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The 6th annual Junior Indaba: The junior mining sector in Africa

The 2020 Indaba, known for its straight-talking and frank discussions, will take a critical view of the state of play both in South Africa and other ‘hot spots’ in the rest of Africa.

Local and international experts will provide input on the latest political, economic and regulatory developments and why certain regions have a thriving exploration and junior mining sector.

Panel discussions will focus on such themes as the demand and future role of coal in the African energy markets; which commodities are hot this year; the impact of 4IR and the transition to a low-carbon economy on junior miners; and how local and international investors view the risks and challenges of junior mining.

Crucial questions will be debated, including:
  • What is happening across Africa? Where is exploration taking place and investment flowing?
  • Do we have clarity, consistency and stability in South African mining policy and legislation to attract investment?
  • What is the potential of junior mining in terms of economic activity, GDP contribution and job creation?
  • What are the most appropriate funding vehicles for juniors? What new financing options are available?
  • What does the transition to a low-carbon economy mean for junior mining?
  • What does the ‘just transition’ away from coal mean for African junior coal miners?

Popular features of the programme include: Project Showcase sessions (featuring junior miners from across Africa); Myth Busters, Lessons from the Legends and Peter Major’s Facts and Fiction!

Keep checking our website to see the latest additions to our speaker line up here.

Chaired by Bernard Swanepoel, early confirmed speakers include:

Luis Almeida, CEO, Sodim Group; Morne du Plessis, CEO, Minergy; Tim George, CEO, Pensana Metals; Dr Roger Key, Head of Exploration, Kalahari Key Mineral Exploration Company; Simone Naiker, Chemical Engineer, Process Development, Exxaro; Nick von Schirnding, Chairman & CEO, Arc Minerals; William (Bill) Witham, CEO, Australia-Africa Minerals and Energy Group; Helium One; ARX Resources amongst others.

Registration is now open so don’t wait, book now and take advantage of our early bird rates.

An extensive guide to COVID-19 funding options for small businesses

In a recent study by Startup Genome, 42% of small businesses globally have less than three months before they will not be in existence any more. This means that should these businesses not be able to create revenue or get funding in the next few months they will struggle.

Are you one of these businesses? If so, here are some funding options to look into. Remember when considering funding it is important to understand the terms and conditions of the fund. You should also speak to a financial advisor if anything is unclear about the fund.

Find information on the various funds which are available here:

An extensive guide to COVID-19 funding options

Learn more about the NSBC’s COVID-19 Small Business Relief Centre

We need fast action to make the thousands of small businesses throughout South Africa more resilient to coronavirus-related economic disruptions.

Small businesses are vital economic engines, the mainstay of our economy and the future of job creation. More than two-thirds of the working force work in a small business today. This is why we need to make sure we bridge businesses through these tough times.

Our goal is to make sure businesses stay in business and that we keep workers employed. Although this is a time to be careful, it’s not a time to panic and stop shopping locally, it’s the time to stand together.

Some of the few key areas include:
  • Creating a business continuity plan
  • Digital marketing strategies in a time of crisis
  • How to handle and implement hygiene protocols and new staff policies
  • How to move from face-to-face to online meetings
We will also campaign on behalf of all small business to encourage providers to implement:
  • Low-interest disaster recovery loans
  • Moratorium on vehicle and equipment leases, bond repayments etc
  • Negotiating and staying in contact with suppliers
  • Landlord negotiation with regards to property leases
Learn more: https://www.nsbc.africa/COVID-19

The NSBC is Africa’s leading SME organisation and the fastest growing organisation of its kind in the world, committed to helping business owners and entrepreneurs become tomorrow’s business legends.

African Utility Week and POWERGEN Africa goes virtual in May

The organisers of African Utility Week and POWERGEN Africa have announced that a free, virtual conference will take place in May.

“Although the event was recently postponed to November,” says event director Evan Schiff, “we recognise that the need for information, expert opinion and connection with your peers and customers is required now. We have therefore created a Virtual African Utility Week and POWERGEN Africa, that will bring our partners in the power, energy and water sectors timeous content to answer their most pressing concerns now.”

The live online event will take place from 11-15 May and the programme will include the following topics:
  • Exploring private sector participation in African power and water sector
  • Maintenance: key to keeping the lights on
  • Best practices for utilities’ financial health worldwide: How to better plan for the unexpected
  • Investment opportunities for South African SMMEs working in the green economy
  • Solutions for City and Municipal revenue management
  • Adopting new behaviours to influence emissions across Africa
  • The energy transition for Africa in a post COVID-19 world
  • Energy access matters
  • Impact of COVID-19 on Africa’s water sector

Key considerations in smart grid and metering communication

Committed to power and water sectors

“While at this stage the Covid-19 epidemic’s lasting economic impact is still unknown,” says the African Utility Week and POWERGEN Africa event director, “African economies are expected to be hit the hardest and there can be no doubt that the effects on all aspects of the economy will be keenly felt. The public sector utilities delivering crucial electricity and water services as well as the companies servicing these sectors, ranging from multinationals to SMMEs, will not be spared either. 2020 is our event’s 20th anniversary and we remain committed to the African power and water sectors and we are excited to explore new digital formats to support connections across the continent.”

“The Virtual African Utility Week and POWERGEN Africa is a completely free initiative,” Evan Schiff explains, “open and available to any interested parts of the sector. It is our way to offer both our long time partners and friends as well as new acquaintances the opportunity to learn, connect and engage. As always, the event will feature world-class speakers, an insightful programme and business matchmaking opportunities, albeit online.”

To view the speaker line-up and to register for the Virtual African Utility Week and POWERGEN Africa, go to https://www.african-utility-week.com/virtual

 

Leading event

The 20th annual African Utility Week and POWERGEN Africa conference is the leading conference and trade exhibition for African power, energy and water professionals. The event brings together over 10 000 decision makers from over 90 countries, including 35 African countries, to source the latest solutions and meet over 350 suppliers. Along with multiple side events and numerous networking functions, the event also boasts a CPD-accredited strategic conference and technical presentations with over 300 expert speakers.

African Utility Week and POWERGEN Africa recently won the AAXO ROAR Award for Best Trade Exhibition in the 12000+ sqm category for the third time.

Renewable energy storage giving a new lease of life to end-of-lifecycle mine shafts

Image courtesy of Gravitricity

The new power source, dubbed “gravity energy” is being developed by Gravitricity, and mimics hydropower projects which have played a key role in helping to balance the electricity grid.

Gravitricity’s “virtual battery” design is created by hoisting and dropping 12,000-tonne weights – more than the weight of the Eiffel Tower – down disused mine shafts, according to Imperial College London.

This system effectively stores energy by using electric winches to hoist the weights to the top of the shaft when there is plenty of renewable energy available, then dropping the weights hundreds of metres down vertical shafts to generate electricity when needed.

A full-scale project would drop 24 weights totalling 12,000 tonnes to a depth of 800 metres to produce enough electricity to power 63,000 homes for more than an hour. By controlling the winches Gravitricity said it could extend this period by allowing the weights to fall at a slower rate and release electricity over a longer period.

Ideally suited to network-constrained users and operators, distribution networks and major power users, the technology operates in the 1 MW to 20 MW power range and enables existing grid infrastructure to go further in a renewable energy world. Electrical power is either absorbed or generated by raising or lowering the weight. The weight is guided by a system of tensioned guide wires to prevent it from swinging and damaging the shaft.

The system was developed by Gravitricity’s founder, Peter Fraenkel, who also invented the world’s first full-scale tidal energy turbines. The tidal energy design was subsequently bought by the German industrial firm Siemens.

The company is currently in discussion with mine owners in the UK, South Africa, Poland, and the Czech Republic, where mine shafts can be more than 2,000 metres deep.

Charlie Blair, Gravitricity’s managing director, said: “The beauty of this is that this can be done multiple times a day for many years, without any loss of performance. This makes it very competitive against other forms of energy storage – including lithium-ion batteries.”

Oliver Schmidt, the lead author of Imperial’s report, said Gravitricity’s model is the most price competitive energy storage option because it has a relatively low upfront cost and a potential lifespan of more than 25 years.

The report found that electricity released by a typical 10 MW lithium-ion battery project would cost $367 per megawatt-hour over its lifetime compared with a cost of $171/MWh for electricity from a Gravitricity project.

Schmidt said: “I don’t expect Gravitricity to displace all lithium batteries on grids, but it certainly looks like a compelling proposition.”

Images are courtesy of Gravitricity.

Mining could be the best thing to stabilise the South African economy after the COVID-19 crisis

It is evident that in order to tackle the effects of the current situation, South Africa will be required to pass a set of constructive economic reforms to improve the country’s financial performance and productivity. These measures are also going to be critical for achieving previously set targets to reduce poverty and unemployment.

Unfortunately, the only way South Africa can return to a reasonable investment grade will be through significant economic restructuring, especially since Moody’s has now lowered South Africa’s credit rating. Earlier this year, the country’s economic growth forecast was similarly greatly reduced, boosting the need for sizable economic restructuring.

The South African government has certainly been proactive in its response to COVID-19, with the country now in a 21-day lockdown. The lockdown has generally been well-received and supported by business, including the Minerals Council of South Africa. The collaborative efforts of the Department of Minerals Resources & Energy and the Minerals Council have shown that the country is putting the health of employees first and is committed to delivering essential services and minimising the damage to the operational capacity of the sector.

Industry experts believe that the 21-day lockdown could have a positive effect on metal prices in the longer term. It is forecast that platinum will benefit most from the current situation, a boon for South Africa, which last year contributed close to 75% of global output. The lockdown will particularly benefit those producers who are able to keep a sizable proportion of operations functional due to heavily automated processes and successful implementation of new technologies.

Iron ore could similarly benefit from the current situation, given that South Africa is one of the largest producers, whilst Chinese demand is slowly recovering as the country successfully leaves the COVID-19 crisis phase. Furthermore, the interest in bulk commodities has remained relatively high despite global quarantine measures being rolled out across some of the world’s largest economies.

Guernsey demonstrates strengths in a “land of opportunity”

It was clear from our trip to South Africa in February that the short-term picture in the country is nervous – but longer term is there is opportunity for many in South Africa, particularly with investment in infrastructure going on in the country.

Clients want to invest offshore at this time. Large flows of funds are leaving South Africa, heading for unit trusts, money markets and retail investment funds, and they are attracted to Guernsey for a number of reasons, not least diversification.

The significant business ties in financial services between South Africa and Guernsey are well established, and we were also speaking to more companies who are interested in setting up in Guernsey.

James Crawford, International Business Development Director at Guernsey Finance

We saw firms keen to invest in Guernsey, and others actually looking to establish a base in the island, as part of a move away from Mauritius and Cayman as default offshore jurisdictions for South Africans.

They were telling us that they saw a Guernsey platform as being more sustainable and offering them wider leverage, and spoke of Guernsey as being “ahead of the pack” compared to competitor jurisdictions. One manager said Guernsey “meets investors’ expectations as a reputable destination with a strong reputation”.

What are Guernsey’s strengths?

  • Excellent regulation
  • Same language, culture and time zones
  • Closest offshore financial services centre to London
  • Europe’s leading specialist centre for private equity administration
  • Internationally recognised by both US and European markets
  • Early and positive adopter of the Common Reporting Standard

Find out more about what Guernsey can do for you as a base for offshore investment. Go to https://www.weareguernsey.com/finance-industry/investment-funds/

Guernsey ready to ‘lend a hand’ for offshore investment

I am writing this while flying from Cape Town to Gatwick, following a busy week at the end of February in warm and welcoming South Africa.

The Guernsey delegation which I was part of were learning, always learning, about the local market and spreading the good word about the role that Guernsey plays in supporting it – and it was clear that there is so much more that can be done.

In the midst of a (medical and media-frenzy) pandemic, with markets shaking and shuddering more than the Boeing 777 now beneath me, it was refreshing to reflect on the long-run opportunities for a continent that will be home to seven of the world’s 20 most populous nations by 2050.

Paul Wilkes, Group Partner, Guernsey

This time round, in addition to meeting with friends new and old in both Johannesburg and Cape Town, we attended the SAVCA conference in Stellenbosch.

It is safe to say that the southern African private equity and venture capital ecosystem is vibrant, active and diverse. Taking place in the same week as SuperReturn Berlin, I am sure that the same conversations were taking place about the search for returns, valuation challenges and exit strategies in both hemispheres.

Here are a few of the themes that came up in my discussions with South African fund managers, allocators and investors.

Key asset classes

There was a bit of everything (as one would hope in a functioning economy), but the repeating strategies were infrastructure, education, healthcare and agriculture. Perhaps of comfort for some, there was a healthy supply of talk about fintech, agritech and biotech.

Infrastructure followed China’s belt and road initiative (as we all do) but was much broader – reflecting the impending demographic dividend across the continent. Healthcare and education covered both private service and the extended supply chain.

Impact investing

Investing for impact was a prevalent theme both in and out of the official sessions. Impact being taken in its broadest sense – sustainability and climate change; financial inclusion; access to waste and healthcare; gender empowerment and more. If you have an SDG, there is an urgent and lasting business case right here and right now to attack it. And attack it profitably.

Yemi Lalude of the private equity firm TPG was at pains to say that their $2.2 billion Rise Fund, focusing on impact investment, had a few key missions – to prove that you can impact invest at scale and prove that impact investing does not mean lower returns.

Mauritius

As the private equity and venture capital sector continues to draw international attention and demand, the historical preference for Mauritius as the fund domicile is being challenged.

Investor comfort, time zone challenges, talent scarcity and a diminishing tax benefit (including direct tax leakage in the island and a weakening tax treaty network) have led managers to look to more established fund centres, such as Guernsey, for long term stability. And Guernsey is ready and willing with the capacity, regulatory regimes, and hunger to lend a hand.

 

African Travel and Tourism Awards finalists announced

Africa is as unique as it is beautiful. It is underneath our starry skies that generations of storytellers have held court while telling their folktales.

The African Travel and Tourism Awards is a celebration of all that lies beneath our African skies. They honour the stars of African tourism and the enchanting tales they weave for our industry. These Awards recognise the best of national, regional and city tourist boards and recognises outstanding private sector companies and individuals.

With over 100 entries across the eight categories, the judges had the challenging task of choosing the finalists. Megan Oberholzer, Portfolio Director for Africa Travel Week went on to say, “The submissions were of an extremely high calibre, featuring tales of magic weaved from diverse voices, celebrating the stories that lie Under African Skies – stories of vitality, riches, movement, time, strength, change and promise.”

All the finalists for the Awards have demonstrated how through through vivid marketing campaigns and/or providing unique travel experiences they attracted travellers to their destination, venue or to use their product offering. The finalists have written the most compelling stories in the book of African travel.

WTM Africa Travel & Tourism Awards

The finalists are:

Most Compelling Tourism Story
  • Cape Town in Modern South by Cape Town Tourism
  • Spring Marketing Campaign by Northern Cape Tourism Authority
  • Cradle of Human Culture by WESGRO
Most Compelling Innovation and Technology Story
  • Q2B Booking Gateway by Q2B Solutions
  • VISTA Destination Network by Rainmaker Digital
  • Virtual Reality for Tanzania by View 4D
  • Travelstart Buses by Travelstart
Most Compelling Agency Story
  • Love Africa Marketing for Blood Lions
  • Have You Heard for Cape Town Tourism
  • CNN International Commercial for Dangote
  • Big Ambitions for SATSA
Most Compelling Luxury Story
  • Kololo Game Reserve by Kololo Game Reserve
  • Table Mountain Ring by Shimansky
  • Desert Rose by Shimansky
  • Rockwell Showroom by Shimansky
Most Sustainable Story
  • Eco Messages by Emboo Camp
  • How Many Elephants by How Many Elephants
  • Sierraously Inspiring by OhThePeopleYouMeet
  • International Dark Sky Certification Campaign by !Xaus Lodge
Most Digital Story
  • Back to Africa by Black and Abroad
  • JAW Designs for eBucks Travel
  • De Zeven relaunch by EcoAfrica Digital
  • Blood Lions by Love Marketing Africa
Most Compelling Adventure Story
  • Bronze Whalers by Marine Dynamic Tours
  • Pioneer Trail by Gondwana Game Reserve
  • Namib100 Hike by Live The Journey
  • Road Less Travelled by TravelNews East Africa
Most Compelling Foodie Story
  • Farm to Table by CNN International Commercial with Dangote
  • Travel with Purpose by 4Roomed eKasi
  • Africa’s Original Elephant Dung Gin by Indlovu Gin
  • Wild Food from Land and Sea by The Vineyard Hotel

The winners were due to be announced on 6 April at GOLD Restaurant as part of World Travel Market Africa 2020 in Cape Town, which has been postponed due to the COVID-19 pandemic. 

While the travel industry supports the #SaveTourism Campaign it is vital that we still celebrate the finalists.

The winners will be announced in May 2020.

All finalists and winners will be invited to attend a special event during World Market Africa 2021.

For more information, please visit World Travel Market (WTM) Africahttps://africa.wtm.com/

Managing welding costs by optimising shielding gas mixtures

Air Products Welding Specialist, Sean Young, offers expert advice on alternative options when selecting gases.

Manufacturing costs have increased significantly in the last few years due to a number of external factors. The current challenge for manufacturers is to manage costs in the welding process without compromising quality or output.

One way to manage the costs is to ensure that the correct material and processes are used from to onset to avoid unnecessary costs as a result of unsuccessful welds or rework.

Welding Specialist at Air Products, Sean Young explains for a weld that is successful, the source melted and the components to be joined, needs to be protected from oxidation and atmospheric contamination. This can be achieved by means of a flux or by using a shield gas. In the case of shielding metal arc (SMA) electrodes or submerged arc processes, a flux is used, whereas a gas shield is used with gas metal arc welding (GMAW), gas tungsten arc welding (GTAW) and most flux-cored processes.

Selecting optimised shielding gas mixtures for gas metal arc welding (GMAW) of carbon steel is one way in which the costs can be evaluated and minimised. For Air Products, it is important to provide different solutions to customers which suit their specific needs, and furthermore assist with cost savings where possible.

One way to manage the costs is to ensure that the correct material and processes are used from to onset to avoid unnecessary costs as a result of unsuccessful welds or rework.

Young offers specialist services and advice to customers on various components of the process, one of which is the selection of shielding gas. According to Young, it is important to look at the welding process, the material, its thickness and the metal transfer mode.

The weld properties are affected by shielding gases, and in order to optimise the choice of shielding gas, it is important to take all the elements into account that can affect the quality of the weld, such as spatter, bead profile, fusion and penetration.

Air Products offers a variety of shielding gases and mixtures

A number of mixtures and shielding gases are commonly used for welding:

  • CO2 is largely used for GMAW in dip transfer mode of carbon steels
  • Argon is suitable for GMAW of non-ferrous materials and all GTAW applications
  • Argon/CO2, Argon/O2, Argon/CO2/O2 mixes are used for GMAW of carbon steels as well as stainless steels
  • In the case of more advanced GTAW applications, more exotic argon/helium and argon/hydrogen mixes are available
  • T4dcWith more advanced GMAW applications, Argon/He/CO2 and Argon/H2/CO2 mixes are available

Sean Young elaborates on Argon and CO2: ”In any mixed shielding gas cylinder, argon is generally the dominant gas. In its pure form, it is an inert gas which is used to keep other gases out and has no chemical effect on the deposited metal weld. On its own, argon is used for all tungsten inert gas welding (GTAW/TIG) and GMAW aluminium and copper and its alloys.”

He further explains that pure CO2 is perceived as the original shielding gas for GMAW and is widely used for general purpose welding of steels today and it is a cost effective shielding gas. However, CO2 can destabilise the arc and cause spatter as it violently dissociates into carbon monoxide and oxygen in the arc. This leads to a hotter arc with deep penetration, causing a large droplet formation which is known to restrict the use of the CO2 to a dip-transfer mode.

Improving welds with active gas additions

Adding minority percentages of active gases such as oxygen and carbon dioxide can make significant improvements to the argon shielding gas for GMAW of carbon steels and stainless steels. “Adding small percentages of oxygen leads to a shielding gas with improved wetting action and it also decreases the surface tension of the molten metal, producing a flatter weld. Furthermore, the pinch-off effect is accelerated and smaller droplet sizes created. The result is a more stable metal transfer, a softer arc and reduced  spatter,” says Young.

…improving welding stability plays a major role in total welding costs.

An improved transfer stability ensures that the GMAW welding process is less sensitive to welding parameters and more tolerant to voltage and current variation. Ultimately, this leads to reduced time for machine set-up which improves the overall productivity. Young says that an argon/oxygen mixture of up to 2% oxygen is the ideal for stainless steel applications.

In instances where CO2 is added to Argon in a two-part mix, there is an improvement in the penetration of carbon steel joints. A limit in the percentage CO2 plays a role to obtain a smooth metal transfer in the spray transfer mode and to overcome instability issues.

According to Young, you obtain an improved penetration and welding speed when increasing the CO2 as a result of the increase in temperature in the welding arc. He warns that more than 15% CO2 in argon causes spatter and the instability to re-emerge. According to him, 15% is optimal and in the case of thinner materials where penetration is not required, 3% CO2 is sufficient.

The benefits of three part mixes

GMAW shielding gas mixtures can be optimised to provide the best weld properties for particular applications by combining the benefits of CO2, O2 and argon.

Young elaborates on three part mixtures: “The mixtures generally consist of argon with CO2 of up to 15% and O2 of up to 3%. It is possible to improve the arc stability, optimise metal transfer characteristics, minimise spatter generation and improve penetration and the bead profiles by using all three the gases.”

He explains that there is a vast difference between two part and three part mixtures, in particular when you look at the spatter generated during the welding process – three part mixtures generates far less spatter. “In the long run, welding costs accumulate when you take the time and cost of post-weld activities and cleaning up into consideration. A slightly more expensive gas mixture might make it worthwhile to switch if an accurate cost comparison is done.”

There are numerous other benefits of using three part mixtures: increased quality, ease of use, welding stability is more tolerant to variations in parameter settings, improved profitability, productivity and efficiency.

GMAW shielding gas mixtures can be optimised to provide the best weld properties for particular applications by combining the benefits of CO2, O2 and argon.

Young concludes by explaining that improving welding stability plays a major role in total welding costs. He mentions an example of when you draw a direct comparison between a two part argon/CO2 mix and Air Products’ MagMix3 (three part mix with CO2 in the 5% range), in which case the welding time for a 30cm weld was reduced from 58 to 48 seconds. “This translates into a 20% increase in welding speed with reduced post-weld grinding required, less spatter and a cleaner look.”

Air Products strives to assist customers in streamlining processes and offers solutions to increase production and productivity. As the welding specialist, Sean Young is able to provide expert advice on alternative options when selecting gases.

For more information on Air Products, visit www.airproducts.co.za