ALG and Snowden Group’s Comprehensive Audit of Togo’s Phosphate Sector
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Evaluation and Updating of Ore and Reserve Information
ALG and Snowden’s audit included a thorough analysis of various phosphate layers in Togo, encompassing the loose layer (present in Hahotoé, Kpogamé, and Dagbati), the carbonate layer (also found in Hahotoé, Kpogamé, and Dagbati), and the metamorphic layer (located in Bassar). This evaluation involved an in-depth examination of the phosphate sector’s role within the broader Togolese mining industry, incorporating previous estimates and simulations to position the country’s phosphate resources within the international context while considering the risks associated with the mining sector.
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Technical Evaluation of Facilities
The audit included a comprehensive technical evaluation of the phosphate production facilities, benchmarking them against industry standards and international best practices. This evaluation encompassed an assessment of the mine production tools, the plant production tools (including their condition, performance, and electricity consumption), and the transport equipment (evaluating their condition, reliability, and adequacy).
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Evaluation of Production Methods
ALG conducted a thorough evaluation of the production methods employed in the phosphate sector. This included an assessment of the process and operating cycle, as well as an evaluation of the work organization and the suitability of employee skillsets to the company’s needs.
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Future Stages of the Mine (Carbonate Layer)
The audit also focused on the future development of the mine, particularly the exploitation of the carbonate layer. ALG proposed the most suitable process for extracting resources from this layer, considering both technical and economic aspects. Additionally, the audit assessed the potential exploitation of the carbonate layer, including future energy, logistics, and facility requirements. The financial, technical, and human resource needs for this future development were also evaluated.
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Administrative Assessment
ALG conducted a diagnostic study of the administrative aspects of the phosphate sector, focusing on the organizational structure of the Société Nationale des Phosphates du Togo (SNPT), which has 1,800 employees, and identifying the training needs of the company’s executives.
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Financial and Economic Aspects
The audit included a comprehensive assessment of the financial and economic aspects of the phosphate sector. This involved evaluating the physical, accounting, and intrinsic values of fixed assets, analyzing the evolution of export revenues, studying the tax regime, and assessing the impact of phosphates on the national economy and its potential within the global phosphate market.
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Commercial Assessment
ALG evaluated existing contracts and commercial aspects of the phosphate sector. The audit noted that during the 1990s, most of the concentrated ore was exported to international markets, including Canada, Asia, and South Africa.
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Product-Market Suitability
The audit explored downstream processes that could be implemented to meet the technical specifications of the market. It considered two potential scenarios: (a) refocusing on intermediate regional markets (such as South Africa) and right-sizing operations accordingly, or (b) if technically feasible, reducing or removing deleterious elements (like cadmium) through a benefit-cost analysis of the required investment, coupled with a market penetration analysis (e.g., for the European market).
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Socio-Environmental Assessment
The audit also considered the social and environmental impacts of the SNPT’s operations, including the displacement of communities and the expansion of the mine. ALG proposed recommendations for improving environmental and social management practices.
The ALG/Snowden consortium successfully delivered all the required products and deliverables to the World Bank and the Togolese State, meeting their expectations and requirements. For further information on this project, interested parties can contact ALG via email at [email protected].
