTH WOrks MeDicinAl MAgic in AfricA Dakota-based medical group, Sanford Health, has opened a branch in Ghana and now has an established presence on four continents. rural health care provider, Sanford Health aims to eventually run ten clinics in the country and has similar plans for Ireland, Mexico and Israel by 2014. It hopes to eventually open 100 clinics worldwide. Sanford’s main aim in Ghana is to provide paediatricians to children in need but, with a population of 24 million, all of whom are new to the concept of immunisation, the healthcare organisation will have to treat people of all ages. “In many developing countries, we will need to offer care to the whole family in order to meet the health care needs of children,” said Ruth Krystopolski—executive vice President of development and research at Sanford. The clinic already running in Cape Coast tends to 800 patients per week and two further clinics are expected to open in Mankessim and Kojokrom during 2012.

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of africa

THe sPiriT Of nAnDO’s A recent advertisement by restaurateurs Nando’s South Africa, presenting Zimbabwean President Robert Mugabe as ‘the last dictator standing’, has caused considerable unrest among Zimbabwe militants. Jimu Kunaka—head of the ‘brotherhood’ of Mugabe loyalists, Chipangano—has called for the restaurant chain to withdraw its advertisement or face disciplinary action. The commercial shows Mugabe dining alone while reminiscing over days spent with previous dictators such as Moammar Gadhafi, Saddam Hussein and Idi Amin, as Mary Hopkin’s hit song, ‘Those were the days, my friend’, is played in the background.

Innscor Africa, holders of the Nando’s franchise in Zimbabwe, said that they were not aware of the South African campaign. “Innscor strongly feels the advertisement is insensitive and in poor taste,” said Musekiwa Kumbula, director of corporate affairs at the company, “but no consultation takes place between different franchises when they are formulating marketing strategies.” Under Zimbabwe law it is an offence to insult Mugabe or to undermine the authority of his office, and Chipangano have demanded a nationwide apology for the negative portrayal.


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Business TO BAck ATTAck On AiDs Treatment Action Campaign (TAC) skills development officer, Lawrence Mbalati, has said that the South African business sector must endorse labour laws that are non-discriminatory, and boost funding towards HIV/AIDS programmes. “Business must take a lead in fighting stigma and discrimination at workplace and communities by promoting labour laws that are non-discriminatory and promoting conducive environment for HIV testing and treatment,” Mbalati said. With World Aids Day fast approaching, there is a desperate need for funding and awareness surrounding the cause.

“Business must also increase strategic health and HIV funding,” Mbalati added, “It must promote capacity building and skills development for community empowerment and development.” Reports have shown that globally an estimated 33.3 million people are HIV positive, and South Africa has the largest number of HIV sufferers in the world, with an estimated 5.6 million people living with the virus. South Africa’s recent investment in fighting HIV has proven effective, according to a report made by UNAIDS (Joint United Nations programme on HIV/AIDS). The report revealed that 95 percent of HIV positive, pregnant women in South Africa, were

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of africa

receiving an antiretroviral in order to prevent their babies getting the virus; a 30 per cent increase since 2007. The rate of new HIV infections to the country has decreased by 22 per cent between 2001 and 2009, and AIDS related deaths have decreased by 21 per cent between 2001 and 2010. TATA fOr nOW Anil Sardana, Managing Director of Tata Power Co., has announced company plans to build electricity generation plants in Indonesia and Africa in attempt to counteract the tough business environment in India. India’s electricity generation is being

quashed by fuel shortages and difficulties in getting land and environmental clearances, so to keep business running Tata wants to build power projects in Africa through its existing group units in the region, but did not disclose where this was. The announcement echoes an earlier statement by Ratan Tata, Tata Power Chairman, who said that the company was: “tendering quite actively on power projects outside India, so that the needs of shareholders can be fulfilled.” Tata Power is currently building a 4,000 megawatt power project in India which is designed to run on Indonesian coal but a recent raise in Indonesian coal prices is causing major problems. “We believe that blending of coal can offset


Muse news coming out o



the price to some extent. We are sourcing lowgrade coal from Indonesia, Africa and other existing mines and will so trial runs to find if they would be capable of reducing the cost of power,” he commented. BHArTi HiT THe MArk Bharti Airtel has said that its African subscribers have now reached the 50 million mark. The Indian mobile firm acquired business in 15 African countries last year in a $9 billion deal and is the world’s fifth biggest mobile operator.

Manoj Kohli, chief executive of Bharti Airtel, said: “This milestone demonstrates our continued dedication and commitment to Africa,” and the firm aims to have 100 million African customers at the beginning of 2013. The firm operates a low cost model in Africa whereby other companies are sub-contracted in to manage non-core business activity; Nokia Siemens and IBM run network management and IT maintenance respectively. Bharti’s African branch experienced a net loss of $7.4 billion for the quarter but revenue

SEPTEMBER 2011 • The African Business Journal OCTOBER


of africa

grew by 23 per cent for the year, and operating margins grew to 26.4 per cent for the quarter. Alongside its membership figures, Bharti has a target to achieve $5 billion in revenue and $2 billion in operating profit from Africa by the end of March 2013. sOuTH AfricA TriAls MicrOsOfT Office Global IT giant Microsoft has announced the trial of its newest business productivity platform, Microsoft Office 365, in South Africa. The free trial will allow South African busi-

nesses and users to try the program for six months before its official launch in 2012. Office 365 does not require any existing Microsoft infrastructure to operate and was created to allow businesses to run smoother and more efficiently with the introduction of a vast variety of virtual applications. “Office 365 is the best of everything we know about productivity, all in a single cloud service. We have had a huge amount of support from our local partners and customers to bring cloud computing to the region,” said Melanie Botha, Micro-


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tswana, Mozambique and Angola, with desks in finance, sales communications, marketing, retail, logistics, care and developers outreach. “The retrenchment is underway and with the shift in the organisation structure, managers whose roles will be found duplicating may have to be replaced,” said Oyolla. 10,500 jobs have been shed in a move that is part of Nokia’s global plan to reverse its falling market-share as rivals Samsung, Apple, ZTE and Huawei become increasingly aggressive. “I can confirm that I have also opted out as the general manager since the new structure is different and does not suit what I am looking for,” Oyolla announced at a press conference. He will stay in his position until the end of this month. visA PAnDers TO rWAnDA Visa Inc. is to create a new partnership with the Rwandan government in order to expand its business into the country. The collaboration between Rwanda’s central bank and a new office in Kigali will permit Visa to process transactions in Rwandan francs and also Botha believes that the first users of the ser“Now small companies can cater to their


soft SA’s marketing and operations director. vice are likely to be SME’s, providing them with a considerable boost as they gain access to software used by much larger enterprises. technology needs without big infrastructure investments, and get access to several technology tools they didn’t have before,” she explains. Customers involved in the trial can subscribe and continue using the accounts they have set up with the service when it becomes commercially available next year. nOkiA knOck-OuT Six managers in the Nairobi Nokia office are to be replaced as the regional hub moves to South Africa. Kenneth Oyolla—regional manager for Nokia’s East and Southern region—said that several heads of department are expected to lose their jobs which will now be handled from Johannesburg. Nokia had eight departments in Nairobi; the headquarters of Uganda, Tanzania, Zambia, Bo-

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to increase the number of ATMS and business that accept Visa cards in the country. The government is helping Visa to open its office, and Rwandan officials will be trained in financial management in order to handle payments precisely.

“We’re doing it in Rwanda in hope of being able to export whatever works to other Africa countries,” said Elizabeth Buse, Visa’s group president for the Asia-Pacific region, who also notes that many Rwandans do not currently have bank accounts.


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Visa already has offices in Kenya, South Africa and Nigeria, amongst partnerships with major hotels and tour operators in those regions. MasterCard Inc. also has offices in the African continent and Michael Miebach—president of MasterCard for the Middle East and Africa— said: “We see growth potential in these markets for many years.” greenPeAce gATecrAsH A group of climate change activists from various NGO’s descended upon the Global Business Day conference in Durban to name and shame those industries that are smothering progress on the campaign to combat climate change. Six apparently peaceful Greenpeace protestors were arrested as they attempted to hang a banner reading “Listen to the People, not the Polluters”, whilst other organisations produced life-size puppets demonstrative of corporations such as Shell, Koch Industries and Eskom. “Meeting in the shadow of the vital UN talks these dirty dozen companies should be ashamed of their role in undermining global talks to tackle climate change, to save lives, economies and habitat. Putting short-term private profit before public protection is morally repugnant,” said Kumi Naidoo, International Executive Director of Greenpeace International. “Our political leaders need to close the door on dirty corporations who could celebrate failure in Durban; they must listen to the people and not the polluters. Our children and their children deserve nothing less,” she added. The so called ‘dirty dozen’ companies consist of: Royal Dutch Shell, Shell Canada, Canadian Association of Petroleum, US Chamber of Commerce, ArcelorMittal, BusinessEurope, Koch Industries, BHP Billiton, BASF, International Chamber of Commerce, American Petroleum and Eskom. TAB

flying THe g

Innovative partnerships transport companies targ


green flAg

s plant trees of life as get carbon neutralising


BUSINESS • Plane talking: Flying the green flag

PrOMinenT cAMPAigners fOOD & Trees for Africa (FTFA) are teaming up with Airports Company South Africa (ACSA) to help visitors arriving in Durban, make their journey a carbon neutral. It’s all happening as the world gears up for surely one of the most important Conferences of the Parties (COP17)—the 17th annual meeting on climate change. Ironically, the environmental cost of flying in the accumulated delegates, rock stars, hangers-on and world leaders, has enraged many observers. The legacy of COP17, however, need not be an enormous carbon footprint. As South Africa’s longest standing climate action and environmentmonitoring enterprise, FTFA offers visitors an opportunity to leave a tree in Africa to help solve this dilemma. ACSA’s King Shaka International Airport in Durban celebrated one year on 1 May 2011. The airport is currently handling almost five million passengers annually and, with the current trend of increasing passenger numbers in the past few months, it is well and truly set as the gateway to Africa for COP17. Passengers arriving at King Shaka International Airport from around the world, will not only be able to calculate the carbon emissions generated from their flight, but also start offsetting as soon as they land. This can be done easily and efficiently by using the ‘My Tree in Africa’ carbon calculator—the

“The total carbon emissions produc a tree. This simple act of geologica straight from a visitor’s mobile pho

JANUARY 2012 • The African Business Journal


ced can be offset by buying al kindness can all be done one, as soon as they land.”


BUSINESS • Plane talking: Flying the green flag

first of its kind. This uses the global greenhouse gas reporting protocols, which aim to harmonize GHG accounting and reporting standards internationally, ensuring that different trading platforms and other climate related initiatives adopt consistent approaches to GHG accounting. The total carbon emissions produced can then be offset by buying a tree or, indeed, trees. What’s more, this simple act of geological kindness can all be done straight from a visitor’s mobile phone as soon as they land. International, or local visitors, wanting to commemorate their time in Durban can also go to from their most conveniently located computer to buy their tree. Each purchase comes with a certificate of the specific tree bought, which also serves as a reminder of their commitment. Perhaps leaving this on a mantelpiece will inspire another person to plant a tree. Before you know it, there’s a forest. Alternatively, by simply walking straight out of the International arrivals hall at King Shaka and heading for the ACSA FTFA stand, visitors can guarantee that their flight was a carbon neutral one. The friendly people at the FTFA stand will calculate individual carbon emissions as well as the number of trees needed to offset these emissions. Visitors can also make a pledge on FTFA’s

Climatree, a beautiful wire art baobab sponsored by Pick n Pay. By buying a leaf for the Climatree at only R10, individuals can make their own personal climate change pledge. Each leaf represents a commitment towards a lower carbon future. For every 10 leaves added a tree is planted for a disadvantaged community in a barren, dusty township, adjacent to the airport precinct. This gesture ensures that Africa’s landscape is being positively changed, while the appearance of trees will be a lasting symbol of mankind’s attention to the environment. The Airports Company of South Africa always strives to give back to the community, and this way it can help spread environmental awareness. ACSA staff will assist FTFA in the planting of the trees purchased during COP 17, in the form of a sponsored team-building event.

Steering group
Meanwhile, Avis Rent a Car continue to contribute to the sustainability drive and in its very own collaboration with FTFA, planted a hectare of bamboo plants at Blue Disa, south west of Johannesburg. Chief Executive of Avis, Wayne Duvenage says, “Our goal was to offset vehicle emissions from this year’s ‘Put Foot Rally’; an event that saw crews travel throughout Africa discovering the many loved, admired and respected destinations, and in

JANUARY 2012 • The African Business Journal


“While the outcome of CoP17 remains uncertain, these inspiring campaigns, to offset carbon admissions, show how the seed of an idea can flourish, changing lives forever”


BUSINESS • Plane talking: Flying the green flag

support of one of South Africa’s young and dynamic charities, `The Bobs for Good Foundation’. Avis has always believed that environmental responsibility is one of their top priorities to help make the world a little greener than it already is. With this in mind, Avis joined forces with FTFA in their Bamboo for Africa programme. Among some 1200 uses, bamboo also provides a high impact carbon restoration opportunity. The programme is being introduced to the community with plant-

ings at public schools and on open/tribal land. Blue Disa, for example, is a community based organisation on the outskirts of Lawley Township 25Km south west of Johannesburg. Reverend Kopano Mohapi is the CEO and runs a feeding scheme for 300 children on a daily basis and is entrenched in the local community development. It was allocated a derelict farm adjoining the community, which is being developed to become a hybrid food crop and energy plantation

JANUARY 2012 • The African Business Journal


FTFA founder, Jeunesse Park, who recently presented Al Gore’s 24 Hours of Reality, says, “Climate change and environmental issues need to enter the public domain so more people become aware of the role they can play in ensuring a sustainable future. Avis demonstrates that, when being green is a company policy, the impacts are powerfully felt. “We have made it part of our core mission to consciously make an effort in bettering our carbon footprint through initiatives such as this one,” he adds. While the outcome of COP17 remains uncertain, these inspiring campaigns, to offset carbon admissions, show how the seed of an idea can flourish, changing lives forever TAB

farm. The farm will produce food and sustainable solid and liquid fuels to the community. The sponsors, such as Avis, who support this community development, will in return get VCS credits to offset their carbon footprints. From the data collected it was calculated that 26 bamboo plants would need to be planted, but Avis chose to increase that number in order to fill a hectare of land, planting 231 bamboo plants in total.

keeP yOur eneM

TABJ sPOrTs rePOrT WiTH AnDreW Miskin, AkA Our MAn in cA

Conspiracy theories and Mayan calendars aside, 2012 in africa is what you make of it. Despite issues in europe—which would leave even Solomon scratching his medulla oblongata—and generally near-zero growth expected in the First World, africa, although enigmatic, is still looking like a good place to be; especially if you like sport.

Mies clOse




It’s sure to be Clos
What can we look forward to in 2012? One African swimmer has the weight of a nation on his broad shoulders and multiple golds are not just dreamt of, but expected. Chad Le Clos is in sublime form, returning to South Africa in November 2011 after a dominant performance in the recent FINA Short Course World Cup. Remarkably, the 19-year-old is seemingly taking it all in his stride. He won 35 medals in the seven events of the series—23 of them, of the most precious metal variety—and received the men’s swimmer of the series award. As mature and philosophical as young superstars are these days, London 2012 looms large, and the pressure will be cranked up to the proverbial ‘11’. By his own admission, sleeping giants like Michael Phelps (who competes in most of the same events as Chad) are likely to sneak ‘out of the woodwork’ and produce something special on the biggest stage. Chad is going to have to swim his socks off and even improve on his current form. At his tender age, he probably imagines that he can and will swim faster, but he won’t know how much faster until the fun and games begin.

cHAD le clOs

JANUARY 2012 • The African Business Journal





“For the Springboks vs england tests there will be a generous helping of good manners for starters, but the main course will take on militaristic proportions and the heavy artillery will be duly deployed. all is fair in love and war, after all”

JANUARY 2012 • The African Business Journal


Old wounds reopened
Another cracking highlight on the 2012 sporting calendar is the three test match tour that England make to South Africa in May/June. Rugby’s inventors returned from the World Cup with their reputation destroyed and a team spirit as brittle Mike Tindall’s wedding vows. As England attempt to repair some of the damage back in the Southern Hemisphere I am certain this going to be an old-fashioned ‘Anglo Boer War’. There will be a generous helping of good manners for starters, but the main course will take on militaristic proportions, and the heavy artillery will be deployed. All is fair in love and war, after all. The professional age may have lead to greater education and therefore less prejudice between nations, (with many South Africans plying their trade in France, Japan and indeed the UK), but you better believe that mature thoughts of tolerance and ‘forgetting the past’ would only be counter-productive when these two giants

of rugby line up to sing their respective national songs in Durban on 9 June, Johannesburg on 16 June and Port Elizabeth on 23 June. Who will be at the helm of both nations (both from a coaching and captaincy perspective) remains to be seen. To illustrate how traditional these two rivals are, I would be willing to put a large wager on neither country looking outside their homelands for such appointments. That said; England rugby and more so cricket, have been more than willing to include ex-South Africans in their squads. To have a small dig at the unquestionably proud English cricket team (now rated No. 1 in the world), where would they be without Strauss, Trott and Pietersen? Where would the triumphant English 7’s rugby team have been in Dubai in Early December 2011 without a certain Mat Turner? Do yourself a favour and research his background too! Let battle commence. TAB

AfricA’s OlyM


MPic HOPefuls

as the Games of the XXX olympiad edge ever closer, TaBJ takes a look at some of the athletes from the african continent that are looking to make their year one to remember.



kenenisA Bekele Ethiopia is a production house of long-distance running talent and has brought to the world stage some of the greatest athletes of all time, including the majestic Haile Gebrselassie. The country’s current double Olympic champion, Kenenisa Bekele, will no doubt be among the bookies’ favourites to retain both of his medals from four years ago in the men’s 5,000 metres and 10,000 metres. Considered by many to be one of the greatest distance runners of all time, Bekele will look to reprise his success of four years ago in London’s East End, despite being recently beaten by compatriot Ibrahim Jeilan in the men’s 10,000 metres at the World Championships in Daegu, South Korea. Having overcome a succession of injury problems in the past few years, Bekele will be hoping 2012 is the year he returns to dominating the world of long-distance running.

MAry keiTAny With a rich tradition in long- and middle-distance running, Kenya is once again plotting to bring home a handful of track and field gold medals from London. At the Beijing Games in 2008, the East African country won 14 medals, its best Olympic performance to date, and its athletes won a total of 17 medals at the 2011 World Championships in Daegu including seven gold. Leading Kenya’s charge for glory in 2012 is Mary Keitany who won the 2011 London Marathon.

JANUARY 2012 • The African Business Journal


cAsTer seMenyA South African track and field star has dominated the back pages in recent years having been subjected to well-documented gender tests by the IAAF. The former world champion 800 metres runner was forced to go through the very public ordeal to prove she did not hold an unfair competitive advantage over her opponents. At the 2009 World Championships she clocked a time of 1:55.45 in the final of the 800 metres to take the gold home to South Africa, before being withdrawn from international competition until July 2010 while the IAAF attempted, somewhat clumsily, to clear her to return to competition. This year’s World Championships in Daegu, South Korea, marked her return to the world stage, but she was unable to repeat her feat of two years earlier, having to settle for the silver medal in the 800 metres final. Nonetheless, Semenya will be keen to prove her doubters wrong in London and will be among the most hotly-tipped medal contenders.

In 2007 Keitany won silver at the IAAF World Road Running Championships and two years later became the World Half Marathon champion. Keitany holds the women’s half marathon world record and is also the first woman to run the distance in less than 66 minutes. Joining Keitany in London as a potential Kenyan medallist will be Boston marathon winner Geoffrey Mutai and the 3000m steeplechase runner Brimin Kipruto, who will be going for his third consecutive Olympic medal.



ZersenAy TADese Zersenay Tadese is a true superstar in the tiny Horn of Africa state of Eritrea. A hero in his homeland thanks to his status as the country’s only Olympic medallist, Zersenay has the unusual honour of having his wedding broadcast live on Eritrean television. A 10,000 metres bronze medallist at the 2004 Athens Games, four years later in Beijing he missed out on a medal after finishing fifth in the same event. He is expected, however, to return to the Olympics stage in 2012 and is widely tipped to return from London as a medallist. Zersenay has found most of his success in the half marathon distance, with three consecutive victories in the World Half Marathon Championships from 2007 to 2009. He broke the world record at the Lisbon Half Marathon in 2010 and has excelled in cross country running, collecting one gold, one silver, and two bronze medals from the last five IAAF World Cross Country Championships. At the 2011 World Championships he finished 4th in the 10,000 metres and will have high hopes of bringing home a second Olympic medal to his young country.

JANUARY 2012 • The African Business Journal


TirunesH DiBABA Ethiopia’s leading lady and the most successful long-distance runner in the history of the Oromo people will be among the most watched athletes at the London Games. The Beijing double gold medallist will no doubt be back for more in London, having followed up a 5,000 metres bronze at the 2004 Athens Games with gold in the same discipline at the 2008 Games and gold in the 10,000 metres. Known in her native country as the “Baby Faced Destroyer” the fourtime world champion also has five world cross country titles to her name. Following her success in the last Olympic Games she was given the rank of Chief Superintendent by her club, the Prisons Police, for her services to both club and country.



OussAMA MellOuli Traditionally a nation of boxers and long-distance runners, Tunisia’s more recent success has come in the pool. At the Beijing Olympics, swimmer Oussama Mellouli became the first African male to win a gold medal in an individual swimming event. In September 2007 Mellouli was retroactively banned from competition for 18 months having failed a drug test in December 2006, but returned in style by winning the 1,500 metres freestyle event at the 2008 Olympics. The Tunisian will hope to top off a year of political and social upheaval in his home country by bringing back another gold medal from the London Games.

JANUARY 2012 • The African Business Journal


kirsTy cOvenTry Without doubt the sporting star of Zimbabwe (even ahead of moustached former Liverpool goalkeeping Bruce Grobbelaar) is seven-times swimming medallist Kirsty Coventry. Coventry won four medals at the last Olympics, including gold in the 200 metres backstroke — a feat she will be looking to repeat in Stratford’s brand new public swimming baths. Described by the head of the Zimbabwe Olympic Committee as the country’s “national treasure”, Coventry has won all but one of the Zimbabwe’s Olympic medals, with the only exception being the surprise gold won by the women’s national field hockey team in the 1980 Olympics in Moscow. TAB


Quick sHO cOnfusiOn


OT: cHAOs AnD n in cAirO

TaBJ checks in with British expatriate and teacher Gerald Point, in the volatile capital of egypt. It’s a time of great political and social turbulence—here’s his honest, strange and amusing assessment of life on a potential mine field


POLITICS • Quickshot: chaos and confusion in Cairo

WHAT THe Hell is gOing On in cAirO? From what I’ve seen and heard it is the unreasonable minority, who are making the most of recent turbulence, as an excuse to throw stones at the police. The reasonable Egyptians I’ve met are taking no part; stating that there is not a big enough reason to become violent or threaten the chance of holding an open election. WHen DiD iT kick Off? After an announcement by the military that they would hold the final say on the revised constitution, and any future military budgets. cOulD yOu feel Any HOsTiliTy leADing uP TO iT? It was hard to predict anything coming, because I can’t read Arabic, but there was a distinct change in atmosphere a few days before the major clashes. HOW HAs THis AffecTeD yOu? I have postponed my membership of a downtown spa resort due to the tear gas. This wasn’t a big problem as it was full of unsavoury characters anyway. WHAT MeAsures HAve yOu TAken TO ensure sAfeTy? The caretaker of my building has dusted off what he calls his ‘revolution weapons’, and there are a number of small arms dealers in the city doing brisk business. Personally, I carry a can of pepper spray at all times. A female colleague of mine was recently threatened at a demonstration and she maced four people, rendering them completely immobile.

“The reasonable egyptians I’ve me part; stating that there is not a big to become violent or threaten the holding an open election”

JANUARY 2012 • The African Business Journal


et are taking no g enough reason e chance of

DOes yOur WOrklife cOnTinue? I’m a man who likes to keep his word, even in a revolution—if the schools open, and the kids want to learn, I’m available (also for private study at only $50 an hour). Otherwise, it’s business as usual until the Ministry of Education say otherwise (or until they take a bribe).

WHAT DO yOu THink Will Be THe resulT Of THe PrOTesTs? It’s a bit hotch potch, but there’s some potential for harmony eventually. The Military cannot back down as the Police are on strike, and lawlessness would result. The protestors won’t back down, because they generally don’t have


POLITICS • Quickshot: chaos and confusion in Cairo

“The caretaker of my building has dusted off what he calls his ‘revolution weapons’, and there are a number of small arms dealers in the city doing brisk business. Personally, I carry a can of pepper spray at all times”

JANUARY 2012 • The African Business Journal


anything better to do. Non-nationals are hoping that the elections will distract the country and reduce violence. The worst case is that the Army become too aggressive, resulting in serious problems. WHAT OPiniOn HAve yOu fOrMeD ABOuT THe PeOPle Of cAirO? Egyptian people are kind, hot-headed and happy people, but it’s hard to ignore the religion-influenced chauvinism shown by most men. This is something that could very easily change, especially if the next democratically elected leader decides that radical changes are needed. DO yOu THink egyPT HAs A BrigHT fuTure? It all depends on the direction of Politics. The Muslim Brotherhood probably represent the majority of working Egyptians, 40 per cent of whom are illiterate. Other politicians have championed Turkey as a model choice for a Muslim state. I certainly won’t be signing a contract extension until some confirmation appears. WHAT HAs Been THe MOsT reWArDing PArT Of yOur JOurney? To be honest, beach trips on the weekend. Educationally, I like to think that I have made a positive difference to people’s lives. TAB

056 O



On THe Buses

uBigeOn BODy AnD cOAcH


TRANSPORT • Dubigeon

Bus and coach manufacturing has come a long way in the last ten years and Dubigeon has been passionately leading the way in modern design, style, innovation and performance.
Of All THe forms of public transport it is undoubtedly buses that are seared most into the public consciousness of communities throughout the world. We can all remember great conversations, strange incidents and raucous

laughter, shared on buses. Some of us can even remember shouting at a few—usually when we’ve just missed one. Yep, buses really have been part of everyone’s journey.

Favourite bus stop
Dubigeon Body and Coach is a bus manufacturing company with a fine tradition. It was established 60 years ago and is owned by the Larimar Group. A great deal has changed since the company started producing its vehicles in the 1950s, not

JANUARY 2012 • The African Business Journal


Providing Innovative Solutions
OE.Coach Supplies has risen to a position of national leadership in the distribution of quality parts for the bus and coach, off-road equipment, military and transportation industries. We supply first class technology and superior quality to you, our valued customer. Not only do our products meet and exceed local requirements, they also comply with some of the strictest international standards for vehicle and passenger safety. Tel : +27 (011) 499-1333 / 1444 / 1555, Fax : +27 (011) 499-1666

Consistently quality-oriented, with headquarters in Wuppertal we are rooted in the global markets - We are HAPPICH GmbH, the leading interior designers for commercial and special vehicles.

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least the buses and coaches. As the generations have passed the appearance, colours and sounds have evolved, but Dubigeon’s principals remain the same. Indeed, for the company’s meticulous, 200-strong workforce delivering people safely, reliably and in comfort, is still the top priority. The good folk on the Dubigeon production line are as passionate about building exceptional buses as their predecessors were, decades before. The employees are a vastly experienced and multi-skilled bunch. Craftsmen in its ranks include
Year after year we produce MEKRA long mirrors for more than 8 million vehicles such as trucks, buses, agricultural machinery and transporters.We are a "global player made in Germany" - fully focused on the commercial vehicle industry. OE COACH SUPPLIES ARE SOLE & EXCLUSIVE AGENTS & DISTRIBUTORS OF THE ABOVE MANUFACTURERS IN SOUTHERN AFRICA. An “ Ece” Compliant Manufacturer Of Automotive Lighting For The Bus, Coach, & Truck Body Builders. A Comprehensive Range Of Headlights, Rear Lights, Side Lights. & Front Lights Of Optimum Quality. Manufacturers Of Heating, Cooling, Forced Draft Ventilation & Airconditioning Elements for the small, medium & large builders of Ambulances, Buses, Coaches, Marine, Agricultural, & Construction Machinery Industries. A complete & varied range of user friendly products & accessories.


TRANSPORT • Dubigeon

bus body builders, spray painters, diesel mechanics, artisans, electricians, welders, technicians, quality controllers and machinists. Their combined skills have helped to create some of the best buses on the road today. The turnover of the Dubigeon factory ranges from R100 up to a whopping R354 million a year, depending on the work volume from customers. Although the factory particularly specialises in manufacturing bus bodies and building coaches, it also repairs old bodies, assembles chassis and produces auxiliary vehicles units such as mobile ticket offices, tow trucks and luggage trailers.

These measures include thorough roll-over protection and tilt tests. The roll-over and homologation process for the company are fully audited by the South African Bureau of Standards, while the tilt-test is fully examined by Gerotek. Dubigeon has also achieved one of the highest levels of local content production in the bus building industry, with most of the component manufacturing being generated on the premises. Divisional Director Allan Cox is in no doubt that the company’s continued high standards have been the key to its long-term success. “Dubigeon have a team that is dedicated to perform research and development activities for the company,” he explains. “That same passionate team is responsible for designing, testing and building prototypes of new buses.”

Getting there in one piece
Dubigeon Body and Coach’ bodies comply with strict South African and International manufacturing specifications, regulations and legislations.

JANUARY 2012 • The African Business Journal


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TRANSPORT • Dubigeon

Ticket to ride
The team also has the honour of representing the company at the industry governing association (SABOA), where safety and technical specifications of buses are developed. Meanwhile, Dubigeon has also established a mutually beneficial partnership with the University of Pretoria and Tshwane University of Technology. A number of students from these institutions complete their practical training at Dubigeon, where they are taught priceless skills in an environment of outstanding professionalism. There is certainly no better company in

South Africa to develop coach-building talent. In addition, the factory have also forged strong commercial relationships with leading bus manufacturing companies such as MAN, Daimler-Benz, Bus mark 2000 and Iveco. It’s fair to say that after six decades of driving the industry Dubigeon, will keep the motor running, well into the future. TAB WWW.DuBigeOn.cO.ZA

JANUARY 2012 • The African Business Journal


Tel No: (011) 892-4048/9 Fax: (011) 917 -4044 |

Manufacturers Of Quality Aluminium Sliding Windows To The Motor Trade

BeHinD THe WHeel:
95 per cent of raw materials and components used in the manufacture of the Dubigeon body are locally produced 100 per cent parts availability, due to local development and production of bodies Established accidents facility catering for an

We distribute throughout Southern Africa
• Our patented • We are BS EN “double rail” makes ISO 9001:2008 our windows leakproof compliant • Excellent after sales serivces

express repair service, capable of restoring the vehicles to their original condition Unique construction methods, making use of several sub-assemblies that allow simple accidents repairs to be carried out quickly Interior noise levels below 80DB Dust and water leak resistant facilities Proven track record of building buses designed for operating in arduous conditions for an excess of 1,000,000 kilometres Quick boarding and alighting of passengers due to extra wide passenger door Robust corrosion resistance structures

064 lOgicA


Al lOgisTics
With a modern and constantly-monitored fleet, transportation experts Massyn Vervoer is bringing its demanding customers from across South africa the service they require to operate their businesses effectively.


TRANSPORT • Massyn Vervoer

As One Of the nation’s leading transporters of construction material, Massyn Vervoer is playing an important role in keeping the South African construction running. From its offices and depot in Witbank, Mpumalanga, the company transports a broad range of materials, but has a core focus on construction material logistics. The company has a fleet of state-of-the-art, well-maintained vehicles supported by a 24/7 logistics department, which means it is able to

ensure that it always knows where its customer’s freight is. By ensuring it maintains a strong product and service delivery record, the company is heading towards its target of becoming a major player within South Africa’s transport industry, despite the economic difficulties all African companies are facing up to. “It’s not an easy industry at this time and it’s quite difficult as everybody thinks that once you’ve got a truck on the road you make a lot

JANUARY 2012 • The African Business Journal


of money, but that’s simply not the case at this stage,” says marketing director Bernard Massyn. “Another key issue we’re facing is in staffing,” he notes. “There are not as many good, adequate drivers available as there once was and also our customers are getting much more demanding than they perhaps were five or six years ago. “Customers are demanding faster delivery times and booking times are becoming ever tighter. “There’s no space for error or anything that can go wrong; whether it is road closures, breakdowns, or any kind of delay, there’s simply no space for delays,” he adds.

Fleet of fancy
With a modern fleet comprising more than 45 trucks, ranging from taut liners to tankers and flat decks to side tippers, the firm is able to offer a wide range of logistical solutions to its industrious clientele. “We cover the whole of South Africa and as a 24-hour operation we have a control room tracks all of our trucks and follows up and sorts out everything that goes along with the logistics of our operation,” remarks Massyn. The company moves all types of goods and materials across the country including a broad range of building supplies to fast moving goods and clothes.


TRANSPORT • Massyn Vervoer

“I would say 50 per cent of our carrying is building material, and that includes anything from timber and brick, to cement and tiles,” says Massyn. But despite its ability to provide a wide range of logistical solutions, problems for the company come from its ability to find quality staff. “Staffing is becoming more of a problem for our industry — especially when it comes to finding quality drivers,” says Massyn. “We conduct training with all our drivers once they start with the company and once every year they are re-evaluated by a drivers association, and therefore we do try to train the drivers and get to as high a level as possible.”

A family affair
The company was originally established as Lowveld Warehousing in 1984, before becoming SA Transit Services in 1985 during a period of operational expansion. At the turn of the millennium the company began to experience a greater demand for longdistance haulage, which lead to a further name change to the current company name Massyn Vervoer and a further expansion of its operations. Each department within the company is run by a different member of the Massyn family. “Like everybody else, we do have our family squabbles once in a while, but working with close relations works really well because everybody knows what everyone else is doing,” he remarks. Massyn Vervoer close-nit managerial team works to ensure a combination of well-maintained vehicles, on-time deliveries and constant communication with its customer, is setting it apart from its competition.

JANUARY 2012 • The African Business Journal


“We speak to our customers almost 24-7 and we speak to our customers about anything they need to know,” remarks Massyn. Since the time of the final name change the company has shifted its focus towards long-haul projects, sending bigger and faster vehicles on to the roads of South Africa. Its drivers are handpicked and are given

periodic training and testing to ensure that they are up to date with new rules, regulations and vehicle technology. From its dedicated control room the company is able to monitor its fleet throughout the years. The control team monitors all of the company’s vehicles on the road through a


TRANSPORT • Massyn Vervoer

JANUARY 2012 • The African Business Journal


C-Track Surveillance system, which pinpoints the exact location and speed at which the vehicles are travelling. The controllers stay in constant contact with all of the firm’s drivers, providing them with GPS co-ordinates and ensuring the driver and the cargo they are carrying remain safe. All of Massyn Vervoer’s vehicles have been fitted with DriveCam camera systems, allowing its controllers a real time look into the cabin of its trucks and a driver view of the road.

and it’s worthwhile, we will do it, and that is not really an attitude we will shy away from.” A strong commitment to its clients and a willingness to go beyond basic customer service is helping Massyn Vervoer towards its target of becoming one of South Arica’s leading transportation names. TAB MAssynvervOer.cO.ZA

Flourishing flotilla
Massyn Vervoer is looking at expansion and is planning to add an additional five to 10 vehicles to its fleet. “It depends on what concepts are on their way in now, but at this stage we’re looking at adding an additional 10 vehicles for the New Year,” reveals Massyn. With more vehicles soon to enter service, things are looking up for the South African delivery specialists and with the company’s broad focus, Massyn believes the firm stands apart from its competitors. “I think there are a lot of guys that only focus on one specific type of transport such as bulk or flat-decks, but we are quite open-minded to everything,” he says. “If there’s a contract available





South africa is a changing landscape with incredible structures appearing everywhere you look. It’s a good time to be developing properties, which is why every single day lBC lenco love building for the future



nOTiceD AnyTHing DifferenT about where you live recently? Yep, it’s looking pretty smart isn’t it? South Africa is fast becoming the most highly modernised, industry leading, architecturally adventurous and transformational country on the planet. In fact Google probably have to change its maps for South Africa more than any other continent.

Born in the 80s
At the heart of this geographical revolution are the property development and construction companies operating in the region. It is now a sprawling and hugely competitive industry with great opportunities for innovation. Along with New Romanticism, leg warmers and very strange haircuts, LBC Lenco began its long and successful dalliance with the industry back in the seminal year of 1981. Th company remains one of very few to have witnessed every nuance South Africa’s emergence—from the political uncertainty of the early eighties—to the post-apartheid optimism of 1994; into the new century and beyond. It’s been a memorable journey through imagination, styles, partnerships and progress, and, along the way, LBC Lenco has laid every brick with as much care and attention as the first.

Room with a view
The company was founded by Len Spedding and started off completing small building projects, renovations and additions. He has gradually built the business into the significant and reputable

JANUARY 2012 • The African Business Journal


enterprise it is today, regularly increasing its capabilities and taking on bigger projects. After safely reaching its thirty-year anniversary the company can look back proudly on a diverse and brilliant portfolio of completed

assignments. Indeed, its distinctive finger print can be seen throughout the Gauteng region as well as across Durban and Mpumalanga. Some of its most impressive developments include Jackal Creek, Blue Lakes, Carlswald,



Ferngate, Woodbridge and La Bella Costa. These ambitious settlements involved hundreds of modern apartments and units, while proving immensely popular with buyers. With all its experience and market place acumen the company is able to fulfil several entry level contracts while also handling ventures worth between R50M and R150M—all finished to LBC Lenco’s uniquely high specifications. “The company specialises in turnkey develop-

ments and has built a vast amount of experience and expertise in residential, commercial and industrial projects,” explains Director, co-owner and another member of the Spedding dynasty, Russell. “Over the years we have predominantly been involved in residential developments, from entry level to up-market. Our mission is to continually improve on the quality of our product and overall performance, while maintaining our ethos of honesty and integrity.”

JANUARY 2012 • The African Business Journal


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Rolling with the punches
The economic downturn has required the Spedding crew to use all its knowledge of the industry to ensure long term safety and stability. Construction has become a cut throat environment in which fortune favours the brave, while many businesses have become victims of the recession. Fortuntely LBC Lenco has not been one of them. A fine back-catalogue, reliable workforce and a credit-crunch busting restructure have ensured survival.

Russell is convinced that the company’s approach to its work, along with solid foundations have been pivotal to its continuation. “When you choose Lenco, you get a vastly experienced professional company that is honest, trustworthy, reliable and dedicated to the cause,” he enthused. “We always try our best, go the extra mile and look after our clients. Our primary objective is customer satisfaction; we are not claim-orientated and try to keep extra costs to a bare minimum.”

JANUARY 2012 • The African Business Journal


Carpet Colour Centre cc

The company has always been about moving forward, building for the future and embracing change. Each and every one of its many ventures are testament to the company’s philosophy that pride comes before everything else, including profit. “It is always the most rewarding thing, on the completion of a project, when you can step back and admire your creation. This is what makes it

We specialise in wall to wall carpets, Laminate wood, original wood, vinyl sheeting and under carpet heating. No job to big or too small.
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all worthwhile,” reflects Russell. As the company moves into its forth decade of trading there are many projects to look forward, to while new horizons—such as the plan to expand into central Africa—beckon. For up and coming companies, LBC Lenco’s story is an inspirational one—a timely reminder that sometimes the good guys come out fighting. There’s certainly something to be said for cementing your status—especially in this game. TAB WWW.lBclencO.cO.ZA

At the moment the company has a workforce of 70 highly skilled, efficient and determined people, all aiming for the common goal of creating outstanding structures and adding to LBC Lenco’s impressive legacy of buildings.

Tech care
As the company has evolved—and the technological revolution has gathered pace—one of the biggest differences has been the business’s reliance on computers and data. The CCS estimating program and Buildsmart accounting software have been particularly useful in streamlining processes and guaranteeing that everything runs smoothly.

080 urBAn


n DurBAn
Property development and holdings company Misty Blue is developing a mixed-use retail, residential and commercial site, which is targeting buyers from all walks of life.



lOcATeD in One of Durban’s most sort-after property areas, construction on Urban Park has begun in earnest on a development aiming to entice buyers and tenants by establishing a new benchmark in modern living. The style-inspired development will offer buyers top-quality finishes and will look to take advantage of its close proximity to some of Umhlanga’s best restaurants and shopping facilities, as developer Misty Blue looks to follow up the success of its previous Durban development — The Square Boutique Hotel. The hotel and spa complex is situated in a prime position on Umhlanga Ridge, just a stone’s throw away from Gateway Theatre of Shopping and a 15 minute drive from the new King Shaka Interna-

tional Airport, and is fast becoming a local icon. As one of KwaZulu-Natal’s leading property developers, Misty Blue has established a track record of developing high-quality residential, commercial, and mixed-use office blocks and hotels. Along with The Square Boutique Hotel, its extensive portfolio includes the Grand Floridian, situated on the top of La Lucia Ridge, Aldrovande Palace within Durban’s Gateway development, and the New Town precinct. In delivering Durban’s Urban Park development, Misty Blue is working with the dynamic and ambitious interior designs firm Union 3 and architects PGA Architects, whose extensive portfolio includes Il Pallazzo, Platinum Towers and the ICC Durban Hotel.

JANUARY 2012 • The African Business Journal


Marketed as an exciting new investment that offers a modern lifestyle for buyers, the mixed-use development of Urban Park offers value-for-money property for a range of investors, first-time buyers and end users. Urban Park is located at the entrance of Umhlanga Ridge Boulevard opposite a Porsche showroom and is protected by 24-hour security with CCTV surveillance. It is situated close to Durban’s Gateway Theatre of Shopping, the city’s leading retail centre, and a Virgin Active Gym is within walking distance. For those who enjoy fine foods or a glass of vino there is a broad selection of nearby restaurants and nightlife venues, as well as a selection of conveniences closer to home.

Residents have access to an onsite indoor swimming pool, gym, coffee shop, health bar, a hair and beauty salon and a laundromat. The site also offers residents with conveniently-located parking spaces on the same level as their apartments and park-like gardens and an eco-friendly inner courtyard. Urban Park has easy access to the N2 and M4 travel routes, while direct access to the N2 motorway looks likely to be enhanced by the introduction of a new off-ramp which will provide convenient access to and from the site. Each unit within Urban Park comes with the option of being fully furnished through a turn-key interiors package provided by Union 3, allowing each buyer the opportunity to let their



JANUARY 2012 • The African Business Journal


unit to potential holiday makers or longer-term corporate clients. The rental pool will be arranged and managed by a third party who will be able to assist in the advertising and client liaison process. Residential apartments come with quality porcelain tiles and external aluminium doors and windows, as well as fully-fitted kitchens complete with granite tops, built-in cupboards, sanitary ware, and an oven, hob and extractor. Each apartment comes with a range of communication incentives, including permanent prepaid broadband internet access, a full intercom system that allows free calls between

security and residents, reduced external call rates via a pre-paid system, and cabled and ready-for-DSTV connections. With its bold and innovative design, Urban Park is bringing to the market a product for both end users and investors that rivals some of the most sought after mixed-use developments in South Africa. TAB


MINING • African Minerals

irOn MAiDen

Tonkolili mine opens for b as african Minerals ltd. m impression on the mining

JANUARY 2012 • The African Business Journal



business, make a big landscape



MINING • African Minerals

Just 14 months from receiving all mining licences and environmental permits for its 12.8 billion tonne Tonkolili iron ore project in Sierra leone, london listed african Minerals ltd. (lon: aMI) (“aMl”) has made its first 40,000 tonne trial shipment to China. This constitutes the first iron ore shipment from Sierra leone for more than three decades and aMl expects to soon become West africa’s largest iron ore exporter.

JANUARY 2012 • The African Business Journal



MINING • African Minerals



JANUARY 2012 • The African Business Journal


Mirabaud today is an internationally active group providing financial services geared to clients who seek personalised relationships, high-quality services and maximum performance. The group has its roots in one of Switzerland’s oldest banking establishments. Mirabaud & Cie, banquiers privés, was founded in Geneva in 1819. Having taken on international dimensions, Mirabaud now operates on four continents, providing its international client base with customised financial and advisory services in three core areas : Private Banking (portfolio management, investment advisory services and services for independent fund managers), Asset Management (institutional management, fund management and distribution) and Intermediation (brokerage services, corporate finance and debt capital management). A fast-growing independent firm, Mirabaud has tripled its assets under management in the span of ten years to CHF 22 billion as of November 2011.

With nearly 600 employees, over half working internationally, Mirabaud has offices in Switzerland (Geneva, Basel and Zurich), Europe (London, Paris, Madrid, Barcelona and Luxembourg) and in the rest of the world (Montréal, Hong Kong, Dubai, Auckland and Perth). Mirabaud Securities LLP is a global institutional broking business providing research and strategy, execution, equity capital markets, corporate advisory and broking across 35 markets worldwide. Mirabaud Securities LLP has highly experienced sales and research teams focused on the energy and resources sector. The equity capital markets team structures and lead manages equity and equity linked transactions. Since 2006 Mirabaud has raised over US$ 8 billion for public and private companies in these sectors utilising its global distribution networks.


MINING • African Minerals

THe TriAl sHiPMenT utilised the integrated mine, rail and port infrastructure built by the company and will be tested by Shandong Iron and Steel Group CO. Ltd. (“Shandong”) prior to the closing of their US$1.5 billion investment in the Tonkolili by the year-end. AML’s corporate development and investor relations head Mike Jones says it is only “the end of the beginning” for this world-class project. “When we embarked on the major construction stage of this project in late 2010, we said we’d be in production in Q4 2011, and here we are,” he affirms. “The Tonkolili mine itself is a wonderful long life asset that can support pretty much any level

of production you wish to throw at it and it’s going to be around for more than 60 years. Taking it to 20 million tonnes isn’t an issue, and as we go to Phase II and Phase III we’ll be looking at multiples of what that capacity is.” AML’s ability to fast-track the development of the mine and infrastructure promises to transform the Sierra Leonean mining industry and bring very significant benefits to the country. Subject to variables such as iron ore pricing, the ramp up of production and the timing of the development of Phase II, payments to the government by AML in taxes and royalties could total more than $1 billion dollars over the next few years.

JANUARY 2012 • The African Business Journal



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MINING • African Minerals

The road & rail ahead
While news of the first shipment was well received by the market, many investors are focussed on the growing scale of Phase I which has now been expanded to 20 million tonnes per annum. Production for 2012 has also been significantly increased to 15 million tonnes per annum from 12 million tonnes per annum. Mike Jones however stresses the importance of focusing on the work ahead at the Tonkolili mine and its 200 kilometres of associated rail and port infrastructure, rather than dwelling on recent successes. “The current capacity of the infrastructure and mine as a holistic process is 16.2 million tonnes.

That is predicated on a certain production capacity at the mine, a certain export capacity at the port and the various transport arrangements,” he explains. “We are building mining capacity to 20 million tonnes and through the course of 2012 we’d expect to produce 15 million tonnes, and export that amount through the current configuration of the existing infrastructure.” Final port and rail commissioning will take place by the end of the year. The route is covered by a 99-year exclusive license signed with the government of Sierra Leone in 2009 which includes the transport corridor, the Pepel port and planned Phase II port which will be built at Tagrin

JANUARY 2012 • The African Business Journal



MINING • African Minerals

Point. The port facilities, which include stockyards with a one million tonne capacity, are already capable of supporting exports of up to 20 million tonnes a year subject to minor infrastructure modifications. Regarding the rail, Jones says, AML has various options to consider in devising the ideal setup for that 20 million tonne annual target. “At the moment we’re in the process of final commissioning of the rail,” he explains. “It’s open from mine to port and is taking traffic, but post-commissioning you still need to finalise such things as the rail alignments and ballasting, in a process called de-stressing, and do additional works where necessary; akin to

moving into a house with the decorators still in.” Decisions on expanding the rail capacity to accommodate the 20 million tonnes per annum production level will be made shortly and funded through a mix of vendor financing, for equipment including locos and wagons, and internal cashflow.

Taking Tonkolili to the top
Since discovering the project in 2008, AML has been (and remains) fully focused on developing Tonkolili as a major iron ore mine. The company has progressively increased the size of the deposit from 4.7 billion tonnes in early 2009, to 5.1 billion tonnes and up to 12.8 billion tonnes in

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JANUARY 2012 • The African Business Journal


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MINING • African Minerals

Dawnus International Ltd are proud to be working with African Minerals Ltd in Sierra Leone. Dawnus are currently working on: • Refurbishment of 77km of existing railway and over 85km of new rail. • Quarrying operations at Rofanye Quarry, Port Loko District, and Markarie Quarry, Makeni District • Earthwork and civil elements for the iron ore stockyard and ship loading facility at Pepel • Infrastructure and building works at Tonkolili Iron Mine All works are being carried out in line with a strict environmental and social management plan. Dawnus currently employ over 1,200 Sierra Leone nationals on these projects. For further information, please contact

New process water weir – Tonkolili

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2010. Innovatively, AML fast tracked the development of the project by raising capital and beginning construction ahead of the final resource estimate. This enabled the team to bring the project into production as soon as possible in order to benefit from the high iron ore price. “Other companies might have waited until they got a resource and possibly a reserve on it before doing the financing and construction. We did it the other way round; that’s one of the reasons why we have managed to build this integrated mine, rail and port in such a short period of time,” Jones explains. But fast doesn’t mean finished when it comes

JANUARY 2012 • The African Business Journal



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to developing this world-class asset to its full potential. With commissioning of a wet process facility due to take place in the first quarter of 2012 to lift production to 15 million tonnes per annum and ramping up to full capacity in the second quarter, work is under way to increase capacity to 20 million tonnes per annum. The company has now begun the construction of an additional five million tonne per annum expansion for the production of an AI32 (‘All-In 32’) hematite product to be commissioned in Q4 2011. “The wet process facility is a major plant with 15 million tonnes per year head-feed,” Jones says. “It creates very closely screened lump and

100 MINING • African Minerals


JANUARY 2012 • The African Business Journal 101



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fine product, and has high pressure washes incorporated into the system essentially giving you a cleaner and, incongruously, drier product. “There’s a possibility of slightly improving the quality of the iron ore and that’s something we’re checking out now.” The AI32 haematite product, he says, presents a low cost capital exercise with very meaningful revenues. Would-be buyers are those with their own screening facilities and it looks to be an attractive option for many. “For us Tonkolili has always been about just getting in and getting on with it,” Jones says. The same applies to securing the financial

backing for future development. Whether raising more than $1 billion dollars by December last year, completing the $90 million Standard Bank vendor financing, and the $100m subordinated standby facility announced on the commencement of shipment, or moving swiftly towards closing on Shandong’s $1.5 billion planned investment, AML’s track record in rapid project execution is growing.

A gem for the country & company
With additional production capacity, AML remains well on course to reach 15 million tonnes per annum export targeted for the year ahead. Expanding its current infrastructure capacity of

102 MINING • African Minerals



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16.2 million tonnes per annum will necessitate some further construction works during 2012, and achieving that all-important Phase I target of 20 million tonnes per annum for 2013 will be a key deliverable, and pave the way for the future expansions into Phases II and III. “The key milestones in the coming months are the receipt of NDRC [National Development and Reform Commission] approval for the Shandong transaction, at the end of the year, and the flow of funds from that, the commissioning of the Phase One wet plant in Q1 next year, and the subsequent ramping up to full capacity. They’re all operationally based and we’re focused on

JANUARY 2012 • The African Business Journal 103

• African Minerals Ltd. has been active in Sierra Leone since 1996. • The company was admitted to London’s AIM listing upon the February 2005 raising of £20 million. • The Tonkolili magnetite resource


was discovered in 2008, after which more than $1.1 billion was raised between 2010 and early 2011 to fully fund its Phase I development of the project, which recently went


into production as planned in Q4 2011. • The additional five million tonnes per annum (mtpa) expansion for

making sure that they happen,” Jones states. “This is not the end of this project. It’s the end of the beginning.” It takes a team of highly skilled, experienced and motivated professionals to execute a project like Tonkolili as swiftly, comprehensively and in so controlled a manner as AML. Navigating development of the right resource tonnage, logistics and export scenario is, of course, a must for any mine. But in AML’s case, Tonkolili is an elephant with game-changing potential for both Sierra Leone and the company. TAB WWW.AfricAn-MinerAls.cOM

the production of a A132 hematite product was commissioned on track in Q4 2011. • In 2012, AML will commission a 15 million tonnes per annum wet process facility at Tonkolili during Q1, thereafter ramping up to full capacity in Q2. • “With a full year production from both the 15 mtpa wet plant and this additional 5mtpa AI32 plant, annual Phase 1 direct shipping ore production from 2013 and beyond is now scheduled to be 20 mtpa,” the company states.

104 MINING • Sahara Mining


JANUARY 2012 • The African Business Journal 105


THe sTeel DeAl
Sahara Mining introduces new mill in Mali

106 MINING • Sahara Mining

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news that Sahara Mining S.a. will mastermind a uS$300 million fully integrated steel mill at its high grade iron ore operations in Mali spells big news for the country and a kickstart to its future as a premier multicommodity mining destination

108 MINING • Sahara Mining

like neigHBOuring gOlD haven Ghana, Mali’s surge in yellow metal mining rages on. All manner of surveys have followed Thomson Reuters GFMS and earmarked the country as Africa’s third largest gold producing nation, but in doing so reports also note that there is a wealth of other underexplored resources ripe for extraction, including base metal market darling, iron ore. The story of Sahara Mining SA (“Sahara”)— the West Africa-focused iron ore explorer/ producer operating a high grade Malian haematite mine—encapsulates Mali’s bright future in multi-commodity markets. In September, the company announced that it will imminently build

a US$300 million fully integrated steel mill: The first of its kind for the region offering 300 million tons per annum capacity, a new-build 70 megawatt power plant, and generating around 5,000 jobs once operations commence by April, 2013. “We’re in the process of acquiring land, and as soon as it’s done—maybe next month—we’ll commence construction,” says Indian business entrepreneur Sandeep Garg, Sahara’s founder and CMD who also heads wholly owned subsidiary Sandeep Energy and Steel. “It’s a historic project for the West African region. Its success and sustained production will send a message to the entire world that this

JANUARY 2012 • The African Business Journal 109

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110 MINING • Sahara Mining


region is coming along very well and investors everywhere ought to watch it closely.” Praised by Malian Mines Minister Amadou Cisse, and on track to commence construction by the year-end, Sahara’s steel mill will offer massive proportions for the nation’s future mining industry. The company aims to become a major player in West African iron ore and promises to better the communities it enters along the way.

such as Gambia and Senegal. It didn’t take long for the group to spot the benefits behind obtaining their own mining licenses and gathering good tenements, which culminated in February, 2010, with Sahara picking up the mine license for its 2,107 square metre Tienfala iron ore project (now in operation) in the Koulikoro region, 20 kilometres north-north-east of the capital, Bamako. Tienfala is now home to Indian standard reserves of 92.13 million tons, haematite of 64 per cent (going up to 67 per cent) and good basis for steel making due to phosphorous, alumina and silica levels. “Of the total 2,107 square kilometre area, we

Blue sky in Mali
Starting life by sourcing scrap metal for Indian and Chinese markets, Sahara quickly established a firm foothold in Mali, along with other countries

JANUARY 2012 • The African Business Journal 111

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have done prospecting for around 10 per cent— 200 square kilometres—and on that we’re basing our reserves estimate. From that we have also completed an aeromagnetic survey which was done by a South African company. The results are incoming and we hope that they will go beyond one billion tons,” Garg explains. “For this current year we’re producing around 50,000 tons per month, or 6.6 million tons per annum, and we plan to ramp that up to 500,000 tons per month in the next five years.” Figures from Tienfala continue to deliver good news for all concerned (the Government of Mali has a 20 per cent stake in Sahara). A long-

term, three-year stock mechanism contract with Chinese group, Continental Minerals (owned by Jinchuan Group Ltd) is in place. Australianheadquartered mining consultancy Runge has begun working on the JORC report for the project. Results from the aeromagnetic survey will soon be returned, and first construction work on the highly anticipated steel mill is mere weeks away.

Right company, right projects, right ethos
While the steel mill is, without doubt, a major and much-needed project for Mali, Sahara’s existing set-up at its Tienfala operations already

112 MINING • Sahara Mining

JANUARY 2012 • The African Business Journal 113

offers a well-positioned base for its construction. For example, the company owns an extensive truck fleet, used for transporting iron ore by road (a highway runs right along the mine’s entrance) and the return leg of the vehicle’s passage to port presents Sahara with ideal options for bringing in the necessary coal for the future plant. “We have a company from India named Predominant Engineers with whom we’ve signed a contract for the project,” Garg details.

Dogoro (50 kilometres south-west from Bamako) and its applications for copper and other iron ore ground, and it becomes clear that in this ambitious new producer, Mali has a real gem. “We’ll definitely be looking forward to adding mining properties to our portfolio,” Garg confirms. “The long-term goal is to export more than one million tonnes of iron ore per month.” Tienfala promises to deliver the resources, the markets continue to support overwhelming demand, and Sahara has the management team and country commitment to bring this vital project to completion. The steel mill, as Garg says, will be a historic project for the West African region. It will also prove a key step in Sahara’s quest to become a driving force in West African resources. TAB sAHArAMining.cOM

“They’ll provide the steel mill for us on a fully turnkey basis. They will then install and commission it, and run it for six months before handing it over to us.”
The planned power plant is also taken care of, and will consist of two 35 megawatt turbines from Japan, to generate the 60 megawatts of power required for the steel mill. “The surplus 10 megawatts power, we will sell,” Garg adds. “As ever, our top priority is the Government of Mali, and with this project we foresee very good impacts for the country. Lastly, in terms of employment which is also important, we’ll generate approximately 5,000 jobs.” Add in Sahara’s other Malian mining license,


THe Business

eire cOnTrAcTOrs


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116 MINING • eire Contractors

JANUARY 2012 • The African Business Journal 117

With an Irish heritage and in its role as one of Durban’s leading building contractors, eire Contractors has played a significant role in some of southern africa’s major construction and infrastructure projects.

118 MINING • eire Contractors


DurBAn-BAseD Drilling AnD blasting specialists Eire Contractors was established by current managing director John Moffatt in 1988. Starting with just three track rigs leased from Ingersol Rand, the company has grown to become one of KwaZulu-Natal’s most successful specialist firms, demonstrating its skills across a selection of Africa countries, including Sierra Leone, Zambia, Swaziland, Namibia, Botswana and Mozambique. “I was working for another company doing something similar and decided that I wanted to start out on my own,” says Moffett, who notes that at that time the markets were neither a

good nor a bad environment in which to build a business from scratch. The company has grown and today has 26 hydraulic rigs to its name having moved with the times and away from obsolete track rigs. The firm also has one of the largest plant holdings of hydraulic rigs across Southern Africa and is capable of handling both large bulk works as well as intricate jobs.

Irish at heart
Eire Contractor’s unique name is derived from Moffett’s Irish heritage. “My father came to South Africa from Ireland

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120 MINING • eire Contractors

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in the late 1940s, so when we were established the business we were kicking around for names, and we asked ourselves why not name it after Ireland?” he explains. With its fleet of lowbeds and explosive trucks, the company is currently working on two three-year projects north of the border in Botswana and Zambia, and was also the first South African firm to employ full-time surveyors to ensure quality control so to provide better customer service. Eire Contractors has worked on a range of projects since its inception in the late 1980s, which include construction projects such as Bedford Dam, Maguga Dam and Berg River, as well as a range of road and rail projects such as the construction of the N2 road. Alongside projects focused on erecting various structures and infrastructure projects, the firm has also destroyed a few too, with major demolition contracts coming in the form of a range of bridges and site-levelling projects. It has benefited from the recent resources boom and has been awarded a broad range of contracts for platinum, manganese, diamond, silica, coal and gold mines at locations across both Southern and Western Africa. “In the last 10 years we’ve really gone over the border in a big way,” remarks Moffett.

“Our most successful sector these days is mining and quarrying, as there is not as much construction work around. “Logistics are the biggest problem when you work abroad,” he notes. “Trying to get the right parts and equipment to the right place at the right time can prove difficult, as can getting people in and out, but the actual operations are very similar to what we do anywhere else. “We’ve actually bought a couple of trucks to run products or spares of items up into Zambia and, where we were previously relying on other road haulers, we’re now hauling it up ourselves, so we can try and determine the time a bit more accurately.” Despite working in tough conditions abroad, Eire Contractors has continuing to perform strongly in its home market of Durban where it is currently working at several quarries around the town.

Strong values
Eire Construction has a strong set of company values in place which it has published on its website. “We’re trying to carry on working for the people we are already working for, and if you haven’t got values in place then you’re not going to carry on getting the jobs,” says Moffett. “You also have to look after the people that are actually working for you.”

122 MINING • eire Contractors

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Moffett says that with the market tighter than usual it has remained fairly competitive with the firm finding it tough to do jobs at a price on which you can still make money on. “It is sometimes difficult, but you’ve still got to do the job the right way — environmentally and also in respect to how you work with people,” he remarks. “Even in those places where corruption or similar things rear their head, which you don’t want to get involved in, it can take a bit longer to try and sort it out in the proper way — but we always do.”

four or five retiree’s that have been with the company for 20-odd years; so there have been a lot of people that have stuck with us.” With loyal and enthusiastic staff on board, and a strong reputation in place, Eire Contractors looks likely to remain at the top of its trade for some years to come. “The next couple of years are going to be about consolidation, as I think the market’s going to be a bit rough, but we’ll still be growing and we will work to do what we do even better,” says Moffett. “Rather than purely going for growth, we need to make sure that we develop the business properly, so that is really what our target is.” With realistic targets in place, modern equipment in its fleets, a loyal customer base and talented staff, the future looks like it will be a blast for Eire Contractors. TAB

Staff loyalty
Eire Contractors employs 350 people across all markets in which it is operational, and has teams of mechanics to go around and fix faulty machinery and trucks. “We try to give our staff opportunities and try to let them do things on their own by guiding rather than dictating to them,” Moffett says of his own managing philosophy. “And most of our managers and operators are people we’ve trained up ourselves,” he adds. “But behind the company is a team of people, many of whom have been with us for a long time,” he notes. “We’ve been in business for 23 years and some of the guys have been with us that whole length of time, and we’ve even had

lendor &ZAMBiAn BrAnD Burton THe



126 MINING • lendor & Burton

as a leading name in Zambia’s construction industry, lendor & Burton has reinvented itself and is now bringing a wealth of local knowledge, skills and passion to internationally-funded projects across the Southern african republic.

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128 MINING • lendor & Burton

fAMily-OWneD cOnsTrucTiOn firM Lendor & Burton has committed itself to playing a leading role in the elevation of Zambian industry. Traditionally involved in plant and crane hire, earth moving, mobile crushing and mining and civil contracting, Lendor & Burton has more recently become associated with the Kapiri Group of companies, which focus on identifying new projects, prospecting new mining areas, mining and processing of minerals. While today it forms a major part of the wider Lendor Group of Companies, the history of Lendor & Burton dates back to the early 1950s, when the father of current managing director Mark Burton established firm. “My father started the company in around 1950 in Kenya when it was still known as East Africa,” says Burton. “He started off by developing estates and had moved into rail line construction in Uganda, Kenya and Tanzania by the mid-1950s. “We came to be in Zambia with the building of Kariba Dam on which my father was one of the contractors. He was actually sub-contracted by the main contractor and did a lot of the civils work and river dredging, and he ended up staying in the region.” The business would soon dip into road construction and civils projects in Zambia, Botswana, Congo and what was Southern Rhodesia during

a time when the only mining work the firm was involved in was over-burden removal in Zambia. “My father actually founded, financed and opened up Zambia’s coal deposits and did the same in South Africa as well in the 60s and right up to the mid-70s, before moving back north into the central Africa region,” says Burton. “So we have quite a history in central and southern Africa, and he was one of the bigger contractors of his time. “He was a construction pioneer and he was a tough old man who took on jobs that many contractors wouldn’t in his time,” he adds.

Tackling the challenge
Today, the company specialises in remote logistics and has all the equipment and the workforce necessary to take on challenging work in difficult condition.

“The staff we have are acquainted with working out in the bush, and basically aren’t afraid to sleep under a tree,” remarks Burton.
As Burton’s father built up his Zambian business the company was forced to overcome the economic problems of the day, while playing an integral role in the country’s economy.

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130 MINING • lendor & Burton

“There was a period where Zambia basically bottomed out and the president, Kenneth Kaunda, asked my father to enter agriculture in the early 1980s,” Burton notes. Lendor & Burton then diversified into the agricultural sector undertaking a lot of land development, land clearing and irrigation installation schemes. “There was a period of about 10 or 15 years where the company focused on agricultural development and then about four years ago, just

before my father passed away, with his permission I started up Lendor & Burton again,” says Burton. “It installed new faith into the company and we’ve been slowly building things up since that tough time, refocusing its remit back onto civil works.”

Bringing back a Zambian icon
Reestablishing the company during a time of global financial crisis was no easy feat, says Burton. “There was demand, but we started again at a time where the recession hit, so a lot of

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the work had vaporised,” he remarks. “But now, with the copper price is growing, there are a lot of opportunities which we’re at the forefront of in Zambia.” Burton says that one of the company’s key selling points is its “proudly Zambian” heritage, which has enabled it to get to the forefront of the country’s growing construction sector.

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“It is a Zambian company, and due to my father’s efforts, we are an established brand throughout the country,” he states.
With opportunities in Zambia currently strong in the mining sector, Lendor & Burton has been marketing itself as a major competitor to the many foreign construction companies entering the Zambian market. “We want to establish ourselves here as a company that’s brings integrity and, of course, one that delivers quality service,” notes Burton. “We’re slowly getting our feet on the ground and our foot in the door, so to speak, with some of the big names already established in the country.” Moving forward the company is planning to establish itself in Zambia’s North-Western Province where First Quantum and Barrick Gold are operating.
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132 MINING • lendor & Burton

“There are massive developments happening there at the moment and we’re going to get our teeth into work in that region,” remarks Burton. “We’ve also tendered for work around Lusaka, but our focus for the future will be the North-Western Province, where we will target private sector work, predominantly in the mining industry.”

away from contracting and towards plant hire, it has recently been approved the finance required to recapitalise its fleet. “The tide has turned and we are now gearing ourselves up again for taking on contractual work,” says Burton. “We’ve been approved some finance so we’ve recently acquired a new fleet of equipment and will be able to offer high availability and tender for bigger jobs.” “A lot of our competition comes from South Africa, and they are often more established and have much greater capacity, so it can be tough,”

Promoting domestic abilities
Lendor & Burton has maintained a forward looking stance and, in spite of the tough market conditions of the past few years leading the firm

JANUARY 2012 • The African Business Journal 133

he notes. “But what sets us apart from them is that we’re a Zambian company and we’re trying to establish ourselves on an international level in terms of the quality of our work.” The firm currently employs 85 members of staff, ranging from semi-skilled to skilled individuals, as well as four junior managers and one senior manager. Staying true to its roots, 80 per cent of the company’s management team derives from Zambia, with 100 per cent of the junior side of the business domestically sourced.

“Zambia has a bit of a shortage of skilled labour and skilled staff, so as we grow we will be forced to source externally, but we intend on trying to keep the company as Zambian as possible,” says Burton. With a strong track record and successful relationships with its previous employers in place, Lendor & Burton has been busy reinventing itself, as it once again becomes synonymous with the advancement of Zambian economy. TAB lenDOrBurTOn.cOM

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anese Mining

136 MINING • Tshipi Manganese Mining

The exploration and planning stages for any up and coming mining operation is an exciting time. When those early efforts start to pay dividends it makes those tricky decisions, investments and ventures worthwhile, as Tshipi Manganese Mining is just beginning to discover.

JANUARY 2012 • The African Business Journal 137

138 MINING • Tshipi Manganese Mining

TO THe unTrAineD eye ‘Tshipi’ looks like a fairly obscure name, but for those with a penchant for local Tswana dialect, it’s a title that makes the company’s intentions very clear. ‘Beautiful steel’ by name, ‘beautiful steel’ by nature, you might say.

nous and experience, Tshipi was created in 2007, after the amalgamation of two major investment branches. With a wide range of skills and ideas the team has begun to galvanise its mutual desire to source quality manganese, while passionately putting this extraordinary metal back on the map. Currently it has two ventures—one prospecting tenement, which is located in the north part of the Kalahari manganese field, and the Borwa mine, which is in the southern part of the base.

The seed of an idea
In 2003 legislation was eased and it was again possible to start venturing into manganese production. With a combination of enthusiastic financiers and a workforce with a wealth of mining

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140 MINING • Tshipi Manganese Mining

The development stage is well under way and Director Finn Behnken has been very encouraged by the company’s steady progress: “We commenced the project by developing the mines, while the Tshipi board began putting the mining permit into production,” he says. “We appointed a project manager for the team and approved the capital expenditure for the development of the mine, which is now in the stages of being constructed as an open pit mine.” The company is wisely taking a strategic approach in order to understand the geological sequences, while cautiously removing concrete, with a view to eventually mining off the rich supply of manganese ore.

“Once we have built our crushing and screening plant, we will then be able to load material onto the railway loop, which we’re halfway through constructing and, at some point in the next 18 months, the Tshipi Borwa will be brought into production,” explains Behnken. Even when the economic meltdown came along 2008 the company refused to blink and has remained completely focussed on its vision to become a solvent and reliable manganese supplier.

Welcoming the machines
The main contract was signed recently and the mining contractor has already moved in with all manner of brutal yellow equipment arriving at

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142 MINING • Tshipi Manganese Mining

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the site. Thanks to the detailed planning when the company began, progress has been rapid and the site is being transformed on a daily basis. Alongside the cutting edge railway facility— which will form such a vital transport link to other areas—there will also be a rapid loading terminal. Once these structures have been completed the company will host a smooth, efficient and, above all, modern mining operation, which could easily be performing for several decades. It’s safe to say the company feels it’s on the right tracks. Already Tshipi has established some other great partnerships, which will develop well into the future. Posco Mining has secured the rights to acquire up to 20 per cent of Tshipi’s overall production and OM Holdings has the right to market a portion of the manganese ore. Meanwhile the remainder of the ore, which is not accounted for, is subject to finalisation, and there are sure to be many interested parties. These early deals have shown that a bit of commitment, adventurousness and risk can be very worthwhile, and Behnken is delighted that the early potential of the company is coming nicely to fruition. “We’re very excited and our project’s is running completely according to plan, and we’ve got a lot of activity on site,” he says. “It’s been a fascinating journey and there will be more incredible

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milestones as the project develops and we start to build Tshipi’s reputation.”

sons we come to work is to solve them; working together to create the best possible operation,” he said. “The teams are working really well and the input of these individuals is vital as we head towards the production phases.” For Tshipi the last few years have been about laying foundations, strategically placing stepping stones, forming partnerships and getting a foothold, now it’s looking forward to adding some steel and lots of it. Indeed, sometimes being the new kid on the block, really does allow you to shine. TAB WWW.TsHiPi.cO.ZA

People power
The company currently has 124 employees; although once the construction projects have been completed a further 375 jobs will be created, with the possibility of more over the next few years. Makgosi Nkoana, the company’s onsite general manager has been happy with the camaraderie between the Tshipi’s team, especially at a time when co-operation is so vital. “At the start of any mining operation there are always some challenges, but one of the rea-

creATing THe rig envirOnM



gHT MenT

Providing its services to a wide selection of resource players across and beyond the african continent is no mean feat, but is a challenge South african consultancy firm Digby Wells environmental is tackling with aplomb.

146 MINING • Digby Wells

sOuTH AfricAn-BAseD cOnsulTAnTs Digby Wells Environmental came into existence in the early 1990s, during a time when the mining sector and a plethora of other industries were adapting to changing economic and social conditions. Today, its international expertise in delivering environmental and social solutions for its clients from the mineral resources and mining industry, has led to it becoming one of the country’s most sort-after specialist consultancies. Despite having its eyes focused primarily on the African market, Digby Wells has extensive experience from counties in markets as diverse as the Americas, Europe, the CIS countries and Asia.

“We’ve got 150 active projects at any one point in time, which you can broadly categorise into two groups,” explains director Andries Wilke. “The first covers our domestic clients who account for roughly half our turnover, and the other is for international clients. “If you look at our competition in South Africa, and probably in West Africa as well, we are one of the few companies that specialises in mining. “Being a purely environmental company gives us a different approach to the studies we do and the approached we take with that, and we believe that’s a competitive advantage as well,” he remarks.

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Formed from a giant
The firm was established when a number of large South African mining companies were unbundled. “In the early 1990s, Rand Mines was one of the three largest mining houses in the world, but when it was unbundled its environmental department had an option either to go with one of the divisions that were being sold off to various parties, merged into another engineering companies, or go out on its own,” Wilke explains. “Digby Wells was then formed by former department employees and as it came out of the mining industry it was natural that its first clientele was predominantly mining companies.” The company grew slowly in the early stages, but in the past five years has grown much more quickly. “We’ve expanded from a workforce of about 12 people 10 years ago to about 80 staff members currently and the reason for this expansion has mainly been the due to the fact we service our clients with the specialist capabilities required for inter-growth environmental and social studies,” says Wilke. In the domestic market the firm’s main focus is on coal, but it also works on a range of other commodities such as phosphate. “We actively pursue certain clients, but the bulk of our current new clients coming in are

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148 MINING • Digby Wells

coming either through referrals, or through our key clients or key contacts we have from previous companies who recommend us for work with those clients as such,” Wilke notes.

continents, although we haven’t done any active work in Australia yet, nor Antarctica.” Back on its home continent Digby Wells has worked extensively in West Africa’s gold mining sector. “We also work on other commodity projects across Africa and are currently active in iron ore in Guinea and Nigeria, as well as diamond work in Sierra Leone and gold in the Ivory Coast,” notes Wilke. The firm is building a presence in Mali and has entered into a joint venture partnership in Senegal, as it looks to expand further into Francophone West Africa.

Crossing the border
Outside of the African continent the company is currently involved with projects in Armenia and Kazakhstan and has recently carried out work on Chile’s copper fields. “Our company’s main focus is squarely on Africa, but if we get requests for work to be done in other parts of the world we’d definitely do that,” says Wilke. “We’ve actually covered most of the

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commodities, and its talented workforce spread across the African continent. “The company has grown a fair amount of experience organically, as clients require additional services or where we’ve expanded a team by appointing specialists with experience,” he notes. When compared to traditional consultancies in North America and Europe, Digby Wells has in place a relatively young, but energetic workforce, with the median age of employees at the firm 31. “We work hard to bring the right people in, and we do bring in a number of postgraduate TEL: 082 894 6237 |

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dents as interns, of whom a number stay with the company,” says Wilke. “Furthermore we recruit from our competitors when the opportunity arises and a number of our competitors in South Africa have had to reduce staff numbers, so we used that opportunity to actually pick up key experts in certain fields.” With a skilled, professional and energetic workforce in place at sites across Africa and beyond, and with broad commodity spread covered by its expert, it’s no surprise that this South African company is receiving enquiries from companies across the globe. TAB WWW.DigByWells.cOM

“It’s an important time in West Africa and we’re setting up offices in Ghana, which has already been registered and has started to function,” says Wilke. “We are first and foremost a specialist on the African continent and we’ve probably got a strong advantage there compared with our competitors, and we view ourselves as having an advantage in developing economies.”

A youthful approach
Despite the difficulties of working in a tough financial climate, Wilke says Digby Wells has found itself in a lucky position as it continues to grow thanks to its focus on a broad range of





ne like a star

ec TecHnOlOgies

152 MINING • roymec Technologies

JANUARY 2012 • The African Business Journal 153

When a busy mining operation embarks on a project, it needs to rely on a ‘go to’ company for support, equipment, expertise and advice. During the last decade roymec Technologies have been providing all the above, while also injecting its very own brand of flair and ambition.
suPPlying eQuiPMenT fOr the mining industry is a massive responsibility and one which Roymec Technologies takes very seriously. Its approach—to use all its experience, while also embracing technological advancements and new ideas—has helped to galvanise mining companies by improving efficiency, and transforming their overall performance.

Cutting edge
Roymec technology supplies and equipment was created 10 years ago by a group of individuals who joined forces from a similar background. All the founders had careers involved with equipment provision and engineering excellence within the mining sector. Together they provided a multi-skilled, diverse and experienced foundation for the new company. Since those halcyon days at the turn of the century the company has made a steady ascendency to the top of the profession. On the African continent the business has established a fine reputation, featuring prominently among some of the most notable mining ventures in the world, such as Skorpion Zinc, Kloof Gold and Kayelekera Uranium. The company is primarily a liquid/solid separation outfit and therefore takes on any project that requires the removal of solids from solution or slurries, while also carrying out some liquid removal systems.

154 MINING • roymec Technologies

Sales Director Hoosen Essack thinks the key to the company’s success has been the exceptional service delivery. “We pride ourselves on providing equipment that works harder, faster and smarter,” he explains. “The company has seen a great push towards getting processes and machinery to be more effective, and robust enough for very remote sites—Africa is not a continent for the feint-hearted!” As well as operating in global mining, the company also has many interests in the mineral processing, metallurgical, chemical processing, water & effluent treatment, pulp & paper, hydrocarbon processing and other industries. “We produce bespoke equipment that can

Well-oiled machine
Every piece of Roymec’s kit is custom-built and extremely detailed in accordance with each client’s requirements. All the equipment is meticulously engineered and designed to fit and operate within specific plants. The 27 guys at the offices in Johannesburg have created devices for all manner of operations over the years and the team’s precise approach has been rewarded with a very high among its competitors. Indeed, before constructing the gear, all possible considerations—like transportation, materials being handled and region-specific conditions—are subject to analysis.

be moved around on the continent, getting it to work with the minimum amount of stress, on a site where clients don’t necessarily have highly skilled labour and need to let the machinery take over,” enthuses Hoosen. Commendably, Roymec builds most of its wares in South Africa, where skilled units tackle projects in the Johannesburg area, before carefully testing the testing the equipment and bringing it to the site. When equipment arrives at the site all the gadgets are then retested in their working environment. Once onsite and fully operational it is literally a case of ‘plug and play’ (or ‘plug and work’, as the case maybe!). The company are then able

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There has even been a recent visit to Russia as the company strives to extend its international interests. “We are really enthusiastic about extending into different areas of the world and extending our equipment and knowledge into those areas. It’s a very active and exciting time to be at the company,” adds Hoosen. During the last decade the business has grown into a 180 million rand enterprise, and new growth in the market is going to increase that even further. Part of that growth involves retaining existing while also encouraging the development and optimising of the equipment. The company employs a large number of Phdto monitor how well the equipment is performing and offer sound advice along the way. qualified graduates, all keen to make their mark and take the company into an exciting future. Additionally, for several years now Roymec has enthusiastically implemented a Black Economic Empowerment Policy to promote entrepreneurial communities and give emerging businesses access to mainstream business opportunities. As an ambitious company with the right people at the rock face, Roymec has really shown the mining industry that it means business. Over the years ahead, it looks forward to a whole world of opportunities—quite literally. WWW.rOyTecsA.cOM

Rock and roll
Roymec supplies equipment to 13 different countries throughout Africa and are always looking at other countries to help in the future. Recently the company has been delighted to announce the sale of 15 per cent of its shares to Tamela, resulting in some fascinating opportunities to grow alliances in the far east, including Asia, Malaysia and Indonesia. Advanced discussions have also taken place with potential partners across South America in Peru, Chile and Argentina.

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