Mozambique Oil & Gas: TEBA to supply country US$50b LNG boom with skilled locals

Labour hire and training specialist RBR Group (ASX: RBR) is pleased to advise that it has agreed in principle to enter into an alliance with 116 year-old private South African labour group TEBA, to access TEBA’s vast database of skilled Mozambican mineworkers with the aim of securing them employment in the impending US$50 billion LNG construction boom in Mozambique.

The giant Mozambique onshore LNG projects, one of which will be built by the Anadarko-led consortium and the other by the ExxonMobil-led consortium, are expected to present their respective decision makers with their Final Investment Decision (FID) in 2019. Company statements and news articles suggest the two onshore LNG projects will require a combined capital investment of approximately US$50 billion and employ a peak construction workforce of up to 50,000. They will, in combination, be one of the largest investments ever in Africa, and certainly the largest investment in Mozambique.

Although TEBA and RBR are both labour services companies, their capabilities and portfolio of services are complementary and they do not operate in the same markets – TEBA’s focus is on South Africa and RBR’s is Mozambique. RBR’s key point of differentiation is its ability to assess and verify the competencies of its workers against international standards, ensuring they are fully competent before being deployed to the worksite. TEBA has diversified from being primarily a labour recruitment and management service provider to offering a number of additional services including human resources, social and financial services both during and post-employment. In South Africa, TEBA not only serve mines/clients and workers in and around mining communities, but also serve them within their rural communities, spreading the social benefits of employment to the wider community.

TEBA holds the single largest database of mineworker information in Southern Africa, with 1.3 million electronic records dating back to 1983. These electronic records include more than 139,000 Mozambican citizens who are, or have been, employed in the formal mining industry in South Africa. What makes these workers of particular value is that they all have:

 A recognised skill;

 Training in health and safety;

 Languages other than Portuguese, often including English proficiency;

 A verifiable work history;

 Familiarity with living away from home in a camp environment;

 Valid identification documentation;

 Bank accounts and a familiarity with receiving wages electronically;

 Social security registration.

RBR, too, has an extensive database of over 110,000 Mozambican job-seekers. Candidates will be sourced from both the RBR and TEBA databases to meet employment requirements.


Delivering skilled labour to site, every day

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In addition to its database of workers, TEBA is also able to offer:

ASX Release

 Health services, which include occupational health interventions and palliative care programmes to workers, their families and communities;

 Either directly or with its partner, a range of custom non-banking financial services to workers and their families including cash remittances, deferred pay, and funeral insurance;

 Assessments, including: Technical interview; Physical Rating Assessment (PRA); Body Mass Index (BMI); Dynamic Physical Ability Assessment (DPAA); Literacy and Numeracy Assessment; and Vienna Test System (VTS) for drivers and operators.

RBR is able to offer an unrivalled labour services solution in Mozambique, with:

 Access to unquestionably the largest databases of skilled Mozambican workers of any company;

 The ability to source and supply skilled blue collar expatriates, through an alliance with Kuiper International Pte Ltd – see ASX Announcement dated 17 October 2018;

 The ability to provide international standard training and qualifications through subsidiary Futuro Skills;

 The ability to offer these work-ready employees to its clients through RBR’s Mozambican labour hire licence;

 An extensive network of offices across Mozambique – six TEBA offices, three RBR offices and further access to the offices of RBR’s other Alliance partners in Mozambique;

 TEBA’s extensive range of support services for workers and their communities.

Under the agreed terms of the alliance between TEBA and RBR, all contractual arrangements with clients and third parties in Mozambique will be with RBR and/or its local subsidiaries. TEBA will earn fees for each successfully placed worker sourced from TEBA’s database, and for all add-on services provided by TEBA to RBR and its clients.

Construction of the onshore projects is expected to start in the first half of next calendar year.

RBR Chief Executive Richard Carcenac said that: “RBR’s goal in Mozambique is to maximise the employment and economic participation of Mozambicans in the LNG projects, but identifying aspirant workers with the required attributes for employment is a challenge. TEBA’s extensive database of Mozambicans who have worked in the formal mining industry presents RBR with a pool of candidates who can be efficiently prepared through targeted training programs, reducing the reliance on expatriates”.

TEBA Managing Director Dr Graham Herbert said that: “This alliance with RBR provides Mozambiquan citizens with opportunities to actively participate in the development of the country, its people and the communities”.

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