New Equitable Economic Empowerment Framework

April 2016 Mining Journal

URANIUM A new dawn A Golden Year for the for B2Gold industry? Forming lasting partnerships special focus through CSR New Equitable Mining Towns Economic What’s the future for Namibia’s mining Empowerment towns? Framework

Namdeb meet the women changing the face of Namibian mining

credits

a publication of the Namibian | April 2016

EDITOR Tangeni Amupadhi

COMPILED BY Christof Maletsky (Managing Editor)

SUB EDITING Nick de Voss

WRITERS / Jessica Brown CONTRIBUTORS Ndama Nakashole Leon Kufa Hafeni Hiveluah

DESIGN & LAYOUT Turipamwe Design

SALES Deodine Cloete Phozia Mouton Soini Andreas Shawapala Kandjabanga

PRODUCTION Charlton de Waal MANAGER

PRINTERS CTP Printers

Phone: +264 61 279 600; Fax: +264 61 279 602 Address: 42 John Meinert Street PO Box 20783, Windhoek, Namibia

Published by the Free Press of Namibia (Pty) Ltd.

All rights are reserved. Whilst every care has been taken to ensure accuracy of information contained within, no liability can be accepted by the publishers or the contributors for any errors, misstatements or omissions which may have occurred. The opinions expressed in this publication are not necessarily those of the publishers. Also, the publishers accept no legal liability regarding the photo copyright ownerships for material which was supplied directly to the publishers by any of the advertisers or contributors. : b 2 gold This is a free publication and is not to be sold for profit. namibia This special supplement can also be accessed on our website at www.namibian.com.na

a publication of the namibian contents

4 Contents industry

evolution Developments and 12 – 13 evolution in the Namibian mining industry 14 THE GOLDEN PARTNERSHIP the golden partnership A YEAR OF B2GOLD MINING IN NAMIBIA 14 – 16 A year of B2Gold mining in Namibia

uranium 22 – 24 A new dawn?

opinion 26 – 27 Paradigm shift needed for sustainability of mining

health and safety 35 A joint approach

mining expo 43 From strength to strength

tech 46 – 47 Namibian tech for Namibian growth

economy

boom and slump 8 – 11 Mining sector analysis

mining investment 25 GDP growth

mining sector viewpoint 36 – 41 New Equitable Economic Empowerment Framework

rmb 58 Mining industry financing

Infrastructure & Services

logistics 28 – 29 Autohaus makes inroads in customer service

railways 32 – 34 Unlocking the growth on the railways logistics 8 44 – 45 FP du Toit: home-grown Boom and Slump quality and service Mining Sector Analysis

mining journal mining journal 2016

people & environment Thank you to namdeb our advertisers 18 – 20 Women making strides companies chamber of environment 5 49 Leveraging non- Areva Resources Namibia conventional funding Autohaus small-scale miners 50 – 51 The daily bread of B2Gold 49 Erongo miners Basil Read water Chamber Of 52 – 53 Business School of Environment Managing water challenges Excellence Leveraging mining towns 54 – 57 D&M Rail Construction non-conventional Troubled times funding Diamond Board of Namibia De Beers Namibia Engen FP du Toit GCS Water & Environmental Consultants Kodo Drilling Langer Heinrich Uranium Manica NAMCOR 18 NAMDEB NAMDEB NDTC WOMEN IN MINING Nedbank NUST Pioneer Energy & Minerals Consulting RMB Namibia Ropetech Simpology Standard Bank TransNamib Holdings VIVO Energy Namibia 54 Xtreme Safety Wear mining towns Troubled Times

a publication of the namibian Serving the Namibian Mining Industry ServingServing the the Namibian Namibian Mining Mining Industry Industry ServingBackground the Namibian MiningHowever, these programmes Industry have been further developed, resulting However,in a more these elaborate programmes and encompassing have been further curricula developed, that match resulting global TheBackground Department of Mining and Process Engineering (DMPE) at the However, these programmes have been further developed, resulting Background intrends. a more Metallurgical elaborate and Engineering encompassing commenced curricula in that2013 matchand the global first Namibia University of Science and Technology (NUST) was founded in a more elaborate and encompassing curricula that match global BackgroundTheThe Department Department of of Mining Mining and and Process Process Engineering Engineering (DMPE) (DMPE) at at the the trends.cohortHowever, of Metallurgical students these programmes will Engineering graduate have in 2016. commenced been The further Department in 2013developed, and also the intends resulting first in 2009 to provide international best-practice tertiary education, trends. Metallurgical Engineering commenced in 2013 and the first NamibiaNamibia University University of of Science Science and and Technology Technology (NUST) (NUST) was was founded founded tocohortin introducea more of students elaborate postgraduate will andgraduate programmesencompassing in 2016. The in curricula MiningDepartment and that Metallurgical also match intends global training and applied research in Mining and Process Engineering. cohort of students will graduate in 2016. The Department also intends Thein in Department 2009 2009 to to provide provide of Mining international international and Process best-practice best-practice Engineering tertiary tertiary (DMPE) education, education, at the Engineeringtotrends. introduce Metallurgical in postgraduate 2017. Engineering programmes commenced in Mining in and 2013 Metallurgical and the first Namibiatraining University and applied of Scienceresearch andin Mining Technology and Process (NUST) Engineering. was founded to introduce postgraduate programmes in Mining and Metallurgical trainingThe Department and applied aspiresresearch to in beMining the and partner Process of choiceEngineering. for industry, EngineeringStudentsEngineeringcohort of experienceinstudents in2017. 2017. will a rigorous graduate experiential in 2016. The learning Department process also during intends in 2009delivering to provide high international quality graduates best-practice and making tertiary meaningfuleducation, TheThe Department Department aspires aspires to to be be the the partner partner of of choice choice for for industry, industry, whichStudentsto introduce they experience are postgraduate practically a rigorous exposed programmes experiential to the in reallearning Mining work process and environment. Metallurgical during trainingcontributions and applied to research the advancement in Mining and of knowledge Process Engineering. through applied Students experience a rigorous experiential learning process during deliveringdelivering high high quality quality graduates graduates and and making making meaningful meaningful DuringwhichEngineering they that are in process, 2017. practically the studentsexposed to are the required real work to environment.complete an research and solving industry problems. To achieve its goals, the which they are practically exposed to the real work environment. Thecontributions contributions Department to to aspires the the advancement advancement to be the ofpartner of knowledge knowledge of choice through through for appliedindustry, applied investigativeDuring that project process, and the compile students a report. are requiredThey are toalso complete expected anto Department has built a team of highly qualified experts with a rich DuringStudents that experience process, the a rigorous students experiential are required learning to complete process an during deliveringresearchresearch and high and solving solving quality industry industry graduates problems. problems. and To To achieve making achieve its its goals,meaningful goals, the the identifyinvestigative a design project project and that compile is technically a report. oriented They are and also demonstrates expected to Departmenthistory of both has industrybuilt a team and academicof highly qualified experience. experts It is now with in a therich investigativewhich they project are practically and compile exposed a report. to They the are real also work expected environment. to contributionsDepartment has to thebuilt advancementa team of highly of qualified knowledge experts through with applieda rich keyidentify mining a design and metallurgicalproject that is engineering technically oriented competences. and demonstrates This design process of procuring, installing and commissioning state-of-the-art identifyDuring a design that process,project that the is technically students oriented are required and demonstrates to complete an historyhistory of of both both industry industry and and academic academic experience. experience. It It is is now now in in the the projectkey mining is critical and metallurgical as it develops engineering the students’ competences. independent This learning design researchlaboratory and facilities solving industryin a N$200m problems. new building. To achieve This equipment, its goals, some the key mining and metallurgical engineering competences. This design processprocess of of procuring, procuring, installing installing and and commissioning commissioning state-of-the-art state-of-the-art abilityprojectinvestigative and is criticalenables project as them it and develops to compile exercise the atheir students’report. design They independent competence. are also expected learning to Departmentof which willhas be built exclusive a team to NUSTof highly in Sub-Saharan qualified Africa,experts will with serve a therich project is critical as it develops the students’ independent learning laboratorylaboratory facilities facilities in ina N$200ma N$200m new new building. building. This This equipment, equipment, some some abilityidentify and a designenables project them to that exercise is technically their design oriented competence. and demonstrates historyNamibian of both mining industry industry, and academicparticularly experience. in pursuing It industry-related is now in the ability and enables them to exercise their design competence. of ofwhich which will will be be exclusive exclusive to toNUST NUST in inSub-Saharan Sub-Saharan Africa, Africa, will will serve serve the the keyComments mining and from metallurgical Industry engineering competences. This design processNamibianresearch of procuring, and mining producing industry, installing globally particularly and competitive commissioning in pursuing engineers. state-of-the-art industry-related projectComments is critical from asIndustry it develops the students’ independent learning laboratoryNamibian facilities mining industry,in a N$200m particularly new building. in pursuing This equipment, industry-related some CommentsLanger Heinrich from Mine: Industry researchresearch and and producing producing globally globally competitive competitive engineers. engineers. ability and enables them to exercise their design competence. of whichOur Visionwill be exclusive to NUST in Sub-Saharan Africa, will serve the LangerAuneLanger HeinrichNdjenja Heinrich andMine: Mine: Ndapanda Fanuel, as employees: “These two young NamibianOur Vision mining industry, particularly in pursuing industry-related professionals are just so hard-working and dependable! We all love OurTo Vision be the premier academic department of choice for Mining and AuneAuneComments Ndjenja Ndjenja and andfrom Ndapanda Ndapanda Industry Fanuel, Fanuel, as as employees: employees: “These “These two two young young them here and it is testimony to an excellent coach and lecturer to researchToProcess be and the Engineering producing premier academic inglobally Southern competitive department Africa. engineers. of choice for Mining and professionalsprofessionals are are just just so so hard-working hard-working and and dependable! dependable! We We all all love love To be the premier academic department of choice for Mining and haveLanger yielded Heinrich these Mine: two graduates who have no noticeable knowledge Process Engineering in Southern Africa. themthem here here and and it itis istestimony testimony to toan an excellent excellent coach coach and and lecturer lecturer to to OurProcessOur Vision Mission Engineering in Southern Africa. gaps and have such a productive approach to work! Harmony, havehaveAune yielded yielded Ndjenja these these and two twoNdapanda graduates graduates Fanuel, who who have ashave employees:no no noticeable noticeable “These knowledge knowledge two young Our Mission congratulations on this.” - Mr Hein Daiber, former Human Resources ToOur beTo Mission the provide premier international academic departmentbest practice of education, choice for training Mining and and gapsgapsprofessionals and and have have are such such just a a productiveso productivehard-working approach approach and todependable! to work! work! Harmony, Harmony, We all love congratulationsManager at Langer on Heinrichthis.” - Mr Mine. Hein Daiber, former Human Resources ProcessToinnovative provideEngineering research international in Southernin Mining best and Africa. Process practice Engineering. education, training and congratulationsthem here and on itthis.” is testimony - Mr Hein toDaiber, an excellent former Human coach Resourcesand lecturer to To provide international best practice education, training and Manager at Langer Heinrich Mine. innovativeTheinnovative Department research research offersin inMining Mining two and andprogrammes, Process Process Engineering. Engineering. namely the B.Eng. Mining, ManagerOkorusuhave yielded at Mine: Langer these Heinrich two graduates Mine. who have no noticeable knowledge OurandThe Mission theDepartment B.Eng. Metallurgy offers .two Both programmes, are four-year namelyprogrammes the and consist, Okorusugaps and Mine: have such a productive approach to work! Harmony, The Department offers two programmes, namely the B.Eng.B.Eng. Mining Mining, Okorusu“I am passionate Mine: about proving to the world that Africa is on its way andof coursework the B.Eng. Metallurgy and work-integrated. Both are four-year learning programmes which take and students consist upcongratulations and will reach on its this.”zenith, - Mrand Hein this willDaiber, only former occur through Human qualityResources Toand provide the B.Eng. international Metallurgy. Both best are practice four-year education, programmes training and consist and “I am“I am passionate passionate about about proving proving to tothe the world world that that Africa Africa is ison on its its way way ofthrough coursework significant and practical work-integrated exposure. learningThe curricula which receive take significant students education.Manager at Please Langer feel Heinrich at home Mine. at Okorusu at all times.“ - Mr Mark innovativeof coursework research and in work-integratedMining and Process learning Engineering. which take students upup and and will will reach reach its its zenith, zenith, and and this this will will only only occur occur through through quality quality throughinput from significant the Namibian practical mining exposure. industry, The leading curricula academics receive andsignificant other through significant practical exposure. The curricula receive significant education.Dawe,Okorusu MD Mine: ofPlease Okorusu feel Mine. at home at Okorusu at all times.“ - Mr Mark The stakeholdersDepartment locallyoffers andtwo Internationally,programmes, includingnamely the the B.Eng. Chamber Mining of, education. Please feel at home at Okorusu at all times.“ - Mr Mark inputinput from from the the Namibian Namibian mining mining industry, industry, leading leading academics academics and and other other Dawe, MD of Okorusu Mine. and Minesthe B.Eng. of Namibia. Metallurgy Initially,. Both the are Department four-year programmes offered the B.Eng.and consist Mining Dawe, MD of Okorusu Mine. stakeholdersstakeholders locally locally and and Internationally, Internationally, including including the the Chamber Chamber of of “I am passionate about proving to the world that Africa is on its way of courseworkwith specialisation and work-integrated in Mining Production learning and which Mineral take Processing. students MinesMines of ofNamibia. Namibia. Initially, Initially, the the Department Department offered offered the the B.Eng. B.Eng. Mining Mining up and will reach its zenith, and this will only occur through quality throughwithwith specialisation significant specialisation practical in in Mining Mining exposure. Production Production The curricula and and Mineral Mineral receive Processing. Processing.significant education. Please feel at home at Okorusu at all times.“ - Mr Mark input from the Namibian mining industry, leading academics and other Dawe, MD of Okorusu Mine. stakeholders locally and Internationally, including the Chamber of Mines of Namibia. Initially, the Department offered the B.Eng. Mining with Enquiries: specialisation in Mining Production and Mineral Processing. Enquiries:MrEnquiries: Priviledge Shava MrT: Priviledge+264 61 207 Shava 2729 MrE: Priviledge [email protected] Shava T: T: +264 +264 61 61207 207 2729 2729 Department of Mining and Process E: [email protected] Engineering E: [email protected] DepartmentDepartment of ofMining Mining and and Process Process EngineeringEngineering Enquiries: Mr Priviledge Shava T: +264 61 207 2729 E: [email protected] Department of Mining and Process Engineering “Where is Namibia’s latest landmark deal?” “The ocean.”

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leon kufa

8 boom and slump

The mining industry has seen it all

mining journal mining industry

The period from independence has been very

eventful for the mining sector in Namibia. There 9 is no doubt about the importance of this sector to the Namibian economy, as it is one of the biggest contributors to the gross domestic product (GDP) of the country.

Namibia Mining Sector Contribution to Gross Domestic Product (%)

14 13.2

P 13 12.3 D 12 11.6 11 10 9.5 9 8.5

% contribution to G 8 7

2010 2011 2012 2013 2014 Years

source: oecd, chamber of mines

A lot has taken place, since independence, that has impacted on the local mining sector – policy formulation, regulation, empowerment, a boom in exploration activities, the 2008 global economic crisis, the Fukushima disaster in 2011 and the formation of Epangelo Mining Company by the government.

There is a general feeling that policy making by the government was not up to scratch in the period from independence to just a few years ago. However, there have been some commendable work done in the policy making sphere of late.

The establishment, in 2009, of Epangelo Mining, a government-owned mining company, was seen by government as cementing the provisions of the minerals act, which spells that the mineral resources found in Namibia belong to the State. In this regard six minerals were declared as strategic minerals, the rights of which could only be held by the state. Diamonds, gold, coal, uranium, copper and rare earth metals were such minerals. This was to apply to new licences issued after the declaration.

This was a noble idea, but the starting capital allocated to Epangelo had tongues wagging. It was a mere N$1,5 million. To date Epangelo has not managed to raise any meaningful capital, although it has announced a number of joint venture deals with other mining companies, most of them without having any capital outlay on its part.

The efforts by the government to encourage mining activity can be seen in the number of mining and exploration licences granted over the past 10 years. •

a publication of the namibian mining industry

Exclusive Prospecting Licences (EPLs) and Mining Licences (MLs) 10 granted since 2015 YEAR 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 EPL 96 135 194 165 179 230 402 258 395 138 ML 1 0 7 4 4 2 4 3 0 3

source: oecd, chamber of mines

It should be noted that the proportion of exclusive speech in March 2009, then minister of finance, Saara prospecting licences that will end up being upgraded to full Kuugongelwa-Amadhila noted that global output projections mining licences is very small. for both 2009 were barely above breakeven.

In this sphere, two moratoriums have been declared, the first In December 2008, the country’s leading uranium extractor one being on the issuing of Exclusive Prospecting Licences Rossing Uranium admitted that its balance sheet had already in 2007, for uranium, pending the finalisation of resource been badly affected by the crisis situation in the US and policies. The second moratorium issued in 2013 was for marine European economies, where most of its uranium is exported. phosphate mining. This was based on the argument by the At the same time Weatherly PLC, which owned Otjihase and Ministry of Fisheries and Marine Resources’ argument that Tschudi Copper mines placed their operations on care and marine phosphate exploitation was never done anywhere in maintenance, citing the low prices of copper on the world the world, and that there is little information available about market. This left 630 employees in search of alternative its long-term effect on the marine environment. employment.

Extraction of minerals and selling them off in their raw form is The county’s leading diamond miner, Namdeb, was forced into viewed as not benefitting the country fully. The government a three-month production holiday, after consultations with has embarked on a drive to encourage beneficiation or value the Mineworkers Union of Namibia. The company argued that adding to the extracted resources. This has witnessed the there was need to preserve the company’s cash position by establishment of processing companies such as diamond reducing activities that consumed cash as well as adjusting cutting and polishing factories as well as the copper smelter production levels to be in line with world demand. As a result, at Tsumeb. However, it should be noted that in some areas, the company introduced a voluntary retrenchment exercise the country will continue exporting raw minerals as there is no which targeted to lay-off 600 workers. capacity to refine gold as well as to enrich uranium. However, the country managed to come of the crisis. This is Economic empowerment in the mining sector has generally evidenced by the events that took place just after the crisis, been characterised by more talk than action. The country has and what is happening at the moment. failed to put in place any policy framework that defines how the indigenous people will participate in the mining sector In October 2009, Anne Lauvergeon, then CEO of AREVA, ownership. However, this is also understandable given the a French government owned mining company, and former fact that there is need to avoid situations where ownership President Hifikepunye Pohamba, signed off the commissioning by locals does not translate to any meaningful contribution of the sea water desalination plant, 30 km north of towards the activities of the companies, in terms of capital Swakopmund. The construction of the seawater desalination and skills. plant in Namibia came as a direct response to the growing water shortage in the Erongo region where the Areva The global economic crisis in 2008 had its fair share of effects Trekkopje mine is located. on the mining sector. The most obvious effect was the fall in global commodity prices that send many mining companies on The resilience of the sector continued as the construction of production holidays. three mines has gone ahead in the past few years. B2Gold was established and it produced its first kilogram of gold on 11 A delegation from the International Monetary Fund (IMF) December 2014. Swakop Uranium’s new mine, Husab has been which visited Namibia late in December 2008 warned of a commissioned and is set to be the world’s second biggest decline in general revenue from Namibia as exports continue uranium mine, expected to employ 1 200 people. This is an to perform poorly worldwide. In her budget presentation investment of US$2 billion.

mining journal mining industry

Employment in the mining sector (2007- 2014) 11 9000 Dundee Precious Metals commissioned its N$2,7 billion sulphuric acid plant in Tsumeb in August 2015. All this attests 8100 to a growing sector, and the hope is that solid and reasonable 7200 empowerment policies will be put in place to support the investments that have been poured into the sector. 6300 Despite the deep during 2008 and 2009 due to the 5400 global financial crisis, the mining sector has been creating 4500 employment for many people.

3600 For the past three years the sector has been keeping No. of employees employment figures above the 7 000 mark. Prior to that the 2700 production holidays, as well as the voluntary retrenchments 1800 mentioned earlier, were the cause of the deep unemployment figures during the depression period. 900 All this shows a sector that has seen it all. The steady 0 2007 2008 2009 2010 2011 2012 2013 2014 economic performance of the country, a stable investment climate, and an abundance of natural resources are set to work Years in Namibia’s favour as far as mining is concerned. • source: oecd, chamber of mines

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Jessica brown

12 Developments and evolution in the Namibian mining industry The last 10 years have been a flurry of big mining projects and investments that are now yielding dividends, and helping to offset some of the global negative trends.

SINCE last year the Namibian mining industry has burgeoning middle class in China and India in the been faced with a number of challenges, but with medium term. some positive beacons thrown in the mix too. De Beers reduced output and suspended The slowdown of the Chinese economy and production in some mines in an effort to curb sluggish nature of the USA economy led to an global supply and boost prices. These efforts ongoing commodity price slump. Namibia relies were undermined by sustained production by heavily on diamond and uranium exports and is Russia and production increased from Dominion subsequently feeling the heat. Diamond Corp and Petra Diamonds.

It has been a bad year for copper and in Namdeb invested several millions into two September 2015 Weatherly Mining announced vessels, the SS Nujoma – an exploration ship, the suspension of its two underground mines, and MV Mafuta – a marine miner. They are also Matchless and Otjihase, retrenching 222 workers piloting X-ray technology machinery to increase and moving the mines into project development efficiency gravel processing. status. Uranium prices have stayed fairly stable, albeit Fortunately for Weatherly, their new open-pit low, through 2015. However, these prices look mine at Tschudi achieved commercial production set to improve in the medium to long term with status in October 2015, which has lower Husab mine near Arandis expected to start operational costs compared to their underground producing this year and once in full production, mines. The company is hoping to weather the will make Namibia the second largest producer slump with Tschudi and reopen its other mines globally. should prices soar. Lead and zinc have been feeling the brunt of the Diamonds have also taken a price knock, due to Chinese construction slow-down. Scorpion Zinc lower demand. This is thought to change due to a had its life of mine extended to 2017. Rosh Pinah

mining journal mining evolution

Zinc has been faced with industrial action and spent adviser, ranked Namibia 7th in the world – up two the beginning of the year struggling to come to an places from 2014. agreement with their workforce on wage increases. 13 Namibia has since dropped on the Fraser Institute However, gold paints a slightly rosier picture. While rank due to concerns about looming empowerment the prices reached a six-year low in August 2015 it laws and delays in the acquisitions and renewals of picked up again as the year progressed. Gold is viewed mining licences. as a safe haven for investors when financial markets are in duress. Overall, Namibia has not been as hard hit by the commodity slump over the past year as other African B2Gold is going strong with its commercial production countries. The last 10 years have been a flurry of big which started on 28 February 2015. The company is mining projects and investments that are now yielding planning on commencing mining in its Wolfshag Zone dividends, and are helping to offset some of the later this year. The weak rand has allowed them to global negative trends. produce at a significantly lower price than had been originally estimated. Should commodity prices pick up in the short term, Namibia is well placed to respond rapidly. In March 2015 the Fraser Institute ranked Namibia as the most attractive mining destination in Africa. The Further mining-related job losses are a concern both position is based on perceptions of 485 mining related for mining companies themselves and support and organisations, mineral potential and public policy supply companies that rely on the mines. Uncertainty factors such as labour laws and political stability. In remains in the air – as is apparent from the theme of October, Behre Dolbear, a global minerals industry this year’s mining expo‘ weathering the storm.’ •

READY Namdeb Probe Drill Platform. photo: yvonne amukwaya

ALL ACTION Rubble being deposited into crusher at B2Gold Otjikoto. photo: jessica brown

a publication of the namibian the golden partnership

14 The Golden Partnership Jessica brown A Year of B2Gold Mining in Namibia

Mark Dawe and the management at B2Gold are determined to make the relationship between themselves and Namibia a positive, transparent and mutually beneficial one.

THIS time last year B2Gold’s new Otjikoto mine in the are impressed with how remarkably neat, compact and Otjozondjupa region was getting into the swing of organised the site is. Everything has been arranged to things. First gold had been poured a few months before cause the least environmental disruption possible, and is in December of 2014, and the official inauguration contained within a well-planned area. ceremony held shortly thereafter. A year on, B2Gold has become a household name, and is now an innovative Water is recycled. Rubble piles are kept low and participant in the mining sector and the county. inconspicuous and are quickly rehabilitated once they have reached their capacity. Chemical plants are closely Commenting on the fact that Namibia was voted the monitored. Any waste products of the mining process most attractive mining destination in Africa in March are routinely and safely cleaned and neutralised as part 2015, Mark Dawe, B2Gold managing director states that of a standard operating procedure. Even the power plant this is “absolutely correct, [there is] no better place in has a floor that the head engineers boasts that you can Africa, or I’d say in the world, to do business”. He adds both see your face in and eat off. that “the government has been very supportive of us, and it’s been a pleasant experience for B2Gold in Speaking to an environmentalist involved in the initial general and myself in particular”. environmental impact assessment of the mine, he noted how impressed his consultancy had been at B2Gold’s Dawe and the management at B2Gold are determined to eagerness to comply with all their recommendations and make the relationship between themselves and Namibia suggestions in ensuring they were as conscientious as a positive, transparent and mutually beneficial one. possible. They are actively trying to change the negative image of the mining industry and mining companies. Being This level of compliance displays an attitude of good corporate citizens is the bottom line for B2Gold, responsibility that resonates throughout the company. making them the ideal development partner for Namibia. Staff of all ranking, show great pride in the organisation that they are involved with, a respect that they in turn Model Corporate Citizens have received from the company, which hugely values From the get-go B2Gold has done things by the book. staff safety, training and wellbeing. While flying over the site en route to a mine visit, visitors

mining journal the golden partnership

INSPECTING Constant monitoring takes place at the B2Gold Otjikoto pit to ensure optimum production and high safety standards. photo: jessica brown

“The mine is thriving and still has 10 years of life – with the possibility of further exploration...”

Across the board B2Gold are game changers. Once specialists to mentor health workers in 10 regions across off, unsustainable corporate social responsibility (CSR) the country. Using web-conferencing technology, much programmes are often wheeled out by corporates to silence needed expertise can be shared quickly and remotely. Along naysayers and to window dress negative public image, but a similar theme, B2Gold also funds a mobile clinic through B2Gold’s approach is a far step from the whitewashing PharmAccess and the Mister Sister initiative that visits the that many have come to associate with CSR. And these informal settlements in Windhoek, bringing primary healthcare programmes are not fair-weather either. to low income Namibians.

Steve Galloway, managing director of RMB at First National The shortage of affordable housing is another challenge Bank remarked how impressed he was with B2Gold when many Namibians face, and in this area too B2Gold has found “before they had produced a kilo of gold they were spending a practical solutions to do their bit. B2Gold is collaborating lot of money on the environment and community”. with the Otavi and Otjiwarongo town councils on a joint partnership in which the town councils provide land for Productive partnerships B2Gold to develop and to make land freely available to their Preferring the phrase, corporate social investment, the staff to build their own houses on with the help of B2Gold company has a substantial budget, nearing N$23 million negotiated bank loans at very competitive lending rates and a to put towards their CSI this year alone. Their programme 20% B2Gold-backed guarantee. This home ownership scheme is broken down in four comprehensive pillars, these being is aimed at helping to keep the family fabric in place as well as education, health, livelihoods and environment. providing long term investment and stability to the individuals.

Targeting not only their surrounding area, but Namibia as a While these initiatives are helping improve day-to-day lives of whole, these programmes aim to have a broad-based and the beneficiaries, Dawe firmly believes that the most efficient far-reaching impact on Namibian development. As B2Gold is way of ensuring empowerment and future prosperity for the working in an extractive industry, Dawe believes that it is very country is by investing heavily in education, a philosophy that important, once they have reached the end of the life of mine, resonates strongly with B2Gold. “We must be careful not to to leave the area, and the country in a better standing than drive standards of institutions down rather than improving when they arrived. the base level of education,” Dawe remarked. If not “we do no favours and produce half-baked graduates”. Dawe believes With all of their initiatives B2Gold has sought out local that to raise standards and keep them high, it is essential to partners to work closely with, ensuring that they get local start at the primary level. expertise in focusing their initiatives where they are most needed, and to create a sense of ownership, not charity. The company supports existing primary schools, funds libraries and has recently built additional classrooms at Shalom In one such project the company has been supporting the Primary School in the Otjozondjupa region. Last month they health ministry through an American health-focused NGO decided to build their own primary school in Otavi, and also named I-Tech, by funding IT equipment, which allows HIV-AIDS plan to train and fund teachers in the future. •

a publication of the namibian the golden partnership

COMMUNITY WORK Patients line up for treatment at the Mister-Sister mobile clinic on the outskirts of Windhoek. photo: b2gold

INVESTING The B2Gold Environmental Centre, a warm welcome for inquisitive minds. photo: jessica brown

The education centre that they have developed at their However, he cautions the country to steer away from ill- Otjikoto site is a resource to rave about. Combining the conceived attempts of empowering which are bound to result environmental and educational pillars of their CSI, this centre in a host of unintended consequences. hosts children from schools around the country on their farm and conservation area. The mine is thriving and still has 10 years of life – with the possibility of further exploration – but the proposed mining The centre provides world-class opportunities to practically empowerment laws could leave B2Gold in a difficult situation, apply their curriculum making use of exceptional facilities putting its ability to operate in Namibia at risk; 10% of with the help of specialist teachers and impassioned B2Gold Namibia is currently owned by a local empowerment environmentalists. Teachers and pupils are able to stay over group, and the company is very conscious of the problems of at the education centre wilderness camp, allowing for some inequality in Namibia. programmes to span several days.

“We are actively working to tackle these issues and feel that B2Gold has also played a pivotal role in founding the Namibian we are in a good position to help and to facilitate long term, Chamber of Environment, which was launched last month. positive change. What we are wary of is a top down approach The company used its influential position in the industry that lacks sensitivity to the realities of the industry” says to encourage suppliers and other mining companies to join Dawe. them in funding this body. Money is allocated to essential environmental projects across the country as deemed worthy by independent specialists. B2Gold hopes to repeat the positive experience of building a large scale mining operation in Namibia. It is active in Relationship going forward exploration of another gold deposit that is showing great While at present Dawe feels happy with and proud of their potential. standing in Namibia, he is concerned about what the future will be. He believes it is vital that the country embraces “We are hoping to multiply the positive and sustainable empowerment initiatives that will directly tackle the country’s benefits to the nation by expanding our operations in burning issues. He says President Hage Geingob’s Harambee Namibia,” Dawe says. • Prosperity Plan is the right path towards poverty eradication, equitable distribution of wealth and real empowerment.

mining journal Living Our Values

Four CSR focal areas

Environmental Health Education Conservation Livelihoods

B2Gold’s Corporate Social Responsibility Programme aims to promote responsible mining in a sustainable manner. The gold deposit at Otjikoto Mine belongs to the Namibian people and is a finite resource so we aim to invest in projects which have a long term, lasting impact. Our CSR strategy is based on an ongoing assessment of the socio-economic environment in which the mine operates and through regular meetings with stakeholders at local, regional and national level, we are able to understand and focus our support in the most effective manner. The CSR strategic objectives are in line with the Namibian government’s development plans and Vision 2030.

We support projects which aim to lead to long-term impacts that: ▪ contribute to economic upliftment and poverty reduction through skills training and livelihood development; ▪ promote educational opportunities, capacity building, innovation and technical excellence; ▪ promote health and well-being by complementing and supplementing government’s efforts; ▪ empower communities, groups and entrepreneurs to help themselves; ▪ contribute to the sustainable utilisation of Namibia’s renewable natural resources (energy, flora & fauna); ▪ improve environmental management and biodiversity conservation of indigenous ecosystems and endangered species.

early childhood development save the rhino trust building classrooms smes compete office With Lifeline/Childline, B2Gold is B2Gold is contributing N$3 million to The pre-fabricated accommodation in otjiwarongo complementing government efforts Save the Rhino Trust to adequately blocks in the B2Gold construction camp SMEs Compete routinely provides to improve quality early childhood care compensate and equip SRT’s rangers are being converted into classrooms. business advice, mentoring and in kindergartens in our focus towns of to reduce wildlife crime and to ensure Already some of the prefab buildings training to 25 SMEs in Otavi and Otavi and Otjiwarongo. the long-term security of desert have been dismantled, moved and 49 in Otjiwarongo from its B2Gold adapted black rhino in Namibia. reconstructed as classrooms at the sponsored office in Otjiwarongo. Shalom Primary School in Otavi.

peri naua library kayec’s youth the namibian chamber pharmaccess mobile smes compete office This community library in a low-income development programme of environment “mister sister” clinic in otjiwarongo suburb of Otjiwarongo has been in otjiwarongo The Namibian Chamber of Environment This B2Gold sponsored mobile clinic SMEs Compete routinely provides brightly renovated and has got new B2Gold enables the Otjiwarongo KYD is the brainchild of B2Gold and has delivers a full range of primary healthcare business advice, mentoring and bookshelves with lots of new children’s programme to provide after-school been handed over for democratic to patients in informal settlements around books. Young children queue up at the support to help 150 disadvantaged management to the environmental training to 25 SMEs in Otavi Windhoek.and 49The in clinic Otjiwarongo also teaches from parents gate before opening time and primary teens (of which 63% are girls) to stay fraternity. B2Gold has provided about the critical importance of a child’s school teachers borrow books to in school and build their life skills. seeding capital of N$1 million to the its B2Gold sponsored office in early developmentOtjiwarongo. – the first 1,000 days of engage young readers in their classes. NCE. The Company intends to fund the life (from conception to two years of age). NCE on a continuous basis. women in mining

18 women making strides The mining industry in Namibia is actively trying to open up to accommodate more women into its traditionally male dominated ranks. Females make up 40% of students in mining and geology courses in Namibian universities but only 10% of the current mining work force. We spoke to three skilled females working for Namdeb to get their insider view on being female in the business and asked them what advice they would have for young women interested in working in the industry.

mining journal women in mining

“I am helping to create the perception that 19 women can be as successful as men in similar roles.”

Paulina Nehoya

wasP born and bred at the coastal town of Walvis Bay in the Erongo region. I am coming from an education background and obtained my degree in education, Imajoring in accounting at the University of Namibia. Erenstine Endjala I joined the mining industry by chance when Rio Tinto gave 20 E non-industry related individuals the opportunity to become miners. I joined the dynamic team of Namdeb in 2013. I have been in the mining industry for 10 years, three of these at am from Eengolo, Ombalantu, in the Omusati region. I Namdeb, where I am the continuous business improvement studied extractive metallurgy. During my school years, coordinator, responsible for developing a culture of behavioural I took interest in the scientific subjects and I was always strides change, innovation and sustainability amongst our workforce. I keen on trying new things and taking on challenges, so Mining has welcomed me with open arms, given opportunities I applied for a bursary with the company, and have been to grow albeit with the challenge of male dominance. A culture working for nine years. of ‘my brother’s keeper’ is present in the company regardless of gender, creating a positive environment to work in. My job at Namdeb entails ensuring operational efficiency and effectiveness through asset optimisation and continuous Although there are still a relatively small number of women business improvement, as well as to meet production targets working in the mining sector, those that are there are carving and deliver to plan. careers for themselves despite being the minority and can make the best out of such male dominated environments. I review production performance, section status and safety, health and environmental standards. I work to maintain I would advise young women getting into the industry to efficiency and collect and analyse data to process as part of learn to blend in. You will be dealing with operators who have our continuous business improvement, and I also conduct been doing their work for a long time and they do not want to plant inspections. be led by women. It helps to find yourself a support network, whether it’s other women at work with whom you can share Working in a male dominated industry I have had to adapt your experiences, or just someone who knows how the to a new environment so as to keep my focus on the job. I industry works and can give you sound advice. am helping to create the perception that women can be as successful as men in similar roles. There are opportunities Opportunities in the industry are given to those with the skill for a lot of personal growth in a sometimes-demanding and ability regardless of gender, yet it is important to learn environment. Should you be interested in pursuing a career in and understand the industry when entering it. Your attitude the mining industry, then by all means do not be discouraged towards work and people around you will determine how and give up on your dream, gather information on what is successful you become. If you have little respect for other required and take the next required step. For me, the total people, chances are you will struggle. experience has been fun so far. •

a publication of the namibian women in mining

Emmarencia Shanglee

grew up at Walvis Bay. I have always can be applied. The XRT technologyE is a had an inherent interest in science and new method of diamond extraction that is maths and after matric I enrolled for similar to those used in the recycling industry Ia bachelor of science degree at the to distinguish various materials based on University of Namibia. During my first year a combination of density, thickness and “I realised that at Unam I realised how wide the science elemental composition. The XRT machine gender did not and engineering field actually is and can extract diamonds from screened gravel became extremely interested in chemical with throughput rates of 50 tones per hour play a role, your engineering. In 2004 I registered for a and a recovery efficiency of over 95%. While output and your B-Tech degree in chemical engineering this technology is still in the pilot phase it at the Cape Peninsula University of relationship with could lower costs of operation and extend Technology as a Namdeb bursary holder, Namdeb’s life span. people made the which I completed at the end of 2007. difference.” Starting out was definitely a challenge, I started my career as a metallurgist at considering the teams I worked with and had Namdeb the following year. This year marks to lead were men much older than what I the 8th year that I am working for Namdeb. was at the time. I soon realised that gender During this time, the company has provided did not play a role. Your output and your me with great opportunities and exposure relationship with people actually make the and I have been fortunate to occupy challenging roles. difference. In fact, as females we get the same opportunities as males, and it is up to us As project manager, I was responsible for to grab them. At Namdeb, we have a number the design, execution and implementation of females in top positions, which definitely of the XRT pilot plant. Further to this I am serve as inspiration for those starting out. also managing the XRT pilot plant as it forms part of research and development work. The If young women are interested in getting into test work allowed us to generate valuable the industry, I would advise them to go for it! information, which I am currently using to It’s an exciting industry to work for with great identify where in the business this technology opportunities. •

mining journal Untitled-45 1 3/17/16 3:49 PM uranium

ALTERNATIVES Jessica brown Nuclear power is an increasingly affordable option for developing countries. photo: fre sonnerveld 22 A new dawn for Uranium?

IN EARLY 2011, uranium prices were on the rise, the world was becoming more environmentally conscious, greener energy was on everyone’s mind and the global power mix was increasingly focused on nuclear. And then. Fukushima.

On 11 March 2011 an earthquake measuring 9,0 on the Nuclear power had seemed too good to be true, and people Richter scale triggered the tsunami which caused severe had historically been wary of it. The Fukushima disaster damage to four of the reactors at the Fukushima Daiichi plant appeared to legitimise these concerns, and across the world resulting in meltdown and radiation leakage, poisoned water nuclear reactors were shut down on long term outage or set sources, evacuation of the area, on going illness and loss of to be phased out. life and a pivotal public confidence in nuclear. Luckily, from the perspective of uranium suppliers, contracts Prior to the Fukushima disaster Japan was leading the way remained in place and the suppliers kept upholding their in nuclear reliance, which was closely linked to the nation’s contracts. While this has kept mines open, it has however commitment to greener energy and compliance with the resulted in a price slump and in uranium stockpiling. Kyoto protocol. They were producing 30% of their electricity with nuclear power stations and had plans to double this by Today, five years later, the appetite for nuclear power seems 2050. Globally, 14% of the energy mix came from nuclear. to be returning to the global energy mix, and the uranium Once disaster struck nuclear was no longer the wonder child market has a hopeful horizon once again. of the energy sector- and the uranium prices reflected that.

mining journal uranium

23 “The reduction HOLDING ON Langer Heinrich Uranium in cost Mine, coping through is making nuclear tough times. photo: archives power a viable option for countries where high capital costs have historically been a barrier.”

As growth slows in China and Chinese markets trends become Rise of Asian Demand increasingly unpredictable, the world is looking towards India While the fate of China’s growth remains an uncertainty and with hope for the future. India has historically been reliant a concern for commodity suppliers, the Chinese demand for on oil and coal for its energy needs. Until 2009 India was energy is still increasing. unable to trade in nuclear material or plants, as they were not signatories on the nuclear non-proliferation treaty. According to the World Nuclear Association, China’s demand for energy has been growing at more than 8% per year. India has now formerly separated their civilian and military China has 30 nuclear units in operation and has 24 under nuclear operations and is attempting to meet their rapidly construction with 40 more planned. Energy specialist and growing energy demands through partnerships with Russia, journalist Andrew Topf, writes that China looks to spend US$1 in the building of nuclear reactors. Currently less than 4% of trillion to expand its nuclear capacity, with plans to increase India’s energy mix comes from nuclear, but with 21 units in their number of reactors from its current 27 to 110 by 2030. operation and 28 in the pipeline, they hope to increase this This would account for 25% of the world’s nuclear power. figure to 25% by 2050.

In August of 2015 Japan restarted the Sendai reactor, the first The trend for expansion into nuclear power is recurrent across since the Fukushima disaster and is looking to restart around Asia, with Pakistan, Bangladesh, Indonesia, Vietnam, Thailand, 40 of the countries reactors in the months to come. A period Malaysia and the Philippines all upping their investments into of grace has allowed the post-Fukushima fears to subside research and development. somewhat. At present three new plants are also under construction and a further nine are in the planning stage. Closely linked to Asian investments, Russia is redefining its role in Nuclear power, through plant construction and South Korea has 25 units in operation and gets 30% of its development of new nuclear technology. There are currently electricity from nuclear, this is set to expand to 40% by 2030 20 reactors planned for export construction, mostly within when 11 more plants will be in operation. Asia. Domestically, Russia hopes to shift its energy supply to 45-50% nuclear by 2050. •

a publication of the namibian uranium

Competitive Costing Looking up Demand for nuclear power in Asia is on the rise, as the As well as longer term increase in demand for nuclear from reduction in cost is finally making it a viable option for Asia and the environmentally conscious, Goldman Sachs is countries where high capital costs have historically been a predicting a rise in the Uranium price already in the coming barrier. According to Peninsula Energy Limited, more nuclear year, partly due to disruptions in the supply chain in 2015, and power stations are being constructed now than during any in part due to the re-newel of contracts looming in 2017. other time in history. While the existence of long-term contracts led to stockpiling With the drive, technological developments and competition of Uranium, the rapid increase in plants in Asia is helping created with China, Russia and South Korea entering the game combat this. According to Macquarie the Chinese are unable solutions are being found to cut costs, and create accessibility to meet their own uranium demands and are therefore buying for emerging economies. The cost are now similar in up-front up uranium from various global sources, while also investing capital to those of a coal-fired power station says Peninsula in production. Dundee Capital Markets predicted in January CEO Gus Simpson. that uranium demand will grow at around 6% annually until 2020. Cantor-Fitzgerald, a New York based equity-investment The Green Choice company stated that “uranium stockpiles and material from The original boom in use of nuclear power, especially in Japan, mining operations will not be enough to match new demands was in part due to environmental factors, and as fear of a Fukushima-style disaster starts to lessen with time, the green for nuclear fuel” which will in turn drive prices up. argument gains traction again. While the Paris Agreement on climate change did not champion the switch to nuclear as Husab mine near Swakopmund is ramping up its production, much as the uranium industry may have hoped for, longer-term and by the time it reaches full production in 2018 it will make global shifts towards a greener approach and move away from Namibia one of the largest global producers of uranium second fossil fuel reliance are set to help nuclear demand. Goldman only to Kazakhstan. After five hard years slugging in the Sachs Global Metals and Mining report call uranium “the clean, shadow of disaster, price stagnation and public relations melt affordable alternative fuel of the future” for countries looking down, it appears that uranium’s future is starting to brighten. to reduce their carbon footprint. •

RESPONSIBLE URANIUM

Visit our booth at the COM Annual Mining Expo on the 27th & 28th of April

HEAD OFFICE: +264 64 413 450 | MINE SITE: +264 64 410 6200 | FAX: +264 64 410 6299 E-MAIL: [email protected] | CAREERS & SCHOLARSHIPS: [email protected] WEBSITE: www.langerheinrichuranium.com, TENDERS: www.webportunities.net mining and economy Mining

Investments Spur 25 GDP growth Namibia averaged GDP growth of 5.7% in the years 2011-2014, exceeding the ‘BBB’ and ‘BB’ medians. Growth in Namibia’s primary industries, most notable mining, began slowing in 2014, largely as a result of a slowdown in global growth and commodity prices. However, large investments in new mining projects spurred growth in construction and other sectors leading to GDP growth of 6.4% (this is reflective of a significant upward revision that the authorities issued in September). Weakness in the mining sector continued in first half of2015 and other investment has begun to taper as many of the ongoing mining projects near completion. As such, Fitch expects growth to drop to 4.8% this year, before rebounding to slightly above in 2016. Source – Fitch Ratings Agency

Yearly mining stock performance on the stock exchange Counter 31 December 2015 31 December 2016 Closing Price (cents) Closing Price (cents) Anglo American Plc 68.99 215.33 Paladin Energy Limited 3.34 3.29 B2Gold Corporation 16.35 18.43 Bannerman Resources Limited 0.42 0.67 Deep Yellow 0.11 0.13 Eco (Atlantic) Oil and Gas 1.90 1.59 Forsys Metals 1.51 1.89 Giyani Gold Corporation 1.00 - Marenica Energy Limited 1.41 1.89 Source: Namibian Stock Exchange RESPONSIBLE URANIUM Mining Licences granted Year 2010 2011 2012 2013 2014 Mining Licenses 2 4 3 0 3 Exclusive Prospecting Licenses (EPLs) 230 402 258 395 138 Claims registered 133 428 212 331 101 Non-Exclusive Prospecting Licence 439 348 441 465 598

Visit our booth at the COM Annual Mining Expo on the 27th & 28th of April

HEAD OFFICE: +264 64 413 450 | MINE SITE: +264 64 410 6200 | FAX: +264 64 410 6299 a publication of the namibian E-MAIL: [email protected] | CAREERS & SCHOLARSHIPS: [email protected] WEBSITE: www.langerheinrichuranium.com, TENDERS: www.webportunities.net mining and sustainability opinion

Hafeni Hiveluah

consultant

Paradigm shift needed for sustainability of mining

THE mining industry has two main players: the regulatory authority on one end of the spectrum and on the opposite end you have the likes of a venture capitalist, exploration companies, mining companies, traders, brokers, mine chambers and think tanks.

The aim of this opinion piece is to introduce the concept of mineral resource management (MRM) and the modus operandi of some current and previous mining and exploration companies that operated in Namibia.

The mining industry’s current mantra of maximising shareholder value at all costs is unsustainable and needs a new paradigm shift. The way some governments seeks rent from dishing our rights, claims, licenses and the way they monitor the operators has not changed since they became the custodians of the mineral wealth on behalf of their citizens.

An optimal and effective mineral resource management framework is therefore critical to the sustainable exploitation of Namibia’s vast mineral resources, especially in view of the general mantra of most mining houses to maximise shareholder value and the emphasis on a healthy return on investment (ROI), which, if left un-checked, will negatively impact the sustainable extraction and exploitation of Namibia’s mineral resources.

It is in this light that a balance must be maintained between the mining companies’ short term “The mining cash flow, shareholder value creation and the gained benefits to government and its citizens. industry’s All stakeholders should start to emphasise the realisation of the full benefits of the mineral resource for the country. current mantra of maximising Globalisation has brought with it a change in the behavior and profile of the modern-day shareholder investor from a gold fund type investor towards a more speculative investor who, instead of value at all costs looking for a steady and safe dividend stream, is in the market for short term growth in value, manifested in cash earnings and reinvestment. is unsustainable and needs a new It is because of this, that a change needs to be brought about in the way mineral assets are paradigm shift.“ managed and regulated.

Namibia has seen its fair share of this new type of investors originating from within and outside of our borders, where individuals and companies seek to make a quick buck and leave the citizens and the state without benefiting from the wealth hidden in our soil. The fall in commodity prices is also a wakeup call to change in the way mineral assets are managed.

mining journal mining and sustainability

Production volumes were always the main driver at mining social value creation driving the mineral assets development operations when prices were higher, margins high and easily from a purely profit driven one and the abandoning of short accessible deposits were in abundance. term positive cash flow achieved through the reduction of mine development, that inherently come back to haunt the These scenarios led to the maximum extraction of resources, sustainability of the mining operation. and this was not in the best interest of the state and shareholder in the long term. Globally there has already been a move towards the 27 implementation of mineral production modules or MMFs and The good old days are no more and the political circumstances Namibia should not be left behind. and economic policy of the government has also changed, hence the call for a change in the way the mineral assets of This type of harmonised framework to continuously monitor the country are managed. the mining sectors’ production will see a more sustainable exploitation of our resources, possible increase in revenue for The time for an effective and integrated MRM framework both state and operator, longer life of mines, higher permanent can no longer be ignored and should become the rule rather mining employment figures and a possible disappearance than the exception. The current effect of low prices has in of the stop-start mining operation that have plagued the some instances seen the raising of cut-off grades and the Namibian mining landscape. sterilisation of the resource at some mining operations and this is not sustainable. The only trap is that the regulators’ interference in terms of controls, tariffs or taxes should be kept to a minimum; When an effective MRM framework for current and future otherwise as indicated by Adam Smith in the Wealth of Nations operations is set-up, it will require proper due diligence (1776), it might make the populace poorer rather than richer. • from both the operators and regulator, the application of an integrated IT system, organisational development in hafeni hiveluah is the unit leader (mining and minerals business how different functions co-operate, the measurement and unit) at pioneer energy and minerals consulting. tracking of the most influential parameters, the move to

PIONEER ENERGY & MINERALS CONSULTING

YOUR PARTNER IN EXPLORATION PETROLEUM MINING & MINERALS WATER & ENVIRONMENT

We Explore, Discover and Enrich Namibia

Pioneer Energy and Minerals Consulting (PTY) Limited is an exploration services company operating from Windhoek, Namibia. Our focus is the field of Earth Sciences. We deliver quality, innovative and cost effective solutions. We offer consultancy services to the Mineral, Petroleum and Engineering Sectors.

c/o Feld and Riek vd Walt Street, Feld Ecke Building, Tel: +26461 301812 | Fax to e-mail: 088648656 | E mail:[email protected]: www.pioneerenergy.com.na NAMIBIAa publication of the namibian mining and logistics

BRAND NEW The shiny new city of Windhoek MAN buses ready for action. photo: jessica brown

Autohaus Service through excellence. makes inroads

hile not a nation famed for its customer service, in customer industries across the country have been upping their Wgame to compete in an increasingly global market. In operation since 2009, Autohaus Trucks and Bus puts service emphasis on the value of great customer service. This doesn’t just mean a charming sales man who can tell you all that you want to hear until your purchase is complete. This is not to say that the Autohaus sales men are not charming, but the customer care continues years beyond your purchase.

With after sales care, warranty issuing, parts and services, Autohaus is a one-stop shop when it comes to VW and MAN Autohaus Windhoek Gert du Preez: Head of Sales Truck & Bus 081 616 5079 | 061 414 154 bus and truck needs. They also have heavy machinery such as [email protected]

tippers and dump trucks. 9 Birmingam Str Charl Oosthuizen: Sales Consultant Northern Industrial Area Trucks Tel: +264 61 414156, Cell: +264 81 168 0968 Buses Email: [email protected] mining journal mining and logistics

Autohaus dealer principal, Johan Steenkamp believes that The mechanics are well trained to ensure that vehicles are true customer relations come in the form of a marriage, with running smoothly throughout their lifetimes. Staff in the after both parties working well with each other with support and sales service department recieve on-the-job training and are communication over a long time span. also sent to SA fore courses.

Autohaus has recently embarked on such a marriage with the Autohaus has around 34 staff at present and this number is City of Windhoek, being the supplier of the slick new City of growing with the business. 29 Windhoek bus fleet. The dealer so far provided the city with 26 Eager to branch into new partnerships across the country and MAN buses and this number well equipped to provide will grow to around 120 services throughout for public transport over Namibia, Autohaus has the coming months. With recently been bought depots around the country, out by the M&Z group, and many years of closely expanding their reach. working with long haulage and construction companies Through M&Z garages, Autohaus hopes to enter after sales services can be more such marriages in provided from their centre years to come. Long lasting in the northern industrial relationships with clients area of Windhoek as well are very important to as at Ondangwa and Walvis Autohaus. Bay.

The company invests in its team to ensure that staff members From these centres staff travel out to customers throughout have all the necessary skills to work safely and to a high the country and offer a 24-hour service 365 days a year – for standard, in its maintenance workshops and on the road. sales, services, and parts. As Steenkamp proudly states, “we are always there!” •

Service through excellence.

Autohaus Windhoek Gert du Preez: Head of Sales Truck & Bus 081 616 5079 | 061 414 154 [email protected]

9 Birmingam Str Charl Oosthuizen: Sales Consultant Northern Industrial Area Trucks Tel: +264 61 414156, Cell: +264 81 168 0968 Buses Email: [email protected]

unlocking GROWTH ON THE railways

mining journal 33

LINED UP Repairs are taking place from Tsumeb to Arandis. photo: d&m rail construction

When Dundee Precious Metals set up their N$2,7 billion sulphuric acid plant to reduce sulphuric emissions from copper smelting at Tsumeb they thought they were solving a problem rather than highlighting one.

It made perfect sense to use waste gases from estimate to be worth about N$1 billion. The locomotives the smelting process to create a product which transport acid safely from Tsumeb to Arandis following a they could in turn sell for use in some of Namibia’s 10-year rail transport agreement between TransNamib and other large mines in the leaching of sulphide ores. Dundee Precious Metals Tsumeb. However, Dundee’s plans hit a logistical roadblock which brought to light some of the limitations in TransNamib has had a number of incidents which brought Namibia’s transport sector. safety concerns to the fore. In July last year, two locomotives derailed, one carrying 20 wagons of acid spilling about 25 The company found that operational and technical issues 000 litres of acid near Walvis Bay. In December 2012, two at TransNamib were limiting their ability to transport bulk- locomotives carrying manganese derailed in a similar location mining cargo, such as acid. The company was obviously in an accident estimated to have cost TransNamib over reluctant to transport such a dangerous product on Namibia’s N$65 million. already overstretched road network, which has alarmingly frequent accidents. Upgrades are needed on some of the lines in Namibia, Möller says. This investment will enable safer transporting, both “To breach that with road is a no-go” says Dawie Möller of in terms of moving hazardous goods and keeping track of D&M Rail Construction. D&M played a big role in Dundee’s valuable commodities such as copper which are easy targets mission as they were contracted by government to ‘rescue’ for theft. the operation by doing temporary repairs to the rail line to Arandis as well as the longer term upgrades, using Namibian As Namibia is a vast country with operations all over the staff. This is a good example of a public private partnership country, efficient, reliable and constant transportation is that offers the potential for further economic growth. vital and rail investments and upgrades will unlock growth opportunities while also taking pressure off the road In September last year TransNamib agreed to purchase six networks and providing safe transport options for bulk or new locomotives from General Electric (GE), in a deal sources hazardous loads. •

a publication of the namibian railways

“Railways are very prominent in NDP4 and government is committed to 34 improving the rail infrastructure.” ON THE JOB D&M have a work force nearing 500 on their rail construction. photo: d&m rail construction

Private sector companies can also play a pivotal role here as Stone quarry, Henning Crushers made use of this government they are in a better position to respond quickly to demands investment to streamline their distribution process. They unhindered by government regulations. delivered stone products to northern Namibia and used around 30 trucks per day to move their product from their D&M is constructing sidings to link mines and processing base at Tsumeb. Dundee Precious Metals built railway sidings plants to the main rail lines. It links with the national track at their mine site as well as at Ondangwa. Möller praised the which can then be operated by TransNamib trains. A typical initiative of the government and the healthy partnership it is train load can carry about 1 000 tonnes while a truck can fostering with the private sector. Möller added that although average at about 32 tonnes. there is work to be done on a number of the lines, the wheels are in motion. Railways are very prominent in NDP4 and In 2005, government invested in a new railway line to government is committed to improving the rail infrastructure Ondangwa which was extended up to Oshikango in 2012. to enable future partnerships and success stories. •

D&M Rail: Keeping Namibia on Track 35 John Ludwig Street, Klein Windhoek PO Box 830, Windhoek, • Construction • Loading, securing and offloading NAMIBIA • Relaying of railway lines of bulk rail equipment Tel: +264 61 402 371 • Maintenance • Railway engineering Fax: +264 61 402 480 • Manufacturing of concrete panels • Supply of material and Email: [email protected] for ballast-less track rolling stock Web: www.dmrail.com

Projects:

1995 - 2005 2007 - 2011 2012 - 2013 2013 - 2015

1995: On-going: Maintenance of 2007: offloading of 25,000 ton of rail for 2012: Manufacturing of 7,400 *6 m 2013 till date: rehabilitation and Namibia Ports Authority and Rössing Northern Railway Extension concrete panels for ballast-less track; upgrade 392 km of railway line between Uranium Mine construction of 63 km permanent Kranzberg and Tsumeb 2010: Construct rail siding at Ohorongo way from Ondangwa to Oshikango; 2004: Subcontractor for building of Cement emergency repairs between Kranzberg 2015: Construct new siding for Henning the 257 km Northern Rail Extension and Otjiwarongo Crusher at respectively Ondangwa and between Tsumeb and Ondangwa 2011: Offloading 13,200 ton of rail at Tsumeb, upgrade various private rail Ondangwa & Haalenberg; 2013: Construct 20 km of conventional sidings for Fuel companies, relocate 2005: Construction of permanent way track between Aus and Lüderitz Swakopmund station, major upgrading between Aus and Lüderitz work at Namport .

mining journal JOHANNESBURG OFFICES health and safety The Basil Read Campus 7 Romeo Street Hughes, Boksburg Health T: +27 11 418 6300 and Safety F: +27 11 418 6333 Namibia T: +264 67 277 040/41 a joint approach orldwide, issues of health and safety plague 35 the mining industry. All too often horror Wstories of mining disasters are plastered across the international media, with tales of gross Intelligent Mining misconduct and huge loss of life. In November last year reports came from Myanmar, where for a better future at least 113 people were killed at a jade mine when a rubble mountain collapsed, and who could forget the huge loss of life in the Turkish coal mining incident in 2014 where over 300 people were killed? These are just two examples of ongoing mining related incidents occurring throughout the world on a regular basis.

In Namibia, however, we can proudly boast a very different story. The Chamber of Mines, working closely with the major mining companies has consistently promoted socially conscious mining practice, with emphasis on miners’ health and safety. The number of fatalities from the Namibian mining industry has been steadily decreasing and the numbers of days lost to injuries have also decreased from 87 in 2012 to 65 in 2014. In 2012, five lives were lost due to mining related incidents, two perished in 2013 and last year only one person died as a result of mining. However, even these comparatively low figures are too high, and the Chamber of Mines as well as the major mining companies are striving to achieve zero mining related fatalities.

Notably, while mining corporations are an easy figure to blame, not all mining accidents are put down to company negligence, but rather in some cases to unsafe behaviour of individuals on the site. Due to this, mining companies in Namibia have introduced dual responsibility policies as part of MINING: their health and safety procedures. They expect their staff to uphold the same safety standards as themselves, creating a community-wide responsibility for mining safety.

Less economically developed countries are often easy Surface Mining targets for exploitation as the socio-economic standing of the workers makes them so desperate for work that they Drilling & Blasting. will put up with unsafe, poor conditions. As well as this, Thin, thick & multiple seam mining. corruption within the governments of developing countries Mine spoils rehabilitation. makes it easy for laws and best practice procedures to be Bulk earthmoving. flouted. The commitment to safety standards in Namibia and Hard rock selective mining the nature of joint responsibility that these standards take, highlight Namibia’s progress. A mutual commitment from the Chamber of Mines as well as the mining companies, and with Other Mining related services the Mineworkers Union of Namibia working as a watchdog, the mining sector has developed a well-established culture of Design • Planning • Optimization • Surveying safety and security. •

www.basilread.co.za a publication of the namibian mining and equity empowerment

Jessica brown

New Equitable Economic Empowerment Framework A mining sector viewpoint

mining journal mining and equity empowerment

THE stark reality is that Namibia has a pandemic of inequality. The Gini coefficient, which measures income distribution within a country, paints a stark picture with Namibia having one of the worst global inequality figures with a Coefficient of 61,3. A country, in which every person received the same income, would have a Gini index of 0; a country with a completely unequal distribution, 37 where one person got all of the income and everyone else earned nothing, would have an index of 100. Norway, for example, one of the most equal countries in the world, has a Gini Coefficient of 26,8.

According to the World Bank (2010), the bottom 10% of Namibia’s income spectrum have access to only 1,5% of the nation's wealth, while the top 10% have access to 51,8% of the wealth. These inequalities are due in part to a number of historical factors including the genocide of the Herero and Nama populations during the German colonization, the apartheid regime imposed by the South African government, the creation of bantustans, contract labour programmes and the denial of quality education to Blacks.

Undeniably, something needs to be done. Poverty alleviation is at the heart of the government's mandate, and it is from this perspective that the proposed New Equitable Economic Empowerment Framework (NEEEF) has stemmed.

The NEEEF has received plenty of media coverage and has been the topic of discussion on public and private forums ranging from angry attacks to vehement defence. There are a number of reasons that stakeholders – on both sides of the aisle – are suspicious of the framework, but there are also positives to highlight and productive suggestions that can be made in going forward.

The framework

The NEEEF’s aim is to make Namibia more socially just by addressing ‘disparities occasioned by class, gender and generational relationships’. Emphasis is put on creating promising opportunities for economic engagement for ‘previously disadvantaged persons’ which, by NEEEFs definition, includes ‘racially disadvantaged persons, women, and persons with any disability as defined in the National Disability Council Act 2004.’

The NEEEF framework consists of six pillars. The first three are mandatory: ownership, management control and employment equity, human resources and skills development. The second three: entrepreneurship, development and marketing; corporate social responsibilities and value addition. Technology and innovation are not mandatory but all six are subject to scoring and penalties for low scores. •

IN THE RED This map shows the most recently available Gini Index for each country in that data set.

<30 30-35 35-40 40-45 45-50 50-55 55-60

>60

a publication of the namibian mining and equity empowerment

Concerns off and many local companies will be unable to operate resulting in less money in the Namibian The need for empowerment is undeniable, economy. Perhaps more will have a slice of however, over-zealous government involvement the proverbial pie, but the pie itself will be can easily cause unease. One aspect of Namibia’s significantly smaller. inequality is that there is a small percentage of well-connected people who have benefited 38 Galloway noted that even just the tabling of unduly since independence. the NEEEF for discussion resulted in Namibia dropping several places in the Fraser Institutes There is an undeniable crony culture among Policy Perception Index, which ranks attractive Namibia’s elite; hence the existence of our 6 jurisdictions for investment. embarrassing collection of ‘tenderpreneurs’. NEEEF A similar initiative in South Africa, the Black framework Craig Thomas, CEO of Weatherly Mining Namibia Economic Empowerment programme, was so pillars said he hopes that the government will act with rife with corruption and top-level favouritism care, and that depending on how the NEEEF is enriching the few that a ‘broad-based’ clause had handled going forward it could be “devastating, to be included to reduce this. or it could only be a marginal deterrent, but, it is coming at a time when [due to the current The notion of broad-based is key, and this is negative climate in the mining industry] what is lacking in the NEEEF framework, which 1-3 other destinations for investment are trying is a concern. The introduction of conditions that to compete.” ensure that it is communities and collectives who benefit from these changes – and not individuals Mark Dawe, MD of B2Gold, commented that he – will make a policy like NEEEF more palatable to mandatory is doubtful that the capital to buy up 25% of a critical public. businesses is available in the country. B2Gold alone is a multi-billion dollar operation, and he is Most of the concerns about the NEEEF are concerned about what the impact could be going centred on the ownership (mandatory 25% forward for the company’s prospects and in turn ownership of companies by previously the for their staff and the communities that they disadvantaged) and the management (50% ownership are already actively supporting. The NEEEF of top management must be previously one-size fits all approach could end up being disadvantaged) pillars. destructive to already well-run private sector empowerment initiatives. Financial industry veteran, Steve Galloway has voiced his concern with the framework partly Also essential, should the NEEEF come to due to the fact that the ownership pillar will fruition in some form or another, there is the “create second-class shares” which can only be need for an end date. People who are ‘previously traded to others of ‘previously disadvantaged’ disadvantaged’ and benefit from this scheme, or status. This offers no security to companies management one similar to it, need to reach a point in which as the 25% becomes un-financeable. What control and they ‘graduate’ out of this bracket. The use of also occurred in south Africa were a number of employment the term as a criterion for participation should equity bogus transactions which had the appearance also be used with caution, those benefitting of compliance but was in fact simply token should be both currently and previously empowerment that had no real impact on those disadvantaged rather than just the latter. most in need, which is exactly what Namibia wants to avoid. Along a similar theme, the forced Government failures placement of ‘empowerment’ management in South Africa led to the creation of token Hostility from the private sector towards the positions for staff in which they had no real human NEEEF and similar schemes, is largely due to resources power or influence and were not properly and skills the fact the government has been far from immersed into the companies. development impressive in its spending of existing tax revenue. There is an inherent lack of planning, Galloway adds that a draconian approach, in prioritisation, efficiency and understanding when which companies are forced to comply, will have it comes to the use of government funds for the an opposite effect, creating a hostile business fundamentals of income redistribution. Glaring environment from which investors will be scared shortcomings in affordable housing, energy and •

mining journal

Full page advert mining and equity empowerment

water infrastructure, decent healthcare facilities Another model that has had success in west and standards of education put little faith in the Africa are community development agreements, government’s ability to run programmes and a policy in which mining licences are only granted make good use of funds. once an agreement ensuring social and economic benefits to the community has been reached. Funding shortages are not the country’s problem; Namibia is a middle-income nation now with an Peter Leon, head of Africa Mining and Energy 41 incredibly small population by world standards. Projects, explains that agreements “must provide The issue is that “Trophy Projects” are prioritised for community participation in the planning, about fundamental investments. Affordable implementation, management and monitoring houses are forfeited for a new parliament, of activities carried out under that agreement.” schools for the national airline, water solutions Agreements are frequently reviewed to address for inflated government salaries and healthcare 4-6 challenges and concerns. This allows mutual for state houses and other symbols of pomp and understandings of expectations to be developed status. It is after this frivolous spending that the and specific needs can be addressed in a tailor- private sector is hounded and their contributions NOT made manner. demanded due to the failings of the government mandatory to prioritise. While these initiatives can offer immediate There is a basic lack of understanding in the solutions to the issue of inequality, for long- importance of a business friendly environment, term change huge investments in education from which there will be more money for the and access to finance are necessary. Namibia is government to reap through business taxation. struggling with an education crisis and this in As it stands, government sees business as a itself is perpetuating inequality. entrepreneurship, money pot that they can mine from, rather than development and invest in. marketing A programme in which foreign teachers are invited to live and work in Namibia is desperately Going forward needed, which would in one generation increase the capacity of the nation. Pride must be set Criticism aside, proactive policies are needed aside in admitting we simply do not have the going forward and the NEEEF certainly offers a capacity at home when it comes to the ability starting point. Government threats and penalties and the number of teachers needed. leave a bad taste in the mouth of business and corporate social responsibilities can lead to slapdash and superficial solutions to and value Joint partnerships in which companies simply tick boxes. A more positive approach could addition support the government in improving school be to encourage, rather than demand. Policies infrastructure and teacher housing would be a that offer incentives, partnerships and tax good place to start. breaks to companies with a positive corporate culture or empowerment and local engagement Partnerships which both makes funding have great chances of success without available at affordable rates and mentors young exploitation. entrepreneurs, would also be a starting point for Technology and more inclusions in the economy from those who As previously mentioned, the notion of innovation are previously disadvantaged. empowerment being broad-based is key. One such approach which has been successful in There are a number of positive approaches that the mining sector especially, is to encourage can be taken to address inequality. Caution employee ownership schemes. These generally all six are work through the creation of a trust which holds subject to must, however, be taken in choosing the method company shares for the benefit of the workforce scoring and for this change. Too heavy a hand could have a or the mining community. The shares are held penalties detrimental effect on the vulnerable in society until maturity, after which trust members for low and could negatively impact the great strides receive dividends in the traditional manner or scores that have been made thus far. they can be pooled for community projects. All members have equal benefits and the staff or The voices of concern are not of the few trying communities have a genuine sense of inclusion to deny the problem; they are of the many who and ownership in the business. doubt the methodology. •

a publication of the namibian Carrying the Spirit of Harambee

The Board, Management and staff of TransNamib Holdings wish to congratulate His Excellency, Dr. Hage Geingob, President of the Republic of Namibia and his Cabinet on the excellent Harambee Prosperity Plan delivered to ALL Namibians through the State of the Nation Address [SONA].

We, as TransNamib, pledge our uncompromising support and commitment to the President for us as a Namibian family to discharge the Harambee Prosperity Plan with distinction. Nobody should feel left out from the Namibian-House.

President Hage Geingob

Bahnhof Street / Tel: +264 61 298 1111 / Fax: +264 61 298 2227 / Private bag 13204, Windhoek / Website: www.transnamib.com.na mining expo

Mining Expo goes from Strength to Strength 43

he Namibian Chamber of Mines Expo and Conference has been growing in numbers and prestige over the past six years. Previous held at the Safari Court Hotel, this year the expo has Participation Numbers T at Namibian Chamber of Mines Expo been moved to the Windhoek Show Grounds in order to accommodate Since 2010 all the exhibitors and stands. 200 Stands used

The conference this year is themed ‘ The Namibian Mining Industry- Weathering the Storm’ and will be comprised of a wide range of talks and discussions dealing with the global commodity slump and the adverse conditions caused by this. 150

Despite slumps in the industry the number of exhibitors and participants in the Exhibitors expo has risen significantly over the years. The Namibian mining Expo offers great value for money at a time where mining companies are tightening their belts. The 100 South African Mining Indaba had a 10% drop in attendance this year from 2015 as many companies were scared off by the vast attendance costs.

The Namibian Chamber of Mines Expo and Conference is free to the public and all 50 stakeholders are invited to participate. • 2010 2011 2013 2015 2016

Find us at the Mining Expo on the 27 - 28 April 2016

Shell Licensee mining and logistics

THE LONG HAUL photo: fp du toit transport

FP du Toit Home-Grown Quality and Service

Quality, reliability, service and in modern and fast-working technologies and management styles to handle stock safely and rapidly. From barcoding, to relationships are the passions tracking and satellite monitoring – your products and packages are well looked after. behind the huge success and One of the unique features that the company offers clients, exceptional track record of this is in-house customs clearing. In order to expedite import- export activities and to cut out wasteful delays, it has its own home-grown logistics giant. accredited in-house customs clearing services, in line with the systems that vary from country to country within SADC. They have a permanent presence of Namibian customs officer STARTING out as a small Northern Cape family business in in their Windhoek distribution centre. FP du Toit Transport is 1968, FP du Toit Transport has grown into one of southern constantly re-assessing its methods and researching ways to Africa’s major transport and freight companies. However, become more efficient. almost 50 years later family is still a central tenet at FP du Toit.

Apart from cross-border freight handling, FP du Toit Transport The FP du Toit Transport extended family now comprises has been working closely with Namibia’s mining industry for nearly 500 members, working out of nine depots across many years. It is a haulage partner for general goods and Namibia, South Africa and seven more SADC countries. It has a its abnormal loads also offer forklift operations and crane fleet of more than a 100 vehicles on the road and subcontract services. The company has specialised vehicles such as side ‘in air’, and ‘on sea’ services to complete the package. loaders and reach stackers to enable easy transport and depositing of bulk goods. In an increasingly globalised world time is of the essence and being ‘out of stock’ is unacceptable. FP du Toit’s has invested

mining journal “You don’t live as long as we have in this business by cutting corners.“

FP du Toit Transport acquired Wesbank in 2015 – two local companies with strong family values and a shared commitment to Namibia. Wesbank had historically worked closely with the mines, and FP du Toit Transport happily maintained and further forged this relationship.

Abnormal load handling, a FP du Toit Transport speciality, is a complicated business. Safety and precision are key to ensure no damage is done to the roads, vehicles or personnel. Abnormal loads exceeding a height of 5,5 metres and width of 4,5 metres legally require a police escort through towns and busy areas. Further, there are strict time restrictions on when these loads can use the roads. For example, they are not allowed on the roads on weekends, when school terms open or close or during the whole month of December!

FP du Toit is proud of the fact that it is both efficient and compliant, arranging all permits, providing normal vehicle escorts and doing things by the book. The company proudly states, “you don’t live as long as we have in business by cutting corners.” For all aspects of the job, staff training and safety is vital.

FP du Toit Transport invests heavily into its staff. “The people are what make us” is the company’s belief and its low staff turnover reflects this. The drivers are experienced and the staff receive comprehensive training on the use of vehicles from forklifts to 220 tone cranes and all in between. Its fleet and specialised equipment are world-class and get regularly replaced. The Transporter prides itself in only using state-of-the-art German and American engineering to ensure reliability and excellent service. Policies and procedures are monitored constantly and nothing is done in a rushed and rash manner. The company’s safety record is impeccable. • mining and tech

DONE Processed copper being labeled for transport tracking. photo: simpology

namibian TECH for namibian GROWTH

“Namibia is at the bottom of the global value chain because it exports valuable raw materials and then it imports the value-added products from its own raw materials.” These were the words of Calle Schlettwein when addressing the chamber of commerce and industry in 2014 as then trade minister.

Last month, Oluranti Doherty, manger for project and export Innovative local masterminds, Simpology is working closely development finance at the Africa Export-Import Bank with mines to provide solutions to enable manufacturing echoed Schlettwein’s sentiment and emphasised the through engineering and IT. The high tech problem solvers importance of African businesses processing their raw make use of manufacturing execution systems (MES) to track materials to place themselves higher in the supply chain – and document the transformation of raw materials to finished thereby increasing the value of products and income and goods. Apart from being a serious investment, technology creating jobs and skilled labour. of this nature is a game changer for Namibia in its mission to become a producer further up the value chain. At present, Namibia mainly exports its commodities in raw form to be processed outside the country. Former Working in real time, these systems are able to control and colonies often find themselves in a cycle of dependency, report back on multiple elements of the production process however Namibia is attempting to change this by increasing from personnel, to machinery to tracking the final product manufacturing and creating locally made products. during transportation.

mining journal mining and tech

Simpology works on reducing inefficiencies, streamlining the This is all the more exciting to rave about as Simpology is a process, maintaining safety and ensuring that the skilled and Namibian company that was born out of the Namibian mining experienced people in the sector are not tied up with number- industry and is actively working in an area so central to the crunching and monitoring that could be done in a fraction of health and prospects of the Namibian economy. the time by their software. Sympology’s work is exactly what the industrialisation and With commodity prices in a slump, mining models are changing trade ministry calls for in its ‘Growth at Home’ strategy which 47 in response, and mines that are running on smaller margins details the need for acceleration of Namibia’s manufacturing with greater efficiency are now able to limit their losses and capacity to “deliver equitable benefits to the whole society remain competitive, with the use of these systems. and reduce reliance on primary production and dependence on exhaustible commodities and fluctuations The Tschudi Copper Mine near Tsumeb in demand and prices.” The strategy is such an example. Due to its compact further states “There is a need to build on structure and the close monitoring of existing productive capacity and skills, but operations, losses can be avoided and also to initiate new enterprises production output optimised from the ore where necessary.” extraction to the shipping and trading of the finished product. During his time as Prime Minister, Hage Geingob lamented the fact that Namibia The work done by Simpology is world- continued “to export seemingly ad class. The company has been approached infinitum resources such as dimension by US company Strata, a global leader in stones, manganese, fluorspar, uranium, mining safety solutions with a request for the development gold, zinc, lead, copper, diamonds, and others in either the of software and they have also been recognised by the most basic forms.” The advanced technological services of Millennium Challenge Account and development agency Simpology offer a streamlined, home-gown solution that has Oxford Policy Management as leaders in their field. the potential for growth at a national level. •

Do you want to find out how we can optimise your production processes?

When? Tracking & Tracing

How? What? Specification Management Execution Management MES

Who? How? Resource Management Data acquisition, Analysis

Contact our experts to find out more

Phone:a publication +264 of the 61 namibian 401970 Email: [email protected] Web: www.simpology.com.na FRONT END MINING REACTORS & SERVICES BACK END RENEWABLE ENERGIES ENGINEERING & PROJECTS AREVA’s presence on five continents ensures a long-term supply of uranium world-wide for the purpose of electricity production.

The group has a diverse portfolio of mining activities

Exploration programs in Kazakhstan, Canada, Mongolia, Gabon, Australia and Gabon.

Projects Imouraren in Niger; Trekkopje mine in Namibia under Care and Maintenance since July 2013. Secure access to water via the Erongo desalination plant to mines and communities.

Operating mines in Niger (Somaïr & Cominak), Canada (McArthur River and Cigar Lake operated by Cameco, McClean Lake processing mill operated by AREVA; Kazakhstan (Katco).

Remediated sites in Gabon, France, Canada and the United-States.

AREVA Resources Namibia DF Malherbe Building, 25 Mandume Ya Ndemufayo Street, Swakopmund Tel: +264 (0)64 415 720 – Fax: +264 (0)64 415 721

www.areva.com Energy is our future, don’t waste it!

Ropetech cc Co. Reg. 2004/1346

6, Nasmith Street Windhoek, P.O.Box 80812, Olympia Tel: 00 264 61 304 191, Fax: 00 264 61 306 591 E-mail [email protected]

Company profile, history and expertise

Ropetech was established in 2004 as a 100% Namibian Assessors Lifting machine inspectors. Our workshop company to fill a niche in the lifting equipment market, staff has more than 25 years expertise in assembling and to manufacture webbing slings and transport tie downs. manufacture of webbing, steel wire rope and chain slings. We see ourselves as leaders in our field, and render a The company has since expanded to specialize in lifting professional service as well as a safe quality product in equipment, load testing of lifting tackle,training individuals Namibia. We are proud to say that all products from our to become lifting machine operators and supply relevant suppliers conform to ISO, BS and/or SANS. We are TESEF products. We strive towards a safer work environment and BEE compliant. and workforce thus stopping the influx of sub-standard products to flood our country and local marketplaces. The demand for certification of products has risen to the Our product range comprises mainly of certified steel wire extent that we manufacture Webbing Slings to SANS ropes, chain, webbing products for lifting and pulling as 94/1 and each sling has its unique serial number and well as a full range of federal specification fittings, SANS certification. compliant chain and lever blocks as well as all types of natural and synthetic ropes including the latest in Kevlar As you can see we are proactive in our approach to safe Technology. lifting procedures in Namibia and can proudly say that we are the most experienced safe lifting professionals in Our current staff has more than 55 years combined Namibia and registered with the department of labour as expertise in lifting equipment and tertiary qualifications an Authorised Inspection Authority. includes Civil Engineering, Business Management, F.Bredenkamp & T.Willemse (members) the namibian chamber of environment

FRONT END MINING REACTORS & SERVICES BACK END RENEWABLE ENERGIES ENGINEERING & PROJECTS The Namibian Chamber AREVA’s presence on five continents ensures a long-term supply of uranium world-wide for the purpose of electricity production. of Environment Leveraging non-conventional funding 49 The group has a diverse portfolio of mining activities for an innovative organisation

Exploration programs in Kazakhstan, Canada, Mongolia, Gabon, Australia and Gabon. PROVIDING a service similar to that of the chamber of The NCE has made clever partnerships with the mining Projects Imouraren in Niger; Trekkopje mine in Namibia under Care mines or chamber of commerce, the recently launched industry to leverage new funding sources from companies and Maintenance since July 2013. Secure access to water via the Namibian Chamber of Environment (NCE) is a first of that are seeking to improve their CSR. Erongo desalination plant to mines and communities. its kind in the Namibian environmental sector. Operating mines in Niger (Somaïr & Cominak), Canada (McArthur “We are not trying to redirect funding from other projects River and Cigar Lake operated by Cameco, McClean Lake Founded by the Otjikoto Environment and Education Trust, and are not competing on fundraising in the traditional processing mill operated by AREVA; Kazakhstan (Katco). the Namibian Environmental and Wildlife Society and areas,” Brown said. the Sustainable Solutions Trust, the NCE is underpinned Remediated sites in Gabon, France, Canada and the United-States. by a coalition of like-minded pioneering organisations Industry realises that simply being compliant is no longer with a joint vision of preserving and advancing Namibia’s a measure of true responsibility and the NCE is providing a environmental standing. partnership that allows for far-sighted and real involvement AREVA Resources Namibia and commitment. DF Malherbe Building, 25 Mandume Ya Ndemufayo Street, Swakopmund Tel: +264 (0)64 415 720 – Fax: +264 (0)64 415 721 Not competing with its members, the NCE is an umbrella organisation that This position of www.areva.com provides a platform leverage is in part Energy is our future, don’t waste it! for stakeholders in gained through the environment the involvement sector to come of B2Gold in the together. Anyone funding agreement. can apply for Viewing the membership and will chamber as an ideal benefit from the use of their own NCE’s support and CSR funds, the ability to streamline. company is inviting their suppliers and The chamber will be other industry a mouthpiece for stakeholders the sector, lobbying to join them in government and sustained support other institutions on of the Chamber. By its behalf, while improving inter-sector communications for supporting the NCE, the extractive mining industry is able increased unity and efficiency. Though highly specialised, to actively help re-invest into environmental preservation, the sector has previously been somewhat dispersed and understanding and regeneration. removed from the mainstream of societal activities and more often than not typified by a lack of financial resources. Although funded by corporates, the chamber remains an independent and impartial body which has advisory A truly unique feature of the new chamber is its and specialist groups working to achieve the Chamber’s unconventional funding method. objective which, inter alia, include the conservation of the natural environment, the protection of plants, wildlife, Spokesperson for the Sustainable Solutions Trust, Chris endangered species and the atmosphere, promotion of Brown commented, “funding for projects has normally come best practice, prevention of degradation and provision of from foreign donors and this has dried up dramatically. The support and advice in environmental matters. • private sector in Namibia has in the past provided very little funding to the environmental NGO sector, and none on a experiencing it... young students on a guided hike at the sustained basis”. otjikoto environment and education centre. photo: b2gold

a publication of the namibian small-scale mining

hammering away NDAMA NAKASHOLE Small Scale Miners at work. photo: erik jonsson meetingpoints mining/sgu

50 the daily bread of erongo’s small- scale miners

ERONGO region has an astounding number of small-miners – 2 000 in total. Some are waking up in the wee hours of the morning to go out in the field to dig for semi-precious stones. Some walk several kilometres to camps they have set up in the bush and stay out almost for the entire day. Others go out to markets such as the famous crystal market between Swakopmund and Usakos to sell their gemstones.

Erongo Regional Small-Scale Miners Association board member mining and marketing sites remains a challenge as miners Karl Gurirab said in an interview that those at markets sell need modern techniques to be able to extract more minerals. gemstones from sunrise to sunset seven days a week. “Gone are the days when we used hammers and chisels as Because of the small-miners’ hard work, these gemstones minerals at the surface have been depleted in most areas and benefit about 10 000 people at household level in terms of it keeps getting harder and harder every day,” he stressed. income provision, according to Gurirab. Another major challenge that these small-scale miners face, is “We have 11 active groups (10 cooperatives and one close a lack of mining equipment, Gurirab says. corporation), although there are still many informal groups mining in the region,” he said. He emphasised that the few mining equipment provided by the association is not enough to cater for many of the region’s Gurirab said that although small-scale miners are determined small-scale miners. and hardworking, access to sufficient clean water at some

mining journal small-scale mining

“The few equipment currently available, are old and worn out, He further said that he hopes one day bigger companies and are at most times faulty, causing some members to revert as well as the government will be able to help small-scale to ineffective traditional ways of hammers and chisels,” he miners with mining equipment to enable miners to work more said. effectively.

Gurirab, who is also the former chairperson of the Uiba-Oas Rafael Tueaiwa, a small-scale miner at Gobo-Gobos, says he Small Miners Cooperative, revealed that access to potential hopes government intervenes to come to their rescue before deposits in private land is another challenge for small-scale the death of this business that supports so many families. miners as landowners do not easily give them access to mine Tueaiwa further said that most small-scale miners are on their farms. currently doing nothing as the equipment is not working and the ones received from the government in the past are faulty. “Rehabilitating a mining site to its natural form is a costly exercise and neither the small-scale miners nor the association “We will try to soldier on because small-scale mining puts bread has the funds and necessary equipment to execute such on our families’ table,” he said. • operations,” he said.

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QUALITY CHECKS GCS have 70 professional staff providing services throughout mine life cycles. Seen here working on site. photo: gcs water and environment consultants 52 managing water challenges In terms of environmental threats, Namibia’s water and electricity crisises presents the biggest concern, says water and environmental consultants GCS. Both of these resources are crucial for development. Mining has historically received a bad rap for overuse and polluting of water.

mining journal mining and water

roviding services through the whole mine life cycle from Apart from water supply investigations and groundwater exploration to final mine closure, GCS is contracted by reserve determinations, the company also provides services Pa number of Namibian mines to undertake EIAs with for aquifer protection and remediation as well as groundwater the required specialist studies and provide independent level monitoring. Services also include water footprinting, consultancy services in ground and surface water, which provides solutions to ecologically minded companies to geotechnical, environmental engineering, GIS, water use reduce their water footprint. licensing and environmental legal services. GCS feels it is essential to develop processes which serve In operation since 1987 and with offices in Namibia since to protect the biophysical and social environment. Building 2009, GCS assists new mines (such as green fields mines) strong, constructive and responsive relationships with to obtain the required regulatory approval to mine. In the surrounding society is essential for the successful addition, GCS provides specialist studies such as surface and management of impacts. groundwater studies, and geotechnical and geochemical studies for waste classification. Despite the low commodity prices and the associated reduction in profits, environmental services have been very Other specialist services include ground and surface consistent. This is because mining houses are obligated water modelling and monitoring, GIS, biodiversity and soil by law (both nationally and internationally) to continue assessments. GCS also provides social services such as SIAs, undertaking environmental work that ensures environmental socio-economic assessments and social and labour plans. sustainability. Non-compliance could result in severe penalties. Having worked with Namdeb, Kombat, Namibia Custom Smelters, Rössing Uranium, Skorpion Zinc, Otjozondu and Mines play a major role in Namibia's development not only by Dundee Precious Metals, CGS is well versed in the challenges the revenue they generate for the country but also in terms and unique requirements that mines have. They have also of infrastructure and social development. worked with most major mines throughout Africa with big industry names including AngloGold, Vendanta and Exxaro. Mines are increasingly aware of the “social licence to mine” which involves the mine being part of the community in which Due to Namibia’s arid setting and water limitations, GCS' water it operates and playing a major role in the development of the division is actively involved in helping clients to use water community and GCS is proud and happy to play its part in this. effectively and finding the best solutions with the limited •

resources they have. Contact us:

94 Nelson Mandela Avenue, Email: [email protected] Klein Windhoek Website Address: www.gcs-na.biz Here are a few services provided by GCS: Tel: (+264) 61 248 614 Contact: Eloise Carstens

Social and Geotechnical Water Environmental sustainability Engineering Mining Related Water Environmental Stakeholder engagement Mine Open Pit Slope Studies Impact Assessment, and public participation Depressurisation and Management Plans, Stability Assessments. Management Systems Surface Water Studies Performance Social and Economic Earthworks and structural Management Audits Impact Assessment foundation designs Mathematical Water Closure and rehabilitation Social and labour plans Subsurface conditions Flow and Contaminant Plans and materials Transport Modelling investigation Geochemical Measurement and Feasibility studies Physical/mechanical and Assessments Monitoring Plans chemical properties of subsurface materials Waste Classifications Financial Provisions for Social Risk Assessment Design of earthworks and closure structural foundations Contaminant Studies Soil Impact Assessments Baseline social surveys, and Management Plans, opinion polls, training Soil Monitoring and Rehabilitation mining towns

Jessica brown Troubled Times for Namibia’s mining towns

t is the fate of our increasingly globalised world that Namibian towns and residents have their livelihoods Ihanging in the balance because of decisions made by strangers miles away and unaware of their existence.

mining journal mining towns

WHAT’S LEFT A rundown house in Uis overlooking the old rubble pile. photo: archives

“When prices are low, everyone feels it.”

Market behaviour in China or India, described their constant monitoring of the levels of production in Australian mines international zinc price, which he explains or development of new technology in “effects contracts, job security, and futures.” he United States can all impact He adds, “When prices are low, everyone commodity prices and determine profits, feels it.” jobs and futures. When prices drop and profit margins are A slow-down in Chinese growth has triggered slim or non-existent, downscaling and the lowest commodity price slump since the retrenchments become inevitable and last economic crisis and the residents of this has a knock-on effect on contractors, small mining-focused, isolated towns across suppliers, retail and other town businesses. Namibia are currently feeling the brunt of it. Even the social fabric of town is affected. Mining towns are a strange social Many of the workers do not hail from the phenomenon. Contrived by mining companies area, so when work dries up, people leave. who needed a centre for their operations, Sustainability of these towns is a concern these towns are historically owned in the for residents. The fact is, writes David most part by the mining companies. Littlewood, business responsibility specialist, They are towns in which a single that they were never intended to be industrydominates and generally the sustainable, as their time frames were linked companies have provided and run the to early life of mine estimates. majority of the services including schools, hospitals and basics like waste removal. At Rosh Pinah and Oranjemund, for example, houses were built with the intention of These towns, like Rosh Pinah (primarily zinc), having a fairly short life span. As these mines Oranjemund (diamonds) and Arandis (uranium) have now been in existence for decades, a rely on the mines for their existence, which is dependent community has built up around threatened when commodity prices are low. them, with a specialised skills set and without The managing director of catering and other homes to return to. contracts management, a contractor who supplies the mines and town with a range of Instances have occurred worldwide in which services, Glenn Schlüter, based in Rosh Pinah, company towns have been transferred to •

a publication of the namibian mining towns

THE COAST Surrounded by desert, Oranjemund from the sky. photo: archives

local government and municipalities when mine closures occur The foundation deems their desert agriculture and gem or commodity price slumps effect mine productivity. processing initiatives to be successful, but greater issues prevail. Historically the schools, clinics, services and public In the case of Namibia, however, the remote location of towns spaces had been run and maintained by the mine, and once like Rosh Pinah and Oranjemund make them unattractive to the mine’s funds were not longer available, standards slipped other revenue streams, like tourism or manufacturing. due to funding constraints.

Arandis underwent this transition in 1994 with questionable Speaking of the mine-run schools and medical services, success. While the town is more strategically placed Littlewood noted, “upon proclamation [by local government], Drilling Services: location-wise, being near the coastal business belt, it it is unlikely that running and maintaining these kinds of P. O. Box 41661 struggled to separate itself from a reliance on mine life facilities will be economically viable. They may be downgraded Ausspannplatz, and miners’ incomes. or even closed’’. Windhoek, Namibia Rössing Foundation, the CSR arm of the mining company, People who are able to, leave these towns to seek a better Mobile: +264 81 149 4941 dedicated time and funds to aid Arandis in its transition lifestyle and standard of service elsewhere and the town is Email: [email protected] to sustainability by investing in SME’s and promoting the left with a largely economically disadvantaged population. • Diamond (Core) Drilling • RC Drilling • Percussion and Water Drilling • Auger Drilling • Blasthole Drilling development of alternative livelihoods.

mining journal www.kododrilling.com mining towns

“North of Rosh Pinah, and on the 57 outskirts Lüderitz slowly being swallowed up by the harsh Namib Desert, is Kolmanskop, a very real reminder of what could be.”

The towns also struggle with an artificial social composition. The once opulent settlement of Kolmanskop was built They are often majority male, with many of the residents with the purpose of housing German workers in the only living there on a part-time basis as they may be migrant diamond industry. labour, or temporary/contract workers. When the supply of easily accessible diamonds started to run The lower-tier workers in the mines or businesses supporting dry, the town’s utility waned until it was ultimately abandoned the mines are unlikely to have their families with them and in 1954. In its heyday the twentieth century town boasted in instances live in temporary informal settlements on the large houses built in a classic Germanic style, a grand hotel, outskirts of town. Schlüter notes that at present “morale is a theatre, casino, wood panelled bowling alleys and even an low”; the workers are away from their families for long stints ice factory. The diamond-funded relics of the town’s former and job insecurity is rife. wealth are slowly being stripped away by the shifting desert sands. It is hard to find a balance between mines, suppliers and trade unions. Recent strikes at Rosh Pinah provide a prime However, Schlüter concludes that he has no plans to leave. example. People are angry and feel cheated, but the mines Having lived for over 10 years at Rosh Pinah, he has seen and suppliers are suffering a global slow-down too. worse days and has developed a feel for the fluctuations in commodity prices. Unions have mentioned that they are in a complicated position, wanting to support their workers but remaining Things will improve again, he says. For him low morale takes aware of the situation with regards to commodity prices. its toll on the town, but better things are to come. Global slow-down is on their minds and they say that education of members in the specifics of the global economy And so, for now Namibians in remote desert outposts could be a helpful strategy. will continue to be battered or blessed based on distant market demands. • North of Rosh Pinah, and on the outskirts of Lüderitz slowly being swallowed up by the harsh Namib Desert, is Kolmanskop, a very real reminder of what could be.

Drilling Services: P. O. Box 41661 Ausspannplatz, Windhoek, Namibia Mobile: +264 81 149 4941 Email: [email protected]

• Diamond (Core) Drilling • RC Drilling • Percussion and Water Drilling • Auger Drilling • Blasthole Drilling

www.kododrilling.com financing mining RMB

58 is rendering mining industry financing A financial group with a conscience is what RMB prides itself in being.

In describing his organisation's partnerships, managing director Ohorongo Cement felt that the private sector should, where Steve Galloway says that what they look for are “long-term it could, help the government in dealing with the alarming relationships, avoiding speculative and opportunistic players, shortage of affordable housing. even at the cost of short-term gains”. Ohorongo approached their financer FNB/RMB who was They believe in “getting in early, picking winners and forming impressed by the initiative and eager to match their lasting value-added partnerships with corporates with whom contribution. Pupkewitz Foundation were then brought on values and long-term objectives are shared”. Creating a culture board and agreed to add their own contribution in the form of good corporate citizenship, both in their own finance of building materials. In total N$3 million was pledged by the industry and in those that they work with, is vital for RMB, and partnership. Galloway adds, not for making a quick buck but for supporting the country's national vision and goals. The money and materials were handed over to the Shack Dwellers Association of Namibia and Namibia Housing Action RMB have been involved in most of Namibia’s major mining and Group, two NGOs with an admirable track record, who the resource projects over the past few years. The last ten years partnership felt could best run the project. saw huge growth and investment in the industry. Where RMB see their clients embarking on exciting CSR they They were integral in the development of the N$4 billion are eager to get involved. It’s an easy way for them to ensure Otjikoto Gold Mine as well as being the mandated lead arranger that their CSR budget in spent in a well structured way, on (MLA) and funder to the SS Nujoma (the Debmarine mining meaning full projects, while allowing companies that they trust vessel) and the new Mafuta too. These two vessels' capital and respect to do the initial research and monitoring. On being costs exceeded a combined N$3 billion. impressed with the Otjikoto Environmental Education Centre - which combines the technical and scientific education with RMB were also involved in the financing of the N$2 billion environmental knowledge and experiences for local Namibian Ohorongo Cement plant and are bankers, advisers and/or students- RMB put forward funds for science equipment and lenders to a number of Namibia’s premier exploration and payment for 10000 bed nights per year for students around mining companies. the country to stay at the centre.

Mining is one of RMBs key focus areas. They employ three RMB’s managing director Galloway played a significant role mining professionals, including mining engineer and a in financing the EVI, the local empowerment group that has geologist/mineral economist. They also have a dedicated a 10% ownership in B2Gold Otjikoto Mine during his time at relationship management team for resources as well as Nedbank and he feels that RMB could play a role in financing specialised credit approach. similar groups in the future.

RMB is proud of their work with mines, as the mining industry What is essential through, says Galloway, is that the groups has done a lot to encourage ‘Growth at Home.’ In procurement, need to play and genuine role and add real value, which management, training and skills development, enterprise he feels EVI do to Otjikoto. Galloway also believes that development and in ownership mines have focused on developing a culture of positive corporate citizenship goes a Namibian development and growth. RMB have further formed long way in creating long term, sustainable empowerment of meaningful collaborations with their mining partners in areas disadvantaged Namibians. • of CSR.

mining journal

PARTNERSHIP

The partnership between the Government of the Republic of Namibia and De Beers delivers real and sustained benefits to Namibia and its people. In 2015, our Joint Venture businesses delivered to Namibia Treasury: y N$3.6 billion in taxes and royalties y N$800 million in dividends No other enterprise creates this level of value for the people of Namibia. Our recent partnership with UNAM (southern campus) further underscores our embodiment of true partnerships. Many young Namibians will now have the opportunity to attain tertiary education through this programme.