Test Drive 2q:2014 | Page 41

M&A Merger & Acquisition Project Name: African Minerals M&A Value: US$ 2 Billion Inception: Feasibility African Minerals Ltd. (AMI) is studying US$2 billion acquisitions in commodities such as copper and steelmaking raw materials. “There are significant opportunities in West Africa, across commodities and across countries, that we will be extremely well-positioned to take advantage of,” Chief Executive Officer Keith Calder said in an interview, adding that his primary focus is the existing Tonkolili mine and Pepel expansion project. African Minerals, which has a market value of US$1.2bn, began iron-ore shipments from Tonkolili in November 2011, making it Sierra Leone’s largest producer. The price of the steelmaking raw material, the most-shipped commodity after oil, more than tripled in the past decade, encouraging mining companies to expand in new regions and away from more traditional hubs such as Brazil and Australia. African Minerals said it’s exporting at a rate of 20 million metric tons annually, meeting its secondquarter target. The stock jumped the most in more than two months in London trading, rising 8% to close at 235 pence after earlier rising as much as 15%. The company forecasted April figures of 13 to 15 million tons of exports for the year ending 30th June 2014 after reaching its export capacity, it said in a statement. Ten shipments left its port over 30 days from May 18th to June 16th. US$ 1.5 Billion JV Joint Venture Project Name: Sierra Leone jetty EPC Value: Est. 1.5 Billion Inception: 2Q2014 Global contracting company BAM International in 2Q: 2014 announced that in conjunction with its joint venture (JV) partner civil engineering construction contractor Stefanutti Stocks, had been awarded the contract for the engineering, procurement and construction (EPC) of a petroleum jetty at the Kissy Oil Terminal of Freetown, in Sierra Leone The JV would design and complete the project, which would provide a key import and export facility for the country, and a modern export base for ethanol, over a one-year period for trading and downstream company Oryx Energies’ local affiliate PetroJetty, BAM International said in a statement. The new jetty would comprise a 240m steel trestle on steel piles with a concrete offloading platform of 12m x 25m, four mooring dolphins, two breasting dolphins and a fender rack. BAM International sister company BAM Leidingen & Industries would engineer and supply the hose tower, the fire fighting system and the piping and electrical components for the top works of the structure. US$ 4.2 Billion VALUE US$ 2 Billion VALUE VALUE SHAKERS SHAKERS: Total Value of Deal flows for shakers in 2Q:2014 US$ 700 Million PPP Public-Private-Partnerships Project Name: Bumbuna Phase 2 HEP Value: US$700 Million Inception: 2Q:2014 The US$700m expansion of the Bumbuna Phase II hydroelectric power project has gained momentum after five engineering, procurement and construction (EPC) contractors were short listed for the project. The joint venture partners believe they have selected “some of the most respected” EPC firms from across five continents. Meanwhile, Joule Africa has completed the feasibility study for the Phase 2 development and sustainability consultancy. Environmental Resources Management has embarked on environmental and social studies. Endeavour Energy, a privately owned independent power development and generation company,revealed that it has entered into a joint development agreement with international power developer Joule Africa. As part of the agreement, the two companies will work together to develop and construct the US$700M Bumbuna Phase II Power Project, a hydroelectric power project in Sierra Leone projected to add an additional 202 megawatts to the existing 50 megawatts at Bumbuna Phase I.