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ACHIEVING BUSINESS EXCELLENCE ONLINE

EUROPEAN EDITION Issue No.2

auriant mining: metro de madrid: vingcard elsafe: Torresol Energy - Gemasolar:

THE HELIOSTAT FIELD Becoming a world leader in the Concentrated Solar Power sector

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Chief Executive

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FEATURES

10 Time management

Making time

The challenges that managers face with respect to time management, and some proven ideas to help make the most of your time.

10

16 Technology

One source of truth

Supporting cross-border business growth with Enterprise Resource Planning (ERP) used to be the preserve of blue chip companies. However, a modular approach allows smaller firms to centralise, localise and scale as required.

26

26 Entrepreneurship

Can you hack it?

A successful hacker turned business owner talks about what he looks for in potential employees.

32 Sales and marketing

Best of enemies or sworn friends?

The ‘on/off’ relationship between sales and marketing functions persists across organisations of all sizes and is threatening business success.

4 | be europe

contents

38 Strategy

Succession planning

38

Succession planning is not just about maintaining a leadership pipeline anymore. It has evolved into a strategy that helps high performing companies stay ahead in growth and profitability.

44 finance

The evolving role of the CFO

Chief Financial Officers are playing an increasingly important part in the executive decision-making process as business leaders today want someone who can be their ‘right hand man’.

44

be europe | 5

business showcase

50 62

energy: 50 Torresol Energy, Gemasolar

THE HELIOSTAT FIELD

Torresol was established with the aim of becoming a world leader in the Concentrated Solar Power sector.

62 Optimus (Aberdeen) Limited Dedicated to decommissioning

Boutique engineering consultancy Optimus has developed a unique approach to decommissioning that is garnering growing recognition among operators.

Telecoms: 70 Finnet Association

Fibre for all

70 6 | be europe

The Finnish telecommunications organisation is piloting a new concept in home computing that could revolutionise the way we operate.

contents

Manufacturing: 78 VingCard Elsafe

Opening the doors of opportunity VingCard Elsafe continues to innovate and excite, as its recent unveiling of the first invisible door lock demonstrates.

86 Colakoglu

Turning back the challenge

78 94

With conditions in the steel industry continuing to prove challenging, it is Çolakoglu’s ability to adapt to a constantly changing marketplace that has contributed most to its long-term success.

Transport & logistics: 94 Metro de Madrid

METROPOLITAN METRO

Madrid boasts one of the largest networks in Europe, serving most of the capital city and a good part of the suburbs.

Retail & Leisure: 106 U232 Hotel

Elegance personified

106

The hotel sector in Barcelona is rightly held in particularly high regard for its quality of service and product offering. One property upholding these characteristics on a daily basis is the U232 Hotel.

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business showcase

112 126

Mining & minerals: 112 FerroAtlántica The metals of energy

Grupo FerroAtlántica remains the world leader in silicon metal and other diverse alloys.

126 EMED Mining A GIANT WAKES

EMED Mining is ready to spring into large scale copper production at the end of this year.

134 Auriant Mining

Discovering one’s potential Auriant Mining’s aspiration is to become a mid-sized gold producer.

144 GeoProMining

134 8 | Be europe

Taking a professional approach International mining expertise and on-the-ground experience has created an enviable track record.

contents

152

152 Eurostar Diamond Traders

Polished perfection

CEO Kaushik Mehta, discusses how the company is geared up to meet both the challenges of today and the future.

162 Eldorado Gold

Adding value through exploration Vice-president and general manager for Greece, Eduardo Moura, discusses how the company’s activities in the country are playing a fundamental part in helping to achieve its goal.

178 Eti Bakir

BLISTERING ACTIVITY Eti Bakir AS mining group, one of the major producers of copper and pyrite concentrate being mined in Turkey.

188 park Elektrik

162

CINERGY

188

A constantly evolving company, today it is principally known as a producer of copper and asphaltite.

196 ETI Soda

BASIC EXTRACTION ETI Soda has been producing soda ash, a key industrial mineral since 2009.

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Making

time The challenges that managers face with respect to time management, and some proven ideas to help make the most of your time

written by: Simon Orme

10 | Be europe

Time management

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to stop reading. But if, like most of us, you could do with a hand planning your time, or an extra couple of hours in the day – read on!

The problem with being a manager is that much of your working time belongs to other people. As a result, many managers complain that they have very little time to achieve anything themselves – they are too busy solving other people’s problems and not getting their own job done.

Discretionary and non-discretionary time Most managers have a workload that is a balance between discretionary and non-discretionary time.

Discretionary time is that proportion of the working week where you can decide how to allocate your time and attention – or ‘me’ time, if you will.

Non-discretionary time

“The problem with being a manager is that much of your working time belongs to other people” 12 | Be europe

YOUR

TIME

W

e’re all familiar with the scenario – you have so much to do, people to manage, targets to meet, reports to submit – and then, boom! Something unexpected arises and all of a sudden, your time is all spent on resolving whatever it is, and you have even less time to do your actual job. Not only will you be hindering your own progression and chances of possible promotion by working in this way, but you can become a bottleneck for important decisions and end up delaying important actions while you sift through mountains of tasks.

There is a logical way of taking a lot of the burden off, and it’s so easy, you’ll kick yourself that you haven’t done this before! If you’re happy with the way you manage your time, feel free

Time management

TIME

is that proportion of the working week which has to be allocated to specified tasks or activities – management meetings, staff reviews etc.

Another aspect of nondiscretionary time is unscheduled events – these I call ‘interruptions’, they eat into the discretionary time element and cannot be predicted, planned or even avoided.

Strategies for time management The first strateg y is based upon delegation or avoidance. This is where the manager allocates responsibilities and authority to subordinates, so that the incidence of interruptions is reduced. By establishing what levels of authority and responsibility individuals have and encouraging them to exercise them, not only do staff become better at their jobs, the frequency of interruptions is also reduced.

Not all interruptions can be avoided, so it is also necessary to define the basis on which issues are raised for management attention, this is referred to as the

escalation path. Some time will be needed in order to train people in using their initiative effectively, but in the long run; the benefits far exceed the time spent on this area.

The second strategy is to reduce the time spent on dealing with issues which war rant management attention. This is called ‘meeting management’ and generally needs to be taught.

Much time is wasted in meetings because people come with unstructured information and poorly defined problems. I have found it useful to develop a structure for ‘interruptions’ that contains the following elements: • What is the issue/problem?

• W hat is the impact of the problem?

• What options do we have to deal with it?

• W hat actions do you want me to take?

I have stuck to this structure and sent people away who did not come properly prepared. The message soon got around and I had much more productive meetings as a result.

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THEI

Discretionary time management I made a point of dividing my discretionary time between three areas: • Planning – how to improve performance in my role • E xecution – introducing changes that would improve the performance of my team • Management – measuring and assessing individual and team performance.

My guiding principle was that my key role as a manager was to get superior results, through the performance of others. To fulfil this objective I had to recognise that: • I cannot do it all myself • I must not become a bottleneck for decisions • If I am always solving problems for others I have no time to achieve performance improvement • By delegating authority and

PLANNING

responsibility I am building a better and stronger team • Getting the job done is not sufficient – I must continually strive for performance improvement.

Management style and time management Many managers regard their promotion to that role as a reward for performance and ignore the responsibility of using their skills to improve

EXECUTION

Time management

“The underlying message is to find ways to use management time more effectively and focus on performance improvement” the performance of others over whom they have authority and responsibility. I believe that a high proportion of discretionary time should be devoted to planning

MANAGEMENT

and achieving overall performance improvement – if this approach is successful then your life is made so much easier, and your company gets the benefits of the increased experience and expertise.

Managers who ignore this responsibility quickly find that they become overloaded with problems and issues that absorb their time and inhibit performance improvement.

The ways in which these issues are addressed defines the management style of the manager. In my experience t hose who ac hieve consistently superior results are those who recognise these challenges and use their abilities to address them.

The questions you, as a line manager should ask

yourself are: • How well do I manage my time?

• How well do I manage the time of my team?

• How much time do I have for pro-active performance improvement?

• How do I get my team to share the load of decision making and problem resolution?

The underlying message is to find ways to use management time more effectively and focus on performance improvement. The more you can train your staff to be able to delegate to them, the more time you will have to work on your own improvement and the improvement of the business.

Simon Orme is managing director of Emros Partners, a growth development specialist for innovative solution suppliers in the technology sector. www.emrospartners.com

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Technology

One source of truth Supporting cross-border business growth with Enterprise Resource Planning (ERP) used to be the preserve of blue chip companies. However, a modular approach allows smaller firms to centralise, localise and scale as required

written by: Wiegert de Vos

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S

mall and medium sized enterprises (SM E s) a re more active in inter national markets than ever before.

Advances in technology and lower barriers to international trade have made it easier for them to compete globally, yet building a network of subsidiaries presents a fundamental challenge, with each business unit operating in a different environment.

It is therefore critical to have one set of master data for managing core business functions like benchmarking (KPIs), communications and reporting. ERP software is designed to achieve this, by integrating business processes, functions and workflows within a single IT architecture. It provides one ‘source of truth’ and supports the efficient flow of information across the organisation.

However, ERP projects are notorious for taking longer and costing more than anticipated. Even the most well-equipped organisations struggle to successfully realise the expected business benefits. Indeed, the scale and

18 | Be europe

complexity of ERP projects has meant that historically, only very large and multinational cor porations have undertaken an organisationwide implementation.

Smaller firms that do successfully deploy ERP at their head office can then find it difficult to ‘stretch’ their central system across multiple sites. International subsidiaries in particular have very different needs – both in terms of the business processes they employ, and local culture, language and legislation.

In order to make ERP more relevant to smaller firms with international operations, innovative midtier vendors now offer modular systems. Available at a fraction of the cost of toptier cross border solutions, modular ERP enables SMEs and entrepreneurial organisations to expand their implementation one step at a time without weakening it.

Out-of-the-box, standalone extensions to a company ’s existing infrastructure ensure that new operations enjoy the same level of support as the HQ. Each new ‘add-on’ can

“ERP proj notorious longer and c than ant

jects are for taking costing more ticipated�

Technology then feed into a central master data system, allowing local offices to run independently while contributing to company-wide reporting.

The ERP’s reach is extended as required, rather than being stretched. Faster and cheaper to implement, smaller organisations are able to grow their system in line with their business needs and in response to market demand.

The Pareto principle Deploying additional, highly specific blocks of certain ERP functionality can deliver significant business benefits.

Rapid improvements can be made in targeted areas rather than trying to manage the wide range of challenges associated with broad and therefore complex implementations.

Basic yet essential functions like financials can be up and running in a matter of days or weeks, whereas a full ERP rollout can take months or even years.

Moreover, experience shows that with ERP deployments, the Pareto principle (the 80/20 rule) often applies. Focussing ERP

on the 20 percent of functions and features that align with core business processes will typically account for 80 percent of the efficiency gains to be realised.

Crucially, a modular approach to ERP allows SMEs and entrepreneurs to address the overriding organisational challenge posed by expansion across borders – the evolution of management. When a business moves to a more formal organisational structure its head office must maintain organisation-wide control. At the same time, subsidiaries need the freedom to drive their own objectives in local markets. Empowering them at the local level with the functionality they need, while still maintaining a holistic overview of the company, is the key to success.

For senior management at head office, the main concern is a lack of business transparency. Reporting will usually be done monthly but can often be subject to delay and based on definitions and procedures differing from those used in other subsidiaries.

Conducting like-for-like

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comparisons of KPIs such as inventory levels, day sales outstanding, and product mix and margins therefore becomes highly complex and time-consuming.

Modular ERP can help.

Running one master data system used by all subsidiaries provides a single source of truth and delivers improved insight and reliable crossborder KPIs. Standardising centrally and localising where necessary ensures clarity and supports standardised reporting practices.

20 | Be europe

Effective communications Eden Chocolates for example, has a production facility in Suzhou, China and implemented the same midtier ERP package used at its head office in Belgium.

This way, the company has been able to align its finance and accounting, inventory, production and quality control functions locally while ensuring effective communications between its Suzhou plant and head office.

This has resolved many

of the inconsistencies in communications that existed previously.

“Our two offices currently keep separate databases,” says Alven Ge, Finance and Human Resources Director at the Eden Chocolates plant in Suzhou. “Only top management can access both databases, but we still need to be able to communicate without difficulty. When the Belgian office downloads reports, they can easily understand them because they use the same system,

Technology

“When the Belgian office downloads reports, they can easily understand them because they use the same system” which saves time. Sometimes head office sends us a sample report from their own ERP, so that we can send them exactly what they want.”

Eden Chocolates uses ERP to administer the entire process of producing chocolates – from generating sales to

shipping and everything in between. When a sales order is received, it is entered directly into the system, from which an MRP (materials required planning) is created and issued to the sourcing team. Once a supplier has been selected, the ERP system generates supplier and pricing information, as well as item codes for new materials. It also tracks incoming supplies and customer orders, creates production orders, and makes this information available to the warehouse for shipping.

Once finished goods have been shipped, a sales invoice is generated and sent to both the customer and the accounts receivable department.

The latter can then create reports to see whether there are still suppliers that need paying, or whether there are outstanding payments from customers. Eden chocolates also uses its ERP system to assure quality control, by

tracing all items leaving or entering its factory, recording det a i led i n for mat ion relating to inspection, and monitoring the shelf life data of individual ingredients.

“The system prevents waste and saves money, because it automatically generates reports telling us which individual items will expire in the near future.”

Improved visibility A nother mid-sized company to benefit from a standardised yet localised approach to ERP is Vacu Vin, a manufacturer of food and wine consumer products.

Vacu Vin implemented a mid-tier ERP system across its eight subsidiaries in Europe and North America to improve decision-making and the level of support provided to subsidiaries. Using ERP, Vacu Vin has automated its procurement and warehouse processes, enabling local

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Technology subsidiaries to ship directly to local customers and eliminate double entry, meaning time savings, fewer errors, and faster delivery times.

According to Vacu Vin’s Stephan Schneider, the company’s ability to plan production centrally has also improved considerably as it can now view local stock levels directly, as well as incoming sales orders from local offices. “The result is better capacity planning and

Using ERP has also enabled Vacu Vin’s head office to benchmark subsidiar y performance and react accordingly. “Today, we have global, real-time visibility of our business operations,” continues Schneider. “There is a huge difference in our ability to support our eight subsidiaries, because product sales managers in the head office can react very quickly to problems. Today, all subsidiaries run ERP, and

“Our inventory levels are lower today because of the visibility ERP provides” utilisation as well as fewer out-of-stock situations,” he says. “Furthermore, our inventory levels are lower today, because of the visibility ERP provides. Our ability to plan sales is much better and therefore we need fewer inventories. Finally, we can better support local resellers in terms of selecting the optimal product mix and purchase volumes and they really appreciate that.”

it is easier to benchmark subsidiary performance and take corrective actions. For example, one subsidiary saw a 30 percent revenue increase after a change project that was started due to the business intelligence from ERP.” Simple, but powerful Despite the simplicity of the modular approach when compared to projects proposed by the top

tier international ER P providers, there is clear evidence from successful multinationals that they have the power to continue driving impressive growth.

W hen Bugaboo, a Netherlands-based manufacturer of baby buggies, launched in 1999, the team comprised just six people and was working with very simple installed systems. Accounting was done on a small scale and Bugaboo’s ERP requirement was minimal. Opting for an SME solution to support its wholesale & distribution operations, Bugaboo has subsequently grown to be a major international player with operations in Australia, Spain and the US. It therefore conducted a review to determine whether its ERP platform could still provide the necessary level of support.

“Exact software is actually intended for the SME sector and as we are undergoing tremendous growth we decided to take a critical look at the situation,” says Rob van Dijk, project leader for system development at Bugaboo.

“We looked at a number of different systems, including

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the big players with ERP packages. We nevertheless came to the conclusion that we were still very satisfied with Exact and would stick with it for a number of years.

There are two reasons for this: it works very well and is excellent value for money.”

All the sales organisations within the Bugaboo group use its ERP system, with every site linked to its four international divisions, while its central customer contact centre records all contact points within the system.

As well as accommodating local legislation for tax, local transport and language, the ERP platform has enabled Bugaboo to develop a worldwide Retail Online Ordering portal. Users can create inbound and outbound orders based on a range of factors – including prices, product range, language, and inventory and delivery time – which are then

processed automatically and forwarded electronically to retailers, logistics partners and e-commerce platforms.

Trustworthy reporting, out-of-the-box In the past, too many firms have relied on spreadsheets and non-connected systems to support international growth. The risks of this approach are wide-ranging.

Manual processes are prone to human error, while data cannot easily be shared or compared with that held in other spreadsheets or systems. Conversely, if all sites use the same system, it is comparatively simple to reconcile definitions, maintain a consolidated database and report on it.

Using a modular ERP architecture and web services, it is relatively straightforward to build a hyperlinked crossborder backbone to provide SMEs with an integrated

view of their business. A modular architecture means that a company can use only the ERP features necessary to support core business functions when establishing a new site.

In addition, innovative ERP vendors are offering monthly subscriptions like those employed under

“smaller firms should not be afraid to think big with ERP. Today’s modular solutions offer powerful functionality at an attractive price point” 24 | Be europe

Technology

the software-as-a-service (SaaS) model, providing a flexible alternative to the rigid user licensing agreements employed by top-tier ERP players. Under the utility pricing model, the cost of the licence and ongoing maintenance are aggregated into a recurring monthly fee. There is no minimum contract period and upgrades can be implemented on a pay-asyou-go basis. This allows SMEs to start with a subset of ERP functionality and add new features as their business grows.

With the traditional capital outlay eliminated and a monthly fee that is a fraction of the cost of conventional ERP licensing, SMEs have the flexibility to scale rapidly both up and down depending on the local market requirement.

At the same time, ERP allows organisations to pool strategic functions such as finance, HR and marketing at one location and deliver

them as a shared service to local subsidiaries.

Ultimately, smaller firms should not be afraid to think big with ERP. Today’s modular ERP solutions offer powerful functionality at an attractive price point, with the flexibility to scale both up and down as necessary for an extremely efficient, low-cost and rapid ERP implementation.

Wiegert de Vos is marketing director of Exact, a leading global supplier of business software. www.exact.com

Be europe | 25

Can you h

A successful hacker-turn about what he looks for

written by: Do

26 | Be europe

Entrepreneurship

h ck it?

ned-business-owner talks r in potential employees

ominique Karg

Be europe | 27

Entrepreneurship

E

very child, at some point, will be asked what they want to do when they grow up. Few will declare themselves set for a life as a ‘hacker’ and fewer still declare themselves CEO material. Yet, with many production lines either grinding to a halt or manned by robots, technology has become the beating heart of many organisations. Dominique Karg, proud hacker and co-founder of AlienVault, asks whether we should be nurturing a different skillset in our young.

There has been much debate in the UK about the GCSE exam format. On the one side are those that argue it should be scrapped in favour of a complex testing process to produce stronger candidates; others believe this disadvantages those

youngsters who buckle under the pressure of examination conditions. Both sides have valid points but surely what’s being ignored is the bigger picture—making sure these future employees graduate with the life skills needed for their working lives ahead.

Blue sky thinking In a classroom environment, children who question teachers are labelled as trouble makers, and those that take things apart as delinquent. But surely that’s exactly what’s needed in today’s world?

Rather than a workforce of followers, I like to hire people who think outside the box, question everything and challenge the rulebook— as long as it’s legal. Let’s face it, if Columbus hadn’t sailed out to check, perhaps many would still believe the world was flat.

As a hacker, my instinct

“Rather than a workforce of followers, I like to hire people who think outside the box”

is not just to try what I know works, but look for ways so that it doesn’t. As a businessman I recognise that just because something’s always been done a certain way doesn’t necessarily make it right. I need to constantly evolve, and ensure my business does too, if we’re both to survive.

What about the box?

The same is true for technology. It too is continually evolving and employees who are scared of change are going to hinder these advancements.

In the classroom children need to embrace exploration and excite in discovery, not run from the prospect.

As we continue to rely on technology, for even the most basic of functions in the workplace, the ability to look at a problem from every conceivable angle, to discover a working alternative, is a necessity.

Does this mean we need a shake-up of the examinations our children take? Who knows? What I do know is that the curriculum and teaching practices need revolutionising to ensure

Be europe | 29

technology isn’t just used for other subjects, but learned in its own right.

Play to your strengths When playing video games as a child, I would always look for ways to ‘break’ the code to secure myself additional ammo, extra units or create different guises. There will be some who see it as cheating, but is it? Surely I’m just using my skills effectively. For me, the fun of the game is beating the game designers.

If it gives me an edge then

30 | Be europe

shouldn’t that be applauded rather than something to be ashamed of?

Transferring this to my career, I wouldn’t have got very far if I gave up at the first hurdle. Similarly, I wouldn’t have made many sales if I stopped with the first no. What we need our youth to value is tenacity, not just an A*.

Learning from living I’d be the first to put my hand up and say I ‘dropped out’ of university but that doesn’t

make me a failure. In fact, quite the opposite. I have a fire in my belly and a passion for security that I’ve used to get where I am today. As an employer it means I don’t just look at a CV to see what grades a person had when they left full time education, but what they’ve done with them since.

As parents we can become fixated on the grades our children achieve and, yes they are important, but they’re not everything. Perhaps what we also need is a ‘common

Entrepreneurship

“I don’t just look at a CV to see what grades a person had when they left full time education, but what they’ve done with them since” sense’ examination. I’ve interviewed a few ‘Grade A / 1:1’ students over the years who struggle to function in the ‘normal’ working world.

Surely the education system has failed them!

While I wouldn’t advocate every primary school child

be given a computer and then taught how to break into government databases (although it would certainly keep these establishments on their toes), I do think inquisitiveness should be actively encouraged rather than seen as an evil that needs to be quashed. If a child has a natural talent – be it football, mathematics or even breaking code, this should be the focus rather than the elements of the subject that are likely to appear on the examination paper.

We need employees who are willing to stand up for what they believe and question what they think is wrong. Perhaps then rogue bankers won’t cripple our

financial institutions. In my experience, the best person for the job is someone with passion – certainly the best security professionals are those that are passionate about security. Of course, the basics are important but so is creativity and flair.

Just like I recognised my skills as a hacker from an early age, now as an employer I recognise the skilled individuals within my workforce and deploy them appropriately.

What I think is important is passion, creativity, morality and tenacity.

As long as these score an A* then that’s the main qualification I’m looking for from future employees.

Dominique Karg is co-founder and chief hacker at security management firm AlienVault, where he combines his two computer related passions: security and the power of open communities. www.alienvault.com

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Best of enemie or sworn frien The ‘on/off’ relationship between sales and marketing functions persists across organisations of all sizes and is threatening business success.

New research signals that sales and marketing need to bury the hatchet

written by: Phil Brown

32 | Be europe

Sales and marketing

es nds?

Be europe | 33

E

arlier this year, The Channel Partnership under took r e sea r c h in partnership with The Leadership Foundation to examine the relationships between sales and marketing professionals in businesses.

A thousand sales and marketing professionals were interviewed to understand why disconnects and communication breakdowns are so common between sales and marketing teams.

Our report, Sales and Marketing: Best of enemies or sworn friends? found that although sales and marketing teams both value marketing, tensions, misunderstanding and a lack of communication between the divisions is putting their business success at risk.

Fifty seven percent of respondents reported that a lack of a cohesive strategy

was a source of problems with their organisation’s go-to-market approach.

They claimed less than twothirds of marketing activity was part of a long-term plan, and that more than a third is unplanned and reactive.

Almost a third felt that marketing activities were too driven by short term goals and admitted that around a third of planned marketing activity doesn’t ever get implemented – so ends up being a waste of time and money.

Two thirds of respondents said the divide between marketing and sales teams is driven by the fact that the teams are set different targets and objectives. In addition, nearly two-thirds felt that political conflict between senior managers was a cause of disconnect between the teams. Poor communication between departments, a failure to value each other’s contribution to the business,

“the divide is driven by the fact that the teams are set different targets and objectives” 34 | Be europe

Sales and marketing and lack of understanding of each other’s roles were also highlighted as issues by more than half of respondents.

Another major bugbear for 59 percent of sales executives is that marketers don’t spend enough time talking to customers and so don’t understand how their products or services create value for them. Over half of sales executives also said that marketers lack understanding of the sales role and equally, over half think the marketing team don’t understand what the sales team needs to be successful. Forty eight percent claimed that marketers lack commercial awareness.

It would also appear that many businesses are failing to get their sales and marketing managers to work from a common set of objectives and targets, and to fully understand each other’s role and value.

These misunderstandings are ultimately leading to a lack of alignment in organisations which will impact business success. Only 16 percent of marketers felt that all of their go-to-market activities were fully aligned today. A range of factors were highlighted

59% Amount of surveyed sales people who believe marketers don’t spend enough time talking to customers that limit their ability to build fully integrated plans. Lack of budget was identified by 27 percent of marketing people as a very significant obstacle, as well as a lack of direction from senior management (26 percent) and lack of time (24 percent).

Disconnects are no good for any business, because each team has a crucial role to play in the go-to-market strategy of the organisation.

Any conflict will naturally result in a less than cohesive approac h, u lt i mately undermining the ability to drive sales revenues.

All these issues culminate in sales and marketing executives both claiming the other doesn’t understand their needs and the contribution they make to the business. The fact that marketing is perceived as

Be europe | 35

not understanding the needs of salespeople ref lects another common issue, which is the perception that marketing fails to take responsibility for the end-toend go-to-market process.

On a more positive note, sales people do value many marketing activities. A wide range of marketing activities were rated as ‘valuable’ by at least two-thirds of salespeople, including building brand awareness (83 percent), generating sales leads (83 percent),

36 | Be europe

developing compelling propositions (81 percent), and providing market insight (81 percent), which suggests the commonly held view that sales people don’t value marketing is overstated.

While they may value these

81% Number of surveyed sales people which value marketing activities

activities, however, there are clearly deep rooted issues that need to be addressed between sales and marketing teams in many companies.

One solution is for these organisations to improve go-to-market planning, driving better alignment between marketing and sales activities and breaking down communication barriers within their businesses. If both teams are involved at the start of the planning process and share business objectives and goals, a go-to-market

Sales and marketing

“It might not always seem like it, and our research clearly suggests there are conflicts to resolve, but ultimately sales and marketing are on the same side” strategy is much more likely to have the desired result.

Very often B2B sales and marketing teams are selling complex solutions with long sales cycles. It’s rarely a straightforward process and usually requires a multifaceted approach whereby

every element works together to deliver a clear and compelling message.

It might not always seem like it and our research clearly suggests there are major conflicts to resolve, but ultimately sales and marketing are on the same side. The UK still teeters on the brink of recession and the rest of Europe continues to struggle. There is limited economic growth predicted for 2013 and all forecasts point to the fact that companies will have to work harder than ever to ensure they survive. This leaves a very important role for sales and marketing teams to play.

Poorly aligned and disconnected sales and

marketing teams can fundamentally undermine the go-to-market efforts of any B2B organisation and must be improved within any business looking to thrive this year. Companies need to build integrated go-tomarket plans, which are jointly developed and owned by both sales and marketing.

Senior leadership therefore has an obligation to ensure they are working as an effective single team if they’re to maximise their chances of success. In the end, those organisations able to deliver a fully aligned go-to-market approach will have the best chances of driving profitable growth, regardless of a gloomy economic outlook.

Phil Brown is a director of The Channel Partnership, a B2B marketing agency. With 15 years’ experience creating go-tomarket programmes in the technology, telecoms and online sectors, Phil is the partnership’s strategy expert. www.thechannelpartnership.com

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Succession planning Succession planning is not just about maintaining a leadership pipeline anymore. It has evolved into a strategy that helps high performing companies stay ahead in growth and profitability

written by: David Chancellor

38 | Be europe

Strategy

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T

here was a time when succession planning was something only companies large enough to employ thousands of people did as part of an overall management development strategy. Since then screeds have been written on the evolution of succession planning, most of which points to the need for organisations to plan for the inevitable loss of key staff, irrespective of their seniority.

Yet succession planning as a discipline needs to evolve beyond aiming to ensure continuity in management.

It needs to be regularly reviewed as company cultures and economic climes vary. Those organisations who believe succession planning is something which is undertaken when all other management issues are in hand and the business

is booming are setting themselves up for a hard time ahead.

In their recently published book Jumping the S-Curve, authors Paul Nunes and Tim Breene discuss a different reason why some companies use succession planning.

After studying more than 6000 companies from a wide range of industries around the world, their research shows that high performers (take Adobe Systems as an example) use succession planning to continually renew their top management as a precursor to renewing the company. They define high performance companies as those that consistently outperform competitors in both growth and profitability.

Nunes and Breene claim that by using succession planning in this way, these companies tend to change their CEOs and other senior executives according to a

“succession planning needs to evolve beyond Ensuring continuity in management�

40 | Be europe

2015

2014

2013

2012

2011

Strategy

“The right people today may not necessarily be the right people for tomorrow” timetable that implicitly or explicitly recognises the need for company transitions along what they call the capabilities S-curve. By this, they mean that senior managers and boards don’t wait for a crisis or other event to happen before they act; instead, they follow a strategy that proactively leads to changes in the company’s top management in order to drive organisational transformations ahead of this curve.

Whatever objectives senior management and boards have for succession planning, the principal purpose of a succession plan is continually to evolve management, not just at the senior level but also at junior levels, creating the talent necessary for the time when it is required. The emphasis should not just be on having the right people in place to fill a vacancy created by a key person leaving the

company but on having the right person in place to undertake the role which will ensure continued success.

E v ol v i n g i nt e r n a l management is not dissimilar to evolving the non-executive directors on the board. The right people today may not necessarily be the right people for tomorrow so management evolution takes into account the time when new leadership may, or will, be required. It is more than just having a pipeline of appropriate talent.

Particularly at CEO level, successor development should be based on the creation of more than one candidate.

Although these people will be prepared and trained on the basis of the company’s unique circumstances at that time, selection of the most suitable candidate is then made based on the environment in which the company is operating when a successor is required, and the direction it is taking.

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“Selection of the most suitable candidate is based on the environment in which the company is operating when a successor is required�

Succession planning can also be mistaken for cloning, which is neither functionally appropriate nor desirable. Yet without sound expertise and an external overview of the company in question, it is easy to see how a successor assumes the role and leadership style of the predecessor, mimicking their behaviours. This leads to the role played by the CEO in leadership development and succession. Whilst their intentions to groom an appropriate successor are no doubt honourable, mistakes have been made where the CEO has been given too much control and the process ends up with their moulding the successor after themselves.

One method of achieving total transparency in the development and selection process is a competency framework. This provides senior management (and the

42 | Be europe

Strategy board where appropriate) with the opportunity to consider the evolution of corporate capabilities. It is not uncommon to find that individuals will mould their jobs to suit their motivations and experience.

A competency framework provides those responsible for the management of human resources to consider how a role should evolve as the company’s commercial and management strategies evolve.

Even though prospective internal candidates may receive appropriate training and be groomed for significantly more senior roles in the company, they may not end up being the best person for the circumstances in which the company finds itself at the time a successor is required. A competency framework can be useful in these instances when the search for the right candidate needs to be widened to external sources.

It provides greater clarity of the competencies and other attributes required and aids the recruitment consultant in the search for the most

6,000 Number of companies studied which led to the suggestion that succession planning is used as a precursor to renewing the company appropriate individual. The competency framework is also useful in ensuring that the succession planning process is legally compliant and not simply a method to discriminate based on issues such as gender or age.

Whilst there may not be a critical shortage of key talent today, that situation will be short-lived, just as it has been following every other recession. Clearly, it is crucial to identify the human capital demands that will be placed on companies as the global

economy recovers, and ensure that the expertise required for the future of the organisation has been fully addressed.

An obvious solution is to retain and develop existing talent. Another solution is to develop a good working relationship with a reputable executive search consultant.

Whilst some companies use search consultants only when a hire is essential, others develop a long-term, more generic relationship using the headhunter as their “eyes and ears” in the talent marketplace. The new war for talent won‘t begin once the economy recovers—it has already commenced. Only a few companies are aware of it and have the right strategies in place to capitalise on the return to more profitable times. No doubt much more will be written on the topic over the years, but right now the time is for action.

David Chancellor is a partner in executive search firm Tyzack Partners. He leads Tyzack’s Financial Officer practice which crosses all industry sectors and focuses on all aspects of Finance including Audit, Tax and Treasury as well as Chief Financial Officers and Divisional Finance Directors. www.tyzackpartners.com

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The evolving the role of C Chief Financial Officers are playing an increasingly important part in the executive decision-making process as business leaders today want someone who can be their ‘right hand man’

written by: David Chancellor

44 | Be europe

Finance

CFO

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T

he position of Chief Financial Officer thirty years ago bears little resemblance to the position today. Even though the markets have experienced at least six major economic downturns since the 1960s, the macroeconomic trends that are a consequence of this current global recession are having a significantly greater impact in comparison with any previous recession, particularly on the way in which businesses operate, the priorities they face and the strategies they need to develop to achieve success both on a national and global platform.

The speed at which markets change and the ever-increasing global uncertainty means Chief Financial Officers are playing an increasingly important part in the executive decision-making process.

As a consequence business leaders want CFOs who have the ability and experience to be their ‘right-hand man’, a key business partner who can support them and the Boards in making highimpact decisions aimed at improving corporate value.

On the other side of the net, CFOs are welcoming the new directions and challenges they face. Being considered simply as the senior controller of the company, conservative, number-crunching, executives no longer fits the job title.

Today, they are being asked to deliver on a much wider range of tasks. For instance, CEOs expect them to fully analyse the financial impact of the company’s objectives and strategies while they’re still in the planning stages, not after the moves have been made as has traditionally been the case.

Companies must still have strong compliance and

“As strategies centre around creating value, the CFO’s vision is expanding five to ten years out” 46 | Be europe

Finance

“CFOs will need to be adept at finding innovative ways to raise capital” internal financial controls for which CFOs remain accountable. However, the days of focusing just on historical events are gone. As their strategies centre around creating shareholder value, the CFO’s vision is expanding five to ten years out.

Strategy and finance are becoming inseparable and this has resulted in changes to the way CFO searches are now conducted. Whilst formal training and experience in hardcore accounting, financial reporting, risk-management and unquestionable integrity remain the sine qua non, a deep understanding of business processes, competitor, customer and supplier environments, and the financial impact of industry trends, are additional competencies we are now looking for. For a business to manage risk successfully, it is essential that those making key decisions within the

organisation are accurately gauging the environment around them.

The ability to work under considerable pressure has always been a key attribute, but today’s CFOs can expect the pressure to reach unprecedented levels. They will need to show that they can really support chief executives in identifying potential M&A targets, and new geographies and product lines to add where the margin gain can be seen as a real value add. Furthermore, they will need to be adept at finding innovative ways to raise capital and to make a positive impact with industry analysts, something which, in essence, may create a conflict; being creative on the one hand but conservative on the other.

This is a relatively new phenomenon so those aiming for the CFO position must be able to clearly demonstrate

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that they can handle this potential conflict.

CEOs will generally want their organisation’s share price to remain high relative to earnings, particularly if the company has debt financing which is tied to company capitalisation, or if a new round of fund raising is being considered. Since future cash flows are often a major driver of the share price, CFOs must be able to confidently articulate these expectations, with a complete understanding of how they

48 | Be europe

will occur. This will require them to have not only in-depth knowledge of every segment of their organisation and the respective business plans, but also their individual values.

Until the current global financial and economic sit uat ion improves s ub s t a nt i a l l y, C h ie f Executive Officers can expect tougher and more searching questions from the investor community. When consumer confidence in a company wanes, maintaining shareholder loyalty becomes

increasingly more difficult.

CEOs will be looking to their CFOs to become the key contact for the investment community.

Therefore, the head of finance should expect to spend a significant amount of time discussing the company’s business and financial reports with equity research analysts and fund managers, so being an effective communicator has become another competency in our CFO search criteria.

Following the recent introduction of legislation that

Finance

“CEOs will generally want their organisation’s share price to remain high relative to earnings” requires senior management to individually certify the veracity of corporate financial statements (the Sarbanes-Oxley Act being just one), many software companies are bringing to market new enhancements in compliance and auditing products that provide a seamless integration of

IT and finance. This has resulted in an IT/finance alliance that is increasingly coming under the control of the CFO. More and more, we are finding that the Chief Technology Officer (CTO) position reports directly to the CFO, and where the CTO is not a board position the CFO is the voice of the IT division in the boardroom.

Since with most businesses the biggest capital expenditure they have is technology and its infrastructure, CFOs are now required to have a good understanding of technology (both present and developing) and its impact on the organisation.

Today, with technology such as Cloud applications being seen as the potential

way forward to support the organisation’s information, communications and decision making requirements, it becomes ever more important that decisions made are, strategically, the correct ones.

Failure will be costly and the effects long-lasting.

Certainly the position of CFO in many industries has grown both in scope and responsibility. Those who are aiming for a top CFO position can expect their professional lives to be subject to greater scrutiny and even greater expectation.

However, the opportunities for those with the right skills and experience have also increased substantially and the career prospects have never been better.

David Chancellor is a partner in executive search firm Tyzack Partners. He leads Tyzack’s Financial Officer practice which crosses all industry sectors and focuses on all aspects of Finance including Audit, Tax and Treasury as well as Chief Financial Officers and Divisional Finance Directors. www.tyzackpartners.com

Be europe | 49

THE HELIOSTAT

Torresol Energy was established with the aim of becomin in the Concentrated Solar Power (CSP) sector and its mi the technological development of large CSP plants aroun

written by: john O’Hanlon research by: Louisa Adcock

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Torresol Energy - Gemasolar

T FIELD

ng a world leader ission is to promote nd the world

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The tower reflected in a heliostat

Torresol Energy - Gemasolar

S

olar power is a great idea, but it is no good at night or when the sun does not shine – right?

Wrong! In southern Spain there’s now a solar power plant that can run constantly. We are used to seeing solar panels on houses and in solar arrays.

These work by converting sunlight directly into electricity using photoelectric cells, but Torresol Energy was formed to introduce and test new technologies that make concentrated solar energy an economically competitive option and a real, viable, ecological and sustainable alternative to traditional energy sources. Conserving the environment for future generations is one of Torresol Energy’s main commitments.

Gemasolar is an innovative 19.9 MW CSP plant, the first commercial experience in the world using molten salt thermal storage in a central tower configuration. The plant is located in Fuentes de Andalucía, Seville, and started commercial operations in May 2011.

The plant consists of a 140 metre high solar power tower that derives its energy from an array of 2,650 heliostats, or mirrors circled around it, reflecting the sun’s rays onto the molten salt core.

Spain has acquired global technology leadership in the field of solar energy over the last few decades. The work of SENER, which owns 60 percent of Torresol Energy, started in the 1980s. The firm focused on finding technology for large scale cost-efficient innovations for power generation, and by 2005 it was ready to undertake the design, manufacturing, installation, testing and validation of a CSP receiver prototype in collaboration with the

be europe | 53

TORRESOL ENERGY Torresol Energy - Gemasolar Torresol Energy feature government research and Lorem ipsum dolor sit amet, text....Lorem ipsum dolor sit consectetur adipisicing elit, innovation organisation amet, consectetur adipisicing CIEMAT. At the same time it sed do eiusmod tempor elit, sed on do the eiusmod incididunt ut labore et dolore worked designtempor of the incididunt ut labore et magna aliqua. Ut enim ad 120 square metre heliostats, minim veniam, quis nostrud doloreorientation magna aliqua.

Ut their mechanism enimheliostats ad minim track veniam, exercitation ullamco laboris (the in quis two nisi ut aliquip ex ea commodo nostrud exercitation axes – each has twoullamco motors laboris nisiinut aliquipthat ex consequat. Duis aute irure with a built controller ea commodo consequat. dolor in reprehenderit in recalculates and readjusts the position every fourdolor seconds Duis aute irure in voluptate velit esse cillum using SENSOL software) and This is a caption this is a caption Valle 1 anddolore Valle 2, Torresol’s earlier projects reprehenderit in voluptate eu fugiat nulla the storage system. velitmolten esse salt cillum dolore eu pariatur. Excepteur sint fugiat pariatur. occaecat occaecat Twonulla years later Excepteur with the sint technology with Masdar was formed, and construction cupidatat non proident, sunt in cupidatat non proident, sunt in to culpa qui culpa thoroughly tested SENER decided proceed startedqui theofficia following year. mollit The plant deserunt animhas id officiaGemasolar. deserunt mollit id est laborum. with The anim Torresol Energy JV est beenlaborum. operational since Maydolor 2011.sitItsamet, first Lorem ipsum

TECNICAS DEL CABLE S.A. Técnicas del Cable are experts in the production of specialized cable for specific markets including the chemical industry, refineries, the Aeolian parks, power stations and railroad networks. Today we are capable of making practically every form of cable and can do so based around the specifications given to us by our clients or by following national and international norms. Thanks to the incorporation of new machine and the development of new products, Técnicas del Cable can respond to almost any request from its clients. Employing more than 40 people at its 25,000m2 facility, Técnicas del Cable is capable of providing services to the whole of the European Union.

While it has a particularly strong presence in Portugal, France, Italy and Belgium, almost 70 percent of its total output is installed and sold

in Spain through a team of installers, engineers and mounters who are experts in the electrical sector. The company’s philosophy is based on offering its clients the perfect conjugation of quality, downtime and price. In 1989, the company obtained ISO quality certification and ever since it has managed to fulfill its three core objectives, while remaining on a path of continuous improvement throughout all areas of the business. Looking to the future the company aims to maintain its strategy of investment in equipment and technology. In the short-term it will also continue to renovate its operations, incorporating new production lines as it looks to offer a greater range of products.

E. info@tecnicable.com www.tecnicable.com

WEEKLY| |552 beBEeurope

19.9 mw Capacity of the power plant

Tower and heliostats

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year of operation exceeded all expectations.

It supplied more than 100 GWh of power provided to the grid.

So what are the advantages of this unique plant, the first CSP unit in the world to include a molten salt thermal storage system? “Apart from opening the way to a new generation of solar power technology,” says Álvaro Lorente, General Manager of Torresol Energy. “The most obvious advantage is that it supplies continuous power in a flexible way. That is to say, the turbine can operate without stopping overnight or if there is a cloud. That prolongs the life of the turbine, and in addition we can manage its output according to demand according to peaks and troughs.”

There are a host of other advantages, he enthuses. “Its very simplicity makes it a low risk operation. The fluid is concentrated in a small area, reducing thermal loss and keeping maintenance costs low, and the same fluid is used for both heat transfer and storage, resulting in less thermal exchange.

Additionally the molten salts reach extremely high temperatures, which maximises thermodynamic efficiency.” Gemasolar’s 19.9 MW turbine is a strategically capable installation, he says, able to supply electricity to 27,500 households. “Eventually the plant

Torresol Energy - Gemasolar

The plant has the ability to provide a higher annual capacity factor than most baseload plants such as nuclear power plants

will be able to supply 24 hours of uninterrupted production per day on most summer days, providing a higher annual capacity factor than most baseload plants such as nuclear power plants. In this way, the reliability of solar energy becomes comparable to that of conventional fossil-fuel power plants, a decisive factor as the demand for renewable energy increases.”

However another vital element for the Torresol partners is the amount of local input they have been able to achieve, says

Lorente. “Since the company was created in 2008 we’ve had a solid commitment to creating a network of local and national suppliers in order to generate wealth around the facilities. In all the installations we have done we have boosted local employment, with about 80 percent of supplies and 70 percent of the talent coming from local sources.”

As befits an alternative energy enterprise, both Gemasolar and Torresol O&M were recently awarded ISO 14001 certification for environmental management and OHSAS

“Eventually the plant will be able to supply 24 hours of uninterrupted production per day on most summer days” be europe | 57

IMECA Solutions and Services offers itself as the best

Phone: +34 949 208 917 | Fax : + 34 949 208 919 e-mail: imeca@imeca.net ISO 9001 & 14001

solution, in quality and commitment, to perform all services available for the energy industry.

We are specialists in the renewable energy sector for the design and manufacture of fasteners and anchor bolts, both conventional and for metal structures.

We provide our expertise to the energy industry (wind, solar thermal, photovoltaic, combined cycle ...), as well as to the railway, marine and petrochemical industries.

IMECA Solutions and Services offers: • Anchor bolts.

• Plates, nuts and washers.

• Screws: conventional, special and for metal frames.

• Special parts manufactured off-plan.

Torresol Energy - Gemasolar 18001 certification for EMbaffle B.V. workplace health and safety.

EMbaffle B.V. is a dynamic technology company with Masdar is keen to be able broad operational knowledge across the Solar Power, to bring these principles as Oil & Gas Up- and Downstream and Petrochemical well as the technologies to the industries. We offer advanced heat transfer solutions Middle East. North Africa has based on our proprietary technology supported by sound plenty of sun, so has Chile for operational data. Our solutions provide significant added value to projects including capital and operating example. However with the cost enhancement as well as reductions in energy former being a desert and the consumption and CO2 emissions. latter subject to earthquakes, In the Concentrated Solar Power sector our technology has the technology will need proven itself as for the last seven CSP projects in Spain to be refined to suit local equipped with Thermal Storage possibilities all clients have conditions. Torresol Energy is chosen for EMbaffle Technology. studying weather conditions A Major Advance in Heat Transfer Technology. www.embaffle.com and working with a number of governments and entities around the world to increase its understanding of how local content, local talent and local supply chains can be optimised to bring the benefits of solar power where it is most needed.

Solar thermal technology is a relatively new industry, hungry for investment at this early stage of development, says Álvaro Lorente, but with the ability to cut unit costs to a fraction of current levels as it supplants fossil fuels. Cost reduction can be achieved using different ‘levers’, he explains.

“We can utilise R&D to gain economies of scale, for example constructing larger plants Heliostat field at dusk

“As the industry matures a supplier base will grow up and standardisation of components will cut costs further” be europe | 59

A heliostat rotates to capture the sun’s rays

Torresol Energy - Gemasolar

80% Local supplier content at Gemasolar and developing the specific learning curve from each solar thermal technology. As the industry matures a supplier base will grow up and standardisation of components will cut costs further. At Torresol Energy we have a solar development programme: a number of central complexes will be built simultaneously with the twin objectives of creating a supplier industry and improving plant efficiency.�

Really, research is the key. Torresol Energy’s current projects include; cloud location in collaboration with the University of Almeria; prediction of solar radiation in partnership with the Spanish Centre for Renewable Energies CENER; product development to improve reflectivity levels on the heliostat field, with Tekniker; and software optimisation to improve plant efficiency. A parabolic trough plant operation simulator will help training of operators on sites that use that technology, while mathematical models are being developed to accurately predict wind conditions. All these share the twin objectives of production growth and cost reduction in operation and maintenance.

For more information about Torresol Energy - Gemasolar visit: www.torresolenergy.com

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Dedicated to decommissioning Boutique engineering consultancy Optimus has developed a unique approach to decommissioning that is garnering growing recognition among operators

written by: Will Daynes research by: Adam Kalynuk

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Optimus (Aberdeen) Limited

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F

ew companies can provide a dedicated team-led approach to decommissioning like Optimus.

The Aberdeen-based oil and gas engineering consultancy has gone from strength to strength since it launched Optimus Decom in 2010, a subsidiary established to meet growing demand for its engineering services for the decommissioning of on and offshore oil and gas facilities.

The company has built up a select team of specialists with all of the relevant skills necessary to provide support throughout the decommissioning process, from assessing liabilities and analysing the engineering options to final decommissioning project management, and is working to develop a full turnkey solution for the decommissioning of facilities.

Stuart Heggie, decommissioning team lead, said: “Rather than acting as a small decommissioning group that pulls in specific resources from outside sources, we are building a dedicated team of people with skills in all the relevant disciplines who share a collected understanding of the industry’s priorities. We are approaching decommissioning work differently, by having focused engineers in-house rather than sourced from third parties, and the huge benefits of this are increasingly being recognised by a growing band of operators.”

The team has experience in supporting a number of operators and other energy service companies, including Talisman, ConocoPhillips, BP and Wood Group.

Optimus’ expertise in the decommissioning field led industry body Decom North Sea to select it as the only engineering consultancy

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Optimus currently perform a wide range of services associated with the on and offshore oil and gas industry

Optimus (Aberdeen) Limited

ÂŁ30 Billion Modest estimate of how much will be spent on decommissioning in the next 30 years

Optimus can offer an integrated approach to decommissioning of offshore platforms, pipelines and subsea assets

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in its workgroup set up to help streamline the approvals process by reducing both costs and timescales for decommissioning work. The new standard template devised by the group has simplified the preparation and approvals process, which is highly welcomed by the industry as decommissioning work starts to take off in the UK North Sea. More than ÂŁ30 billion will be spent in the next 20 to 30 years in the field of decommissioning, according to modest estimates. Around 460 installations, over 10,000 kilometres of pipeline and 10,000 wells are set to be decommissioned in the UK North Sea over the next three decades.

Some ÂŁ1 billion is expected to be spent annually by 2015 and, with just seven percent of the anticipated work having been completed to date, the opportunities for the supply chain are immense.

Since director Ian Bell founded Optimus in 1999, the business has achieved strong organic growth year-on-year and Bell has his sights firmly set on becoming the leading boutique engineering consultancy serving the North Sea. Today, the group directly employs 90 staff at its Aberdeen headquarters and satellite offices in Inverness in the Scottish Highlands

Optimus (Aberdeen) Limited

The team is equipped with a wide range of technical and managerial experience

and Bangkok in Thailand. It also operates a joint venture in Varna, Bulgaria.

Bell believes the firm’s growth is testament to its common-sense approach to engineering.

“An ever-growing band of energy operators are realising the benefits of working with smaller, leaner and fitter contractors, who can react quickly to deliver projects efficiently,” he said. “We are confident that, because we’re a relatively small company, we can keep control of what our guys are doing and ensure projects don’t run over on cost or timescale.

We might charge a bit more than some of the competition for our expertise, but our ability to work smarter means we save our clients money in the long run.”

Optimus provides process engineering, facilities engineering, safety and project management services and has completed $130 million of capital projects in Europe and Africa during the past five years. Its expertise in decommissioning focuses on three key areas: annual liabilities activities, pre-Cessation of Production

“The company has built up a select team of specialists with all of the relevant skills necessary to provide support throughout the decommissioning process” be europe | 67

“We are incredibly proactive when it comes to working with clients” (CoP) planning and project management.

Heggie explained: “A significant indication of our growing credibility within the decommissioning sector is our recent success in securing a contract to manage an operator’s extensive liabilities portfolio.

This all-encompassing service includes not only liability cost maintenance, but provision of comprehensive due diligence services on a regular basis for any acquisitions or

68 | be europe

divestments, and conducting gap analysis reports to determine the issues and implications of operations in different global regions.”

As many operators prepare for their first decommissioning, the benefits of addressing decommissioning needs in a strategic manner are evident. Heggie said: “It allows costs to be fixed, prevents a resource shortage during peak decommissioning periods and gives the much-needed clarity required to

Optimus (Aberdeen) Limited

Optimus engineers have experience of working on projects from a client and contractor perspective

allow decommissioning to form part of a company’s corporate strategy.”

Much of Optimus’ success over the years can be attributed to its ability to integrate itself seamlessly into an operator’s team. “We are incredibly proactive when it comes to working with clients,” Heggie said. “We become an extended part of the team. We seek to assist in defining the work jointly, before then identifying the most efficient and cost-effective solutions that we know from our experience will produce the best results. We continue to add value with our flexible no-nonsense approach, independent advice and knowledge of alternative technological solutions.”

As for the long-term future, the team at

Optimus is looking forward to the challenges.

Bell concluded: “We are creating a flexible company that is best placed to deliver a fit-forpurpose, cost-effective solution to our clients and, eventually, we hope the Optimus way will be seen as a far better alternative to the status quo for decommissioning work. We have put in place all the necessary building blocks to ensure we play a fundamental role in leading the way in decommissioning for many years to come.”

For more information about Optimus (Aberdeen) Limited visit: www.optimusaberdeen.com

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Fibre for all The Finnish telecommunications organisation Finnet is piloting a new concept in home computing that could revolutionise the way we operate

written by: Gay Sutton research by: David Brogan

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Finnet Association

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Inside the data centre

Finnet Association

F

inland is in many ways unique. in partnership with some of the biggest It is, for example, the European names in the world of ICT—IBM, HP, Cisco, Union’s most sparsely populated Juniper, Intel and Microsoft—it may well country with just 5.4 million herald the shape of home computing and inhabitants in an area larger than communications for years to come. The vision the UK, which by contrast is home to over is that householders will be able to replace 62 million people. It also has a challenging expensive PCs and laptops with what is climate and terrain. Frozen for part of the known as a thin client: a box that connects year, the countryside is largely low lying and via fast fibre cable to a remote data centre rocky, and characterised by dense forests and where all the computing operations and data a multitude of lakes formed in the last ice age. storage take place.

It’s not an easy terrain in which to create It is essentially a cloud-based computing a cable-based telecommunications system. model similar to the one that is expanding rapidly among small and In spite of the significant medium sized companies. challenges involved, the Finnish telecoms organisation Supermatrix, however, will Finnet is about to launch be extending the model to householders. As individuals a new and market leading we are already using cloudservice for householders in Monthly price of Finland called Supermatrix. based computing without Supermatrix service “This is the biggest step we being aware of it. We are have taken since we began storing emails, music, photos replacing our old copper network with fibre and books online through the likes of Google, in 2000,” said Jarmo Matilainen, managing Facebook, Flickr, Spotify, Amazon and so on.

This simply takes the concept to its ultimate director of Finnet Association.

Finnet is a group of 27 regional companies and individually personalised conclusion. providing telecoms services for over 40 “We are piloting Supermatrix in three of percent of the country and employing some our member companies, with a total of 300 2500 staff. While the regional companies customers,” Matilainen said. “And they are directly sell, supply and manage the currently helping us to define and improve services, Finnet Association provides the the service.” Finnet then plans to launch the member companies with a wide range service through all 27 regional companies in of support services, including strategy spring 2013, and hopes to have around 10,000 and project development, marketing, users by the end of the year. The benefits of government lobbying and negotiating the system are compelling. Finnet will supply volume procurement for the entire group. a thin client box, mice and keyboards to Supermatrix is a visionary project that has participating homes enabling them to run up been four years in preparation. Developed to four PC-equivalent outlets per household.

€15

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“We are piloting Supermatrix in three of our member companies, with a total of 300 customers�

Digging for the fibre cable

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Finnet Association “Our thinking is that this will not completely replace PCs, laptops and Macs. They will always have their place for certain applications,” Matilainen continued. “But Supermatrix will be ideal for the majority of customers who need simple office applications, want access to the web for YouTube and downloads, or want to archive documents and images.”

Initially, the service will come with applications such as photo manipulation and drawing, and a basic office package from Libreoffice that includes word processing, Difficult weather conditions spreadsheet and presentation The Supermatrix service has only become tools. “The reason we believe this will be successful is that people are moving away possible because the Finnet group of companies from old Windows-based PCs. Some are has been making a continuous long-term migrating to tablets, smart phones and investment in infrastructure, under the laptops, but many don’t want the expense of strategic management of Finnet Association. purchasing such equipment. We are pricing In 2000, the 27 regional companies began this service at €15 per month, replacing the existing and this includes everything copper telecoms cables with except the screen,” Matilainen the latest fibre optic cable. explained. Home owners can Initially, this began in areas then connect the Supermatrix of higher population density, box to existing screens or to but the aim is to connect their TV screens by HDMI. every household in the Finnet marketplace to the fibre “What this gives you is the equivalent of 4 PCs in your network. Since 2007 over Cost of connecting fibre home with all the software €250 million has been spent optic cable to every household on installing fibre, and by the and processing power you need for just €15 a month.” time the project is completed

€400 million

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in 2020 the final bill is expected to have risen to €400 million. The greatest challenge now is extending coverage to individual homes located in remote outlying areas. “The terrain is our greatest challenge,” Matilainen said.

“Finland has a lot of rocks and a lot of lakes.

The cable has to be laid over very large distances, and this requires a high level of investment.”

Alongside this long-term investment in

fibre network coverage, Finnet has also been constructing a series of data centres strategically located in different areas of Finland. “We currently have 12 data centres and another under construction at Kajaani, a remote location in central Finland.” This newest data centre is being constructed in partnership with IBM and an old paper mill has been chosen for its location. With plenty of space, a good power supply and water for

“People are migrating to tablets, smart phones and laptops, but many don’t want the expense of purchasing such equipment”

Supematrix service

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Finnet Association

Supermatrix devices

cooling, it has excellent connections through the fibre network, and should go into operation next year. “Almost all our data centres will ultimately be able to offer the Supermatrix service,” he continued. “However when we launch the service next year we will begin by operating it from just one.”

So far, around €3 million has been invested in the Supermatrix project. Much of the purchasing and strategic management has been done through Finnet Association, while each of the 27 regional companies has contributed towards the costs, spreading the financial burden throughout the group and making it more manageable. “We also expect to invest up to €30 million in data

centres which will be used for private and public sector customer IT services, and for the telecommunications and cable TV businesses.

Looking to the future, if Supermatrix proves to be the success Finnet hopes, Matilainen believes there may be opportunities to take the concept beyond Finland. Sweden and Norway, for example, have good fibre networks. There is no doubt that many telecoms companies will be watching the outcome of this project very closely.

For more information about Finnet Association visit: www.finnet.fi

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Opening the doors of opportunity Since first transforming the face of security in the hospitality sector over 30 years ago, VingCard Elsafe continues to innovate and excite, as its recent unveiling of the first invisible door lock demonstrates

written by: Will Daynes research by: James Boyle

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VingCard Elsafe

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T

o say that a company is responsible for revolutionising a specific industry sector is certainly a bold claim to make. Yet it is an utterly true statement to make when it comes to VingCard Elsafe. Since transforming the hospitality industry in 1979 with the introduction of the world’s first recordable lock, the company has continued to lead the market by continuously introducing new innovations.

The world leader in developing locking systems, electronic in-room safes and energy management solutions for the hospitality industry, VingCard Elsafe is dedicated towards providing electronic security solutions to the hospitality industry and facilities where people sleep away from home.

Today, VingCard Elsafe has products, including locks, safes, energy management systems and minibars, installed in more than 42,000 properties worldwide, securing in excess of seven million hotel rooms and providing advanced technology security solutions to hospital providers and their guests in over 166 countries across the globe.

With VingCard recognising the hotel industry’s need for more effective and efficient lock systems, the first mechanical key card operated lock was invented by one Tor Sørnes of Moss, Norway, in 1976, which was subsequently sold to the Westin Peachtree Plaza, Atlanta, USA in 1979. In the years to follow, VingCard continued to develop key card operated locks, introducing the game changing VingCard 3000 electronic lock in 1992.

Around the same time that Sørnes was

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VISIONLINE RFID lock

VingCard Elsafe

making his breakthrough, Elsafe was making waves of its own with the invention of the first electronic in-room safe in 1976, a development that would make metal key safe obsolete while reducing maintenance costs, streamlining front desk operations and providing convenience and security for users.

In 1980, the seven first safe installations took place in the Canary Islands, followed by expansion to all continents.

It was in 1997, three years after both entities became a part of ASSA ABLOY, the world’s largest independent lock company, that VingCard and Elsafe International joined sales and marketing forces and became the largest solution provider of guestroom security. In the following years, VingCard and Elsafe continued to develop electronic locking solutions and in-room safes side by side, while expanding their sales network around the world, before merging completely in 2006.

It was in this year that VingCard again set about changing the landscape of the hospitality market with the introduction of its VISIONLINE product. Unlike traditional off-line standalone locks, VISIONLINE by VingCard uses RF-online communication to eliminate the need for hotel staff to travel to and from guestrooms to perform tasks such as reprogramming individual locks and

identifying or changing low batteries. It also eliminates the need for guests to return to the front desk in order to change a room or extend a stay, increasing guest convenience and satisfaction.

Less than seven years on, the VISIONLINE system has become the world leader in wireless online electronic locks for hotels, offering a cost-effective solution for hotel

“The VISIONLINE system has become the world leader in wireless online electronic locks for hotels” 82 | be europe

VingCard Elsafe

Most popular safe model - SENTINEL II

properties to facilitate By making the lock reliable, two-way wireless disappear from the hotel online communication from door, the use of Essence by standalone electronic door VingCard not only resolves locks to their host security any design challenges that The year the first and PMS systems. hoteliers may encounter, recordable lock was In June 2012, the next it also minimises a host introduced chapter in VingCard Elsafe’s of ot her operat iona l history was written when the issues, including company unveiled its Essence integration, installation

by VingCard solution, the world’s first invisible and maintenance. By hiding the locking door lock. By eliminating all lock hardware components from the user, hotel designers on the door and encasing all of its electronic are now able to align guestroom doors with components inside the door itself, Essence the current trend toward a more residential

by VingCard integrates the company’s most look, while still proving the ultimate in advanced contactless locking solutions into security technology. Essence by VingCard the interior electronics. is also fully compatible with the wireless

1979

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Signature RFID using Near Field Communication (NFC) on a mobile phone

VingCard Elsafe VISIONLINE system, making it arguably the most advanced, streamlined locking system available on the market.

In the same month that the company broke the news of its latest hotel locking innovation, VingCard Elsafe successfully presented the solution to the industry at the HITEC 2012 technology show. Immediate feedback that the company received for Essence by VingCard in the aftermath of its official unveiling was nothing short of positive and extremely encouraging, serving to confirm its projections of where hotel locking technology is heading in the decades to come. Indeed, markets across the world are continuing to embrace the trend towards minimalism in design as well as embracing the types of Radio Frequency Identification (RFID) and Near Field Communication (NFC) technology that have been incorporated into this new locking platform.

It is a well-known fact within the hospitality sector that in today’s world, people from all walks of life seek security, safety and peace of mind when sleeping away from home. By strengthening its long-term relationships with its customers by delivering superior local service standards and innovative, technologically advanced solutions, VingCard Elsafe continues to follow its own mission statement, and that is to remain the world’s leading choice for the hospitality industry when security counts.

For more information about VingCard Elsafe visit: www.vingcardelsafe.com

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Çolakoglu

Turning the back challenge With conditions in the steel industry continuing to prove challenging, it is Çolakoglu’s ability to adapt to a constantly changing marketplace that has contributed most to its long-term success

written by: Will Daynes research by: Abi Abagun

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Çolakoglu’s meltshop is equipped with one of the world’s largest electric arc furnaces

Çolako lu

B

oasting a proven track record for producing quality products that meet the needs of the market, Turkey is recognised throughout the world as a major player in steel production and exportation. Over the last several decades the country has experienced consistent growth within its steel sector, expanding exponentially to the point where, in 2012, it was ranked as Europe’s second largest crude steel producer and eight in the world ranking of steel-producing countries. Çolako lu’s involvement within the industry began with the establishment of a steel trade business by its founder, Mehmet Rü tü Çolako lu, in Karaköy, Istanbul, in 1945.

“The first Çolako lu rolling mill,” explains Dr Koray Gunay, “was commissioned in Sütlüce in 1960, with the first meltshop going into production in Dilovası nine years later. It wasn’t until 1985 that our operations expanded to include wire rod production, with reinforcing bars being added to our production line in 1990.”

While business during this time remained constant, one thing that also remained was the gap between steel production and consumption levels that continues to exist in Turkey to this day. This resulted in Turkish companies having to export up to 60 percent of their production on long products. On the contrary Turkey imported 70 percent of their flat products requirement.

“Realising that the traditional way of doing business was no longer sustainable,” Gunay continues, “it was in 2005 that we embarked on a new business strategy that would see us bring flat products in to the market.”

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Çolako lu

The finished steel rolls

The company further proved its what you see within our facilities today,” he determination by investing in a new meltshop highlights, “95 percent did not exist as recently and rolling mill for flat products in 2007. At as five years ago. In 2010, as part of our the time of its commissioning, this meltshop commitment to improve our overall productivity, possessed the world’s largest electric arc we undertook a programme designed to furnace. “One thing,” Gunay says, “that has upgrade our processes and infrastructure. This always been true about Çolako lu is that was followed in 2012 with the work we did we have always striven to make continuous to increase the efficiency of our arc furnace. improvements to ourselves when it comes to These projects highlight at first hand how we products and technology. This has helped believe in trying to better ourselves each and us remain one of the real every single day.” pioneering companies in the This improvement has steel industry in Turkey.” allowed Çolako lu to retain This mentality is one of the first-class product the three core characteristics reliability that it feels instils that Gunay believes defines confidence in its customers.

The year that Çolakoglu “In addition to the degree of Çolako lu, together with established its steel trade reliability that our products its product reliability and business possess,” Gunay enthuses, “we flexibility as a business. “Of

1945

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“we have always striven to make continuous improvements when it comes to products and technology” also benefit hugely from being a very flexible operation.” From its facilities, Çolako lu is able to produce almost three million tonnes of liquid steel. This liquid product is then fed into either a billet caster or a slab caster, the former having a capacity of 2.5 million tonnes and the latter 3.5 million tonnes. Having the flexibility to shift between multiple products gives the company the ability to adopt changing market conditions accordingly.

Over the last couple of years these market conditions have been heavily affected by

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the continued over supply of steel into the marketplace, a trend that has driven the price of steel down by as much as 15 percent. “What you have to remember,” Gunay says, “is that no matter what we do, we can’t change how the market is going to react to the fact that today, even the smallest of customers has the ability to see how mills’ prices are fluctuating around the world. This is something that we cannot do anything about; rather we have to able to adapt in order to deal with it.”

The way the company has done this is

Çolako lu

Panoramic view of the entire line

through a combination of knowing the right time to buy and sell materials, by increasing the productivity of its operations, reducing lead times and by focusing more of its efforts on delivering high end products to more specialist customers. “By only focusing on commercial products,” Gunay states, “you leave yourself open to much higher levels of competition. What we are doing is overcoming this competition by producing products suitable to produce LPG tanks, automotive rims, agricultural tools, line pipes and other niche items of machinery and equipment.

This is also providing us with the opportunity to tap into new market segments, like the automotive industry for example, and act as a key supplier of raw materials to producers in these industries.”

In the years ahead, Gunay envisions competition within the company’s domestic markets only becoming more intense as new players enter the field. As he concludes, being aware of this now has allowed Çolako lu to put in place a clear strategy for future growth. “In order to compete at our best we have to continue to make improvements to our process; we have to continue to serve our customers properly and retain our ability to move with changes in the market, while preparing ourselves to become an even more diversified supplier.”

For more information about Çolakoglu visit: www.colakoglu.com.tr

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METROPOLITAN

METRO The Madrid underground is the fastest and most efficient and affordable way of moving around Madrid. The city boasts one of the largest networks in Europe, serving most of the capital city and a good part of the suburbs

written by: john o’hanlon research by: Louisa Adcock

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Metro de Madrid

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Part of Metro de Madrid’s investment strategy is aimed at improving its current services

Metro de Madrid

T

he first line on Madrid’s underground railway network, the Metro de Madrid, was inaugurated on the 17th October 1919 by King Alfonso XIII. It had eight stations along 3.3 kilometres of track. Ever since that date the Metro has experienced progressive growth, which has made access possible to the majority of the capital’s districts and to some of the most important municipalities in the metropolitan area. Today it is the sixth longest metro system in the world, with 300 stations and 292 kilometres of track, 90 percent of it underground. In 2011 Metro de Madrid carried 635 million passengers at an average speed of nearly 31 kilometres per hour, with a high degree of automation and with state of the art rail signalling, safety and access systems.

Their security is very important to Madrid’s travelling public. “In a survey of the expectations of our customers, safety was the second most important factor, only surpassed by speed,” says CEO Ignacio González Velayos.

The safety systems installed throughout Metro de Madrid are all best of breed and are monitored permanently from the Command Post, the nerve centre of the system. Safety is inseparable from environmental performance, he believes. “Society is not content merely with meeting the need for mobility, but it demands that this should be achieved in a way that is sustainable in economic, social and environmental terms.”

One of the largest engineering projects was completed a decade ago in 2003 when the Metro expanded its network into the satellite towns of Móstoles, Fuenlabrada, Alcorcón, Leganés and Getafe, bringing the service to a

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Ticketless technology can drive public transport uptake, survey reveals Public transport providers know they need to attract and retain riders to help offset operating costs, increase revenue and grow profitability. But what will get drivers out of their cars and onto public transport?

Respondents to a global Accenture survey on public transport indicate that ticketless journeys, aided by new technology, could be a key motivator. What’s more, the majority said they are willing to pay for the convenience.

Survey respondents globally (76 percent average) believe a ticketless system—using contactless payments or proof of purchase on mobile devices—would encourage some drivers to start using public transport. The majority of respondents (69 percent) also believe that having a one-ticket-for-all system would help increase riders. The figures were even higher in Europe, with passengers in London (70 percent), Paris (78 percent) and Barcelona (78 percent) emphasizing the importance of a single ticket for multiple modes of transport. Of the other cities around the world, only New York ranked above average.

This is hardly surprising. Consumers, aided by mobile technology, expect easy, efficient customer transactions in all spheres of their lives. They want their door-to-door public transport journey to run as smoothly as if they had driven there themselves—and expect technology to pave the way.

Transport agencies ignore these trends at their peril. Although it may be difficult to integrate new technology into existing operations, customers expect it. And they want it fast: 77 percent of global respondents expect to purchase tickets on their mobiles/smartphones in the next two years, particularly those in Los Angeles, New York, Sao Paulo and London.

Survey respondents clearly see a cost-benefit trade-off for ticketless travel. Only 10 percent (on average) of respondents said they would be unwilling to countenance any price increase to pay for new technology. Travelers’ willingness to pay for the technology can help defray implementation costs—plus generate

Globally, respondents believe a ticketless system will encourage uptake

76%

revenue by attracting and retaining riders over the long term.

These are just a few of the survey findings suggesting that consumers expect transport agencies to employ technology to deliver a more convenient travel experience. Through technology, public transport providers have an opportunity to address ridership and revenue challenges that continue to impact performance. But doing so means developing technology-driven strategies that offer consumers the kind of superior travel experience they will increasingly come to expect.

For more information on this research please visit www.accenture.com/ publictransportation or contact: Philippe Guittat philippe.guittat@accenture.com Emmanuel Schneider emmanuel.schneider@accenture.com Michael J. Wilson michael.j.wilson@accenture.com

90% willing to pay to introduce new technology for ticketless travel

Respondents also believe a one-ticket-for-all system will encourage uptake 78%

78%

76%

77% will purchase tickets via mobile devices in the next two years

70%

Paris

Barcelona

New York

London

The consumer survey was conducted by Coleman Parkes Research on behalf of Accenture. It was carried out online in September 2012 in multiple languages in Korea, Brazil, the United States, Germany, Spain and the United Kingdom. All 4,500 respondents were 18 years or older. Modes of transport surveyed include subways, taxis, boats, cars, trains, trams and buses.

To learn more, visit: www.accenture.com/publictransportation

10+90 23+77 90%

77%

METRO Metro DE de MADRID Madrid

ACCENTURE & METRO DE MADRID “COMMIT” TO HIGH PERFORMANCE Improving innovation, efficiency and customer service are the main challenges companies now face in many industrial sectors.

Metro de Madrid is meeting these challenges through the ambitious expansion of its rail infrastructure and technology, which will boost its rail network size by 61 percent and the number of installations by 38 percent.

To help achieve its expansion goals, Metro de Madrid asked Accenture to transform its infrastructure maintenance operations.

The Center of Operations for Maintenance and Monitoring of Installations and Telecommunications (COMMIT) formed the basis of a new infrastructure maintenance operating model, revamping Metro de Madrid’s technologies, processes and organizational structure.

COMMIT, with its advanced management processes, remote monitoring and telemaintenance capabilities, is able to efficiently manage more than 200,000 installation incidents per year.

Thanks to this pioneering model, Metro de Madrid has saved €7 million a year in maintenance costs and improved the service quality for its clients.

Accenture—committed to high performance delivered. www.accenture.com/publictransportation

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TECHNOLOGIES FOR THE RAILWAY SECTOR

A Technology Group providing end-to-end solutions for the railway sector - Solutions: • Telecom: SDH, PDH and ATM/IP networks • Fiber optics by 3dnet.es, a company of the Group • Railway Operations Telephony • IP Intercom solution • Ground-train radio • TETRA • Passenger Information Systems • Public Address • CCTV over IP • Access Control (RFID) solutions With 40 years of experience and projects developed in more than 15 countries - Projects: • Metro de Madrid: Telecom, IT & Security: Line 2, Line 4, Line 7, Line 9; Line 10; Metrosur; 30 % of the total fiber optics network; RFID access control on stations

and trains; IP Intercom in Metrosur, Radiant network for CBTC (Line 1, Line 6, Metronorte, Metroeste, Line 11), Main Control Center Alto Arenal and Redundant at P. Sur • Metros: IT, Telecom & Security: Metro Bilbao, Metro Barcelona, Metro Valencia, SFM, FGC, ETS, FEVE • Tramways: IT, Telecom & Security Barcelona Tramway, Tranvía Parla (Madrid), Tranvía Vélez-Málaga; Antalya Tramway (Turkey); Tranvía Alicante; Tranvía Vitoria, Tranvía Bilbao, TROLE (Ecuador), Metro Ligero de Madrid • High Speed and Railways: Telecom, GSM-R, IT: High Speed Zaragoza-Huesca, IT & Telephony: Qalib-Shabin ENR (Egypt), 1.450 Km f.o. network ADIF; Safety: Point Heaters High Speed Ankara-Istanbul, Railway inspection systems and Point Heaters Ankara-Konya; Point Heaters and Railway inspection systems Marmaray (undergoing); Level Crossings ADIF; Point Heaters and Hot Box ADIF.

www.gruporevenga.com

Metro de Madrid million additional people and grupo revenga providing a direct connection Grupo Revenga - GR Technologies - provides end-to-end to Madrid Airport. In all this solutions to Metro de Madrid since it was created in 1972. added 50 kilometres of tunnel The company has participated in all of the expansion to the system. Nevertheless plans deployed by Metro de Madrid and the Government of the company has continued to Madrid, having equipped with a wide range of solutions its invest, spending €40 million 293 Km, 276 stations and 2 control centers.

The strength of the capabilities and the success of the in 2012 and budgeting the technologies of this R&D focused company are apparent same amount for 2013. in view of the number of its solutions currently deployed This money is not being in cutting-edge telecom, IT and security projects in used for further extension Metro de Madrid. of the network at present In the own words of Grupo Revenga, “Metro de Madrid is a according to Velayos: “We key customer with whom we are proud to partner with in the are not immune from the deployment of one of the most important metro networks in the world, with one of the best quality/cost ratios”. austerity that the Community www.gruporevenga.com of Madrid has to exercise in its budget. But let’s not forget that thanks to the very important efforts by our authorities over the last decade we have been able to almost double our network and give the people of Madrid access to a suburban train network, known throughout the world. At the moment our investment strategy is not aimed at further expansion of the network but at the services and features requested by our customers.

Today’s travellers are not content to simply go from one point to another: they want to do it quickly, safely, and with access to high quality complementary services.”

€40 million Investment in 2013 Ignacio González Velyaos, CEO

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Show the world what your company has to offer with our tailored packages

Seen www.bus-ex.com

Metro de Madrid Mi nds a re bei ng concentrated in the Ineco, company leader in transport engineering and municipality by the Madrid consultancy, has maintained a close relationship for years 2020 project, Spain’s bid for with Metro de Madrid, to whom it has provided its services the next but one Olympic in several occasions. Both companies collaborate in the Games. We won’t know till development of international projects aiming at reinforcing September 2013 whether that its leadership abroad. Its experience in the application of new technologies and management practices for the construction will come off but meanwhile and the commissioning of new railway lines in several Metro de Madrid continues countries demonstrate its capacity to face challenges and to its programme aimed at develop international land transport projects. adapting its infrastructure www.ineco.com to meet the needs of its customers. In recent years this has seen a programme to improve travel times and the introduction of a new technological platform to support contactless card payment and extend that system to the entire network.

Metro de Madrid’s recently established Interactive Customer Support Centre (CIAC or Centro Interactivo de Atención al Cliente) has already dealt with 1,755,000 enquiries.

“The centre,” says Velayos, “deals directly and personally, all year round between the hours of 8am and 10:00pm, with all information requests received, not only in relation to the service provided by the company but also to any other information about events and socio-cultural activities in Greater Madrid, as well as lost property. There are also face to

ineco

635 million Metro de Madrid continues to streamline its infrastructure

Journeys on Madrid Metro in 2011

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face Customer Service Centres at the airport and major stations, which deal with enquiries in a more personal manner.”

Metro de Madrid is a major job creator, at a time when Spain needs all the jobs it can get. Apart from the 7,500 people on its direct payroll, Ignacio González Velayos points out, Metro de Madrid has agreements and contracts with other companies, public and private, which in turn have their own employees, which multiplies the creation of job roles. “Our public sector contracting law obliges us to put out our projects for tender, and many of these tenders are won by local companies.”

Each year Metro de Madrid rolls out its programme of continuous improvement in technology, innovation and research. “We are always looking for ways to improve our business model as a public service transport provider.

Metro de Madrid wants nothing less than to be looked to as a global benchmark in every aspect of urban passenger rail.” Its commitment to quality, he adds, is demonstrated by the certificates received by Metro de Madrid over the last year for, among others, the Management of Quality Service within Public Transport, Environmental Management, and Health and Safety Management.

The company holds an ISO-14001 certificate in Environmental Management

and invests in renewable energy sources. In 2009 it commissioned its first geothermal air conditioning system at Pacifico station. This system offers many advantages compared to traditional systems, such as energy savings and greater independence from the electrical supply. Geothermal energy savings reduce CO2 emissions by 50 percent while also reducing noise pollution, since the heat pumps operate quietly. Other advantages of

“There are face to face Customer Service Centres at the airport and major stations, which deal with enquiries in a more personal manner” 104 | be europe

Metro de Madrid

A metro train passes through a station

this system include low maintenance costs and increased useful life of equipment and installation. “Rail in general, and in particular the Metro, is one of the most efficient and sustainable modes of transport,” says Velayos.

“Metro de Madrid has always supported all aspects of sustainability, including those concerning the environment.”

Two years ago the company decided to launch itself across the social networks as an alternative way to interact with its customers – today it has more than 35,000 followers. And the company makes great efforts to engage with the social programmes that matter to its customers. It helped publicise Twelve paths for living after cancer, a campaign organized by the Madrid Institute of Oncology, through a photographic exhibition spread over twelve

stations, in which twelve people who have survived cancer delivered messages of hope.

More than 3,000 people took part in You’re just a metro away from saving many lives a campaign organized by the Spanish Red Cross, Coca Cola and Metro de Madrid, which turned four stations into blood donation centres run by the Red Cross. And Metro de Madrid supports overseas projects too: every year it runs a Cinema in Concert initiative, for Fundación Padre Arrupe’s grant fund, which covers the cost of schooling of the children at Colegio Español Padre Arrupe in El Salvador.

For more information about Metro de Madrid visit: www.metromadrid.es

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U232 Hotel

Elegance personified The hotel sector in Barcelona is rightly held in particularly high regard for its quality of service and product offering. One property upholding these characteristics on a daily basis is the U232 Hotel

written by: Will Daynes research by: richard turner

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Terrace of one the top rooms

U232 Hotel

F

rom the spectacle of Antoni Gaudi’s Sagrada Familia church to the iconic Camp Nou stadium, the city of Barcelona is home to a countless number of stunning sights and experiences that make it one of the most popular city break destinations anywhere in the world.

For more than 30 years one of the hotels catering for business travellers and tourists visiting the city is the U232 Hotel, nestled between Avenida Diagonal and Paseo de Gracia within the shopping and business zones of Plaza Francesc Macià. Part of the Núñez i Navarro Hotels (NN Hotels) group, the hotel offers 102 fully equipped rooms and access to two meeting rooms, a fitness centre, business centre with complimentary internet access, and a peaceful terrace-solarium.

Originally called the Núñez Hotel, U232 underwent a significant remodelling programme in 2007, one that saw it adopt its new name. “For many years this was very much a business orientated hotel,” states Director, Asun Pareja, “however since the remodelling we have been diversifying our client mix to the point where today we have roughly a 50-50 split between business and leisure travellers.”

According to Pareja, both types of client share an appreciation of the hotel’s location away from the hustle and bustle of the city centre. “Here we find ourselves surrounded by a vast array of local business, restaurants and coffee shops that our guests often praise for delivering better quality and value than those found in the tourist hotspots throughout Barcelona.”

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Nevertheless, whatever features or attractions surround a premises it is the offerings of the hotel itself that most endear it to its guests. “I believe that what makes this hotel stand out from others, first and foremost, is the product,” Pareja enthuses.

“Being a family owned hotel we take immense pride in being able to offer the best experience possible, be it through the service we provide, the materials we use or the way we work to maintain the appearance of the building.”

U232 Hotel’s 102 rooms are divided into several different categories. Its best sellers are its basic rooms, which benefit from all the usual amenities and services, while it also offers exterior rooms, rooms with balconies and four that come with their own terraces.

Having this degree of choice allows the hotel to cater to a wider type of traveller with different spending limits.

“In general,” Pareja says, “Barcelona is blessed with having a high quality supply of hotels making this a very competitive market to operate within. It is with that in mind that the NN Hotel group takes great pride in having six of its hotels featured in the list of the top 30 hotel destinations in Barcelona according to the latest ratings on the Trip Advisor website.”

Prior to the financial crisis that enveloped

the globe in the latter years of the last decade Barcelona was in the midst of enjoying a number of very good years economically.

While the effects of the crisis were unavoidably damaging, the hotel industry can take solace in the fact that it learnt a number of invaluable lessons that it continues to apply today.

“In recent years,” Pareja explains, “we have learnt to become more efficient when it comes to managing our hotel and our profit

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U232 Hotel

Basic rooms are very stylish and are U232’s best sellers

margins. One example of the most common compliments measures we have taken to do we receive from our guests this is the outsourcing of our is how well maintained the housekeeping team. In the hotel is and how it looks years prior to the crisis such exactly the same way that it Rooms make up an idea would never have is depicted in brochures and the U232 Hotel on our website. Therefore it even been contemplated, however we were the first of is clear to us that in order to the NN Hotels to do so and remain successful our job is the results of this move, from a quality and to keep the quality of our product and service cost saving perspective, have led to other offerings at a continuously high level, while hotels in the group looking to implement maintaining the excellent condition of the similar moves.” building for many years to come.”

With the industry in the midst of what it itself admits is turning out to be another For more information about challenging year, Pareja is very much U232 Hotel visit: aware of what the U232 Hotel has to do www.u232hotel.com to overcome such a scenario. “One of the

102

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The metals of energy Grupo FerroAtlĂĄntica combines bewildering diversity with simple principles, sticking firmly to its objective of remaining the world leader in silicon metal and other diverse alloys, developing downstream technologies for the energy industry

written by: John O’Hanlon research by: Louisa Adcock

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FerroAtlรกntica

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The Nuevo Pindo hydroelectric plant

FerroAtlántica

T

he Spanish industrial minerals group FerroAtlántica dates back to 1992, when Juan-Miguel Villar Mir acquired the Ferroalloys Division of Carburos Metálicos.

He added a number of businesses, till in 2007 the business had arrived at a critical mass that enabled itself to launch itself as today’s Grupo FerroAtlántica: since then it has continued to grow through acquisition within the silicon and ferroalloys sector, but also setting up a number of new businesses around the world, as dictated by the growing market in these commodities.

Today it employs 3,000 people in five countries and four continents. Starting with four factories in Spain in 1992, it now operates fifteen factories in Spain, France, South Africa, Venezuela and China, and produces over 1 million tons of a diversified array of alloys.

The parent group (Grupo Villar Mir), says Chairman Juan-Miguel Villar Mir, has the unusual distinction of being made up from companies that were in difficulties, were turned around and are now thriving – it is now the 14th largest Spanish corporation. A former Finance Minister, he was ennobled by the King of Spain in 2011 and in recognition of the work the group has done in France he was awarded France’s highest honour when he was installed Chevalier de la Légion d’honneur in 2010.

Grupo FerroAtlántica itself, having grown in this manner, says Group Chairman and CEO Pedro Larrea, has also proved the success of the model, demonstrated by a turnover of more than €1.1 billion in 2012. Following a

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FerroAtlántica difficult trading period, the enerco strategy will be continued.

Based in Born, The Netherlands, ENERCO has been a long“Our strategy continues term partner of FerroAtlantica for many years and is the to be based on ensuring leading producer of high quality, low ash coal world-wide for operational excellence, more than two decades. ENERCO produces in cooperation maintaining a portfolio with its customers tailor-made coal products in its modern of worldwide growth processing facilities in Amsterdam, Rotterdam and Born, and prepares grades with precise sizing and ash content to projects and promoting meet their specific requirements. Comprehensive research technological innovation to and development programs led to patents and the design of be able to maximise profits flexible and efficient coal upgrading processes which allow when recovery comes, just-in-time delivery all over the world. ENERCO offers which we hope will happen customer-oriented services from procurement to shipment, throughout 2013. In a market from coal upgrading to marketing. environment that we hope www.enerco.nl will improve this year, and especially from the start of 2014, we will continue to look for sites for future factories, as well as launching and driving new product sales management, and improving our competitiveness.”

The competitive scenario is an increasingly demanding one, he points out, in a market driven by demand for efficient energy production. “To maintain our current market position, we will need to be able to incorporate a new production plant every two or three years. Given that we are talking about completely globalised markets, we look for the most efficient location with regards to the cost of energy, raw materials and transport, and we are confident of providing our technological and operational capacity to make them the most efficient in the world.

Without being too specific, I can say that we are at an advanced stage in developing new projects on five continents.” At the same time, he adds, FerroAtlántica is keeping a close Group Chairman and CEO Pedro Larrea watch on mineral exploration developments

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€1.1 Billion+ 2012 group turnover

The Monzón factory in Spain

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with a view to improving the supply of raw materials – and will also consider entering the electricity generation market.

When asked about the challenges silicon technology faces from advanced plastics and other materials, he is quick to point out that silicon remains the key material for new technologies. FerroAtlántica’s Elsa electrode, which offers significant energy savings and avoids contamination with iron, has been sold to the world’s main silicon metal producers and is used in the manufacture of 30 percent of all silicon metal produced today in the western world. “We also have proprietary technology to manufacture cheaper and cleaner photovoltaic quality silicon metal more efficiently,” he enthuses, drawing attention to the market fundamentals: demand from photovoltaic cell manufactures for this material is still surging at an annual rate of 20-25 percent. And nobody can trump the achievement of the group’s technology in developing a low cost way to produce silicon at 99.9999 percent purity!

FerroSolar is the name of this technology: solar grade silicon has hitherto been produced by expensive chemical processes which only yield small quantities – so the main bottleneck in making solar energy feasible has been producing enough solar grade

FerroAtlántica

The Serrabal quartz mine

silicon. “It’s 100 percent our own technology and will allow us to considerably reduce the cost, energy consumption and environmental impact, while greatly increasing production capacity,” Larrea predicts.

One of the most recent additions to the FerroAtlántica family, the largest quartz mine in South Africa with an annual production capacity of 1.3 million tonnes and reserves of 60 million tonnes, was acquired in July 2012 for €25.7 million. SamQuartz, founded in 1955 and now the largest producer of high quality silica in South Africa, is of

vital strategic importance for the group says Larrea. The mine is the biggest quartz mine in South Africa and one of the biggest in the world. “With its purchase we have achieved vertical integration of our industrial assets in South Africa and at the same time guaranteed silicon metal production of the highest purity as well as special ferroalloys for a period of no less than forty years.

The South Africa operations managed by wholly owned subsidiary Silicon Smelters include the arc furnaces of Polokwane Smelters and Rand Carbide, the mining operations

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of Thaba Chueu Mining (TCM) including SamQuarz, and 9,584 hectares of sustainable tree farms that provide the smelters with charcoal. South Africa’s economy is badly in need of investment to develop its mineral resources, says Jan Coetzee, Marketing and Commercial manager for Silicon Smelters.

“All the investments by FerroAtlántica have supported production of value added products from domestic resources. We employ over

1,000 people directly but to that you can add a further 6,000 indirect jobs. We have calculated that the economic benefit from our operations extends to more than 30,000 people across South Africa.”

The benefit of having multiple local and global facilities is that knowledge and best practices can be shared, says Coetzee. Silicon Smelters is a South African company, but is fully integrated into the FerroAtlántica group.

“The group has transferred world class business principles and skills to its employees in South Africa”

Working at the Monzón facility in Spain

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FerroAtlántica

Worker at the Rand Carbide factory in South Africa

“Activities like marketing, sourcing, financing and benchmarking are done at an international level, and the domestic operations reap the benefit from these activities. The group has transferred world class business principles and skills to its employees in South Africa.”

Needless to say the most active silicon market in the world is China. FerroAtlántica entered this market in 2008 with a JV that created the Ganzi project in Tibet, which is constructing the world’s largest silicon metal factory. In addition to this project, in 2010, it acquired the Mangshi Sinice Silicon Industry Company Limited in Yunnan province, out of administration. The plant was a new one, completed in 2008, but had never run at capacity. Following FerroAtlántica’s purchase of the factory in November 2010, a two-year

investment program of close to €25 million was launched aiming at upgrading the plant, including the introduction of FerroAtlántica proprietary electrode technology and the increase of the nominal capacity of each furnace to 23/24 MW as well as bringing all plant operations to compliance in every respect (health and safety, environmental and technological standards).

The plant restarted operations on schedule in May 2011 and has, according to finance manager Junhua Shen been performing as efficiently as any in the group. Like the South African operation, it will be developing sustainable forestry to feed the furnaces, additionally acquiring land to allow expansion – this factory alone will provide 250 jobs, he says. “With the nearest high school 650

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“It is quite difficult to attract young educated people in remote areas like Mangshi but they are attracted by the training opportunities we offer�

The Clavaux facility in France

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FerroAtlántica kilometres away in Kunming it is quite difficult to attract young educated people in remote areas like Mangshi but they are attracted by the training opportunities we offer.” In 2011 when the plant started up, 15 technicians came over from Europe for six months to train local employees.

Unlike the western silicon market, Junhua Shen points out, the Chinese market consists of more than a hundred producers, and hundreds of agents/traders, creating a great deal of competition. The Chinese market accounts for around half of all global production of silicon, and China’s strategy is to control 50 percent of this supply within its borders – being an indigenous player is not an option for the number one global producer.

Mangshi, a spanking new operation, contrasts with the oldest in the group, acquired in 2005 when their subsidiary FerroAtlántica acquired the French company Pechiney Electrométallurgie, now Ferropem.

The Montricher plant in south-western France was established in 1914 and has been specialising in the production of Silicon Metal through carbothermal reduction of quartz since 1984. The arrival of FerroAtlántica led to a complete revival of its industrial activities says plant director Francis Rateau: “Grupo FerroAtlántica gave us a very clear directions

Silicomanganese

and objectives, which motivated everyone to improve our plant’s performance.” Through investment, process optimisation, employee empowerment, quick decision making all contributed to the turnaround, he says.

Among the improvements seen as a result of more than €10 million invested in this specific plant were an increase in production capacity through upgrading the furnaces, better raw materials handling in a new input facility close to the rail link and reduced emissions through the installation of a new baghouse.

Montricher is a reminder that the hub of FerroAtlántica’s activities lies in Europe, serving European customers. “However our two South African plants serve the Americas and Asia. Furthermore, our Chinese plant gives us great strength in China and reasserts

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The Monz贸n factory in Spain has two Silicomanganese furnaces and two Ferromanganese furnaces

FerroAtlántica our position as the world leader in silicon production”, asserts Rateau with pride. He places his finger on one of the most intractable facts relating to the electrometallurgical industry – that it is highly energy intensive and still relies on competitive energy prices.

“The main challenge is to produce silicon with a positive net energy balance. We consume significant amounts of electricity to produce silicon from quartz extracted from the earth. Our goal is that silicon will ultimately generate a lot more energy than the amount required to produce it initially.”

Nevertheless, faced with an adverse economic situation in the industry and electrometallurgy in particular, a fall in global demand, the pressure of competition or the high cost of electricity, FerroAtlántica Group has done its homework, says Pedro Larrea.

“We have diversified our production, we have invested in our own technology and we continue to invest in international expansion whilst maintaining a 100 percent Spanish identity. We are confident we can continue along our path of growth, diversification and development, we aim to consolidate our global leadership position and continue improving the service we provide to our customers. We are also committed to the professional and personal development of all our employees – and with the rooting of our activities in the social, economic and industrial environment in which they work.”

For more information about FerroAtlántica visit: www.ferroatlantica.es

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EMED Mining

A GIANT WAKES written by: john o’hanlon research by: robert hodgeson EMED Mining, listed in London and Toronto, is a tiger in the economy of Spain, ready to spring into large scale copper production at the end of this year: it may not save the economy but it will help

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Flotation area

EMED Mining

W

hen we last spoke to new discovery; nevertheless it took foresight Harry Anagnostaras- and rigorous technical expertise to see the Adams, Managing huge potential for modern exploration and Director of EMED extraction techniques here. The mine’s Mining, it was late 2009 eponymous owner, now one of the largest and he had been hoping to get the company’s mining companies in the world, had walked flagship project, Rio Tinto open-pit copper away from the site in the early 1990s, mine near Seville in Spain into operation leaving it in the hands of private owners by 2010. That was at any rate the original who mothballed it in 2000 due to low copper objective of the company, which in 2005 prices on the metal exchanges.

In recent years that has situation has had been floated on London’s AIM market by a group of Australian mining specialists been reversed. EMED acquired 100 percent who saw a real opportunity across Europe ownership of the mine in 2008 when copper and the Middle East. EMED prices were down to $3,000 made its headquarters in a tonne, however by June Nicosia, capital of Cyprus, 2011 they had climbed to as a central location from almost $8,000, a level they which to oversee its activities have maintained, and where in Spain and the Balkans. In they look likely to remain for 2008 it started trading its a long time to come thanks shares on the Toronto Stock to almost insatiable demand Value of Rio Tinto Exchange as well. from China and India. copper reserves In 2007 EMED was The prospects for the granted an option to acquire project are very attractive. the mine known as Proyecto de Rio Tinto It is, the company claims, the largest (PRT) formerly owned by, who else, Rio volcanogenic massive sulphide system in the Tinto. In case there’s any confusion, the world but no drilling had taken place there for region of Spain where the mine sits is the a quarter of a century. Nevertheless the site original Rio Tinto, a town named after the has unrivalled facilities and infrastructure, river which flows close to it, which is coloured with access to water and power, which means red - in Spanish tinto means red, as in vino the capital cost of setting up, and the cost tinto – thanks to all the mineral ores, such per pound of extraction are low. Financing as iron and copper, in its waters. It is located is in place through Goldman Sachs, the 65 kilometres north-west of Seville, in the London commodities hedge fund Red Kite 230km-Iberian Pyrite Belt, which extends as and, linked to an offtake agreement, the far as the Atlantic coast of Portugal.

Chinese smelter Xiangguang Copper.

The original estimate in 2007, while EMED Mining has gone on here since 3,000 BC, so the last thing EMED would claim is a owned just 51 percent of the project, was that

$4

Billion

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Seen

Contact us today and put your company in the spotlight!

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it would need to invest $79 million to get the mine up and running. That was the equivalent of a total $240 million investment. In the event the latest estimate is that it will cost $252 million. “We have spent significantly more time and money to get to the execution stage,” said Harry Anagnostaras-Adams. “On the positive side, we have identified higher target values than initially assumed.”

Going forward the strategy will be not simply to take an old mine out of mothballs, though that alone has taken a considerable amount of work. The initial project is evaluated on a mine life of just 14 years, but he believes that it will continue to yield commercially for twice that length of time. In addition, work in

EMED Mining

Grinding area

the past by RTZ has indicated that there are other deposits on the site, and these will be tested by EMED. It will also re-evaluate the underground mines, optimise and extend the existing reserves, and look at any potential there might be to re-process the tailings from pervious mining activities.

Once the Rio Tinto mine is in full

production during the third quarter of 2013, subject to obtaining the necessary environmental and other permits it will employ around 450 people. The permitting process should not be a problem: the Spanish government is stimulated to get behind any project that will provide employment and generate wealth at a time when both

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School group at primary crusher

“I think the industry’s one of the few bright spots in the global economy” are in conspicuously short supply. Annual production is estimated at 37,000 tonnes of copper in concentrate, based on processing nine million tonnes of ore per year, though Anagnostaras-Adams is talking of ramping up to the full available capacity of 15,000 tpa at an earlier stage than originally planned.

As we reported in 2009 the site holds one million tonnes of copper resources and

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600,000 tonnes of copper reserves, equating to contained metal worth around $4 billion.

As then, the company’s other projects are waiting for Rio Tinto to release the cash flow and resources to develop them. EMED’s 1,000 square kilometre Detva licence area in Slovakia was ‘virgin’ discovery by EMED in 2006. During 2008 the company completed a diamond drilling program of 34 holes on a

EMED Mining

Historic Corta Alaya open pit

100 metre by 100 metre grid pattern at Biely Vrch, finding extensive gold mineralisation.

A scoping study in 2010 indicated that that the Biely Vrch deposit would be commercially viable, capable of producing 60,000 ounces of gold a year over at least ten years.

EMED Mining also has a number of other interests, among them a large mining lease in Georgia and a 30 percent share in exploration company KEFI Minerals, which is active in Turkey and Saudi Arabia. KEFI Minerals also owns an extensive database of exploration data that provides a continuous pipeline of further exploration prospects.

There is no denying that, like every

Diamond drill core storage

industry, mining and exploration has suffered since the onset of the global downturn, but Anagnostaras-Adams remains optimistic. “I think the industry’s one of the few bright spots in the global economy,” he says. And if anyone is wondering about the effect of the proposed EU-instigated raid on assets that is troubling Cyprus at the moment, don’t worry too much – it is unlikely to be liable for more than €20,000.

For more information about EMED Mining visit: www.emed-mining.com

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Discovering one’s potential Having existed as an exploration company up until recently, Auriant Mining’s aspiration is now to become a mid-sized gold producer.

CEO Denis Alexandrov explains how the company is perfectly placed to achieve this

written by: Will Daynes research by: Marcus Lewis

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Auriant Mining

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U

ntil recently, gold mining in Russia was a wholly state monopolised industry, one with a history that dates back over 300 years to when the first gold bullion was poured at Nerchinsky mines in 1702. Indeed, it was during the era of the Soviet Union that, through substantial levels of government sponsorship, the industry experienced its most recent exploration boom period, with upwards of 6000 geologists estimated to have been working in the Soviet Union at one time.

The collapse of the Soviet Union brought with it a swift end to this period of prosperity and an end to major exploration investments. Nevertheless, gold and other precious resources remained hidden beneath Russia’s soil and this created a gap in the market that companies are to this day attempting to fill.

Formerly known as Central Asia Gold AB, Auriant Mining is a Swedish junior mining company, listed on Stockholm’s NASDAQ First North stock exchange, focused specifically on gold production in Russia, primarily in the Zabaikalskiy region and the Republics of Khakassia and Tuva.

“In many ways,” explains chief executive officer, Denis Alexandrov, “2012 has been a transformational year for us, what with the appointment of a new board of directors and the commissioning of the heap leach at our Tardan mine.” The independent, five man board of directors Denis refers to bring together a wealth of experience from a number of fields, from mine engineering to geology, while the commissioning of

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One of the open pits at Tardan

Auriant Mining

“2012 has been a transformational year for us with the appointment of a new board of directors and the commissioning of the heap leach at our Tardan mine” Tardan has taken the company to the next level of its development.

In addition, Auriant Mining today boasts an entirely new, experienced management team, while its non-executive board members include heavyweights such as Lord Peter Daresbury, an expert in mining and the CIS in particular, and Andre Bekker, a gold mining veteran and leading geologist from South Africa. Meanwhile,

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the company has made great strides in improving the individual management teams based at its mines.

“Previously,” Alexandrov continues, “we existed mainly as an exploration company with very limited production capacities.

With the commission of Tardan we have become a self-sustainable business and are now able to finance our own exploration activities.” Both Tardan and Auriant

Auriant Mining

Start of a new heap leach at Tardan

Mining’s other core producing asset, which we expect to result in increased Solcocon in Zabaikalye, are gold deposits, reserves at the mine and therefore increase with ore processed through heap leaching the life of the asset.”

In addition to the mine itself, the company and gravitational technologies.

Located north of the Mongolian border holds an exploration license for 540 square in the Republic of Tuva, the mine of Tardan kilometres of land around Tardan, upon which was built upon a reserve of approximately it has already identified a number of satellite 7.5 tonnes of gold. “At deposits that it believes can present,” Alexandrov says, be brought into production at “the installed capacity at its existing facilities.

Tardan is between one and Solcocon, meanwhile, 1.2 tonnes per year, with possesses some 16 tonnes our target being to produce of gold in reserve, separated up to one tonne of gold here into two different deposits per year by the end of 2014. w ith Auriant Mining Of core to be drilled In that same time we intend currently mining one of at Tardan by the to drill approximately these. Here, installed end of 2014 20,000 metres of core, capacity is between 200

20,000 metres

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and 250 kilogrammes per year, with plans is much more of a greenfield exploration in place to gradually increase this to 500 project,” Alexandrov highlights, “in a very kilogrammes in 2014. “Much like Tardan,” promising area. It is here where we are Alexandrov states, “our plan for Solcocon operating solely as an exploration company, is to explore the flanks of the deposits investing capital in order to identify future to add more reserves to our balance drilling targets and new deposits.” sheet. We will then upgrade our existing Auriant Mining is also a part of a joint infrastructure, aiming to venture partnership with increase production to one Centerra Gold, a large, tonne per year.” established gold miner, As wel l as t he where together they operate an exploration project called aforementioned assets, Kara-Beldyr. An extremely the company also holds promising project that has an exploration license already yielded NI 43-101 that covers the Uzhunzhul Analyst estimates for resources of approximately anomalies group in the gold production in 2013 Republic of Khakassia. “This 500,000 ounces, this project

1,200

kilogrammes

Tardan camp and mill

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Auriant Mining

“What links all of Auriant Mining’s activities is the company’s primary goal and that is to establish itself as a mid-sized gold producer” continues the excellent relationship that the two partners have had for several years now.

What links all of Auriant Mining’s activities is the company’s primary goal to establish itself as a mid-sized gold producer. “Our existing production targets,” Alexandrov goes on to say, “will take production up to around 60,000 ounces a year, a figure that brings us just short of

being an intermediate producer. It is our belief that the next jump in production will in fact come from new discoveries that exist around our current assets, so that is where we will be focusing our exploration assets in the coming years.”

The on-going progress and potential for growth in the future were the key themes that the company recently took the opportunity to put across as part of its participation at the ninth annual RMG Exploration and Mining Investment Conference in Stockholm.

“Our key goal here,” Alexandrov enthuses, “was really to introduce the company to the mining community, particularly those who would not have been aware of us beforehand, and to highlight the fact that this is a new company, with a new management structure, secure cash flows and proven assets, that is ready to take off.”

The vast majority of junior mining companies that are today at the exploration stage of their development don’t have the luxury of being able to rely upon the revenues generated from existing operations. This is what makes Auriant Mining somewhat special and what makes it well placed to achieve its future ambitions.

“While there are other junior exploration companies in Russia, we are one of the only

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Auriant Mining Gold dore being produced at Tardan

ones to be producing gold and generating revenue from gold production. This puts us in the enviable position of being able to cover our costs without having to go to the market to raise fresh equity. On top of this, we have a very supportive majority shareholder who has always supported the company in any way he can.”

In 2013, analysts expect Auriant to double the production achieved in 2012.

This represents a guidance of around 1200 kilogrammes of gold for the full year. The biggest contribution to this will come from Tardan with more than 600 kilogrammes, while analysts expect 330 kilogrammes or more from Solcocon.

These figures are possible due to the continued ramp up in Tardan and the expected improvement in productivity at Solcocon.

“Over the next couple of years,” Alexandrov concludes, “the focus of the company will undoubtedly be exploration.

The reason for this is that we confidently predict that the future success of the business revolves around our ability to make new discoveries and bring new mines into production. That is our core goal, however it is not one that can be achieved in only two or three years. Therefore, immediate growth will continue to come from existing assets, while longer term prosperity will come from new finds.”

For more information about Auriant Mining visit: www.auriant.com

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Taking a professional approach

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GeoProMining Vice president for strategy and business development, Sergei Nossoff, discusses how a combination of international mining expertise and on-the-ground experience has created an enviable track record of delivering significant cash flows from its assets

written by: Will Daynes research by: Robert Hodgson

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New equipment at GeoProMining’s Zod mine in Armenia will provide for expanded exploration of the field

GeoProMining

I

t has long been known that the ground beneath Eastern Europe is home to an abundance of natural resources, yet the difficulty posed by its terrain, amongst other challenges, has left a large part of this region unexplored. Those companies that have managed to establish long-term operations in this part of the world, however, have quickly found themselves reaping the rewards of what Eastern Europe has to offer.

Founded in 2001 as Stanton Equities Corporation, GeoProMining is an international, diversified metals resource holding company with three operating assets in the resource-rich countries of Russia and Armenia. Over the last 11 years, the company has built up a track record of growth through the successful restructuring and development of acquired assets. Today its key operating units, GPM Gold, its Agarak CopperMolybdenum Mine Complex and its Sarylakh Surma and Zvezda mines, are responsible for producing significant quantities of gold, copper, antimony, silver and molybdenum.

“Our business history,” explains vice president for strategy and business development, Sergei Nossoff, “began with the acquisition of Georgian assets, Madneuli JSC and Quartzite, in 2005. In the two years before embarking on a programme of regional consolidation, we took these gold and copper assets and achieved a fourfold increase in production levels, making both operations profitable.”

It was this success that saw the company turn its attentions to Armenia, where it acquired the owner of the Zod gold mine and Ararat gold extraction plant, Sterlite

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Gold, which would become GPM Gold. With explored resources of five million ounces, the Zod mine stands as one of the largest gold deposits in the region.

Late 2007 brought with it the acquisition of the Agarak complex, while it was in March 2008 that the company acquired its Russian antimony deposits. “Since early 2008,” Nossoff continues, “we have focused our efforts on integrating all of our assets into one group, thus creating a very successful enterprise.

Our strong asset management capabilities have ensured that we remain economically self-sufficient, generating healthy cash flows from our operations, and we look forward to building on that in the future.”

In many ways, GeoProMining was founded to take advantage of a niche in the market and that was to capture several prospective deposits and mining operations in the Commonwealth of Independent States (CIS) region and enhance those operations, increasing cash flows and shareholder value.

“Typically,” Nossoff states, “when we acquire assets they tend to be in a slightly troubled state, either because of previous poor management, a lack of economic resources or other mitigating factors. What we do is invest significant capital, paying off existing debts and establishing capital expenditure

programmes. In both of our Russian antimony mines our first task was to clear all paths and access points that had become flooded before anything else could occur. From there we carried out all the necessary assessments before re-launching operations. Such was our effectiveness in doing so that by the end of the first year production volumes had increased almost six fold from where they were previously.”

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GeoProMining

GPM activities in Russia

O ne t h i ng t h at environment and supporting local communities. These are GeoProMining takes just areas that we recognise as as seriously as being able being important components to increase the value of an of the successful and asset, is its commitment to The year the company sustainability. By considering sustainable development of was founded. itself to be a long-term our business.”

GeoProMining is very much investor in the regions in an organically integrated which it has a presence, the company seeks to secure sustainable group and as such its primary strategy going development in the interests of its employees, forward is to grow organically via the success local communities and governments. of its operational assets. That however is not “Our social responsibility programme is to say that further acquisitions sometime in called Resources for Good,” Nossoff says, the future won’t happen. “If you look closely “and it covers various important aspects of enough,” Nossoff says, “you will see that our relationships with key stakeholders. This the market today is awash with opportunities includes taking care of each and every one of so it is natural that at some point we our employees, minimising our impact on the will look into acquiring other sources of

2001

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income that possess the right economics and geographic properties that can increase our business.�

As Nossoff goes on to say, GeoProMining has every intention of becoming a much larger player within the international mining community, however its current focus is on maintaining a solid operational performance across its operations. “As a business we do not subscribe to the idea of trading licenses

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for assets or being the type of company to identify a deposit and simply sell it on to the highest bidder. What we do is take a project, manage it and build it up into a viable, commercial success. That is what we feel we do better than most.�

A proactive player in the marketplace, with a proven ability to integrate operations in different countries, GeoProMining is aware that its ability to grow also rests on its ability

GeoProMining

Leaching tanks at the Ararat gold recovery plant in Armenia

to move further afield into new markets, or simply going deeper into Russia.

“One of the other things we have going for us,” Nossoff concludes, “is that we have a strong, international workforce. The level of experience that these individuals possess allows them to move between operations easily, which in itself brings a united culture to our group, creating extra productivity and effectiveness. This is just one of a number

of strengths that sets GeoProMining apart from other companies, strengths that show that we have a number of different ways to develop our operations and ultimately our shareholder value.”

For more information about GeoProMining visit: www.geopromining.com

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Eurostar Diamond Traders

Polished perfection Chief Executive Officer of the Eurostar Group, Kaushik Mehta, discusses how the company is geared up to meet both the challenges of today and the future

written by: Will Daynes research by: Will Kirby

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One of the polishing rooms at Eurostar, Botswana

Eurostar Diamond Traders

I

t was in 1972 that Dame Shirley Bassey released the iconic song Diamonds Are Forever. Immortalised as the theme tune to one of Sean Connery’s greatest James Bond adventures the song spoke of how diamonds will remain long after a person’s love has gone. The truth is that not only will diamonds outlive many generations to come, the creation of natural diamonds pre-dates life on earth itself.

Formed at high temperature and pressure at depths of between 140 and 190 kilometres inside the Earth’s mantle, the growth of natural diamonds occurs over periods of 1 billion to 3.3 billion years. Brought close to the Earth’s surface naturally through deep volcanic eruptions by a magma that cools into igneous rocks, diamonds can also be produced synthetically or through chemical vapour deposition (CV D).

Renowned for its superlative physical qualities, diamond possesses the highest hardness and thermal conductivity of any bulk material known to man.

Today it is thought that approximately 26,000 kilograms of diamonds are mined annually, equating to a total value of almost $9 billion. At the same time, around 100,000 kilograms of diamond is synthesised, with roughly 49 percent of diamonds originating from Central and Southern Africa.

Despite the timeless nature of diamonds, the diamond industry has not avoided the economic turbulence that has plighted many a business sector over the years. Ironically enough, it was during the 1970s that the seeds were sown for what has since been referred to as the great diamond crash of 1980.

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$9 Billion The estimated value of diamonds mined annually

Rough stone

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Having been founded only two years prior to this event, perhaps it wouldn’t have been a surprise if Eurostar Diamond Traders had become a short-lived entity. As it happens, the events of 1980 actually helped shape the company into what it remains 35 years on.

“Having weathered the near collapse of the diamond business in 1980,” explains Kaushik Mehta, Chief Executive Officer of the Eurostar Group, “we saw the fall in the price of diamonds as an opportunity to set about expanding ourselves from our single manufacturing plant in Belgium, focusing on a core business strategy that involves purchasing rough diamonds, cutting and polishing them, and then selling them on through various channels to retailers, wholesalers and prestigious brand names.”

At its heart, diamond cutting is the practice of changing a diamond from a rough stone into a faceted gem through a combination of specialised knowledge, tools, equipment and techniques. The activity of diamond cutting, as well as overall processing, is typically concentrated in a select few cities around the world, with 80 percent of all rough diamonds being handled in the Antwerp diamond district.

“While our activities in Belgium remain absolutely crucial to our operations,” Mehta continues, “we have developed massively as a business since the early 1980s, evolving into one of the leading diamond manufacturers on

Eurostar Diamond Traders

Analyzing rough stone - mapping inclusions

the market.” This evolution saw Eurostar become a Sightholder of the DTC, the sales and marketing arm of the De Beers Group, in 1986, before going on to found Eurostar Belgium Inc. in New York in 1992.

Two years later the company achieved a major milestone in its development with the establishing of its main diamond cutting and polishing centre in China, where it now operates from three locations. In 2001, Eurostar completed the acquisition of a sizeable stake in The Hearts on Fire Company,

making it the leading producer of ideal cut Hearts & Arrows diamonds in the world. The first decade of the new millennium bought with it yet more success, with Eurostar Diamond Traders Shanghai being founded in 2002 and Eurostar being awarded a second DTC Sight in Botswana. More recently, in 2010, the group has established both Eurostar Diamond Traders Hong Kong Ltd. and Eurostar Diamonds India Pvt Ltd, the latter of which is run by Mehta’s brother Paresh.

Following the successful establishment of

“We have developed massively as a business since the early 1980s, evolving into one of the leading diamond manufacturers on the market” be europe | 157

“Internally, the group has also made great strides in its work to attract, and subsequently retain, the most talented individuals possible to its workforce�

Analysing polished stone

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Eurostar Diamond Traders infrastructure within China the company has begun to turn its attentions to other targets, the next being Cambodia. “As a result of the length of time that we have existed as a leading player in the market,” Mehta states, “we have been able to not only create a very strong distribution network covering various market segments, but also a vast portfolio of notable customers, and we want to build on this further in the years to come.”

Eurostar Diamond Traders’ focus on the future means that it relentlessly pursues innovation, out-investing the industry in developing the latest manufacturing processes and tools. “We are never satisfied with what is seen as the industry standard,” Mehta enthuses, “rather, we stretch ourselves beyond what others see as possible. Thanks to the expertise of our in-house research and development team we are always able to stay a few steps ahead of the competition.”

As is the case with any respected player within the diamond industry, sustainability and corporate social responsibility are massive themes that drive many of the decisions and activities that Eurostar Diamond Traders undertakes. In addition to being 100 percent Kimberly Process compliant, the company participates in a number of community schemes in all of its major locations, from

Kaushik Mehta, CEO

building schools in China to running an orphanage in Botswana. In 2011, the Eurostar group achieved certification to say that it meet the ethical, human rights, social and environmental standards as established by the Responsible Jewellery Council’s Member Certification System.

Internally, the group has also made great strides in its work to attract, and subsequently retain, the most talented individuals possible to its workforce. This all begins with the training that it provides at its factories. “Our in-house schools,” Mehta highlights, “feature intensive programmes that train our workers to expertly polish diamonds. After completing a year-long course, these individuals will have earned the qualifications necessary to move into full time positions in our factories.”

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Sieving polished diamonds

Eurostar Diamond Traders Even with a trained workforce in place one of the major challenges the company faces today, particularly in China, is being able to retain these employees for a substantial period of time. “As recently as two-to-three years ago,” Mehta reveals, “we were experiencing a situation where up to five percent of our Chinese workforce were moving on to other employment on a monthly basis. In the time since we have launched a series of incentivising initiatives to combat this, going so far as to providing accommodation for our workers. What this has helped us do is reduce the percentage of outgoing employees down to as low as two percent, a figure that we hope to improve going forward.”

As Mehta goes on to conclude, this is just one of the challenges that Eurostar Diamond Traders will have to face in the immediate future as the industry battles with the effects of the increasing disparity between supply and demand. “The fact is that while no new diamond mines have opened in the last decade, increased productivity and production has resulted in a shortage of rough diamonds. This is a serious concern for the market and one that will not be solved by a quick-fix solution. That makes it all the more imperative that in the years to come we must continue to do what we do best as a business in order to shine brighter than our competitors.”

For more information about Eurostar Diamond Traders visit: www.eurostardiamond.com

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Eldorado Gold

Adding value through exploration Vice-president and general manager for Greece, Eduardo Moura, discusses how the company’s activities in the country are playing a fundamental part in helping to achieve its goal

written by: Will Daynes research by: Jeff Abbott

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Eldorado Gold

I

Rehabilitation of Olympias tailings pond

n the same way that it had a hugely symbolic meaning to ancient Egyptian culture, gold was just as central to ancient Greeks, in this case as a financial commodity. In fact it was as early as 550 BC that the Greeks had begun mining for gold across the Mediterranean and into Middle Eastern territory. By 325 BC, the Greeks had successfully mined across an area spanning from Gibraltar to Asia Minor and Egypt.

While not quite at its pre-Christianity levels, gold mining has certainly gained some serious momentum since Greece began a fasttrack approvals programme several years ago.

One of the companies leading the gold inflow is today Eldorado Gold.

A Vancouver-based, mid-tier producer with operations in Asia, South America and Europe, Eldorado Gold was founded in the early 1990s and boasts seven operating mines, as well as a pipeline of projects in different stages of construction and development, and an extensive exploration programme.

“Eldorado Gold has been present in Greece since 2008, when we acquired the Perama Hill Gold Project in Thrace, a project that is now in its final stages of permitting,” explains Eduardo Moura, vice-president and general manager for Greece. “In February 2012, we completed the acquisition of the Kassandra Mines from European Goldfields, which included the Stratoni Mine, the Olympias Mine and the Skouries Project, and we now plan to invest approximately $1 billion over the next five years in Greece.”

Northern Greece is an area of particular interest for Eldorado Gold, with its

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ANDRIOPOULOI BROS S.A. Since 1989, ADM is one of the largest Electrical Engineering and Panel Manufacturing firms in South-East Europe. We specialize in the design, construction, installation, commissioning and maintenance of integrated power, control and automation systems.

Certified by EN ISO 9001/2000 we manufacture a range of fully certified M.V. Switchboards, PCC/MCC & Main LV Switchboards, Indoor & Outdoor Distribution Boards, Pillars, Automation & Control Panels and MV/LV substations, following all respective standards and based on our experience as Original Equipment Manufacturers.

Our solutions find a wide array of applications in Industry, Power Generation, Renewable Energy, Buildings & Infrastructure.

Our products and services are made available throughout South East Europe, the Middle East and North Africa having implemented a very strong portfolio of projects including Power Generation Plants, Cement, Oil & Mining Industries, Airports, Railways & Roads for both Public and Private sector.

Having a highly educated and motivated staff, we deal with every new project as a new creative challenge, answering back with a mix of knowledge and flexibility.

Based on our experience we offer project and system management services throughout the lifecycle of a project: from concept/systems design to commissioning and long-term maintenance.

Looking to future strong partnerships we invest on innovation and expertise since we fill that our duty is continuous improvement.

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110, Dekelias Ave., Acharnes, Athens - Greece,.

GR - 13 178 Tel.: +30 210 2461616 +30 210 2461673 Fax: +30 210 2423560 Email: info@adm.net.gr. www.adm.net.gr

FREDERIKOS S.A is an engineering firm located in Kavala, North Greece.

FREDERIKOS S.A premises, covering an area of 6000 sq. meters, have the capability to produce high quality castings and demanding machine works. Field of expertise includes mining, oil, renewable energy and chemical industries.

T: 0030 2510316793 0030 2510316968 F: 00302510316967 E: info@frederikos.com www.frederikos.com

Q U A L I T Y

Services and products include: n turn key electromechanical projects n casting of various ferrous non-ferrous parts n construction and maintenance of industrial equipment n construction of different types of pumps n construction of crushers

H A S

I T S

O R I G I N

ELDORADO Eldorado GOLD Gold reputation Eldorado Gold for feature beingtext a in culpa qui officia deserunt to go here...Lorem ipsum mollit anim id est laborum. highly prospective region Lorem ipsum dolor sit amet, dolor sit amet, driving the consectetur company’s consectetur adipisicing elit, adipisicing elit, sed do plans to spend around sed do eiusmod tempor eiusmod tempor incididunt $23 million in exploration incididunt ut labore et dolore ut labore et dolore expenditure here inmagna 2013 alone. firstad attracted magna aliqua. Ut enim ad aliqua. What Ut enim minim the company Greece, minim veniam, quis nostrud veniam, quisto nostrud exercitation laboris exercitation ullamco laboris and what itullamco continues to nisi ut aliquip ex ea commodo Exteriornisi photo ut aliquip of Stratoni ex ea flotation commodo plant benefit greatly from, is its consequat.

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Excepteur amounts copper, lead, zinc sint occaecat cupidatat non proident, sunt sint occaecat cupidatat non proident, sunt

FREDERIKOS SA FREDERIKOS SA, was established in 1972 .

Today it is a modern unit able to provide high quality services by investing in cutting edge technologies and by having a comprehensive selection of equipment.

The company is divided in two divisions; the machine shop and the foundry.

The combination of the foundry and the machine shop gives the flexibility to fulfil difficult tasks and bring innovative ideas to life.

FREDERIKOS SA philosophy is simple; “Treat all our clients with the dignity and courtesy they expect, from small business to the largest industry”. This includes the exemplary customer service, combining lasting and effective support at all levels.

FREDERIKOS SA has managed through the years, to build strong ties with partners like HELLAS GOLD (member of the EL DORADO GOLD family), AKTOR (the leading

construction company in Greece), ROKAS renewable ( a subsidiary company of IBERDOLA, Spain’s largest energy group), KAVALA OIL (the only oil extraction company in Greece) EL.FE(one of the largest fertilizer industries) and a long list of large and small industries throughout the Greek territory and abroad.

FREDERIKOS SA is at the top of the industry and undertakes large projects. Quality is a prime importance in the engineering industry in general. FREDERIKOS S.A. highlights the quality control system by highly qualified staff performing inspections, disciplined quality control of all equipment, continuous training of staff, and the availability to quality control by our customers.

E. info@frederikos.com www.frederikos.com

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info@aktor.gr | www.aktor.gr

Presence in 12 countries 60 years of expertise Wide areas of expertise -Buildings -Infrastructure -Industrial -Waste Water Treatment -Mining/Quarrying -Facility Management -Project Management 859 ml turnover 2011 2.8 bn total construction backlog (May 2012) 9,000 collaborators in Greece and abroad Rank 103 (ELLAKTOR Group) in the TOP 225 Global Contractors list by ENR (August 2011) Rank 138 (ELLAKTOR Group) in the TOP 225 International Contractors list by ENR (August 2011) Various awards for sustainable construction & development from 2003-2010

EL DORADO GOLD Eldorado Gold

AKTOR The leading position held by AKTOR in the construction sector and particularly in the construction of underground projects (road tunnels, etc.) along with the continuous growing demand for minerals and ores from countries like China, India, Russia led AKTOR to also become involved in the mining sector.

Today it possesses experience, executives and technicians, together with equipment customized for the above activities.

• the renovation of the Olympias mine by widening and deepening the galleries and permanent re-supporting them up.

• the improvement of the existing concentration plant at Olympias in order to make use of the existing marshes.

• a concentration plant for the ‘Skouries’ porphyry deposit and lastly • two earthen dams near the Madem-Lakko mine.

AKTOR S.A., shareholder in Hellas Gold S.A. operates on the polymetallic deposits at “Cassandra Mines” (Cu, Au, Pb, Zn, Ag) and the total reserves per ore amount to: • Stratoni, total reserves 10Moz silver, 0.3Mt lead and zinc • Skouries, total reserves 3.59Moz gold and 0.736Mt copper • Olympias, total reserves 4.06Moz gold, 58.8Moz silver, 0.6Mt lead and 0.8Mt zinc.

As a contractor, it is constructing: • a tunnel connecting the mines Madem-Lakko (Pb, Zn, Ag) & Olympias (Pb, Zn, Ag) ~ 10km in length, with a cross-section of 42 m2.

• a tunnel for mucking raw from the Olympias mine to the Olympias enrichment plant, 1 km long with a cross-section of 27 m2.

• a hydraulic stream diversion tunnel near the Madem-Lakko mine, 1 km long with a crosssection of 16 m2.

• a vertical access shaft to the ‘Skouries’ porphyry deposit (Cu, Au), 700 m in length and 6 meters in diameter.

• a helical access ramp to the ‘Skouries’ porphyry deposit (Cu, Au), 5.5 km in length and with a cross-section of 35 m2.

The special equipment employed for the execution of these projects include Road Header, Jumbo, Tunnel Loader & Dumpers, etc.

AKTOR S.A., with its subsidiary HELLENIC QUARRIES S.A., has also undertaken to engineer the exploitation, extraction, processing and sale of powdered calcium carbonate (industrial mineral) a suitable raw material for use as a filler in the paint, fertilizer, animal fodder and pharmaceutical industries in a site in North of Greece. The annual production amounts to about 100,000 tons of top-quality calcium carbonate, of high purity and whiteness.

The same subsidiary, as a nominated subcontractor of the company Silver and Baryte Ore Mining S.A. (S&B), is constructing two galleries accessing bauxite deposits, gallery S580 with a length of 1,550 m and gallery S627, 1,350 m in length, each with a cross-section of 25m2, filling opened stop bauxite mines with waste rock excavated when building the galleries. It has also undertaken to extract 170,000 tons of bauxite. www.aktor.gr

WEEKLY| |1712 beBEeurope

Q U A L I T Y

A N D

R E L I A B I L I T Y

CRE ATIVE YE AR S FROM 198 4 MAN-AiR was founded in February 1984, initially to supply industry with compressed-air equipment.

Very soon the company’s activities expanded in the area of drilling rigs for civil works and tunnelling, mines and quarries, where it acquired the biggest market share with the Finnish company TAMROCK. To maintain its position in the Greek market, and in order to confront the vast changes in the market requirements, Man-AiR invests in human resources.

Thus, the company’s Sales Department comprises of highly experienced Mechanical and Mining Engineers, who with continuous training, locally and abroad, as well as with visits to all the major international fairs, are informed about all the improvements in the product range, in order to help the customer choose the right equipment according to his needs.

The company’s Spare Parts Department is on-line with the suppliers’s spare parts departments, thus making sure of the availability of spare parts, as well as the ordering progress.

Finally, the Technical support team is equipped with the most suitable and contemporary tools, and combined with perfectly trained personnel is in position to face any problem, either locally in our workshop or with our mobile workshops and through a network of associates.

Man-Air through its many-year experience can offer solutions and equipment covering most of the needs of the construction and mining market, by being the sole distributor of the following companies:

16, 46th Str. & 7th Str. 133 41 ATTICA Industrial Zone, ANO LIOSIA GREECE Tel.: +30 210 5150415, Fax: +30 210 5151832 | E-mail: manair3@otenet.gr | www.man-air.gr

EL DORADO GOLD Eldorado Gold El silver.

Dorado feature Lorem ipsum dolor sit amet, and In Gold Skouries, for text to go here...Lorem ipsum consectetur adipisicing elit, example, we have a copperdolorporphyry sit amet, deposit consectetur sed do eiusmod tempor gold with incididunt ut labore et dolore adipisicing elit, sed do 3.6 million ounces of gold eiusmod tempor incididunt ut magna aliqua. Ut enim ad and 738,000 tonnes of copper labore et dolore magna aliqua. minim veniam, quis nostrud in proven and probable Ut enim ad minim veniam, exercitation ullamco laboris reserves.

This project will nisi ut aliquip ex ea commodo quisfully nostrud exercitation be operational in 2015 ullamco consequat. Duis aute irure and we laboris expectnisi it ut to aliquip be in ex ea commodo consequat. dolor in reprehenderit in Olympias flotation plant: employees at work operation for more than 25 Duis in aute irure dolor in voluptate velit esse cillum years total.�

This Eldorado is a caption this is a caption reprehenderit in voluptate dolore eu fugiat Elsewhere within the country, proven and probable reserves.

Olympiasnulla also velit esse cillum dolore euis a replacement contains 270,000 pariatur. sint Gold’s ore body in Olympias ounces ofExcepteur gold in tailings fugiat nulla pariatur.

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These sunt tailings cupidatat non proident, in culpa qui culpa qui officia deseruntinmollit anim id of gold, 57.7 million ouncessunt of silver, 599,000 are being re-processed the recently officia deserunt mollit anim idtonnes est laborum. laborum.flotation Lorem plant ipsumofdolor sit amet, tonnes of lead, and 796,000 zinc in est refurbished Olympias.

The

MAN-AIR S.A. Man-Air S.A. is activated in supplying machinery for surface and underground works; since 1985 as the exclusive distributor of SANDVIK MINING AND CONSTRUCTION. Man-Air S.A. has the biggest market share in Greece.

Man-Air S.A. has a successful presence since 1996 in the Gold mine of Chalkidiki when Man Air delivered to TVX, 7 Underground drilling jumbos which operate until today in the toughest environment and feature market-leading productivity rates and excellent reliability.

Man-Air S.A. with the unbeaten customer support, ensuring that you get the right parts on time and providing experienced field engineers, manage to continue the collaboration with the new owner

Hellas Gold Sa since 2004.

New robust and reliable machinery, coming from the product range of Sandvik, join the mine in 2012. This new group consists of 2 underground drilling jumbos, 2 Loaders, 2 underground trucks, a rock support drill rig which is capable to do all the needed type of bolts and a sturdy universal concrete spraying machine Sika-PM407.

All this equipment with the after-market support systems of Man-Air S.A. will give added customer value.

With decades of experience and in-depth industry knowledge, Man-Air S.A. aims to fulfill and satisfy the challenges of the future.

E. manair3@otenet.gr www.man-air.gr

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GC ISTRIA: Engineering Consultants and Drilling Contractors

• Providing its services worldwide • Keeping and improving its high standards of performance • Continuously extending its range of services • Supporting and improving the training and working conditions for its employees and collaborators 5 Hatziyianni Mexi Str, P.C. 115 28, Athens, GR | t:. +30 210 72 18 323 / 210 72 18 977 f: +30 210 72 46 597 | e-mail: info@istria.gr | www.istria.gr

NEW PRECIOUS RESOURCE DISCOVERED

Click here to visit our dedicated homepage for the mining community www.bus-ex.com/mining BEST PRACTICE IN MINING

Eldorado Gold Stratoni Mine meanwhile Istria General Consulting contains ten million ounces We specialise in drilling investigations for mining, of silver, 110,000 tonnes of geotechnical and geothermal purposes. Such investigations lead and 151,000 tonnes can potentially reach depths of up to 800m, with of zinc in reserves. Finally, vertical and inclined drillings through complex geological the ore body in Perama hill formations. Engineering designs for infrastructure, energy, contains 975,000 ounces of mining and building projects with particular emphasis on underground geotechnical and structural designs and gold in reserves. mining resource estimation.

“We have always been www.istria.gr focused on building a profitable business with healthy margins by using a responsible approach to growth,” Moura states. “What we do is combine our technical expertise with capital discipline to grow our resources and reserves, develop our assets, increase production levels and identify new opportunities. In doing so, we create and deliver value for all our stakeholders.”

The aforementioned $1 billion investment that the company plans to make over the next five years will be spent primarily on the development and construction of Eldorado Gold’s three main projects in the country; Skouries, Olympias and Perama Hill, as well being used to cover exploration expenditures so as to discover new deposits.

“When all of our mines here are in full production,” Moura enthuses, “we Olympias mine: underground anticipate that we will have become the development and supporting work

“When all of our mines here are in full production,we anticipate that we will have become the largest gold producer in Europe” be europe | 175

“We continue to spare no effort to earn the trust of local communities by demonstrating that we are a responsible mining company” largest gold producer in Europe. At current metal prices our mines will generate export revenues of approximately $1 billion per year to Greece, including sales of copper, lead, zinc and silver. Furthermore, we estimate that by this time we will have generated some 5,000 direct and indirect jobs locally. We have already invested close to $100 million in Greece since the beginning of 2012 and in doing so we

176 | be europe

have tripled our direct labour force in the country from 400 to 1,200 people.”

In addition to the employment opportunities it creates, the company also continues to set aside capital that is used to support the local communities that exist in close proximity to its operations.

This includes approximately €3 million that is provided annually to the Aristotle Municipality in Halkidiki, with plans to

Eldorado Gold

Indoor shooting of Olympias mine

provide another €1 million per year in Alexandropoulos, Thrace, in the not-toodistant future. The money itself is intended mainly for community infrastructure projects as well to provide support for numerous local cultural and athletic associations.

Looking to the future, Eldorado Gold as a group has ambitious growth targets, aiming to produce 1.7 million ounces of gold by 2016. This figure represents more than double its total gold production of 660,000 ounces for 2012 and equates to 160 percent growth over a five year period. Needless to say then that its operations in Greece will play a critical role in delivering this.

“As has been the case since we first entered the market,” Moura conclude, “we continue

to spare no effort to earn the trust of local communities, particularly in Halkidiki and Thrace, by demonstrating in our day to day activities that we are a responsible mining company and that we keep our promises.

Eldorado Gold has an industry reputation which we value highly and aspire to preserve in our worldwide operations. I strongly believe that responsible mining can make an important contribution to the economic recovery of Greece and that the best way for us to remain successful in this part of the world or elsewhere is to walk the talk.”

For more information about Eldorado Gold visit: www.eldoradogold.com

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BLISTERING ACTIVITY

Mining is an economically important industry sector for Turkey, with significant deposits of copper and pyrite concentrate being mined and one of the major producers for these two products is the Eti Bakir AS mining group

written by: John O’Hanlon research by: Paul Bradley

178 | be europe

Eti Bakir

be europe | 179

The Artvin Murgul mines and facilities are located on the north-east coast of Turkey

Eti Bakir

T

he Turkish economy grew in a enriches the slag from the flash furnace, sold highly protectionist mould for to Cengiz Holding Company, an industrial more than half a century following group that started in 1980 with construction the foundation of the modern interests but has since diversified into aviation, republic after World War 1. tourism and energy as well as mining.

However, in 1983 Prime Minister Turgut Özal When it took over Eti Bakir Cengiz started initiated a series of reforms designed to shift to acquire the major upstream facilities the the economy toward a more private sector, plant depends on, taking over the mining market-based model and since then many company Küre Copper Corporation (KCC). former state-owned enterprises have been Also in 2006, Murgul Copper Corporation privatised. One of Turkey’s largest integrated (MCC) which was again a public corporation, mining and beneficiation company’s is was privatized and was taken over by Eti, which has a number of subsidiary Cengiz Holding In 2008, Cengiz went on to units responsible for several mining purchase the Izmir-Ödemi Antimony Mine activities throughout Turkey. when that was privatised, As a result of the and all four corporations privatisation policy some of now operate under the name these activities have been of Eti Bakir AS. Eti Bakir also sold to indigenous operators. owns the Uludag wolfram (tungsten) mine near Bursa, One of these is Eti Bakir.

Eti Bakir’s 2102 deep Bakir means copper in where feasibility work is still drilling record Turkish – this is a copper being carried out. pr o duc i ng c ompa ny, So Eti Bakir mines copper operating from a large facility is located on in two similar mining regions. The Küre Mine a three square kilometre site at Tekkeköy, 16 of Eti Bakir is located in the northwestern kilometres to the east of Samsun in northern part of Turkey, near the city of Kastamonu, Turkey, on the Black Sea coast. Construction close to the Black Sea. The Murgul Mine is of the Samsun plant started in May 1968, operated in the far northeast of Turkey, close and in March 1973 it produced its first batch to the town Murgul in the province of the of blister copper – a 93-95 percent pure city of Artvin. The Küre Mine includes three copper product. The plant has processed open-pit mines as well as one underground copper concentrates from mines all around mine. It is located in an earthquake-prone the Black Sea region, but a large proportion region, so underground operations are comes from northern Turkey – Damar to the a challenge, requiring the best available stabilisation equipment such as DSI’s Omegaeast and Küre to the west.

Eti Bakir was privatised in 2004 and, along Bolt expandable friction bolts, which are with the smelter and acid factory in Samsun flexible enough to withstand the changing and the flotation plant that processes and conditions of the terrain as well as being able

1,870 m

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Cutting-EdgE tEChnology MINING • ENERGY • INFRASTRUCTURE

■ ■ ■ ■

Shaft & Slope Hoisting Solutions Rope-Handling Applications Underground Cooling Systems Automation & Drive Technology Service

SIEMAG TECBERG · Kalteiche-Ring 28-32 · 35708 Haiger, Germany · info@siemag-tecberg.com | www.siemag-tecberg.com

Germany│POLanD│CHIna │aUSTraLIa│SOUTH afrICa│USa

ETI BAKIREtiCOPPER Bakir

SIEMAG TECBERG The successful provider for winder solutions The origins of SIEMAG TECBERG as a supplier to the mining industry go back to the year 1871.

The company is an offspring of the division Mining Logistic Systems of SIEMAG GmbH, and can therefore look back on more than one century of continuous presence on the market.

Since August 2007, SIEMAG TECBERG has been an independent company and is a leading specialist in mine hoisting technology.

The product range of SIEMAG TECBERG covers the complete field of equipment required for the operation of mine winders.

Besides the hoist equipment itself, its auxiliary equipment for rope handling, rescue purposes or mine cooling also have an excellent reputation on the worldwide market. The design and development of all products is based on expertise that SIEMAG TECBERG has gathered during the development and construction of over 200 complete systems and more than 1,000 winders.

With its highly qualified personnel, SIEMAG TECBERG guarantees reliable completion of service projects and support in emergencies.

The specialists of SIEMAG TECBERG are also

available to provide consultation and expert advice. It is your partner before and during project implementation.

And this also means that it continues its support, even after the task is accomplished.

Many of the world‘s leading companies from the mining and energy industries are convinced by the work carried out by SIEMAG TECBERG. Its 140 years’ tradition forms the basis of its outstanding number of successful reference customers all over the world, to which it provides lasting customer-oriented support. This support lays the foundations for continuous technological improvements and developments related to its systems and equipment. SIEMAG TECBERG is the owner of over 50 international patents and authorized components according to BVOS regulations.

In line with its target-oriented corporate policy, which places a major focus on sustainability, the needs and requirements of its customers form the core of its business philosophy, while the development of innovative product and system solutions is the driving force behind how it thinks and acts. When it comes to its corporate activities, the satisfaction of its customers with regard to the quality, reliability, and operating efficiency of its made-tomeasure systems is its main priority.

E. info@siemag-tecberg.com www.siemag-tecberg.com

beBEeurope WEEKLY| 183 |2

NEW PRECIOUS RESOURCE DISCOVERED

Click here to visit our dedicated homepage for the mining community www.bus-ex.com/mining BEST PRACTICE IN MINING

Eti Bakir to link multiple weak strata Normet layers reliably to secure Normet is a fast growing Finnish technology company with this seismically active rock. global operations. It provides advanced solutions for selected These bolts are continuously customer processes in underground mining and tunnelling. installed in the shaft and The Group develops manufacturers and markets machines galleries during tunnel as well as construction chemicals for underground driving. Additionally, last processes such as concrete spraying, explosive charging and underground logistics. year the company achieved Normet’s offering includes a comprehensive range of life a national deep drilling time care services around the equipment and around the record last year at this mine. processes they are used for. Normet is the global market It drilled to 1,870 metres leader in its market segment. using its own Boart Longyear Normet has its own sales and service companies in 6 LF230 rig. continents, 24 countries and 36 locations. Normet currently At the time of privatisation employs close to 1000 business professionals. www.normet.com KCC was already producing unsorted ore from open and underground mines and concentrating it; however in 2009 the reserves of open mines were running out though production at the nearby Asikoy underground mine and Bakibaba, where preparatory and investment work is still being carried out, is continuing. When the investment in Bakibaba Mine is completed in 2015, production which currently stands at 100,000 tonnes per annum (tpa) with 18 percent copper content will be increased to 140,000 tpa.

MCC is at present producing 120,000 tonnes of copper concentrate at 22 percent concentration from 3,500,000 tonnes of crude ore per year. In addition it operates a 35MW hydro-electricity power plant.

Concentrate coming into the Samsun plant from these sources is stockpiled in 17 separate stockpiles each of 2,000 tonnes, giving an overall stockpile capacity of 50,000 tonnes.

The concentrate is loaded onto conveyors that take it to the furnaces.

Samsun Copper Smelter and Sulphuric Acid plant

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When the Samsun Smelter Plant was taken over from government ownership, it only had the capacity to produce 40,000 tpa of blister copper and 200,000 tonnes of sulphuric acid. After major investments by Cengiz which saw the addition of a new 70,000 tpa capacity anode and cathode plant and the modernisation of the acid production plant, the facility now has the ability to produce 250,000 tpa of sulphuric acid. The plant has

three main elements, the drying furnace, the flash furnace and the converter.

Blister copper produced by Eti Bakir is so called because of its appearance. Smelting of ore with copper sulphide and iron sulphide minerals like the concentrates from KĂźre or Damar separates out the metal. The concentrate is fed into the rotary kiln-type drying furnace, which operates at over 300 degrees C, at a rate of 45 tonnes per hour: when supplied it has a

“The plant has three main elements, the drying furnace, the flash furnace and the converter�

Cengiz continues to invest in Eti Bakir, aiming to make it a world-class facility

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Eti Bakir

70,000 tpa, Cu production capacity post expansion

moisture content of between nine and twelve percent and this needs to be reduced to around two percent improve production quality and the efficiency of the flash furnace into which the dried concentrate is then fed.

The minerals are partially oxidized and melted, resulting in segregated layers. The matte layer refers to the iron-copper sulphide mixture which sinks to the bottom. The slag, which refers to the remaining impurities, floats on top of the matte.

The slag is sold on to be used in construction or as sandblasting grit, but it also contains recoverable amounts of copper so is first sent to a flotation plant. The sulphur dioxide gases are collected and converted to sulphuric acid.

After a long refining process the converted

copper, with its characteristic blisters left by the gas bubbles after the cooling process, is recovered ready for further refining.

Cengiz continues to invest in Eti Bakir, aiming to make it a world-class facility in every respect. The first half of this year will see the opening of a new plant on the Samsun site that will produce 250,000 of ammonium sulphate fertiliser. This will mop up some of the overproduction of sulphuric acid, and take advantage of a great opportunity to add value to this commodity.

For more information about Eti Bakir visit: www.etibakir.com.tr

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Park Elektrik

CINERGY Park Elektrik AS is a member of Ciner Group of Companies, one of the largest groups in Turkey: constantly evolving, today it is principally known as a producer of copper and asphaltite, supplying customers within the group as well as abroad

written by: John O’Hanlon research by: Paul Bradley

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C

iner Group was put together by billionaire Turgay Ciner, who owns a diversified portfolio of companies including electric power plants, copper aluminium and soda ash mines, hotels and a media company in Turkey in addition to owning the Istanbul soccer team Kasimpasa Spor.

Park Elektrik is the only quoted company in the group, with Ciner himself the majority shareholder but trading 35 percent of its shares on the Istanbul Stock Exchange (İMKB) following an IPO in 1997.

Today it is firmly positioned in the resources sector, but Park Elektrik Üretim Madencilik Sanayi ve Ticaret AS started life as a very different kind of company. It was

incorporated on March 18, 1994 in order to conduct activities in the textile sector but following its flotation the company faced a difficult domestic market and a downturn in the global textiles market. It started to look around for more stable fields of activity.

Finally, in 2001, Park Elektrik’s terms of incorporation were expanded to enable it to operate in new fields of activity, particularly those of energy and mining.

The company stopped all textile related activities in 2002. Another field it had experimented with, coal washing as a subcontractor to a large coal operation, was abandoned in 2006, and thereafter it concentrated on copper production at the Madenköy mine, near Siirt. The mine’s

Park Elektrik

Subcontractors have been removing 13 million square metres of overburden

reserves have been established in the region of 13 million tonnes of copper bearing ore.

At a plant on site, run of mine (ROM) ore is concentrated, and the concentrate, containing around 20 percent copper metal, is shipped for further processing. The processing plant was completed in October 2004 at a cost of around $30 million and with an annual capacity of 110,000 tpa.

Since 2007 Park Elektrik’s Madenköy mine has produced and shipped a very significant quantity of copper concentrate. In 2011 alone it shipped 80,000 tonnes valued at $120 million and invested $4.5 million to increase its capacity to process ROM ore to 1.2 million tpa, facilitating a growth in concentrate shipped to 86,000 tonnes in

2012. On top of that, an ongoing capacity expansion programme at the processing plant to 1.8 million tpa which is planned to be completed in 2013 will further increase the actual concentrated copper output to the region of 130,000 tonnes in 2013.

This year will witness some major changes at Madenköy. Park Elektrik plans to shift its copper mining operations from underground to open-pit mining by the middle of 2013.

Its projections suggest that this strategy will extend the mine’s life until at least 2025. Since the middle of last year two subcontractors have been tacking the initial stripping operation, removing 13 million square metres of overburden by the middle of 2013 at a cost of $36 million. All in all the company plans

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to excavate 198 million square metres of soil to extract 19.75 million tonnes of ore in the planned 13 year period of open pit mining.

Land acquisition for the more extensive open pit operation was expensive, costing Park Electric more than $6 million upfront.

Readers may wonder what copper mining has to do with electricity, apart from consumption. Well Park Elektrik’s other activities have everything to do with power generation. The Silopi asphaltite mine on which the company obtained an operating licence, held under a royalty leasing arrangement through to 2033, is estimated to contain around 35 million tonnes. Asphaltite is a bituminous hydrocarbon much used in construction: it is also valuable as a fuel and can be burnt in fluidised bed power stations

Park Elektrik

Current asphaltite production to be trebled in 2014

– like the 135 MW facility operated by Silopi Elektrik, another Ciner company.

Operations in the zone started in June 2009. The company sells 100 percent of the asphaltite it extracts to its sister company at a rate of around 450,000 tpa and at cost plus 15 percent. However Silopi Elektrik wants to increase its output to 405 MW from 2014, so Park Elektrik will need to treble the output from the mine to meet this

demand. Initially the mine will continue to be an open pit operation, but eventually it will go underground, using a method known as block caving. This relatively inexpensive mining technique can be used where the ore occurs in a sufficiently crumbly form to flow under its own weight into chambers dug below the mineralisation - it is then removed along an incline.

And Park Electric will soon be generating

“Since 2007 Park Elektrik’s Madenköy mine has produced and shipped a very significant quantity of copper concentrate” be europe | 193

its own electricity. It obtained a 49-year generating licence from the Energy Market Regulatory Authority in December 2008, allowing it to build a 50.5 MW hydroelectric power station at Dyarbakir on the borders of Siirt province. $100 million has been earmarked for this project. It has now secured a further licence to generate 49.9 MW of hydro power at another site in Siirt,

and is currently carrying out feasibility studies there.

Down the line, projected natural gas generation schemes will produce far greater quantities of power and take up larger chunks of investment. $325 million is the expected cost of a proposed 423 MW gas plant at Ceyhan, while a similar sized project at Edirne. 49-year licences have been granted

“As a group we have a high level of consciousness of environmental protection�

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Park Elektrik

Hydro-electric power station in Turkey

for these projects, and construction should start in the coming year.

Ciner’s vision is to create a strong industrial group driving a strong Turkish economy. “Our company, Park Elektrik, is an example of the opportunity to process the ore sources of our country using private investments and state-of-the-art technologies, and thereby to strengthen the economy of our country, especially in the South East Anatolia region, as well as to provide employment opportunities,” he says. Park Elektrik’s Asphaltite project is one of which he is particularly proud: “It has great economic importance for this part of Anatolia. It is an environmentally friendly project. As a group we have a high level of

consciousness of environmental protection and local procurement, promoting safety, cleanliness and health.”

Free health services are provided to the two affected districts at Silopi through enhancement of the existing village clinic and providing an ambulance and health officer. A high school with 16 classrooms has been constructed, while in Silopi town a well-equipped primary school consisting of 14 classrooms and a pre-school kindergarten came into service in 2005.

For more information about Park Elektrik visit: www.parkelektrik.com.tr

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BASIC

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ETI Soda

ASIC EXTRACTION Placing Turkey at the lead in global soda ash production, ETI Soda has been producing this key industrial mineral since 2009 and is now ramping up production significantly

written by: John O’Hanlon research by: Paul Bradley

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S

oda ash is perhaps better known as sodium bicarbonate, and it is a substance with a very large number of applications and uses.

Far from being just an antacid that one can take to counteract dyspepsia after a night out, it can be used as a regular food additive, giving sherbet its fizz and noodles their texture. It is also used in baking, photography, as a degreaser, a water softener or a fixative for dyes.

In fact soda ash is almost as versatile and

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has been almost as much sought after since the earliest recorded history of humankind as its close chemical cousin, salt. Sodium carbonate is a natural water softener, which makes it a common additive to detergents. Products used for these purposes are often sold as washing ash or washing soda. Soda ash prevents hard water from bonding with the detergent, allowing it to be distributed more evenly during the washing cycle. Additionally, the compound has demonstrated its ability to help remove build-up. It can help remove

ETI Soda

Sodium carbonate is a natural water softener

alcohol and grease stains from clothing, as well as calcium build up in everything from coffee pots to hot water boilers. Running a solution of sodium carbonate and water through these systems from time to time will help prevent build up from happening in the first place.

These days there is enormous industrial demand for soda ash. The largest consumer of sodium bicarbonate as a raw material is the glassmaking industry, which depends on it for the greater part of global production.

Most glass is soda-lime glass. It is made from silica combined with soda ash and lime. The soda ash lowers the temperature at which the mixture melts and reduces the mixture’s viscosity; the lime makes the glass insoluble.

Though the traditional way to obtain soda ash used to be by burning vegetable matter and extracting the mineral from the ash, the only way to supply the demands of major industries like glassmaking, chemicals, photography, detergents, textiles, paper making and water purification was to exploit naturally

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ETI Soda

The largest consumer of sodium bicarbonate as a raw material is the glassmaking industry

occurring resources. Though 65 percent of world supply is still produced synthetically natural soda ash gives a cheaper and more dependable product and the proportion is rapidly shifting in its favour.

Soda ash occurs in an ore known as trona, which occurs in only a few places in the world, notably in California and Wyoming.

However there are very large trona deposits in Turkey. The Beypazari trona deposit was

discovered during coal exploration studies conducted by MTA in 1979. It constitutes the second largest reserve in the world, along with the reserves at Kazan. Both deposits are close to the capital city Ankara. In 1998 ETİ Soda A.Ş. was established to extract the trona ore and operate the mine to the benefit the economy of the country.

ETI Soda is held jointly by Ciner Energy and Mining, which holds a 70 percent interest, and

“The Beypazari trona deposit constitutes the second largest reserve in the world” be europe | 201

the Turkish government. Ciner is a diverse industrial group with interests in media and film production as well as minerals. The end product of Beypazari trona ore is ‘heavy soda ash’, which is the product favoured by the glass industry. A series of refining steps are required to produce soda ash from trona ore.

First the raw ore from the mine is crushed and screened. The material is then fed to rotary calciners and heated. In this process, the trona decomposes to form crude soda ash, which is dissolved in water. The insoluble shales are separated from the solution by a combination of settling and filtration steps, and the resulting insoluble tailings are taken back into the mine as backfill. The soda ash solution is treated to remove organic materials yielding a high-purity saturated solution of sodium carbonate.

Then the solution is fed to crystallizers where water is evaporated and sodium carbonate monohydrate crystals are formed.

The familiar industry term ‘mono-process’ originates from this step. The crystals are dewatered and washed using cyclones and centrifuges, and the solution is recycled to the evaporator units for further recovery of soda ash. The monohydrate crystals are fed to rotary kilns where they are dried to finished soda ash. Finally, the end product is screened

and sent to storage silos awaiting rail and distribution by truck.

The ETI Soda plant at Beypazari, built at a cost of $375 million and employing 1,000 people, was commissioned in March 2009 with an opening ceremony attended by Prime Minister Tayyip Erdoğan and the Minister of Energy and Natural Resources, Hilmi Güler.

One million tons of soda ash and 100,000 tons of food grade sodium bicarbonate are

“ETI Mining Operations has put Turkey at the top of the global soda ash sector and we are very grateful for their efforts.”

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ETI Soda

The ETI Soda plant at Beypazari, built at a cost of $375 million and employing 1,000 people

produced per year, with 90 percent of total output being exported.

The plant was of strategic importance to the Turkish economy. As Erdoğan explained: “We went into action and overcame the technical and financial problems. We focused on this project in 2004 and decided it would brings Turkish industry up to a higher level. We laid the foundations. We completed the facility quickly. Now, we are bringing it into service.

Without doubt, now we are at a very crucial point in terms of mining. I have to state that ETI Mining Operations has put Turkey at the top of the global soda ash sector and we are very grateful for their efforts.”

Plans to increase production of the Beypazari complex by 50 percent, increasing its capacity to 1,600,000 tons per annum are in hand. ETI

Soda has exported $1 billion worth of soda ash a year to 53 countries since 2009 and expects the new facility to increase this amount to $1.75 billion per annum. Additionally, Ciner Group has just signed a $1.3 billion agreement with Tianchen Corporation of China to construct a new soda ash and power generation facility at Kazan, just 40 miles from Beypazari.

Together these plants will make Ciner the largest natural soda ash producer in the world – finally, said group president Turgay Ciner, a Turkish industrial company will be a global number one!

For more information about ETI Soda visit: www.cinergroup.com.tr

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