BE.Monthly

ACHIEVING BUSINESS EXCELLENCE ONLINE

MONTHLY EDITION March 2013

barrick cortez: vodacom south africa: coca-cola sabco: eurostar diamond traders:

Polished perfection

How the company is geared up to meet both the challenges of today and the future

Included The BE Mining Directory showcases leading mining organisations from across the world, ranging from big corporations to junior mines and their supply chains.

Be seen throughout our portfolio of magazines: •BE Mining Directory •BE Mining •BE Weekly •BE Monthly •

Go to page 334 to see this month’s listings To find out how to get involved contact: vincent@bus-ex.com

business excellence Design Matt Johnson Art Director mjohnson@bus-ex.com Louise Culling Production Designer lculling@bus-ex.com

business Richard Turner Director of sales rturner@bus-ex.com Vince Kielty Director of Editorial Research vkielty@bus-ex.com Sharon Rooke Administration & Operations srooke@bus-ex.com Matt Day Head of technology mday@bus-ex.com Andy Turner Chief Executive aturner@bus-ex.com

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editorial Martin Ashcroft Editor In Chief

Martin has edited business magazines for 15 years and has been editor-in-chief since Business Excellence began in 2006. mashcroft@bus-ex.com

Will Daynes Editor

Will has been a business writer for three years. He joined the Business Excellence team in September 2012. wdaynes@bus-ex.com

John O’Hanlon Editor

John has contributed to Business Excellence since its inception: he joined the in-house editorial team in February 2013. johanlon@bus-ex.com

CONTRIBUTORS José Luis Gutiérrez-García

Corporate and Environmental Sustainability Consultant and Co-founder of Upcycle the Gyres Society.

Michael Houlihan

Co-founder of the Barefoot Wine brand, business consultant, author, speaker, mentor, and workshop leader.

Wiegert de Vos

Wiegert is a marketing director at Exact, a leading global supplier of business software.

George F. Brown, JR

A regular contributor, George is CEO and cofounder of consulting firm Blue Canyon Partners, Inc.

Chris Faulkner

Chris Faulkner is the founder, president and CEO of Texas based Breitling Oil and Gas.

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features

12 business bookshelf

three steps to a financially successful life

Three book reviews covering financial success, how to generate and nurture ideas plus becoming a better manager.

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16 comment: plastic waste

are we eating trash from your mine?

How plastic waste can leak into the food chain and how, by adopting some simple solutions, mining houses can reduce their impact on the environment.

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20 operations

Five Ways Your Business Can Improve by Admitting to Mistakes

Mistakes are a fact of life. No matter how much you try, you can’t completely avoid making them. But, they can actually help to improve your company’s effectiveness and reputation if you handle them well.

28 energy

china’s energy chess game As China invests in North America and elsewhere in search of energy security, should the rest of the world be worried?

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contents

36 cutomer service

They Only Had One Pig

36

Why listening to your customers recomendations will taylor innovations to suit their needs and enhance product development to yield a higher payoff.

46 Strategy

Learning from the Fast Learners

Three lessons on how western companies can learn from the success of Chinese Second Mouse firms.

52

62 Event preview

getting the right price

52 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.

62

Learn the principles of corporate valuation with S&P Capital IQ in New York city.

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business showcase

64

Mining & Minerals: 64 Barrick Cortez

INVISIBLE GOLD MADE VISIBLE Barrick’s Cortez is one of the most productive and cost effective gold mines in the world, thanks to constructive investment and a good deal of technical innovation.

80 Codelco

THE COPPER CONDUCTOR Almost a third of the world’s copper production comes from Chile whose state copper production company Codelco dominates world supply.

94 Rio Tinto Iron Ore: Pilbara Expansion Projects Meeting future demands

Rio Tinto’s mining operation in Pilbara, one of the most exciting mining developments on the planet.

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94

108 ABB

Powering growth Markus John, discusses the vital role that ABB has in bringing Rio Tinto’s iron ore expansion plans for its Pilbara project to fruition.

112 east asia minerals ACCESS TO INDONESIA

The Vancouver based mineral exploration company has located major gold and silver deposits in Indonesia.

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contents

122

122 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.

138 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.

148 African Minerals

138

AFRICAN MINERALS STRIKES IRON The start of an enterprise that will be a major resource for the global steel industry throughout the 21st century.

156 Set Point Group Testing, testing

CEO Graeme Horsfield talks about a diversified business, expanding its analytical expertise across Africa and beyond.

166 Jindal Africa

A land of opportunity

148

Jindal Africa has been tasked by its parent company, Jindal Steel and Power Limited (JSPL), with harnessing the immense potential that Africa has to offer.

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business showcase

182

182 canada fluorspar inc (CFI) A most exciting prospect

Canada Fluorspar vies to become a major player in the hugely important Fluorspar market.

190 Eti Bakir

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

190

200 park Elektrik CINERGY

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

208 ETI Soda

BASIC EXTRACTION

224

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

telecoms & ICT: 216 CRASA

Working in perfect harmony How harmonising policies and regulations across Southern Africa can stimulate investment and growth.

224 Vodacom SA

Networking the nation Vodacom continues to make strides to remain a leading network in an increasingly competitive sector.

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contents 232 P@SHA

A passion for P@SHA How Pakistan Software Houses Association for IT & ITES is developing the technology sector in Pakistan.

transport & logistics: 240 RDA Zambia

LINKing ZAMBIA

Juggling massive resources to deliver an ambitious road network that will release the landlocked nation.

240

252 Eldo Coaches

GETTING ABOUT IN STYLE How Eldo Coaches is making inroads into South Africa’s long-haul and tourist routes.

260 Abu Dhabi Aviation AIRBORNE ABILITY

270

280

Abu Dhabi Aviation is the most effective and largest operator in the region with MOR services to match.

270 Transcity JV Project BRISBANE DEBOTTLENECKED

The Legacy Way project being delivered by Transcity will help accommodate Australia’s most easterly city to grow.

280 Colombo dockyard SEA TRADE MAGNET

Sri Lanka’s premier ship repair and shipbuilding facility is perfectly placed to catch trade.

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business showcase

288

manufacturing: 288 Colakoglu

Turning back the challenge How Colakoglu’s adaptability to a changing marketplace has contributed to its long-term success.

296 Sohar Aluminium LIGHT AND LEAN IN OMAN

Discover how Sohar Aluminium plans to triple its existing capacity.

308

308 3Q Concrete Cementing a legacy

3Q Concrete supplies its products to some of most important infrastructure projects in South Africa.

Oil & Gas: 316 Al Delma

Training for the future How Al Delma is best placed to create a skilled local workforce in Iraq.

Food & Drink: 324 Coca-Cola Sabco

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A thirst for growth

Simon Everest discusses the future potential of Mozambique and the company’s expansion plans.

contents

BE Directory 334 Buks Haulage Limited Logistical solutions

336

336 C.C. JENSEN

cleaning up the competition

338 Chritech Engineering Services solid engineering

340 finning

unrivalled service

342 minopex

your partner in profitability

344 mintec

PRODUCTIVITY FROM MINESIGHT TO YOUR SITE

340

346 motor plan S.A. leading car rental

348 normet lifetime care

348

350 ppe technologies a company with vision

352 Simulation Engineering Technologies computer simulation

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three steps to a financially success Three Simple Steps: A Map to Success in Business and Life Trevor Blake How many self-help books are written by authors whose biggest success is selling self-help books?

Author Trevor Blake explains why Three Simple Steps is different. “Since 2001, I have built four companies, starting each with a few hundred dollars. My first sold for $107 million, and I had similar success selling my second in 2011. I know what it takes to achieve professional, financial, and personal goals.

I have no identifiable skill or talent. I come from a poor background with as many hang-ups as anyone else. I had no family or business connections to help me.

I have, however, studied the attributes, talents, and insights of self-made men and women. From their successes, I formed three rules and have lived them consistently for

“I have built four companies, starting each with a few hundred dollars. My first sold for $107 million” 12 | Be MONTHLY

20 years. They have turned an ordinary life into extraordinary.

I’m not a sell-help guru, but a pragmatic businessman whose only advantage in life has been the application of these three simple steps.

I didn’t write this to make money. All my

business bookshelf

sful life profits from this book go to cancer research. I wrote it because it works. In recent years, I have taught these steps to individuals and groups and have seen the impact they can make in all avenues of life. Using these three steps, anyone from the road warrior to the stay-athome parent can achieve a better, balanced, financially independent life.”

About the Author Trevor Blake, author of Three Simple Steps: A Map to Success in Business and Life, was founder and CEO of QOL Medial LLC, a specialty pharmaceutical company he started in 2002 with a few thousand dollars and sold in 2010 for over 100 million. In 2006 he founded ANU, a unique not-for-profit dedicated to developing low side-effect cancer drugs.

Prior to this, Blake was VP Commercial Development at Ceptyr and Director Commercial Development at Orphan Medical.

He has worked in the UK, Europe, and the USA with companies such as Biogen, 3M, and Lipha, and has won many industry awards, including marketing professional of the year.

He has an MBA from Durham University (UK) and a Bachelor of Science degree from the Royal College of Radiotherapy. He is also a graduate of the Royal Naval Academy, Britannia Royal Naval College.

Free the idea monkey G. Michael Maddock This light hearted book explores the nature of ideas in business, how best to nurture those who are capable of coming up with those ideas (the idea monkey as it’s referred to in the book) and how to extract those ideas into tangible business actions with the use of guidance and management (or the ring leader as Mike refers to them). Whether you are an Idea Monkey or a (Ring)leader, Mike Maddock has written Free the Idea Monkey just for you.

The book, despite its light hearted delivery, does go into great depth about the notion of harnessing ideas and their creators. There’s something for both idea originators and leaders to enjoy, and will help you identify the ideas which add value to your business and how they can be brought to fruition.

About the Author The founding partner and CEO of the leading innovation agency Maddock Douglas, which has helped over 25 percent of Fortune 100 companies invent, brand and launch new products, services and business models.

Maddock has launched four successful businesses and co-chairs the Gathering of Titans Entrepreneurial Conclave at MIT. He is a featured columnist for Forbes.

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NEW PRECIOUS RESOURCE DISCOVERED

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

business bookshelf Drowning in Bad Management!

William Napier Written by 30-year corporate finance executive William Napier, the book features an insightful excursion through the ranks of corporate America’s executive management teams. This book is an exposé of the overwhelming cause of the underperformance and destruction of stakeholder value.

The author discusses how a small esoteric class of individuals, masking themselves as executive management, consistently and repeatedly makes horrendous decisions which cause inordinate problems to all stakeholders.

Worse still, they shower themselves with compensation levels that are exorbitant when compared to actual company performance. He further expounds the cause behind a number of critical problems that continue to plague businesses and governments around the world.

He rallies sound strategies that will mitigate the damage and negative perception of corporate America.

A special chapter titled “The Rise and Fall of Mortgage Banking” sets the record straight about the causes of the debacle that swept through the mortgage banking industry and dispels the misinformation and political posturing that has so badly misrepresented, what really happened and who is to blame.

Drowning in Bad Management! reveals that executive management teams are

often composed of individuals who are out of position and incapable of leading the organization they serve because they so badly lack leadership skills. The supposed geniuses of the corporate world are in reality far more ordinary than extraordinary.

About the Author William Napier graduated from West Virginia University earning a BSBA in accounting. He is a Certified Public Accountant, Certified Management Accountant and holds several other professional related certifications.

He is a graduate of the School of Mortgage Banking and holds an MBA from NYIT. He lives in Colorado with his family.

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Are we eating trash from your mine? by: José Luis Gutiérrez-García

comment: plastic waste

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arbage was always fond of travel and the invention of pl a s t ic containers was like offering it air miles. Plastics are light and durable, can be carried on the wind or along streams, and even the tiny proportion of them that is designed to be biodegradable is long-last i ng.

Non biodegradable plastic can last for centuries while so called biodegradables last long enough to migrate to places where they aren’t wanted before breaking dow n into poly mers.

They all pollute.

There are places in the ocean where plastics concentrate because of oceanic currents. The biggest is the Pacific Trash Vortex, also called the North Pacific Gyre. The chemicals and bits of plastic they eat are ingested by wildlife. If these fish or birds can digest the material it disrupts their metabolism as well as entering the food chain – it ends up on our dinner plate.

If they can’t, it kills them.

A lot of this stuff is dumped off ships but to

blame the marine industry would be unfair, as it has been estimated that as much as 80 percent of the junk in the sea is land-generated.

While the mining industry is very conscious of the need to meet environmental standards, the focus is often on things like groundwater f lows a nd ta i li ngs management, refurbishment.

The waste stream from mining operations is often less well managed and sites generate a considerable outflow of plastic containers, bottles and the like.

W hile improvements have been made for training personnel to bring-in & take-out their garbage, there is still much to be done to educate field workers about not throwing their empty water or drink bottles in the bush. Some of them do not care.

If plastic waste is not found or picked up, it will remain there for decades, hundreds, or even thousands of years, or it may travel an amazing journey from very far inland into the ocean.

In remote operations where it is neither easy nor cost effective to ship

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comment: plastic waste out plastic waste, burning permits are set in place. In this case, plastic from mineral exploration or mining activities becomes a direct contributor of CO2 and other toxic and noxious emissions into the atmosphere.

Because burning plastic in more established camps and mine sites is not permitted any longer due to better and stricter environmental regulations, mining managers truck camp plastic refuse to nearby towns or cities to be recycled or disposed in landfills or incinerators.

Mining op e r at ion s take very little notice or attention at the disposal and transportation costs, and the contribution of plastic waste to their overall operational CO2 footprint.

Camp managers chuck these costs into the business as usual category or into the “free” backhaul advantage.

Once their plastic waste arrives into town, especially in countries where they do not have recycling programs, their plastic waste contribution ends up in landfills or worse, in waterways.

Mining camps can do much benefit to their operational cost savings by providing reusable containers for drillers and equipment operators instead of constantly buying disposable plastic or aluminum containers and plastic bags for workers to carry their lunches.

Mining camps can provide staff with company-logoed swag in the form of reusable

bottles and strategically placed water fountains to refill them instead of spending enormous monthly amounts of money on bottled water. In many cases both water, and bottle go to waste when people just take one sip and forget it in the trucks or workshops.

All mining stages will benefit from creating a bin program for waste-stream management to separate their garbage at source in the maintenance shop, at the diamond drill, workshop, and in the lunchroom.

Larger mining companies, if so inclined and forward thinking, can cut fuel costs by implementing Refuse Derived Fuel practices and operations into their claims or in partnerships with local landfills where the economic returns are seen in the offset fuel costs when the company uses the fuel internally.

José Luis Gutiérrez-García, Corporate and Environmental Sustainability Consultant and Co-founder of Vancouverbased Upcycle the Gyres Society. 2011 Chair of the Sustainability Committee for a remote gold mining operation in the Arctic. Proponent of Zero Waste-Zero Emission Mining. www.upgyres.org

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operations

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operations

I

t seems our society has turned dodging responsibility into an art form. From celebrities who insist that a brush with the law was all a big misunderstanding to political figures who use spin and double-speak to blame everything on the other side, no one wants to admit it when they mess up.

If you’re a business leader, the temptation to use this strategy is huge. After all, your customers are paying you to get it right, so the last thing you want is for them to know that you’ve made a mistake, right?

Maybe not. According to Michael Houlihan, when your company admits to mistakes in a constructive way, you won’t damage your brand in the way you feared.

In fact, you have a valuable opportunity to gain respect and loyalty.

“You and your company

are not judged by how well you do when you’re good, but by how well you do when you’re bad,” shares Houlihan, “The fact is, everyone—and every company—makes mistakes. Denying that they have happened usually exacerbates and magnifies an already awkward situation, because chances are, you aren’t fooling anyone and you appear insincere.

“In fact, in a very real way, trying to dodge responsibility can hurt your reputation more than simply owning up to the mistake in the first place,” he adds.

Houlihan speaks from experience. He and Bonnie Harvey are the founders of Barefoot Cellars, the company that transformed the image of American wine from staid and unimaginative to fun, lighthearted, and hip.

And when they started the company in the laundry room of a rented Sonoma County

farmhouse, they knew almost nothing about winemaking or the wine business.

“As you might imagine, we made many mistakes over the years as the business grew,” admits Houlihan. “Some of them even caused us to worry that Barefoot might not survive. So early on, Bonnie and I made a conscious decision to confront our mistakes, and to view them as opportunities to learn and grow. I believe that attitude is part of what ultimately made Barefoot Cellars successful.”

Honestly and humbly admitting to missteps, Houlihan and Harvey found, often diffuses a tense situation instead of exacerbating it. And as time passes, they say, people tend to remember more clearly how you handled the mistake as opposed to what it was.

If you’re ready to face up to your company’s mistakes and turn them into building

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blocks, read on for five of Houlihan’s suggestions on handling your next business “my bad”: 1. Cop to it Yes, it’s uncomfortable to admit that your company did something wrong. Uttering that mea culpa involves swallowing your pride and acknowledging that you are not, in fact, perfect (which is an illusion that our culture encourages us to zealously cultivate). But the sooner you admit to the error, the more

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you reduce the drama…and the faster you can move on to the next, more important stage: what you are going to do about the situation.

“People actually like a little imperfection now and then,” points out Houlihan.

“It demonstrates a level of authenticity, vulnerability, and humanity with which we all can identify. Plus, it’s harder to be angry with someone who says, ‘You’re right—I messed up,’ than with someone who insists the fault doesn’t lie with

him…even though you know it does. And it’s difficult—if not downright impossible— to make any constructive progress if the responsible party refuses to admit there’s a problem.”

2. Recognize how it happened If you admit fault but then put the incident behind you, guess what? You’ve just increased the chances that it will happen again. It’s very important to investigate how and why an error occurred,

operations

“if it happened on your watch and you are accountable for the finished product, you ultimately share the blame in the customer’s eyes” so that you can fix the faulty procedure or process. That’s why Barefoot made sure employees weren’t afraid to make or report mistakes (those involving technical errors, that is—Houlihan is adamant that bad behavior or an inability to perform should not be overlooked).

“Basically, our approach to mistakes was to say, ‘Congratulations! You found a new way to screw up, and that’s a good thing. We didn’t know that this could happen, but now that it has, we can keep it from happening again,’” recounts Houlihan.

“Then we would brainstorm what went wrong and make technical adjustments.

Honestly, I think that large siloed organizations where you can be demoted, passed over, or even fired for a mistake are missing the boat. That’s because real progress in progressive companies is often built on

the backs of mistakes and the improvements they spark.”

3. Aim, don’t blame What happens when a mistake involving your company really can be traced to someone else? While it’s easy (and temporarily satisfying) to point your finger and say, “Not my fault!” the truth is, if it happened on your watch and you are accountable for the finished product, you ultimately share the blame in the customer’s eyes. In this situation, get to the bottom of what happened and aim your focus on what you and your company can do on your end to prevent the situation from reoccurring.

“This lesson was driven home to me during a business trip to Chicago,” recalls Houlihan. “I was supposed to show some new wines to retailers, and the samples had been shipped to my hotel. However, when the

package arrived, the hotel didn’t check to see that I was on the reservation list— they noticed only that I wasn’t currently occupying a room—and they sent the package back. Technically, my lack of samples wasn’t my fault, because the hotel didn’t do their due diligence.

But to my buyers, all that mattered was that the new wines weren’t there.

“From that point on, we at Barefoot worked to make sure that no package would ever be refused in error again,” he continues. “After some trial and error, every box of wine was ultimately decorated on all six sides with instructions to the hotel not to return the box, and details of when I would be arriving.

We also included Barefoot’s contact information and instructed the reader to get in touch with the hotel manager, whom we had told to expect the package,

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“if you don’t write down what happened and how to avoid it, you are in danger of making the same mistake again” before sending it back.

Overkill? Not really. Because the problem was solved.”

4. Write it down If you successfully resolve a negative situation that was sparked by an error, then rub your hands together and continue with business as usual as if to say, “Yes, it happened, but it’s all cleaned up now,” then you’re making a second misstep. According to Houlihan, if you don’t write down what happened and how to avoid it, even you are in danger of making the same mistake again, and the same is doubly true of others.

“When you are still smarting in the immediate aftermath of a fiasco, it’s easy to assume that you will always remember what you did wrong and that it will never, ever happen a second time,” Houlihan points out. “But

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often, as life goes on and your focus inevitably shifts to other things, your memory can get fuzzy. Or you might fall back onto old habits unconsciously.

And you certainly can’t pass your own experiences to everyone else in your company through osmosis. That’s why it’s crucial to take the lessons you learn and physically make them part of your company’s policies. This might mean writing a new procedure, checklist, or sign-off sheet, or drafting a new clause in a contract. But whatever you do, write it down!”

5. Resolve that it won’t reoccur Along with your apology, assure the injured parties that it—whatever “it” was—won’t happen again. Voluntarily describe how the mistake happened and what changes you are implementing to

operations prevent its reoccurrence. And most importantly, tell the other guy, gal, or group how you and your company are going to make things right.

Most people will appreciate your thoughtfulness, resolve, and the action you are taking.

And often, handling an error in this way will reinforce the fact that you are, ultimately, a trustworthy company that can be relied upon.

“I remember one situation in which Barefoot had put the wrong bar code on a store’s shipment of cabernet, which meant that the wine rang up for less than it should have,” shares Houlihan. “In this instance, it was us who caught the mistake, not the customer.

But as soon as possible, I showed up at the store’s corporate office with a check for the store’s loss, plus the time and expense of dealing with the mistake. Then I described to the manager in detail how

we at Barefoot were changing our internal processes to make sure that the bar code problem would never happen again. And guess what? That store thanked us for doing the right thing, and it didn’t stop ordering from us.”

“Once again, mistakes are bound to happen—even if you’re an established company, and especially if you’re a newer one,” reiterates Houlihan. “So don’t waste time and energy beating yourself up, and especially don’t try to create the illusion that you’re perfect.

“Remember, what people recall most of all is how you handle missteps and errors, not what they were,” he concludes. “So don’t miss out on these golden opportunities to show your integrity, reduce the drama, and improve the way your business operates.

That is how you make mistakes right.”

Michael Houlihan and Bonnie Harvey’s book The Barefoot Spirit: How Hardship, Hustle, and Heart Built a Bestselling Wine, chronicles the history and lessons learned building the popular Barefoot Wine brand. They now share their experience and innovative approach to business as consultants, authors, speakers, mentors, and workshop leaders. www.thebarefootspirit.com

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China’s energ

As China invests in North Am of energy security, should the

written by: Ch

28 | Be monthly

Energy

gy chess game

merica and elsewhere in search rest of the world be worried?

hris Faulkner

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T

he Canadian g ove r n me nt ’s recent approval of China National Offshore Oil Corporation’s (CNOOC) bid to buy Nexen, Inc. set oil and gas insiders abuzz: is it another smart strategic move in China’s massive chess game to ensure adequate and stable energy supplies for its ever-growing needs, or a calculated effort to gain entry to the North American, and more worrisome, the US energy patch?

North America has seen more than $17 billion in gas deals with Chinese companies since 2010, making it a top target for Chinese investment, but North America is by no means alone in enjoying attention from China.

China’s needs outpace domestic supply China is now the world’s largest consumer of energy.

Though China is the world’s fifth largest oil producer, the country has been a net oil importer since 1993.

The International Energy Agency estimates that China could become the world’s largest consumer of oil, and

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its need for natural gas has been growing quickly as the country seeks to lower carbon emissions and aims for natural gas to reach 18 percent of the population by 2015.

Wary of unreliable supplies from the volatile Middle East and of Russia’s manipulative nature, Chinese companies have been busy using their state-backed

$17

Billion North American gas deals with China since 2010 might to strike partnership deals and make investments in nearby regions. These agreements have enabled China to set up networks that provide access to oil and gas supplies and pipelines, as well as technology and know-how to access their own reserves. Eschewing Russian and Iranian export corridors, for example, China now has pipeline access via Turkmenistan, Uzbekistan, and Kazakhstan.

China has been ramping up its partnerships and investments in other regions for a long time, with its first oil loan to Angola in 2004 for energy, infrastructure, and other projects. It has made loans to companies in Bolivia, Brazil, Ecuador, Kazakhstan, Turkmenistan and Venezuela to secure long-term oil and gas supplies, and joined into partnerships with companies in Australia, Africa, Russia, Uzbekistan, Turkmenistan, Canada and the US. In all, China has established 60 bilateral agreements with various countries, and cooperated with 40 countries in oil exploration and development projects.

“Playing nice,” so far The CNOOC-Nexen deal is not China’s first foray into North America. In 2005, CNOOC bought 16 percent of MEG Energy, Ltd. to help develop an oil sands project in northern Alberta; Sinopec, China Investment Corp. and PetroChina have also made deals with Canadian companies; CNOOC provided development funding for some of Statoil ASA’s Gulf of

Energy

Mexico leases and invested in Oklahoma’s Chesapeake Energy for stakes in several US fields.

So far, China has “played nice” as it has expanded its investments into other countries. The Chesapeake deal, for example, was structured so that CNOOC did not get an ownership stake and had

no control over production.

Whereas most deals include secondment (temporary assignment of the partner’s employees), the US deals have specifically excluded this to avoid potential political backlash. Adopting a more collaborative approach, China has forged alliances to gain advantageous opportunities but has not exerted its considerable political powers.

And the US has been a supportive ally, helping Ch i na rei n force its sovereignty by expanding its domestic gas production and increasing pipeline capacity.

In exchange for access to the deep pockets of China’s stateowned energy companies, US companies have shared new technologies and methods for extracting unconventional resources. Houston-based Baker Hughes, Inc., for example, drilled China’s first horizontal shale oil well last year.

Energy

“China has forged alliances to gain advantageous opportunities but has not exerted its considerable political powers” Inaccessible resources Industry experts believe China holds the world’s largest shale gas reserves, with total recoverable shale gas resources estimated at 1,275 trillion cubic feet—more than all of the recoverable resources in the US and Canada combined— but those reserves are mostly

beyond reach due to difficult geology, poor infrastructure, and water shortages.

China’s geology poses technological problems unique to the shale gas industry, with most reserves fully twice as deep as those in the US and further hampered by hilly terrain.

While the government is seeking foreign investors with the technical knowhow to exploit its reserves, China’s unique geology means that shale drilling technologies from other countries cannot be copied directly.

Chinese companies are seeking to learn from their foreign partners, but deals that give them access to foreign supplies are critical.

China is also hobbled by a lack of proper infrastructure.

Its fragmented pipeline

network, processing and storage facilities are not currently capable of handling the potential volume promised by its reserves. As much of China’s natural gas reserves lie far below mountainous terrain, developing technology for

1,275

trillion Estimated cubic feet of shale gas resources in China the deep reserves isn’t the only obstacle. Typically, oil companies must construct new roads, bridges, and other infrastructure for large-scale drilling operations.

Water is another obstacle for China. In February of this year, China issued a warning

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about its worsening water problems. The government has issued strict water consumption restrictions and has heavily invested in water conservation systems, but these measures have done little to curb growing demand for water in the world’s secondlargest economy. China’s water shortage issues could impact its ability to reach shale reserves using the fracturing methods that require large quantities of water. This, again, is where China’s partnerships and investments in foreign energy companies could eventually pay off in the form of development of alternative fracking components, like carbon dioxide and nitrogen.

Despite the challenges, China has designated shale gas as an independent resource, clearing the way for smaller companies, domestic and possibly foreign, to

develop it. In December of 2012, the Deputy Director of the National Energy Administration reiterated that China is actively e nc ou r a g i ng f or e ig n companies to invest in exploration and development of China’s energy resources, a nd i nv ites energ y companies to set up research and development centers in China.

Is Chinese investment a real worry?

News of the CNOOCNexen deal has generated some concern over China’s potent ia l undisc losed motives for gaining further inroads to the North American market. Though China has been playing nice thus far, some worry that this is just another move in China’s end-game of securing world dominance via control of not only economic but also energy

markets. Part of the problem is the fact that Chinese oil companies are not privately owned; they operate with the backing of the Chinese state.

The CNOOC-Nexen deal raises issues of American energy security, as it gives unprecedented influence over American reserves

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Energy

to a foreign government.

China and other countries with state-owned oil and gas companies have in the past used their oil and gas resources for political leverage, so the worry is not unwarranted.

A s ide f r om t he aforementioned trade-offs for China, another deterrent to Chinese interference in the American oil and gas market should arise from the US’s six-decade commitment to protecting China’s imports in the South China Sea, using the US Navy to ensure safe

passage. China’s confidence in that commitment, however, has appeared to waver in recent years as Washington has rebuked China’s conflicts with Taiwan and North Korea.

Regardless of uncertainty over China’s ultimate

motives, it doesn’t appear that China will be slowing its foreign deal-making any time soon. Deal by deal and investment by investment, the world will watch as China’s energy chess game—and end game— plays out.

Chris Faulkner is the founder, president and CEO of Breitling Oil and Gas, an independent oil and natural gas company based in Irving, Texas. Founded in 2004, Breitling Oil and Gas employs state-of-the-art petroleum and natural gas exploration and extraction technologies for the development of onshore oil and gas projects. www.breitlingoilandgas.com

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They Only Had One Pig Why listening to your customers recomendations, will tailor innovations to suit their needs, enhance product development to yield a higher payoff and save you time in the process

written by: George F. Brown, Jr.

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customer service

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D

uring a recent discussion, a customer of one of my clients described an episode of the popular television series House in response to a question that I had asked. In that episode, Drs. House and Wilson had made a bet as to which could hide a chicken in the hospital for the longest time without being detected by security.

A young doctor on the staff asked a colleague why each of the two senior department heads had chickens in the hospital. The answer she got was “The store only had one pig.”

The interviewee connected this story to my question about our client’s product development contributions as follows: “Every year, your client comes to us with a new release of their product, touting some new features and capabilities. We always ask them ‘Why did you do this?’ and get some sort of an answer. Now I realize their answer is the equivalent of ‘They only had one pig’. It is an answer, technically accurate, but doesn’t really address what we are asking,

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namely ‘What makes you think these changes will be of any value to us?’” He went on to characterize the most recent several releases of our client’s product as being totally disconnected from what they needed as a customer. His concluding comment was that “Maybe someone in your client’s engineering department thinks these are good ideas, but clearly no one has ever asked us customers if we share that opinion.”

While this executive’s perspective was a troubling message to take to this client, the truth is that their firm is far from alone in terms of investing in innovations that produce nothing by yawns on the part of customers.

Several years ago, two of my colleagues cataloged the most frequent external inputs to product development as follows: • Last Call Certainty – Ideas advanced that react to the most recent customer visit.

• Incrementalism – Ideas focused on small-step improvements to the current product.

• Technology Infatuation – Ideas surfaced by experts

“Maybe some client’s en department t are good i clearly no o asked us cu we share th

eone in your ngineering thinks these ideas, but one has ever ustomers if hat opinion”

customer service enamored with technology they have seen elsewhere, heard about, or personally developed.

• C opy-Cat Imitation – Ideas advanced because a competitor has gone in this direction.

• B rainstorms – Ideas advanced as a result of an inspiration. What is unfortunately missing from this list is the recommendations of customers.

Thinking about your customers – not just your direct customer, but customers at every stage of the customer chains in which your firm participates – provides the inputs for an approach to innovation and product development that can yield a higher payoff. As the executive quoted earlier went on to say, “We know exactly what your client should do in terms of evolving their product. And we’d be excited if they listened and took our advice. All they’ve ever needed to do was ask.”

For almost every firm, this executive’s advice is correct and relevant. Customers know what innovations

would be of value to them, and are almost always willing to share their ideas.

There is a systematic way to think about your customers and elicit ideas that will create value for them and lead to rewards for your firm’s shareholders. In CoDestiny, we outline three ways in which a firm can bring value to its customers – helping them to grow volume, helping them to achieve a higher price point, and helping them to “take costs out” and strengthen their bottom-line margins.

These three routes to success always work, and they work when it comes to identifying innovations and new product strategies.

As an aside, these three concepts also provide a litmus test for ideas that are surfaced through traditional means such as those that were listed above. If the idea has merit, the sponsor should be able to explain how it will help customers grow volume, reach higher price points, or take costs out of the system. If they can’t make at least one of those connections, it is the right time to bring out the caution

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“Most customers respond to questions about how they can grow by focusing on what it will take to increase their market share, and this opportunity should never be overlooked” flag. And, in those instances in which the sponsor of an idea can provide a credible explanation as to how the idea will create value along one of these three dimensions, you now have the foundations for a productive discussion with the customers who are thought to be the likely beneficiaries of the idea. More often than not, discussions with customers that are focused on the reasons why the innovation is believed to create value will yield one of two outcomes. One possibility is that you will learn that it is wishful thinking, that the customer doesn’t buy into the value calculation. It’s rarely wise to just accept that outcome and discard the idea, but it is almost always wise to hear their reasoning and objections.

The second possibility is the more exciting one, when the

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customer agrees with the potential. In those instances, there can be incredible value from interactions that result in a “customer-written product development plan.”

After all, who is better at saying what they will value then your customers?

Listening to customers is, of course, always a challenge, always with the potential for distractions and misleading messages. That reality applies to discussions about innovation and product development as well as to the other topics where conversations are important.

It is critical to separate the innovations and product development contributions that genuinely create value for customers (and allow you to capture value for your own shareholders) from those that don’t. In truth, customers are often as guilty as your

own organization’s team in terms of being swayed by interesting technology, competitor offerings, or other such factors. But when approached correctly, the potential for your customers to contribute high-value insights is great.

Ideas that Help Your Customers to Increase Sales Volume The first means of creating value for customers involves contributions that help them to increase sales volume. To get at ideas that contribute along this dimension, the focus of discussions has to be on what the customer believes is impeding their growth. Productive lines of discussion involve two routes to greater volume – taking market share and reaching “adjacent” markets.

Most customers respond

customer service to questions about how they can grow by focusing on what it will take to increase their market share, and this opportunity should never be overlooked. If a supplier can help its customers win sales against its competitors, your firm and your customer can both benefit from higher volume. If you can learn the dimensions along which your customer is viewed as inferior to its competitors, you might be able to identify contributions that can help to close that gap.

But another way of helping a customer increase volume is by helping them to identify new markets in which they can participate. Sometimes these new markets involve new geographies – entering fast-growth markets like China, India, or Brazil.

It is remarkable how much of a contribution a supplier can make in this area, particularly if their

customer’s entry strategy depends on understanding the peculiarities of the new country market, or if it has local-content requirements, or if new sales channels are required to reach end customers. The key thing to learn from a customer is what will have to change in order for them to be successful in a newly-targeted market. That insight can help to guide your firm’s product development plans.

New geographic markets are, however, only one option through which a supplier can work with its customers to

find new sources of volume.

Adjacent markets offer a similar possibility, but often require more creativity in terms of thinking. If the options were easy, the customer would probably have thought of them and already implemented then.

Successful suppliers have come up with ideas in this realm by thinking of how their own products and services contribute across the customers and markets in which they are active, and then trying to spotlight lessons that can be taken to specific customers that build upon those broader lessons. Your customer is probably already thinking about adjacent markets and will likely value any insights you can bring as to how they can make the transition successfully. Bringing them ideas is a superb way through which to start a conversation that can lead to ideas about

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new product development options that will deliver value to your customer.

One firm, for example, had numerous customers that served the aftermarket in their industry with replacement parts and services. It identified other firms that only sold original equipment, and went to them with ideas about how to expand to a more complete life-cycle offering. In several instances, this idea resonated with the customer, and the two firms defined product development strategies to allow entry into the customer’s aftermarket environment. In another industry, a firm that developed a new sensor for use in highlychallenging environments involving extreme weather conditions subsequently did a systematic examination of other instances in which sensors might be subjected to demanding conditions. The project involved a combination

of market research and brainstorming, resulting in the identification of nearly two dozen possibilities. They then did outreach to prospective customers, learned the issues that kept those firms awake at night, and commissioned several product development efforts to evolve the sensor’s capabilities into those application environments.

Today, over 70 percent of the firm’s sales are in these additional markets.

Ideas that Help Your Customers to Reach a Higher Price Point The second opportunity for value creation, helping customers to reach a higher price point, is probably the one which is most confusing and challenging. It is rare to speak with any company that doesn’t cite the challenge of developing new capabilities that differentiate their product and respond to the

challenge we cited in the title of the first chapter of CoDestiny: Your Customers Want More and They Will Pay You for It. One approach that has generated constructive discussions with customers involves defining options through which customers can offer a standard product at their current price point and a new, high-end option at a higher price point. This approach allows the supplier to provide customers with a “no downside, real upside option.” If the option is selected, the supplier and the customer can share the rewards of reaching a higher price point, and if the option takes off and gains market acceptance, it can in fact move the market to the higher price point preferred by customers.

The key question to ask your customers is of the form “Assume for a minute that

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customer service your current product falls at the ‘Better’ point on the Good-Better-Best spectrum.

Under that assumption, what would the ‘Best’ product look like?”

Sometime a supplier can do their own market research or draw upon their own experiences to develop a roster of ideas that can be discussed with customers. Learning what is of interest to even a niche group of customers can be of great value, if a trade-up option relevant to that niche audience can be developed.

Many of the options that we presently take for granted on our cars and trucks were first offered as trade-up options to a niche group of customers before becoming standard features on vehicles. Small items like cup holders, most of the consumer electronics used in vehicles (eg CD players, DVD players, navigation systems, security systems etc), and products like sunroofs began in the aftermarket as a post-sale option for those customers that wanted them. As suppliers helped the carmakers to see the increasing volume of

customers that bought these products, the carmakers began to offer these features as options on their vehicles.

Many of us can remember making the decision to buy the car with the CD-6 player and the sunroof, even though it had a higher sticker price. Today, many cars offer those options as standard equipment. The automotive industry is not the only one where this strategy has proven successful.

What it required to make this option successful is insight about what additional features are of interest to at

least some niche group of customers. That is one of the reasons why, in this section and the earlier one, I have advocated using market research and experience to create a factual starting point for conversations with customers. Like anyone, your customers values it when you bring them useful information and insight.

Doing so is always a superb way to begin a constructive conversation, one in which the customer sees your attempt to bring value to them and is oriented towards reciprocating. The other

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“The final opportunity for creating value for customers is that of identifying how to take costs out of the system” reason for the developing a solid fact basis is that of separating those ideas that have the potential to create value from those that don’t.

As was noted before, not all of the ideas you hear from customers are good ones, so additional sources of corroboration can help to ensure a focus on the ideas that have merit.

Ideas that Help Your Customer to “Take Costs Out” The final opportunity for creating value for customers is that of identifying how to take costs out of the system.

This approach requires that firms take a new perspective on innovation and product development.

Most frequently, the perspective about innovation and improvement involve better performance or more features. These are, of course, valuable contributions, and

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the source of many of the success stories associated with growth in sales volume or reaching higher price points. But they are not the only possible contributions from innovation initiatives, as the following comments from customers of various suppliers attest: “It reduced our costs of manufacturing.”

“It eliminated two steps in the installation process.”

“It cut our warranty claims in half.”

“It allowed us to increase our efficiency in managing our shelf space by 25 percent.”

“It didn’t require protective packaging.”

“It allowed us to use the same component on three generations of our equipment, reducing inventory levels by more than half.”

“It was self-diagnosing, reducing the number of trips required to fix a broken unit by half.”

Every one of those statements was included in a supplier success story told by a customer about a highlycherished supplier that had brought value to the customer.

In none of these instances did the success story involve improved performance along the basic metrics relevant in the industry, nor did any involve new features of importance to end customers.

But all of them helped the supplier take costs out of the system and improve their bottom lines.

Every supplier has such options, and innovation planning should focus on identifying them and determining whether it is possible to respond to such options for value creation.

The best suppliers become aware of these options by building strong touch point relationships at all levels of their interactions with their customers. It’s highly unlikely

customer service that interactions between the sales and purchasing organizations are going to focus on discussions about shelf space economics, manufacturing process improvements, or packaging.

But other departments within both the supplier and customer organization are acutely aware of problems and opportunities in these areas.

And if those departments interact and share information effectively, it will often be the case that the supplier organization can identify innovations that respond to real customer needs.

It takes investment in relationships to get to the point where such innovation opportunities surface naturally, but such investments can have a huge payoff and significantly increase the number of instances in which innovations will be applauded by a supplier’s customers.

Just asking your contacts in the purchasing department “How can we help your firm take costs out?” probably will elicit an answer of the form “Cut your price.” But asking the question of the right individuals throughout

the organization can yield answers like those reflected in the various quotes presented above and point the way to product development options that create value that can be shared between the supplier and their customer.

Summary To conclude, return to the challenge reflected in the comments made by the executive at the start of this article. The product innovations that were made only because “they only

had one pig” were invested in because the firm failed to listen to the voices of its customers. When this firm refocused its efforts to learn what options would create value for its customers, it found exciting options within all three categories.

For the firm that was the subject of the executive’s harsh review, the outcome was a celebrated success. Within a two year period, it had doubled the percentage of sales associated with new product introductions, and there was widespread agreement within the firm that the best was still to come. Their experience can be replicated in your firm.

The same potential exists for you to get help from your customers to bring a focus to your innovation and product development plans, ones that results in customers saying “They listened and did exactly what we needed.”

George F. Brown, Jr. is the CEO and cofounder of Blue Canyon Partners, Inc., a management consulting firm working with leading business suppliers on growth strategy.

Along with Atlee Valentine Pope, he is also the author of CoDestiny: Overcome Your Growth Challenges by Helping Your Customers Overcome Theirs. www.bluecanyonpartners.com

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Learning fro the Fast Learn Three lessons on how western companies can learn from the success of Chinese Second Mouse firms

written by: George F. Brown, Jr. & David G. Hartman

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strategy

om ners

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I

n previous articles, we’ve written about the emerging competitors from China, firms that are beginning to expand their reach from that country’s broad middle market to even the well-established markets of North America and Europe.

We have characterized these companies as Second Mouse firms, drawing upon the saying “The early bird gets the worm, but the Second Mouse gets the cheese” in recognition of their strong fast follower and fast learner competencies. In fact, it has been the ability of these firms to learn best-in-class manufacturing skills from western firms and to parrot key elements of western technology and design that have enabled them to succeed by bringing to market an “almost as good product at a great price point”. Such firms as Huawei, Haier, Sany, Mindray, and Geely are now significant forces in the global economy, with more and more Chinese firms in manufacturing, construction, engineering, ser v ices, and other segments of the economy occupying positions on the Fortune Global 500.

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A key ingredient in the success of the Second Mouse firms has been their application of fast learner skills to the goal of creating “almost as good products at a great price point”. More often than not, western firms focus innovation and product development on raising the bar in terms of key performance metrics, improved design, or additional features. The Second Mouse firms, on the other hand, focus their efforts on achieving significant cost saving without compromising the factors that matter most to their targeted customers.

We have used the familiar story of Southwest Airlines as an analogy, reflecting a successful western firm that stripped away some costly features found in other airlines to offer an acceptable service at a very attractive price. So a first element of learning that can be gained from the Second Mouse firms is that there are multiple flavors of innovation, and that innovations that achieve highly attractive price points with still-acceptable products can create a business success story that yields sales to middle market customers that

“The early the worm, bu Mouse gets

y bird gets ut the Second the cheese”

strategy translate into strong rewards for the firm’s shareholders.

Just as these Chinese firms have learned from western market leaders, it is possible for western firms to benefit from implementing other aspects of their approach to learning. In this article, we’ll describe three additional philosophies that are second nature to the Second Mouse firms, ones that have helped them to achieve success through fast learning. They are ones that some western firms can accurately say they practice, but by and large, the Second Mouse firms have taken these ideas to a higher level. Even those western firms that can correctly say they already implement these ideas should be asking how they can similarly take their current practices to a higher level.

1. Question, question, question Several decades ago, our firm hosted delegations of Chinese interns who hoped to learn about western practices with respect to data resource management. As our team welcomed these individuals, we first began to hear comments like “I’m exhausted answering all of

their questions”. But over time, the comments shifted to observations like “They asked me a really provocative question today” and “I had to admit I had no answer to a question, and it’s gotten me thinking …”. Reflecting this experience, the first learning principle we see in the Second Mouse firms is “Question everything”. This is a practice that had paid off for many western firms, particularly when they’ve listened carefully to messages from the market as to what does and what doesn’t create value for their customers. It’s easy to do things “because we’ve always done them that way” that in truth are costly and that contribute little to value creation.

2. the 80-20 rule A second lesson involves the familiar concept of the 80-20 rule, with a particular twist to its application by Second Mouse firms. Their concept is that the final increments to performance, design, and features come at a very high cost, and the Second Mouse firms use the 80-20 rule as the route through which they can offer “almost as

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good products at a great price point”. Over and over, they’ve found that their customers, not just in the middle markets of China, but around the world, are willing to sacrifice those final increments when doing so makes the product much more affordable. One western firm with which we worked learned this lesson well.

Through a careful market research project, they learned that their targeted market segment in China attributed very little importance to five product features that were of major importance to their ability to differentiate their

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product in western markets.

By excluding these features and taking the associated costs out of their product, they were able to achieve a competitive position in China, gaining share, unlike other western firms that attempted to market their western products into China with an unchanged feature set and price point.

3. Taking the time out The third learning lesson is one that all western firms will recognize: “Time is money”. The Second Mouse firms are religious in terms of thinking about how to

shorten the critical path.

Anyone with experience in China’s markets can probably provide examples about how a Chinese firm built a working prototype of a product in the same time that western firms used to gain approval to begin working on the same project.

We have used the phrase “China speed” to characterize their obsession with quickly getting to market through creative approaches that “take time out”. Not all of the concepts that they employ to do that will translate neatly into western markets. For example, many Chinese firms are seen as doing “beta

strategy

“What enabled the Second Mouse firms to be the ones that “first thought of it” was their constant focus on fast learning” testing in people’s homes”, or, stated more positively, substituting service resources for expensive and timeconsuming processes. While not all of their practices are appropriate to other markets, the focus on “taking time out” is one that frequently pays off not only in terms of cost savings, but also in terms of first-mover advantages.

For many western firms, competition from Chinese Second Mouse firms that are new to global markets will be the most significant challenge of the coming decade. These new competitors will draw upon their fast learning skills to achieve success in new markets, and will frequently surprise their western targets with products, processes, and innovations that “look obvious once you think of it”. What enabled the Second Mouse firms to be the ones that “first thought of it” was their constant focus on fast learning, looking at innovation

from a new perspective, questioning everything, applying the 80-20 rule to cost reduction, and focusing on ways through which they can “take time out”. Those western firms that learn these same principles will be the ones that will have the best chances of winning in the future, not only against new competitors from China and other emerging economies, but against their traditional roster of “usual suspect” competitors.

Learning from the fast learners will be a critical success factor in the coming years, and now is the time to start on that journey.

George F. Brown, Jr. is the CEO and cofounder of Blue Canyon Partners, Inc., a management consulting firm working with leading business suppliers on growth strategy.

Along with Atlee Valentine Pope, he is also the author of CoDestiny: Overcome Your Growth Challenges by Helping Your Customers Overcome Theirs. www.bluecanyonpartners.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

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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.

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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” 60 | Be monthly

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

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EVENTS getting the price right Principles of Corporate Valuation: Developing a 360˚ Perspective Getting the Price Right 21-22 march 2013 Sentry Center, 730 3rd Avenue New York, NY 10017 Course Overview What price will it take to get a deal done? This seminar’s primary objective is to learn how practitioners in the financial services industry apply various valuation techniques in the context of an eminent transaction. Heavy emphasis will be placed on demystifying the theory behind the analytics and ultimately gaining an understanding of their impact

62 | Be monthly

on a transaction. After gaining a working knowledge of the “scientific” analytics, participants will gain a new appreciation for the “art” of valuation through an in-class simulation.

Course Content and Organization This two day course will use several different teaching methods: theoretical presentations to confirm the base line understanding; hands-on examples and Excel financial models to reinforce the theory; practical review of past M&A deals to provide realworld examples; a course-pack to support content and finally mock presentations used to demonstrate the impact of valuation techniques in a “live-deal” scenario.

Participants will negotiate the best deal for their shareholders using buy-side and sellside guidance they developed themselves.

The course content will broadly include common valuation techniques and topics such as: • Intrinsic valuation: stand alone financial analysis and discounted cash flow analysis registration for all individuals is done at one time and for the same course on the same date • Relative valuation: public comparable analysis and acquisition comparable analysis • Deal structuring techniques: synergy

Special preview

Case Study Approach

roll-outs, shareholder value math, merger consequences analysis, debt capacity and affordability analysis • Sell-side and buy-side process.

Objectives By the end of this session, course participants will be able to: • Understand the valuation framework commonly used by finance professionals • Use live date and create a public market valuation: public comparable analysis, acquisition comparable analysis and discounted cash flow analysis • L everage sell-side and independent research to reach an informed view of the case study company and its sector/ industry • Learn how different structuring techniques effect valuation.

Designed to provide an overview of financial modeling and corporate valuation to corporate development officers, strategic planning officers, investor relations professionals, M&A specialists, investment bankers, investment analysts, lawyers, accounting professionals, management consultants and academics - and taught by industry practitioners with extensive, real-world experience, this highly interactive, two-day seminar combines lectures, case studies, exercises, group discussion culminating in a mock presentation of a “live deal” scenario where participants negotiate the best deal for shareholders using buy-side and sell-side valuation techniques.

Coursework developed and instruction coordinated with Training The Street. www.trainingthestreet.com Prerequisite Basic knowledge of Excel, finance and an understanding of basic valuation techniques are recommended to maximize the benefits of this program.

CLICK HERE to register: www.capitaliq.com

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Barrick Cortez

INVISIBLE GOLD MADE VISIBLE Barrick’s Cortez mine is one of the most productive and cost effective gold mines in the world, thanks to constructive investment and a good deal of technical innovation

written by: John O’Hanlon research by: Jeff Abbott

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Barrick Cortez Aerial view of the Cortez Hills site

O

ver recent years, Cortez Hills has yielded well over a million ounces of gold annually, in the first quarter of last year at a cash cost of $308 an ounce, well below industry averages of between $400 and $500. The key to the success of this operation lies in the nature of the deposit, says George Fennemore, Barrick’s Manager of Corporate Social Responsibility and regional permitting specialist for the company. Like most Nevada mines, Cortez contains large deposits of ‘invisible’ gold, where the ore holds microscopic particles rather than veins or nuggets of gold. But to understand the present day deposit it is necessary to look at its history.

Mining in the Cortez district began in 1862, says Fennemore. “The mining authorization for some of the claims out there was originally signed by Abraham Lincoln’s administration: in fact the first development was encouraged by the US government to help fund the Union effort during the Civil War.” There has been almost continuous mining in this district for 150 years, however the metal Lincoln had his eye on was silver, and silver mining continued there right up until the outbreak of World War II. Gold mining activities started after the war, but it was not until 1962, when the United States Geological Service inaugurated a two-year pilot project at Cortez and Newmont’s nearby Carlin property to refine the application of heap leaching to these low carbon, low sulfide oxidized deposits, that the ‘invisible’ gold became commercially ‘visible’. “The process is simplified when

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Today’s TPCs have proven to be an essential accessory to the mining and quarrying industries and are designed and tailored to provide the best protection for each specific application in the mining, quarry, slag industry, or any situation where tough conditions such as sharp or abrasive materials or extreme heat applications can damage tires. Erlau’s tire chains protect the tread and sidewalls of the tires, preventing equipment downtime and loss of productivity. Erlau can deliver a tire protection/traction chain solution which

is tailored to suit the harsh conditions the equipment is working in.

The Granit Plus X23mm, Erlau’s most prominent tire protection chain product, is the heaviest chain for its size on the market with the ability to be fitted on the largest tires in the industry. The Granit Plus delivers outstanding results in tough and highly abrasive hard-rock applications; the LINK-RING design of the Granit Plus allows it to stand up to even the harshest environment.

The TERRA PLUS traction chains are specially designed to be the most effective way for tires to cope with snow, ice and soft ground.

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9 million oz Established deposit amount

Inside the processing plant

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of sulfides or carbon in them.” The Cortez deposits tend to be low in sulfide and carbon deposits and very conducive to heap leaching.

Not all the gold in the Cortez district is held in these oxidized deposits, but a significant proportion of it is, and there is much more of it than was ever suspected when the nearby Pipeline deposit was being mined in the 1990s using truck and shovel methods.

“We have continued to look for these large scale oxidized deposits,” he explains. “They are well suited for the mining fleet and for the processing that was already available on site. By going back into productive districts and drilling a bit deeper we were able to locate the Pediment deposit back in 1999.

Further drilling revealed the adjacent and larger Cortez Hills deposit. That was when we finally understood that there was a large gold deposit at depth.” A minority of the gold at Cortez Hills is indeed found in refractory rock. This is transported 75 miles to the company’s specialized mills at its Goldstrike property to the north of Elko – this might seem an expensive option, but it makes sense when one considers that construction of a new refractory mill would cost upward of a billion dollars.

Barrick took six years to complete its drilling program and establish a deposit

Barrick Cortez

Overview of the mine from the mountain side

in the region of 9 million ounces coming in at a very satisfactory grade, with some areas exceeding one once per ton of ore.

The permitting process began in 2005 with applications to both federal and state agencies, and the operating permit was finally received in November 2008.

The entire process was complicated by the fact that the area became the focal point

for a Native American rights organization’s struggle over land that is now managed by the US federal government. Besides gold, the area was also rich in historical and cultural resources. While Cortez Hills contained no Native American settlements as such, it was located on traditional migration routes.

Artifacts were found in their thousands, dating back thousands of years. “We

“We executed one of the largest archaeological programs that had ever been done in the State of Nevada” be monthly | 71

STRIVING TO BE THE BEST. CHOOSING TO BE THE SAFEST. Cementation is proud to be part of the Barrick Cortez Hills Project team providing design, construction management and mine contracting services.

Cementation U S A 10150 Centennial Parkway, Ste 110, Sandy UT 84070 801.937.4120 • www.cementation.us

NEW PRECIOUS RESOURCE DISCOVERED

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

Barrick Cortez executed one of the largest archaeological programs We are an underground mine contracting and engineering that had ever been done in company, providing mine development and production the State of Nevada aiming services for Clients throughout the US and Mexico. We to characterize, document are focused on safety and committed to our ultimate goal and preserve the archaeology of zero harm within our operations. We understand that and history through that mine owners are looking for safe work, engineering that adds value, and a contractor willing to work with them, and area.” Over eight months together meet budget and schedule challenges head on. the site was populated by Complete with our best for project philosophy, Cementation archaeologists armed with is and has always been that contractor. trowels and going inch by www.cementation.us inch across the area of the proposed mine. In all, nearly 400,000 artifacts were recovered, many from historic mining in the area. Cataloguing these items was a massive task for the Nevada State Museum which continues to stabilize, curate, and preserve them for posterity.

There’s never a mining development where there are not some objections from community, environmental and commercial interests, and Cortez Hills was no exception.

Barrick’s legal success over objections gave no particular cause for satisfaction and George Fennemore in fact sees the dialogue as a prime way to engage legitimate concerns and hopefully allay them. “Because we utilize public land for our mining, this gives the opportunity for any interested party

CEMENTATION USA INC.

9 miles Process General Supervisor Darrin Powers with about 5,500 ounces of gold dore

The longest conveyor in Nevada serves Cortez Hills

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“We opted to build the longest conveyor in Nevada rather than truck ore from the pit�

A section of the conveyor belt

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Barrick Cortez to comment. Anyway the dialogue is not just about our mining operation but in general how the government handles resources.” This is a particularly big issue in Nevada where 90 percent of the land is Federal Government owned. Cortez is the largest mining operation on federal land in the USA and the main permitting process handled through the US Bureau of Land Management is bound to attract considerable public comment. That may not always be comfortable but it does provide a forum. In the Maintenance worker end, local interests should receive primary consideration in view of the at our existing facilities which are about nine undeniable economic boost the project and miles away from the pit itself, so we opted to all its associated activity generates. build the longest conveyor in Nevada rather By midsummer of 2009 construction was in than truck ore from the pit.” full swing, using a 78-cubic-yard P&H 4100, The conveyor designed and supplied by multiple 57 cubic-yard P&H 2800 shovels and ThyssenKrupp Robins can transfer 1,000 a fleet of 27 400 tonne Liebherr haul trucks. tons per hour from the Cortez Hills to the Though it took till the end existing heap leach facility – of that year before the ore it includes a belt feeder and body was uncovered and gold five conveyors. A 90 foot long recovery could commence. variable speed belt feeder This was a fast track project. transfers primary crushed It took just under a year to ore to the first of the 5 get from virgin ground to the conveyors. The most complex ore body, says Fennemore. conveyor of the system is the Proven and probable “We process the ore from seven mile long regenerative gold resources at both the open pit and the overland conveyor that runs Cortez, end 2011 underground mine below it at 900 feet per minute with a

14.5 million oz

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4280 EAST IDAHO STREET | 1-866-766-ROPE | www.elkowirerope.net

Elko Wire Rope & Mining Supply would like to thank the Nevada Mining, Drilling & Contractors who have made us successful in this area since 1996.

We look forward to your continued support.

LOCAL QUALITY SERVICE SINCE 1996

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ELKO WIRE ROPE & MINING SUPPLY It is the goal of Elko Wire Rope to provide manufactured rigging products and hardware which are competitively priced and delivered on time with zero defects at quality and service levels that are consisitent with the expectations of our customers. We fully understand that to do so is good business.

The succes of Elko Wire Rope depends on our commitment to associate involvement, continual improvement and improved buisness performance goals.

E. elkowirerope@frontiernet.net www.elkowirerope.net

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Barrick Cortez The Cortez Hills pit and underground mine entrance

90% Amount of land in Nevada which is Federal Government owned says, and when the time came for these trees to be removed the Shoshone people were consulted and the timber made available to indigenous communities for firewood and other uses.

It is important to get interventions of this sort right, George Fennemore believes. “It is easy for a big corporation to overwhelm a small community so we work very diligently to pay attention to the land users, other water users, and employers – for example when we harvest trees we are careful to work with local woodcutters and not wipe out their business by dumping a load of firewood onto the market.” A global corporation such as Barrick has to be particularly diligent, he says, to be sensitive to the needs of local communities and local businesses and operate in ways that will not disrupt their livelihood. Many local vendors and suppliers are supported by the presence of a large operation, and many local businesses have benefited from Barrick’s policy of sourcing the maximum possible in materials and services from them.

For more information about Barrick Cortez visit: www.barrick.com

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THE COPPER

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Codelco

Almost a third of the world’s copper production comes from Chile whose state copper production company Codelco dominates world supply

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Codelco

C

Autonomous mining trucks

opper fundamentals are highly buoyant. Demand for copper is increasing at over half a million tones annually, most of it driven by China, which consumes 20 percent of global supply.

Demand for copper shows no sign of levelling off in the opinion of researchers at Yale, who calculated from 2006 consumption figures that global demand for copper would exceed the amount extractable from the ground by 2100.

Codelco (Corporación Nacional del Cobre de Chile or the National Copper Corporation of Chile) was founded in 1976, five years after the Chilean government nationalized the entire copper mining industry. Codelco grouped the existing deposits into a single mining, industrial and commercial corporation and today it is the biggest copper producer in the world controlling a tenth of known global reserves. Codelco has more than $20.835 billion in assets and in 2011 its equity totalled $6.065 billion. In the same year the company produced 1.79 million metric tons of refined copper - over ten percent of world copper production. And at today’s investment levels it estimates it has the capacity to maintain current production rates for a further 70 years at least.

But that can’t be done without strategic investment, and a number of specific projects are being targeted. The Andina Division is located at 3,000 metres above sea level a little to the north of the Chilean capital Santiago and at the base of the chain of operations that is strung out along the Andes in the northern half of Chile. It

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CODELCO Codelco

FINNING, CONTRIBUTING TO THE FUTURE OF MINING benefits to the mining companies, it permits that the workers operate from securer places and the possibility that the processes are conducted in a more constant manner” In addition, Finning and Caterpillar have been working on the design, development, validation and implementation of new processes, equipment and technologies, for the exploitation under a new concept called “continuous mining”. This implies a very big technological change, which will permit the extraction of mineral without detentions.

This technology addresses several of the current challenges that the mining industry Mining companies are continuously looking faces: increase of the costs, derived from for different ways to improve security, fall in the quality of the mineral extracted , reduce costs, increase profitability, and promoting efficiency. Also, new technologies requirements of sustainability and the need for always improving the standards of safety are always required to increase production, and occupational health of the operators and improve the recovery of the minerals and to mining workers. keep the workers secure.

Finning and Caterpillar have understood this “Finning’s aim is to fulfill the markets needs challenge. That’s why they have implemented with excellence in equipment and services, so that their customers may reach each an important technological plan, which facilitates advancing towards an automated of their goals. To be able to do this in an accurate manner technology plays a key mining industry using the latest technology role, that’s why Finning and Caterpillar are in systems, which allows control and command of the operations of various mining working so hard in that dimension. Last but not least, Finning is playing an important role tasks from a central office.. in tackling the challenge of lacking qualified Currently Finning´s offerings includes professionals for the mining business in semiautonomous technology that allows general, by investing in Technical Formation, for operation of LHD equipment, this suite to be able to ensure and deliver the best is called Command. Command permits the operator to do the loading work cycle from a service in the market and to offer formation remote location, operating the machine using for operators and technicians on the client´s side.” a control.

“It is positive to be incorporating process www.finning.com automation, since it brings important

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$4.3 Billion Invested by Codelco in 2012

Employee at the Ventanas division

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is a combined open-pit and underground mining operation. Andina Expansion Phase I project involved expanding its mining and processing capacity from 72,000 tonnes per day to an average 94,000 tonnes per day and was completed in 2012 at a cost of $1.2 billion. But this was just the first part of a major expansion programme aimed at increasing annual production at the mine to around 680,000 tonnes over the next 30 years. Andina Phase II is truly a megaproject involving the shifting of more than half a million tonnes of ore daily once it is completed in 2018 – by then Codelco will have invested $6.27 billion at Andina.

Chuquicamata, 1,600 kilometres to the north of Santiago near the port of Antofagasta, is an open pit operation that has been mined for a century and is close to being mined out.

But lying at a deeper level Codelco estimates there is a further 1.7 billion tonnes of copper ore. So from 2019 and for the next 50 years after that Chuquicamata will operate as an underground mine, a change that will cost $3.8 billion. The method to be used here is block caving, which involves driving access tunnels below fragmented ore that is crumbly enough to flow under gravity to the waiting trucks. It is an increasingly favoured way of dealing with high volume, relatively low

Codelco

Construction of the underground tunnels at Chuquicamata

grade ore deposits (Chuquicamata comes in at around 0.7, with molybdenum at around 500 ppm) as long as the geology is right Going underground at Chuquicamata will give Codelco potential production of 340,000 tonnes of fine copper and more than 18,000 tonnes of fine molybdenum a year from an expected throughput of 140,000 tonnes of ore a day. During its

construction it will create a maximum 3,767 jobs. From 2019, the operation will provide work for up to 4,837 employees.

It is being designed to the highest safety standards, and will have a very positive environmental impact – by going underground Chuquicamata will reduce its dust emissions by no less than 97 percent.

Another older mine, this time an

“From 2019 and for the next 50 years after that Chuquicamata will operate as an underground mine, a change that will cost $3.8 billion” be monthly | 87

ENGINEERING-ENVIRONMENTAL

www.pochcorp.com

• Analysis and Project Evaluation

• Sustainable Development

• Engineering and Design

• Environmental Engineering and

• EPCM Projects • Implementation and Commissioning • Project Management • Procurement • Construction Management

Management • Natural Resources and Cultural Heritage • Strategies for Businesses and Communities relations • Green Building

Chile - Peru - Colombia - Brazil - Mexico - United States - Australia

CODELCO Codelco

ENGINEERING-ENVIRONMENTAL A Latin American leader in engineering, construction, project management and environmental.

POCH is a Chilean enterprise specialized in providing Engineering and Environmental consultancy services.

With more than 23 years of experience, POCH is a leading company in the South American market, with a team of over 600 professionals and experts in the developing of integral services which include Engineering, Project Management, Construction Management, Technical Inspection of Works, EPCM Projects, Environmental Management, Natural Resources and Sustainable Development, among others.

The company has participated in the development of important investment projects and services for many recognized Chilean, Latin-American and worldwide companies, in many different industries, such as Mining, Food and Beverages, Telecommunications, Infrastructure, Energy, Edification, among others.

Privately owned and with headquarters in Santiago, Chile, POCH has offices also in Peru, Colombia, Mexico, Brazil, Australia and the United States.

The company´s commitment to face new challenges and to constantly diversify its

services has allowed it to sustainably and organically grow in a 15% relation per year.

Looking forward to constantly attend the Mining industry needs, a very important economic sector in Chile and South America, the company has an experienced and professional team of experts and specialists in the fields of Engineering and Environmental services, also in all the different engineering specialties, such as civil, structural, electrical, mechanical and piping, robotics and hydraulics, among others.

In the Chilean mining industry, POCH has participated with an important number of firms mainly offering them Engineering and Environmental Services, growing step by step in the development of solutions for this industry.

In another matter, POCH has a very important commitment to develop a sustainable business and to contribute to the development of economies and communities where it develops projects and studies. The company is also a member of the Global Compact initiative of the United Nations, which brings together companies around the world to work in relation to the respect of human rights, labor, environment and anti-corruption.

E. poch@pochcorp.com www.pochcorp.com

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underground operation, is the El Teniente property that traces its origins as far back as 1819, though commercial mining has been done there since 1905. The existing mine near Rancagua south of Santiago is the world’s largest underground copper

mine containing 2,400 kilometres of tunnels and lies at an altitude of nearly two kilometres. The new mine level (NML) will involve cutting a massive two million square metre slice deeper into the mountain, accessed by two parallel

“It seems inconceivable that the demand for Chilean copper could fail to justify the massive expansion projects that are in the pipeline�

Copper production at Chuquicamata

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Codelco

Operations office at the Andina division

nine-kilometre tunnels, one for access and the other for the conveyor that will take the ore out to the concentrator site.

Between 2011 when construction started and its commissioning in 2017 the project will build 98,450 metres of tunnels and 3,454 metres of vertical ventilation shafts and transfer shafts. Most of the $3.5 billion investment will go on this underground work: surface work includes

the construction of a new, faster road from Rancagua with associated tunnels and bridges – this will make life easier for the mine’s 5,500 employees. To a great extent the new El Teniente operations will be remotely operated from a control room at Rancagua, 50 kilometres away from the mine. The NML project adds 2.02 billion tonnes of reserves, at a 0.86 percent copper grade. Codelco estimates that at over 50

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Codelco’s Radomiro Tomic division

Codelco

1,809

million tonnes Codelco’s 2011 copper production years of operation starting from the end of 2017 it could produce more than 17 million tonnes of fine copper.

In all Codelco’s current portfolio involves 30 studies and projects aimed at keeping the Chilean national mining giant in a leadership position globally, not only in terms of production numbers but also in environmental, technological and safety best practices right across the value chain. Emissions, water usage and energy conservation are all at the heart of Codelco’s strategy – however it seems inconceivable that the demand for Chilean copper could fail to justify the massive expansion projects that are in the pipeline.

The company’s recently appointed CEO Thomas Keller has been busy courting world markets and especially the Chinese market which according to Keller accounts for 40 percent of world demand an can be expected to grow between five and seven percent annually based on China’s predicted GDP growth of up to eight percent.

For more information about Codelco visit: www.codelco.com

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Meeting futu demands Rio Tinto’s mining operation in Pilbara is planning an extensive programme of expansion and modernisation, making it one of the most exciting mining developments on the planet

written by: John O’Hanlon research by: richard halfhide

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Rio Tinto Iron Ore: Pilbara Expansion Projects

ure

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T

he Pilbara’s red earth, splendid scenery and vast extent combine to create the image of Australia that has caught the imagination of generations. The top-left corner of Western Australia is home to a population that has inhabited it continuously for over 40,000 years; to them it is a very precious landscape. However, today there is another dimension to that value, because the region is rich in the most useful mineral to mankind—iron. Just as the red planet Mars owes its colour to the iron in its crust, so that element reveals itself in the rusty splendour of the Pilbara.

The Anglo-Australian Rio Tinto group leads the world when it comes to the extraction of minerals. Coal, aluminium, copper, diamonds and specialised minerals are all important divisions; however iron ore is in short supply these days and supplying the world’s steelmakers has long been a key activity for the company. It is a staggering fact that roughly 12 per cent of the iron ore consumed today comes from Rio Tinto’s Pilbara mines alone. Though there are other operators in the Pilbara, Rio Tinto’s Pilbara Blend product has a distinct market advantage: by combining the varying output from a number of individual mines, the mills can rely on receiving ore with consistent iron, silica, alumina, phosphorous and moisture content, even at short notice.

And there is no sign of this demand slackening. India and China are both growing at a phenomenal rate and those countries’ consumption of steel for cars, white goods and construction is expected to go on growing,

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Aerial view of the train as it snakes through the desert

Rio Tinto Iron Ore: Pilbara Expansion Projects

Rio Tinto Iron Ore: Pilbara Expansion Projects

Driverless trucks in action

says David Joyce, managing director of Rio while 500 million tonnes is required to satisfy expected demand growth and 200 million Tinto’s Pilbara expansion projects.

To satisfy this demand, China needs reliable tonnes in lieu of those sources that China supplies at a reasonable cost, and here the would like to replace because of their high comparatively short sea routes to Asia that cost. once made Australia feel vulnerable become Against these trading fundamentals, an advantage. Already one of the lowest expansion in the Pilbara was inevitable. The cost producers of ore products, Rio Tinto is operations in the region are already extensive, embarking upon an ambitious with 14 operating mines, project that will ramp up three shipping terminals at and streamline production the ports of Dampier and and delivery of the product.

Cape Lambert and a 1,500 Over the next seven years kilometre rail network. It is Rio Tinto believes that global a fully integrated system, iron ore supply additions for managed centrally from Rio China alone will need to find Tinto’s Operations Centre in Length of mining rail at least 100 million tonnes of Perth. The early prototype of network in the Pilbara additional supply each year, the centre was established

1,500 km

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$A1 Billion+ Value of work placed by Rio Tinto with aboriginal contractors since 2010

Driverless trucks

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in June 2005 as part of Rio Tinto’s Mine of the Future programme, and the fully fledged version now boasts more than 450 staff.

“Drawing together the control functions for the mines and the integrated logistics network made it possible for us to produce iron ore at maximum efficiency,” comments Joyce. And that, he adds, was vital to the success of the expansion project.

By 2015 the company expects to have spent more than $A18 billion on expanding the capacity of its Pilbara operations by 50 per cent to 353 million tonnes per annum. As well as mine life extension and expansion of existing mine workings it is driving technology to an extent never before conceived of in the mining industry. Earlier this year, for example, the company committed $A480 million to the introduction of driverless trains—two-anda-half kilometres long and with a payload of 24,000 tonnes.

The automated trains will be controlled from Perth, as eventually will the fleet of 150 automated trucks being developed in a joint venture with Japan’s Komatsu. It is all about increasing the capacity of the operations to achieve the 353 million tonne target without proportionally increasing headcount. Ten driverless trucks are already

Rio Tinto Iron Ore: Pilbara Expansion Projects

Loading the billionth tonne to China from Cape Lambert

working at the Yandicoogina mine in the Pilbara alongside automated rigs that can drill much more precisely than the most skilled human operator, and work faster too because they can return to work soon after blasting, without having to wait for the air to clear. “We have a clear lead on the rest of the world where iron ore mining technology is concerned,” says Joyce.

The object of automation is not just about reducing costs but also about delivering the Mine of the Future, bringing a level of productivity and repeatability that has eluded the mining industry so far, he explains. “The

Mine of the Future will demand a new breed of employee: people who can manage highly automated systems and continue to grow those systems. It is about building more efficiently controlled systems that don’t rely quite so much on human elements.”

Rio Tinto’s port facilities are the envy of the other companies working in the Pilbara.

Dampier has two ship loading terminals, one at Parker Point and the other at East Intercourse Island, and an associated blending strategy: capacity there has just been increased by a further five million tonnes, at a cost of $A234 million as part of an incremental investment

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Rio Tinto Iron Ore: Pilbara Expansion Projects

Stockpiles at the Pilbara operations

programme to enable capacity by 53 million tonnes per annum. If and when the the ports and associated infrastructure to handle 353 second (50 MTPA) expansion is approved, the jetty million tonnes. But the most ambitious port project is to the will be a further 400 Planned Pilbara capacity east at Cape Lambert, where metres out to sea and the expansion by 2015 a second 1,400-metre jetty associated infrastructure and two-berth wharf is under will be doubled. construction at a cost of more Australia’s national than $A200 million. The new Cape Lambert economy grew by 2.5 per cent over 2011, Port B development includes a tandem car outstripping the Eurozone, and according dumper facility, a stockyard including two to the State of the States report, published stackers and two bucket wheel reclaimers, by the leading Australian stockbroking a screenhouse and surge bin facility, a firm CommSec in January 2012, Western 1.4 kilometre-long access jetty and a double- Australia is well ahead of all the other states, sided iron ore wharf with two shipping berths largely thanks to its minerals, oil and gas and a shiploader. It will be in operation by the industries. This means there is plenty of work end of 2013 and will increase Cape Lambert’s for contractors in the booming Perth region,

50%

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Rio Tinto Iron Ore: Pilbara Expansion Projects

Tug pens at Intercourse Island

and securing the best of them for long-term operations in the remote Pilbara has involved some rethinking of the traditional EPCM model, says Joyce. “We have been moving towards framework agreements with our contractors, involving them at an earlier stage to improve planning and integrating them with the entire expansion programme in a way that gives them greater security and the chance to move from project to project.”

As well as reducing cost, the continuity of the framework agreements delivers a safety bonus. And standardisation of design and working methods across multiple mine expansion projects is a further way to cut the overall cost, he adds. “It is a way of putting some formality into our relations with our contractors in Western Australia.

We know the construction and contracting market in Perth needs to expand to handle

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all the work that is being done in Western Australia so these framework agreements are a mechanism to communicate with our contractors and give them confidence to go out and get the people and equipment they need to do this work over the next three or four years.”

This principle benefits local contractors as much as the big construction contractor firms like SKM and John Holland. Since the programme began in 2010 more than a billion dollars’ worth of work has been placed with aboriginal contractors, and Joyce is very proud of that. “We use a variety of models for involving aboriginal companies, of which the most effective has probably been to encourage major contractors to form joint ventures with local contractors.” That way, he says, the local firms can grow and learn by working with their national and multinational peers.

Between 2001 and 2011 Rio Tinto drilled a million metres and doubled its ore reserves in the Pilbara. It plans to drill at an even greater rate over the coming five years, and it will be able to supply its Pilbara Blend customers, at the rate of 353 million tonnes a year, until at least 2045. This is what the Mine of the Future programme is all about: introducing next-generation technologies for mining operations, contributing to better health and safety, production efficiencies and improved energy consumption and environmental benefits.

For more information about Rio Tinto Iron Ore: Pilbara Expansion Projects visit: www.riotinto.com

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Rio Tinto Iron Ore: Pilbara Expansion Projects

Powering gro ABB’s Markus John discusses the vital role the company has in bringing Rio Tinto’s iron ore expansion plans for its Pilbara project to fruition

written by: Will Daynes research by: Will Kirby

owth

ABB

A

gainst a backdrop of low, weathered mountains and the scorched desert of north Western Australia lies the Pilbara, the closest sizeable reserve of iron ore to the rapidly expanding Chinese and Indian markets. It is here amidst some of the oldest rocks found on Earth that Rio Tinto is mining some of the planet’s largest iron ore deposits.

At present, system capacity of Rio Tinto’s iron ore’s assets in the Pilbara, consisting of a network of 14 iron ore mines, rail and ports, is 230 million tonnes per annum. With an on-going multi-billion dollar expansion programme to increase production capacity to 290 mtpa in Q3 2013, Rio Tinto hopes to further increase this production to 360 mtpa by early 2015.

Playing a prominent role in this expansion project is ABB, one of the world’s leading engineering companies. ABB specialises in helping its customers to use electrical power effectively and in a sustainable way. ABB’s operations in Australia include engineering and manufacturing facilities in Perth, Brisbane, Darwin, Sydney and Melbourne, as well as a network of service centres throughout the country.

“Over the last five or more years,” explains local business unit manager for substations, Markus John, “we have evolved from being a core product supplier for Rio Tinto to a power system supplier for some of its largest and most complex undertakings in the Pilbara.” The relationship between the two companies grew significantly when Rio began embarking on a project to expand the electrical infrastructure in the Pilbara.

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“Originally a small Brisbane based unit, ABB Australia’s substation business has grown into a substantial business employing more than 50 people”

ABB substation at Rio Tinto Pilbara

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ABB “At the time,” John continues, “we developed a small number of proposals on how to improve Pilbara’s electrical network.

These were based on our expertise in electrical transmission and distribution. From here we graduated to providing comprehensive power infrastructure solutions that included turn-key substation projects from design to commissioning, service and consultancy.”

Originally a small Brisbane based unit, ABB Australia’s substation business is now based in Perth where the existing team of four people has grown into a substantial business employing more than 50 people.

In March 2012, ABB announced that it had won orders worth approximately $100 million from Rio Tinto for 17 distribution substations to support increased production at its Pilbara iron ore mines. The upgrades and installation of new power infrastructure here will help raise the voltage level of the existing distribution substations and increase the power supply in order to support the expansion of Rio Tinto’s existing mines in the region.

“Rio Tinto has a very clear goal for what they want this expansion project to achieve,” John states, “and that is to significantly expand their production levels in the coming years.

This is something they will do by not only exploring and developing new mining areas in the Pilbara area, but also expanding their existing operations.” In doing so, Rio Tinto will considerably increase their levels of electrical consumption, which will require an expansion to their existing transmission and distribution network and power generation capacity.

“Production at Rio Tinto’s mines in the Pilbara is heavily dependent upon the

Juna Downs substation

reliability of its electrical network,” John enthuses. “Naturally this makes the issue of electrical network reliability one of the foremost concerns for Rio Tinto. We are supporting them in every way we can, either by installing new substations or by retrofitting older facilities with new power and automation technology.”

At the heart of this massive undertaking is an established contractor framework agreement between ABB and Rio Tinto and, as John concludes, it is ABB’s intention to build on this in the future. “ABB remains fully committed to its operations in Australia, particularly those in Perth that support the work taking place in the Pilbara.”

For more information about ABB visit: www.abbaustralia.com.au

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East Asia Minerals

ACCESS TO

INDONESIA East Asia Minerals has come through the rapids and is now headed into smoother waters: the Vancouver based mineral exploration company has located major gold and silver deposits in Indonesia and has cleared the route to develop them

written by: John O’Hanlon research by: Jeff Abbott

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A scenic view from the mountain on the Island of Sangihe

East Asia Minerals

O

ne year can make a big difference: when Ed Rochette, accepted his current role as chairman of East Asia Minerals (EAS) his burden seemed heavy. Today it is a lot lighter. Let us recap. When Rochette came in as the chairman of the company in 2010 he was alarmed by the heavy burn rate of capital.

When he saw that $2.5 million a month was being spent and the share price had fallen dramatically he decided to take on the role of CEO and set about the task of making sense out of this fundamentally sound mining company, with its potentially world class gold deposits in Indonesia as well as some uranium and phosphate assets in Mongolia.

He stopped all drilling activities and cut staff levels by 60 percent. With the management team’s efforts thereafter focused on resolving the permitting impasse the Indonesian operations had reached, the shareholders and the market were expected to respond positively. Once he was able to reduce the monthly burn rate down to $400,000 by the end of 2011, he was able to raise $13 million in a private placement.

By the time the third quarter of 2012 had arrived things were looking up and the situation then was captured in the Business Excellence article that we published in October. Basically EAS was by then focused strongly on Indonesia, where Rochette was spending most of his time. The two main projects the company has there are located far apart from one another. One is on the small island of Sangihe at the north-eastern tip of the Indonesian archipelago in Sulawesi

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province, while the larger Miwah project is in the province of Aceh in westernmost Sumatra, the largest of Indonesia’s 17,000-odd islands.

However both projects promise to yield richly, with Sangihe currently estimated to contain nearly a million ounces of gold plus eleven million of silver and Miwah thought to have more than three million ounces of gold and almost nine million of silver. These are truly potential world class deposits even without taking their considerable development upside potential into consideration.

Through the efforts of the strengthened management team that Rochette has brought on, work at Sangihe has been progressing smoothly, with a 4,600 metre drilling programme that started in late 2012, bang on Rochette’s predicted schedule and directed towards increasing the inferred reserve.

“Look out for the preliminary results from that drilling programme,” he advises. “We will be announcing those during the last week in February.” The work is being carried out under the eye of Frank Rocca, appointed VP of Exploration in September 2012 and a key member of the strong team now being built.

That team will be further cemented shortly with the appointment of a new COO to replace Dave Anthony, whose move to the Board of Directors was announced at Christmas.

Miwah presented more problems, as we noted last year. While Sangihe has been permitted under Indonesia’s pre-2009 Contract of Work (CoW) system with a 27year licence, the work at Miwah is governed by an eight-year exploration IUP, the local licensing format that was adopted by the government more recently.

The IUPs at Miwah were due to expire at the end of 2012. Had it not been possible

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East Asia Minerals

Local ship transporting relief supplies to earthquake victims across Sangihe Harbour

to renew them there would when it comes to securing be a danger not only that operating licences and the concession would revert negotiating terms. Even so, to the government but that had he not had the invaluable support of his management all of the data and IP that Current drilling team coupled with the local had been accrued would programme at Sangihe partner, the strategic advisors be forfeit. Closer spaced drilling is needed to confirm and the officials in Aceh, the the findings and upgrade the resource from result might have been different. ‘inferred’ to ‘indicated’. Additionally, Miwah There was cause for celebration when on is what is called an ‘open’ resource which 8 January 2013 EAS was able to announce means that drilling outside the area already that it had obtained agreements, signed by the explored could add significantly to the ore elected Bupati, or Regent of Pidie confirming body that has already been defined. his verbal assent to renewing the licences for It was a delicate situation, and retaining the an additional two years until 30 November, good will of the authorities at all levels was 2014. “This signed extension was the result crucial. Fortunately Ed Rochette is a lawyer of a sustained effort by the Company over with one of the best records in the industry the past year,” said Rochette. “The tenure

4,600m

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“I am a great believer in making the local people ambassadors for the company right from the start” issues at Miwah are now behind us. We can immediately re-start our exploration programme for the project and our team can move forward to seek removal of the surface use restrictions imposed by the Ministry of Forestry.”

The deforestation of Indonesia, which since 1900 has lost millions of hectares of some of the world’s most diverse rain forest in the world, is a matter of global importance.

A collection of recent core smaples

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However the main threat has been the paper and pulp industry, plantation agriculture and logging. The strict regulations that have been rightly introduced are aimed at saving the remaining trees and wildlife habitat for posterity. But mining has a light footprint compared with other industries: drilling requires very few trees to be removed and any mining project comes with a robust rehabilitation plan. Compared to the palm oil

East Asia Minerals

EAS management team at ceremony for donation of supplies for earthquake victims. (Left to right) Mike McAllister-Manager IR, Dave Anthony-Chief Operating Officer, Edward Rochette-Chairman & CEO

plantations that change the landscape for all time, mining is environmentally sustainable.

Nevertheless permission for any surface disturbance activity in the areas classified as “protected forest” has to be obtained from the Ministry of Forestry, and this process can easily take two years. Ed Rochette is sympathetic with the principles behind the regulations, however it is as much in the Indonesian government’s interest to facilitate the development of a major gold mine as of any of EAS’s other stakeholders involved with the project. “We believe we may have been able to identify a way forward, working with the government officials, that will bring the

time-scale well below six months,” he says diplomatically. “The new drilling programme, which has already started in areas without surface restrictions, will confirm the viability of this project, and it should also demonstrate significant extension to the resource.”

As well as contributing positively to Indonesia’s GDP, EAS’s activities will benefit local communities. “I am a great believer in making the local people ambassadors for the company right from the start,” he says. “If you get them on your side before something happens or someone organises a protest it is a lot better than having to make amends after the event.” This is an extension of the

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Core sample detail from 120m

East Asia Minerals person-to-person principle that was crucial in resolving the tenure problems and is well illustrated at Sangihe where at Christmas 300 children and their parents were given a dinner hosted by EAS, the first time any overseas company has done this on that island.

Now a clean water scheme has been initiated for villagers living near the operation, and 42 local jobs have been created. Already 500 bags of cement have been given to villagers to help them repair houses damaged in a recent earthquake. Equipment has been purchased for the local medical clinic; sports equipment has been obtained for the local team; fertiliser has been purchased and distributed for local farmers; and other community engagement projects are currently being implemented which are geared towards local content objectives. Miwah will benefit in a similar way as the project matures.

East Asia Minerals is no longer a turnaround case, but a lean company, well organised and financed, with an aggressive exploration, acquisition and growth strategy. Monthly expenditure has been maintained at around $400,000, and the company had $10 million in the bank at the end of last year. Above all, it has achieved 90 percent of the goals that Ed Rochette set out for himself and East Asia Minerals just a year ago. The next challenge is “to grow the company�, a goal that the management team, along with its strategic advisors, are currently working on.

For more information about East Asia Minerals visit: www.eaminerals.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

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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

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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.

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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 monthly | 135

“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

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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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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

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“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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AFRICAN MINERALS

The first ore shipment left the Sierra Leone’s p enterprise that will not only be a major resour 21st century but will help to underpin Sierra

written by: Jo research by: Ro 148 | be monthly

African Minerals

MINERALS STRIKES IRON

port of Pepel in 2011, marking the start of an rce for the global steel industry throughout the a Leone’s economy through its reconstruction

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Workers carrying out maintenance

African Minerals

A

frican Minerals (AML) started still defining and extending the deposit as life in 1996 as the Sierra construction went ahead, though the risk was Leone Diamond Company, small, with the quality and quantity of the 12 focused on Sierra Leone’s billion ton deposit already well understood. deposits of alluvial diamonds.

Since Tonkolili is located 200 kilometres In 2005 it raised £20 million on London’s inland secure rail and port facilities were AIM market and three years later confirmed as important as the mine itself. Back in its Tonkolili magnetite resource in Sierra November 2008 AML had secured a 99 year Leone’s Northern Province. lease on the rail and port infrastructure Financing the Tonkolili project and fast surrounding the project. Fortunately, there tracking it to production was a priority was some pre-existing infrastructure from a and the company set about raising funds. previous mine operation which enabled the Through 2010 and early 2011 it raised company to fast-track the development of the over $1.1 billion to fully fund Phase I port operation at Pepel, as well as the first 74 development of the project, kilometres of the railway— which went into production essentially a rehabilitation of in late 2011. In March 2012 what had previously existed. the Company completed Currently ore from Tonkolili a landmark $1.5 billion is shipped out of Pepel port, which has limited draft but is transaction with Shandong Iron and Steel Group (SISG) the principal iron ore port for in return for a 25 percent Sierra Leone currently.

Size of JORC shareholding in the Tonkolili Originally the plan was compliant resource project companies. The SISG to upgrade the nearby port transaction is the largest of Tagrin as a deepwater ever foreign investment in Sierra Leone and facility that could cope with the vastly the largest single investment by a Chinese increased volumes expected in Phase II and state-owned enterprise in Africa: as part of beyond but in December 2012 the company the deal SISG secured a proportion of the ore announced its intention to abandon the from the mine under an offtake agreement. Tagrin development, which would involve The company chose not to follow the construction of a new rail spur as well, usual timeline of carrying out the initial and continue to use Pepel, upgrading the scoping study, definitive engineering study infrastructure there instead. and bankable feasibility study before seeking As CEO Keith Calder commented: “We funding, commencing construction, and have made good progress with value starting up operations. Many of the normal engineering and optimisation in our processes were tackled simultaneously Tonkolili mine expansion strategy. While rather than sequentially. The company was our strategy regarding the mine and

12 Billion tons

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Excellence in Engineering Infrastructure • Construction, maintenance and upgrading of railway track systems • Provision of mechanised on-track plant and machinery • Flash butt and thermit welding of rails • Ultrasonic testing of rail welds • Gantry, stacker reclaimer and ship loader trackwork • On-track survey and alighment using customised trolley tracks • Crane tracks, for the building and manufacturing sectors

• Railway siding design and construction • Railway material refurbishment and sales • Overhead traction equipment (OHTE) electrification • Trackwork encased in concrete • Track-related civil and ancillary works • Management of industrial rail networks • Manufacture of rail-related precast concrete items • Providing clients with turnkey solutions.

Tel no: + 27 (11) 845 5300 / +27 (21) 531 7540 Email: info@racec.co.za | www.racec.co.za

NEW PRECIOUS RESOURCE DISCOVERED

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

African Minerals

Trucks crossing on the pit ramp

plant is mostly unchanged, we have now decided to leverage our existing rail and port infrastructure at Pepel to achieve the expanded export tonnage. This will significantly reduce capital costs, and de-risk the project’s delivery, whilst at the same time reducing social and environmental impacts. This approach will provide a significantly better value, capital

efficiency and risk proposition for all of our stakeholders.”

Phase II will see the product change from 20 million Tons per annum (tpa) of straight ore (known as direct shipping ore) to concentrate from Tonkolili’s saprolite haematite reserves at an estimated rate of 35 million tpa, and now that shipping will remain at Pepel the estimated cost of the total expansion plan

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“Tonkolili will play a significant part in Sierra Leone’s reconstruction and onward economic development” has come down by a third to $2 billion, with reduced risk and lower environmental and social impact, says AML. So many discoveries have been made in the region that people in the industry are beginning to call West Africa the new Pilbara, after the massive iron ore fields in Western Australia. Certainly it promises to

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provide a viable alternative for the Chinese steel manufacturers, whose demand for iron ore cannot be satisfied by present day world resources. Tonkolili, with enough resources to last to the end of this century, will play a significant part in making this happen, and is clearly vital to Sierra Leone’s reconstruction and onward economic development. This

African Minerals

Reclaimer at work

project alone is expected to double the county’s GDP once Phase II is under way in 2016.

A major employer, taking direct and subcontract labour into consideration, AML is committed to replacing expatriates with local personnel. This means promoting local people to supervisor roles as soon as their skills are sufficiently developed. It creates a culture of job progression, lower turnover of staff and the understanding that mining is a career choice that makes sense in a country where jobs in the sector are certain to increase.

For those in the community who don’t plan to make a career in mining, however, AML’s innovative business incubator programme helps them benefit from the presence of the

mine. Not content with arm’s length, AML is physically going into the local communities and carrying out skills assessments to identify what skills already exist there and how entrepreneurship could be encouraged.

12 small businesses are now in the scheme, around 80 percent of them food suppliers providing fruit, vegetables and rice to the various sites within the project. In addition, the company has supported tailoring and brickmaking businesses.

For more information about African Minerals visit: www.african-minerals.com

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Test

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Set Point Group

ting, testing CEO Graeme Horsfield talks about a diversified business, expanding its analytical expertise across Africa and beyond

written by: martin ashcroft research by: marcus lewis

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Set Point Group

S

The Group comprises of three Analytical Divisions

et Point Group is a South African company, comprising seven distinct businesses serving mainly the mining industry and a few unrelated sectors.

It’s an interesting mix, with a rather unusual genesis.

In 1998 the company was formed on the Johannesburg Stock Exchange as an analytical business called Set Point Technology Holdings Ltd. Stock was listed at one rand per share, but shot up to seven rand almost overnight, recalls CEO Graeme Horsfield. “The business was actually analysing air purity and underground gases in the mining industry,” he says, “but because of the name and the IT boom at the time, many people thought it to be an IT company so they all piled in and pushed the share price up. The business became greatly diversified when the then directors bought several companies that had no synergy between them.”

In 2001 the company brought in new management to restructure the business and Horsfield formed part of the team. There’s certainly more synergy in the business now, and although he doesn’t pretend that all seven businesses fit together snugly, they do at least fall into three broad categories— analytical services, fluid handling and mining services.

On the analytical side, the flagship business is WearCheck, an international brand that carries out oil and fuel analysis for condition monitoring of heavy mining machinery. “These mining machines are worth tens of millions of Rands each and

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Oil and fuel analysis laboratory

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carry hundreds of tons of rock and ore at each pass,” says Horsfield, “and are often run 24 hours a day. They have the oil tested every 250 hours or so depending on the component WearCheck analyses the oil and lets the mines know if it needs to be changed or if there’s any component wear and tear or if a problem is beginning to develop that could be prevented.”

The cost of the analysis is far cheaper than replacing the oil or repairing the machine should it fail, never mind the cost of the downtime associated with any failure, which could run into millions of rand.

WearCheck is an international brand name, almost akin to a franchise, but not quite. “There are a handful of companies around the world with the WearCheck label,” explains Horsfield, “but there’s no financial link between them, although, we do work closely wih one another, sharing expertise and offering companies a global oil analysis programme. It is however a gentleman’s agreement as to who has the right to open up WearCheck businesses in certain areas, and Set Point has the rights for Africa, the Middle East and India.”

WearCheck has several laboratories and offices in South Africa, but has also opened businesses in Botswana, Zambia, and Ghana, as well as in Chennai in India, and Dubai in the Middle East. “We are dominant in the market in South Africa,” says Horsfield, “and worldwide, we analyse more samples than any other WearCheck operation.”

Also on the analytical side is Set Point

Set Point Group

Oil analysis on haul trucks

Laboratories, which does assaying of minerals for the mining industry. The major laboratory is in Johannesburg, but others have been opened in Northern Cape and Botswana, and one will open soon in Mozambique. Set Point Laboratories have specific expertise and experience to establish and operate full on-site lab facilities specific to client’s requirements.

These labs can be housed in fixed buildings

or in containerised units that allow easy transportation to remote sites. In addition, SPL has experience in establishing “underground sample preparation facilities” which provides huge logistical benefits for analysis of mine samples.

The third of the analytical companies is African Mineral Standards or AMIS, which makes certified reference materials—which are basically control samples to verify the

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accuracy of the analytical equipment.

“Most analytical laboratories are faced with the challenge of determining the accuracy of their XRF and ICP machines,” says Horsfield. “They don’t know how accurate the machines are because the results they get vary from the samples they get from the mines. So what we do is develop a model answer.

“We collect rock from various parts of the world and crush it into a fine powder.

This is sent to thirty laboratories around the world to analyse it and tell us what’s in the powder. We get the thirty results and then do a mean average and an almost model answer of what should be in that powder.

Results are then sent to a renowned professor in Canada who checks the accuracy of the mean averaging, and signs a certificate off. This then becomes a certified sample.”

Mining laboratories around the world use these samples to check that they get the correct model answer from their machines.

If they do, then their other samples can be relied upon to be accurate, too. “We are proud to have developed African Mineral Standards into the second largest standards supplier in the world.”

Set Point also has three operations in its fluid handling divisions—the Letaba Group,

Pneumax and Meter Systems. Letaba imports pumps and supplies them predominantly to the mining industry but also to food and chemical plants. It is also known for its impressive fleet of dewatering pumps, which are available for hire 24/7/365.

“Then we have Pneumax which supplies pneumatic equipment such as components for pneumatic automation, actuators, valves, fittings and tubing, deceleration

“WearCheck analyses the oil and lets the mines know if it needs to be changed or if there’s any engine or gearbox wear and tear” 162 | be monthly

Set Point Group

Above: Flow meter. Below: Imperial mine cylinder

Matrix matched reference materials

and vibration technology which can be used in virtually any industry or application,” says Horsfield. Pneumax is also committed to industry skills development programmes and offers various pneumatic training courses. Meter Systems supplies lubrication and garage equipment to the fuel and oil industries, including flow meters, nozzles, hoses, dispensers, loading arms, pumps and a myriad of complementary products and accessories.

Set Point’s mining section, acquired in 2005, is the one that stands alone. The two companies NW GoPro and RENG, manufacture and repair

locomotive and hopper wheels, as well as skip guide rollers for the mining industry. “It’s the only manufacturing business we have in the stable, so of all the companies in the group, it has the biggest labour force.”

Being a diverse organisation is challenging but it also has benefits, says Horsfield. If one sector suffers from a shrinking market, others can pick up the slack.

The disadvantage is that the skills required to manage the individual businesses are not easily transferrable.

“We have seven highly skilled MDs,” he says, “so we have to have a very strong succession plan in place, especially on the

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GoPro manufactures a range of loco wheels and skip guide rollers

Some of the brands avail

“We have developed our own training school in Johannesburg, and we are one of a few companies accredited by the Department of Labour” analytical side. These guys have Masters in chemistry and science. You don’t just pick them up off the street. We constantly have to train middle management to be able to step into top management shoes.

General distribution is relatively easy for a commercial guy but in the three analytical businesses it’s tough because you can’t take, for example, a laboratory manager from

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one of our analytical divisions and ask them to run another – since the scope of work varies significantly.”

There are challenges also in expanding across Africa, not least in being careful which countries you choose. “We often have to join up with local management in terms of the rules of the country regarding ownership, and finding the right partner is

Set Point Group

lable from Letaba Pumps

not always easy. It takes a good six months for our business development people to do a full analysis of the business environment.”

Zimbabwe, for instance is one country Set Point has avoided, because of its indigenisation policies.

It’s not easy attracting skilled workers into the analytical side of the business, either, says Horsfield. “We have developed our own training school in Johannesburg, and we are one of a few companies accredited by the Department of Labour. We train people from the African sub-continent and send them back to their own countries to run their own laboratories.”

Science graduates are keen to work in DNA analysis or biochemistry, he says.

GoPro’s locomotive wheels

Analytical work is not sexy enough for some of them today. “So we’ve had to make it pretty sexy for them in terms of the company culture and opportunities to get into management. We’ve been running a mentorship program for about three years now where we identify people with talent and do our best to inspire them to greater things for themselves and the company. It’s been a boon for us in terms of retaining those people and developing them into a different level of management.”

For more information about Set Point Group visit: www.setpoint.co.za

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Jindal Africa

A land of Jindal Africa has been tasked by its parent company, Jindal Steel and Power Limited (JSPL), with harnessing the immense potential that Africa has to offer

opportunity written by: Will Daynes research by: Jon Bradley

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CIC Energy’s planned Coalto-Hydrocarbons (CTH) Project intends to convert coal to low sulphur diesel fuel and associated products

Jindal Africa

S

eeing as Africa produces more than 60 different metal and mineral products, and is a major source of several of the world’s most important commodities, it is little wonder that it remains an area of profound interest for mining companies.

While exploration and mining developments across the continent have undoubtedly increased in recent decades, there is still considerable scope for expansion.

One company that has been making waves across Africa over the last several years is the multinational conglomerate, Jindal Steel and Power Limited (JSPL), a leading figure in the steel, power, mining, coal to liquid, oil and gas, and infrastructure sectors. Recognising that Africa is indeed endowed with great mineral wealth, as well as a nation of warm, hardworking and committed people, JSPL established Jindal Africa in 2008, with its remit being to discover minerals primarily for JSPL’s steel production in India.

“Our African operations,” explains chief executive officer of African Business Ventures, Ashish Kumar, “span across South Africa, Mozambique, Botswana, Zambia, Namibia, Tanzania and Madagascar, and provide direct and contract-based employment for approximately 2500 people.”

Today, Jindal Africa is working diligently to expand its footprint across the continent.

Its headquarters is based in Johannesburg and it is from here that it overseas the businesses’ regional operations and on-going expansion plans. Its operational activities in the country include the Kiepersol Colliery, outside the town of Piet Retief

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RRL GRINDROD RRL Grindrod Locomotives is proud to be associated with Jindal Steel and Power Limitada Mozambique (“JSPL”).

In Partnership with JSPL, RRL Grindrod will be managing the rail logistic solution for the open cast mining project at Chirodzi.

Our involvement in the project includes the manufacture, maintenance and operation of the locomotives freighting coal on the Sena Line to the port of Beira.

About RRL Grindrod RRL Grindrod is a diversified rail and logistics company which aims to provide rail engineering and operations solutions for customers across the African continent.

Our main service offerings are: Locomotive and wagon manufacture which includes design, manufacture and sale of rolling stock, rolling stock refurbishment, locomotive leasing and wagon maintenance.

Rail operations services include train crewing, driver training and management, rail siding and cargo management.

Our clients vary from mainline rail operators requiring long haul traction to large and medium-sized mining operations with a need for short haul, branch line or shunting services. We have a growing footprint on the continent with existing operations in several African countries including Congo Brazzaville, Democratic Republic of Congo, Mozambique, Sierra Leone and South Africa.

As a part of the wider Grindrod Group the company is committed to providing customers with a seamless pit-to-port rail solution to freight bulk cargo in the region.

We look forward to a lasting partnership with JSPL as we continue to keep rail freight moving!! www.rrlgrindrod.co.za

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Arlona Engineering, which is based at the Durban Harbour, is one of the leading designers and manufacturers of bulk handling and lifting equipment in Southern Africa.

The company, with extensive experience in the design and manufacture of innovative handling equipment, has the expertise and machinery to manufacture equipment according to stringent specifications. This design and manufacturing service is enhanced by a specialised proofloading facility for lifting equipment. www.arlona.co.za

Jindal Africa

Jindal Africa hopes to develop Zambia’s copper resources

international companies to mine the rich hand, represents Jindal Africa’s foray Moatize region in the Cahora Basa district into the copper industry, where it is in of Tete province. the process of exploring and developing Further afield, the company has plans to greenfield copper concessions. Jindal Africa establish a cement plant in Madagascar that hopes to play a pivotal role in developing will be supplied by its own Zambia’s copper resources limestone mines. Meanwhile, and downstream facilities.

Jindal Africa is involved “In the past twelve in extensive coal, copper months,” Kumar continues, and iron ore exploration “we have made significant activities in Tanzania and investments that we feel has been granted a license will quickly bring added The year that Jindal to mine copper. value and growth to the Africa was established Zambia, on the other business. The first of these

2008

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Road construction doesn’t have to be as costly, time-consuming and complicated as you think.

Global Civil Solutions provides innovative, leading edge road construction technology to the Mining industry. The company is a proud supplier to the Jindal Group with a list of clients that include Jindal Mining, Anglo Platinum, Impala Platinum and Australia based Stonewall Mining.

Recent projects include the design and construction of the main access haul road to the Jindal Mine at the Piet Retief Colliery using a natural soil stabiliser (J.G.R.S) which was speciďŹ cally designed to handle Heavy Haul Loads. International projects include a joint venture with Jindal Group in India to complete a state of the art road stabilisation development with the product manufactured locally at the Jindal Raigarh Plant and used extensively throughout the Indian Sub-Continent.

For more information contact Andy Shand on +27 83 442 8924 email andy@globalgroups.org or visit www.globalcivils.com

Jindal Africa is the development of our Global Civil Solutions Mozambique operations.

Global Civil Solutions is a construction company specialising Here we have invested in the field of environmentally driven engineering. The considerable capital in both company provides leading edge road construction technology infrastructure projects and to the Mining Industry and has developed specialist soil in our people, and this stabilisers as fast, cost-effective methods for road and rail is already starting to construction. Global Civil Solutions is headed up by Andy Shand who has extensive experience in the construction produce results.” and project management industry, having successfully A not he r i mp or t a nt managed projects ranging from highway construction, mining development for t he construction, resort hotel construction to infrastructure company was the recent development, waste water treatment and water purification. acquisition of the BotswanaClients include the Jindal Group, Anglo Platinum, Impala based Canadian company, Platinum and Australia based Stonewall Mining.

CIC Energy, for $116 million. elschke@globalgroups.org This purchase highlights Jindal’s plans to tap into the power business in southern Africa.

These plans that see the organisation invest up to $700 million in Botswana over the next three years.

“Beyond these developments,” Kumar highlights, “we have also acquired a number of greenfield exploration projects in South Africa and Namibia where we are now in the process of conducting several extensive drilling campaigns.”

Throughout the seven countries in which it is present, Jindal Africa strives

“Jindal plans to invest up to $700 million in Botswana over the next three years”

Coal train on the move from the Kiepersol mine

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INGWENYAname MINERAL PROCESSING COmpany Ingwenya Mineral Processing (Pty) Ltd Ehendanis de dollam, sit lacerum nobiscienis (IMP)fugit, is a South African ownedquaerfercium company eium ipicilluptae nonsed baseddolorem in Mpumalanga Province, withdus itseatis fugit audiciissit auta vendi headtem office Witbank in South quo asitinlanis doloribust ulpaAfrica. cumquun The company was incorporated in the latter tiberitatio.

Nam quam laboremquas half of 2006,officat and was formedfacepel to service the accuscietur, iaessum iquisqu mining industry in the ofde design, build atusdae pratiis sed estfields dicatis eossitiunt and install (processing facilities), as well as renimpo rerernam idusdam ex et fugia contractvoluptis mineralmagnis processing and nullatio enihil(operate moste nobis maintain),utand services, with magnam ius consulting sunt quia voloria volupta specific focus on the coal nonserferia voluptatem asindustry. dendand aestio IMP takes account of specialised industry idebis sandias nostisqui cus solupit volore requirements in providing mineral processing volorio nectorum in ea porum facerrum inum expertiseuttolavarious clientssit, foracia the int. benefit of inctiunt, at expeditia all stakeholders. company recognises ad que nos andusThe dolor re nimus aliquo int the requirements theeribear mining iaesed chartermod and vollut re doloritas of velit,

has a BEEsimus, shareholding component 45 enditiate quid ut abore saero of endi percent as wellvolore as board cust volenihici mi, representation. voluptatem ex For imus Jindalrem Africa we have designed est si assit prae proudly conem cumquia and installed a 200tph coal processing tiisima sandionsequi dellam, volupidio molor plant capable of producing tons reptur, nam quam que aliant120,000 utas imus per month a fourquam shiftvolupis basis, and capable aliquunt teon voloria sitaquae of modification in future increase the nobis pro modipsundi quotobea voluptam. capacity by the addition of extramolor modules. sandionsequi dellam, volupidio reptur, This plant located Kiepersol Colliery in nam quam isque aliantatutas imus aliquunt Piet Retiefquam and isvolupis designed to treat 50mm te voloria sitaquae nobis pro nominal top quo size.bea IMPvoluptam is also responsible modipsundi eos eos. for the operation dellam, and maintenance of thisreptur, coal sandionsequi volupidio molor processing facility. nam quam que aliant utas imus aliquunt. info@ingwenyamp.co.za E. xxxxxx@xxxxxxxx.com www.ingwenyamp.co.za www.xxxxxxxxxxxxx.com

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NEW PRECIOUS RESOURCE DISCOVERED

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

Jindal Africa

Jindal Africa’s philosophy is to build strong and long-term relations with communities

Group is so well regarded that it is the dream of many simply to work for the organisation.

What we want to do is recreate that same level of passion here in Africa. Yes we may be a relatively new company in the grade scheme of things, but we already believe that we have the tools needed to make this a very special place to work.”

As well as wanting to cater for today’s workforce, the company is also taking significant steps to nurture its next generation of employees. It is doing so by awarding specific scholarships to some of the most promising young individuals on the continent and providing them with the opportunity to study for a four year

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Jindal are undertaking greenfield and brownfield projects

Jindal Africa

$166 million The price paid to acquire CIC Energy degree in India. Once that time has passed they will then be able to return to Africa and apply the knowledge and skills they have gained abroad, as well as have the opportunity to work in one of the Jindal Africa operations.

Africa represents a source of immense opportunity for JSPL, particularly when it comes to mining, and it is because of its growth, rapid development and possession of a culture that is not dissimilar to that of India that JSPL is very confident when it comes to tapping into the continents’ potential.

“At present,” Kumar concludes, “we are undertaking exploration and greenfield and brownfield projects, with our focus also beginning to turn towards important infrastructure projects. Thus it is clear that as a company we are very positive about what Africa has to offer. By harnessing its potential correctly there is no reason why we can’t reach a point where at least 20 percent of JSPL’s total group revenues come from Africa in the not too distant future.”

For more information about Jindal Africa visit: www.jindalafrica.com

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Canada Fluorspar Inc (CFI)

A most exciting

prospect The release of a Preliminary Feasibility Study of its St Lawrence fluorspar project in Newfoundland has provided Canada Fluorspar Inc (CFI) with even greater cause for optimism as it vies to become a major player in what is fast becoming a hugely important market

written by: Will Daynes research by: Marcus Lewis

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View of the facilities

Canada Fluorspar Inc (CFI)

W

ednesday 30th January 2013 was a particularly significant date for Canada Fluorspar Inc (CFI). It was on this day that the company proudly announced the results of a newly completed Preliminary Feasibility Study (PFS) for its St Lawrence fluorspar project in Newfoundland.

Historically used in aluminium production, protective clothing containing Kevlar, Teflon for non-stick frying pans, and refrigerants and air conditioning, fluorspar is a halide mineral of increasing importance, specifically when it comes to new manufacturing technologies.

In the last decade the fluorspar sector has become largely vertically integrated as more major chemical companies have sought to secure supply. While not by any means a scarce resource, fluorspar projects of significant scale do remain rare, and as China continues to reduce its exports and cut supply as consumption in China continues to grow, the rest of the world is increasingly being forced to develop limited new fluorspar resources.

An essential component in lithium batteries, fluorspar currently has a global consumption rate of over six million tonnes a year, a figure that is predicted to increase rapidly to over seven million tonnes by 2015, as the market for smart phones and tablet PCs continues to expand unabated.

CFI has formed a 50/50 partnership called Newspar with French chemical giant Arkema Inc. Together they own the mineral rights to the extensive St Lawrence fluorspar veins next to the town of St Lawrence, one

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kilometre from the Atlantic Ocean. It is here that the company benefits from the existence of substantial infrastructure, including access to the provincial power grid, a mill, tailings pond and a range of buildings.

Prepared by independent engineering firm Roscoe Postle, the PFS conducted on the St Lawrence project is based on updated capital and operating costs, as well as the existing resource estimate. Taking these figures into account, the PFS estimates that CFI is looking at a 131,000 tonnes per annum fluorspar production, which is an increase from its previous estimate of 122,000 tonnes per annum.

“The results of this PFS,” states President and Chief Executive Officer, Lindsay Gorrill, “highlight the economics of the project, which combined with the size, quality, logistical and infrastructure advantages make this a hugely significant fluorspar asset. In addition to this, we are bullish on the long term demand of fluorspar as world consumption continues to grow.”

The PFS base case pre-tax NPV is $124 million, while the pre-tax IRR is set at 16.4 percent, assuming a 5.0 percent discount rate.

The capital costs associated with the preproduction phase are estimated to be $154 million with on-going capital costs expected

to be $72.5 million, which will be paid from cash flow generated by the project.

The base case has been constructed under the assumption that the long term price of fluorspar will average around $500 per tonne. This prediction is supported by long-term demand estimates and the relatively stable prices that the mineral enjoys compared to others.

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Canada Fluorspar Inc (CFI)

Core samples from the drilling programme

The PFS proposes that for the ore body geometry of CFI’s assets as it is believed initial production from the Blue Beach North mine will to provide the safest, more provide the first six-and-aefficient and cost effective half years of production, method of extraction. The Estimated lifespan followed by an additional actual processing operation of the project seven-and-a-half years of will initially require the production from the Tarefare upgrading of the mill feed No. 2 mine. via a dense media separation The run of mine (ROM) production over plant, followed by grinding and floatation, the mine life is anticipated to average around to produce a high quality concentrate. The 386,000 tonnes per annum of ore, 412,000 company will benefit from the significant cost at Blue Beach and 365,000 at Tarefare, advantage of being within close proximity providing an average concentrate production to tide water less than two kilometres away of 131,000 tonnes per annum. from the mill site.

In developing the PFS it was decided that the Given the size of the resource estimate, Alimak mining method would be the suitable the project is expected to have a mine life of

14 years

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Flotation reagent area, upstairs

“Based on the positive results that CFI has received, it now begins work on its 2013 drilling programme with renewed optimism” approximately 14 years, however there are significant resources in addition to currently defined mineral reserves which will provide the opportunity to extend the mine life further still.

In addition to the PFS, as previously announced, an additional review is currently being undertaken by Newspar, in order to

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establish a more precise understanding of the St Lawrence project’s anticipated cost and scope. That review process is considering of a range of mining, milling and infrastructure options that may be applicable to the project. As a result, no final decision on the project’s cost and scope has been made as of yet, nor will it be made

Canada Fluorspar Inc (CFI)

Flotation area

until such time that the review process has been completed in full.

Following on from the positive results the company collected from the samples it took from one of its trenches within the Director Vein of the St Lawrence project during the early part of 2012, results that revealed CFI was standing on top of a 90.7 percent fluorspar vein measuring approximately 9.4 metres in width, it carried out surface trenching of the vein during its 2012 exploration programme.

At press time, this had led to the uncovering of fluorspar mineralisation at eight locations.

The trenches are located over an area that extends more than 1,050 metres to the south of the old workings of the Director

Vein, and indicate surface mineralisation with widths varying from 3.4 metres to a massive 23 metres.

Based on the positive results that CFI has received from both its PFS and from its surface trenching operations, it now begins work on its 2013 drilling programme on the southern extension of the Director Vein with renewed optimism and an even greater sense of excitement for what the years ahead will hold.

For more information about Canada Fluorspar Inc (CFI) visit: www.canadafluorspar.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

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Eti Bakir

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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

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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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Seen

Contact us today and put your company in the spotlight!

vincent@bus-ex.com 204 | be monthly

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

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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

C 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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SmartMag, Connecting Boreholes

No-Mag

Probe

Mud Motor Mag Sub SmartMag ranging system, developed by IET, can pinpoint spatial position of the drilling bit and guide it to the target with high precision. It can be used for guidance in borehole solution mining, CBM development, SAGD, etc. Its application in the Beypazari, Turkey trona solution mining project has led to such advantages as improved ore intersection, reduced drilling cost, less site footing.

Tel. +86 4000989518 | Mobile: +86 139 0316 8821 | www.cniet.com | www.julikeji.com.cn

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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

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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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Working in perfect harm Bridget Linzie talks about how harmonising policies and regulations across the region can stimulate investment and growth

written by: Gay Sutton research by: David Brogan

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CRASA

mony

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CRASA’s remit has been expanded to include the Postal sector

CRASA

O

ne of the cornerstones of social and economic development in today’s competitive global marketplace is collaboration. In 1997 the national ICT regulators in the Southern African Development Community (SADC) came together to form a joint body, the Communication Regulator’s Association of Southern Africa (CRASA), whose remit was to facilitate harmonisation of regulatory frameworks across the region, for the benefit of SADC Citizens.

Today, CRASA’s remit has been expanded to include the closely related Postal sector, following a merger in June 2011 with the postal regulators’ association, Southern Africa Postal Regulatory Association (SAPRA).

“There are huge opportunities in the SADC countries for investment and growth in the ICT and postal sectors,” explained CRASA Acting Executive Secretary, Bridget Linzie.

“By harmonising the regulatory environment across the region we hope to make it much more attractive for investors to enter and operate in any of the SADC countries and therefore accelerate the region’s social and economic growth.”

While CRASA has its headquarters in Botswana, 13 of the 15 countries in the SADC are active members, namely Angola, Botswana, the Democratic Republic of Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe. “Our strength as an organisation is that we are one of the implementing agency of SADC. We were created under the Protocol of Transport,

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Communications and Meteorology, so to digital technology, both in terms of we have strong links Ministerial Annual fibre telecommunications networks and Meetings and have influence on the broadcasting technology. development of policies and regulations for “We have made significant progress from the ICT and Postal sectors. Advocacy is one this perspective,” said Linzie. “We now have of our core strategies for ensuring the region six submarine cables coming to the region reach consensus,” she said. providing adequate international bandwidth CRASA liaises with other regional and for global communications. The current international organisations in Africa, status of ICTs in the region shows that one of the main problems is Europe, America and Asia and benchmark its activities that although most of the to ensure that it is advising underlying infrastructure is the SADC regulators on the in place, it is not efficiently latest technologies and best used. Landlocked SADC practice. Currently one of Member States still pay more The year that CRASA to get to the coast or to the its primary objectives is was established rest of Africa than they do to support the migration

1997

CRASA are making significant progress in the switch to digital technology

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CRASA

“CRASA benchmarks its activities to ensure that it is advising the SADC regulators on the latest technologies and best practice” to get from the coast to Europe, the US or Asia”. CRASA, therefore, is looking at how the region can address the issue of ensuring cost effective access to the submarine cables especially for the landlocked countries.

Another major issue in the SADC region is that roaming tariffs for mobile telecommunications are still unacceptably high, even though the mobile operators in the region have initiatives to reduce the tariffs.

“If we are to open up this region to trade, we are going to need cost based roaming prices.

So we are currently exploring on how we can work further with the operators, regulators and government officials to agree on a mechanism for reducing the roaming tariffs to the benefits of our citizens and visitors,” she commented.

From the broadcasting perspective, CRASA is collaborating with all its member states to help promote the migration to digital broadcasting technology. As part of the initial decision making process, ministers have recently debated whether the region should base its technology on American, Japanese, Brazilian or European standards, and have decided on the European model.

Even though the initial target of the switch off date for the region of 31 December 2013 is not likely to be met, CRASA is working

with the SADC Secretariat and governments to ensure the foundations for the switch are harmonised, and that all countries will be able to complete the migration by the internationally recognised deadline of June 2015.

This past year CRASA has had the additional challenge of integrating the needs of postal sector regulators into its organisational

Bridget Linzie, Acting Executive Secretary, CRASA

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structure and operational strategy. “Because the subject is new to us, most of our activities and achievements so far have been on the topic of ICT,” said Linzie. “However, as most regulators across SADC are what we call converged, that is they are already regulating communications, broadcasting and postal services, the merger has not had a disruptive

influence on our business plans. We are largely dealing with the same regulators, which will ultimately make it much easier for us to push forward market reforms to the postal services.”

There is undoubtedly much still to do, and there are many issues on the horizon that will require ongoing roundtable discussion

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CRASA

CRASA will base its broadcasting technology on European standards

and the mediating skills of CRASA. Many countries have no framework of policies for dealing with cyber security, and it will take a joint effort to achieve regional consensus to address the issue. Meanwhile, there is a role to play for the communications, broadcasting and postal sectors in order to bring awareness of sustainable development and social responsibility especially on issue regarding the environment.

Once harmonisation has been achieved across SADC, Linzie believes CRASA will continue to have a key role to play for regulators and governments in the region.

The ICT sector, for example, will continue to be intensely dynamic. “We must make

sure our plans for the region are always forward looking and that we are always ready for change as it happens,” she said.

“That’s why CRASA is so important. It gives the regulators a forum where they can talk about the challenges and learn from each other and other regions; a forum into which we can bring expertise from Africa, Europe, America and Asia, and where we can explore how our colleagues are tackling the regulatory issues.”

For more information about CRASA visit: www.crasa.org

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Vodacom SA

Networking the nation Vodacom’s most recent quarterly trading statement further highlights the importance of its core SubSaharan markets and, more importantly, the strides the company continues to make in order to remain a leading network in an increasingly competitive sector

written by: Will Daynes research by: Candice Nice

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Vodacom SA

B

ehind Asia, Africa is the biggest mobile phone market in the world, and the fastest growing anywhere on the planet with the number of subscribers on the continent growing by almost 20 percent year-on-year for the last five years. Analysts estimate that by the end of 2012 there were more than 735 million subscribers across the continent, a figure that is the equivalent of a 65 percent penetration rate.

In South Africa mobile phone use has risen from 17 percent of adults in 2000, to 76 percent in 2010, with over 30 million people in the country now thought to use a mobile, more than those that own a radio, a television, a personal computer or indeed a landline phone.

Vodacom is a pan-African mobile telecommunications company and the lead cellular network in South Africa. Today the company provides GSM services to around 50 million customers in South Africa, Tanzania, Lesotho, Mozambique and the Democratic Republic of Congo. Aided by its release of a series of optimistic advertisements during the early stages of the democratic South Africa, Vodacom quickly grew into one of the leading networks in the country with an estimated market share that today stands at approximately 50 percent.

On 6 February 2013, Vodacom Group released its most recent trading statement for the quarter ending 31 December 2012. “This last quarter has been characterised by strong performance in data and our international operations, tempered by some challenges in our South African business,� commented

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Vodacom SA

Vodacom head office in South Africa

Vodacom Group CEO, Shameel Joosub. Vodacom make a much more concerted “Group revenue expanded by 4.8 percent year- effort to focus its investment activities on-year and 7.1 percent quarter-on-quarter, on maintaining its network leadership. while group data revenue increased by 23 This was perhaps best demonstrated in its percent and revenue from our international commercial launch of its LTE service, the first of its kind in South Africa. At the time of operations grew by 22 percent.”

During the quarter, active customer growth writing, the company’s LTE coverage has now across the Group also remained positive with extended to reach Johannesburg, Pretoria, its international base growing 13 percent Durban and Cape Town, with 542 active sites and counting. and its key South African Vodacom’s quarterly base also increasing by 12 percent. While the number results for South Africa show of customers increased in that in the three months to South Africa, voice revenue the end of December 2012, continued to be impacted by revenue increased by some increased competition in what 2.2 percent to R15.5 billion, Market share held by the company in South Africa is today a softer economy. driven primarily by the Such conditions have seen 27.2 percent growth in

50%

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equipment revenue from smartphone and tablet sales. Meanwhile, when excluding the impact of regulated cuts in MTR’s, service revenue increased by 1.4 percent.

One of the factors that influenced these results was the company’s decision to take corrective action to improve its customer base and reduce the volume of one-off usage customers. As expected, this has resulted in higher churn and net disconnections during the quarter, however what it has also resulted in is a reduction in the company’s prepaid acquisition costs and improved profitability in its prepaid customer base.

Value offers and network investment saw the number of active customers in South

Inside a Vodacom store

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Africa increase year-on-year by 11.7 percent to 30.6 million, while contract customer numbers increase by 6.0 percent to 5.9 million. This latter figure alone added almost double the net connections that Vodacom reported in each of the two previous quarters to approximately 120,000 customers.

At the heart of Vodacom’s integrated plans during the latter part of 2012 was its strategy of offering “much-more-for-more” (MM4M) and its “double your summer” promotions.

Meanwhile, the company has continued to see a strong uptake in the integrated voice, SMS and data price plans that it first launched in July 2012, with almost a third of new mobile contract customers that signed on during the

Vodacom SA

“Smartphones remain a key growth driver for Vodacom in South Africa, with active smartphones increasing to 5.8 million devices� last quarter opting for these plans.

In what will come as little surprise given global trends, smartphones remained a key strategic growth driver for Vodacom in South Africa during the final few months of 2012, with active smartphones increasing 29.2 percent to 5.8 million devices.

Smartphone net additions increased during

the quarter, adding over 500,000 customers to Vodacom’s network, a figure largely supported by its working capital investment in handset financing.

Naturally the continued growth in smartphone uptake resulted in the company recording an increased in usage by over 36 percent to 138MB per smartphone customer per month. Indeed one of the more consistent trends that the company has recorded in recent times is that the appetite for data services amongst its customer base remains strong, with active data customers increasing to 13.8 million, representing over 45 percent of its customer base.

Another important differentiator for Vodacom continues to be its commitment to network investment. One such investment has seen the company make further strides in improving the speed and coverage of its 3G network, adding 317 base stations in the quarter to take its total to 5,855. In addition, Vodacom continues to invest in increasing the capacity of its voice network to support higher customer usage.

For more information about Vodacom SA visit: www.vodacom.co.za

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A passion for P@SHA Jehan Ara, president of the Pakistan Software Houses Association for IT & ITES, talks about the role of P@SHA in developing the technology sector in Pakistan, and in helping to set policy standards for the country

written by: Martin Ashcroft research by: David Brogan

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Pakistan Software Houses Association for IT & ITES

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T

he Pakistan Software Houses Association for IT & ITES has a delightful acronym, P@SHA. Now president of the association, Jehan Ara joined about eight years ago, “so I’m not responsible for the name!” she says. P@SHA was founded in 1992 by nine technology companies, but its membership has since grown to include more than 400 of the country’s largest software houses, product development centres, BPO companies,

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animation and new media studios and consulting and system integration companies.

As president, Ara is the equivalent of a chief executive. “I run the secretariat and work with member companies; I work on all the events, and I work with government on policy. It’s what you make of it; the role is evolving all the time.”

P@SHA’s main objective is to promote and develop the software and services industry in Pakistan and to protect the rights of its

P@SHA

A discussion panel at the P@SHA Annual conference 2012 in October, Lahore, Pakistan

members. One way it does this is by sponsoring annual innovation awards in the technology sector, selecting winners in 15 categories who then go on to represent Pakistan in the annual APICTA event (Asia Pacific ICT Awards).

The P@SHA ICT Awards program has been going for nine years and the 2012 event took place in Lahore in October last year. The main APICTA event was held in Brunei Darussalam in December, with Pakistani companies collecting four second place awards. “This

time we didn’t have too many nominations,” says Ara. “We had only seven products competing but four of them got runner up awards. We normally take 15 to 20 but this year I had been ill so we did not have as many as usual.” With 16 countries represented at APICTA, bringing 153 different products to the event, four out of seven is not bad at all.

The APICTA judges look at innovation and a range of other factors, including whether the product can be scaled and sold in countries

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other than the country of origin. “They look at how well the product has sold already and whether it has the potential to sell more,” adds Ara. “They also look at marketing, the technology aspect, and what benefit or impact it has in its particular category. If it’s a banking product, for instance, they want to know what kind of implementation there has been, and what benefit there has been to the financial sector because of the product’s use in customer applications.

“One of the things we like about the awards is that sometimes our participating companies go on to work with companies from other countries,” she continues. “I see that as more of a benefit than just the award itself. In Asia Pacific there’s a lot of innovation and a lot of talent and the fact that we can collaborate and work together helps the whole tech sector in the region.”

P@SHA also has a number of industry and social initiatives in operation. A recent one that Ara is proud of is the P@SHA Social Innovation Fund, set up with a $250,000 grant from Google. “The purpose of the fund is to give grants to young people who develop solutions to community problems using technology,” she says. “We have five initiatives so far and we’re going to be funding another five in the next few weeks.” The fund will provide a grant and

a mentor to help recipients get their solutions off the ground, because the two major factors preventing young people from starting up initiatives for the community are usually lack of money and guidance, she explains.

Another key role for P@SHA is to engage with government in the formulation of policy.

“I feel that the government in Pakistan does not understand the full potential of the technology sector in the economic

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P@SHA

Delegates make their mark at the P@SHA ICT awards 2012

development of the country,” the technology and business says Ara. P@SHA worked sectors but also to safeguard closely with the Ministry of the interests of consumers,” Information Technology last she explains. “We also year on the development of interact with the National Members of the national ICT policy. “Most Standing Committee on IT, P@SHA today of the input for that came which is a parliamentary group that advises the cabinet from P@SHA,” she says.

“We more or less drafted the and the national assembly on document, but we want it to be a continuous legislation, and with the Internet Providers process, not something that is written once Association and the security agencies.” There and then implemented. The technology keeps is often resistance to new legislation from the changing so it needs to be a live document security agencies, she explains, who feel that that is updated all the time.” too much freedom on the internet and in the P@SHA is now currently working with tech sector could interfere with their work. government on cybercrime legislation. “All “We need them to understand that what we the different parties within government need do is not going impinge on what they do,” to be convinced that it’s important not only for she affirms.

400+

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As a predominantly Muslim country, Pakistan can be extremely sensitive to offensive content in the media, especially on the internet. On 17 September 2012, the Government of Pakistan banned all access to YouTube in the country, after an independent film maker posted an antiIslamic video to the site. This was the third time that the Government has restricted access to YouTube in the country, following earlier bans in 2008 and 2010.

“This is the kind of thing we get involved with because it affects our members directly and every other user in the country,” says Ara. A careful approach has to be taken, however, she explains. “We prefer to engage and convince them rather than making a lot of noise,” is her diplomatic explanation. “We don’t want to alienate them, we want them to make changes in policy. It works better for us that way.”

At the time of writing, YouTube is still

“The purpose of the P@SHA Social Innovation Fund is to give grants to young people who develop solutions to community problems using technology”

P@SHA Brainstorming session for the social innovation fund

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P@SHA blocked in Pakistan. In November 2012, P@SHA conducted a survey of its members to gauge the effect that the ban was having on their businesses, finding a significant impact on education, research, knowledge creation and overall business in the country.

“At the moment the YouTube ban is very difficult because of the religious element,” explains Ara. “YouTube is used by a lot of people here, not only business people but also in education, the entertainment industry and the media. We’ve been trying to tell the government that it has been shooting itself in the foot. The ban is not harming YouTube.

It’s just harming us.

“We don’t want censorship of the internet,” she continues. “I personally don’t think that is right. I can understand why people are offended but I don’t think they are being forced to look at that content. I try to convince people of that but when religious passions are aroused people are not as reasonable as you would like them to be!”

One possible solution would be for Google to provide a local version of YouTube for Pakistan, as it does for Singapore and other Southeast Asian countries, so that specific content could be blocked without disabling everything else.

“Personally, I don’t think anything should be blocked,” says Ara. “It’s a question of what people want to see. There is no reason any Muslim would want to see that video, so why would you want to block it? But you can’t explain that to people, so the next best solution is a local version of YouTube, but you need to be very careful. Once you start blocking one thing, where do you stop?”

A picture from P@SHA ICT Awards 2012, president P@SHA extreme left & chairman P@SHA extreme right

P@SHA is discussing this issue with government, encouraging them to avoid a proliferation of unnecessary bans by the creation of a multi-stakeholder group to decide on the issues. “There should be some criteria,” she concludes, “because how do you know they won’t block political content that they don’t like? There should be a process and there should also be a form of redress for content that is blocked that should not have been, and the whole process should be transparent.”

I can see a busy year coming up for Jehan Ara and P@SHA in 2013.

For more information about P@SHA visit: www.pasha.org.pk

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written by: John O’Hanlon research by: Abi Abagun RDA Zambia’s is juggling massive resources to deliver an ambitious road network that will enable the landlocked nation to export its goods and grow its economy

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RDA Zambia

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8,201 kilometres of road will be built or upgraded over a period of five years

RDA Zambia

A

ccording to the Zambia Tourism Board this nation surrounded by eight neighbours has over 40,000 kilometres of roads, only 8,200 kilometres of them tarred and another 8,000 kilometres all weather gravel road. The rest are made of compressed laterite and vary in condition from reasonable to rather bad, being vulnerable to the seasonal rains. A recent review of the condition of urban roads revealed that 60 percent of the urban road network is in poor condition, but it’s the trunk network that has the greatest impact on Zambia’s economic development, and the road network plays a critical role in the development of the country and the region as a whole.

That’s why the RDA recently launched its Link Zambia 8000 road project, also known as the Accelerated National Roads Construction Programme. A total of 8,201 kilometres of roads will be built or upgraded over a period of five years at an estimated cost of K28.4 trillion. Link Zambia 8000 aims to connect Zambia’s population centres with those of its neighbours, create 24,000 jobs, especially for young people, grow local industries and contractors, cut travel times creating hubs of economic growth in outlying regions.

Angola, DRC, Tanzania, Malawi Zimbabwe, Botswana Namibia and Mozambique are all growing fast, so roads like the T4 or Great East Road, which links the capital Lusaka with the Mozambique port of Nicola are vital to trade and tourism alike. A key 360 kilometre section of this road between Luangwa Bridge and Mwami Border is taking priority for rehabilitation and upgrading as part of the Nacala Road

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A JOURNEY IN AFRICA TO ACHIEVE NEW BENCH MARKS IN QUALITY, SAFETY, OPERATIONAL EFFICIENCY & WORK ETHICS AMSL (African Mechanical and Superlift Ltd) has executed more than 20 successive projects in Zambia in connection with Smelter, Refinery and Tail Leaching plants as well as Annual Maintenance contract of Concentrator.

Our expertise are in Civil Works, Mechanical Equipment Erection (including tall & heavy equipment in single-piece), fabrication/erection of large scale piping, structural & large dia. Tanks.

Since 2009 AMSL have taken up Annual Plant operation maintenance contracts for units like Concentrator, Smelter, Tail Leaching Plant and other ancillary units eg. Sulfuric Acid plant,DM Water Plant,Oxygen plant,ETP etc almost on continuous basis.

PLOT NO:1867, P.O Box no.10939, Opp.Solwezi Road, Industrial Area, Chingola, Republic of Zambia.

Email.id: amslzambia@gmail.com amslconstruction@gmail.com Web site: www.amslafrica.com Land line: +260(212)2350973 Mobile: +260966170712/+260974776264

AMSL is working with international standards of Health, Safety, Environment and Quality requirements to client’s satisfaction.

AMSL is now confident and ready of offering following services: • Handling of EPC Contract • Large scale civil works • Large scale piping and structural steel work.

• Erection of process/mining equipment and material conveying system.

• Large dia storage tanks & tank farms.

• Annual plant Maintenance.

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It is planned eiusmod incididunt sed dofoureiusmod tempor is pursuingtempor its agenda. that all contracts will start incididunt ut1stlabore et ut The labore et isdolore work beingmagna jointly at the same time April, 2013 dolore magna expected aliqua. Ut aliqua. ad minim with completion in funded Ut by enim the Government enim minim veniam, veniam, quis nostrud the firstad quarter of 2015. of Zambia together with the quis nostrud exercitation exercitation ullamco laboris European Development Bank, Once competed the new ullamco laboris nisiboost ut nisi aliquip exDevelopment ea commodo TheutAfrican section will not just aliquip ex but ea atcommodo consequat.

Duis aute irure export trade the same Bank, the Agence Française consequat. irure dolor in reprehenderit This is aUnion. caption this is areduce caption accidents de Développement and theinEuropean time and Duis bringaute down the in reprehenderit voluptate velit esse The rehabilitation andcillum upgrading works are operating costsdolor for logistics companies in in dolore eu fugiat nulla pariatur. velit cillum fugiat being implemented in four separateExcepteur contracts. voluptate the region, all esse among thedolore RDA’s eu strategic sint cupidatat non proident, sunt nulla pariatur. Excepteur sint occaecat Goodoccaecat progress is being made with procurement objectives.

RDA ZAMBIA AFRICAN MECHANICAL AND SUPERLIFT LIMITED Established in 2008, African Mechanical and Superlift Limited (AMSL) is a mechanical engineering company operating in Zambia, Mozambique and South Africa. The AMSL team has vast practical experience and expertise in mechanical construction, mechanical maintenance and heavy equipment erection, providing a variety of solutions in accordance with international standards in health, safety, environment and quality.

Our management team has collective experience in the design, implementation and operation of mechanical engineering projects including the supply, fabrication and erection of structural steel, piping and tanks, and the mechanical maintenance of copper smelters, concentrators and refineries.

We undertake the annual maintenance of concentrators which involves dismantling,

overhauling heavy mechanical equipment such as the crush mill, ballmill, sagmill, conveyors, and flotation cells. We also have the annual maintenance contract for the new smelter at Nchanga, Africa’s first ‘Direct to blister technology’ smelter, including responsibility for the anode furnace, castwheel, compressors, slag granulation ponds, conveyors, boiler, sulphuric acid plant, pre and post water treatment plants with related pumps, blowers, copper tubes, duct, piping and equipment.

Our objectives are to focus on our clients’ needs with quality service and develop a long term partnership, maintaining a high degree of health, safety and environment cleanness at our job sites.

E. amslzambia@gmail.com E. amslconstruction@gmail.com www.amslafrica.com

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RDA Zambia

20 percent of all contracts goes to local Zambian owned contractors

On the other side of the country Zambia It is a condition of all contracts that 20 percent faces the DRC with its enormous economic of the work should go to local contractors – potential. A $207 million contract was signed that is, businesses that are majority owned by in December for the design and construction Zambians. The objective of this policy is to of a new road between Luwinga and Mansa, help build the construction sector in Zambia as a mere 100 kilometres from Lubumbashi. a whole, and reduce unemployment – however The contractor China Henan will be starting a key benefit will be the resulting transfer of work in the first quarter of 2013 and expects skills, and the stimulation of entrepreneurship to complete the work during making Zambia more self 2016. “The construction of reliant over time. the Mansa to Luwingu Road 2012 was a defining year will provide a shorter link in the six year history of the between Copperbelt and RDA, says Chiwala. Last year Luapula provinces,” says CEO the government of Zambia Bernard Chiwala and though allocated 17 percent of the the bulk of the work will be National Budget to the road carried out by international sector alone, the largest Target revenue from contractors, he promises that allocation given to any sector bond issue local contractors must benefit. in recent history. The total

$1.5

Billion

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China Henan International Cooperation Group Co. Ltd’s (CHICO) main business operation covers contracting international engineering projects, consulting service for international projects, international human resource cooperation and exchange, mining development, agriculture investment, undertaking infrastructural projects aided financially by Chinese Government in oversea countries apart from the involvement in information industry.

CHICO maintains and operates regional offices in over 20 countries and regions across Asia, Africa and Europe to service its vibrant business. www.c-chico.com/En

Seen

Contact us today and put your company in the spotlight!

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roads budget for 2013 is around $600 million from the Zambian government with as much again being contributed by external agencies such as the EU, COMESA, the Development Bank of Southern Africa and international contributors like Saudi Arabia and Kuwait.

An increasing contribution comes from the road fund fuel levy. A road user charge tariff was introduced in the form of fuel levy from 1 May 1993. When it was identified that the deterioration of the road network in Zambia and the consequent loss of road asset value was caused by inadequate funding and poor management. In 2012 19 percent of expenditure on roads came from the fuel levy: in 2013 that rose to 27 percent.

Another source of funding is being promoted. The Road Development Agency

RDA Zambia

The RDA is focused on linking the more remote parts of Zambia

(RDA) plans to start building a toll-gate system across Zambia’s national road network by the end of the year, says Bernard Chiwala. He said the RDA expected to raise about 25 percent of its annual budget from the planned tolls.

“We have appointed a road tolling manager and in the next four months, they will begin to prepare for installation. We will install them on 17 selected sites which we have already identified.” The planning stage will be

completed by June, with construction starting in the second half of 2013, he says. And tolls will apply on the Great East road too, once the upgrade is finished.

The routes the RDA will initially focus on tolling are those linking Livingstone, the busiest tourist centre and Nakonde on the Tanzanian border. But many new projects will be subject to a similar funding model. A good example is the Kazungula Bridge project

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The RDA’s mission is to meet world standards

RDA Zambia linking Botswana and Zambia at a point now served by a pontoon. Under an agreement signed at the end of last year the $124 million project would be funded by the government of Japan through Japan International Development Cooperation (JICA), the African Development Bank and the government of Zambia. The project includes the construction of a new tolled road and railway bridge with one-stop border post facilities and access roads at Kazungula. It will take four years to build the 3,028-foot bridge,” said Chiwala. Tolling will address the added impact of trucks on the roads – commercial vehicles will pay proportionally more than cars, and these funds will go toward the maintenance of the roads.

Finally, the RDA plans to sell $1.5 billion of bonds by the end of this year. The agency has presented a plan for the sale to Finance Minister Alexander Chikwanda and approval is expected soon, said Bernard Chiwala: “Toward the second half of the year we will have concluded that,” he said. “It is our expectation that we will be able to raise about $1.5 billion” from international investors.” It’s a neat financial arrangement, with the security for the bond issue deriving from revenues from the road toll programme. Whatever the source of funds or the contracting model, the RDA will always keep sight of the goal, to promote the national interest of Zambia. “Better roads that meet world standards are what the people of Zambia want to see from this point going forward.”

For more information about RDA Zambia visit: www.rda.org.zm

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Eldo Coaches

GETTING ABOUT IN STYLE

Eldo Coaches has helped to keep Gauteng moving safely and efficiently for more than half a century: now it is making inroads into South Africa’s long-haul and tourist routes

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

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B

us transport could have been made for South Africa. Though it’s a big country with huge variety across its nine provinces, unlike many of its neighbours it has an excellent road network and one of the four major intercity bus lines travels to nearly every city and village. Not only is crosscountry bus travel in South Africa cheaper than flying but it is far more satisfying.

The Rainbow Nation’s landscape is as varied as its people.

Unfortunately a lot of misconceptions about South Africa persist, particularly where urban transport is concerned, and some of the very local bus operators, it is true, can help to perpetuate the image of overcrowded and unreliable buses, stripped of all comfort and carrying as many chattels as actual people.

Back in 1956, though, the Moola family set up a company with a different vision – to bring dignity and comfort to the travelling majority. In those days it was not easy for black people to set up a business and those that did succeed were tested to the limit.

Moolas Transport Services faced many challenges in an era that was dominated by the minority white population.

The company was the first wholly black owned operator to venture into the luxury coach market. Permit applications and financing were difficult to obtain at that time. However the company’s commitment and track record in taking their services to the people has enabled the company to grow continuously. Today it is a very different company from 57 years, when the founders Ahmed Moola and his brothers

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The company’s drivers undertake a week long training course with Scania before getting behind the wheel

Eldo Coaches

Deposita Systems is the leading South African developer and manufacturer of equipment and systems associated with the safeguarding, collection and processing of cash notes within the retail environment.The Deposita system registers each cash note deposited and reconciles each deposit transaction to an identifiable source using an automatic banking machine, the ABM.

No 1 Travertine Avenue N1 Business Park Kosmosdal Extention 7, Midrand Tel: +27 11 729 3300 Fax: 087 941 0598 www.deposita.co.za

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Eldo Coaches

Coach interior

Ismail and Mahomed were doing every job grown its fleet to 75 commuter buses and it in the operation, even driving the buses is an established contractor to the Gauteng themselves when required. Ahmed’s son Department of Transport.

Mohsin subsequently joined the firm and is Despite competition from low-cost operators for whom compliance is not a priority Eldo now Chief Operating Officer.

Eldo Coaches was set up to serve Coaches has stuck firmly to its principles of the majority of working people in the quality operation. The fleet is renewed on a five-year cycle with coaches Johannesburg area. This meant that in the early days it imported from Brazil – they was predominantly providing have Scania Chassis and a transport infrastructure bodies manufactured by to people commuting from leading coachbuilders such rural areas into the city areas as Marco Polo and other local The number of drivers whether to work or to shop. specialist firms. All vehicles employed by Eldo This division still operates are maintained and serviced Coaches today. The company has now

by Scania South Africa,

45

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which provides a round the clock roadside breakdown service throughout the country.

Tyres, a frequent cause of accidents if they are not maintained, are regularly inspected and replaced.

These levels of best practice are essential in the growing tourist market. As the company’s luxury coaches were increasingly hired by tour operators to show South Africa’s amazing scenery and attractions to visitors from overseas the decision was made to set up Eldo Tours as a separate division offering luxury travel to the tourist industry as well as smaller buses for shorter tours or as airport to hotel transport and even a fleet of chauffeur-driven Mercedes sedans much in demand by corporates and VIPs. You won’t find better facilities anywhere in the world. These coaches are all equipped with air conditioning, reclining seats, personal reading lights, DVD and audio entertainment and of course toilets. Safety will always be the priority, says Mohsin Moola, and added benefits from a modern well maintained fleet include fuel economy, reliability and that priceless item you can’t put on the balance sheet – a great reputation.

The best equipped coach is still only as safe as its driver. Passengers can further be reassured by the support Eldo Coaches gives its drivers.

The company’s 45 drivers are all experienced professionals; new recruits are carefully selected, and have to take a week long training course with Scania before getting behind the wheel.

Drivers and vehicles are constantly monitored in real time through a state of the art satellite system that can check any coach’s location and speed, and detect any poor driving practices like harsh braking or fast cornering. One of the biggest causes of coach accidents in the world

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Eldo Coaches

Part of the fleet

Coach facilities

is tiredness, and one of the chief cost cutting methods used by unscrupulous operators is making drivers work excessive hours. Not at Eldo Coaches, where working times are strictly monitored and enforced, and on shorter routes with only one driver on the bus, resting periods are de rigueur.

The current structure of Eldo Coaches comprises three divisions and we have already spoken about Eldo Tours. The Innercity division provides a ‘semi-lux’ service to Johannesburg and its suburbs under a licensed contract for Gauteng Department of Transport using its 75 buses.

The Intercity division has five luxury coaches that run a service between Johannesburg and Durban via Lenasia, Heidelburg, Harrismith, Estcourt and Pietermaritzburg. There are

several departures a day and this is a great alternative to air transport for business and private passengers alike, at a fifth of the price.

The 350 mile journey takes rather longer of course but the comfort of the coach provides an opportunity for rest or to catch up with reading or writing.

The strategic plan is to increase the number of intercity routes plied by Eldo Coaches.

Incumbent coach operators, not to mention airlines, should be on their guard if they are offering anything less than total safety, reliability and value for money.

For more information about Eldo Coaches visit: www.eldocoaches.co.za

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AIRBORNE ABILITY 260 | be monthly

Abu Dhabi Aviation

Abu Dhabi Aviation (ADA) is the most effective as well as the largest operator in the region with MOR services to match

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Abu Dhabi Aviation

A

bu Dhabi Aviation (ADA) coming from outside the UAE.” The facility is located at Abu Dhabi was formed in 1976 as a joint venture between the International Airport. The maintenance emirate of Abu Dhabi and complex consists of two hangars for fixed and an overseas company, its rotary wing aircraft – all under one roof. Total mission to provide the Arabian Gulf offshore hangar floor space is 5,130 square metres. oil industry with air support services. Its The hangars are linked by the engineering journey from those tentative beginnings, management and administration block and operating just two aircraft, to become the associated support workshops. Total workshop largest commercial helicopter operator in the floor space is 3,769 square metres. More than Middle East is a remarkable success story. It 220 people are employed in the engineering currently operates more than 100 of its own Department, including over 140 qualified and and its client’s helicopters as well as three experienced aircraft maintenance engineers fixed wing aircraft, offering its experience & workshop technicians. and its services globally.

Abu Dhabi Aviation With assets of nearly $1 was awarded a special billion, ADA operates mainly plaque by Bell Helicopter Bell and AgustaWestland after completing 700,000 helicopter flight hours – the helicopters and Bombardier figure is now approaching Dash 8 series turboprop Hours of operation in Bell helicopters transport aircraft but it also a million hours. Due to the offers these aircraft on lease high intensity of offshore to clients around the world oil support work, around – often the most cost-effective solution for 200,000 landings and take-offs are required them. It is also one of the region’s largest annually, while the company transfers around repair, maintenance and overhaul companies, 26,000 passengers and 162,000 kilograms of servicing both helicopters and fixed wing freight to and from offshore facilities each aircraft, whether for its own fleet or for month. Sustaining these impressive rates outside clients. Many of the world’s largest has required a high degree of dedication, petroleum companies turn to ADA for the commitment and professionalism on the part heavy maintenance and modification of their of the pilots, engineers and support staff. aircraft. “There is no facility in the Middle East Following many years of successful – or indeed the Far East – which will provide collaboration with AgustaWestland ADA the services we are planning to deliver,” created a helicopter maintenance joint venture says chairman Nader Ahmed Mohammed Al with this major supplier in 2011. The new Hammadi. “Our current capabilities provide company, named AgustaWestland Aviation services to our clients on a global basis with Services, will carry out a range of services and approximately 40 percent of ADA’s business activities for the sale of helicopter spare parts

100,000

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Aircraft Maintenance & Modification

Component Total Support

Engine Total Support

Engineering & Development

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Abu Dhabi Aviation

and accessories, helicopter/component repair partners to further expand their range of and overhaul, customisation, modification services, capabilities and presence. The and upgrading. According to the evolution demand for helicopter maintenance across of future market requirements, the joint the Middle East is growing and providing this venture’s scope of activities could be further service right at the doorstep of our clients is a expanded to encompass special configuration benefit that will see huge returns in terms of development, component production and overall industry growth,” said Al Hammadi. even helicopter assembly.

While most of the company’s work is still for Customers are now offered a wide range of oil and gas industry clients, it has diversified services in Abu Dhabi that have historically as demand for helicopter intervention has been available only from the manufacturer in grown. These days it routinely conducts Italy or the United States. “We agricultural, geological aim to be a global aviation and search and rescue company beyond its current operations. It leases aircraft international business scope, and helicopters to the fire fighting services in Europe and the new joint venture is and Australia at the height a step in the right direction.

Area of maintenance The joint venture will be of their fire fighting seasons. facility It has variously provides of mutual benefit for both

3,769 m2

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seismic support in Yemen, assisted the telecommunications network in Oman, carried out crop spraying in the UAE, disaster relief in Pakistan and has been happy to provide health evacuation and medical services to the huge crowds that gather in Riyadh, Jeddah, Mecca and Medina during the busy Ramadhan and Haj seasons. It is of course well versed in the techniques of medical evacuation, a vital contribution to the health and safety support of offshore oil rigs.

In 1984 ADA pioneered the technique of long line vertical referencing in the Middle East. Vertical reference flying is flying while looking downward rather than horizontally using the natural horizon. It’s an extremely unnatural way to fly a helicopter but it can be learnt, and is very useful in the kind of seismic surveys used when looking for oil or other resources. The work is performed by helicopters specially configured to utilise under-slung load techniques that incorporate a long-line of up to 200 feet, enabling the helicopter to remain clear of all obstructions.

As part of this service ADA has completed a number of contracts in the rugged mountains of Oman and Yemen, using a 40 metre long line. Similar long-line vertical referencing techniques are also being

applied to numerous construction projects in the UAE, Saudi Arabia, Oman and Yemen. Some very successful applications have included the erection of electricity pylons as part of government schemes to bring electricity to remote areas, and in the construction of microwave towers for data and voice transmission by the telecommunications sector.

Another key service provided by ADA is search and rescue support for the Armed

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Abu Dhabi Aviation

Forces of the United Arab to perform a number of other Emirates. This is operated out specialised tasks. From 1996, of four strategic bases located for example, the company within the Emirate, with a has been under contract to dedicated fleet of seven stateCatalonia to undertake fireAnnual movements in of-the-art AgustaWestland fighting services as and when support of O&G clients required. Spain, with its dry AW139 helicopters fully climate and wooded terrain, equipped for search and rescue. Each carries a complement of two is very vulnerable to wildfire outbursts pilots, a winch operator and a specialist particularly during the hot summer months. rescue paramedic. The SAR helicopters are in 2009, for example, was a particularly bad readiness to be called out 24 hours a day and year, and fires during the dry season were seven days of the week. They operate over severe enough to achieve international news both land and sea, and can also be called out coverage. The helicopters used for this vital to provide assistance to the general public, task are Bell 212 and 412s fitted with highly working in coordination with civilian rotary effective Isolair ventral tank and snorkel wing operations. They also undertake inter- systems for scooping up and delivering water to quench the flames. These are regularly hospital patient transfers.

ADA’s helicopters can also be configured seen in action in Catalonia.

200,000

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“our fleet and crews stand ready 24 hours a day, for search, rescue, support and logistic operations, at sea and on land” The company’s Bell 212, 412 and 206 helicopters can also be fitted with specialised camera equipment, and these are then contracted to provide coverage for live photo missions. Among the missions the company has fulfilled are contracts to provide live local TV coverage of dhow

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races at one end of the spectrum, through to taking the dramatic ‘tanker war’ footage that was shown on the major news networks worldwide during the Iran-Iraq war. On a less perilous note, the company has diversified into a range of services that promote health and productivity. A number

Abu Dhabi Aviation

of the Bell 206 helicopters, for example, can be configured to carry spray equipment capable of applying both insecticides and pesticides. In this role the company regularly carries out extensive spraying programmes in both the UAE and Oman.

February 2013 saw Abu Dhabi host Idex, arguably the most strategically important tri-service defence exhibition in the world.

ADA was present, with a large pavilion, in common with its partner Finnmeccanica, owner of AgustaWestland. However ADA’s presence was as much about showing the company’s commitment to the government and its requirements. “We seek to harness

our participation in Idex to show support for police throughout the UAE and other countries, who are either participating or observing the activities of the expo, especially in the field of search and rescue operations,” said Al Hammadi. “The message we are bringing to Idex is that our fleet and crews stand ready 24 hours a day, for search, rescue, support and logistic operations, at sea and on land.”

For more information about Abu Dhabi Aviation visit: www.abudhabiaviation.com

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270 | be monthly

Transcity JV Project (Legacy Way)

BRISBANE

DEBOTTLENECKED As Brisbane’s economy continues to expand, the Legacy Way project being delivered by Transcity will help accommodate Australia’s most easterly city to grow along with it

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I

n the present century alone Brisbane’s population has grown from 3.5 million to more than 4.5 million. That is projected to double by 2031 requiring at least 156,000 additional dwellings to be built. With this growth comes an inevitable increase in traffic congestion. A recent report found that 340 kilometres of Brisbane’s roads are at or above or capacity, and estimates this will jump to 720 kilometres by 2031.

But congestion, itself caused by economic growth, stifles future growth. Realising that the area around Brisbane Airport is set to become one of the region’s main economic generators, Brisbane City Council identified the need for a link between the Inner City Bypass (ICB) and the Western Freeway. In 2005 a pre-feasibility study identified and investigated five links to connect existing motorways and major arterials. It found the proposed Legacy Way (named in honour of the armed services support organisation Legacy Australia) would provide an important bypass for central Brisbane and the inner western suburbs. A business case analysis completed in 2008 concluded that the project could be both technically and financially feasible.

Transcity is the name of the joint venture company formed to deliver this ambitious decongestion project. It comprises Brisbanebased BMD Constructions, who has significant local knowledge and resources and two specialist international infrastructure firms. Ghella is an Italian company with an extensive background in tunnelling projects round the world while Acciona of Spain is recognised for its work in major construction projects worldwide. The contract for Legacy

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TBM’s Annabell and Joyce are commissioned prior to their delivery and assembly at the Legacy Way worksite

Transcity JV Project (Legacy Way)

Transcity JV Project (Legacy Way) Way was signed in January 2011, and Transcity started working at both ends in the second quarter of that year. Two Herrenknecht TBMs, each weighing approximately 2,800 tonnes and 110 metres in length, are being used to construct Legacy Way’s 4.6 kilometre parallel tunnels between the Western Freeway at Toowong and the ICB at Kelvin Grove.

These machines are capable of cutting a 12.4 metre hole through the hard rocks that characterize the geology below Brisbane at an average rate of 21 metres day, though with a best day record of 49.7 metres. The machines also install the precast concrete segments that form the tunnel walls. Tunnelling work

Construction of Legacy Way’s cross passages

started from the Toowong end in August 2012 – quite an achievement since it took four months just to assemble the TBMs there.

The machines have been given names – Annabell working to the south of her sister Joyce. The first TBM is named after Annabell MacKinney, the daughter of the late Lance

h+E logistik gmbh New tunnel constructions require tunnel conveyor belts and conveyor systems.

Providers that stay on the international market are those that remain competitive through continuous process optimisation.

H+E does this; we have been able to position ourselves successfully as a highly specialised provider.

To give room to sustainability and corporate growth, we have expanded in 2010 with the opening of a further site: the H+E production facility in Aschersleben. Equipped with state- of-the-art machinery, this production site is optimally geared towards the

individual requirements of our clients.

The H+E site in Aschersleben is also a training centre which enables us to provide young people with individual opportunities for professional development within this highly interesting sector.

It is important to us that every employee – whether in development, production or projects around the world – upholds our philosophy: Innovation, reliability and competitiveness form the basis for the trust that our clients place in us. www.helogistik.de

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Corporal Jared MacKinney who was killed in action in Afghanistan in 2010. The second TBM is named after Joyce Tweddell, a nurse during World War II who showed immense courage after being held as a prisoner of war in Sumatra for three years before going on to become Queensland’s Chief Radiographer.

The pair of them are scheduled to break through close to the ICB around the middle of 2013, though they have been getting through their task at a spanking rate which anyone

can follow in real time on http://transcityjv. com.au/the-project/tunnelling/tbm-tracker/.

At the time of writing they had each travelled 2.5 kilometres, and were crossing Guthrie Terrace, Paddington.

The machines work day and night, and each has a crew of 22 people to keep it operating. Both TBMs are averaging a rate of more than 150 metres per week, a world class standard for the industry - there are only a few projects worldwide that can show similar

“Each milestone we reach on this project brings us one step closer to being able to provide a four minute trip between Toowong and Kelvin Grove”

Precast concrete segments at the western worksite

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Transcity JV Project (Legacy Way)

Precast concrete segment production

achievements using large diameter TBMs. Transcity Project Director Fernando Fajardo said he was proud of the team’s outstanding efforts. “The team is setting records for our rate of excavation which is a credit to their global expertise, hard work and commitment to successfully delivering this project.”

From the point of view of Brisbane City Council, what matters is that the Legacy Way tunnel will be delivered on time to residents and visitors by 2015. Lord Mayor Graham Quirk said the record speeds being set on the project, was a good indication. “Each milestone we reach on this project brings us one step closer to being able to provide a four minute trip between Toowong and Kelvin Grove,” he said. “Legacy Way alone will cut the trip from Jindalee to Kelvin Grove from

30 minutes to 10 minutes and allow motorists to travel from the Ipswich Motorway to the Airport without one traffic light.”

Annabell and Joyce’s high productivity has meant an increased demand for precast segment production and a faster removal of spoil which is being transported via an underground conveyor to the Mt Coot-tha Quarry.

Nine interlocking segments are required to complete each ring, which spans the circumference of the tunnel. Approximately 4,300 rings are required to line the twin two lane tunnels: that adds up to 38,430 segments in all. The concrete segments are transported from a purpose built facility at Wacol, about 16 kilometres from the city and moved to the front of the TBM via a segment feeder. There they are positioned around the perimeter of

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Precast concrete segments are placed by the TBM

Transcity JV Project (Legacy Way) the excavated tunnel and held in place by the TBM’s auxiliary thrust cylinders while they are bolted and grouted into place.

It has also caused pressure to move out the excavated material faster; but the good news is that Transcity planned a very smart and environmentally friendly solution. There’s no trucking of spoil. All rock cut from the tunnel face is transferred via an underground conveyor from the western worksite into the Mt Coot-tha Quarry. The tunnelled conveyor is approximately 870m in length, of which approximately 530m is underground.

The spoil conveyor’s innovative design provides significant benefits for the community including a decrease in noise and dust impacts during tunnelling operations. It also limits the need for almost 96,000 truck movements on the Western Freeway.

The 1,000,000 cubic metres of spoil excavated from the twin tunnels will be used to rehabilitate the quarry.

At the end of the project rehabilitation of the western worksite at Toowong will include an imaginative four hectare expansion of the Brisbane Botanic Gardens at Mt Coot-tha, with native vegetation restored and expanded to reflect the sub-tropical retreat for which the Botanic Gardens is famous. No mess, less noise and a haven of peace on top of a huge reduction in congestion with peak travel times between Centenary Bridge and the ICB almost halved – Legacy Way is a double win for Brisbane.

For more information about Transcity JV Project (Legacy Way) visit: www.transcityjv.com.au

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SEA TRADE MAGNET

Sri Lanka’s premier ship repair and shipbuilding facilit placed to catch the trade passing along the east-west sh between Australia, the Far East, Europe and the Gulf oi

written by: John O’Hanlon research by: Abi Abagun

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Colombo Dockyard

MAGNET

ty is perfectly hipping routes ilfields

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Working in workshops

Colombo Dockyard

S

ea traffic round the Indian to Onomichi Dockyard Company of Japan. subcontinent has to skirt the That has always been a key factor in making southern tip of Sri Lanka, as does Colombo Dockyard one of Sri Lanka’s most the long haul bulk cargo, tanker successful and efficient businesses, importing and container traffic that plies business practices like kaizen (continuous between east and west. That gives Colombo, improvement) and lean working from Japan Sri Lanka’s commercial capital, a unique while retaining Sri Lanka’s people-friendly advantage that can’t be taken away; but Sri and collaborative culture.

Lanka was racked by internal strife for nearly Over the years Colombo Dockyard has 30 years. The conflict made shipowners offered repair and assistance to more than wary of entering service arrangements with 9,000 ships and has constructed over 230 the dockyard as insurance premiums were new ships for both local and international raised, says. That conflict was clientele. Today it is one of comprehensively resolved in Sri Lanka’s largest foreign 2009, and the way finally laid exchange earners, generating open for Colombo to take its an average annual turnover rightful place in the maritime of over $130 million, which service industry. “Sri Lanka equals to one percent of Number of workers is now one of the freest and Sri Lanka’s total export employed least troublesome areas in revenue. In addition to the economic benefit, the sociothe world to carry out ship repairs,” said Mangala P B Yapa, CEO and cultural benefit it provides to the country is managing director of Colombo Dockyard. immeasurable, providing work to over 3,000 The Colombo Dockyard Company Sri Lankans and industrial skill training to managed to grow consistently through more than 450 trainees at any given time, the years of conflict, a testing time for the developing an indigenous industry and competence and efficiency of its management placing Sri Lanka on the world map of elite team. In subsequent years the same people shipbuilders and repairers. have been able to take advantage of the Colombo Dockyard employs 1,300 people, ‘peace dividend’ and grow the existing supplementing them with contracted labour services offered by the dockyard while as needed. A third of these employees have developing new and imaginative ways to been trained in shipbuilding at Onomichi— serve traditional markets. At the same time shipbuilding is an important activity at the they have established Colombo dockyard as dock, though until 2005 it built only for a focal point and centre of excellence for the local market. However the market for servicing the ever more specialized needs of new ships turned up about that time and the offshore oil and gas industry. the management decided to actively look A controlling share in the business belongs outward to external markets. Today the yard

1,300

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Colombo Dockyard has the capacity to build yanmar vessels of 100 metres and FOUNDED IN 1912, Yanmar has been dedicated to more in length. developing its own new technologies and products in Last year the company pursuit of resource and energy efficiency. Yanmar has completed the first of three persued the continuous improvement of “Life Cycle Value” 78 metre multipurpose by developing products that embody reliability, durability platform supply and ROV and low cost operation, because the Diesel Engines are relied upon throughout the long life of a ship. Yanmar was support vessels for the founded with the spirit of “grateful to serve for a better Greatship Group, each with world” and thrive by offering solutions for both economy accommodation for 50 and environmental protection people. The Roopa launched In joining hands with Colombo Dockyard PLC, during the on March 5th and delivered last decade Yanmar had delivered and commissioned last July is a remarkably many main engines and diesel generators and hope this high tech vessel. Its main association will be continued... and will grow together. www.yanmar.com job is to support offshore oil and gas fields around the clock and the Vessel will have an endurance of 35 days and a cruising range of about 9,200 nautical miles, with a top speed of nearly 14 knots. Once on site it can manoeuvre with precision and is equipped with an advanced dynamic positioning system that allows safe and efficient operations in close proximity to oil platforms and rigs, even under the harsh weather conditions. An important bonus for the owner is that the ship is designed to be surveyed at sea. Rather than having to put into a dry dock periodically it can stay in Mangala Yapa, MD & CEO service for five years at a stretch. Roopa’s

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sister ship Rachna was launched on June 28th and went into service in September last year, with Ragini joining them on December 31.

The yard has been building luxury yachts, ferries and cargo vessels too. Just two years after delivering its first two passenger vessels for the Indian government, the Arabian Sea and Lakshadweep Sea, Colombo Dockyard signed a contract for two more ships capable of carrying 400 passengers and 250 tons of cargo specifically for coastal trade routes round India. However the repair and maintenance trade that has always been the bread and butter off the business, continues to develop apace. In the ship repair sector on average, Colombo Dockyard handles over 200 vessels annually with 100 accommodated in dry dock and the balance accommodated at its repair berths. Colombo Dockyard is capable of handling all routine, damage and retrofit repairs.

Colombo Dockyard operates four dry docks ranging in length from 107 to 263 metres, and more than 1,000 metres of fully serviced alongside repair berths. These quayside facilities are ideal for the growing number of container ships that put into Colombo. . These ships normally dry dock at their destination ports either in Europe

or the Far East but frequently need repair and maintenance to equipment. CDL now offers a very comprehensive Afloat Repair service that deals with any issue that does not need dry dock facilities – engine room, compressors, generators, electronics, pipework and electrical wiring can all be serviced with very little delay.

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Colombo Dockyard

Tanker docked for lay-up repairs

The dockyard is in partnership with all the OEM suppliers such as ABB, Cummins, MAN or Caterpillar, all of which have their own local service companies. “We can have components waiting and install them at the next visit,” says Mangala Yapa. “We can even put repair personnel on board so the repairs can be carried out while the vessel is on the way to its next port of call. The advantage is that we have a duty free facility so all these things happen without attracting any custom duty, and that includes spare parts.

An owner who has a fleet of container vessels plying to Colombo can keep his spare parts stored at Colombo Dockyard without paying any custom duty.”

Colombo is now seen by shipowners as a reliable and highly professional service centre, with a world class skills base thanks to the Onomichi connection. With competitive labour costs, sophisticated IT systems and ISO certified dockyard systems as well as fully integrated stock management to support long term service agreements Colombo Dockyard is a clear choice for operators and owners operating in the region – or just passing through.

For more information about Colombo Dockyard visit: www.cdl.lk

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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

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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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Sohar Aluminium

LIGHT AND LEAN IN OMAN Sohar Aluminium has the world’s longest single potline at 1.2 kilometres long: it is contemplating expansion that would triple its existing capacity while continuing to support Oman’s economic and social growth

written by: John O’Hanlon research by: Robbie Hodgson

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Part of the company’s mandate is to create jobs

Sohar Aluminium

L

ike its neighbours Oman developed its economy on oil and gas, and like them it is now trying to diversify that economy by establishing industries that will sustain its growth over decades to come. Oman occupies a favourable position on the east coast of the Arabian desert peninsula so in 2004, with the strategically placed Port of Sohar designated as a major industrial hub it made sense to set up an aluminium smelting operation there.

Being a heavy consumer of electricity, aluminium smelting is in the process of moving away from the industrial nations of the West where energy is relatively expensive, to the Middle East and other countries where power is cheap. With a ready supply of gas that would previously have been flared off from the oil wells, many of the oil producing countries are capable of generating large amounts of power at a relatively low cost, and this is ideal for the power hungry smelting process.

Sohar Aluminium was established in 2004 as a flagship enterprise on the Sohar site.

It has three shareholders, the governmentowned Oman Oil Company and TAQA, a subsidiary of Abu Dhabi Water and Electricity Authority, holding 40 percent each and Rio Tinto Alcan the remaining 20 percent. The plant currently produces 375,000 tonnes of aluminium per annum, and employs a workforce of 1,000 people, though CEO Henk Pauw estimates that it supports around 3,000 jobs in the Sultanate if downstream industries are taken into consideration.

One such business, a $388 million aluminium rolling mill is currently under

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Studies, Expertise, Prefabrication, Erection of High Current Busbars (Al/Cu) and Aluminium Smelters Maintenance • CLAUSER DUNKERQUE • CLAUSER MIDDLE EAST • CLAUSER ST JEAN MAURIENNE

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SOHAR Sohar ALUMINIUM Aluminium CLAUSER MIDDLE EAST

Clauser develops modern solutions to meet the needs of industry in the field of highcurrent electrical installations. The company specializes in the design and implementation of high-intensity drivers, and maintenance in the electrolysis process. The company was created in 1963 near the Pechiney plant in Saint Jean de Maurienne, in France. After its participation in the construction of the Pechiney plant in Dunkirk, the Dunkirk agency was created in 1992 in order to best serve its customers. After involvement in modernization projects, expansion and outsourcing of maintenance for the DUBAL plant, an agency was established in Dubai in 2007.

• ‘Special’ works within potlines • Earth trolley manufacturer and user

Core businesses: Maintenance in aluminium potlines: • Superstructure refurbishment • Anode beam refurbishment • Anode repair (stem and yokes) • Potshell repair • Welding on ‘live’ busbars • Cell replacements • Risers and cathode flexible welding

Secondary businesses • Design • Manufacture • installation • Aluminium and copper conductors for high-current electrical facilities • ‘Live’ busbar connection.

Busbar expertise (from 1kA to over 500kA): • Design • Manufacture • Installation • Aluminium and copper conductors for high-current electrical facilities • ‘Live’ busbar connection We are also qualified welders for all types of on-site and factory welding, including steel, aluminium and copper, and we have the capability to saw large aluminium and copper block/bars (800mm high by 5m long).

www.clauser-sa.com

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Sohar Aluminium construction and expected to come on stream in August Fives Solios is proud to have participated in the 2013. “Our target is to pass construction of the Sohar Aluminium’s smelter, with: 60 percent of our output • A 36 tph Green Anode Plant implemented for the first on to Omani companies,” time both RHODAX® for dry material preparation and says Pauw. “We’re not there IMC® (Intensive mixing Cascade) for paste preparation yet, and there’s still room • Two Gas Treatment Centers to treat pot emissions fitted for improvement. But once with TGT-RI filters the rolling mill is up and • One Fume Treatment Center on anode baking furnace • Four 80t capacity tilting Holding Furnaces along with running we will be getting the Water Cooling System for the casthouse close to that target.” Another • A Liquid Pitch Marine Terminal with two 5,000t nearby factory takes a capacity tanks. proportion of the output This project strengthened Fives Solios’ position as a for high voltage cables. By turnkey technology provider for the Aluminium Industry. manufacturing from liquid www.fivesgroup.com aluminium direct from the smelter, the cable factory is able to operate at competitive cost, bypassing the metal melting process most of its competitors go through.

The smelting plant itself is powered by a 1,000 MW combined-cycle captive power generation facility (CCPP) designed and built

by Alstom and owned by Sohar Aluminium, which produces abundant low cost energy fuelled by natural gas that is supplied under the terms of an agreement with the government of Oman. The generation facility consists of two blocks, each with two Alstom

Fives Solios

$388 million Following the plant’s expansion the projected capacity will be 1,000,000 tonnes per annum

Investment in downstream rolling mill for completion this year

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GTI 3E2 gas turbines exhausting to a heat recovery steam generator with a common steam turbine.

The availability of cheap fuel and low labour costs do not mean that the plant can ignore world-class process standards or the need to conserve energy. Drawing on his ten years’ experience in the automotive industry Pauw introduced lean practices at the plant and has been developing them through training, encouraging a mindset of empowerment and responsibility among employees. “The principles are always the same,” he says. “Lean is about focusing on waste and empowering people on the shop floor. It’s about toolboxes and data, about

Sohar aims to be a role model for industry in the Gulf

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taking responsibility and doing something about it—not blaming other people.”

The Sohar Aluminium Academy based at the plant provides a comprehensive programme of training, from welding and technical courses through to safety, management and leadership training. “We started our first lean workshops about two years ago and have been rolling it out over different departments. Most of our leaders have completed a three-day lean session where they have learned about the principles of lean and about the lean toolbox.”

Sohar Aluminium is something of a pioneer for lean in Oman. Sohar Aluminium being a new business built from scratch it had the

Sohar Aluminium

“With lean, we are turning the traditional hierarchical management pyramid on its head and creating a serving leadership and not a boss leadership” opportunity to introduce lean thinking from ground level among its employees, many of them new to working in industry. Coming from a society that values authority Omanis are sometimes slow to realise that the opinion of a shop floor worker is as valued in a lean environment as that of senior managers.

“With lean, we are turning the traditional

hierarchical management pyramid on its head and creating a serving leadership and not a boss leadership.”

Looking to the future, Pauw’s objectives go well beyond achieving the expansion project. Good management has kept the plant self sufficient in terms of finance, and he is determined it will stay in the black, offsetting any straitening in global markets by cost reduction and continuous improvement – lean manufacturing is a never-ending process. His targets are by no means limited to things that can be demonstrated on the balance sheet. “We want to create future leaders for Oman. We believe we have a job training role to play, and I would like to see some of our Sohar Aluminium employees find jobs in other companies and to be recognised as the best employees to have.”

And these principles extend beyond the direct workforce. Last year Oman’s Public Authority for Craft Industries (PACI) has signed a memorandum of understanding with Sohar Aluminium to set up a training centre for aluminium craft work on the company’s premises. The two-year training programme aims to enable women to become entrepreneurs and produce aluminium handicrafts. According to the

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Plant exterior

Sohar Aluminium agreement, PACI will provide trainers and study material while Sohar Aluminium will provide the faculties and funding for the programme, while the centre will train selected women from low-income families in the local community in aluminium craft manufacturing.

So what of the future? Following an extensive study on future demand locally and internationally Sohar Aluminium is planning to invest around $4 billion to ramp up the capacity of its plant to 1 million tonnes a year. Following weak prices in 2012, global aluminium is showing a positive trend in early 2013, with good potential for growth. “There’s a need for two or three new aluminium smelters a year globally just to keep up with demand,” estimates Henk Pauw.

The Sohar plant has a big advantage in is its access to Alcan’s cutting edge technology, the most reliable and consistent on the market today: it was the first smelter in the world to implement Rio Tinto Alcan’s benchmark AP36 smelting technology.

Alcan is constantly improving the efficiency of its equipment, and any future expansion will look at incorporating the latest AP 40 technology, with its associated benefits of energy saving and emission reduction.

“If ongoing talks with the Ministry of Oil and Gas are positive the company would definitely like to undertake this expansion to triple the capacity of the plant.”

For more information about Sohar Aluminium visit: www.sohar-aluminium.com

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3Q Concrete

Cementing a legacy 3Q Concrete supplies its products to some of most important infrastructure projects in South Africa and has positioned itself perfectly to respond to developments within an ever-changing market

written by: Will Daynes research by: Paul Bradley

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3Q Concrete

D

erived from the Latin word and quickly. “We try to emphasise these “concretus”, meaning compact traits and characteristics in all that we do,” or condensed, concrete has had Marais enthuses, “and this all begins with an immeasurable impact on the relationship that we seek to form with both the ancient and modern our customers. We strive to have a personal world with its usage dating as far back as bond with each client, utilising the smaller 800 BC. Today the global use of concrete company mentality that we have that is twice that of steel, wood, plastics and promotes regular interaction.” aluminium combined, and is only exceeded Of course, product quality is equally as by the usage of naturally occurring water. important as good customer relations and Founded in 2006, 3Q Concrete is a the systems and process controls that 3Q South Africa based company specialising Concrete has established throughout its in the production of normal organisation ensure that, and customised readywhile it is able to provide its clients with a cost effective mixed concrete from its form of concrete, it has 12 strategically located batching plants. “We began never once compromised on life as a small operation,” the quality of its product.

The year that 3Q “One of the other explains Managing Concrete was established contributing factors to our Director, Charl Marais, “located in the North West success,” Marais states, province of the country, close to where the “is our f lexibility. As a result of the major platinum mines are situated.” geographic location of our plants and our From there the company steadily grew fleet of more than 80 trucks we are able to by making a number of acquisitions, before follow market demand wherever it may go, eventually becoming a part of Capital Africa mobilising our resources quickly. Indeed, I Steel (CAS), which itself is 50 percent believe that we have now reached an ideal owned by Wilson Bailey Homes (WBHO), critical mass where we have a large enough one of the largest construction companies fleet that allows us to do this efficiently in Africa. “We have expanded nicely in and effectively.” recent years,” Marais continues, “operating 3Q Concrete’s prosperity means that it is primarily in parts of South Africa that able to continue seeking ways to expand its have witnessed a rise in mining activity presence. One of these will see it open up a and positioning ourselves accordingly to new batching plant in the coming months capitalise on positive developments within in the Northern Cape province of South Africa. It is here that it hopes to profit from the marketplace.”

The three q’s that the company derives the extensive iron ore mining activities its name from stand for quality, quantity within the region.

2006

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3Q Concrete

3Q Concrete produce both normal and customised mix designs

With almost 50 percent of South Africa’s economy being in some way reliant upon the mining sector, it is understandable that the industry remains of great interest to 3Q Concrete. “Mines continuously need improvements and modifications,” Marais says, “and concrete is always a core ingredient during these undertakings.”

3Q Concrete is very much a project

orientated company and as such it focuses primarily on areas where construction activity is prevalent, while at the same time being able to continuously assess market levels. This approach to its work means that it is now looking into opportunities to expand outside of its own borders into Mozambique where it foresee lots of potential opportunities for growth.

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“it’s always important that companies possess employees with a hunger for work and a management team capable of accurately monitoring costs

3Q Concrete aims to open three new batching plants in 2013

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3Q Concrete “While it is fair to say that we do run a tight ship,” Marais says, “at the same time we consider ourselves to be a lean and mean operation.

Our business model allows us to make money even when activity levels in the country decrease. Whereas other large companies often end up finding they become reliant on constantly high volumes of work in order to turn a profit we are unique in that we are equipped to ride the ups and downs of the market and remain profitable.”

As of today 3Q Concrete remains committed to opening up at least three new batching plants during the first half of 2013, while also putting in place the ground work for further expansion in the six-to-twelve months following.

“Approximately 60 percent of WBHO’s revenues come from outside of South Africa,” Marais says, “and it is because of this that we are more determined than ever before to capitalise on the opportunities that Southern Africa has to offer.”

In order to do this Marais is adamant that the company needs to retain the mentality that has served it so well to date. This means having employees who are hungry for work and taking a pragmatic view when it comes to costs. “Since the onset of the global financial crisis in 2008 it has never been

3Q prize their employees above all other things

more important for a company that wants to be successful to possess a workforce with a hunger for work and a management team capable of accurately monitoring costs. As times have changed so too have businesses had to adapt accordingly and that is what we have done. By having the right people, attitude, discipline, flexibility and the desire to go that extra mile for our customers we have been able to exceed even our own expectations.”

For more information about 3Q Concrete visit: www.casteel.co.za

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Al

Training the for future Chairman, Dr Sarmed Nima, discusses how Al Delma for General Contracting & Training Services is best placed to create a skilled local workforce in Iraq

written by: Will Daynes research by: James Boyle

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l Delma for General Contracting & Training Services

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Training with scaffolding structures for use to support people and materials

Al Delma

A

ccording to numerous geological surveys and available seismic data, the country of Iraq possesses what might well be one of the largest collections of oil reserves on the planet, estimated to total over 350 billion barrels. However decades of sanctions, two Gulf Wars and the subsequent years of civil unrest left its oil infrastructure in dire need of modernisation and investment.

Despite a growing international effort to transform Iraq’s oil industry for the better, there are still considerable skills gaps that need filling before the country can truly profit from what its land has to offer.

A 100 percent Iraqi owned company, established in 2006, Al Delma for General Contracting & Training Services aims to contribute to the re-building of Iraq into a stronger player on the international stage. Boasting a national footprint, Al Delma prides itself on its consistent level of service and ability to offer qualified personnel, plans and its accurate implementation of projects.

“In the aftermath of the second Gulf War in 2003,” explains chairman, Dr Sarmed Nima, “companies slowly began to return to Iraq. It was at this time that we took it upon ourselves to establish a business that would specialise in providing skills and training.”

Having worked for Iraq’s Ministry of Oil until 1999, and extensively within the private sector in the years after, Nima believes his true calling in life has always been in the field of petroleum engineering. It is his knowledge of, and experience within,

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the country’s oil sector that helped him to recognise the market’s need for professional training services.

“We began by providing English learning training,” Nima continues, “and have since advanced into providing core skills training, for example professional administration and managerial skills, and financial training.

Now we are also beginning to branch out into providing specialist technical training from our facility in Basra.”

A prime example of this training would be in the field of welding, a hugely important service required by the vast majority, if not all, of the companies working in Iraq.

“There is a distinct lack of professional services available in certain areas of Iraq’s oil industry,” Nima says, “and welding is one of them. What we have introduced is a stepby-step training programme, complete with ready-to-use simulators, that teaches people how to weld and do so professionally.”

This approach has since been extended to other disciplines such as scaffolding, working with chemicals, explosives and hazardous materials, and working in confined spaces. Courses that Al Delma currently has in development include those aimed at petroleum engineering, such as the production of reservoirs and

Awareness training in confined spaces is e

drilling, and health and safety.

“Other areas of business that we are looking to venture into,” Nima states, “are construction and procurement. Procurement activities in particular in Iraq tend not to be carried out to the standards that international companies expect and this is something we want to remedy. I personally have been responsible for executing more than 160 different procurement contracts during

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Al Delma

essential for a successful oil & gas HSE

Al Delma has state of the art training facilities

my career and I now want perception of our company,” to transfer my knowledge Nima says, “also comes and understanding on to with the preconception others through our training that for whatever reason programmes. In a move our standards are lower that we hope will be take than they should be. This couldn’t be further from the these plans a step further, Iraq’s estimated truth. In fact, performance I have recently been in oil reserves wise, we excel where many Canada working to form others fail.” partnerships with those companies that are keen to Common issues that plight establish a presence within Iraq with the those failing companies include acquiring aim being to introduce their products and visas for Iraqis and handling the complex services into the country.” logistical challenges that the environment One of the challenges that Al Delma creates. Equally crucial to success is simply has to continually work to overcome is being able to have a firm understanding of its perception by some as being a little the culture of Iraq and how this impacts more than a local Iraqi business. “This upon the type of workers the country

350

Billion

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Knowledge and simulation is key to qualify as a professional welder

Technicians train

“Al Delma believes that all international companies should be committed to upgrading the standards of their Iraqi personnel” breeds. “This is where being a locally based company really benefits us,” Nima enthuses. “By having a clear understanding of the environment in which we operate we are best placed to stand shoulder-toshoulder with international companies as they attempt to establish themselves in this part of the world.”

It is Nima’s opinion that the company has

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developed hugely in recent years, becoming much more organised while maintaining its commitment to improving its capabilities further. By doing so, Al Delma gives itself a better edge over its competition when it comes to attracting the interest of international partners.

Having this edge appears all the more important when you take a closer look at

Al Delma

n in real maintenance workshops

what the immediate future for Iraq has in store. “In all our discussions with the likes of BP, Shell, Lukoil and other major international players based in the country,” Nima says, “what we have found is that they all agree that training is one of their most pressing concerns and requirements. What you must remember is that since 1980, for all intents and purposes, until very recently Iraq has remained disconnected from the world. This has created an issue where most of the local population are not educated or skilled enough to make this happen in this industry.”

What Al Delma believes is that all the aforementioned companies have a commitment to upgrading the standards of

On job training builds confidence

their Iraqi personnel and they want them to know that the company is on hand to deliver the core skills they need. “It is my opinion,” Nima concludes, “that if Iraq’s oil industry is to reach its proposed target of producing ten million barrels of oil per day, then it will need a trained workforce of at least 70,000 Iraqis. This gives us great confidence that the market for training in Iraq will increase as the industry grows, and as this occurs we will do what we need to do in order to grow as well.”

For more information about Al Delma visit: www.aldelma.com

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C potentia

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Coca-Cola Sabco

written by: Will Daynes research by: Abi Abagun

Country manager, Simon Everest, discusses the future al of the country and the company’s expansion plans

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Coca-Cola Sabco

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The bottling line in action prior to being packaged

ith its famous white-on red logo, its seemingly endless list of 3,500 global products and it s phenomena l ly successful marketing campaigns, there are very few, if any, companies anywhere that can claim to be as well recognised throughout the world as Coca-Cola. From its beginnings in Atlanta, in 1886, the subsequent 127 years has seen the company reach the point where it today boasts a presence in more 200 countries.

One of these countries is Mozambique. It is here that Coca-Cola Sabco commenced operations in Maputo in 1994, at first employing 80 people. In the years that followed the company would go on to establish a second plant in Chimoio in 1997, with a third opening in Nampula in 2001. As of today the company employs close to 1,000 people.

“We have come an awful long way since we produced our first product in Maputo in May 1994,” states country director, Simon Everest, “but it has been in the last several years in particular that the market here has really begun to evolve. In a country where per capita income is less than $1,000, and most of the population live on subsistence levels, carbonated soft drinks have been regarded as very much a luxury item. Now as the country becomes wealthier, primarily due to the increase in mining and oil and gas operations, the products we produce become much more accessible to the masses.”

As Everest goes on to highlight, this increased wealth has not gone unnoticed

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Experts in Sugar and Biofuels Czarnikow is a sugar and ethanol trading, advisory and supply chain management firm.

Operating globally from offices across the world, Czarnikow has a reputation for high levels of client service and ethical standards throughout the supply chain and is renowned for its world-class market information and analysis.

For more information please visit www.czarnikow.com

A partner of Coca-Cola SABCO(Mozambique)

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

Seen www.bus-ex.com

Coca-Cola Sabco by a number of competitors, Czarnikow however Coca-Cola Sabco has Czarnikow is a sugar and ethanol trading, advisory and something very important supply chain management firm. on its side. “Where we really Czarnikow trades products globally from 12 offices and score is the fact that our employs around 190 people. Its registered headquarters distribution levels are second are in London and it has eleven other offices in Delhi, to none. Through the work Dubai, Guangzhou, Mexico, Moscow, Nairobi, Miami, Point Lisas (Trinidad), Sao Paulo, Singapore and Tel Aviv, of our three factories, our giving it a first-hand presence in all major sugar markets network of trucks and our around the world. mobile distribution centres Czarnikow is a service-orientated company whose main we are able to reach customers business activity is the trading of sugar and ethanol on across Mozambique. This is behalf of its clients. It also provides warehousing, logistics, without question one of major advisory and execution services. competitive advantages, that www.czarnikow.com and the fact that the CocaCola brands are recognised in all four corners of the world for their consistent quality.”

One of the company’s more recent product launches has seen it introduce the Minute Maid juice drink brand to Mozambique.

Launched in can form, it is hoped that Minute Maid will increase Coca-Cola Sabco’s share of the strong juice segment that forms a significant part of the non-alcoholic, readyto-drink beverage market.

While there are a number of other brands the company is looking to introduce at various stages of its development in the Head office country, its most pressing concern is to

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ensure that it has the capacity required to supply market demand for its core products.

The way it is doing this is through several major expansion projects.

“First and foremost,” Everest explains, “we have simply outgrown our factory in Maputo. What we have decided to do in order to rectify this is first by installing a brand new PET line, itself a $20 million undertaking, at our facility in Chimoio,

before constructing a brand new factory in Maputo. This new line will see its first product run off in October 2013. Apart from helping us tap further into an area of the country that is becoming a hub for mining, this new line will also provide us with the ability to enter into the water category.”

As the economy of the country develops, Coca-Cola Sabco believes the first thing its inhabitants will want is a water brand

“Coca-Cola Sabco devotes a significant amount of time and effort to various social and community based project”

Fresh bottles ready to be filled and capped

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Coca-Cola Sabco

Inside the warehouse

that they can trust. “The ultimately have sufficient water segment at present,” space in which to house seven Everest says, “is highly lines, this site will initially fragmented, with three be home to two returnable regional players and several glass lines and one PET line.

The year that Coca-Cola smaller bottlers all with The current Maputo PET line commenced operations various quality standards in will be moved to Nampula, in Maputo existence. What we believe thus with the creation of this is that there is now room in facility Coca-Cola Sabco will this market for a national have PET lines established water player and that is what we intend and operational in each of its manufacturing to be once we launch our BonAqua brand units across the country.

As is the case in the majority of the markets in September of this year.”

The second phase of the company’s that the company is present in, Coca-Cola expansion sees it in the process of building Sabco devotes a significant amount of time a 21 hectare greenfield site in Matola Gar, and effort to various social and community on the outskirts of Maputo. While it will based projects, including the redevelopment

1994

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“The fact that we are investing $140 million here over the next three years truly demonstrates Coca-Cola’s commitment and belief in Mozambique” of medical clinics and local schools. CocaCola’s track record in this field led to it being approached by the Clinton Foundation to assist in its distribution of HIV medication throughout Mozambique.

One area that also deserves to be highlighted is the work that the company

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does to establish business opportunities for local people. It does this by setting up individuals with their own vending boxes and a certain amount of core product that they then sell. “We have had some really positive success stories come out of this initiative,” Everest enthuses. “At present

Coca-Cola Sabco

Exterior view of the plant

we tend to focus on women. This approach forms part Coca-Cola’s five-by-twenty programme that aims to empower five million women by 2020 and has already proven very successful in Mozambique.”

When Everest came into the business two years ago, his primary concern was to ensure that Coca-Cola Sabco was able to get its future capacity right. Now, with the aforementioned expansion projects underway, he is confident that by the end of 2015 the business will be in a very good place indeed.

“I think,” Everest concludes, “the very fact that we are investing $140 million here over the next three years truly

demonstrates Coca-Cola’s commitment and belief in Mozambique. Having had a business established in the country for 20 years now we understand the marketplace and have built a strong reputation for ourselves. Now as the country becomes wealthier I feel there is a great future for our products here. Certainly there are many worse places to be and I for one feel truly blessed to be a part of what we are doing in Mozambique.”

For more information about Coca-Cola Sabco visit: www.cocacolasabco.com

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Logistical solutions

Buks Haulage Ltd (BHL) was registered in Zambia in 2004, specialising in the transport of various commodities with value added services and facilities

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HL is a dynamic entity currently offering total logistical solutions within Zambia and sub-Saharan Africa with the norm of business currently conducted in but not limited to Zambia, DRC and Namibia. We are renowned for our ability to bring Logistical Management Methodologies to greater heights through our experience. Our mission is clear, to provide you with optimal Transport and logistical solutions throughout Zambia and sub-Saharan Africa, by combining loads when

“ We are committed to honouring our agreements with our clients on time and at all times�

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possible, ensuring that the vehicles for your product is optimally utilised and maintaining all stock levels on a weekly, monthly basis.

We are committed to honouring our agreements with our clients on time at all levels and to remain professional at all times. Honesty, transparency and objectivity in dealing with clients are non–negotiables at BHL. We have also developed a powerful contractor base which is both an empowerment initiative and beneficial to your organisation. Each client is treated individually and offered real time management solutions pertinent to their organisation. We give you peace of mind to focus on your core business, while we manage your transport/logistics.

In our experience, sound project management is vital and determines the success of both long and short term

Buks Haulage LTD

projects. Excellent communication is of the essence for effective decision making, delegation of tasks and liaison with all our customers at all levels.

The assigned manager will ensure that the project team develops a sound understanding and appreciation for our client’s business. BHL does not enforce the use of any specific methodology, but prefers to use the methodologies, tools and standards set by mutual agreement with our clients. BHL specializes in formalising international delivery instructions either through import or export key transactions. We invoice via commercial invoicing where applicable, i.e. taxation and payment formalities. We will handle export documents, licenses, permits, export

declarations, inspection certificates, insurance documents and commercial invoices. BHL works in conjunction with the clearing and forwarding agency. Local deliveries in Zambia will be done via mutual agreement.

We are also a subsidiary of a listed company in South Africa (Cargo Carriers).

Buks Haulage Ltd Chilanga Cement road P.O. Box 70700 Ndola Zambia

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T +26 (0)212 671404 E buksvr@bhl.co.zm www.bukshaulage.co.zm

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cleaning up the competition Increase your production, the reliability and lifetime of your equipment - and the lifetime of your oil!

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0 percent of breakdowns in oil systems are related to contamination issues. The key to reliable machinery is maintaining clean oil.

C.C. JENSEN is a global leader with 60 years’ experience in oil filtration.

CJC™ Fine Filters and CJC™ Filter Separators remove particulates, water, and oil degradation products from the lubricant which allows organizations to increase production, improve equipment reliability, extend the machine life and reduce oil consumption.

“ Operating conditions for hydraulics and other fluid systems are especially harsh in mines and quarries” 336 | be directory

Operating conditions for hydraulics and other fluid systems are especially harsh in mines and quarries. Extremely dirty environments, rough terrain and severe weather conditions reduce the lifespan of oil and equipment. Dirt and other particulates that get trapped in machine clearances create abrasive and fatigue wear and lead to premature failure of critical components while water contamination results in pitting, intensifies the oil degradation process and can lead to corrosion.

Traditional filtration systems often struggle to capture the sheer volume of contaminants encountered in mines and quarries without requiring frequent filter and oil changes.

Installation of CJC™ Fine Filters and CJC™ Filter Separators with 3µm absolute filtration is the most effective and economical way to maintain oil in most systems found in mines and quarries. Clean oil

C.C. JENSEN

systems ensure machine uptime.

All CJC™ Filter systems have an unmatched high dirt holding capacity (pounds compared to ounces) and can be adapted for EEX certification.

Units can be sized to accommodate any lubricant viscosity, reservoir volume, power requirements and expected temperature fluctuations for any piece of equipment from the haul truck and loader to the primary crusher, refinery ball mill and beyond.

CJCTM Filters can also purify fuel oils (diesel). Standard sample ports provide easy access for CBM testing while an optional Oil Contamination

Monitor (OCM) can be incorporated for instant monitoring of the oil condition to prevent breakdowns.

To learn more about how CJCTM Filters can improve your equipment reliability or to schedule a plant trial, please contact us direct.

C.C. JENSEN, Inc. Caren Caffrey Account Manager, Mining T (770) 683-6823 E caren@ccjensen.com www.ccjensen.com

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solid engineering Chritech is involved in mechanical, civil and general building engineering works including equipment and labour supplies

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ut of the pictorial evidence of jobs done or played part in, we seek to introduce ourselves or re-echo our existence in Civil, Mechanical, Electrical Engineering works and Heavy duty equipment hiring both to the mining industry and the general construction setting with the aim of bringing required results to peculiar challenges.

Chritech Engineering Services is

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a mining and general engineering contractor registered under the registration of business name act, 1962 having complied with the companies code of Ghana.

Our core competencies cover Design and Constructional works for processing plants, (Personal and Corporate), Tailings Dam, Stockpile Management, Dust Suppression and Long Haulage of Bulk Material, Labour and Material supply.

Based in Bibiani, a mining town in the Western Region of Ghana, we have the ability to arrange and quickly move to site far and near at reasonable notice.

We maintain the highest safety standards in managing our contract to suit the standards set by our clients. We position ourselves “fairly” of the rate range in relation to

Chritech Engineering Services

other competitive service providers within the sub-region, out of which we still meet standards in all aspects of our operations.

We hope you will be able to match our core business and competencies to your “Total Quality Management (TQM) and “Modern Industrial Best Practices.”

Chritech Engineering Services P. O. BOX 153, Bibiani, Western Region, Ghana, West Africa T +233-31 20 99 019 E eschritech@gmail.com

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unrivalled service

With our broad product support infrastructure and unmatched service capabilities, we are an industry leader in helping customers maximize their equipment uptime

F

inning International Inc. is the world’s largest Caterpillar equipment dealer delivering unrivalled service to customers since 1933.

Finning sells, rents and provides parts and service for equipment and engines to customers in various industries, including mining, construction, power systems, petroleum, and forestry.

Finning delivers solutions that

“ Finning delivers solutions that enable customers to achieve the lowest owning and operating costs while maximizing equipment uptime” 340 | be directory

enable customers to achieve the lowest owning and operating costs while maximizing equipment uptime.

Headquartered in Vancouver, British Columbia, Finning operates in Western Canada (Alberta, British Columbia, the Northwest Territories and Yukon), South America (Chile, Argentina, Bolivia and Uruguay), as well as the United Kingdom and Ireland.

“Finning has reached an exciting stage in its development as an organization. We have a strong tradition of success and a rich legacy of providing great service for our customers. Building on this foundation and fueled by our strategy, our partnership with Caterpillar and our people, we are delivering on our commitment to sustainable and profitable growth.

The future that I envision for Finning is:

finning

• A company distinguished by its highperformance culture; • A solutions-driven company that offers truly differentiated services to customers and earns their loyalty; • A n organization that achieves on-going success through reinvestment in the business.

Finning´s President and CEO

finning Av. Los Jardines 924.

Ciudad Empresarial Huechuraba, Santiago Chile T 56-2-927-7000 www.finning.com

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Minopex.

Your Partner In Profitability Minopex is a leader in contract operations and plant maintenance, adding value to mining operations throughout the world with its unique approach to meeting the individual needs of its clients

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y contracting your plant operations and maintenance out to Minopex, your mine can focus on its core competencies of bringing mineral wealth to the surface and marketing it.

Minopex carries multisite ISO 9001:2000 certification and operates all its plants to these standards.

From coal, chromite and ferrous metals to diamonds, gold and platinum, Minopex offers a range of services designed to make your mineral processing requirements

“ From coal, chromite and ferrous metals to diamonds, gold and platinum, Minopex offers a range of services” 342 | be directory

more cost-effective while maintaining product quality, plant integrity and safety for all its employees.

Benefits Of Partnering With Minopex • 24/7/365 plant management and operation by skilled professionals • Lower risk • Lower CAPEX and maintenance costs • Improved productivity • Fewer human resource requirements • A choice of flexible contracts including • Fixed cost with operational labour with spares and consumables purchased on a cost plus fee basis • Fixed cost with a variable cost on a rate per plant feed ton • Overall variable rate per feed ton • Overall variable rate per product ton

Minopex

Minopex Capabilities & Services • Process and engineering • Metallurgical quality management, control and analysis • Scheduled and preventive maintenance • Condition monitoring and analysis • Purchasing, stores control and asset management • Cost control • Contract management and administration • Health and safety • Skills development • Environmental management in conformity with the employer’s overall EMPR • Specialist sub-contractor management

• Laboratory operations and maintenance • Waste/discard and tailings dump management • Commissioning services Whatever you mine, leave your processing plant operations and maintenance to Minopex. We are your partner in profitability.

Mineral Operations Executive (Pty) Ltd Ground Floor, Building 7, Pinewood Office Park, 33 Riley Road, Woodmead, 2196 T +27 11 785 7000 www.minopex.co.za

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PRODUCTIVITY FROM MINESIGHT TO YOUR SITE For mine modeling, design, scheduling and operations, companies seeking an integrated software package are increasingly turning to MineSight. At the surface and below it, new MineSight technology is now set to make mining even more productive

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ineSight is Mintec’s comprehensive mine modeling and mine planning software. It’s built on more than 40 years of developing models and mine plans for projects worldwide. Thanks to Mintec’s network of branch offices on every continent, MineSight is backed by unparalleled service and support.

3D graphics are integral to MineSight and have been continually developed to enhance the software.

At the heart of the software, MineSight 3D provides interactive display and editing of all types of data, including

“ We deliver efficiency and reliability that improves productivity at every stage of your mine’s life” 344 | be directory

drillholes, 3D Block Model, geologic interpretations, topographic contours, and gridded or triangulated surfaces.

It has sophisticated interpretation tools for geologists, full 3D design for underground mine layout, CAD editing of polylines and solids, full 3D solid intersection solid and visualisation of all types of geological and mining data.

Underground, MineSight CAD tools in MS3D can be used to complete the layout of a mine, creating all the required vents, ramps, tunnels and access shafts that sit and interact with the mineral location at appropriate points.

Just in time for its annual MineQuest seminar series, which kicks off in Tucson, Arizona, April 15-19, Mintec is excited to introduce several new products. It’s an appropriate venue because much of the new technology is borne of the client-developer collaboration embodied by MineQuest.

Mintec New releases include: • MineSight Atlas, an activity and resource-based scheduler.

• M ineSight Implicit Modeler, a mathematical tool enabling geologists to build complex shapes directly from drillholes.

• MineSight Performance Manager, the newest, fully-integrated addition to MineSight’s operational product suite, featuring consolidated reporting and true mining analytics.

• MineSight Reserve, which unifies the consolidated power of MineSight’s reserve engines and features a completely integrated reserve calculation and reporting engine.

• MineSight Stope, a complete toolkit for stope design, scheduling and reporting.

• MineSight Surface Resloping Tool, an invaluable addition to MineSight 3D’s Engineering Open Pit CAD, enabling engineers to reduce a shape (i.e. waste dump) to a desired final slope while balancing cut and fill.

• MineSight Sub-Blocking, which extends MineSight model files to convey detailed information along, for example, contact boundaries of geologic zones.

• Model Center, which initializes and manages models directly from MineSight 3D. When it comes to a general mine planning package, MineSight is unique, says Mintec president John Davies.

Combined result - drillholes, mineral solids, block model and the access shafts

“We have the only standard package that can address the full needs from exploration to operation; with software we have authored ourselves - we don’t resell third party scheduling tools,” says Davies.

“This, combined with a stellar support team makes us a very strong player in the GMP space.”

Mintec, Inc. 400-1286 Homer Street Vancouver BC V6B 2Y5 Canada T 604.681.4547 www.minesight.com

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leading car rental

Motor Plan S.A. is the exclusive representative of the multinational franchises National Car Rental and Alamo Rent A Car in the Dominican Republic. It is one of the leading and fastest growing car rental companies in the country and has almost forty years in the car rental market since its opening on December 17, 1973

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otor Plan has a broad and diverse fleet of rental vehicles. The fleet is formulated according to the guidelines of the brands represented and complying with the most stringent international quality standards. It offers a wide range of vehicles to satisfy each client’s needs with categories ranging from economic to full size cars, pickups, minivans, all terrain and luxury vehicles. The optional services

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include attractive comprehensive protection options for vehicles and users plus accessories such as GPS’s.

Motor Plan transforms vehicle rentals into transportation solutions where corporate clients can reduce significant financial and maintenance costs as well as those associated with human resources. In addition, companies avoid interruptions in their operations due to unforeseen events or repairs, permitting them to address their efforts solely on the company’s business without setbacks.

Motor Plan is responsible for all matters concerning customer fleet maintenance as well as implementing continuous monitoring programs which ensure a sustained process improvement and

Motor Plan S.A.

providing a substitute vehicle every time there is a necessity.

Motor Plan has a team of committed professionals offering personalized and efficient support. It maintains on-going training programs for its personnel at local and international levels.

Day to day Motor Plan keeps innovating to anticipate market tendencies, improving its operations, including new categories of vehicles that satisfy the new needs of the

customers and continue positioning the company as the trend setter of the Dominican car rental market.

Motor Plan S.A. Abraham Lincoln #1081 Edificio Ambar 4to.

Piso.

Santo Domingo, Rep. Dom. T (809) 562-1444, Ext 3002 www.nationalcar.com.doo

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lifetime care Normet provides advanced solutions for selected customer processes in underground mining and tunnelling

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e have 50 years of experience in the development, production and sales of equipment and vehicles for underground mining and tunnel construction. In addition, we provide construction chemicals for these industries and comprehensive range of life time care services for maintenance and operating processes throughout the entire lifecycle of our products. With over 8000 delivered machines we have become one of the market leaders in our product segments.

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We at Normet believe that our success comes especially from customer satisfaction. Our business vision is focused on fulfilling our customers’ needs by exceeding their expectations.

Partner networking, product quality, environmental issues and safety are main priorities for Normet.

Our key mission is to improve the health and safety of underground workers by mechanizing and automating the most hazardous and demanding stages of underground mining and tunnelling, while increasing the productivity and efficiency of customers’ processes by optimizing them to save time and money.

Our offering consists of solutions for the following underground customer processes: • Concrete Spraying and Transport • Explosive Charging • Lifting and Installations • Underground Logistics • Scaling

Normet

Our company’s head office with Group and R&D functions is located in Iisalmi, Finland, and manufacturing is done in Iisalmi, Santiago de Chile and Ludvika, Sweden. In order to react better and faster to changes in our customers’ environments and needs we have established a distribution and service network with headquarter in Switzerland and sales and support facilities in 36 own locations in 22 countries around the globe. Normet employs over 900 business professionals. Normet Group’s turnover in 2011 totalled EUR 170 million.

Normet’s quality system has been certified to conform to the ISO 9001 standard. In addition we have ISO 14001:2004 Environment certification and OHSAS 18001:2007 Safety certification.

Normet Normet International Ltd Rothusstrasse 21 CH-6331 Hunenberg Switzerland T +41 41 768 5205 www.normet.com

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a company with vision

PPE Technologies is an Integrated Electrical Engineering Organisation, focused on supplying high technology systems and solutions to Mining operations, utilities and industry

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he PPE Technologies management team are very hands on and still practice their engineering skills in a consultative and advisory role to customers, in so doing, the company management remains in touch with core business matters and customers needs.

The company was founded in 1998 and has its head office in Nelspriut, Mpumalanga, South Africa, with a number of satellite and site offices

“ We want to provide world class service, focused on adding value to customer process throughout Africa�

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through South Africa. Although PPE provides general electrical and instrumentation engineering and installation services, the company has a number of speciality services that are not commonly available.

PPE has several business divisions including an Engineering Department for electrical and instrumentation design and commissioning services, an Installation Services Department for onsite maintenance works and installation works, a Project Department for providing turn key project services on an EPC and EMCM basis and an Electrical fitment shop facility providing motor control centres, power distribution boards, PLC and DCS panels and a wide range of electrical and instrumentation solutions. The PPE product sales department develops customer services and provides sales and after sales support. This includes a range

PPE Technologies

of premier electrical and automation products through agency agreements with manufacturers such as ABB, Clearline, Rittal, Beckwith Electric.

The PPE engineering team focuses on more specialised engineering services, intent on adding value to the customer process with dynamic and out of the box thinking on existing or new plants. Our engineers and technicians have vast experience with the design of power plant systems, reticulation networks and plant control systems. Engineering services include power quality assessments, protection systems design and grading, network

studies and modeling. Speciality services include plant earthing studies and measurements, co-generation plant protection and controls, energy efficiency solutions and power quality improvements.

PPE Technologies PPE House Unit A2, Central Park No 12 Suikerriet Street Nelspruit, Mpumalanga 1200, South Africa T (+27) 13 752 3570 www.ppetech.co.za

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computer simulation

Simulation Engineering Technologies (SET) is an independent consulting company and a leader specialising in creating accurate discrete-event computer simulation models of complex systems in mining, logistics, manufacturing and service industries

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ur team consist of a number of industrial engineers with a unique blend of experience in conducting simulation studies to provide maximum value to clients.

Using simulation technology has many advantages and has become mandatory for leading companies when performing due diligence studies of a new mine, process design or prior to changing current design parameters. The following are only a few of the advantages of using computer simulation:

“ Using simulation technology has many advantages and has become mandatory” 352 | be directory

• Reduces risk • Provides an insurance policy •E nables managers to make better decisions • Capital avoidance • Captures randomness and variance • Improves profits Computer Simulation Solutions Mining Underground mining • Rock handling systems • Rail & truck haulage systems • Mining methods and cycles • Mine development • Personnel and material logistics Open pit mining • Excavator / Loader / Shovel loading • Truck queuing models • Crushing and conveying Surface • Stockpiling and blending • Processing plants and smelters

Simulation Engineering Technologies

Manufacturing / Assembly Lines Logistics Rail Transportation • Rail fleet requirements • Loading/offloading rate requirements • Rail network design Ports • Vessel loading / offloading rate requirements • Berth utlisation and vessel demurrage • Capacity planning Our services • Simulation/industrial engineering consulting • Capacity planning

• Operations improvement • Work study • Simulation software training • Simulation software sales We utilize, provide training and support in the Simio, Arena and SimMine simulation software packages.

Simulation Engineering Technologies Bastion House, 52 Lyttelton Rd, Clubview, Centurion, 0157, South Africa T +27 (0)12 660 3772 E info@setec.co.za www.setec.co.za

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Included The BE Mining Directory showcases leading mining organisations from across the world, ranging from big corporations to junior mines and their supply chains.

Be seen throughout our portfolio of magazines: •BE Mining Directory •BE Mining •BE Weekly •BE Monthly •

To find out how to get involved contact: vincent@bus-ex.com