the sustainable business review q1 2016 issuu

PEOPLE, PRACTICE & PURPOSE QUARTER 1 2016

KARAHMAAIN THE RIGHT DIRECTION

SEAFARMS GROUPPLANS TO LAUNCH AUSTRALIA INTO A

AQUACULTURE LEADER

WESTPORTADOPTS ALL INCLUSIVE OBJECTIVES OF

ECONOMIC RETURNS, PRODUCTIVITY AND SUSTAINABILITY

COPPER MOUNTAIN MINING CORPREVIVING LOCAL ECONOMY

2

http://www.abb.com/

Brian JacksonEditor

8

183042505868768896

Hello and welcome to this quarter’s edition of The Sustainable Business Review online.

With some respected commentators suggesting that the world’s economy is likely to go through yet more tough times, we are delighted to showcase a host of companies whose business platforms and approach to corporate social responsibility and sustainability clearly demonstrates that they are in a solid position to weather any potential economic and financial storm and indeed will be able to consolidate and build their businesses.

Our cover story is Copper Mountain whose strategy of maintaining a low risk profile through project diversification and astute financial management allows them to successfully operate in torrid times for large sectors of the mining industry. We are also pleased to feature a young and dynamic company called Qatar Cool. This company centralises cooling systems of buildings throughout the region and enables the saving of carbon emissions and reduces energy use by up to 60%, whilst lowering noise pollution. A truly remarkable success story.

As with previous editions, we love to celebrate the diversity of industry and companies across the globe and alongside Copper Mountain

and Qatar Cool we also turn the spotlight on IOS Geo, a Quebec based team of highly experienced and qualified geologists helping mining companies with mineral exploration throughout Canada, Barbados Port , a major gateway for the economic health of the region , Health City Caymen Island a visionary project spear heading medical tourism and providing cutting edge medical treatments in the Cayman Islands , to Seafarms , the largest producer of farmed prawns in Australia . These are just a few of the featured companies in this edition.

A prevalent and common theme running through all of the companies featured is their outstanding commitment to corporate social responsibility, sustainability and of course the bottom line. These three over riding factors are embedded in the company’s value systems and stands the min excellent stead should trading conditions prove to be difficult.

We hope you enjoy this quarterly edition and should you wish your company to be featured, whether it be for example a particular innovation, a record sales year, an initiative in sustainability or CSR, we would welcome the opportunity to celebrate your success!

Brian Jackson

SPECIAL REPORT:

pROFILE:

EDITOR’S NOTE

3Quarter 1 2016 - The Sustainable Business Review

Editor’s Note

COPPER MOUNTAINMINING CORP

IOS

CERRO NEGRO

PORT OF BARBADOS

HEALTH CITY CAYMEN

WESTPORT

SINGAPORE’S PUBLIC UTILITIES BOARD (PUB)

KAHRAMAA

QATAR COOL

SEAFARMS GROUP

QUARTER 1 2016CONTENTS

TEAMEditorial:Brian JacksonSusette HorspoolMark Mackay

ProductionKaren HueJason OlayinkaArantxa Salas CifuentesArabella Sansegundo Mulero

ResearchJohn MillsJoseph Philips

EVENTS:

May 21, 2016 - May 28, 2016 Perth, AustraliaPan Pacific, 207 Adelaide Terrace

ALTA 2016, organised by ALTA Metallurgical Services, will be the 21st year of one of the world’s premier annual metallurgical events. The conference is an annual gathering of the global Nickel, Cobalt, Copper, Uranium-REE and Gold-Precious Metals industries and features highly focused programs, topical forums and presentations by key international speakers. The event comprises:

Three international conferences in one week• Nickel-Cobalt-Copper Sessions including Hydromet

Prºcessing Sulphides Forum & Panel

• Uranium-REE Sessions including Membranes in Uranium Ore Processing Forum & Panel

• Gold-Precious Metals Sessions including Refractory Gold Ores Forum & Panel

Three Short Courses• The A-Z of Copper Ore Leaching

• Solvent Extraction and its Application to Copper, Uranium and Nickel-Cobalt

• Uranium Ore Processing

Date: March 15-16th 2016 • LondonVenue: The Banking Hall, 14 Cornhill, EC3V 3ND

The climate deal struck in Paris last year surpassed expectations. More world leaders gathered to see it through than had ever met together before. The deal came hot on the heels of a global agreement on a set of new “sustainable development goals”. But how, in practice, are these lofty aims to be achieved? And what role should businesses and investors play in shaping new thinking and turning ambition into action?

Speakers: Alejandro Agag :-CEO, Formula E, Brett Begemann -President and Chief Operating Officer, Monsanto, Per Bolund- Minister for Financial Markets and Consumer Affairs and Deputy Minister for Finance, Sweden. And lots more

Join the conversation @EconomistEvents #EconSustainability

http://www.economist.com/events-conferences/emea/sustainability-summit

THE ECONOMIST: THE SUSTAINABILITY SUMMIT

ALTA 2016 NICKEL-COBALT-COPPER, URANIUM-REE AND GOLD-PRECIOUS METALS CONFERENCE & EXHIBITION

THE SUSTAINABLE BUSINESS REVIEW

4 Quarter 1 2016 - The Sustainable Business Review


JUNI 2-4, 2016

TURKEY, Izmir

Venue: Fair Izmir Expo Center in Izmir, Turkey.

Future Fish Eurasia, the 8th International Fair for Fish Imports/Exports, Processing, Aquaculture and Fisheries event. Future Fish Eurasia is organised with the full support of the Ministry Of Food, Agriculture & Livestock, Aegean Exporters Association, Turkish Seafood Promotion Committee, the leading companies of the industry and the universities.

Local OrganisersAsoc. Prof. Dr. Özgür Altan (Fisheries Faculty, Ege University, Turkey)

Dr. Türker Bodur (Fisheries Faculty, Akdeniz University, Turkey)

For More information: www.future-fish.com

Date: 7-9 May

Venue: Inkosi Albert Luthuli Convention Centre (Durban ICC), Durban Exhibition Centre (DEC),

KwaZulu Natal, South Africa.

Show Days: 7 - 9 May 2016INDABA is one of the largest tourism marketing events on the African calendar and one of the top three ‘must visit’ events of its kind on the global calendar.

It showcases the widest variety of Southern Africa’s best tourism products and attracts international buyers and media from across the world. INDABA is owned by South African Tourism and organised by Pure Grit Project and Exhibitions Management (Pty) Ltd

INDABA 2016

FUTURE FISH EUROASIAMIDDLE EAST & CENTRAL ASIA AQUACULTURE

NEWS


http://www.future-fish.com



http://personal.rbs.co.uk/

CATEGORY

http://personal.rbs.co.uk/


8

MOUNTAIN MINING CORP

CO

PP

ER

REVIVING LOCAL ECONOMYThe Sustainable Business Review - Quarter 1 2016

COPPER MOUNTAIN MINING CORP

9

In 2013 Copper Mountain Mine’s gross

profit for the year was $8.1 million. In

2014 the reopened mine, now the third

largest in Canada, produced a record

81 million pounds of copper, 22,600 ounces of

gold, and 443,800 ounces of silver, generating a

record revenue of $265 million for the year.

The newly lucrative copper mine is a 20–minute

drive from local communities, like Princeton, British

Columbia, that provide it with goods, services

and personnel. These communities, existing until

recently on work stemming from the declining forest

industry, welcomed the reopening of the mine,

which has already added hundreds of millions of

dollars to the area’s economic base.

MOUNTAIN MINING CORPREVIVING LOCAL ECONOMY Quarter 1 2016 - The Sustainable Business Review


10 The Sustainable Business Review - Quarter 1 2016

THE health and safety of its 240 employees is one of Copper Mountain

Mining Corporation’s sustainability objectives,

the other being environmental management,

according to the company website. With the

reopening of the mine in 2011 the company

took action on those two goals. In 2014 it won

BC’s Edward Prior Award for a combination



of high production and low accident rates.

The company’s record, as of that week, was

1.5 million hours worked without any safety

incidents that cost the workers time off.

Copper Mountain’s President and CEO,

Jim O’Rourke, responded to the award, “I

congratulate our mine employees for their

dedication to safety . . . During the first 19 days

of April, the mill has operated at record rates

and throughput averaged 39,800 tpd. We have

a strong operating team and I am confident that

the team will continue to maintain their great

safety record while they continue to maximise

production.”

THE heritage mine reopened when exploratory tests showed that its veins

of copper, gold, and silver went far deeper

than anyone realised. Prior to that, high grade

copper had been mined from shallow open pits

in three main locations, which were abandoned

when costs became too high. As a result of

the new assays, the company decided to mine

deep into the area between those shallow pits

and expand its width to include them. This

expanded and deepened mine is expected to

last around 17 years and be highly productive.

Copper Mountain Mining first acquired the

18,000 acre property by purchasing Similco

Mines in 2007, and immediately started a

geophysical survey that included a 44,000

metre drill program. The following year they

finished drilling an additional 60,000 metres,

which showed a total potential of five billion

pounds of copper, plus secondary amounts of

gold and silver.

In 2008 they also completed an independent

economic feasibility study (Hatch Engineering)

that confirmed the financial viability of reopening

the mine. That year they joined forces with

Japan’s Mitsubishi Materials Corporation to



help with financing and to purchase 100% of

all copper mined. In 2009 Mitsubishi bought

25% ownership of the project.

The area was originally mined underground,

starting in 1884. In 1923 a milling facility

was added nearby and underground mining

continued until 1957. In 1968 open pit mining

started, which continued until the mine closed

in 1996. By that time the mine had produced

over 1.7 billion pounds of copper.



Copper Mountain Mining is operating the

expanded mine using open pit technology.

The company set up a mill onsite to handle

increased production and bought $120 million

worth of new mobile equipment. The new fleet

consists of 13 brand new 240 ton haul trucks

(bringing the total to 21), five 260 ton haul trucks,

two Komatsu PC 8000 hydraulic shovels, the

world’s largest mechanical loader, four rotary

drills, and a fleet of support equipment. In

2014 the company installed a secondary cone

crusher in its onsite mill, the Raptor 2000 (the

world’s largest), thereby increasing production

speed and efficiency to 37,500 tons per day.

Because of its prior operation, the mine

already owned water rights and had a 158 kV

power line to supply electricity, which helped

keep costs low. Even so, capital costs came

up to $438,000,000, which Mitsubishi helped

acquire from Japanese banks at very attractive

interest rates, according to O’Rourke. He

said, “Having a developed infrastructure

considerably reduces the construction risk and

also the capital cost.”

Some additional savings have come from

upgrading the quality of the roads to save

wear and tear on vehicle tires. Each tire on

the haulers is worth about $42,000 and each

hauler has eight of them. The tires are also

difficult to acquire. Prior to the road upgrade

they were lasting about four months each, but

now are lasting eight. The company is also

working with explosives suppliers and others

to find more efficient ways of operating.

All the mine’s equipment is used in the conventional production process of crushing, grinding, and flotation to produce copper concentrates laced with gold and silver. The company prepares the higher grade copper for immediate shipment from Vancouver to Japan for smelting, and transports lower grade slag to stockpiles for future processing using more sustainable methods, once developed. The slag is transported via a one kilometre long conveyer belt to save fuel costs.

Call 1-866-335-3369 or visit lubricants.petro-canada.com

Petro-Canada brings over 30 years of mining experience to the development

of a full suite of products to help keep mines like Copper Mountain running

consistently and profitably. We believe that reducing downtime is more than

a promise; it’s a commitment to delivering our Tangible Savings Solutions

shift after shift. Call a Petro-Canada representative today to discover how

our top-performing lubricants will maximize uptime and productivity for

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It’s operations like yours that are leading the way in mining. And it’s lubricants like ours that can keep it that way.

When the world looks to you Look to Petro-Canada Lubricants

Petro-Canada is a Suncor businessTMTrademark of Suncor Energy Inc. Used under licence.

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With its utilities the mine reclaims 78% of its

wastewater for reuse in production, while

obtaining fresh water from the Similkameen

River. Electricity comes from a 61 megawatt

VC hydro substation.

All mining operations are automated and

monitored from a central control room, including

a vehicle dispatch system, with computer

screens that show each step of the operation.

The mine operates 365 days per year, day and

At the heart of every mine beats the machinery that keeps it running. Petro-Canada

Lubricants is dedicated to providing high-performance solutions to protect these vital

components for industry leaders like Copper Mountain. Petro-Canada Lubricants is

an integral part of the Copper Mountain operation, ensuring mine operations and

special projects avoid unplanned downtime.

“What really sets Petro-Canada Lubricants apart is their experience in the mining

industry, their understanding of our equipment and their local support to help us while

we got started, and ongoing,” explains Tom Blake, mine maintenance superintendent

at Copper Mountain.

With an extensive line of proven products, Petro-Canada Lubricants is the partner

Copper Mountain trusts for all of its lubricant needs.



night, even when it snows. These practices

have resulted in the record production for the

company that benefits the mine’s neighbouring

communities.

Former mining human resources officer, Frank

Armitage, now 71 years old and the mayor

of Princeton, who put together the initial 270

worker crew that reopened the mine, says

that local communities are flourishing. Says

Armitage, “Princeton suffered for a number of

years, and now it [the mine] is a real foundation

block to our economy.”

In addition, the mining company is committed

to working in harmony with the government, the

public, First Nations, and other stakeholders to

increase understanding of company activities

relative to environmental protection. One of

its former Vice Presidents (now Environmental

Consultant), Peter Campbell, has years

of experience managing environmental

assessments and permitting for the Red Chris

Project, Huckleberry Mine, and the early years

of the Similco Mine.



“Our people are our greatest asset.”

CEO O’Rourke says. “We believe we’ve built

an extremely strong team and this will bode

well for the future.”

As proof, his staff are developing operating

efficiencies, which he believes are key to the

mine’s success. They’re continuing with new

explorations, digging 200 metres below the

current 350 metre deep design pit, to increase

production in the future. They’re looking out

for safety issues and encouraging suppliers to

become more efficient too. What more could

the company and its communities ask for?


IOS

Services Geoscientifiques, IncIOSHOW TO BE THE LEADING FIRM



IOS Services Geoscientifiques, Inc. is known

as the leader in mineral exploration services in

Québec, the most favorable juridiction in Canada

for mining. How comes a firm established

outside the prolific Abitibi area or the big financial

centres can establish itself as such? Simply

by broadening its offering and by capitalizing

on its most precious asset: its talented human

resources! Easy to say, in fact everybody say

so! But the challenge is to maintain your talent

through the whirlpool of an industry driven

by disruptive burst and bust cycles. And they

do so by preparing ahead for these inevitable

cycles of the mining industry, even through

economic downturns. This preparation creates

a stable, sustainable environment that benefits

employees, clients, and the company itself.

In 1992 CEO Réjean Girard and five other

master and Ph.D. students started IOS Services

Géoscientifiques. Being located in the frenchmost

part of Quebec, they initially focused on that

relatively small market by offering a wider variety

of services, rather than specialising and tackling

the large North-American market. The strategy

paid off. Specialized firms are very severely hurt

by recession, when their specialty get out of

fashion.

IOS is now the largest and most diversified

business of its kind, both in Quebec and in

Canada. Even in the midst of the worst recession

IOS


in 40 years, it still employs 40 full time staff, 70%

of whom are scientists by training. While most

of its business is domestic (80%), it now lure the

national market. The company has carried out

1,350 projects so far, for hundreds of clients,

both juniors companies, multinational firms and

governments. And strategy remained the same

through the years, the broad spectrum of services

enable the firm to reach a very diverse clientele,

and once in the while one of these clients comes

with the big mandate.

The capability to offers a wide spectrum of

services, from thin section manufacturing to

full scale resource definition drilling, is the

magic trick as well as the challenge! Pooling a

community of employee with a broad spectrum

of talents and expertise enable cross-breeding

of the knowhow which benefits to all levels the

services. Field expertise on various mineral

deposit is transmitted to the petrographer, which

benefits the geochemist, etc. Being exposed

to a vast array of projects, with any imaginable

commodities such as gold or iron or graphite or

even limestone, opens the minds of the geologists

and enable them to think out of the boxes where

other stay in their ruts.

Booms and

Busts



Mining is a boom-and-burst driven industry at an unimaginable

scale. The biggest challenge a service company like IOS faces

is learning to navigate economic cycles. And these economic

cycles are now even shorter than the time required to develop

a mine. Furthermore, most mine life are now barely longer

than these economic cycles. Mining is driven by speculation

on commodities, which is short-term in nature. This brings

periods of follies and severe drought. And when the doldrums

knock at the doors, most mine managers panic and slash

into exploration expenditure, assuming they will be capable

to simply buy-out the resources they need at the appropriate

time. So when the ore runs out everyone is exploring at once

without having the properly trained staff. This is what creates

the main boom cycle in the mineral exploration industry. And

the first to suffer these cycles are the people working in mineral

exploration. These cycles create an exodus of the talent,

and everything needs to be rebuilt at each cycle. However,

it takes years and years to train a geoscientist... And this is

where is hidden our secret recipe... Maintaining our skilled

workforce ready at any cost for the next boom. Because the

money made in boom time overwhelmingly compensate for

the losses of the doldrums.

With experience, we can fairly predict upcoming boom cycles

by watching industries that use the metals. For example, as

the renewable industry picks up, the need for copper wire

grows. A hybrid car uses 200 pounds of copper, as compared

with 40 pounds used by the average car. Utilities also use

copper wire. So the copper industry will boom as more and

more countries swing toward green infrastructure and green

products. Same with all the exotic metals used by the battery

industry such as lithium, vanadium or graphite.

Meanwhile, Réjean says, the entire mining industry is in

a deep recession - worse than the last 45 years and he

sees indications that the recession is artificial. Exploration

expenditures outside of mine site are horrible, at 8% of what

IOS




it was four years ago. And in paradox, prices

of metals are correct considering they are prized

in overinflated US dollars. For example, at

US$1,060 per ounce of gold (C$1,600), when the

price of oil collapsed and when labor, electricity

and other cost are in Canadian dollars, it do not

affected the mining industry that much. Yes the

metal price collapsed, but from a ballooned price

down to a sustainable price!. Yet the miners

makes profits and there are investors capable to

bank big money on gold.

One of the problem of the exploration industry

is access to capitals. These companies raise

their money on the stock market, where the

small capitalization companies are devaluated.

Why investing in a small cap penny stock if blue

chips stocks provide 20% per year return on

IOS


investment? Because the Dow Jones is out of

balance with the profits of the big corporations,

and because the mining juniors are so devaluated

that any market wrinkle will boast them! Things

could change quickly, according to Réjean. The

whole situation is volatile and unpredictable.

Just be ready!

During troubled times like this, a proactive

government can help prop up the industry. In

May 2011 the government of Quebec passed

“Plan Nord” to develop the scarcely populated

area of Northern Quebec. The plan encourages

mining and provides numerous incentives to

resource companies. The government also

helps reduce costs by offering substantial

income tax credits for mineral exploration. So,

even the government consider its time to invest

in our resources...

Accordingly, in 2015 a third of IOS’s revenue came

from research projects for the government’s

Department of Natural Resources. In addition,

IOS actively networks with many of the leading

geoscientists in the province’s universities

and national laboratories. This type of work

represents one of the company’s survival

strategies and a cornerstone for innovation.

IOS Sustainability

StrategiesIOS is the only service company in Quebec

that effectively carries out the entire mineral

exploration process. This is a big difference

from what we see in the rest of Canada. Québec

is a small market, isolated by its language

and culture. You cannot built companies on

specialized services in Québec, the market is

simply too small. So we need to fill-in every

niches. In doing such, we can touch a very

broad base of client. As the mining industry

grows, IOS identifies new niches and jumps in

to fill them first, thereby keeping its lead over

competitors.

And through time, we can capitalize on our

reputation and establish ourselves with a

few highly specialized services which can be



exported to the rest of the country despite our

language handicap. An example is out new

“ARTGold” process, which enable to recover

micron-size gold particle from sediments, a

technique broadly used in the gold exploration.

However, our process enable recovering gold

grains an order of magnitude smaller than the

leading competition, which enable to client to

reduce sample size and thus overall costs.

It’s a million dollar R&D investment, but it

will pay back soon. Another example is the

partnership we developed with BearingPoint,

a leading business management firm, in regard

of applying artificial intelligence to mineral

exploration. We adapted their “Hypercube”

rare event prediction software to GIS based

system, and you would be surprised on how

powerful are its predictive capacity! We are

currently one of the only

firm in the world with this

capability. A third example,

talking green, we developed

a modular heating system

for isolated camp based

on heat exchanging from

lakes. It just creates

80% saving on fuel, the

third largest expense on

exploration program! In

brief, a company could be

built on a single of these

innovations, and we are

piling them!

Such innovation-driven

approach also brings to

us a pipeline of innovative

exploration projects. As

example is the vanadium

deposit we work with

VanadiumCorp Resources.

Vanadium can be used as

a very efficient electrolyte for fuel cells. And

when we say fuel cells, we talk about electrical

grid stabilizer, megawatts-hours batteries! We

bullishly work with our client on this green

project since years, convinced this is one of the

solution to the energy crisis. This technology

should trigger a huge boom in the ever-growing

renewable industry and a subsequent boom in

vanadium production.

Surfing the

cyclesBoom and burst cycles are hard on the industry,

but more even so on personnel. Most worker

IOS


cannot cope with such, they have family to feed

and need stable incomes. And this is where we

have to innovate in our managerial approach.

Simply carry off-cycle R&D. Doing such, and

since our staff has scientific training, we launch

research and development project when the

work load diminishes. This enable us to keep

talented staff at work, stimulate their creativity,

preparing the offering for the next boom and

maintaining the skill ahead of competition.

When the boom comes back, they are ready

with exclusive and updated skills. As example,

we set money aside within the local university

fundation, which we use to support our

professional going back for graduate studies!

Summer/winter cycles creates similar short-

scale mini-boom/bust. Consequently, most

service providers to exploration companies

hire temporary workers to collect samples

in the summer, and lay them out during

winter. Inversely, laboratory have to process

during winter time the huge loads of samples

collected in summer. So IOS trains its staff

to handle both. This strategy provides year

round work for staff and increases their skills

- allowing the field geologist to understand the

entire exploration process and improve the

quality of their decisions. It also helps stabilise

the company and retain staff, enabling the

company to constantly adjust.

As a result, Réjean says, “We have the highest

seniority in the industry in Quebec . . . even

THE SUSTAINABLE BUSINESS


better than multinationals. This speaks by

itself! “

During boom times IOS works feverishly to

complete as much work as possible. These

are times where income more than repays

the expenses of down times. During down

times the company prepares for booms by

developing new niches and enhancing the

skills of its specialists. During the summer,

staff primarily conducts field work (e.g.

gathering samples). During the winter they do

lab work (e.g. analysing samples and making

predictions). And overall, the whole thing

balance and the worker have stable jobs!

Results of

StrategiesKeeping skilled staff results in a company being

able to flesh out ideas that competition is not

able to. And these benefits are transmitted to

the client and the whole community. It create

an efficient work environment! For example,

IOS realised that using helicopters to serve

remote areas was not always financially

smart. A single helicopter can burn about

500 drums of fuel in a sole program. This is

four big lorries of drum, just to fly around the

mining camps.

Réjean declared, “We can do much better

than that.” and we started working with

a local machine shop, ALL Technologie

Inc., who developed a revolutionary track-

mounted, rough-terrain vehicle that floats,

enabling it wander with ease without footprint

in the Canadian barrens. The vehicle, called

KASKOO, uses only 10 litres of fuel per hour,

as compared with one drum of fuel per hour

for a helicopter. This is 90% fuel saving on a

IOS


per kilometre basis! And it can replace the

helicopter in about 30% of the projects.

This vehicle is now on the market.

Ecology shall meet economy!

Another example, by bridging exploration

geologist, geochemist, mineralogist and

biologist, we developed a geochemical

method capable to “see” though thick

overburden, such as the Northern Abitibi

clay belt. It took us more than 15 years to

come to a workable solution, but now we

have it and we are the only ones! Each

of these geochemistry projects require

to put at work a team including field

geoscientists, logisitic guys, laboratory

technicians and artificial intelligence

specialists! Its an ecosystem, from trucker

to Ph.D.

On the community side, sustainability

has to be interwoven with day to day

practice. It’s a state of mind we have to

create, and the cornerstone is education.

Therefore, IOS is working to improve the

overall skills of workers in the industry, to

transmit its knowhow. They have several

programs that help senior professionals

pass on their practical knowledge to

younger workers:

• Paying tuition fees, about $2,000, to

university students they’ve hired during

the summer (more than 200 so far).

• Sponsoring graduate students to do pre-

competitive research and development,

then subsidising them to continue their

studies and hiring them afterward.

• Collaborating to a professional masters

degree program consisting of short courses

presented by industry professionals with vast

experience including Réjean himself.

• Presenting abundant technical talks in

conventions and discussion groups. Because

ideas spawns from discussion.

Expecting even more difficult years ahead?

Yes! And Réjean is determined to keep the

company’s key employees within an innovative

business culture. They are, in his words, “the

biggest asset we have. They’re not just dollar

sign on the balance sheet. That’s the people

who do the work.”And will the competition try

to copy us? So what, we will innovate again! “


Gold Mine in ArgentinaCERRO


New Sustainable

NEGRO


Gold Mine in ArgentinaCERRO In 2013 the international Canadian mining company,

Goldcorp Inc, began developing the underground

portion of a new gold/silver mine in Argentina. During

its 2014 development year, Cerro Negro produced

152,100 ounces of high quality gold, with the final

quarter’s production of 133,100 ounces being the

second highest of any other Goldcorp

asset. This averaged out to a 91%

average recovery rate - highly desirable

for a gold mine. In January of 2015 the

company declared the mine open for

commercial production. During this

year the company expects to produce

425,000-475,000 ounces of gold.

Cerro Negro is only one of several

new development projects in the Patagonia area of

Argentina. The company’s Project Director, Alastair Still,

believes that its mine will soon be making a valuable

contribution to the local and national economy. In fact,

the collective production of all these new developments

is already putting Argentina on the map as a leading

mining country in South America and also globally.

NEGRO

CERRO NEGRO



Goldcorp purchased Cerro Negro and its 215 square

kilometre site in 2010. By the end of 2014 the mine’s

mineral reserves had been estimated at 5.26 million

ounces of potentially high quality gold.

The mine’s physical location is ideal (Patagonia Plains

in Santa Cruz, Argentina). It contains easily accessible

veins near the earth’s surface that are easy to approach

and that help keep the cost of production low.

Based on the minerals found in each, the Cerro Negro

mine is divided into six zones, some aboveground,

some below. To extract from the open pit mines, the

company uses conventional drill and blast techniques.

To extract from the underground mines, the company

uses the blast-hole method. With careful management

and sustainable practices, Cerro Negro is expected to

produce for at least 12 years, if not more.

During 2014 Goldcorp also rolled out a new, core program called Sustainability Excellence

Management System (SEMS). All six pillars upon which the company

functions in its organisational structure, responsibilities,

practices, procedures, processes, and resources are being

scrutinised to make sure they are sustainable, and resulting practices are being incorporated into the Cerro

Negro mine.

CeRRO NEGRO

Quarter 1 2016 - The Sustainable Business Review 33


Goldcorp President and CEO, Chuck Jeannes,

believes that enhancing corporate performance

with sustainable business practices is “doing well

and doing good at the same time.” The company’s

commitment includes working with business partners

that share environmental stewardship and corporate

social responsibility principles. Company employees

are also expected to contribute.

Jerry Danni, Senior Vice President of Sustainability, says that the company has

incorporated sustainability into its core business at all levels, “so people understand

they have a role to play in implementing our sustainability

program.”

He notes that the different aspects of sustainability,

like health and safety or the environment, have

traditionally been viewed as separate responsibilities,

hence as “someone else’s job” but the company is

changing that. In less than one year, the company’s

more rigourous monitoring and reporting system

resulted in its being named to the NASDAQ Global

Sustainability Index, in addition to receiving other

awards.


CATEGORY


http://www.cirigliano.com.ar


http://www.valko.cl


As with most mines, Cerro Negro does not

operate in a vacuum. It is surrounded by

local communities that provide workers and

support their health, and grow as the mine

grows. Goldcorp is very aware of the impact

their mines have on these communities and is

determined that it be a positive one.

The impact includes supply and service

companies that establish themselves locally

or are able to grow stronger by supporting the

mine. Some of the companies (both local and

international) that have contributed already

to Cerro Negro’s production are: Normet

International, BSI Group México, S. de R.L. de

C.V., Tecin, Cirigliano SA, Trax Sur Logistica,

Tronador, Golder Associates, Modular Home

SRL, SONDA, BSI Group Mexico, and TDS

Ingenieria S.A.

The company’s website states that, “Directly

and indirectly, our presence has measurably

reduced local poverty and improved

employment, livelihood, education and health.”

This statement may apply to the company as a

whole, but it’s clearly what the company also

intends for Cerro Negro.

CeRRO NEGRO

http://www.valko.cl

http://www.dhl.com/industrialprojects

•Engaging with communities

Realising that the impacts Cerro Negro has on

its surroundings can bring both opportunities

and issues of concern, the company

communicates with local stakeholders to

understand and address their issues. They aim

to conduct business in a way that the mine’s

impacts will help its communities become

strong, vibrant, and sustainable.

This approach was tested in September 2015,

when miners walked out for five days due to

company conflicts with land management. The

company petitioned and was granted a 15 day

work period wherein they could work together

toward conciliation. The company believes that

treating communities with a “shared value”

approach reflects mutual respect, and this

conflict is giving them a chance to prove that.

• Keeping company employees safe

This is the company’s top priority, which

makes economic sense as well, since fewer

days lost to injury also means lower costs for

the company. In 2014 there were no fatalities

in any of Goldcorp’s mines. To help achieve

this goal the company established a Day of

Remembrance that recognises the lives of

those lost in the past. They used it to increase

awareness of safety issues and practices.


The Sustainable Business Review - Quarter 1 2016 38

• Protecting the environment

Goldcorp is committed to eliminating or mitigating negative impacts on the environment

wherever they mine. The SEMS program integrates international standards and

benchmarks for the environment, for safety and health, for Corporate Social

Responsibility, and for security. All of their operations, including Cerro Negro and the

company’s second new mine, Eleanor, are expected to follow the guidelines. In 2014

the company audited five of its existing sites using SEMS standards, including two less

productive mines sold by the company this year.

CeRRO NEGRO


As part of its long term environmental strategy, Goldcorp is aiming for low energy use and protection of the local watershed for

each mine it owns. It plans to increase energy efficiency

by 15% company-wide, reduce greenhouse gas

emissions by 20%, and be generating a minimum of 5% of its energy from renewable sources by the end of 2016.

For now, mining operations at Cerro Negro are powered by a new

overhead transmission line from nearby Las Heras to a substation at

the processing plant.



CeRRO NEGRO


The SEMS program has also become a

springboard for Goldcorp’s new Water

Stewardship Strategy that assigns

conservation performance targets tailored

to each site. At Cerro Negro water comes

from three water bores located in the

valley around the mine site. To protect

the watershed during the mining process,

Goldcorp installed a bitumen geo-membrane

lining (developed by Siplast and installed by

icopal) that covers 600,000 square metres

of soil.

These are only some of the ways in which

Cerro Negro and its employees are impacting

the communities and environment around

them. There will be more. As Danni says

“It’s our obligation as a company to be

responsive to our shareholders, employees,

partners, and the communities where we

operate, so we can create a sustainable

legacy for future generations.”



THE ATTRACTION OF THE

Port of

BAR

BAD

OS

The island of Barbados is an annual attraction for

European and other tourists taking cruises to the

islands of the West Indies. Its location east of all the

other islands makes it a natural gateway to Europeans. It has

a higher standard of living than most of the other islands, with

tourism being a major contributor.

Barbados is also a major port of

call for container shipping into

and out of the Caribbean Sea,

which includes the islands of

the Caribbean and the northern

countries of South America.

Both cargo and cruise ships

stop and are served at the award

winning Barbados Port run by the

island’s government corporation,

Barbados Port, Inc.

In addition to providing great

berthing spots and friendly,

efficient service Barbados

Port is an access point to the

many attractions of the island

that demonstrate sustainable

ecosystems (not to mention the

finest rum drinks in the world.)

The island’s attractions include

a preserved coral reef used for

research, great ocean dive sites,

its world renowned horticulture,

and its top attraction - a

crystallised limestone cave, first

discovered in 1795.

The port, itself, features good security and efficient cargo

operations, gives a great first impression for tourists, and

ensures employee health and safety. The Port Authority and

its partners work hard to educate and monitor staff to provide

these services and more.

PORT OF BARBADOS



Barbados Port History & SizeBarbados has been running cargo for over

50 years and cruise operations for more than

30 years. The Port Authority was created

about 10 years before that from a merger

and nationalised in 1992, then corporatised

in 2003 to become Barbados Port, Inc. (BPI).

The port’s first expansion in 1978 gave it a

container berth, park, and a bulk handling

facility. In 2001 the Port used dredging

materials to connect with small Pelican Island

and built facilities for cruise ships. The global

economic downturn in 2008 resulted in a

decrease of business, so the Port Authority

decided to use the downtime to upgrade

and prepare for the future. In 2011 the Port

installed an electronic trade logistics system

for cargo, and in 2013 built another pier and

ancillary facilities for the cruise ships. An

equipment upgrade followed, as did special

training to upgrade employee skills.

Now the port is ready for the world’s economy

to pick up. By 2012 there were 1,534 cargo

ship calls moving over one million tons of

goods. In 2014 the port hosted 395 cruise

ships with 557,898 total passengers. An

increase of 1,164 passengers from the year

before chose to stay on the island for a week

or more - great for the hotel and travel tour

businesses. January of 2015 showed the

highest number of that month’s visits in 15

years.


PORT OF BARBADOS




Most of Barbados’ visitors come from Europe.

As the European economy continues to

recover, the Port’s marketing arm will increase

its marketing efforts to attract visitors during

the slower summer and fall months. This

includes visitors from the U.S. and Canada,

which are also picking up. In the process, the

Port is forming stronger alliances with online

travel agencies and tour operators.

In order to keep all of these visitors safe,

the Port has been addressing the spectre

of terrorism, which hasn’t affected the

Caribbean, but is something that visitors

worry about.

PORT SECURITY

Security is the top concern of the BPI,

considering that it receives more than half

a million tourists per year and handles high

numbers of cargo. In addition to well-trained

http://www.shippingbarbados.com

http://www.windwardlogistics.com

PORT OF BARBADOS

47The Sustainable Business Review - Quarter 1 2016

security officers staffing all areas of the port

around the clock, it also utilises high intensity

lighting, specialised cargo scanners, security

cameras, X-ray equipment, and patrol boats and

vehicles to boost security. The Port’s officers are

supported by the Barbados Royal Police Force

and the island’s Coast Guard.

EFFICIENT CARGO OPERATIONS

To safely export the island’s rum, palletised

sugar, and a few manufactured goods, while

importing all the other goods Bajans need to

thrive, the port’s 200 cargo employees run its

transhipment business especially efficiently.

The port is equipped to handle over 100,000

containers per year, and authorities keep good

relations with the workers’ labour union so it runs

without interruption.

Cargo berths are equipped with a 40-ton

capacity gantry crane and 104-ton capacity

mobile crane. The terminal is well equipped as

well, with 50 forklifts, nine straddle carriers, and

two reach stackers. Forklifts are equipped to

stuff and unstuff containers and work in confined

areas on board ship. Cargo tracking is electronic,

using the KleinPort computer system, which

PORT OF BARBADOS


gives customers access to the location of their

containers from their own office.

Barbados Mills, also located at the terminal, has

its own dock with a 200 ton per hour conveyor

belt and equipment for unloading and storing

wheat, corn, and soy meal. It also has a portable

suction system to use in situations where that

works better for unloading, and a tractor bucket

system to use for cleanup.

Quality Tourism Service - Bajans are well aware

of the benefits tourists bring to their island. They

make a special effort to be warm and friendly to

tourists, inviting them to enjoy the island’s sights,

the great West Indian food, and the home-crafted

artefacts.

The port’s air-conditioned terminal has a duty

free shopping mall run by the Bridgetown Cruise

Terminal, Inc. with 58 international shops and

a fleet of quaint pushcarts selling local goods.

Local performers include a steel band, dancers,

singers, and other entertainers. The terminal is

where passengers can hook up with the island’s

many tours and excursions. It even offers a

popular rum-sampling kiosk.

Employee Health - For port employees to work

efficiently and be authentically friendly, they must

be healthy and in good spirits. Knowing that

Port authorities and coworkers are looking out

for their safety helps. Workers are organised into

task forces charged with looking after specific

areas. With concurrent training in health and

safety standards, plus mandated annual visits to

the onsite health clinic, the employee accident

rate and sick days off has declined rapidly.

Barbados Port so strongly affects the rest of

the island (and vice versa) that its efficiency

extends outward to include others who offer

services related to cargo and cruise calls. The

result has triggered the United Nations to add

Barbados to its list of maritime nations with high

human development. It also generated several

awards for the Port, not only from the Caribbean

Shipping Association, but from cruise lines like

Dream World and World Cruise Destinations.

Barbados is not just a natural gateway to the Caribbean. It’s a high quality

gateway.



In a direct response to the rising costs of health insurance and medical treatment in the United States, “medical tourism” is becoming a realistic option for middle class patients. A recent recipient stated that everything he spent to undergo a hip replacement in the Cayman Islands cost less than just the out-of-pocket deductibles he paid for surgery in the United States five years before. The care from his medical team was top-notch and so was his vacation recovering.

Thrives in the Cayman Islands

Medical Tourism

HEALTH CITY CAYMAN ISLAND

HEALTH CITY CAYMEN ISLAND


In a direct response to the rising costs of health insurance and medical treatment in the United States, “medical tourism” is becoming a realistic option for middle class patients. A recent recipient stated that everything he spent to undergo a hip replacement in the Cayman Islands cost less than just the out-of-pocket deductibles he paid for surgery in the United States five years before. The care from his medical team was top-notch and so was his vacation recovering.

Medical Tourism

HEALTH CITY CAYMAN ISLAND


In times past wealthy people

travelled to highly developed

countries for specialised services

unavailable elsewhere. But costs

in some countries, and waiting

times in others, have risen so much that patients

now look for those services in less developed

countries. Every year year between 60,000

and 85,000 Americans go abroad searching

for high-quality health care that is both fast

and cheap. The Cayman Islands is one place

they’re finding it.

The Caymans are three small islands in the

Caribbean Sea, located between Jamaica and

Cuba, still held as a British Protectorate. Health

City, situated on the largest one, personifies

the new trend. The year-old hospital proved

its credentials when it won the Gold Seal of

Approval last year from JCI, an international

leader in healthcare accreditation. Health City

founder Dr. Devi Shetty said, “We have spent

a lot of time carefully selecting and attracting

some of the best doctors and surgeons, with

world class supporting services, to our facility.”

Coming from a well respected, independent

accreditation organisation like JCI, the award

verifies the high quality of the company’s health

care. Since 1999 more than 410 public and

private health care organisations in more than

45 countries have won the award. Health City

has joined the elite.

Health City, Cayman Islands is a collaboration between

Narayana Hospitals in India and Ascensión

Health Alliance in the United States. Both

are dedicated to providing quality services

affordable to all. Narayana is one of the leading

health care chains in India with 32 hospitals,

many targeted to the poorer population.




Ascensión is the largest, non-profit health

system in the U.S. and the world’s largest

Catholic health system, also targeted to helping

the poor and elderly. Asención operates over

100 hospitals and 250 care centres in the U.S.

Health City offers team-based care to

international, regional, and local patients, as

well as cardiology, orthopaedic, pulmonology,

medical oncology, and paediatric endocrinology

services. From the 104 beds currently

operating, the hospital is expected to grow

to 2,000 beds over the next 12 years, mostly

serving international patients. (Cayman Islands

population is only 1,500.)

A renowned heart surgeon, Dr. Shetty (formerly

Mother Theresa’s personal physician) brought

the initial medical team with him from India,

already highly trained, which helped reduce

start-up costs. From 100 employees the

hospital now has 174, mostly international,



but aiming to hire more locals. They have

also started an educational system, whereby

the hospital takes on and trains 2,000-3,000

medical students. And they are working with

the local nursing school to give nurses hands-

on training.

Not only does this set-up result in increased

skills and good jobs for locals, but it also

helps keep costs low. With low operating

costs, Health City doesn’t have to charge

patients as much for services. As Dr. Shetty

acknowledges, “A solution is not a solution, if

it is not affordable.”

According to Project Director, Gene Thompson,

who heads the development project, the

hospital’s greatest advantage is its three-

pronged approach: Providing the highest

quality treatment, at the lowest possible cost,

with the best possible service. He said that

nowhere in the world is that combination

matched better.

Built on efficiency, the company is a role model

COLLABORATINGTO CREATEEFFICIENTCONNECTEDCARE

We’re committed to helping the

healthcare community better align patient

care with patient outcomes. But we can’t

do it alone. That’s why we’re collaborating

with physicians, hospital administrators,

payers, and patients across the care

continuum to create more sustainable

models of care. Our goal? Better patient

outcomes for everyone.

Let’s take healthcare Further, Together.

Learn more at medtronic.com/furthertogether.

UC201603642 EN © 2015 Medtronic. All Rights Reserved.

http://medtronic.com/furthertogether



for countries and medical companies around

the world that are struggling with high health

costs. All of its health providers are committed

employees with interest in productivity,

streamlining procedures, and improving health

care. Robert Peart, MD, the CEO of Kaiser

Permanente Medical Group frets that Health

City “has American health care providers

watching closely and anxiously.”

Pearl also wrote recently in Forbes Magazine

that “the operational approaches in Dr. Shetty’s

hospital are about 10 years ahead of those

used in the typical U.S. hospital.” He was

referring to such practices as:

• Building the current facilities for about 1/3 the average cost of hospital construction in the United States.

• Providing an all-inclusive flat rate ahead of time for every type of procedure and the services that support it. Billing patients only once for all services.

• Publishing their prices, so patients know the cost of their treatment before they incur it.

• Utilising the latest IT solutions for keeping track of patient care and hospital costs.

• Providing a daily profit/loss statement to executives, so they can see how much care they can afford to give away to poorer patients.

• Marketing their services to insurers and employers, who can negotiate large-scale contracts to send their patients and workers to the Caymans.

In spite of local criticism the government

of the Cayman Islands helped Narayana

establish itself there. It offered tax breaks and

lower insurance premiums, and accredited the licenses of Indian medical practitioners.

Former premier McKeeva Bush recognised

that medical tourism will boost the island’s

economy and stated that he was “glad Dr.

Shetty did not bow out while he was being

criticised.” After six years of working out

arrangements, they signed a contract in

April of 2008 and moved forward to build

the hospital.

In spite of the JCI award given to Health City

last year, the development process has not

been a bed of roses without thorns. Some of

its challenges have included getting people


to understand that “island” doesn’t mean

third rate or developing country. Thompson

stated in our interview with him, that building

confidence in the hospital is key to its success.

Winning JCI certification has been a game-

changer in that regard.

Logistics is also an issue. The Caymans are

islands, hence most of their goods ship in

from other countries. Hospital staff must take

into account the extra time that takes, and

make sure to order well in advance of the

time goods will be needed. They also must

keep equipment replacement parts and extra

emergency supplies on hand. And heaven

forbid that there should be a hurricane that

devastates local crops!

The Cayman Islands benefit in numerous

ways from the hospital. Health City purchases

nearly all of its food locally. Its patients

and those accompanying them use local

transportation to get back and forth between

the hospital and their hotel/s and to tour the

country. As tourists, they spend money on

hotels, accommodations, and buying the


work of local artisans. Some patients require long recoveries needing housing, rather than

hotel stays. For them, Health City has already built 44 units of housing and plans to build more.

The hospital and its extended units is designed to be economically, socially, and environmentally

sustainable. The JCI award, the economic benefits to the local community, the preparations to

hire locally, and the hospitals efficiency all attest to the meeting of those goals. This speaks of

a highly successful future for Health City.



work of local artisans. Some patients require long recoveries needing housing, rather than

hotel stays. For them, Health City has already built 44 units of housing and plans to build more.

The hospital and its extended units is designed to be economically, socially, and environmentally

sustainable. The JCI award, the economic benefits to the local community, the preparations to

hire locally, and the hospitals efficiency all attest to the meeting of those goals. This speaks of

a highly successful future for Health City.



WESTPORTS

WESTPORT


WESTPORTSAdopts All Inclusive Objectives Of Economic Returns, Productivity And Sustainability



Relentless Supply-Driven GrowthWestports Malaysia commenced its business

in 1994 with conventional operations. The

containership operations commenced later

in 1996 with one Container Terminal (“CT”),

now known as CT1. Back then, there was one

transhipment port in the region and Malaysia’s

imports and exports essentially have to go

through Singapore. So, opportunities beckons!

By 1997, container terminal expansion

was completed and CT2 raised Westports

container handling capacity to 3.0m twenty-

foot equivalent units (“TEUs”).

Against the backdrop of the then Asian

Financial Crisis in 1998, container volume at

Westports still continued to grow unabated by

double-digit growth rates. CT3 was completed

WESPORT


in 2001. With the supply-driven approach

towards container terminal expansion, CT4

and subsequently CT5 was completed in 2008.

With the Global Financial Crisis engulfing the

world, Westports container volume eased in

2009 by merely 10%. And incidentally, 2009

was also the only year when global container

volume experienced a decline.

The double-digit growth resumed in 2010 and

necessitated another expansion. CT6 was

completed in 2013 and with sustained high

levels of utilisation, CT7 started soon thereafter,

which was immediately completed by the end

of 2014. And within the same month CT7 was

completed, it accommodated the then largest

container vessel – MV CSCL Globe of 19,100

TEUs.

With the emergence of global shipping alliances,

where Westports is the regional transhipment

hub of choice for Ocean 3, comprised of CMA

CGM, United Arab Shipping Company and

China Shipping Container Lines, the latest

expansion commenced early in 2015 to build

CT8, which has been contracted to Muhibbah

Engineering (M) Bhd.

And when CT8 is completed by mid-2017,

Westports would have increased its container

handling capacity to 13.5m TEUs. It would be

equipped with additional container gate for

more efficient container traffic movement into

and out of the entire port, 15 more units of fuel

efficient Rubber Tyred Gantry Cranes (“RTGC”)

and also 14 new ship-to-shore Quay Cranes

(“QC”).

Sustainability Also Generates Economic ReturnsWestports has experienced tremendous

growth over the two decades with its supply-

driven approach towards container terminal

expansion. Delivering best-in-class level of

service has always been a top priority and this

core emphasis has subsequently yielded in

favourable economic returns and also adoption

of sustainability in the Group’s strategy and

investing decisions.


When it comes to investment decisions

in container terminal handling equipment,

in addition to the required analysis on

initial investment outlay, operational and

regular maintenance costs, Westports

also solicit feedback from its staff and

equipment operators – they are the

ones that ultimately directly contribute

to the service levels and world-

record productivity that the port

achieves.

So, when Westports embarked

on its then latest CT6 expansion

plans, which was subsequently

completed and commissioned

into service in March 2013,

the Group was then using a

fleet of conventional diesel-

powered Rubber Tyred Gantry

Cranes (“RTGC”). In order to

enhance economic returns and

productivity levels, new fuel

efficient RTGC concepts were

evaluated despite the much

higher initial investment costs

as they all claimed to reduce

overall fuel consumption.

WESTPORTS

ultimately ordered a fleet of Variable

Speed (“VS”) RTGC and also Hybrid

RTGC from Mitsui-Paceco. And Mitsui-

Paceco has been supplying container

terminal handling equipment to Westports

from the very beginning in 1996. The

fleet of new RTGC were all delivered and

subsequently fully commissioned into

service by mid-2014 for CT6. And when

CT7 was completed by the end of 2014,

WESPORT



the VS and Hybrid RTGC consisted 27% of

Westports total fleet of 157 RTGC.

By operating a fleet of RTGC with basically

three different power configurations and

close monitoring of their performance for

more than a year, Westports is now able to

confirm that the objective of achieving a more

favourable economic returns, despite the

higher investment outlay, has also enhanced

sustainability with reduced diesel consumption

and GHG emissions.

The VS RTGC has reduced diesel fuel

consumption by controlling the engine speed

and matching it with the required container load.

Meanwhile, the Hybrid RTGC featured smaller

engines and is complemented with Lithium

Ion battery power to reduce fuel consumption

and lower emissions. The Hybrid RTGC cost

the most but because it can

recover and convert the kinetic

energy into electric energy and

stored inside the batteries when

hoisting down the container,

hence, it is also the most energy

efficient.

Westports has embarked on its

latest terminal expansion, CT8,

which should be completed by

the middle of 2017. Being a

publicly listed entity with growing

awareness of its environmental

footprint, the Group will strive

to strike an optimum balance

and all inclusive need between

generating economic returns

required by all shareholders while

also enhancing sustainability in

the Group’s operations. And

the new RTGC for CT8 are also

Mitsui-Paceco’s fuel-saving

model.

While cranes do the heavy lifting, the workhorse

shuttling the containers between the container

yard and the berthed vessels are the terminal

tractors. With 420 units of terminal tractors

continuously transporting the 8.4 million of

TEUs handled by Westports in 2014, even the

most robust machines are susceptible to wear-

and-tear. Balancing between operating and

maintenance cost, performance-reliability and

fuel consumption and emissions, the terminal

tractors are replaced after seven to eight years.

Additionally, Westports’ latest fleet of terminal


tractors are designed to run on Euro 5 grade

diesel. By the end of 2015, Westports will

use Euro 5 grade diesel for its newer terminal

tractors. This fuel has a sulphur content of

only 10 parts per million (ppm), compared to

500 ppm for current Euro 2M diesel available

domestically. The new formulation would

reduce emissions of harmful pollutants while

improving the longevity of the diesel engines.

While terminal handling equipment may be

the obvious area for efficiency gain and cost

reduction, Terminal Lighting is another area

as Westports is a truly 24x7x365 port that

operates all year round. Westports embarked

on implementing energy efficient terminal

lighting by adopting prismatic lens technology

in 2011. The premise of prismatic lens allows

for more focussed spread of light to the ground

level while requiring lesser 315W bulb capacity

compared to previous 1,000W High Pressure

Sodium bulbs. Energy savings of 68% per lamp

is achieved. For building lighting, Westports

converted incandescent lamps at two of its

Administration buildings to

LED types in 2014. LEDs

uses between 40% and

50% less power over similar

incandescent lights whilst

providing similar brightness

and has a longer lifespan.

Unlike electricity that

is a key input for the

port’s operations, water

consumption is less but

nevertheless too precious

to be wasted. To minimize

water pipe leakages and

the loss of water, Westports

now uses HDPE (High

Density Polyethylene) pipe

to replace corroded iron

pipes at the wharf areas.

This lengthened pipes’

lifespan up to 50 years from

iron pipes’ typical 15 years

while eliminating corrosion

and water leakages. Starting in 2014, all iron

pipes would gradually be replaced by HDPE

type.

Ruben Emir Gnanalingam, the Chief Executive

Officer of Westports, shared, “Westports

journey into sustainability started before we

even became a publicly listed company in

WESPORT



October 2013 as we had already obtained the

ISO14001 and OHSAS18001 certifications

by then. Our top priority of delivering best-in-

class level of service remains undiminished

even as we incorporate sustainability into

the organisation practises. We now view the

objectives of achieving record productivity

service levels, generating favourable economic

returns and also reducing energy and resources

consumption – are all mutually compatible

and also necessary. With innovation and the

adoption of new technologies, this all inclusive

perspective is leading us to adopt more

green management practices and be able to

contribute towards environmental sustainability

as well”.

Unique CSR

Opportunities On The IslandWestports is located on an island and

occupying 535-hectare of land, it is probably

the largest organisation on Pulau Indah (which

means ‘beautiful island’), creating employment

opportunities for more than 4,300 Malaysians.

Over 21 years, Westports has transformed the

island’s natural swamp lands and sands into a

regional container transhipment and multi-cargo

seaport terminal. And today, approximately

40% of Westports’ employees are Pulau Indah

residents.The unique pre-eminent role on the

island also created unique opportunities for

Westports as CSR initiatives mostly focused on


WESPORT

the island itself and its communities. Westports

is now sponsoring all the schools on Pulau

Indah under a Trust School Program to improve

the quality of students’ learning and teaching

effectiveness, thus enhancing overall students’

educational performance. The sponsorship

amounted to RM6 million and improvements

have been noticeable with positive feedback

received.

Other island-focussed CSR contributions that

directly engages with the communities are

poverty eradication such as providing financial

assistance to the less privileged; refurbishment

of community facilities such as schools and

mosque; and the provision of medical, safety

and security services not only to the port but

also to all the island residents by Westports’

port police.

Singapore’s Public Utilities Board (PUB) is one of the few water agencies in the world with a balanced supply of water, supported by long term plans to keep it that way. Its 50 year plans take into account an increased population, potential drought, potential flooding, and a potential rise in ocean levels. The PUB is already engineering new water

supply technologies that help counter these dangers and that can be utilised worldwide.

Singapore’s water comes from four main sources called the “Four National Taps”: Local rainwater catchments, imported water, NEWater (recycled), and desalination. These sources of supply are part of an integrated program that has three main pillars:

1. To capture every drop of rain that falls on Singapore,

2. To collect every drop of used water,

3. To recycle every drop of water more than once.

SINGAPORE'S



Singapore’s Public Utilities Board (PUB) is one of the few water agencies in the world with a balanced supply of water, supported by long term plans to keep it that way. Its 50 year plans take into account an increased population, potential drought, potential flooding, and a potential rise in ocean levels. The PUB is already engineering new water

supply technologies that help counter these dangers and that can be utilised worldwide.

Singapore’s water comes from four main sources called the “Four National Taps”: Local rainwater catchments, imported water, NEWater (recycled), and desalination. These sources of supply are part of an integrated program that has three main pillars:

1. To capture every drop of rain that falls on Singapore,

2. To collect every drop of used water,

3. To recycle every drop of water more than once.

Public SINGAPORE'S

(PUB)Utilities Board



Leslie Swanson, Organizational Development Consultant, lived in Singapore for 20 years while working at MSD Pharma. She said, “I watched as Singapore transformed itself into becoming a leader in water sustainability.”

Having access to water has been a recent luxury for most Singaporeans. Within the last 50 years, they have gone from bathing with a bucket and scoop to having running water 24/7. Now total water demand hovers around 400 million gallons of water per day (mgd), with 45% of that used for domestic consumption and the rest for non-domestic use.

Of that demand, reclaimed water supplies 30%, desalination provides 25%, and the rest is split between 17 local reservoirs (i.e. rainwater) and imported water. PUB is currently working with local communities to lower demand through conservation and, during the next 50 years, will focus on implementing new technologies to run each of its four taps more efficiently.

TAP 1 - RAINWATER CATCHMENTPUB collects rainwater in 17 reservoirs around the island - two thirds of the island being used for water catchment. Many of Singapore’s reservoirs are located inside the city itself, including drainage from some of its oldest, densest population areas (e.g. the Central Business District). Using specialised filtering membranes, PUB cleans all of its collected water to World Health Organization (WHO) drinking standards.

According to PUB’s long term plan Our Water, Our Future, “Singapore is probably the only city in the world where urban stormwater harvesting is carried out on such a large scale.”

TAP 2 - IMPORTED WATER



In 1961 Singapore negotiated an agreement with the Johor State Government to import up to 250 mgd from the Johor River until 2061. Johor is the southernmost state on the Malaysian Peninsula, linked to the island of Singapore by two constructions - a 1,920 metre twin-deck three lane roadway and an older 1,056 metre causeway that includes a road, rail line, and water pipe. PUB does not aim to increase this amount of water in future, but will supply Singapore’s population growth via the next two taps.

TAP 3 - NEWATER

The government introduced this high-grade reclaimed water project in 2003, wherein used water is purified using anaerobic micro-organisms, micro-filtration, reverse osmosis, and ultraviolet disinfection techniques. (The biogas produced is collected for power generation.) Before being released for public use, NEWater’s ultra-clean reclaimed water passed more than 130,000 scientific tests for quality.

Singapore uses NEWater mostly for air conditioning systems and industrial procedures in wafer fabrication plants, industrial estates, and commercial buildings. Excess NEWater is sent to the local reservoirs for use during the dry season. This water source meets 30% of current demand and.

Singapore considers NEWater to be the pillar of its water sustainability program.



Ed. Züblin is the German market leader in building construction and civil engineering, for more than 110 years and has been successfully realizing challenging construction projects nationally and internationally. The company’s range of services includes all construction related tasks – from complex turnkey construction to civil engineering, bridge building and tunneling to public private partnerships.

Ed. Züblin is a part of the corporate group headed by Austria’s STRABAG SE, one of Europe’s largest construction companies.

Ed. Züblin AG – Singapore Branch was established in 1997 expressly to provide the highest standard for construction of utility tunnels using the pipe jacking methodology. As of 2015, the Singapore branch has successfully completed more than 24 km of utility tunnels. Also in 2015, a state-of-the-art precast concrete factory, managed by ZUBLIN Precast Industries SDN. BHD., was incorporated in Kota Tinggi, Malaysia.

We aim to develop the perfect technical solutions for all our production and construction activities, always using state-of-the-art technology and keeping in mind safety, quality and productivity.

Knowing that every contract has its own challenges, our comprehensive services offer our customers complete solutions, which combine excellent products and technical know-how.

Ed. Zublin - Pipe Jacking Division & Zublin Precast Industries

Ed. ZUBLIN AG, SINGAPORE BRANCH47 Scotts Road, #17-02 Goldbell TowersSingapore 228233

Phone: +65 6339 0436 Fax: +65 6339 [email protected] www.zublin.com.sg

WE ARE EXPERTS IN PROVIDING TUNNELLING SOLUTIONS FOR MANY INDUSTRIES

• WATER / WASTWATER• MINING• OIL & GAS• CONSTRUCTION

http://www.zublin.com.sg

To support this program, PUB built a Deep Tunnel Sewerage System that centralises sewage collection and treatment, and frees up surface land for other uses. PUB is now experimenting with locating recycling and desalination plants together, so they can use the concentrated brine discards from each plant to generate osmotic power for electricity.

As part of a team building day, Ms Swanson accompanied MSD’s development team on a tour of the NEWater plant. They wanted to study the communication and education behind PUB’s successful introduction of reclaimed water to the public. She labelled the plant’s visitors centre as “world class,” saying it not only showed the science, but also provided information on different water resources around the world.

TAP 4 - DESALINATIONIn 2005 Singapore opened its first desalination plant for production of 30 mgd of drinking water. Singspring Pte, Ltd. designed, built, and will operate the plant for its first 20 years. They built a second plant in 2013 to desalinate 70 mgd of sea water. By 2060 desalinated water should be supplying 25% of Singapore’s water demand.

One of the biggest detriments to operating desalination plants in the past has been their excessive use of energy. PUB’s research and development companies are developing new techniques, using electrochemicals, which should cut energy use down by half.

One of those companies, Evoqua Water Technologies, is testing and developing two main techniques: The way that mangrove trees and euryhaline fish extract sea water, and what happens when aquaporins are embedded on membranes. Both of these are instances



http://www.sugino.com/site/english/distributors014.html

of biomimicry - exploring and imitating the way nature handles desalination - which results in efficiency that harmonises with nature.

FUTURE SUPPLYPUB’s next priorities are: Reducing the energy used for all four taps, capturing whatever energy is released during the water cleansing process, and finding additional storage for excess water that can be saved for future use - including possible underground storage caverns. Much of the research developed in the course of satisfying these priorities will lead to additional technological breakthroughs.

According to Prime Minister Lee Hsien Loong, “In recent years, Singapore has gone from managing water as a resource to increasingly leveraging it as an economic asset.”



http://www.klenco-asia.com

He is referencing Singapore’s desalination plants, NEWater project, and treatment of urban runoff, which were made possible by R&D engineers working closely with the public to test the technologies they were developing. Involved in Singapore’s water technology centre are now 150 water companies and 26 research centres, some of which are already producing turnkey models for NEWater and desalination plants for sale. In 2012 the government designated US$470 million to further stimulate exports from this sector, anticipating that its water treatment products will soon be in high demand.

There may be a market in California. Ms. Swanson, who now lives there, is saddened by knowing that California is in a severe drought and “that the technology exists to be capturing our street runoff,” and “that the water we use is lost and not recycled. “

California needs to communicate with Singapore. By developing the breakthrough technologies it has, Singapore can not only meet its own water needs in the present and future, but can also profit by helping other countries meet theirs.





KAHRAMAA:Peaceful countries in the Middle East, especially the

smaller ones, are quickly establishing themselves as

regional development leaders. Qatar is one that intends

to lead in sustainable development. Its ultimate aim is:

“Management of the environment such that there is

harmony between economic growth, social development,

and environmental protection.”

Qatar is a tiny country located on the NE coast of Saudi

Arabia, currently one of the higher users of utilities per

capita in the world. Its citizens are also the richest. A former

British Protectorate, the country achieved independence

in 1971 and is now a peaceful constitutional monarchy

with 1.8 million people (most of whom are expatriates).

Its first desalination plant was built in 1953. The country’s

reserves of natural gas and oil are the third largest in the

world.

Qatar is known for its accomplishments in human

development, considered by the United Nations (UN) to be

the highest in the Arab world. The country’s government

has been conscientious about using its profits to benefit

the people. In 2022 it will become the first Arab nation to

host the FIFA World Cup games (men’s soccer football).

IN THE RIGHT DIRECTION

KAHRAMAA


IN THE RIGHT DIRECTION



mailto:jhoanna.almazora%40stromqatar.com?subject=

CATEGORY


mailto:jhoanna.almazora%40stromqatar.com?subject=



The government is also committed to becoming

the sustainability hub of the region, acting on

guidelines spelled out by the UN Environment

Program. HIs Excellency Dr. Mohammed

bin Saleh al-Sada, Minister of Energy and

Industry, says that sustainability is the key to

the rapidly changing world. He commends the

strides made by Qatar’s electricity and water

provider, KAHRAMAA, in its efficient delivery of

utilities and successful sustainability projects,

described in its 2014 sustainability report.

This initiative includes partnership with key

industry leading providers including Siemens,

ABB, Strom Construction, Voltage Engineering,

India’s L&T just to mention a few. The strategy

also includes engaging and growing the local

providers as well.

KAHRAMAA is a distributor, not a generator,

of water and electricity. It’s government

owned with no subsidiaries and is the only

such distributor in the country. Because it is

a government entity, public appearance is

important, so one of its sustainability arms is to

keep the public informed about its programs.

Through public information projects on

the Internet and visual media, and public

appearances in schools, KAHRAMAA conveys

the importance of water quality and water and

energy conservation, as well as the role of the

public in achieving the country’s sustainability

goals. Already utility customers are responding

by cutting down their use. The average annual

use of water dropped from 232 cubic metres

per person in 2012 to 216 cubic metres in

2014. The average use of electricity dropped

from 16,294 kWh per person in 2012 to 15,100

The company also conserved internally - mainly

by examining its facilities and pipelines to close

up leaks. In 2007 the company measured a

water loss of 59% from leaks alone. By 2014

that loss was reduced to about 10%. In 2007

there were almost 27 water main bursts per

KAHRAMAA‘s sustainability program is fairly new. In putting it together,

the company involved all of its stakeholders to help develop a

practical approach and prioritise key issues. It held workshops for government officials, customers,

suppliers, investors, and employees. It also set up and trained an internal

Sustainability Task Force to oversee the program.

KAHRAMAA


each 100 km of pipe, whereas in 2014 the

average was barely over 6 bursts per 100 km.

A look at water used in the country’s

cooling systems showed great potential for

conservation of potable water. Taking on just

two districts as pilot projects in early 2014, the

company provided reclaimed sewage water to

use in that area’s cooling systems. All districts

are required to switch over eventually, with

expected water savings of 80% and electricity

savings of 40% by 2023.

Also in progress are construction of a mega-

reservoir with a 7 day supply of potable water,

installation of smart meters countrywide (with

the help of partner, IBERDROLA), upgrading

customer service offices with new interiors,

evaluating and retrofitting schools to serve as

efficiency models for other schools, Installation

of LED street lighting, setting up a tendering

service for suppliers online, legislating the

use and quality of potable water, as well as

establishing manufacturing standards for

water/electrical equipment and fixtures. These

are impressive results, considering that the

company’s sustainability program has only

been in effect for a couple of years.

PLANS for the FUTURE

So far the company has focused on legislative and conservation changes, but

there are other aspects to sustainability too - like

customer service, employee well being, supplier

facilitation, and Qatarization (hiring more locals). Here are some of the projects planned for the future.



http://www.abb.com

CATEGORY


CERRO NEGRO

http://www.abb.com


http://www.siemens.com


TRAINING:

Extending the principles of conservation,

sustainability, and good customer service

all involve training. KAHRAMAA has several

projects planned along these lines.

•To carry out the national goal of employing

native Qataris, the company plans to continue

providing educational scholarships, then give

training in utilities management to those who

interested and hire them as leaders in the

industry.

•KAHRAMAA is not yet satisfied with its

customer service response, so will be working

to identify new ways to improve, including

moving old customer records online for easier

access.

•Tourism uses a lot of energy and water,

but tourists have little incentive to conserve.

KAHRAMAA intends to reach out to this

industry to show how it can operate more

sustainably. In addition, the company will

engage suppliers and contractors to apply

sustainability practices, and will implement

a religious awareness program to engage

mosques in conservation practices.

INCREASED SUPPLY :

With a burgeoning population and economy,

the company will be looking at potential new

sources of supply, both of water and electricity.

•The sun shines year round and is a great

potential source. As fuel cell technology

advances, solar power can become a significant

new supply of electricity. KAHRAMAA will be

studying the feasibility of adding solar power to

KAHRAMAA

http://www.siemens.com



its grid and looking for good locations.

•Northern Qatar is both windier and less

inhabited than the rest of the country.

KAHRAMAA will be evaluating the potential for

wind power projects in that region.

•Certain potable water wells have fallen into

disuse and others are currently too polluted to

use. The company will rehabilitate all of those

wells to add more potable water to its supply.

•Qatar does have good aquifers, but not much

is known about them. To see what is possible

for storage and recovery of reclaimed water, the

company will be instituting a comprehensive

study of the nation’s aquifers.

UTILITIES MANAGEMENT: Good management tools can add greatly to

the success of a comprehensive sustainability

program like this one. Here are a couple of tools

the company plans to install.

•To get a good handle on all aspects of its

water network, KAHRAMAA will be installing a

centralised, online water management system

to monitor the entire country.

•Water quality is important, especially when it

comes to drinking water. To ensure that all water

distributed, whether its source is desalination,

underground aquifers, storm water capture,

or reclaimed water, the company will build a

new water quality assurance laboratory to run

KAHRAMAA


KAHRAMAA’s sustainability program is ambitious, but the company has already proven it can succeed with those projects it

has taken on. If it keeps on the way it’s going, Qatar could easily establish itself as

a sustainability leader in the Middle East, in spite of the country’s small size.


QATARCOOL

EXPANDS CENTRAL COOLING TO DISTRICT SIZE


Whether climate change is human-caused or not,

the creation of companies like Qatar Cool and the

environmental commitment of the country of Qatar

benefit the economy, humanity in general, and

the earth we live on.

QATAR COOL




Working off economies of scale, Qatar District

Cooling Company (Qatar Cool) is centralising

the cooling systems of buildings throughout

the country’s regions. By providing cooling

plants in major districts to replace individual

air conditioning units in buildings, Qatar Cool

saves carbon emissions, lowers energy use

by 40-60%, decreases noise pollution, and

saves building owners money in construction

and maintenance costs.

Centralised heating and cooling is not a new

concept. It’s how the Romans supplied their

citizens with hot public baths millennia ago.

Many countries around the world have similar

set-ups today. The system is fairly new in

Qatar, however, and Qatar Cool is currently

the country’s leading supplier of chilled water

for air conditioning.

COMPANY EXCELLENCEQatar Cool is a thirteen-year-old, private

company run by Mr. Yasser Salah Al Jaidah,

Chief Executive Officer. Mr. Al Jaidah has over

a decade of energy experience and has held

positions throughout the field, which include

maintenance, operations, engineering,

project management,marketing and venture

projects on four continents in countries such

as Qatar, Korea, Japan, France, Norway, USA,

Italy, Singapore and the United Kingdom.

Qatar Cool has been recognised for their

innovative practices by the International

District Energy Association (IDEA), has

been given “The Award of Excellence” for a

municipal scheme serving more than 10,000

citizens, conveyed at the 3rd Global Energy

Climate Awards, and was awarded “The Best

District Cooling Provider” at the Climate Control

Middle East award ceremony.

The company was also presented with the

“International Safety Award” for 2014 and

QATAR COOL


2015 by The British Safety Council, the

“Industrial Building Conservation Award” from

Tarsheed Kahramaa and, more significantly, the

“System of the Year” award for both districts

served, from the International District Energy

Association (IDEA) - a great honor to receive

from such a prominent association at the top

of the industry.

Qatar Cool has three plants currently in

operation, with another scheduled to open in

2016 - built to the Leadership in Energy and

The company was also presented with the “International Safety Award” for 2014 and 2015 by The British Safety Council, the “Industrial Building Conservation Award” from Tarsheed Kahramaa and, more significantly, the “System of the Year” award for both districts served, from the International District Energy Association (IDEA) - a great honor to receive from such a prominent association at the top of the industry.



Environmental Design (LEED) silver standard.

The two operational plants in the West Bay

district currently serve fifty two towers with

a combined cooling capacity of 67,000 tons

of refrigeration (TR). The third plant, once

operational, will have a cooling capacity of

40,000 TR to meet the growing demand. The

total area served in West Bay is more than 2

million square meters (21 million square feet),

serving more than 50% of Doha’s West Bay

skylines. These include governmental offices,

ministries, hotels, residential, commercial

retail and office complexes.

Qatar Cool’s West Bay plants

are equipped to use Treated

Sewage Effluent (TSE) in their

operational plants.

The third operating plant,

located in the Pearl Qatar, has

a cooling capacity of 130,000

TR which supplies the man-

made island, making it the main

eco-friendly technology on the

island. Qatar Cool’s Integrated

District Cooling Plant (IDCP)

was inaugurated in November

2010 and is the largest cooling

plant in the world. The total

area to be served, once the

island is completely supplied, is

41 million square feet, occupied

by 41,000 residents (approximately 15,000

apartments & 700 villas) and comprised mainly

of hotels and shopping centres.

Qatar Cool has also introduced a new business

model where it designs, builds, operates and

maintains District Cooling Plants for developers

such as Al Gassar Resort and St. Regis Hotel

in Doha. Most recently the company signed

with Qatar Railways Company for the provision

of district cooling to seven of Doha’s Metro Red

Line stations. These efforts are on-going and

if successful can be expected to contribute

significantly to the long term growth of the

company.

How It WORKSQatar Cool’s plants essentially replace the

regular HVAC units used by most modern

buildings. Instead of each building having

its own cooling systems (thereby having to

maintain the system and replace dysfunctional

parts) there is a double circulation system

that meets in the basement of each building.

Qatar Cool produces and circulates its chilled

water to multiple buildings through a network

QATAR COOL


of pre-insulated underground

pipes. The chilled water contacts

each building’s HVAC system

via an Energy Transfer Station

(ETS), where it passes through

thin metal plates of a uniquely

designed Plate Heat Exchanger

(PHE). This cools the building’s air

conditioning liquid, also passing

through the plates, which then

circulates the building to chill the

air throughout.

In addition to

e l i m i n a t i n g

the worry

of maintaining chillers or

cooling towers, building

owners benefit by having an

air conditioning system that

works all hours of the day

and night. Any necessary

maintenance shutdowns

are covered by Qatar Cool.

Not only does a building

save money and energy, but

without cooling towers or

chillers on the premises, the

building is both quieter and

more attractive.

Qatar Cool’s great core

strength comes from its

employees, who are oriented toward providing

high quality operational efficiency and service.

State of the art facilities and a focus on

customer service enhance that strength. The

company has built-in feedback loops that allow

employees to respond quickly to customer

requests. Employees are trained to know more

than just their jobs, and to be responsible for

their own health and safety.

Environmental Benefits & INITIATIVESAir conditioning amounts to 70% of all

electricity consumption in the Middle East, so

any savings in electricity helps the environment.

Qatar Cool’s system uses half of the electricity

of most normal cooling systems. Together their

operational plants have saved over one million

kilowatts of power during the past six years.

According to Mr. Al Jaidah, “We have achieved

the elimination of over 200 million kilograms

of carbon dioxide from the atmosphere. This

is equivalent to removing over 26 thousand

vehicles from the roads or planting 14 million

mature trees.”

Qatar Cool is currently enacting several

additional environmental initiatives:

The implementation of Treated Sewage Effluent

(TSE) in their West Bay cooling plants was

recently introduced.



Qatar Cool and Tarsheed plan to work together

to deploy key messages and implement

programs on energy conservation and efficiency

to schools, residents and business owners.

Qatar Cool is a member of the Qatar Green

Building Council (QGBC) and is active in the

Green Education Interest Group, which focuses

on educating and training university students

on sustainability and environmental issues.

Qatar Cool is sponsoring a Green Program

for Schools (GPS) under the banner of Oryx

Advertising and Qatar Today Magazine. The

GPS is an engaging, green environmental

initiative for students that goes beyond typical

competitions, placing the responsibility of

sustainability directly on the students.

In an effort to enhance the conservational

impact and development of district cooling,

Qatar Cool and the Qatar Environment and

Energy Research Institute (QEERI) have entered

into a partnership to improve district cooling

efficiency and to research expanded use of

Treated Sewage Effluent (TSE).

To increase awareness about climate

change, the company supports the annual

Earth Hour global initiative by cutting use of

all inessential electricity at each plant for an

hour. This year’s Earth Hour is March 19 at

8:30 PM.

Conserve Today, Preserve Tomorrow leaflet

- This leaflet, made and distributed by Qatar

Cool, consists of useful tips for conserving

energy, such as maintaining optimal

temperatures, closing off unoccupied

rooms, conducting regular

maintenance and more, for both

users and building management.

Other - The company produces

another leaflet that shows the

benefits of district cooling for

customers, society as a whole, and

the government. It highlights the

fact that electricity is a subsidised

commodity that provides financial

gain when use is reduced. It also

reduces the demand for natural gas,

which is in line with the country’s National

Gas Conservation Strategy.

Qatar Cool is a good example of how

mitigating climate change can result in the

emergence of profitable and environmentally

supportive companies. Whether climate

change is human-caused or not, the

creation of companies like Qatar Cool

and the environmental commitment of the

country of Qatar, itself, benefit the economy,

humanity in general, and the earth we live

on.

QATAR COOL




Seafarms Group

High-end Black Tiger Prawns grow naturally off the north coast of

Australia. Rather than overfishing those waters, Australia’s Seafarms Group will feed the prawn-hungry world with its Project Sea Dragon.

SEA FARMS


Seafarms Group Plans to Launch Australia Into a AQUACULTURE LEADER



The Australian, Northern Territory, and

Western Australian Governments have

announced their support to what could

become one of the largest fully integrated

prawn aquaculture projects in the world.

Australia’s desire to develop its sparsely

populated northern region, combined

with Asia’s hunger for seafood, underpins

this massive new aquaculture venture by

producer Seafarms Group

Ltd.

Worldwide, prawns account

for about 4 million tons of the

total 74 million tons of farmed

seafood produced. China,

India, Thailand, Indonesia,

Vietnam and Ecuador, are the

biggest prawn producers, all

of which farm the whiteleg

variety, plus smaller amounts

of the more expensive Black

Tiger Prawns (Penaeus

monodon).

Australia currently produces

about 5,000 tonnes per year

of farmed prawns, which is

nothing compared with the

others, but that equation will change if the

company’s aquaculture project comes to

fruition. Seafarms is already the biggest

prawn farmer in Australia. Soon it will be

one of the biggest in the world.

According to Seafarms’ Managing Director,

Chris Mitchell, the company conceived of

the project because, “80% of the world’s

fisheries with sustainable catch limits are

overfished.” Global demand is increasing

and the only way of supplying it sustainably

is through farming. At the same time, the

company was looking for optimal ways

of utilising available water and found that

growing prawns would “add an enormous

amount of value” to Australia’s waters.

Aptly named “Project Sea Dragon” this A$2

billion (US$1.45 billion) upcoming project

is centred on a vast cattle station on the

80% of the world’s fisheries with sustainable catch limits are overfished.” Global demand is increasing and the only way of supplying it sustainably is through farming.

SEA FARMS


border of the two northern territories.

There the company aims to start building

ponds in mid 2017 (with most of the work

being done during the dry season) and by

late 2018 expects to be exporting to Asia.

The Seafarms Group is currently proving

the feasibility of the project with a A$16

million (US$ 11.5 million) study, and has

begun securing required approvals and

licences to operate.

Who is Seafarms? Seafarms Group Ltd is an Australian

agri-food company, listed on the stock

market, which operates, builds, and invests

in sustainable aquaculture projects that

produce high-quality seafood. As Australia’s

largest producer of farmed prawns Seafarms

grows, processes and distributes the well-

known Crystal Bay Prawns® premium brand.

Since its inception over 30 years ago, the

company has been farming banana prawns

in Queensland on a relatively small scale and

has only recently commenced growing black

tiger prawns. Although the smaller, sweeter

banana prawns are native to Australia and are

preferred by the Australian palate, the larger

black tiger prawns are preferred by markets in

Asia and other parts of the world. The Northern

Australian coast is their natural habitat.

The company is utilising Seafarm’s

operations in north Queensland

as a pilot project for Project

Sea Dragon, which will supply

protein for the world, while

decreasing the fishing in the

wild that depletes the ocean.

The project will be developed

as an integrated system that

includes all phases of prawn

production - breeding, hatching,

growing out, processing, and exporting.

Northern Australia is uniquely suited to farm

seafood, since it’s difficult for contamination

to spread from other countries to this island

continent. However, its isolation also requires

that seafood be farmed carefully to prevent

contamination starting in Australia. The grow-

out farm will be supported by a quarantine

80% of the world’s fisheries with sustainable catch limits are overfished.” Global demand is increasing and the only way of supplying it sustainably is through farming.



facility in Western Australia, as well as breeding

facilities and hatcheries near Darwin in the

Northern Territory. The geographic spread of

these facilities is designed to enhance overall

biosecurity of the project.

Operations will begin on a nominal 1,000 hectares

(ha) of land based ponds, and will produce

approximately 10,000 tonnes per annum (tpa)

of prawns during the first production phase,

eventually expanding to 10,000 ha. To maintain

surrounding river and coastal environments, and

support adjacent agricultural land uses, Project

Sea Dragon will utilise sustainable land use and

integrated design practices.

Prawn production on this scale is labour intensive.

Chris Mitchell expects the project to provide up to

1,600 jobs in Northern Australia when operating

at full capacity. He estimates that 700 people

will work at Legune, 600 at Kununurra, and

another 300 at Darwin and associated facilities

at Wyndham and Exmouth in Western Australia.

At the same time, Seafarms will be looking for

ways to streamline the

production process and

reduce costs to ensure

they have competitive

pricing for exports to

Asia and the United

States.

Project Sea Dragon

also looks to be highly

profitable. In expanding

the company’s current

production of 1400

tonnes of farmed prawns

to 100,000 tonnes, while

building new saltwater

ponds across the

northern pastoral lease,

Seafarms estimates

that the project’s costs

will be offset by a 44%

return on investment. Assuming a price of A$15

per kilogram, first-stage output of 10,000 tons

should bring in revenue of A$150 million a year,

rising to A$1.5 billion when the company is

producing fully.

There will be plenty of buyers. In addition to China

as the world’s biggest purchaser of prawns, India,

Japan, South Korea, and the United States will

be target markets. Project Sea Dragon may be

the ideal enterprise to kick-start the development

of Australia’s northern territories.

SEA FARMS


Seafarms is already the

biggest prawn farmer in Australia.

Soon it will be one of the biggest in the world.

http://www.cat.com/

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