Benga, Tete coal blocks to resume operations - Mozambique Mining ...
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VOLUME 5: ISSUE 4 MZN 125/US$5.30 JANUARY/FEBRUARY/MARCH 2017 Benga, Tete coal blocks to resume operations Precious rock – a Tete Province, Mozam- Precious and ornamental glimmering light for bique, will have steel works stones in the limelight in Mozambique mining? by 2020 Mozambique and Angola 4 11 15
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VOLUME 4: ISSUE 1 MZN 125/US$5.30 JANUARY/FEBRUARY/MARCH 2016
Contents
EDITORIAL COMMENT
Mining should prop up the ailing economy : ...................................................................................... 4
NEWS BRIEFS
CBSteel to export Nacala’s coal : ............................................................................................................. 6
Inhambane oil wells to kickoff operation : ........................................................................................... 6
Largest mine opens in Canada’s Northwest Territories : ................................................................. 6
More gemstone for Montepuez : ............................................................................................................. 6
Mozambique improves Vali Group’s performance : ...................................................................... 6
Mustang acquires 65% in Alpha ruby deposit : ...................................................................... 6
GENERAL NEWS
Concargo continue to expand footprint across the continent : ................................................. 7
ENI put up for sale stake in Rovuma basin : ...................................................................... 9
High-grade graphite discovery at Mustang’s Caula project : ................................................. 10
Mustang lead export gem-quality rubies discoveries : ................................................. 11
Atlas Copco chairperson Hans Stråberg : ........................................................................................... 12
Zest Energy light up Balama Mine : ........................................................................................... 13
COVER STORY
Benga, Tete coal blocks to resume operations : ....................................................................... 14
AFRICAN NEWS
Fresh optimism in mining sparks opportunities : ...................................................................... 16
Miners rip off governments in extractive industry deals : .................................................. 17
Scale up energy infrastructure development - AU : ....................................................................... 18
PUBLISHER ADDRESS
MTI Moçambique Limitada Maputo Office:
628 Julius Nyerere Avenue
Editor: Maputo, Mazambique
Andrew Maramwidze P.O Box 3236, Maputo
drewmara@gmail.com Tel: +258 84 119 4017 / +258 84 445 5339
Fax: +258 82 423 8542
Editorial Contributors:
More Love Mafu Tete Office:
Dakito Bias Talhao 4109
Mario Deus Matundo, Tete
Casimo Muhimua Tel: +258 84 119 4017/ +258 212 230 941
Fax: +258 212 227 698
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Domingos Langa
Brito Mamba GRAPHIC & PRODUCTION
Sergio Saidi Rekai Musari Mutisi
Gersholm Twazi rmusari@gmail.com
MOZAMBIQUE MINING JOURNAL - January/March 2017
EDITORIAL COMMENT
Editorial
Comment
Mining should prop up
the ailing economy
Andrew Maramwidze
With such an encouraging start to the year, the heavily pregnant with hope extractive should
help move the country’s economy from the murky waters and give birth meeting the nation’s
expectations.
L
ight of hope is on the horizon, prospects look promising for the ex- EIU says the economy will rise in 2017, after ending the year with the lowest
tractive industry, this year. value in the last 15 years, of just 3.6%.
Already the mining industry is celebrating an excellent start to the According to the EIU report coal production is tipped to be one of the
year 2017. The first quarter has already indicated several positives for the economic drivers due to rising international prices and robust demand
coal and gem-stone miners and stakeholders. from India.
News that India has directed the state company International Coal Ven- Analyst forecast indicate an average rate of 4.4% in 2017/2018 and 5.3%
tures Limited (ICVL) to resume the company’s mothballed overseas opera- in 2019/2021.
tions will not only breathe life into the shareholders’ pockets but ignite lots
of activities on the economy. However, the economy will still be far from the average of 7.3% that was
achieved in the period between 2005 and 2015.
The once suspended operations at Benga and Tete East coal block have
potential to help pull up the country’s economy, provide the much needed Moving away from coal, gem discoveries are also showing positive signs
employment opportunities. with potential to prop up the economy.
In addition, meet India’s demands for coking and thermal coal assets with With such an encouraging start to the year, the heavily pregnant mining
a target of securing at least 500-million tonnes of coal reserves overseas industry should help move the country’s economy from the murky waters
by 2020. and give birth, meeting the nation’s expectations.
Let the Benga and Tete east coal blocks be extensively exploited, to meet Remember fiscal plans are already bordering around the reduction in pub-
analysts forecast for a positive economy in 2017. lic spending, expected to fall by 16.4% in 2017, limiting the growth of the
construction and services sectors, historically supported by government
Economist Intelligence Unit (EIU) recently revealed that economic activities contracts.
are expected to spring to life.
4 www.mozambiqueminingjournal.com
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MOZAMBIQUE MINING JOURNAL - January/March 2017
NEWS BRIEFS
CBSteel to export Nacala’s coal operational efficiencies.
N
acala’s coal has found market in the Brazil steel industry. The Gemfields the developers said the mine produced 1.1-million carats of ruby
development comes after China Brasil Xinnenghuan International and corundum in the last quarter of 2016 compared with the 1.6-million
Investment (CBSteel) announced plans to build a coal plant in the carats in the prior comparable period in 2015, as lower-grade but higher-
in Nampula province. value material was processed.
The US$1.4 billion investment is to transform the mined coal into coking Meanwhile Gemfields Kagem Mine in Zambia had a production of emerald
coal for export to Brazil. and berly nearly halved to 4.7-million carats in the three months to
December 31, compared with the 8.2-million carats produced in the three
The construction of the Nacala plant financed by the Chinese government months to December 2015.
is a twelve months project, expected to annually export 4 million tonnes
of coal on completion. Ian Harebottle, Chief Executive Officer of Gemfield said the mine
experienced a mixed second-quarter with lower production volumes, as a
According to media reports, Mozambique government approved 92 result of the varied nature of the mineralisation at the deposit, which was
projects in the last five years that attracted approximately US$823 million offset to some extent by the efforts of the operating team on site.
in Chinese direct investment with the potential to create more than 14,000
jobs.
Mozambique improves Vali Group’s
Inhambane oil wells to kickoff performance
B
operation razilian blue-chip mining company Vale Group with operations in
S
Mozambique and Australian has improved its loss making operations.
asol intends to start extracting oil from Inhambane province in the
next 48 months. Vale Mozambique’s operations step up turned the group’s performance
from a loss of US$508 million in 2015 to a US$54 million loss in 2016.
Stephen Cornell, Sasol Executive Director said following the discovery of
hydrocarbons in two wells off the shore of Inhambane, after drilling four The subsidiary Vale Mozambique had an operating loss of US$105 million
prospecting wells, productions plans are in the pipeline. in 2016 during the fourth quarter, a figure which compares with a loss of
US$508 million in 2015.
With natural gas deposits in Pande, Temane and Inhambane, Sasol is
optimistic that Inhambane is going to have the first oil wells to become
According to the company the improvement compared to 2015 was due
operational.
mainly to the reduction of costs and expenses in the amount of US$344
Sasol began drilling the first well in May 2016 under the production-sharing million and an increase in prices, which increased the company’s turnover
agreement signed with the Mozambican government in Inhambane. by US$140 million.
Meanwhile American group Anadarko Petroleum and Italy’s ENI have also Vale’s Moatize coal located in the Tete province of Mozambique, hit a
discovered major oil deposits, several years ago in the Rovuma Basin. record of 5.5-million tons last year, 500 000 t (or 10.7%) higher than in 2015.
This comprised 3.5-million tons of metallurgical – or coking – coal and
two-million tons of thermal coal.
Largest mine opens in Canada’s
Northwest Territories Vale credited the increase to a number of operational improvements at
T
the Moatize Phase I site and the start of operations at Moatize Phase II.
he world’s largest new diamond mine in the last 13 years, Gahcho Kué
The group reports that the Moatize II ramp-up is going well and that its
has began commercial production.
production for 2016 amounted to 940 000 t.
Gahcho Kué a De Beers Group and Mountain Province Diamonds joint
venture is expected to produce approximately 54 million carats of rough
diamonds over its lifetime.
Mustang acquires 65% in Alpha ruby
“With Gahcho Kué achieving commercial production, it successfully builds deposit
R
on the transformation of De Beers in Canada,” said Kim Truter, Chief
Executive Officer of De Beers Canada. uby miner Mustang Resources has acquired a 65% interest in Alpha
ruby deposit that borders its existing Montepuez project.
The fly-in/fly-out remote mine site situated approximately 280km northeast
of Yellowknife in the Northwest Territories (NWT) of Canada comprise of Christiaan Jordaan, Mustang Managing Director said the acquisition of
three open pits and will employ 530 people full-time, with the majority the new licence was another important step in the company’s strategy to
working a two-week in/two-week out rotation.
become a leading global supplier of rubies.
De Beers and its partner are optimistic of the mine’s potential.
“We recently achieved our target of tripling the throughput rate on our
“Gahcho Kué is a rich diamond deposit that secures Canada’s position bulk sampling and we now beat it regularly.”
as one of the world’s leading diamond producers,” said Patrick Evans,
President and Chief Executive Officer of Mountain Province Diamonds. Mustang plans to immediately start a prospecting programme to
determine a preferred location to open a bulk sample pit, following the
completion of environmental permitting on the new mining licence,
More gemstone for Montepuez
In addition, start processing gravels from the priority areas identified,
M ontepuez Ruby Mine continues to deliver strong results, with
a significant increase in ore processed, as a result of improved
further enhancing the current bulk sampling programme and ruby sales
planned for this year.
6 www.mozambiqueminingjournal.com
MOZAMBIQUE MINING JOURNAL - January/March 2017
GENERAL NEWS
www.mozambiqueminingjournal.com 7
MOZAMBIQUE MINING JOURNAL - January/March 2017
AFRICA ROAD TRANSPORT
GENERAL NEWS
SPECIALISTS
Transport and logistics specialist, UK and then for The South African The highly experienced team has
Concargo, looks back on 30 successful Associated Newspaper (SAAN) Group, decades of experience: Greg Tighe,
years in supply chain and road freight the Cape Times Limited and Allied Projects Director has been with the
logistics. Publishing before working for a company for 28 years; COO, Dean Page
succession of distribution companies for 16; Director of National Transport
Meticulous planning, tailor-made including DHL, TNT Skypak and Ace Janine Conradie celebrates 23 years at
solutions, attention to detail, delivering on Express Logistics. Concargo while Loretta George, Accounts
time and within budget and keeping clients Manager, has being around for 17.
happy – that, in a nutshell, is Cape Town- 'The distribution business was an
based Concargo (Pty) Ltd's secret to invaluable grounding and where I gained 'Our management team is solid and has
beating the competition in the fast-paced, most of my experience and knowledge the experience to adapt to the new
highly-competitive freight forwarding and ahead of opening the doors of Concargo challenges presented by this ever-
logistics industry. back in 1987,' he explains. 'My analogy of changing industry,' says Kruyer.
the business is a shipping one. My wife,
This success story began back in January Beverley, is and has been the rudder in my 'Transport logistics in Africa is a vibrant
1987 when Concargo was founded, in life, Gregory Bathurst Tighe has been the and exciting industry to be part of. Our
Cape Town, by David and Beverley keel since day one, Janine Bernadette desire is to mentor a future generation by
Kruyer. Today – 30 years on Concargo is Conradie is the mast of this operation with showcasing transport logistics as a career
represented throughout Southern Africa. Dean Page the anchor. and are excited to have four logistics
graduates join us as interns this coming
The company offers an ever-expanding 'It has been a long and eventful journey, year.'
portfolio of supply chain solutions and navigating throughout the decades of
transport planning with customer services good and lean years, learning and Solutions driven
as its foundation, supported by strategic adapting our methodology along the way Successful delivery of cargo, no matter
partnerships and alliances. to find new solutions to logistic what the load, requires skilled staff to
challenges, but we've also had loads of manage the often complicated logistics.
'Our philosophy from day one was 'service fun.
above all else' and this has remained the Over the years Concargo has been
basis for all our relationships,' says David 'When I look back to our humble presented with some notable and rather
Kruyer, founder and MD. beginnings and where we are today, we unusual projects which have required
are clearly doing something right. I can intricate pre-planning and creative
'We are dedicated to preserving this only attribute our success and longevity in thinking to meet the brief, especially within
viewpoint as a constant in all our planning the industry to solid partnerships with tight time constraints.
and interactions with clients and suppliers. clients and service providers who have
Our challenge is to find solutions and loyally stood alongside us as we've These include:
implement them while exceeding grown.' · Managing the transport and logistics for
expectations.' big budget movies such as Racing
Stripes, Home Alone, Lord of War, Blood
'Our management team is solid and has
the experience to adapt to the new It takes teamwork Diamonds and more.
challenges presented by this Being successful in the freight forwarding · Co-ordinating and managing the
industry requires teamwork and synergy transport and logistics for BMW's
ever-changing industry,' David Kruyer - MD
of planning to ensure the smooth passage international media launch of its 650
of cargo. Concargo boasts a dedicated cabriolet series in Cape Town.
Reflections over the decades and skilled team, as well as strategic · High security transportation and
Kruyer says that starting his own business business partners, working together to escorting of Grade 12 examination papers
was a natural progression after spending ensure a seamless and co-ordinated from SA printers to the education
time in the distribution industry, initially solution - whether transporting within ministries in various Southern African
circulating newspapers to shops and South Africa or across borders into Africa. countries
street vendors for the Daily Mirror in the · Transportation of abnormal loads such
8 www.mozambiqueminingjournal.com
MOZAMBIQUE MINING JOURNAL - January/March 2017
as wind tower tubes, mining bucket wheel reclaimers, combine on a scheduled basis.
harvesters, 100 ton LP heaters for Medupi.
'Our Project Department, manned with highly qualified engineering
One of the most challenging projects took a total of three months specialists and experienced in all aspects of project transportation,
to complete, a month of planning and two months of assess the scope of work, survey the terrain, and quantify the end-
transportation. It involved relocating 45 loads of bucket wheel to-end solution to complete the project,' explains Kruyer.
reclaimers from Saldahna to Sishen South mine. Considered
abnormal out-of-gauge haulage and at 9m wide, the 'Over the years, the project division have conveyed project
transportation required special permission and escorts as it shipments including vast over- dimensional and heavy lifts, and
snaked its way up and over the steep Piekeniersberg Pass, in delivered on time and to the client's ultimate satisfaction. We foster
four hour intervals (to allow for other traffic to pass) as part of the partnerships with a wide range of asset owners, thereby providing
route. access to a great variety of vessels and rolling stock through our
strategic partnerships and alliances.
'This industry lends itself to new challenges on a daily basis and
one learns to adapt to the situation like a chameleon,' says Forward thinking
Janine Conradie. 'Some days are really trying and others 'The regulatory and business landscapes are changing
exhilarating, but in the end, always rewarding. Transport and dramatically and there is a transition within our industry with
supply chain logistics is not for the faint hearted. This industry disruptive innovation, drone logistics, (loT) Internet of Things,
teaches you the skills that can carry you through any situation Blockchain Technology and more,' says Kruyer.
life presents.
'We have had to learn to adapt and innovate as never before. But
'Besides all the interesting people I have met, I have also the need to keep pace with these changes has a cost, and how we
learned so much about this industry and many others too. address these challenges must, in the end, benefit our customer
'Taking the time to really understand a client's business is the and service providers. That's why collaboration amongst all
best way to assist them when developing their logistics solution. players in the global supply chain community has never been more
I have been fortunate to travel to Madrid to accept a transport important.'
award on behalf of Concargo, to Antwerp for a Heavy Lift
conference and to the Breakbulk Europe Expo. We have also 'Despite the many changes we are experiencing in terms of
participated as exhibitors at various expo's, such as SAPICS, stagnation in the mining industry, reduced activity in the offshore
The International Book Fair and at Breakbulk Africa.’ drilling sector, the delay in infrastructure development and the
unpredictable global economy we are confident of our future.
Three transport divisions, scalable business model
Concargo has three distinct transport divisions encompassing 'We have a succession plan in place and continue to innovate. We
all aspects and types of logistics solutions, namely: Road are currently developing improved technology with apps to make
Transport Short-haul and Long-haul and Express Distribution tracking and tracing of cargo easier.
throughout South Africa; Road Transport Cross/Over Border via
all Ports in SA, SADC and neighbouring countries in Sub- 'Our experience is invaluable in being able to handle complex
Saharan Africa; and Project Cargo Management, Abnormal logistics and we have proved that no problem is insurmountable.
Out-of-Gauge, Heavy Haulage and Mobile Crane and Rigging
Services, Relocation/Mobilisation Services. 'We have not made it to this milestone of 30 years by sitting back,
we are proactive and continue to adapt our business model to suit
According to Kruyer, service management - within the the business,' says Kruyer.
framework of distribution and logistics - is the name of the game
in providing reliable supply chain services from start to finish. ‘But we would not have made it this far without our clients and
'Our expedited trucking provides a daily door-to-door road partners and we thank them for their loyal support. We are
haulage service throughout South Africa, hauling general dry energised about the future and look forward to continuing to be the
cargo from one tonne up to thirty-six tonne loads to and from all 'go-to' company for transport and supply chain logistics in Africa.'
destinations as into all SADC, neighbouring and remote
countries in Sub-Saharan Africa.
'We have invested heavily in customer relationship Contact details:
management (CRM) systems to preserve our knowledge base Concargo (Pty) Limited, Cargo House Cape Town, 6 Tierberg
for the benefit of our customers while encouraging old school Road, Avondale, Cape Town
personalised service. Our business model is highly scalable Tel: +27 21 930 9160
due to its Owner Driver Hauliers and Sub-Contractor fleet base. http://www.concargo.com
'We can supply from 1 to 100 trucks, or more, at short notice,
especially when a ship docks and cargo needs to be discharged
www.mozambiqueminingjournal.com 9
MOZAMBIQUE MINING JOURNAL - January/March 2017
GENERAL NEWS
ENI put up for sale
stake in Rovuma basin
ENI is the operator of Area 4 with an indirect stake of 50% held through its
subsidiary Eni East Africa (EEA), which in turn owns 70% of Area 4.
I
talian multinational oil and gas company ENI has announced
intentions to sell its stake Area 4 block of the Rovuma basin.
Claudio Descalzi, ENI Chief Executive Officer said the sale of this
stake comes ahead of the announcement of the final decision on
investment in the Coral Sul field, the first zone of the Area 4 block to
come into operation.
Media reports suggest that US group ExxonMobil is the preferred
candidate for the offer, though EI could not confirm the rumour.
“ExxonMobil is already working in Mozambique and we have had
regular meetings as partners first in the fifth tender in which it has
fields in Angoche and the Sofala and Zambezi blocks and, second, in
relation to its entry in Area 4,” said Descalzi.
In October 2016, the national oil company ENH said the ExxonMobil
would partner ENI in exploring the country’s largenatural gas reserves
in the Rovuma block.
ENI is the operator of Area 4 with an indirect stake of 50% held through
its subsidiary Eni East Africa (EEA), which in turn owns 70% of Area 4.
The other partners are ENH, with a 10% share, Portuguese group Galp
Energia (10%), Kogas of South Korea (10%), and the China National
Petroleum Corporation (CNPC) has an indirect stake of 20% through
Eni East Africa.
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10 www.mozambiqueminingjournal.com
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13 March 2017 04:12:49 PMMOZAMBIQUE MINING JOURNAL - January/March 2017
GENERAL NEWS
Mustang lead export gem-
quality rubies discoveries
M
ustang Resources is set to export its second commercial parcel 80% of the offering by weight and 85% by market value (a total of 1 372
of gem-quality rubies from its Montepuez project. 145 ct had been offered for sale).
The company said 25 000 ct parcel sale is expected to The company’s first auction was held in June 2014 and the aggregate
significantly increase the sales revenue. revenues from all seven auctions totalled $225.7-million. All but the third
auction were held in Singapore. The third auction was held in Jaipur, India;
The parcel includes four 'special stones' of 5 ct or more and stems from it recorded the poorest results of all the auctions so far. The first, third, sixth
the outstanding results of the bulk sampling and prospecting programme and seventh auctions also included corundum, a by-product of the mining
at Montepuez. for rubies.
Earlier this year, Australia company Mustang Resources despatched its first
commercial parcel of the precious stones from its Montepuez Ruby Project.
According to the company the parcel contained 6 221 ct of rubies, of which
75 ct was accounted for by five “special stones”, including two rare 24 ct
rubies, “none of which require treatment”.
Mustang Resources has fully re-commissioned its plant after moving it
closer to water sources and to the property’s main ruby deposit, Alpha
deposit.
The company’s production is now being ramped up to a target of 525 t
of ore a day while monthly production will be around 11 025 t, given 21 VEHICLE CLEARING SPECIALISTS
working days in the month with one shift a day.
IMPORT & EXPORT SERVICES
“The initial results following plant relocation suggest we can triple CARGO MANAGEMENT
throughput rates,” said Christiaan Jordaan the company’s Managing
Director. CLEARING FORWARDING
WAREHOUSING
“At the same time, we have achieved a key milestone with the first
commercial shipment of rubies recovered through bulk sampling, as well FREIGHT SERVICES
as our highly successful prospecting teams that form part of our local
community engagement and employment programme.
This shipment will play a vital role in helping us to place market values
on our rubies, as well as growing awareness and understanding of our
world-class stones among customers. As a result, we will be better placed
to estimate the revenue we can generate from our rapidly growing
production profile.”
Through Montepuez Ruby Project, located in the Montepuez Complex, in
Cabo Delgado province, Mustang expects to accrue its first sales revenues
during the first half of this year.
24 Railway Lane, Seaview, Durban, 4094
Currently, it is carrying out auger drilling to map the ruby-containing Tel: +27 31 465 7906, Fax: +27 31 465 6982,
orebody throughout the project area and to be able to delineate a Joint Mobile: +27 83 648 7070
Ore Reserves Committee-compliant resource. Web.: www.loganfreight.com
Meanwhile Gemfields held its seventh auction of rubies from MRM in Meena +27 (0)79 525 77 33
Singapore, from December 12 to December 16, with 39 companies making Brandon Naicker +27 (0)83 648 7070
bids. The auction brought the company $30.4-million, with an average
realised price per carat of $27.79. In all, 1 094 406 ct was sold, representing
www.mozambiqueminingjournal.com
© 2015 Arnold’s Design for Logan Freight Quarter page advert 11MOZAMBIQUE MINING JOURNAL - January/March 2017
GENERAL NEWS
Swedish
solutions
provider,
Atlas
Copco
Atlas Copco chairperson Hans Stråberg
splits
“This is a fantastic opportunity. With the new company solely dedicated to mining
and civil engineering, we can serve our customers even better than we do today,”
A
tlas Copco has announced intentions to create a new company Meanwhile the new company would include 12 000 employees, comprising
focused on mining and civil engineering. The board of directors all divisions within Mining & Rock Excavation Technique, Construction
is due to authorise the business at the group’s annual general Tools, and related services.
meeting in April.
“This is a fantastic opportunity. With the new company solely dedicated
Pulled out from the Mining & Rock Excavation Technique and Construction
to mining and civil engineering, we can serve our customers even better
Tools divisions of Atlas Copco, the new company is set to list on the Nasdaq
Stockholm Stock Exchange towards the second half of next year. than we do today,” says Mining & Rock Excavation Technique business area
president Helena Hedblom.
“Both businesses are global leaders in their respective fields and will benefit
from a more focused management responsibility,” Atlas Copco chairperson Hedblom said the rationale behind the splitting of the Group is to
Hans Stråberg commenting on the split. ensure that both Atlas Copco and NewCo are provided ‘the best growth
opportunities in respective market segments’.
Last year, the mining and construction units to form NewCo had its sales
hit a US$3.1-billion mark for the 12 months ended September 30, 2016, With a dedicated Board and Chief Executive Officer, NewCo is expected to
with an operating margin of about 16%.
be more agile and respond faster to market requirements.
The Swedish service provider said Atlas Copco will retain industrial
customers through catering for compressor technique, vacuum technique “From an organisational point of view there will be no changes. We have
and industrial technique business areas, as well as the portable energy strong customer centers, professional people, excellent products and
division, including service, and the speciality rental divisions. superior services. Our customer support will be reinforced as we can run
operations more focused from present premises.”
According to the group, the industrial company has about 33 000
employees, had sales of US$7.9-billion and an operating margin of about Hedblom explains that the Atlas Copco group has strong customer
20%. centres, professional people, excellent products and superior services.
“Our customer support will be reinforced as we can run more focused
“The two businesses have different demand drivers and demand
characteristics,” said Atlas Copco group president and Chief Executive operations from our present premises.”
Officer Ronnie Leten.
Atlas Copco serves customers in more than 180 countries, in Southern
“A split will increase their respective abilities to add value to customers, Africa offices are in South Africa, Namibia, Botswana, Zimbabwe and
grow the business and attract talent,” Leten added. Mozambique.
12 www.mozambiqueminingjournal.comMOZAMBIQUE MINING JOURNAL - January/March 2017
GENERAL NEWS
Zest Energy light up
Balama Mine
... with a 2200kW generator plant, to be expanded later
S
outh Africa-based utility company Zest Energy, a subsidiary Zest
WEG Group has constructed seven generators power plant at Meanwhile, Zest Energy also successfully implemented a project at the
Balama graphite project. Kamoa-Kakula mine project, in the Democratic Republic of Congo (DRC).
The mine is a joint venture between Canadian mining company Ivanhoe
ASX-listed Syrah developers of Balama said the plant will start operating in Mines, China’s Zijin Mining Group and the DRC government has been
April producing an initial capacity of 12.5 MW with an installation of seven independently verified as the largest copper find in Africa.
2 200 kW diesel generators.
The project handover in October last year marked Zest Energy’s first
Located 250 km west of Pemba in northern Mozambique, Balama Mine successful mobile substation solution delivered to the DRC.
requires supplementary power to ensure adequate supply though
connected to the national grid. The high cost of powering a mine using diesel generators resulted in
the decision to procure a mobile substation that could interface with the
Alastair Gerrard, Zest Energy Managing Director is optimistic the plant will network of the DRC’s national power utility Société Nationale d’Électricité
meet Balama Mine expectations. (SNEL) and supply power to the mining operation during its construction
phase.
“We need to ensure 100% availability and have consequently designed
the plant with substantial standby capacity to allow for maintenance and The company supplied a complete 120/11 kV mobile substation,
repairs without affecting supply,” Gerrard said. incorporating a 15/18 MVA custom-engineered mobile transformer.
The 2200kW generators plant is the largest footprint project tackled by Zest Energy undertook the full scope of the project – designing,
Zest Energy yet, to be expanded later to eleven generators, of which two manufacturing, supplying, testing, delivering, installing and commissioning
will be standby units. the complete mobile substation – inclusive of the trailer, transformer and
related electrical equipment, expounds Gerrard.
Gerrard said companies within the Zest WEG Group supplied equipment
for the extensive scope project. He notes that much effort went into the trailer design – the overall
dimensions and weight – to keep it within road limitations and road
According Zest Energy the containerised power generators include WEG ordinance requirements when transporting the mobile substation from
alternators with automatic voltage regulation systems, as well as motorised Johannesburg to the DRC.
louvres, generator auxiliary systems and fuel and lube tanks.
However, challenges were experienced in keeping the mobile substation
In addition, to cool the engines, a horizontal-type radiator system, rated within these limitations and requirements.
for 50°C ambient temperature, manufactured in South Africa was used at
the plant. These challenges were mitigated by disassembling the transformer,
transporting the auxiliary components to site by road and reassembling it
The company says each radiator includes 10 WEG 3 kW fan motors on location, requiring oil filtration and purification, and a full spectrum of
positioned in two cooling banks of five fans each. tests to be conducted after reassembly.
“One of the challenges of the mine environment is the presence of Moreover, a complete substation protection system together with an
graphite dust, which is highly conductive and must not be allowed to enter earthing system was supplied, all which complied with SNEL requirements,
the power generation units. Gerrard said.
“For this reason, a filter system was designed that could accommodate The last phase of the project involved skills transfer - workers on the mine
the high volumes of moving air required to cool the engines, while also were trained to operate the substation.
requiring as little maintenance as possible,” said Gerrard .
Gerrard said skills transfer is an important part of Zest Energy’s package:
As a result, a local solution was designed in the form of a custom- “We want to work in countries in Africa, but we also want to upskill people
engineered, self-cleaning cartridge type ventilation and pressurisation fan to undertake the effective operation and maintenance of the products and
unit, comprising four WEG 7.5 kW fan motors. solutions we supply.”
Zest Energy has also installed a 30 000 litre intermediate fuel tank to draw Zest Energy, being a subsidiary of Zest WEG Group and its parent
from the customer’s bulk fuel storage system with a duplex fuel filtration company, manufacturer of electrical products WEG, in Brazil, capitalises
and circulation system. on access to a huge international spectrum of products, skills and services.
Gerrard says with this international support and expertise, Zest Energy can
“We will also provide various systems for plant auxiliary power take advantage of groupwide technological developments and tailor them
requirements and for plant earthing and lightning protection, as well to meet Africa’s needs.
as cabling, terminations, racking and supports to all plant electrical
equipment,” Gerrard said.
www.mozambiqueminingjournal.com 13MOZAMBIQUE MINING JOURNAL - January/March 2017
COVER STORY
Benga, Tete coal
blocks to resume
operations
The operations of ICVL are to be aligned with the country’s new
National Steel Policy, a draft of which is now in circulation.
T
he government of India has directed the state company 300-million tonnes a year. To achieve cost competitiveness, domestic
International Coal Ventures Limited (ICVL) to resume the steel producers are expected to cut their reliance on imported coking
company’s mothballed overseas operations. coal.
India’s Coal ministry told ICVL not to waste time to revive operation “The Indian steel sector is disadvantaged due to the limited availability
of essential raw materials and, due to a shortage of domestic coking
of existing overseas coal blocks or delay the acquisition of new assets,
coal, both in terms of quality and quantity, pig iron producers and
warning that delays were unacceptable. blast furnace operations in India have to significantly depend on
importing coking coal,” the draft policy said.
Some of the suspended operations are Benga and Tete East coal
block. In 2015, ICVL halted production at Benga, saying the crash As a result, it is imperative for companies like ICVL to fit into the overall
in international coking coal prices had made operations financially objectives of the policy through significant gains in securing critical
unviable. raw materials sources overseas, a Ministry official added.
The rebound of international coking coal prices from a low of $80/t ICVL is a special purpose vehicle of government companies, was
established in 2009 with the mandate to acquire coking and thermal
when the Benga operations were halted, to levels of above $200/t at
coal assets overseas; however, it has made limited progress in reaching
present has inspired Indian government to call for ICVL to resume its goal of securing at least 500-million tonnes of coal reserves
production overseas immediately. overseas by 2020.
The operations of ICVL are to be aligned with the country’s new ICVL is a joint venture between government companies, including
National Steel Policy, a draft of which is now in circulation. steel producers Steel Authority of India Limited, Rashtriya Ispat Nigam
Limited, iron-ore miner NMDC Limited and coal miner Coal India
The policy states that Indian steel production is targeted to increase to Limited.
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AFRICAN NEWS
Fresh optimism in mining
sparks opportunities
By Kim Cloete
T
he upswing in the mining industry, which was reflected at the 2017 Simms said despite the more positive outlook, he expected the recovery
Investing in African Mining Indaba in Cape Town has opened up in the sector to be gradual, with political risk in some African countries
exciting opportunities for a wide range of companies active in the and compliance pressures still causing some uncertainty. He has noted an
sector. increasing trend towards opportunities in renewable projects.
The improved outlook towards commodity prices, particularly iron ore, coal “Improved commodity demand from China during 2016 has been a positive
and base metals, has been a boost for the sector, while the upbeat tone sign with the potential for increased spending on infrastructure in 2017 an
of the Mining Indaba this year is expected to cascade into new ventures. important element driving this upturn in demand,” said Olivier Barbeau,
Moore Stephens South Africa Mining Leader based in Johannesburg.
The 2017 Investing in African Mining Indaba released updated figures
recently, revealing that 71% more investors had attended the event this
year. There was also a 50% increase in the number of small cap and small Barbeau, who has recently advised several Chinese mining operations
private mining companies attending the week-long gathering in Cape entering the South African marketplace, has experienced first-hand the
Town. A total of 6,080 people attended the Mining Indaba this year. increased interest in the Southern African mining sector.
Laura Pingree, Director of the Mining and Energy team for global David Tomasi, Mining Partner based at Moore Stephens Perth, said it was
accounting and consulting firm, Moore Stephens, said the mood at clear companies that had tightened up on their costs over the past few
the Mining Indaba this year was more positive than last year and has years were in a stronger position.
consequently led to more opportunities.
“Small to mid-cap projects are finding it easier to be funded, as investors
“We’ve been doing groundwork for the past couple of years, and working start to look for value. This is a real sweet spot for us.”
really hard. Now that the market has picked up, people are coming to us.
Companies are interested in a more serious African footprint.” “Since the beginning of 2016 we have seen increased interest in potential
Africa opportunities as well as South African clients of Moore Stephens
People were also interested in meeting up with Moore Stephens firm seeking to enter the Australian mining market with innovative mining
representatives through its growing spread of member firms around Africa. technologies,” said Tomasi.
Given the increasing interest in mining opportunities across West Africa
Tomasi said copper, unconventional gas and renewables were definitely
over the past two years, Moore Stephens is expanding its member firm
starting to generate interest, particularly in Africa where reliable power
network growth strategy to encompass the enrolment of quality firms in
Mali, Senegal, Togo, Burkina Faso, Ivory Coast and Guinea Conakry during supply is such an issue.
2017. The firm already has a very strong presence in countries like South
Africa, Nigeria, Cameroon and Ghana. “I expect nickel, platinum and lithium to have a bit of a run as the world
craves better sustainable energy solutions, with power storage being a key
Other developments have also prompted interest. component on this,” he added.
“We are currently working on a corporate finance transaction that will bring Besides its regular audit and advisory work with clients, Moore Stephens is
a world class product manufactured in South Africa to the world market,” also at the forefront of conducting country reconciliations for the Extractive
said Hans Hillermann, Corporate Finance Partner for Moore Stephens Industries Transparency Initiative (EITI), having completed the process for
Durban. countries ranging from Mali and Zambia to Burkina Faso, Ethiopia and
Myanmar.
“This innovation provides mining operations cost-effective products in the
period when the pressure is to reduce cost reduction.” Fifty-one countries are either fully compliant or are going through the
process to be part of the EITI, a global standard which promotes the open
Michael Simms, Moore Stephens Mining and Energy leader, based in and accountable management of natural resources, mainly of oil, gas,
London, was upbeat about the prospects for mining projects which have metals and minerals.
survived the downturn cycle.
16 www.mozambiqueminingjournal.comMOZAMBIQUE MINING JOURNAL - January/March 2017
AFRICAN NEWS
Miners rip off governments in
extractive industry deals
... UN, AU working with continent leaders to achieve transparency
U
nited Nations Conference on Trade and Development (Unctad) says He said a transparent tax regime was essential citing that lopsided
African states are not benefitting fairly from mining. agreements between mining companies and politicians may work in the
short term, but were not fair or sustainable.
The Unctad’s Secretary-General, Mukhisa Kituyi has made a call for fair,
transparent disclosure around extractives industry in Africa Kituyi, a former Kenyan trade and industry minister said Unctad was
helping the African Union work with presidents in Africa to agree to basic
Kituyi said clear and open rules of engagement between governments and principles on transparency in the type of contracts they sign.
mining companies should be crafted.
He said some African governments were unaware of how much was being
Addressing delegates at the Investing in African Mining Indaba, Kituyi
mined out of their countries by foreign investors. They rely simply on trust,
said that there was still a feeling of anger over the unequal sharing of the
but do not know the figures.
benefits of the extractive industry in African countries.
Kituyi said one of the best ways investors in the mineral sector can assist is “Building the capacity to monitor is a major step that countries have
to develop benchmarks towards a fair agreement. not taken. Institutions of governance have been horribly wobbled.
Governments don't quantify what they are getting from extractors.”
“We need to cultivate a sense of fair sharing,” Kituyi suggested, adding that
governments had a responsibility to prioritise what needed to be done, Kituyi said it was important to publish the nature of contracts. “This creates
from sound innovation policies in building resource assets, to the fair and the condition in which extractives are not the basis of political wars, which
productive use of tax and returns from minerals which should be invested we’ve seen in Central Africa in the past 50 to 60 years.”
in people.
More generally, he said, African countries were grappling with changes
He said new arrangements are vital as Africans depended heavily on tax flowing from trade liberalisation.
revenue.
“Under globalisation, there has been massive liberalisation panic in weak
“Africa has a unique problem. Taxes are Africa’s largest source of public developing countries.” He said trade-related revenues and customs duties
revenue, more than anywhere in the world. This makes people in Africa had dropped without a rise in public revenues.
very vulnerable to taxation.”
www.mozambiqueminingjournal.com 17MOZAMBIQUE MINING JOURNAL - January/March 2017
AFRICAN NEWS
Scale up energy infrastructure
development - AU
rural population,” said Dr. Ibrahim.
Dr Ibrahim said the AU Commission alongside
the WEC should speed up renewable energy
projects and strategies already in the pipeline
and developed to support the African
continent in achieving a sustainable energy
future.
He cited that the visionary agreement at
COP21 in Paris coupled with the dynamic
innovation context, defining new opportunities
and the shifting risks and resilience frontiers
should prop up the continent’s energy sector.
Dr Ibrahim however points that the challenge
is to now turn words and ambition into
measurable actions at both national and
regional levels to accelerate the energy
transition.
AU believes the ability to deliver and
deploy the most carbon effective, resources
efficient and resilient solutions at scale will
be key to achieving secure, equitable and
T
environmentally viable energy systems.
he Africa Union (AU) says energy ministers should proactively unlock
“But without clear leadership, regional integration and collaboration
investment to develop energy infrastructure across the continent.
beyond the borders of individual nations, African nations could fall short
on their ambitions.”
Dr Elham Ibrahim, Commissioner for Energy and Infrastructure at
AU and Vice Chair for Africa at the World Energy Council (WEC), said
AU’s sentiments are also shared by Liz Hart, Managing Director, Africa
energy infrastructure development should continue to top political and
Energy Indaba, said: “The African continent has the necessary mineral
business decision making.
resources, climate and geology to meet its energy requirements. However,
in many of its countries, there is a lack of funding, institutional will or
“I believe the time for more serious action has come for scaling up the
technical skill to assist in developing the energy sector.”
implementation of renewable energy in Africa.
“Without access to energy, Africa’s growth will be stifled and, as such,
The continent has abundant renewable energy resources in the form of
investing in energy solutions for the continent is “mandatory and absolutely
hydropower, solar, wind, geothermal and bio-energy that are appropriate
necessary”, Hart said.
for responding to the challenge of energy access, especially for our large
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Contents
Comentário Editorial
Mineração deve sustentar a economia em dificuldades : ............................................. 4
RESUMOS DE NOTÍCIAS
O setor de rubis de Moçambique avança : ................................................................. 6
Concargo continue to expand footprint across the continent : ............................ 7
NOTÍCIAS GERAIS
Grupo italiano ENI ultima venda de participação
em bloco petrolífero em Moçambique : ................................................................ 9
Mustang adquire 65% em outra licença de
mineração de Moçambique : .................................................................................. 10
Ascensão de ações do Mustang na descoberta de
grafite de alta qualidade em Moçambique : ................................................................ 11
O setor de rubis de Moçambique avança : ................................................................ 12
China coloca industrialização de economias
africanas na agenda internacional : .................................................................................. 13
HISTÓRIA PRINCIPAL
Benga, blocos de carvão Tete para retomar as operações : ........................... 14
NOTÍCIAS AFRICANAS
Grupo Sasol inicia produção de petróleo em
Moçambique dentro de 2 a 3 anos : .................................................................................. 16
Vale Moçambique encerra 2016 com prejuízo de
105 milhões de dólares : ..................................................................................................... 18
PUBLISHER ADDRESS
MTI Moçambique Limitada Maputo Office:
628 Julius Nyerere Avenue
Editor: Maputo, Mazambique
Andrew Maramwidze P.O Box 3236, Maputo
drewmara@gmail.com Tel: +258 84 119 4017 / +258 84 445 5339
Fax: +258 82 423 8542
Editorial Contributors:
More Love Mafu Tete Office:
Dakito Bias Talhao 4109
Mario Deus Matundo, Tete
Casimo Muhimua Tel: +258 84 119 4017/ +258 212 230 941
Fax: +258 212 227 698
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