Africa

Building upon a pedigree and wealth of skills that stretch back decades, Exxaro Resources may be a relatively young business, but it has already solidified itself as one of South Africa’s largest diversified resources groups. Boasting interests in coal, mineral sands, ferrous and energy commodities, it is the country’s second largest coal producer with current production levels reaching 47 million tonnes per annum (mtpa).

It is no exaggeration to say that the future of African economic development, in the near to mid term at least, is inextricably linked with its mineral resources. It is these that will provide the capital that can be re-invested in building a sustainable business infrastructure whether in manufacturing, services or technology and innovation.

The two blocks, the inland Block B and offshore Block 15, were offered to the company on a nomination basis following a meeting between India’s Oil and Natural Gas Minister, Veerappa Moily, and Sudan’s Petroleum Minister, Hatim Abuelgasin Mukhtar M Elamin, last week. Should the offer be accepted ONGC Videsh would have 100 percent right of investment in the blocks in Block B, which are reported to have established oil reserves, and Block 15, which is currently at the exploratory stage.

In the present climate exploration companies are really struggling to secure investment to complete drilling programmes and progress to a defined resource they can either sell on or start to develop. But companies that have already moved into production and can point to reliable cash flow are in an enviable position.

Established as the Electricity Supply Commission in South Africa in 1923, it was in July 2002 that Eskom was converted into a public, limited liability company, wholly owned by government. Today Eskom is responsible for generating approximately 95 percent of all the electricity used in South Africa and approximately 45 percent of that used in Africa.

Gold output from its Sukari mine, its only producing asset, totalled 91,546 ounces in the December quarter, seven percent up from the same three months a year earlier and eight percent higher than production in the September quarter. This contributed to full-year production of 356,943 ounces from Sukari, which beat 2012’s total by 36 percent. The company’s 2013 guidance for Sukari had been at 320,000 ounces.

Howard Craig was brought in from the oil and gas industry over three years ago: his mission to breathe new life into one of South Africa’s key businesses. Rand Refinery, since 1967 the sole producer of Krugerrands and gold bars destined for the bullion banks of the world along with gold bars, is the pipeline to the market for the greater part of Africa’s gold doré – the semi pure product from the mines.

Over the last two decades the West African country of Ghana has successfully evolved into a stable and mature democracy. Hand-in-hand with this development has been the emergence of its blossoming economy, one that continues to grow ahead of the average for the African region, with GDP growth registered at 15 percent in 2011 and 7.9 percent in 2012.

With limited capital, the company known as Zambeef was incorporated in 1994. Employing 60 staff, slaughtering 180 cattle per month in a rented abattoir, delivering meat via a single Land Rover and selling it through two rented butcheries, it was very much a small-scale operation to begin with. Nevertheless, through a combination of organic growth and acquisitions, the company went on to become one of Zambia’s largest agri-businesses, achieving a compounded organic growth rate of over 20 percent in real terms between 2003 and 2008 alone.