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ISSUE No. 44 | www.bus-ex.com

vodacom tanzania:

Bringing technology to Tanzania How Vodacom Tanzania plans to remain the country’s leading cellular network

natsteel:

Berco an Aramex Company:

smtc:

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 84 to see this week’s listing 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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info@bus-ex.com Infinity Business Media Ltd

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 Dominique Karg

Co-founder and chief hacker at security management firm AlienVault, where he combines his two computer related passions: security and open communities.

David Chancellor

Partner at executive search firm Tyzack Partners. David leads Tyzack’s Financial Officer practice which crosses all industry sectors and all aspects of Finance.

Suite 22, St Francis House, Queens Road, Norwich, NR1 3PN Tel: +44 (0) 203 137 7100 Fax: +44 (0) 1603 666466

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issue No.44 6 Entrepreneurship

Can you hack it?

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

6

12 Strategy

Succession planning

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

18 Vodacom Tanzania

Bringing technology to Tanzania Vodacom managing director for Tanzania, Rene Meza, discusses how Vodacom Tanzania is continually evolving its product and service offerings in order to remain the country’s leading cellular network.

18

26 Berco – an Aramex Company Two giants unite

Chief executive officer, Andy van der Velde, discusses how, over the course of two decades, a small, family-run business has been able to transform itself into a leading international logistics provider.

38 Grafton Everest RELAX WITH DIAMONDS

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South Africa’s leading manufacturer of lounge suites innovates to grow and is currently planning to capture the increasing demand for fine furniture in the vibrant economies in other parts of the continent.

contents

50

50 NatSteel

As strong as steel How the success of NatSteel’s offsite prefabrication of steel reinforcement products and services have helped refocus the business.

58 SMTC

The perfect manufacturing partner SMTC is committed to delivering the right solutions to innovative partners around the world. Learn how the company has successfully evolved into the business that it is today.

66 Adrok

Looking beneath the surface For more than 15 years Adrok has been a pioneer in the field of geophysical services. Managing director, Gordon Stove discusses the next stage in the company’s growth and what it entails.

58

76 EMED Mining A GIANT WAKES

EMED Mining, listed in London and Toronto, is a tiger in the economy of Spain, ready to spring into large scale copper production at the end of this year: it may not save the economy but it will help.

BE Directory

66

84 Arlona Engineering

PROUDLY SOUTH AFRICAN

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Can you h

A successful hacker-turn about what he looks for

written by: Do

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Entrepreneurship

h ck it?

ned-business-owner talks r in potential employees

ominique Karg

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Entrepreneurship

E

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

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

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

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

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

As a hacker, my instinct

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

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

What about the box?

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

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

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

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

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

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

If it gives me an edge then

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

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

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

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

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

Entrepreneurship

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

Surely the education system has failed them!

While I wouldn’t advocate every primary school child

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

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

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

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

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

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

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

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

written by: David Chancellor

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Strategy

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T

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

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

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

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

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

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

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

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

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2015

2014

2013

2012

2011

Strategy

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Bringing technology to Tanzania Vodacom managing director for Tanzania, Rene Meza, discusses how Vodacom Tanzania is continually evolving its product and service offerings in order to remain the country’s leading cellular network

written by: Will Daynes research by: Dave Brogan

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Vodacom Tanzania

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I

t was in 1993 that, with the passing of the Communications Act, the government of Tanzania began to plot a course to liberalise the communications sector within the country. In the years since competition has gradually increased in the fields of mobile cellular services, radio paging, internet and data communication services, helping to affirm the communications sector as one of pillars of Tanzania’s social and economic development.

Today the title of leading cellular network in the country belongs to Vodacom Tanzania, a subsidiary of the Vodacom Group that was created in the aftermath of Vodacom securing the winning bid to operate a GSM cellular network and provide Public Land Mobile Network (PLMN) services in December 1999.

Having gone live on 14 August, 2000, the company had connected 50,000 subscribers with its first four months of operation, before taking this number past the one million mark by the end of September 2004. In January 2007, Vodacom Tanzania reached another milestone when it brought its connected subscriber base up to three million, becoming the first mobile network in the country to do so. Today, it serves more than 10 million customers and counting.

As the company has grown, so too has its commitment to supporting the community in which it does business. The Vodacom Foundation has supported over 120 projects in the country in the areas of health, education and social welfare. From building classrooms to spearheading the fight to eradicate fistula, a complication of child birth, in Tanzania by 2016, Vodacom Tanzania is committed to

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Vodacom Tanzania

using its technology to augment government efforts to achieve its Millennium Development Goals so as create a better life for all.

“In recent years,” explains Vodacom managing director for Tanzania, Rene Meza, “the telecommunications sector in Tanzania has been driven by a gradual merging of technology. Not long ago, a fixed line telephone was a luxury item enjoyed by the vast minority of people and this too was the

case when it came to mobile phones. Fastforward to today and the mobile phone has completely transcended the action of simply making and receiving calls, allowing users to carry out financial transactions, access the internet, watch movies and so forth.”

In order to meet this ever growing list of consumer demands and requirements, Vodacom Tanzania has brought a number of innovations and first to the market. Perhaps

“The Vodacom Foundation has supported over 120 projects in the country in the areas of health, education and social welfare”

Head of Vodacom Foundation, Yessaya Mwakifulefule (right) hands over medicines to Dr. Haruna Mhina, the Chief Medical Officer at Nyamisati Medical Center, Rufiji District, Pwani Region

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Vodacom Tanzania

Salim Mwalim, External Affairs Manager, Vodacom Tanzania (right) speaks to bank customers in Dar es Salaam recently, when Vodacom conducted an M-Pesa education day

the service that stands out the comfort of their homes.

Today we have 40,000 active most is its M-PESA money transfer service. agents and 4.5 million active “This is a total payment M-PESA users, while more than 200 organizations accept solution,” Meza continues, bill payment via M-PESA” “which does not require users to have bank accounts.

Given the vast majority’s This was an important inability to meet banking Active M-PESA users in the country today consideration when it comes condition in Tanzania, mobile money transfer is a major to Tanzania as it is home to literally millions of people driver of the sector. A youthful who do not operate bank accounts and can and educated population which is constantly barely meet the minimum qualifications seeking to be at par with the rest of the world to open account. With M-PESA, Vodacom demands services that will enable it to get there.

Indeed, Vodacom Tanzania sees itself customers can deposit up to TSH 5m/- for free, send and receive money and withdraw today as being much more than simply a cash from any agent in the country. They mobile phone company, transforming itself can also access their bank accounts from over the years into a total solutions provider.

4.5

million

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Vodacom Tanzania Managing Director, Rene Meza, addresses guests during the launch of LTE trial in Dar es Salaam recently

Kelvin Twissa, Head of Brand receives certificate at 20

“Vodacom customers can meet all of their communication requirements with a single service provider” In an effort to cater for ever growing corporate needs in the country, Vodacom recently established its Vodacom Business division, a leading provider of converged communication solutions that are customercentric, technology-driven, cost-effective, and innovative and generate sustainable value.

“Vodacom customers,” Meza says, “can now meet all their communication requirements,

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from mobile telephony through internet access to hosted applications, with a single service provider. Through the division, we are able to offer a comprehensive portfolio of access technologies and data solutions to help organisations of all sizes achieve the agility they need to compete successfully in a connected world.

Despite the considerable progress that the

Vodacom Tanzania

d Marketing and Communication, 012’s Employer of the Year Awards

Vodacom Tanzania is opening up customer shops across the country in order to serve its customers effectively

company has made in Tanzania, challenges do still remain. Limited spectrum resources, for example, continues to hinder the implementation of certain technologies that require the use of spectrum in specific bands.

This often results in delays in, or failure to, implement innovative services or programmes that are seen as very much needed in order to place Tanzania on par with other countries in terms of technology.

Nevertheless, Vodacom Tanzania is buoyed by the fact that the Tanzania Communications Regulatory Authority (TCRA), through various administrative actions, has been able to minimise the impact of this challenge and is continuing in its efforts to optimise the utilisation of spectrum resources.

As he looks to the immediate future, Meza has a pretty good idea of where the industry is heading and the role Vodacom Tanzania has to play. “I believe that we will continue to see a merging of technologies driving market trends and growth, with virtually anything that can be connected, being connected via Vodacom technology. With the distinction between communication services and broadcasting for example becoming increasingly blurred, this is certainly an exciting time for this industry.�

For more information about Vodacom Tanzania visit: www.vodacom.co.tz

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Two giants

unite

How, over the course of two decades, a small, family-run business has been able to transform itself into a leading international logistics provider

written by: Will Daynes research by: Paul Bradley

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Berco - an Aramex Company

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Berco - an Aramex Company

T

ake a look back through history and you will find that the plot of many of the greatest stories ever told revolve around a protagonist who, from humble beginnings, goes on to achieve great things. It is equally true to say that some of the most incredible business stories share the same theme, with a great many today originating from the rapidly developing economic backdrop that is Africa.

Founded in 1992, Berco Express began life, like many other companies, as a small, family-run business, focused on delivering courier services between Johannesburg and Cape Town. By fully embracing its own mantra of delivering constant, never-ending improvement, the company grew organically over the subsequent years to the point where it now boasts a total of 16 branches and three warehouses across the country.

“In 2004”, explains van der Velde, “we decided to embark on taking the business to a completely new level in terms of offering a much broader range of services including active warehousing, clearing and forwarding, domestic and international courier services.”

Steadily expanding through the market, Berco Express would go on to establish its branches in several main centres of commerce as well as key second tier centres such as Rustenburg and Kimberley. It was then in 2011 that it was acquired by the Dubai listed global organisation, Aramex.

Founded in 1982, Aramex today employs more than 12,300 people in 353 locations, across 60 countries. A leading global provider of comprehensive logistics and transportation solutions, the range of services offered by

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RBS Berco Express and RBS have enjoyed a longstanding business relationship spanning more than ten years. Berco’s clients rely on them to deliver their goods on time and accordingly, Berco, relies on RBS to ensure that the appropriate coverage is in place and sound risk management is implemented to avoid interruption to their business processes. This means a meticulous approach to managing their insured items and a quick turnaround time on claims that they may have. Having a strategic insurance business partner like RBS is key to Berco’s on-going success.

RBS is one of the largest insurance brokerages in South Africa. They specialise in personal and commercial insurance products including a number of specialist products that they have designed specifically for marine,

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property, financial lines and construction insurance. RBS insures a number of South Africa’s Top 300 companies. Their competitive advantage stems from developing complete, scalable solutions for clients, rather than finding the ‘next best thing’. “It has been our core value since we first opened, says CEO Michael Petersen.” We started this business because we saw a need for custom solutions as every business and individual is different.”

RBS’s clients can choose from a large stable of insurance and insurance related products and services, managed by a carefully selected team of 130 people that include a number of industry experts.

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Berco - an Aramex Company

An Aramex courier

Aramex includes international and domestic along the way to become what we are now, express delivery, freight forwarding, logistics which is a fully fledged logistics provider, and warehousing, records and information linked to a big global player that itself has management solutions, e-business solutions, the fifth largest worldwide network.” and online shopping services.

The expansion of various industry sectors in A founding member, and chair, of the Africa may no longer be breaking news, but it Global Distribution Alliance (GDA), Aramex remains the core driver for growth in the region leads a strong alliance of over 40 express and and is the biggest contributing factor towards logistics providers from around the world, each Berco – an Aramex Company’s on-going success. specialising in their own region and together “In addition to the fact that today you have an ever increasing number of covering the world with the same, unified quality standards companies looking to sell their and technology of Aramex. goods or services in Africa,” “We have certainly come van der Velde states, “you also a very long way from being have a booming mining sector a small family business,” on the continent that is having The year the company an extremely positive impact van der Velde continues, was acquired by Aramex on companies like us.” “transforming ourselves

2011

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Where the company also excels is in the e-commerce sector, where Berco – an Aramex Company is recognised as the leading courier company. “We certainly have a strong focus on this part of our business, which continues to gather pace at an extraordinary rate,” van der Velde says.

Increasing at a similar rate is the movement within South Africa to outsource warehousing.

“We have definitely seen a big rise in demand for this type of service,” van der Velde enthuses, “in fact, we are at a stage today where just as quickly as we get a new warehouse up and running, we have it filled to capacity. The reason for this is very simple and that is that people don’t have a desire to manage their own warehouses. What they do want is to outsource this service and do so to experts who possess

Berco - an Aramex Company

An Aramex delivery vehicle

“The company has always maintained a core belief that in order to prosper one has to have the right people in the right positions� the right software and equipment, who are proficient at maintaining stock controls and who have a proven track record when it comes to high quality pick and pack operations.�

While much has changed in the 20-plus years that Berco has been around, it has always maintained a core belief that in order to prosper one has to have the right people in the right positions. This belief is shared in Aramex and the company considers several core factors when

it comes to recruitment, focusing specifically on bringing on board individuals with energy, passion and the desire to stretch their wings.

Each year the company makes a concerted effort to recruit a number of individuals fresh from completing honours degrees in logistics.

This past year the company brought eight people into the business following a lengthy, near six-month selection process. These eight people, like many before them, were then

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Fork lift driver in the logistics centre

Berco - an Aramex Company given a single mission and that was to take the company’s business model and turn it on its head, by coming up with new ideas, new ways of bringing added value to its customers and ways to improve the company’s own internal operations.

“These young graduates,” van der Velde highlights, “come into the business with fresh, innovative ideas and we provide them with the platform and the opportunity to make an impact on how this business works.”

Determined to make 2013 as profitable a year as the last several before it, the company is particularly excited about its upcoming launch of a new portal that will allow customers to transact with international e-commerce companies. This solution will allow these people and businesses to shop in places like Dubai, China, the US and Europe, while at the same time allowing companies to bring their goods and services into South Africa in a much more effective way than previously available.

June 2013 will also see the company adopt the new name Aramex South Africa.

“Something that is very important for us,” van der Velde concludes, “is that in little over two decades we have not only managed to establish a very healthy footprint in South Africa, but now, with Aramex, we have established offices throughout Africa.

Our plan now is to continue to build on our previous successes and expand further across Southern Africa in the very near future.”

For more information about Berco – an Aramex Company visit: www.bercoexpress.co.za

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Grafton Everest

RELAX WITH

DIAMONDS South Africa’s leading manufacturer of lounge suites Grafton Everest innovates to grow and is currently planning to capture the increasing demand for fine furniture in the vibrant economies in other parts of the continent

written by: John O’Hanlon research by: David Brogen

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Grafton Everest

D

urban based Grafton Everest was formed in 1953 when two South African furniture brands – Grafton Art Furnishers and Everest Upholsterers merged. That means that Grafton Everest is celebrating its diamond jubilee this year, and it is definitely not failing to make the most of its opportunity.

There is a lot to celebrate. Make no mistake, the market for luxury furniture has been in decline lately, not just in South Africa but world wide. “It has been tough, and it is getting tougher,” says Marketing Executive Jeff Fivelman. “We have a lot of competition from China, and our consumers are as much affected by the global recession as anywhere else in the world.” But Grafton Everest has countered the negative trends by stepping up its core qualities of design and quality manufacture, together with its understanding of the needs of its customer base, to maintain sales volumes and keep its 600-strong workforce busy.

Grafton Everest belongs to the Bravo Group, South Africa’s largest bedding and furniture manufacturer and supplier with eight factories and household names like Slumberland, Sealy, the distribution company Global Sourcing and fellow furniture brands Alpine Lounge and Gommagomma. However Grafton Everest is probably the best known of all the sofa or lounge suite brands in the country, says Fivelman. Having recently restructured its retail showroom in Durban, this jubilee year is a good time to be drawing attention to the products.

The way is being prepared with an event

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Hanni fine quality leathers since 1724 We at Hannitan are proud to be associated with Grafton and would like to congratulate them on reaching their 60th Anniversary

Hannitan Leather, under the management of Rudolf Hanni, has been hailed by many as

one of the cleanest and efficient tanneries in the world. Starting from very humble beginnings Hannitan has expanded into the largest supplier of furniture leather in South Africa, producing an average of 1,200 hides daily. The tannery produces a wide variety of upholstery leathers including, aniline leathers, semi-aniline, full grain, corrected grain, buffed leathers and oil pull-ups in a huge selection of colours. Hannitan manufactures a HANNI range of leather goods including travel bags, hand bags, leather cushions, leather folders and slippers to various outlets . It also offers a customized service manufacturing for various other well known labels and brands. All products are individually cut by hand to ensure the finest quality and craftsmanship.Hannitan supplies its own range of leather care products including waxes, silicones and hydrophobic products.

Tel: +27 (0)11 817 2150 | Fax: +27 (0)11 817 5259 | Email: hannitan@iafrica.com

www.hannitanleather.com

Grafton Everest

Machinist at work

that would have taken place anyway, the built on its diamond mines. “We are giving annual trade show at its Johannesburg away diamond jewellery to the tune of showroom. It’s a bit like the unveiling of a about 160,000 Rand, or nearly $20,000, to new collection by a Paris fashion house. In customers. Anyone purchasing one of our the third week of February Grafton Everest lounge suites will be entered into a draw together with its sister company Alpine to win some fantastic diamond jewellery.”

Lounge welcomed dealers from across It’s a supercampaign, publicised across the southern Africa to preview their 2013 ranges. retail trade, in women’s and household “We put a lot of effort into the show,” he says. magazines as well as on TV – everywhere “And in the diamond jubilee year we are that will reach the loyal Grafton Everest customer base in fact. also putting a lot of effort If that doesn’t catch their into the special promotions we have planned through to attention maybe nothing will, but there are plenty of other the end of July.”

The most striking of these advertising initiatives going is entirely appropriate for on to make sure the company’s Value of 2013 diamond market share doesn’t slip in a company celebrating its promotion 60th birthday in a country these difficult times. “We are

$20,000

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Care is taken when cutting the materials

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finding that the best way to stimulate sales is with promotion and more advertising: it costs money but it’s worth it.” But these customers are discerning. The promotions have to be backed up with innovation, so at a time when some brands are retrenching Grafton Everest customers will notice a lot of exciting new product designs, fresh colours and fabrics, and value added through technology. “We are very much in a fashion industry,” he admits.

In better market conditions manufacturers can perhaps be satisfied with static ranges but when times are hard the winners will be the ones who can really catch the eye of the consumer.

Grafton Everest’s export market died about ten years ago when the Rand became a stronger international currency. In recent years the challenge has come from the east.

Gone are the days when Chinese furniture was either entry-level or, frankly, poor quality. But recently the Rand has weakened against the dollar, bringing down the gap between home made and imported furniture.

Customers are again willing to pay a little more to access the satisfaction of owning a South African product backed by strong and dependable warranties.

And the younger, upwardly mobile customers whose lives are ‘connected’ can find Grafton Everest on Twitter or Facebook.

“Social Media are on the up here,” he says.

“And as well as in the magazines, we are doing regular advertising on TV and radio.”

TV being an expensive medium, Grafton Everest ads tend to be short, frequent, shortterm campaigns put out in off-peak time.

Radio is a new departure. A 30-second plug

Grafton Everest

Work begins on upholstering the suite

highlight’s Grafton Everest’s recent move from its former premises in central Durban to a new 1,200 square metre showroom in Umhlanga, a pleasant beachside suburb only 15 minutes away by car but a lot more accessible and with much better car parking. Here customers can browse 40 different lounge settings with trained consultants to hand, something they could never do at a dealership, so the dealers

send their customers to Umhlanga to make their choice before placing an order. It so happens that the building is shared with East Coast Radio, ‘Durban’s No 1’ so Fivelman and his team decided this would be a great way to tell people the move had happened.

The growth of the middle class in South Africa has been exponential. Trusted brands have benefited accordingly – BMW or Audi

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Grafton Everest

The Grafton Everest factory floor

for the car, and Grafton down with the introduction of ‘leather uppers’. The Everest for the furniture!

The older traditional designs up-market car industry has incorporating ‘show wood’ led the way by using leather are still popular among older on the seats and backs and Area of new Umhlanga buyers but more and more using matching PVC on the showroom people want contemporary low wear areas: it is just another way to make leather sofas with a sleek European look to them. Another trend is that matching furniture more affordable, he says.

At the same time, Fivelman would like suites are becoming slightly less sought after as customers opt for individual pieces and express Grafton Everest to pioneer a resurgence in their individual taste with a mix of styles. the use of fabrics, bringing in more vibrant To support that they need a good range colours like turquoise and red. He keeps a of coverings. Leather, he says, is extremely close watch on what is done in the UK, Europe popular, accounting for 60 percent of today’s and the USA and is a little weary of the drab sales whereas it five years ago that would monochromes that are so common. It is time have been 40 percent. “Again, leather is an to brighten up the whole scene he says. aspirational choice, and its cost has come The biggest growth market in recent years

1,200 M2

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Constructing a motion furniture frame

“Two years ago motion furniture accounted for less than ten percent of our business: now it accounts for more than 30 percent” has been in so called ‘motion furniture’, which when you think about it has revolutionised the business. More and more people want lounge furniture that will adopt different positions, recline, and give leg support as they watch TV. “Two years ago motion furniture accounted for less than ten percent of our business: now it accounts for more than 30 percent, and it is still rising.” Individual chairs and entire suites are now designed with reclining actions – you

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could have five separate actions in a single three-piece suite.

That has big implications for manufacturing.

Making furniture use to call for joinery and upholstery skills: now it needs mechanical and electronic know how to assemble and fit the mechanisms and controls. “It takes a lot longer in the production facility to assemble a suite with recliners – twice as long,” he says.”

That comes at a cost, as more labour has to

Grafton Everest

CAD drawing of a corner suite

be brought in to keep throughput up.

The Grafton Everest factory moved to an area of Umhlanga called Canelands as long ago as 1986. It now covers 24,000 square metres – it is not expanding at present but the company is proud to have been able to keep it going through the hard times without layoffs or short time working. Over the last three years it has invested in automation including CNC laser leather cutting machinery and even automated fabric cutters to minimise waste. “We have brought in technology where it is appropriate because we sell time,” says Jeff Fivelman.

Any spare capacity at Canelands could be mopped up if the company’s plans to expand into new African markets are successful. It already sells well in neighbouring countries, particularly Namibia and Botswana, where

Finishing a leather suite

employment levels are high. Zambia and Zimbabwe are important markets too as is Angola where the Bravo Group has formed a joint venture with a local partner to capture the demand created by that country’s new oil wealth and its large expatriate population.

He would love the chance to sell Grafton Everest furniture in the growing economies of east and central Africa too and is just looking for the right partner – a like-minded, go-ahead local business that understands the quality furniture trade and the fundamentals of distribution and import.

For more information about Grafton Everest visit: www.graftoneverest.co.za

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NatSteel

As strong

as steel President and CEO, Vivek Kamra, discusses how the success of NatSteel’s offsite prefabrication of steel reinforcement products and services have helped refocus the business into becoming a total solutions provider

written by: Will Daynes research by: James Boyle

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NatSteel delivers over 1000 different shapes of Cut & Bend products to suit customer needs

NatSteel

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here are very few places,” states President and Chief Executive Officer, Vivek Kamra, “that have provided a good economic environment to operate in over the last year or so. However, despite the challenges that exist, developing economies within South East Asia have remained reasonably robust.”

The economies that Vivek speaks of include those of China, Indonesia, Thailand, the Philippines and Singapore. These are the countries in which NatSteel, a wholly-owned subsidiary of Tata Steel, today employs more than 3,000 employees. Constantly working to push the frontiers when it comes to manufacturing processes, every year NatSteel produces close to two million tonnes of premium steel products for the construction industry in the region.

In Singapore, the company’s steel products are used for residential, commercial and industrial buildings, and infrastructural works like bridges and MRT lines. “Singapore,” Vivek continues, “has strong construction growth in recent times, both in terms of its own infrastructure and through the many housing projects that have risen to cater for an evergrowing population.”

With the population of Singapore touching the 5.5 million mark, moves have been taken to not only improve the housing situation, but also the city-state’s road and public transportation networks. These programmes are helping to drive growth within the construction sector, as are moves to completely revamp Singapore’s fibre optic and power networks. These undertakings are core to Singapore’s growth plans for the next fifteen years.

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NatSteel’s prefabrication facilities ensures consistent, high quality of products for customers

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One of NatSteel’s specialisations over the years has been its expertise in providing offsite prefabrication of steel reinforcement products and services. Across its Asian operations, NatSteel continues to witness several key trends that are driving the shift towards these, specifically the demand for higher productivity while maintaining safety standards, manpower constraints, space restrictions at construction sites, a demand for faster construction speeds and the need to reduce material wastage.

“Customers are increasingly recognising the many benefits these products and services have to offer,” Vivek explains. “The biggest of these is the yield benefits customers receive from seeing their amount of wastage fall dramatically, that is perhaps the most positive shift they immediately see when moving away from onsite fabrication.”

Having had success providing offsite prefabrication of steel reinforcement products and services in its core markets, NatSteel now has several initiatives underway to expand its offering into other regions. “Singapore on its own has a very unique geography that lends itself favourably to offsite fabrication,” Vivek says. “What this means is that rather than simply replicating the model we have here, we have had to customise it to suit the different needs or different locations.”

In India it is currently promoting the concept to its parent company while also driving it through small service centres where labour remains competitively priced. “One of the things we are doing in small, built-up locations in India,” Vivek says, “is promoting the idea of offsite fabrication by highlighting how it can actually improve onsite productivity. To date

NatSteel

NatSteel’s logistics service

we have established ten service centres that work to promote these products and services in the country’s major metropolitan areas.”

Elsewhere, the company has commenced with efforts to promote its offsite prefabrication of steel reinforcement products and services in Malaysia and China, where it is establishing a facility in the city of Xiamen. Meanwhile, the company already has distribution and processing centres set up in Australia where it is working with its customers to significantly improve their manpower productivity levels.

“In Australia,” Vivek highlights, “we have made considerable progress in automating

our various lines, thus reducing the labour content required for offsite fabrication substantially. As a result of this, productivity levels in a number of our plants have now reached global benchmarks.”

As one would expect, there are a number of successful case studies that showcase the positive results that have been achieved through the use of NatSteel’s prefabricated solutions and expertise. Perhaps the one that stands out the most was the construction of the Stevens underground MRT Station in Singapore, whose site was located on an existing road junction and in a tight urban

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setting surrounded by bridges, houses and was subject to heavy traffic volumes. The project was beset by a number of challenges.

These included the extremely limited site space as a major portion of the road had to be kept open for traffic, significant manpower restrictions due to the government’s stringent foreign manpower policies, site safety and a very tight construction schedule. In addition, the delivery of prefabricated cages to site needed to be perfectly coordinated and timed to minimise obstruction to traffic flow and

for immediate onsite installation so as not to choke the limited site space.

NatSteel provided prefabricated cage solutions for the Stevens MRT station’s diaphragm walls. The cages, which were designed and fabricated precisely at NatSteel’s factory with various cage accessories such as lifting hooks and stiffeners, were delivered justin-time in order to help the customer overcome these challenges. The cages were pre-installed with couplers for easier basement construction which saved significant construction time.

“It is clear that the days of NatSteel seeing itself as simply a steel supplier are in the past”

The Sidelifter system from NatSteel enhances the safety and productivity of material handling onsite

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NatSteel

NatSteel’s automated downstream facilities

Furthermore, the customer was able to save a significant cost by eliminating material wastages and by reducing the level of manpower required onsite, while at the same time maintaining a safe working environment.

By delivering its building solutions at the optimum time, NatSteel ensured it did not choke the limited site space, while the use of these solutions helped relieve the customer of the manpower challenges they had originally faced. Furthermore, site safety was improved and better site management was achieved as a result of there being no rebar fabrication activity taking place onsite, while the customer also benefited from the savings they made from elimination onsite rebar wastage.

As Vivek reflects on where the company stands today and where it wants to go in the

future it is clear that the days of NatSteel seeing itself as simply a steel supplier are in the past. “The interactions we have today with our customers exist on the basis of us being a seller of solutions, not steel. As we continue moving our business further downstream we will investigate ways that we can expand and establish more of these solution centres into other parts of South East Asia where growth opportunities in the construction sector exist.

Meanwhile, we will continue to work to offset the challenges our customers face, providing them with ways to improve productivity.�

For more information about NatSteel visit: www.natsteel.com.sg

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SMTC

The perfect manufacturing partner President and co-chief executive officer, Claude Germain, and executive vice president and chief operating officer, Paul Blom, discuss how the company has successfully evolved into the business that it is today

written by: Will Daynes research by: Candice Nice

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SMTC PCB Test

SMTC

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oday a global Tier II Electronics grow its top line significantly more than Manufacturing Services (EMS) the industry average as a result of its focus provider, delivering integrated on business development and account cont r ac t ma nu f ac t u r i ng management. “While we are not of the services to original equipment view that we can reinvent the economics manufacturers within the industrial, of being a Tier II EMS player,” Germain computing and communication market continues, “what we do know for sure is segments, SMTC has come a long way in its that we can always do a better job when it comes to driving our top line. Thanks to our 25-plus year history.

After going through a phase of adoption of various strategic initiatives we consolidation during the 1990s, the market have been able to grow our top line in the crash of 2001 resulted in the company, last year by as much as 36 percent. It was headquartered in Ontario, Canada, having this achievement that saw SMTC presented to deleverage its assets in fairly rapid order. with the Frost & Sullivan award for being This led to a near ten year the fastest growing global period where the company EMS player in 2012.” focused itself on retaining a Where the company has solid balance sheet. garnered similar praise over “By 2011, the process the years is in its use of world class IT systems and tools to of deleveraging was Top line growth SMTC largely complete,” explains support the core processes has achieved over the president and co-chief related to engineering, supply last year chain and manufacturing, executive officer, Claude Germain, “so we embarked providing customers with upon a more balanced strategy that focused significant added value. on growing our operating cash flow, and “The IT systems we utilise,” states executive increasing the investment in our business. vice president of operations, Paul Blom, “are Since 2011, and by reducing our costs and absolutely key to our success, and to the increasing our top line, we have generated services that we bring to our customers. additional cash. We have invested this into We leverage Agile and Valor to support working capital to support our top line engineering and new product introduction growth, into upgrading and modernizing activities. Agile is also key to the management our equipment, into engineering and of several hundred thousand part numbers design, and into mergers and acquisitions.” and a high volume of customer engineering Business conditions in the electronics changes per year. Meanwhile, on the market have a tendency to oscillate from procurement and quoting side, Quotewin by year to year. Though 2012 was not a stellar PolyDyne is used to support a global quoting year for the industry, SMTC was able to and commodity management process. And

36%

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As the leading provider of strategic sourcing and quote management software, PolyDyne solutions streamline processes in product costing, commodity management, contract negotiations and outsourcing decisions.

Email us at: info@polydyne.com 512-343-9100 www.polydyne.com

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SMTC finally, Kinaxis is used to Exact MAX execute planning, demand With decades of experience serving entrepreneurs, Exact simulation and production understands the issues that manufacturing companies face planning activities.” when running their business. Exact MAX helps growing These platforms have manufacturers control their resources with an easy-to-use been tailored to perfectly solution that reduces the cost of manufacturing, automates complement one another manufacturing compliance, and improves profitability all while enhancing customer service and satisfaction. and remain constantly Through seamless integration with Microsoft Dynamics GP and updated so as to provide Intuit QuickBooks, MAX offers the power of integrated ERP SMTC with the most up-toand boasts a particularly strong footprint with manufacturers date data available when it that must maintain compliance with government or industry comes to customer forecasts, regulations, manage recalls and control and document product bills and materials and revisions and engineering changes. engineering changes. By max.exactamerica.com updating the said platforms on a continuous basis the company is able to ensure that it is always procuring and quoting parts at the most accurate of levels, while also doing a rapid job of introducing new products.

“Increasing SMTC’s contribution to each of our customer relationships,” Blom highlights, “is our value engineering team.

Working closely with our customers, leveraging the skills of our strong internal team, and involving external partners, we identify appropriate opportunities to achieve cost and lead time reductions. The SMTC value engineering team focuses on design-for-manufacturing, design-for-supply SMTC engineering

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“I see SMTC continuing to evolve the ways in which we deliver services to our customers, and investing further in both IT systems and employee skills” chain and the leveraging of SMTC’s global procurement capabilities.”

Another example of the way SMTC strives to work with customers every step of the way, is its ability to undertake what it calls AVL expansion projects. It is during these that

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the company goes back to its customers and presents recommendations on who to add to the approved vendor list on the bill of materials to drive cost and lead time reductions, and product life cycle optimization.

“During these AVL projects,” Blom says,

SMTC

SMTC manufacturing plant

“we focus on several key areas, the first is driving cost reduction by leveraging our preferred suppliers. The next is a focus on risk reduction and improved continuity of supply, particularly during periods of material shortages – here we look to increase the number of options available for global sourcing of components and assemblies.”

Looking forward, Blom points out that SMTC’s customers will continue to experience various competitive pressures within their markets, thus they will continue to turn to SMTC to provide proven value engineering and supply chain solutions. “I see SMTC as

a business continuing to evolve the ways in which we deliver services to our customers, while at the same time investing further in both IT systems and employee skills. Each customer has different needs, evolving over time. It is key that we proactively anticipate these requirements, bringing the right solutions to our customers at the right time, in order to address these needs.”

For more information about SMTC visit: www.smtc.com

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Looking beneath

the surfac

For more than 15 years Adrok has been a pioneer in t geophysical services. Managing director, Gordon Stove the next stage in the company’s growth and what it en

written by: Will Daynes research by: James Boyle

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Adrok

ce

the field of e discusses ntails

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Coal bed tracking using a 4-channel receiver system in eastern Australia

Adrok

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he US alone,” managing director, Gordon Stove enthuses, “represents the single largest geophysics space in the world, with a revenue generation of over $2.4 billion a year from geophysical survey services alone. This is just one of the reasons why we are so keen to expand into that part of the world.”

Until the turn of the year Adrok serviced the US market from its headquarters in Edinburgh, yet it has always known that having an indigenous base in the countries in which it operates would be of great benefit.

The next logical step for the business was to open a base in the country, which it did in February 2013 with the opening of Houston, Texas, based Adrok Geosciences.

“One of the challenges we had before setting up this office,” Stove highlights, “was that we had a limited ability to promote ourselves and our technology to clients in the US. Americans do have a tendency to buy only from Americans or American based businesses, therefore it is strategically a great move for ourselves to have someone there now on the ground who can move around freely, set up meetings and attract new opportunities.”

Following a successful academic career within the Geography Department of the University of Aberdeen, technology founder and major shareholder of Adrok Ltd, Dr G Colin Stove went on to hold a number of high profile positions within his field of expertise, from leading Remote Sensing research at the Macaulay Institute for Soil Research to pioneering new radar research for a company

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set up to service UK Government and other commercial organisations.

Six years after establishing a new Ground Penetrating Rader business, Dr Stove sold the company to an international drilling firm.

This presented him with the opportunity to establish a science business that would allow him to develop his ideas around Atomic Dielectric Resonance (ADR) technology.

Based in Edinburgh, Adrok combines

leading scientists and engineers and has successfully commercialised the technology to the advantage of numerous industries, ranging from oil and gas to geophysical exploration and research.

“The first two years of our life,” Stove explains, “were spent applying for the intellectual property for the technology that my father invented. It was then in September 1999 that we set up the commercial company,

“Adrok combines leading scientists and engineers and has successfully commercialised its ADR technology to the advantage of numerous industries”

One of Adrok’s many onshore surveys in USA. For this survey in Texas, the ADR scanner was deployed from a zipline.

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Adrok

Adrok work in all environments and have carried out mineral exploration surveys on frozen lakes in Canada and the Arctic Circle

before embarking on the long, arduous task of research and development in order to build up, test and improve the technology.”

After extensive research and development that lasted a number of years, Adrok successfully launched its first commercial service project in the spring of 2007. It was at this point that it set its stall out to become a leading geophysics and survey company, picking up work from several oil and mining businesses, going out to their respective properties and conducting a full survey of the land.

“In addition to deducing what the geology,

hydrocarbons, minerals or rock types are actually in the ground,” Stove continues, “we also provide our clients with better intelligence of the subsurface, while also helping to de-risk their drilling programmes. That is what we as a company are all about, helping our clients with their drilling programmes by conducting a detailed, intense survey in order to map out the rock types in the ground. We do this before drilling commences, so we are at a stage that helps filter the drilling decision making processes of our clients so they can definitively state where to drill.”

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Survey in a marshy field in Ireland prospecting for lead and zinc metals

“Central to the next stage of the Adrok’s growth is its ability to turn itself into a major geophysics services provider” Adrok uses advanced ADR technology to supply pioneering geophysical services for the location, identification, mapping and exploration of subsurface natural resources.

A patented investigation technique, ADR works by taking images inside materials and subsequently classifying them. It does so by measuring and interpreting resonant energy responses of natural or synthetic materials while these interact with pulsed

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electromagnetic radio waves, microwaves, millimetric or sub-millimetric radio waves being passed through them.

“The major benefit our clients derive from using ADR technology comes in the form of significant cost savings,” Stove states. “We guarantee that by using the technology we can save the client up to 90 percent of the cost of physically drilling a hole, meaning that for the price of one drill hole we can

Adrok

Hydrocarbons survey in Egypt

Extreme surveying for gold in the hills of Perthshire, Scotland

provide as many as ten virtual bore holes.”

Other benefits include low energy use, the ability to operate at close or long range, the lightweight nature of the equipment that allows for greater accessibility and transportation, and its ability to function in all manner of environments and conditions. Furthermore it has significant environmental pluses, being a nondestructive technique that does not have any adverse effect on the land itself.

While the technology has the ability to function offshore, Adrok’s current focus revolves around land based targets, particularly those in Canada, the US and Australia, which are among the largest oil and gas, and mining rich parts of the world.

As the company has found on a number of

occasions throughout its history, introducing any new product or service to the marketplace comes with its own challenges, not least the task of having to convince those who are sceptical. Adrok has discovered the best solution to this is simply for it to actively go out and showcase the technology is has and what it does for its users. In doing so it has been able to demonstrate up close the value the technology can bring to the table, something that has been greeted extremely positively.

“We are growing at such a fast rate that internally we have more projects than people in the company right now,” Stove says,” which is a good position to be in, but we do have to ensure that we remain capable of delivering strong, value added services to our clients.

What we have been very good at doing is

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Appraisal survey onshore Oman for hydrocarbons from a standard 4x4 vehicle.

Adrok’s first foray into the Middle East market

Adrok

$2.4 Billion Yearly revenue generation in the US from geophysical survey services setting up internal quality systems, procedures and policies to make sure that our work flows are working efficiently and effectively throughout the business. Meanwhile, being awarded ISO:9001 accreditation was also quite a big windfall for us.”

Central to the next stage of the company’s growth is its ability to turn itself into a major geophysics services provider, something that it hopes can be achieved by further educating the market about its technology, demonstrating the added value it can bring and ultimately securing new clients.

“We have achieved such a great deal in the space of 15 years,” Stove concludes. “Since the day we commenced operations we have secured the intellectual properties to our technology, worked with universities and academics in order to prove it up, demonstrated the technique countless times, secured a number of major multinational clients and secured several rounds of investment along the way. That is a lot to have achieved in a relatively short space of time and is a growth story I certainly feel is worth sharing.”

For more information about Adrok visit: www.adrokgroup.com

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EMED Mining

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

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Flotation area

EMED Mining

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

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

Chinese smelter Xiangguang Copper.

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

$4

Billion

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

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

EMED Mining

Grinding area

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

Once the Rio Tinto mine is in full

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

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School group at primary crusher

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

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

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

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

EMED Mining

Historic Corta Alaya open pit

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

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

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

There is no denying that, like every

Diamond drill core storage

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

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

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PROUDLY SOUTH AFRICAN BULK HANDLING - ARLONA ENGINEERING LEADS THE WAY South African ports are without question the best equipped in Africa. Local harbours utilise the latest technologies and have invested in state of the art equipment to ensure high efficiencies, reduced maintenance requirements and optimum safety

I

is in this highly competitive sector that Arlona Engineering (Pty) Ltd has earned an enviable reputation for innovation, quality and reliability, competing favourably with the world’s leading manufacturers of bulk handling equipment.

Since its inception in Durban in 1966, Arlona Engineering, specialists in fabrication, machining, proofloading and maintenance of bulk handling

“ The company’s success can be attributed to a thorough understanding of this environment known for its arduous operating conditions ” 84 | be directory

and stevedoring equipment, has made a significant contribution to the efficiency of South African ports.

“The company’s success can be attributed to a thorough understanding of this environment - known for its arduous operating conditions – a close working relationship with South Africa’s leading stevedores, as well as a commitment from the Arlona team to design and manufacture equipment to meet the exact needs of every customer,” says Steve Christy, managing director of Arlona Engineering. “The company’s fully computerised fabrication facility is equipped to design and manufacture grabs, hoppers, container spreaders and lifting equipment, as well as a wide range of cargo handling equipment – all to exact specifications.”

The machining division, which

Arlona Engineering offers general engineering services, also manufactures any type or size of twist locks, which are then proofloaded for optimum quality controls. There is also a demand for the fabrication of lifting equipment replacement parts which meet the specifications of original equipment manufacturers.

Arlona’s proofloading division, equipped with a test rig that is certified to proofload up to 100 tons, is geared to test and certify any lifting equipment.

The company, which is accredited by the Department of Labour as a testing station, also offers a load testing service to general industry to ensure that all lifting equipment complies with the Occupational Health and Safety Act requirements. All refurbishing and testing procedures meet international shipping standards, including Bereau Veritas, Lloyds Register, ABS and SABS. An important part of Arlona’s engineering repair operation is a 24 hour maintenance and technical support service to harbour infrastructure and shipping, where a highly experienced team attends to any breakdown on hoppers, grabs and conveyors.

The company also offers the shipping sector a customised maintenance service to ensure optimum condition and efficient operating performance

of cargo handling equipment. A structured maintenance plan enhances operator safety, extends the service life of machinery, minimises downtime and reduces operating costs.

Arlona Engineering utilises the latest technologies, state of the art equipment and quality materials to ensure high efficiencies, reduced maintenance requirements and the optimum safety of its extensive range of bulk handling equipment.

Arlona engineering Corner Clydebank & Hamburg Roads Bayhead, Durban T (+27) 31 205 5991 www.arlona.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