INTERVIEW
Stanislas de
Stabenrath
Director General,
Exploration & Mining Suppliers
(X&M)
Do you see any tangible new mining investments taking
form in Cote dIvoire?
To provide a historical context, the first president of Cote
dIvoire did not want to give a boost to the mining code to
increase mineral investment in the country as his first focus
was the agricultural sector. Agriculture has always been first
priority to devlop the country and bring food and income to
remote areas. Felix Houphouet Boigny idea was that mineral
resources would be for future generation, once the agricul-
tural economic basis of the country would be set up. Also,
seeing political instability of other African country who exploit
natural resources at that time, was probably another reason
why Houphouet did not push exploration and exploitation of
natural resources. These is whymining and oil & gas have
not had a boom in this country previously. During the last
commodities upswing, the Ivory Coast still had severe politi-
cal issues.Exploration permits were not grantedby decree, so
exploration companies were not pumping fund into exploring
Cte dIvoire. Allhassan Ouattara did put the development of
the mining sector as a priority as there is very few gold mines
in Ivory Coast compared to the huge potential relying in the
ground. Remember that Cte dIvoire holds a third of the bir-
rimian volcano sedimentary belt of the West African craton.
The current Minister of Mines, Mr Brou has developed and
implemented incredibly favorable policies and has granted a
lot of exploration permits since he was appointed ministr of
industry and mine. Because of the mineral cycle downturn
exploration investment has been limited in Cte dIvoira as
junior explorers have very limited access to funding on stock
exchange for greenfield projects
The junior exploration companies have a great deal of difficulty
getting funding due to the adverse circumstances of the pres-
ent market, deterring new players. However, some companies
have been exploring intensly in Cte dIvoire in the past few
years. Toro Gold is a new player in Cote dIvoirethey have
their primary site and an advanced project in Senegalthat
has been very active over the past 2 years. The Egyptian com-
pany Centamin purchased Ampella in 2014 for its advanced
project in Burkina Faso as well as for its permit position in
the north of Cte dIvoire,. Ampella has been very aggressive
exploring both Cte dIvoire and Burkina Faso. . Otherwise, al-
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MACIG 2017
ready existent players, such as Newcrest, Randgold, Perseus,
Taurus Gol, Endeavour, have surely amplified their exploration
budgets in hopes of increasing reserve and futur production.
There are few advanced projects which should turn into min-
ing operation in the next year or so. Lets not forget that Cte
dIvoire ground is completely greenfield, so the opportunity
to discover new ore bodies is definitely there. Cte dIvoire
is the next exploration boom destination to come. Many new
companies are seriously looking into acquiring ground position
before it is too late.
Gold has been the primary focus of Cote dIvoire recently
due to the increase in market prices, but what other re-
sources would you argue have valuable potential?
The mineral potential in Cote dIvoire is immense. It is just
a matter of time before more companies start taking advan-
tage of it. Before the downturn cycle, some companies were
exploring for Nickel and Iron ore in the Western part of Cte
dIvoire. All these projects were stopped by the fall of miner-
al commodities prices. Gold exploration and production will
definitely drive the start of the mining scctor in Cte dIvoire
but I am sure that we will see other commodity mines com-
ing along with the increase of geological knowledge in the
country.
Are there enough service providers and equipment com-
panies in Cote dIvoire to keep up with the heightened
overall demand?
The network of service providers is not huge, but once more
mines start opening and more companies exploring the
ground, surely more will settle here. The business environ-
ment is quite straightforward, as the government is keen for
investment. It is easy to get work permits, taxes on profits are
favorable, energy is not expensive comparatively, etc. Electric-
ity for a mine is about a third of the price of what it would cost
in Burkina Faso. Country with a major port. Infrastructure is
very developed in comparison to other countries in the region.
The Ivory Coast is the next prime mining destination for West
Africa, and everyone who is here already knows it. Favorable
policies for suppliers and service provider in the mining sec-
tor are still expected in order to set Cte dIvoire as a West
MACIG 2016
MACIG 2017
African hub for the mining sector: Ghana is definitely more
advanced then Cte dIvoire on that subject.
What key obstacles still exist that you feel might play a
role in preventing investment?
There should be more favorable policies for services provid-
ers in the mining industry. Another one is the poor services
offered by the localbanking sector as well as the impossibility
to hold foreign currency such as USD bank account. From a
legislative standpoint, the new mining code has brought lots
of new and favourable policies, which is why more and more
companies are interested by operating in Cte dIvoire. Nev-
ertheless, certain part of the mining code will probably need
improvement in a close future.
How has X&M Suppliers been able to capture the market
to the extent that it has?
Mining companies are always concerned with cutting opera-
tional costs, and with their needs in mind we have developed
a business strategy that ensures the lowest price for the ut-
most quality. Exploration and Mining Suppliers (X&M) will sell
equipment from stock Cote dIvoire from bonded warehouse
or from custom clear stock, but we can also supply clients
directly from the manufacturer/supplier anywhere in the world
to enhance competitiveness against companies in the rest of
the world. Mining companies are exonerated of import duty,
VAT, and suppliers do not have the same benefit, which is why
we partner with our mining clients to benefit from the exoner-
ation when making sales. Our bonded warehouse also ensure
stock close from our clients operations at the most compet-
itive prices. What solidifies X&M as advantageous, however,
is our service minded orientation, the fact that we will find
a solution for any client needs and that we have developed
a very high expertise in transport and logistic in West Africa
to follow any order from manufacturer until it gets on site.
We understand very well exploration and mining clients prob-
lematic and will do whatever it takes so that the client gets
has fast as possible. Transport and logistic is not an easy task
in West Africa and is one of our main focus to ensure swift
delivery.
X&M Suppliers has developed a large and comprehensive port-
folio of high quality products and consumables ranging from,
Geological supplies, Safety supplies, Identification supplies,
lab QAQC supplies, Vehicles supplies, gas detection supplies,
SCBA supplies, etc.. We develop distribution in West Africa
as well as local and international procurement services.
Our business strategy is to become a one stop shop from
supplying a very large range of supplies (to the exploration,
MACIG 2016
INTERVIEW
mining and various different industries) so that we can work
on volume and get pricing down as much as possible.
We are also assisting foreign supply companies to have a bet-
ter access to the West African market by signing consignment
stock agreement with X&M. Rather than opening an office and
investing large amount of cash in a difficult environment, we
develop consignment stock deal where suppliers have access
to our infrastructure and clients. The only risk foreign supplier
takes is to hold stock within our facilities, so it is a way to
enter West Africa at very low cost and have access to X&M
expertise in West Africa. We are already holding large stock on
behalf of private and ASX listed companies. X&M has set the
largest stock of Standard (CRM) in West Africa in partnership
with Ore Research and Exploration (OREAS), an Australian
private company known for the quality of their products. We
also holds under bonded a large stock of drilling muds, grease
and polymers for the drilling sector in partnership with an ASX
listed companies, Imdex Limited, Amc Drilling fluids. We are
currently discussing with other companies to develop such
distribution agreement and are continuously looking for new
opportunities. X&M is also developing manufacturing solution
and its own brand to be distributed in West Africa and in th
rest of the wolrd.
Working in Africa is surely a risk and a challenge, but X&M is
proof that it is possible, as we started here from nothing and
have since developed into market leaders in our field in West
Africa. The next step for us will be to strengthen our pres-
ence in West Africa as well as growing our stock in the region.
Availability of stock in West Africa, the knowledge on how to
move it quickly and cheaply, and to offer a high client service
is the key to success. Our aim is to build a regional champion
in supplying the mineral and industrial sector
What are X&M Suppliers main priorities looking forward
into the next few years?
Our overarching goal is to expand our footprint in West Afri-
ca and become the preferred regional supplier/procurement
company in the sub region. X&M has in mind to set up in
Burkina Faso, Mali and Senegal in the next few years. With
this goal in mind, X&M will grow the number of employees
and services we offer, increase the number of products we
manufacture, and escalate our stock. We believe in developing
West African resources to grow the business. We hope to
sign more partnership deals to bring new products in West
Africa. We have just incorporated a procurement agency in
Hong Kong to deal with sourcing in Asia.. X&M will continue
to integrate services to add value to the supply chain wherev-
er we operate.
31
EDITORIAL
Services
To support new exploration companies
and offer local expertise, Cote dIvoire is
home to an array of Africa-experienced
service providers and small consulting
firms. Amongst these firms is Biotitiale,
an environmental consultancy firm,
launched in 2012. If a client wishes
us to complete all requirements until a
permit is obtained, we can provide that
service, or else we can help with par-
ticularities related to each mine. We can
coach a company as to how to obtain all
of the various permissions required from
the Ministry of Industry and Mines as
well as other institutions, especially in
all matters concerning safety, security
and the protection of the environment,
explained general manager for Biotitiale,
Yao Kossonou.
Exploration companies also require
sample analysis, but laboratory support
has not been historically easy to access
from Cote dIvoire. ENVAL is one local
consortium taking advantage of this gap
in the market. What began in 2000 as
an environmental impacts bureau has
since evolved into a multi-industry physi-
ochemical laboratory for pollution, oil and
soon mineral sample analyses. ENVAL
operates the largest laboratory in Cote
dIvoire, and is the second laboratory to
achieve ISO 17025 certification, ahead of
SGS, Bureau Veritas, and Intertek. This
new laboratory will be the very first of its
kind in Cote dIvoire for mining analysis,
Bakary Coulibaly, managing director of
ENVAL, explained. Due to our proximity
to the mines, we can deliver results in
a shorter time frame at the same level
of standards as the laboratories in Ghana
or South Africa. When given a sample for
analysis, our results are ready between
a 24-hour to 48-hour timeframesome-
thing that is impossible for our competi-
tors to deliver.
Stringent local content laws are not in
place at present, with the intention of
providing one less obstacle to entry for
businesses. Within the players in the
market, a strong majority think that local
32
content development should be tackled
via capacity training, according to GBRs
industry executives survey results. Sou-
dure Industrielle Et Construction (SIC-CI)
is an Ivoirian industrial welding and con-
struction company which began working
for the main oil refinery of Cote dIvoire.
After the new mining code was passed,
SIC-CI decided to integrate the mining
industry into their business under the
premise that multinationals would be
more inclined to dedicate energy to-
wards knowledge transfer. It is never
easy for a new company to get a market
share in mining, noted Mandjou Kourou-
ma, director general of SIC-CI, but we
have local competencies in place with
an excellent and talented team of local
workers. By using local talent we can
save costs for both ourselves and our
clients.
Indeed Abidjan, the commercial capital
of Cote dIvoire, is emerging as a local
service hub to the francophone West
African mining region in part to do
with its strategic location, infrastructure
and port facilities, but increasingly due
to a well functioning legal system, gov-
ernment and a relatively well educated
population. CAT distributor Manuten-
tion Africaine built its training center in
Abidjan given its great confidence in the
country. Cote dIvoire certainly has the
best infrastructure in West Africa, ex-
plains Ludovic Boland, mining manager
for Manutention Africaine, Power sup-
ply in the country is good and most of
the mines are running on the grid with
only backup power plants. Road infra-
structure is much better than the roads
in other territories, and mines are easily
accessible. Earthmoving and construc-
tion equipment provider Kanu Equipment
Cote dIvoire has evolved to become the
companys largest operational branch in
the region. By 2019, the government
aims to have built around 7000km of
new, modern roadways. This develop-
ment has already begun, and new inves-
tors are increasingly more present, says
Francois Bigara, managing director of the
Cote dIvoire division.
The national government is working on a
port extension project to further increase
accessibility and ease the logistics of ex-
port. In Cte dIvoire the government is
very focused on infrastructure develop-
MACIG 2017
ment to support the development of the
economy, states Jean-Michel Maheut,
regional director for Bollor. The exist-
ing infrastructure is acceptable for gold,
which does not need as many contain-
ers, but more investment is needed for
the containers in order to support export
volumes of exporting base metals such
as Manganese and iron ore. Construc-
tion will also commence within the next
two years for a new containers and ves-
sels quay and a logistics industrial area
near Yamoussoukro.
The promising direction of the coun-
try and the strength of the Society for
Mining Development (SODEMI) have
cultivated trust from many multination-
al suppliers and service providers as
well. EPC Groupe, a world leader in the
manufacturing, storage and distribution
of explosives, recently installed a mod-
ular group plant in Cote dIvoire. Our
Though it is set into the
new Mining Code, the local
development funds in place seem
to have a few difficulties to be fully
implemented. A wider
consultation with the stakeholders
would help amending accordingly
this important law, which
should contribute to the realization
of tangible projects, as well as to
the acceptance by the communities
of the mining
projects.
Togo, Mali, Burkina Faso, Niger, and Benin. Hyspec, which pro-
- Bodiel Ndiaye,
President,
Mining Association in Cote
d'Ivoire (GPMCI)
X&M, says Stabenrath, Rather than opening an office and
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MACIG 2017 EDITORIAL
develop consignment stock deal where suppliers have access
to our infrastructure and clients. The only risk a foreign suppli-
We want to enter into a dialogue with mining er takes is to hold stock within our facilities, so it is a way to
enter West Africa at very low cost and have access to X&M
companies so as to ensure a healthy environment for
expertise in West Africa. We are already holding large stock on
the good of the workers, the communities nearby and behalf of private and ASX listed companies. X&M has set the
for the mining companies themselves. largest stock of Standard (CRM) in West Africa in partnership
with Ore Research and Exploration (OREAS), an Australian pri-
vate company.
- Yao Kossonou,
General Manager,
Conclusion
Biotitiale
Aside from challenges common to the operational environ-
ment of African terrain, Cote dIvoire is unanimously deemed
the top mining destination in West Africa for those who have
the experience and girth to commit to a long-term vision in the
region. Its exceptional infrastructure, connectivity, and political
stability fill in the cracks of what was once a shaky foundation.
Now that the implementation of these essential elements are
proving successful, thought leaders are able to more fluidly ad-
vocate for development on a grander scale: We should start
sharing the knowledge that we have as to optimize projects
investment illustrates our belief in the potential of the coun- and industry operations. The mutualization of knowledge and
try, says Jean-Jacques Koua, managing director of EPC Cote skills would benefit everyone in the country as well as in the
dIvoire. Multinationals that are already present in the country entire West African region, explains Shane Brady, managing
are preemptively training staff in correspondence with their ex- partner of WINGI Group.
pectations for minings impact on domestic power needs: We
have implemented programs for training young people around
mining sitesmainly concerning electrical engineeringto as-
sure that we also retain the human capital needed to keep up
with the increase in energy demand, states Dalil Paraiso, West
Africa general director for Schneider Electric.
EY, for example, has chosen Abidjan as its regional base, as
Eric Nguessan, partner, EY Cote dIvoire, explained: EY Cote
dIvoire positioned itself in Abidjan as the center point between
Canada and Australia because a great deal of foreign direct in-
vestment comes from those two mining powerhouses. Glob-
ally, EY has nine world mining partners, and in West Africa, EY
Cote dIvoire is the hub for the region. From Abidjan, we cover
vides hydraulic hoses, greasing machines, oil transfer services
and more, offers itself as a case study for the strategic value
of Abidjan as a hub. We experienced 180% growth due to our
increase in services from the strong clientele that we currently
hold. We have good products and even better know how, so
we are confident that we will continue to grow, says Michel
Bertoncini, managing director of Hyspec Cote dIvoire.
X&M Suppliers is another Abidjan success story, as their man-
aging director Stanislas de Stabenrath has honed in on risk
adverse business models to steadily increase investor confi-
dence in the stability of the country. We are also assisting
foreign supply companies to have a better access to the West
African market by signing consignment stock agreement with
investing large amount of cash in a difficult environment, we
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