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Home Blog Page 43

Namport On Course To Becoming The “Best Performing Seaports In Africa”

The Namibian Ports Authority continues to make positive strides toward its vision of becoming the best performing seaports in Africa. The parastatal experienced challenges such as the COVID-19 pandemic, global container shortage and blank sailings. Despite these ongoing challenges, the Authority recorded positive growth during its financial year 2021/2022.

Namport CEO, Andrew Kanime confirmed the total year on year cargo handled amounted to 6.5 million tons, indicating an increase of 6%. Vessel visits also increased by 289 vessels or 22%. The increase in vessel calls was predominantly due to an increase in petroleum vessels, Namibian and foreign fishing vessels, foreign tugs as well as research vessels.

The Ports Authority also announced that Twenty-foot Equivalent Unit’s (TEUs) handled amounted to 168,278 of which, 61,106 TEUs or 36% were exported. A further 69,467 TEUs or 41% were imports and 37,705 TEUs or 22% were transshipments. TEUs increased by 12,298 or 8%, year on year.

This increase was mainly due to increased containerized commodities such as copper, charcoal, frozen fish, marble, frozen poultry, sugar, chemicals, scrap steel and wooden products. Namport further indicated that bulk and breakbulk (BBB) volumes handled amounted to 4.4 million, of which, 1.8 million tonnes or 40% were exports, 2.6 million tonnes or 59% imported, and 34,709 tonnes or 1% were transshipped.

Overall the BBB volumes increased year on year by 360,189 tonnes or 9%. This increase came as a result of increased commodities such as petroleum, steel, frozen fish, ammonium nitrate, iron ore, marble, ship spares, manganese ore, and flat cartons.

The volume performance is certainly commendable given the tough operating environment that characterized the financial year that was. Cross border volumes statistics also show that cross-border volumes increased by 10% from 1,464,000 gross tonnages during the 2020/2021 financial year to 1,606,984 gross tonnages during the 2021/2022 financial year.

At least 48% of the volumes are from South Africa, 23% from Zambia, 15% from the Democratic Republic of Congo (DRC), Zimbabwe and Botswana 6% each, 2% from Angola and 1% from Malawi.

According to the statistics, major commodities exported from SADC countries through Namibia are currently copper, manganese ore, and wooden products (Timber). Major commodities imported to Namibia destined to SADC Countries are frozen poultry, vehicles, machinery, spare parts, tyres, chemicals for mining use, electrical goods and electrical equipment.

The Namibian Ports also handle an assortment of cross-border cargo imports and exports via 4 main trade corridors; Trans-Kalahari Corridor, Walvis Bay-Ndola-Lubumbashi Corridor, Trans- Cunene Corridor and Trans-Oranje Corridor.

These corridors connect the Ports to the respective SADC markets namely Zambia, DRC, Botswana, South Africa, Zimbabwe and Angola. This performance is a testimony of an aggressive approach to developing the ports as the preferred SADC gateways.

Cornelder inaugurates additional equipment

On the 10th June on quay 2-3 Beira Port Container and General Cargo concessionaire Cornelder de Moçambique inaugurated a new lote of handling equipment in addition to rolling out a new automated application called C- Gate. This event was presided by the Minister of Transport and Communication.

The new equipment bought by CdM is made up of forklifts, terminal tractors, escavators and elevation equipment and represents a total investment of approximately 10 million American dollars.

C- Gate is a mobile web application developed internally by CdM and permits automization of the truck access control in addition to the registration of drivers, trucks and containers that daily gate into the Terminal. This is the first step of a complete automization process for the Container Terminal.

Besides increasing CdMs handling capacity substantially and safety measures this investment will contribute to the competitiveness of the Beira Corridor.

Govt eyes stake in future mineral, oil ventures

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Minister of mines and energy Tom Alweendo has confirmed that while existing mining and exploration contracts will remain unaffected, the government is contemplating the possibility of requiring a minimum equity stake through a public enterprise in future mineral and petroleum licences.

This comes as Alweendo’s comments on Tuesday about the possible nationalisation of specific natural resources created concerns among players in the oil and gas industry, resulting in a notable effect on the shares of mining companies primarily listed in Australia.

In a statement issued yesterday, Alweendo emphasised that Namibians face disadvantages in exercising their rights to natural resources due to financial and other constraints.

He said as the supreme owner of Namibia’s natural resources, the government may require a minimum stake in future mineral or petroleum licences through public enterprises like Epangelo Mining or the National Petroleum Corporation of Namibia (Namcor).

“Cognisant of the fact that many Namibians might not have individual capacity or the requisite resources to realise these rights or expectations in their individual capacities, it would be just that the government acquire these rights on their behalf,” Alweendo said.

Alweendo said the government would exercise these rights in a balanced way, considering the interests of both investors and the Namibian nation.

“The ministry would like to reiterate this is normal practice in Namibia – especially in the petroleum and mining sectors – and we should maintain such practice in the interest of all our stakeholders,” Alweendo said.

Quoting article 100 of Namibia’s Constitution, Alweendo on Tuesday said local ownership must start with the state, in which the ownership of natural resources is vested.

“The proposed state ownership should take the form where the state owns a minimum equity percentage in all mining companies and petroleum production for which it does not have to pay.

“We believe this is the most practical way to resolve the issue of local ownership,” Alweendo said.

‘RISKY MOVE’

Prominent investment expert Steve Galloway says there is nothing wrong with the government’s acquisition of minority stakes at fair value, and the government becoming a risk taker in resource ventures.

According to Galloway, the “government stake” on behalf of the people of Namibia, who are the ultimate owners, should range between 50% and 70%, depending on the resource’s quality.

If the government chooses to pursue equity acquisition, Galloway advises that the resource rents be closer to the lower end of this range.

He says the less risky alternative is capturing resource rents through royalties, taxes and duties.

Galloway warns against nationalisation, asserting that taking free or carried equity would adversely affect investor sentiments.

“If it is instead of traditional resource rents, it needs to be carefully structured and legislated. Forced sale without payment is unconstitutional and in contravention of current legislation,” he says.

The mining expert cautions that acquiring free equity, or shares without payment, would complicate investment cases and make them less financially viable.

“Unless this is balanced against total government stake and is in line with other similar resources and jurisdictions, it would be mostly negative for the country,” Galloway says.

Further, Alweendo made a case for incentivising local ownership through the establishment of a state-funded minerals exploration fund, which could be funded by a portion of the royalties mining and petroleum companies pay to the state.

“The fund will then be used to assist eligible local entrepreneurs who wish to invest in the mining sector,” Alweendo said.

‘ENTITLEMENT’

During his Tuesday briefing, Alweendo reiterated that the culture of entitlement has become a major obstacle in the country and makes it difficult to develop a thriving and sustainable local content industry.

“We have people in our society with a ‘you owe me’ attitude; people who are not willing to acknowledge that as a nation we will achieve better outcomes when all of us accept individual responsibilities,” Alweendo said.

Energy Invest: Equatorial Guinea 2023 Book Reveals Promise of Central African Nation During Year of Organization of Petroleum Exporting Countries (OPEC) and Gas Exporting Countries Forum (GECF) Presidency

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Energy Capital & Power (ECP) is proud to announce the production of the fourth edition of Energy Invest: Equatorial Guinea, the most comprehensive guide to the Central African nation’s diverse energy market.

Endorsed by H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of Equatorial Guinea (https://bit.ly/3XeJMnz), the publication represents a complete report on investing in one of Africa’s most attractive energy markets. ECP is extending an invitation to all stakeholders to participate in the report.

Energy Invest: Equatorial Guinea 2023 investigates the country’s long-term development agenda, exploring the pathway to becoming a regional hydrocarbons hub, the intersection of natural gas and the energy transition, the future of oil development, and efforts undertaken by the government to develop an interconnected gas network in sub-Saharan Africa.

In 2023, H.E. Gabriel Mbaga Obiang Lima is President of both the Organization of Petroleum Exporting Countries and the Gas Exporting Countries Forum (https://bit.ly/3GNPqb6). In this position, Equatorial Guinea is expected to play a critical role, shaping global energy dialogue and advancing the interests of African energy producers.

With an extensive expansion strategy currently underway that would see Equatorial Guinea become the processing hub of Central and West Africa, opportunities for investment are endless. Under the country’s wider Gas Mega Hub initiative (https://bit.ly/3Gv2S2l) – presenting investment opportunities ranging from power generation to liquid fuels – Equatorial Guinea has taken the lead towards African gas monetization and is set to play a crucial role in the world’s future energy mix.

Projects such as the $330 million Alen Gas Monetization project, the Alba Liquefied Petroleum Gas plant and the Equatorial Guinea Liquefied Natural Gas facility speak to the size of the country’s reserves, investment prospects and future opportunities. With plans to expand exports even further, while connecting leading regional gas producers under the LNG2Africa initiative, Equatorial Guinea offers a series of integrated foreign investment and export prospects.

Meanwhile, as a member of the Central African Economic and Monetary Community, investment opportunities transcend geopolitical borders, with prospects to tap into the wider West and Central African markets open to global and regional investors alike.

Stepping into this picture, the fourth edition of the Energy Invest: Equatorial Guinea report serves to ensure the country’s vision of becoming a regional gas hub translates into reality, providing investors with the tools and insight they need to make informed decisions in the market.

Energy Capital & Power Managing Director Laila Bastati stated: “ECP has had the honor of promoting investment in Equatorial Guinea through its series of conferences and investment reports. We firmly believe that Equatorial Guinea has an important role to play in the energy transition and energy security through its resources across the region and internationally”.

The investment report’s fourth edition speaks to the long-standing collaboration between ECP, as the premier investment platform for Africa’s energy sector, and the Ministry of Mines and Hydrocarbons of Equatorial Guinea.

Celeros Flow Technology injects new life into 40 year old SAGD pump to increase heavy oil production for customer

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Celeros Flow Technology has injected new life into a heritage pump for a Canadian heavy oil recovery customer, enabling them to increase production. The pump – a Mather & Platt BB5 – was more than 40 years old and had been subject to numerous post-installation alterations.

Heavy oil deposits are extremely viscous and require the injection of high pressure, high temperature steam to improve fluidity and allow the oil to be pumped to the surface. In order to boost extraction on this project, the customer needed to increase water temperatures from 90° C to 140° C. However, there were concerns that the existing pump may not be able to deliver this requirement. Nozzle loads were a particular concern. They turned to Celeros Flow Technology brand ClydeUnion Pumps, their preferred supplier of some 20 years, for assistance.

Mather & Platt is one of several heritage pump brands for which Celeros Flow Technology offers full lifecycle support1. Their aftermarket engineering team undertook a thorough examination of the quadragenarian Steam Assisted Gravity Drainage (SAGD) boiler feed water pump used in the heavy oil extraction process. The investigation revealed that the pump had suffered a number of seal failures over time that had damaged the stuffing box and affected operational efficiency. There had also been no maintenance interventions for decades – but the pump had never actually failed.

Says Mike Golds, Global Upgrade and Rerate Programme Manager for ClydeUnion Pumps: “It is testament to the quality of the original pump that it had continued to operate in such harsh conditions and with no regular maintenance over such a long period of time. More importantly, it gave us confidence that a thorough overhaul could achieve the desired improvement in performance, saving the customer the cost and lost production time that can be associated with sourcing and installing a new unit.”

Celeros Flow Technology overhauled the SAGD pump and performed a mechanical seal upgrade and Plan 23 seal flush to optimize pump performance. In addition, finite element analysis was undertaken to confirm that the nozzle loads would withstand the desired temperature increase. As a result, the pump is now capable of delivering steam at the higher temperatures required. The seal upgrades ensure it meets the latest specifications.

Concludes Mike Golds: “We are really pleased with the outcome of the SAGD pump upgrade. It has not only achieved the desired production increase for the customer, but also provided a more sustainable and cost-effective solution than total pump replacement. Using modern engineering and analysis, we have been able to give the existing pump a new lease of life and ensure it will continue to perform well for many more years.”

Pfeiffer Vacuum introduces new multi-stage roots pumps ACP 90

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Pfeiffer Vacuum, one of the world’s leading suppliers of vacuum technology, introduces new multi-stage Roots pumps ACP 90, which are designed for oil- and particle free applications in the pressure range between atmosphere up to 3×10-2 hPa. These vacuum pumps meet the requirements where clean and dry vacuum is needed like drying, sterilization, coating as well as semiconductor and R&D applications.

With their unique design, these pumps are robust and can withstand frequent pump downs. Highly valuable materials render the pumps more resistant to light corrosive gases. ACP 90 is ideal when pumping large amount of condensable gases like in drying applications, high humidity environments or large insulating volume pumping.

As Jean-Philippe Briton, Product Manager at Pfeiffer Vacuum, explains, “We are particularly proud of the built-in intelligence that allows for high pumping speed at high pressure, which is important when pumping large volumes. With a very low power consumption of 2 kw at atmospheric pressure the ACP 90 is also an energy efficient solution for this type of use.

How will multinational mining companies respond to investors’ growing focus on environmental, social and governance (ESG) issues?

Despite the short-to-midterm challenges of the global pandemic, the biggest challenge for multinational mining companies over the next decade will be responding to investors’ growing focus on environmental, social and governance (ESG) issues.

As a focal point of how seriously the extractives industries are now taking ESG investing, over the last year the Norwegian Sovereign wealth fund (SWF) has significantly cut back investing in oil and gas stocks. At the same time, the world’s biggest mining companies have made a series of disclosures designed to boost their credentials with more ethically minded and governance-focused investors.

To illustrate this, BHP, Rio Tinto, South32, Vale and Glencore have all published detailed analyses of the risks attached to their tailings dams. Rio published an extensive list of its contracts and commercial arrangements with governments, while BHP last year published a debut report into its global water consumption. Both Rio and BHP have published “taxes paid” documents in recent years, and both have faced shareholder resolutions seeking tougher stances on carbon emissions.

“The biggest question that all these companies have got to face is around ESG,” Evy Hambro, Chief Investment Officer within BlackRock’s natural resources equities team, recently told The Australian Financial Review.
”The amount of money that is going into ESG-related products is growing very rapidly, and how these mining companies navigate through them, and the changing ESG landscape over the next decade is going to be really important.”

Ratings agency Fitch says natural resources companies are more likely to have their credit rating affected by ESG issues than the broader corporate sector. About 22% of all companies rated by Fitch have their credit rating affected by ESG issues, but for natural resources producers that figure is closer to 31%. Fitch said ESG issues, such as water consumption and community relationships, were a ”potential driver” of BHP and Rio’s credit ratings. Both miners were given a score of three out of five by Fitch, under a system where companies ranked five have the most severe ESG issues.

”I think this whole footprint of resource production needs to be better portrayed by the companies so they can keep their place in the market,” said Mr Hambro.

“It is about what is the impact of resource production, and how is it actually measured, what are the consequences of people consuming those resources.”

BlackRock’s World Mining Trust counts BHP, Rio and Vale among its biggest holdings. The trust also has Glencore and OZ Minerals among its top 10 exposures.

Fellow investment behemoth, Goldman Sachs, has famously begun overhauling its environmental policies, which includes pledging to spend $750 billion on sustainable finance projects over the next decade, as well as implementing stricter lending policies for fossil fuel companies. The $750 billion will focus on financing, investing and advisory activity related to nine key themes within climate transition and inclusive growth finance, which includes things like sustainable transport, accessible and affordable education and food production.

“There is not only an urgent need to act, but also a powerful business and investing case to do so,” Goldman Sachs CEO David Solomon wrote in an opinion piece published at the end of 2019 in the Financial Times.

“Focusing on these specific goals gives us a set of metrics — such as the amount of carbon reduction and the number of people served — that we can track over time both for the companies and for ourselves,” he added.
Solomon said that companies no longer have the “luxury” of treating climate-related initiatives as a “peripheral issue,” and that financial institutions must support those driving change.

Goldman said that going forward, it will not finance any project that “directly supports new upstream Arctic oil exploration or development,” or any new coal-fired power generation project unless it also includes carbon capture or other emission cutting technologies. The firm’s prior policy only restricted funding in developed nations. The bank also said it will not back new thermal coal mine developments and that it will work with mining companies to help them diversify and cut emissions.

Goldfields innovation protects underground mine access

World-leading autonomous solutions specialist RCT has fulfilled requests from mining clients and devised a unique warning system designed to prevent oversized equipment from getting stuck inside underground mining portals.

Staff from RCT’s branch in Kalgoorlie, Western Australia were separately approached by two major mining clients in the Goldfields and asked to devise a solution to prevent portal blockages which can severely disrupt regular mining operations.

Branch technicians subsequently produced the Over Height Portal Warning System which consists of a laser mounted at a particular height connected to a unit placed at the portal entrance.

The unit will produce an audible alarm and flash the word “STOP” to alert machine operators and nearby site personnel there is a potential over-height hazard.

Site personnel are able to determine the system’s field of view and isolate areas such as a corner or pole so that the system will only activate when it senses new objects.

RCT Kalgoorlie Branch Manager Rick Radcliffe said the local technicians were happy to rise to the challenge set by the company’s clients.

“The system was designed and built in our workshop here in Kalgoorlie and we supplied it to our clients who were quite happy with the result,” he said.

“Occasionally underground haul trucks try to re-enter the portal with their trays accidentally in a raised position and this causes the trucks to get wedged in the portal.”

“The time needed to dislodge the haul truck from the portal is very costly to the mining operation.”

“Therefore, the Over Height Portal Warning System is a cost effective and easy solution that will help keep mining operations running smoothly.”

Since its development the Over Height Portal Warning System has been sold to 10 mine sites throughout the Goldfields.

Empire Cat donates truck for raffle

Empire CAT of Phoenix, AZ, has donated a 2020 GMC Sierra 2500 SLT Diesel truck valued at $70,000 as the grand prize for the Society for Mining, Metallurgy & Exploration Foundation (SMEF)  Benefit Truck Raffle.

The proceeds are to support critical education, outreach and professional development programs for SMEF.

“Empire CAT has shown exceptional generosity to the Foundation by donating this unique vehicle for the Foundation’s benefit raffle,” said SME Executive Director David L. Kanagy.

“Their contribution will support the SME Foundation as it strategically invests in solutions to help solve the challenges facing the mining and minerals industries today.”

All proceeds raised from the raffle go to support the critical SME Foundation programs, including the PhD Fellowship and Academic Career Development grants, Miners Give Back, ABET, Professional Engineers Exam, the Minerals Education Coalition, and numerous scholarships. SMEF is the provider of services for the industry professional, the university student, and K-12 educators.

“For me it’s an honor to be a part of this initiative to continue to support SMEF and the important activities it does for the Industry,” said Josh Olmsted, Sr. VP Freeport-McMoRan Copper Operations and SMEF Trustee upon securing the donation.

“Empire Machinery has been a long-standing partner of the Mining Industry and the communities in which they work. This is a great example of them being committed to giving back to the industry in a way that is meaningful, not only for today but more importantly for our future.”

As the source of funding for education and outreach for SME, the Foundation will utilize this extraordinary benefit raffle to support the health of the industry by strengthening the professional workforce, enhancing mining–related education and educating communities about mining.

The truck will be on display on the MineXchange Exhibit Floor during the conference, and a Tailgate Party in 2020.

Russia Digitalises Africa’s Mining Sector to Increase Output

  • Russian companies have offered African countries solutions based on the internet of things (IoT) and artificial intelligence (AI) to boost mining production.

    The offers follow the realisation that traditional means are becoming increasingly expensive, with productivity falling due to technical maintenance costs, unreliable equipment, reactive troubleshooting, a lower equipment utilisation coefficient and accidents connected to the transgression of safety regulations.

    This was the prevailing theme at a panel discussion entitled: “The Mining Industry in Africa: New Russian Technologies and High Efficiency” held as part of the recent Russia-Africa Summit and Economic Forum in Sochi

    Igor Bogachev, Chief Executive Officer of ZYFRA, said the company was offering Africa an automated mining and transport management system as well as robotic technologies.

    He said the system of production control allowed for efficiency of the mine fleet and optimise ore production and transportation, increasing mining volume by 15 per cent.

    The robotic trucks performance is 20 per cent higher than that of the usual technology.

    “Our autonomous dump trucks are already operational in Russia and Morocco,” Bogachev said.

    David Francis, Prime Minister of Sierra Leone, said a country-wide aerial survey of geological resources had recently been conducted.

    “We now know the approximate volume and quantities of mineral resources that our country possesses,” he said.

    “We know that Russia has accumulated the knowledge and experience to help Sierra Leone evaluate all the information, enabling us to verify and confirm the amount, type and estimated value of the natural resources.”

    George Oyema, head of General Maniema Mining Company in Democratic Republic of Congo (DRC), said remote control technologies were effective in raising safety levels and increasing the company’s productivity.

    “This satisfies the interests of the labour unions, employers, owners and, ultimately, the state. It also increases the productivity of the industry safely,” Oyema stated.

    The mineral industry is key to the industrial potential and export of many African countries.

    Almost 75 per cent of foreign investment is destined for that sector.