The Latest Mining Industry Trends: An Analysis for 2017

‘Mining will not recover; it will evolve’

Being cyclical, the revival of the mining industry was never a question of ‘if’, but rather of ‘when’ and, more importantly, of ‘what’. When will the industry emerge from the downturn in the face of lengthening cycle times? What kind of mining industry will resurface from the ruins of the recession? In an exclusive interview, Majid Zahid, Group President of the Zahid Group's Energy Division, under which is temporary power provider Altaaqa Global, discusses the crucial role that electricity and technology played in the industry’s observed gradual resurgence.

The mining industry is enduring a period of great uncertainty. In the face of extreme market volatility, stagnant commodity prices, weak demand for products, and suppressed levels of economic growth in established markets, many mining companies around the world are striving to remain buoyant.

In their quest to victoriously emerge from the recession, many miners have implemented cost-cutting initiatives aimed at maximizing customer value with fewer resources. Others have chosen to be cautiously proactive and embarked on exploration programs in a bid to boost long-term profitability. Some have turned to technology to optimize processes and facilitate existing methods.

Part 1: Streamlining operations

Going lean has now become one of the central trends in the industry, as mining companies seek to concurrently reduce manpower, capital, and energy intensity; exploit growth opportunities and maximize the value of their products and services.

“In a highly volatile market”, says Majid Zahid, Group President of the Zahid Group's Energy Division, under which is leading global temporary power provider Altaaqa Global Caterpillar Rental Power, “it is essential for mining companies to strike a balance between controlling costs and capitalizing on growth prospects and profitable opportunities. It is, therefore, imperative for them to ensure the efficient utilization of their working capital.”

Majid Zahid, Group President, Energy Division, Zahid Group

Zahid is of the view that power generation and supply represents an area where mining operations can make significant adjustments to their capital expenditure. “Electricity,” he says, “remains to be the life-blood of mine sites anywhere in the world. However, with the present economic situation, mine operators cannot afford to devote, rather strap, a large portion of their scarce capital to a major expenditure, like a permanent power plant. Considering this, mine operators can instead choose to hire multi-megawatt temporary power solutions.”

A consistent, dependable and sufficient supply of electricity is vital throughout the life-cycle of a mine operation. “Temporary power plants,” says Zahid, “can adequately provide for the electricity needs of a mine site. They can power camp sites during pre-feasibility, feasibility and exploratory stages, and support the establishment of the mine operation after a successful exploration. They can provide power to the machinery and the processing plants, and also to the temperature-control equipment. Obviously, they can also provide the necessary power for expansion.”

“Multi-megawatt temporary power plants could not be more relevant to the mining industry than in these times,” says Zahid, and adds that renting power is a logical decision for any miner looking to effectively streamline its operations.

“For instance, in this economic climate, one cannot overstate the importance of precise allocation of funds and of better management of financial resources. A key benefit of renting power is that payment schedules are fixed and regular over a contracted term. This can help mine operators formulate accurate financial forecasts.”

“Along this line, mining companies should also be mindful of associated costs that come with building or purchasing a permanent power plant.” He calls to mind the cost of spare parts and ancillary, which, he says, are indispensable to the continuous operation of a permanent power plant. “When a mine operator goes for the rental option, all spares and ancillary will be provided by the temporary power company.”

Zahid says that renting multi-megawatt power plants can also prove beneficial for mining companies seeking to optimize their manpower resources. “Mine operators will be happy to know that in hiring power plants, they will no longer need to employ new operators or allocate or re-train existing staff members to manage the plant. Temporary power providers will provide the necessary expert engineering services to ensure the faultless operation of the power station.”

Temporary power plants can also assist in reducing the energy intensity of mine operations. “Hiring power plants will preclude the chances of generators being under-utilized because the capacity of rental power generation equipment can be increased or decreased with respect to the demand of specific mine processes.”

Zahid says that as conventional power plants are usually specified to meet the peak demand of a particular site, they are left under-utilised when the power requirement decreases. “When a power plant is running at part-load, it consumes fuel less efficiently. This will no longer be the case with rental power plants on board, thanks to their flexibility and scalability.”

Part 2: Refocusing on exploration

At the peak of the industry recession, many mining companies dramatically slashed their exploration budgets in the interest of making quick cost savings. SNL Metals and Mining, a global provider of mining information and analysis, supports this observation as it reports that global exploration expenditure declined by 26% in 2014, while exploration budgets nosedived to USD 11.4 billion from USD 22 billion in 2012.

However, industry insiders, like Deloitte, a global provider of financial advisory services, caution that huge cuts in growth CapEx and exploration budgets may have extensive adverse consequences for the miners and the industry at large. Sustained exploration, they say, position mining companies for growth once the market turns. Thus, they warn that foregoing the opportunity to stake early claims may be counter-productive to long-term profitability.

And the industry appears to have heeded their advice, as mining companies and governments have gradually re-focused on exploration activities and identification of new potential assets.
“Exploration”, says Zahid, “is the growth stimulus of the resources sector. Hence, having sufficient power to sustain this crucial activity is fundamental.”

Zahid says that renting power during the exploration stage of a mining operation yields myriad advantages. “By hiring temporary power plants, mining companies will have the freedom to start with a small power plant, and then grow as operations expand. When the long-term prospect of a project is still uncertain, it may not make sense to invest in permanent facilities. Renting power, therefore, protects companies from the uncertain future of mining projects at the exploration stage.”

He also speaks about the latest temporary power technologies which make rental power plants operable anywhere in the world.  “Rental power plants are highly suitable for exploration activities in remote areas because they are containerized and modular, so they are easily transported and installed. The latest-generation temporary power plants have state-of-the-art switching and transformation systems that give them the ability to connect to any location’s grid, regardless of its age, quality or condition. This is possible even without a sub-station, as the same systems allow the power plants to assume the role of a sub-station and connect to available overhead lines or transformers.”

“Temporary power plants also have cutting-edge electric power control and protection systems, which allow them to switch operational mode, from grid to island, to base load or to standby at a push of a button in mere minutes. This is particularly useful for mining companies whose exploration activities take place in areas unconnected to the grid.”

Part 3: Embracing Innovation

In recent years, the mining industry has seen a slew of technological innovations. Technologies once regarded as tangential to the industry are now being tailored to respond to the needs of mining companies. Many of these innovations revolve around automation and the technological optimisation of established processes, primarily in response to the industry’s need to reduce costs and ramp up operational efficiency. And while some mining companies have opted to remain conservative in terms of uptake, many miners are gradually embracing the available technologies in a bid to future-proof their operations.

In a recent interaction with GineersNow, a global engineering magazine, Jean Savage, Chief Technology Officer and Vice President for Innovation and Technology Development at Caterpillar, affirms the crucial role that equipment manufacturers play in shaping the future of mining operations: “Caterpillar has spent over 90 years committed to innovation and technology that help our customers succeed. Most of this innovation has been “in the iron”. Now, our focus has to be on making the iron ‘smart’.”

“Making the iron ‘smart’ means bringing digital solutions designed to improve productivity, efficiency, safety and profitability to our customers. This is not technology for technology’s sake. It is technology that’s focused on solving, and even anticipating, customer problems. We are taking the machines, locomotives, engines and parts we’re so well known for and making them smarter, while also equipping the people who operate them with data that makes them more productive, enhances their safety and improves sustainability.”

Zahid concurs: “Caterpillar believes that be an innovator, a company must be working directly in the service of its customers. As part of the Caterpillar family, we at Altaaqa Global are proud to be well positioned to offer our clients in the mining industry the latest technologies in temporary power generation.”

“For example, it is now possible for our engineers to monitor the status and performance of our engines from any location through Cat Connect. This gives us, temporary power providers, relevant insights on the go, so we can better manage our equipment, optimize their performance or perform preventive maintenance, if necessary.”

“There is also the Cat MicroGrid Solutions, which now allows renewable solar and wind power systems of any size to be delivered to and installed in literally any location on earth. In tandem with our temporary power plants, the solution guarantees a reliable, sufficient and sustainable power supply to any mining operation anywhere in the world.”

“There are also allied technologies gaining traction within the industry. Among these are drones, which can now be used to survey mining sites before breaking ground; 3-D printers, which can now print replacement parts; and augmented reality, which can now be used by technicians to simulate repair cycles. As these technologies are developed in the coming years, we at Altaaqa Global will definitely look into possible ways of integrating them into our systems and processes to further improve our products and enhance the service we deliver to our customers.”

“The list of technologies on offer goes on. And as equipment manufacturers and service providers continue to closely work with their customers to learn more about what they need to drive the growth of their businesses, the number of available technologies will continuously increase.”

The Bigger Picture

Just as the industry went tumbling down on the heels of the boom, industry insiders believe that it is poised for a gradual recovery in the coming months. The green shoots are emerging: Commodity prices are strengthening across the board, commodities has returned to a bull market, and many mining companies are seeing a consistent recovery in value. While the market remains cautious, it welcomes the early signs of the industry’s revival.

But perhaps, ‘recovery’ does not aptly define mining’s next cycle. The recent downturn pushed the industry to redefine itself. In the face of adversity, many mining companies adopted a fresh take on how they operate, allocate resources, engage with technology and seize growth opportunities. What were originally corporate strategies implemented to survive the so-called winter have disrupted the industry and, to a large extent catalyzed its transformation. With miners rising from the downturn stronger and smarter, the next cycle of the mining industry will not only be a recovery – it will be an evolution.


-Ends-


Sources consulted:
1. “Top 10 Trends for Mining in 2016”. www.australianmining.com. 17 August 2016.
2. “Caterpillar: More than Just a Business”. GineersNow. Issue 9. November 2016.
3. “Big Data for All”. www.caterpillar.com.

Power Leads to Economic Resilience

Africa is intensively pushing to build and grow its economy on the back of increased domestic demand, aggressive infrastructure construction activities and economic interconnection among countries in the continent. In fact, in a recent annual meeting in Rwanda, the African Development Bank (AfDB), presenting its African Economic Outlook 2014, reported that the continent’s economy was expected to grow by 4.8% in 2014 and 5.7% in 2015, approximating its growth figures pre-economic downturn.

The ongoing economic efforts in the continent will, naturally, have to be supported by energy. Gone are the days of organic economies, where economic growth could be achieved through mere human and animal strength. In this day and age, almost all economies rely on power to sustain their activities and produce tangible results. Power has become an integral component of any economy or society that outages and blackouts could bring about devastating consequences.

Africa’s power scenario   
To support Africa’s ambition to achieve economic sustainability, diversity and viability, it will primarily need to boost its infrastructure to support the growth of its various industries. To achieve that, the continent will require massive amounts of power. Does it, however, have enough energy to sustain this power-intensive phase?

The International Monetary Fund (IMF) sounded a warning that an escalating power supply deficiency in Africa may hamper the projected economic growth. It has been documented that some 25 countries in Sub-Saharan Africa were facing an energy crisis, evidenced by rolling blackouts, and that some 30 countries in region had suffered acute energy crises in recent years. While the Key World Energy Statistics by the International Energy Agency reported that electricity generation in Africa rose from 1.8% in 1973 to 3.1% in 2011, the continent still remained to have the smallest share globally, despite being the second most populous continent.

With Africa’s population expected to double to approximately 1.9 billion people by 2050, and with the continent’s industries projected to require power at almost full capacity, the World Bank said that a much higher investment would be needed to at least double Africa’s current levels of energy access by 2030. In fact, it is estimated that the Sub-Saharan region would require more than USD 300 billion in investments to achieve total electrification by 2030.

The power instability: The bigger picture
Sub-Saharan Africa was observed to have absorbed much of the blow of the recent power crisis. Blackout brought cities to a standstill and spelt terminal financial losses to small- and medium-scale companies. Mining, one of the region’s pillar industries, was severely affected, even prompting mining companies to shelve expansion plans and curtail local power usage.

Nigeria, for instance, a country that has three times the population of the Republic of South Africa (South Africa), only has one-tenth of the power generation capacity of the latter, and business in the country are reportedly starting the feel the effects of power interruptions in their daily turnover.

In Tanzania, a blackout that lasted for almost a month was experienced in Zanzibar when the underwater cable lines supplying power to the archipelago failed, owing to a huge surge in demand. As a result, residents needed to shell out USD 10 daily to run diesel-powered domestic generators, while businesses requiring refrigeration or heating had to suspend operations until power was restored.

In Angola, the occasional recession of the water level in some of the rivers affects power production, distressing allied services, like water distribution. Luanda’s water supply firm, EPAL, cited that various areas in the city experienced water supply shortage, owing to challenges related to power distribution.

The Democratic Republic of Congo (DRC), touted to be Africa’s biggest copper producer, in May 2014 advised mining companies in the country to suspend any project expansion that would require more power, amidst a power shortage that, the government said, would take years to resolve.

Even the Republic of South Africa, the region’s largest economy, was not exempt from power-related woes. In a communiqué in June 2014, Eskom, supplier of 95% of the country’s electricity, warned residents of a rolling blackout due to load-shedding, which, it said, was necessary to protect the electricity grid from total blackout. Eskom said it had begun scaling down maintenance to prepare for winter, but in the face of a rising energy demand, particularly during peak hours, it appealed to the public to reduce power consumption by at least 10%. If the power demand does not decline, then, the company said, load shedding would be the last resort to avoid a total power shutdown.

At present, solutions are underway – but these, naturally, will not come without a hefty price and cannot be completed within days or weeks. Economic reports indicated that, at the prevailing growth rate of the demand from industries and residents, the region would have to double its power generating capacity by 2025, at an approximate cost of USD 171 billion in South Africa alone.

In order to sustain this projection, the governments in Africa have identified potential sources of funds, such as power rate hikes and foreign investment. Yet, power hikes could stir social unrest and could prompt industrial entities to cut down on operations, putting jobs and production at risk. Foreign investment agreements, on the other hand, could take time to materialize, and the planning, designing, installation and commissioning of permanent power generation projects may entail several years, if not decades.

How temporary power plants can help
Power is indeed a fundamental element for any economy to function, as every sector of the modern society, be it domestic, commercial or industrial, is, in a way or another, dependent on electricity. Nowadays, a power interruption affecting critical facilities, like hospitals, airports, telecommunications towers, data centers, mining facilities and oil & gas installations, has the potential to put an entire country, region or city to a standstill, and in light of globalization and economic integration, the consequences could spill over regional, national or even continental borders.

Hiring interim power plants to bridge the gap between the demand and the supply of electricity yields many advantages, particularly when there is a foreseeable delay in the construction of permanent power generation facilities or while waiting for the permanent power plants to be completed.
When time is of essence, rental power companies, like Altaaqa Global CAT Rental Power, are capable of providing solutions as needed, when needed. Utility companies in the region, like Eskom in South Africa, Kenya Electricity Generating Company, Tanzania Electric Supply Company, the Power Holding Company of Nigeria, the Concelho Nacional de Electricidade in Mozambique, the Empresa Nacional de Electricidade in Angola and the Société nationale d'électricité in DRC, among others, can hire temporary power plants in times when the demand outpaces the supply, when the electrical grid becomes unstable due to a spike in electricity requirement or when power distribution networks are unavailable, like in the rural areas. This will allow them to bridge the supply deficit immediately. Hiring power generators can prove to be a viable solution to power supply inefficiency, bridging the power gap while the permanent power solution is still in progress.

With an immediate solution on hand, the governments and the utility companies can avert resorting to raising the prices of electricity or curtailing the supply of power during peak hours. On a greater scope, an instantaneous resolution of Africa’s escalating energy supply challenges will preclude social and political instability and massive financial losses to businesses and individuals.

The power to go further
The continent that was once regarded as a tail-ender in terms of development, is now making an aggressive move towards economic stability and viability. To sustain the economic growth that Africa is now enjoying, it is imperative that the governments in the continent address the critical issue of chronic power shortage, which could hamper the development of various industries in the countries. The effort that the African governments are putting to address this predicament is commendable, but there exist other entities that can help them to further alleviate the situation. Rental power companies propose solutions that address the issues of urgency, cost-efficiency, reliability, energy-efficiency and environmental safety. It is advisable that utility companies provide for a contingent power solution in cases of power interruption that may lead to operational delays and, ultimately, negative social, political, economic and financial consequences.

The foregoing articles was originally published in the October 2014 issue of IMIESA, published by 3S Media, South Africa.

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Robert Bagatsing

Altaaqa Global

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Power to grow sub-Saharan Africa’s economy

While achieving a buoyant economic climate is a feat in itself, the real challenge lies in staying afloat. To sustain the economic optimism that Africa is now enjoying, it is imperative that governments, particularly in sub-Saharan Africa, address the critical issue of chronic power shortage, which hampers the development of various industries in the region.

Africa has remained resilient in the face of the economic headwind of the previous years. This was the good news delivered by the African Development Bank (AfDB), which recently presented the African Economic Outlook 2014 in its annual meeting in Kigali, Rwanda. Africa’s economic growth, the continent-wide document suggested, was expected to reach 4,8% in 2014 and 5,7% in 2015, on its way to hitting the same numbers as it had before the 2009 economic downturn. The economic expansion, the report indicated, would be driven by domestic demand, infrastructure and a heightened continental trade in manufactured goods. Moreover, the report revealed that direct and portfolio foreign investments were projected to reach US$80-billion in 2014, and financial flows towards the continent were predicted to surpass $200-billion – four times its year 2000 level.

The above-mentioned growth projections bode well for the entire continent, and AfDB suggested that in order to sustain the momentum and achieve economic sustainability and a development breakthrough, Africa would need to participate more actively in the global production of goods and services. In this way, added AfDB, the continent could boost its economic diversification, domestic resource mobilization and investments in critical infrastructure.

Is there enough power, though?
Since the industrial revolution, power has always been identified as a key factor in encouraging economic growth, and that still holds true today. In the light of Africa’s ambition of achieving economic sustainability, diversity and viability, the continent needs to ramp up its production and industrial activities, and to achieve that, it needs the staying power. The question, however, is “does the continent have enough energy supply to power its way to the future?”

Though the International Monetary Fund (IMF) concurred with AfDB, it sounded a caveat when it said that the observed power supply deficiency in the continent may rein in economic growth. It has been documented that some 25 countries in sub-Saharan Africa were facing an energy crisis, evidenced by rolling blackouts, and that some 30 countries in region had suffered acute energy crises in recent years. While the Key World Energy Statistics by the International Energy Agency reported that electricity generation in Africa rose from 1,8% in 1973 to 3,1% in 2011, the continent still remained to have the smallest share globally, despite being the second most populous continent.

Nigeria, for instance, a country that has three times the population of the South Africa, only has one-tenth of the power generation capacity of the latter, and enterprises are already complaining about regular power interruptions. In Tanzania, a month-long blackout was experienced in Zanzibar when the underwater cable lines supplying power to the archipelago failed, following a surge in demand. As a result, residents were paying $10 daily to run diesel powered domestic generators, while businesses requiring refrigeration or heating had to suspend operations until the power was restored. In Kenya, it has been observed that only 25% of the population had access to electricity, and that only 5% of the country’s rural areas had access to the grid. The occasional recession of the water level in some of Angola’s rivers affects power production, disturbing other services, like water distribution. Luanda’s water supply firm, EPAL, cited that various areas in Luanda experienced water supply shortage, owing to challenges related to power distribution.

Touted to be Africa’s biggest copper producer, the Democratic Republic of Congo (DRC) advised mining companies in the country to suspend any project expansion which would require more power, due to a power shortage that, the government said, would take years to resolve. While the country would reportedly institute an electricity-rationing program, mining companies were encouraged to postpone signing new contracts, in an effort to slowdown the growth of electricity demand in the country. Even the region’s largest economy, South Africa, was not exempt from power-related woes. In fact, in a recent communiqué, Eskom, supplier of 95% of the country’s electricity, warned residents of a rolling blackout due to load-shedding, which it said, was to protect the electricity grid from total failure. Eskom said it had begun scaling down maintenance to prepare for winter, but in the face of a rising demand, particularly during peak hours, it appealed to the public to reduce power consumption by at least 10%. If the power demand does not decline, then, the company said, load shedding would be the last resort to avoid a total power shutdown.

With Africa’s population expected to double to approximately 1.9 billion people by 2050, the World Bank said that a much higher investment would be needed to at least double Africa’s current levels of energy access by 2030. In fact, it is estimated that the sub-Saharan region would require more than $300-billion in investments to achieve total electrification by 2030.

Boosting energy
As a response to this pressing need, countries in the region are mapping out strategies to supply more energy through alternative solutions. In the DRC, for instance, the Grand Inga hydroelectric project, expected to boost the country’s power supply by 44 000 MW, is said to be gaining traction, while in Zimbabwe upgrades to the Kariba South hydropower and the Hwange thermal coal plants, forecast to add about 300 MW and 600 MW, respectively, are reportedly in the pipeline. South Africa is also reported to be cooking up the building of two new coal-fired power stations at Kusile and Medupi, expected to individually add approximately 4 800 MW of capacity.

The afore-mentioned initiatives are a testament to the tremendous attention that these countries are paying to their respective power generation challenges. Governments and private entities alike have been putting years’ worth of research and investigation, and billions worth of investment, to draw up the myriad adverse economic and social effects of electricity supply deficiency. A crucial element in the equation, however, is time, and in a world governed by more stringent business practices, faster turnarounds and heightened interdependency, the essence of time transcends chronos. Today, time may mean the difference between profit and loss, between political unrest and stability, and between economic growth and uncertainty.

The price of power: Focus on Southern Africa
Southern Africa was observed to have absorbed the blow of the power crisis in recent years. Blackouts brought cities to a standstill and spelt terminal financial losses to small- and medium-size companies. One of the region’s flagship industries, mining, was also unfavorably affected, prompting mining companies to halt expansion plans and repress local power usage. When Eskom deemed to cut down its electricity export to support its power demand at home, the electricity supply in Botswana, Namibia, Mozambique, Lesotho, and Swaziland, countries that import power from South Africa, was severely affected.

The foregoing, however, was not unexpected. In 1998, the government of South Africa apparently acknowledged the necessity of investing in electricity infrastructure amidst the threat of a power crisis looming large. It deemed, therefore, to privatize Eskom to inject new capital, thus encouraging a ramp up on its efficiency. The finalization of any agreement, however, was reported to have taken longer than expected, and by 2008, the utility found itself unable to support the then-existing power demand.

Other governments in the region were said to have admitted to underestimating the trajectory of power requirements. In 2008, Botswana Power Corporation said that the energy forecast was skewed by the proliferation of new mines, which meant a steep spike in power demand, not only in Botswana, but also in other countries, such as Zambia.

At present, solutions are underway – but they, naturally, will not come cheap. Economic reports indicated that, at the prevailing growth rate of the demand from industries and residents, the region would have to double its power generating capacity by 2025, at an approximate cost of $171-billion in South Africa alone. Of that amount, $45-billion would supposedly have been needed before 2013.

In order to sustain this projection, the governments have identified potential sources of funds, such as approved power rate hikes and foreign investment. Yet, power hikes could stir alarm and protest from the citizens and trade unions, and could prompt industrial entities, like mining corporations, to cut down on operations, putting jobs and production at risk. Foreign investment agreements, on the other hand, could take time to materialise, and the planning, designing, installation and commissioning of alternative power generation projects may entail years, if not decades.

Bridging the power gap now
Unstable electricity production and regular power interruptions bring about a multitude of negative impacts to any country’s economy, business and citizens. In today’s world, power has become a fundamental element for any economy to function, as every sector of the modern society, be it domestic, commercial or industrial, is heavily dependent on electricity. Nowadays, a power interruption affecting critical facilities, such as hospitals, airports, telecommunications towers, data centers, mining facilities and oil & gas installations, has the potential to put an entire country, region or city to a standstill, and in light of globalization, the consequences could transcend national or regional borders.

Hiring interim power generation plants to bridge the gap between the demand and the supply of electricity yields many advantages, particularly when there is a foreseeable delay in the fruition of permanent power generation facilities or when the temporary power is immediately needed. It was clear in the above-mentioned examples that countries in sub-Saharan Africa are looking to mitigate the observed deficiency in power supply by upgrading existing facilities, soliciting foreign investment to build new power plants and harnessing the potential of alternative sources of energy, including geothermal, solar, hydro and nuclear. While the aforementioned initiatives have recognized and acknowledged merits and potential, they may require further research, planning, designing and legislation, and additional physical facilities to be operational; and this takes time.

When time is of essence, rental power companies, like Altaaqa Global CAT Rental Power, are capable of providing solutions as needed, when needed. Utility companies in the region, can hire temporary power plants in times when demand outpaces the supply, when the electrical grid is unstable or when power distribution networks are unavailable, like in the rural areas. This will allow them to bridge the supply deficit without waiting for another day. Hiring power generators can prove to be a viable solution to power supply inefficiency, bridging the power gap while the permanent power solution is still in progress.

Powering the way to the future
The world welcomes the positive outlook of Africa’s economy. The continent that was once regarded as a tailender in terms of development, is now making an aggressive move towards economic stability and viability. While achieving a buoyant economic climate is a feat in itself, the real challenge lies in staying afloat. To sustain the economic optimism that Africa is now enjoying, it is imperative that the governments, particularly in sub-Saharan Africa, address the critical issue of chronic power shortage, which could hamper the development of various industries in the countries. The effort that the region’s governments are applying to address this predicament is commendable, but there exist other entities which can help them to further alleviate the situation. Rented power addresses the issues of urgency, cost-efficiency, reliability, energy-efficiency and environmental safety. In recognition of the indispensable role of electricity in today’s modern society, it is advisable that utility companies provide for a contingent power solution in cases of power interruption that may lead to operational delays and, ultimately, negative social, economic and financial consequences.

END

* The foregoing article was published in the June 2014 issue of Energize (EE Publishers, South Africa). To read more: http://bit.ly/1pTKEgj *

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Robert Bagatsing

Altaaqa Global

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rbagatsing@altaaqaglobal.com

Altaaqa Global Opens East Africa Office

The new Nairobi office will serve as a hub for Altaaqa Global’s sales and operations in the East Africa region

Dubai-based Altaaqa Global CAT Rental Power, a global provider of temporary power solutions, has recently opened a branch in Nairobi, Kenya to serve the East Africa territory. 

Peter den Boogert, General Manager of Altaaqa Global, said, “The business activities in the East Africa region are flourishing and the economy has been thriving throughout recent years, resulting in an increased demand for power. At Altaaqa Global, our objective is to be on the ground as quickly as possible when customers require our energy solutions, and our new branch will enable us to reach this region faster than before. We realize that our industry is driven by emergency needs and hard deadlines, but uses equipment that requires substantial lead times to acquire. With the combined fleet of our sister company in Saudi Arabia, Altaaqa Global has approximately 1,400 MW of rental power readily available so that we can focus our efforts on rapid deployment and customer satisfaction.”  

Steven Meyrick, Board Representative of Altaaqa Global, commented, “This strategic expansion is in line with our vision to be the leading and the most preferred temporary power solutions provider before year 2020. During our geographic expansion, we will continue to heavily invest in human resources, further improve our business processes, and expand and diversify our fleet of CAT power generators. We now have the capability to provide power plants running on various fuel, such as piped natural gas (PNG), liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), flare gas, diesel, dual-fuel (70% gas and 30% diesel), and, very soon, heavy fuel oil (HFO).”

Altaaqa Global will also provide environmental and social programs in East Africa. Meyrick added, “As part of our commitment to help local communities in East Africa and, eventually, in the entire Sub-Saharan region, we are actively embracing corporate social responsibility initiatives that will help alleviate the social needs of our immediate environs.”

“East Africa has a promising economic outlook within the energy and engineering sectors,” said Majid Zahid, Strategic Accounts Director of Altaaqa Global. “We are delighted to open our new office to provide interim power plants ranging in size and with the latest power generation technologies. We are determined to serve various industries, such as oil & gas, petrochemicals, mining, electric power utilities, industrial manufacturing and maritime. Through our office in East Africa, Altaaqa Global will be able to provide our clients with uncompromising personalized service. In the energy rental industry, all requirements are treated as individual and unique, and we will be able to deliver the exact rental power station to all of our enquiries using our local knowledge and global expertise.”

East Africa has experienced encouraging economic growth in recent years, and is gradually being regarded as an important supplier to different markets around the world. Market analysts attribute the notable growth of the region to several factors, including large-scale infrastructure development, economic reforms and new discovery of energy and natural resources. Kenya, among other African countries, is expected to become a vital regional financial and business hub, with a consistent 5% to 7% economic improvement year-on-year. Tanzania, Somalia, and Uganda are also predicted to make inroads into economic stability, following the discovery of oil and gas in their territories. Additionally, Ethiopia and Rwanda are projected to show remarkable development, owing to an expansion in agricultural activities and a strong reform record, respectively.

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About Altaaqa Global

Altaaqa Global, a subsidiary of Zahid Group, has been selected by Caterpillar Inc. to deliver multi-megawatt turnkey temporary power solutions worldwide. The company owns, mobilizes, installs, and operates efficient temporary independent power plants (IPP’s) at customer sites, focusing on the emerging markets of Sub-Sahara Africa, Central Asia, the Indian Subcontinent, Latin America, South East Asia, the Middle East, and North Africa. Offering power rental equipment that will operate with different types of fuel such as diesel, natural gas, or dual-fuel, Altaaqa Global is positioned to rapidly deploy and provide temporary power plant solutions, delivering electricity whenever and wherever it may be needed.

http://www.altaaqaglobal.com/press-media/press-releases

About Zahid Group

Zahid Group represents a diverse range of companies, offering comprehensive, customer-centric solutions in a number of thriving industries. Some of those include construction; mining; oil & gas; agriculture; power, electricity & water generation; material handling; building materials; transportation & logistics; real estate development; travel & tourism; waste management & recycling; and hospitality.

http://www.zahid.com/

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Altaaqa Global

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rbagatsing@altaaqaglobal.com

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