BE.Weekly by Business Excellence Magazine

BUSINESS EXCELLENCE Issue 91 | www.bus-ex.com

The information Olympics NED: The first 100 days

WEEKLY EDITION Punta Cana International Airport

Welcoming passengers

to paradise One of Latin Americaâ&#x20AC;&#x2122;s premier airports

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contents 6

In brief

The week that was

In this section youâ&#x20AC;&#x2122;ll find news, views and comments as we take a look back at the last seven days.

strategy

NED: The first 100 days

With the increased focus on the role and accountability of Non-Executive Directors it seems that their whole mindset needs to change along with the other board members, expectations.

operations

The information Olympics

Spreadsheet use is a habit that many commodity traders find hard to break. But the tools that proved adequate for running a trading operation a decade ago are no longer fit for purpose.

[ Issue 91 ] BE Weekly

Be Weekly [ Issue 91 ] 42

Vale Canada

Central Rand Gold

Nickel in demand Vale’s operations in Canada are carried out in some of the most challenging environments, but with demand for nickel on the up and prices 30 percent higher than six months ago the company is sitting on highly strategic resources.

All that glitters is gold By utilising innovative methods and technologies Central Rand Gold is bringing commercial gold mining back to the City of Johannesburg.

COver story

20 Punta Cana International Airport

Welcoming passengers to paradise In the space of 30 years Punta Cana International Airport has grown to become not only the Dominican Republic’s leading destination for travel, but also one of Latin America’s premier airports.

Royal Arctic Line

Greenland’s lifeline Boasting more than 20 years of internal experience of sailing in Arctic waters, Royal Arctic Line and its employees have become a massively important lifeline for Greenland and the surround region over the last two decades.

Adrok

Exploring new possibilities Over the last twelve months Adrok has experienced significant gains, not just in terms of turnover, but also its presence in key North American markets and its acceptance into important sectors of industry.

60 BE Weekly [ Issue 91 ]

Winners & losers

Ups and downs in the week that was... Bees Worth $15 billion in value to US agricultural crops, according to the White House, which has set up a taskforce to tackle their decline.

German amour propre Mrs Merkel’s danced for joy after the World Cup victory, a performance tweeted almost as much as the match result.

Milford Haven Hundreds of jobs at the Murco oil refinery could be saved after the sale of the site was agreed in principle.

Venezuela Heading toward classification as a failed state along with Somalia and Syria.

Luis Suarez Lost the backing of 888poker following his ban for biting Giorgio Chiellini.

GSK Confirmed the existence of a sex tape of its former head in China.

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Banco Espirito Santo The bank has accelerated the hiring of new executives.

Lindt & Sprungli To buy Russell Stover, becoming the third-largest chocolate manufacturer in North America.

Nike Net income rose 5.4 percent in the quarter to May 31, exceeding analysts’ estimates.

Facebook Criticised for conducting a psychology experiment to test emotional reactions of nearly 700,000 users without their knowledge.

Scottish shale gas BGS have warned the amount of gas which could be recovered in Scotland is expected to be “substantially” lower than expected.

Birds and Bees Neonicotinoid pesticides are damaging bees and are a key factor in the recent decline of farmland birds.

in brief

automotive

Volkswagen Group investing €2 billion in two China plants Volkswagen is planning two new vehicle plants in Qingdao and Tianjin as part of its strategy to overtake Toyota by the end of the decade On July 7, in the presence of German Chancellor Angela Merkel, who is on a state visit to China, and Chinese Premier Li Keqiang, Prof. Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen AG and President and CEO of Volkswagen Group China, signed a joint declaration for two new vehicle plants in China together with Xu Jianyi, Chairman of its Chinese joint venture partner FAW. “China has become our largest and most important market. To satisfy the

demands of our customers in the country, we are engaging in a further substantial expansion of our capacities in China together with our Chinese partner FAW Volkswagen,” said Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen AG, who witnessed the signing of the declaration. “With these investments, Volkswagen is clearly expressing its commitment to the Chinese market. Following two decades of successful cooperation, Volkswagen will

further intensify its strategic partnership with FAW with a view to bringing innovative, sustainable mobility solutions onto the Chinese market,” said Heizmann. The two new vehicle plants are to be built stepby-step on the east coast of China in the cities of Qingdao in Shandong Province and Tianjin. The decision in favour of these two locations was taken together with the joint venture partner FAW. The key site factors were high qualification levels and the infrastructure available. Furthermore, Tianjin is the location of a new production plant for dualclutch gearboxes (DSG) for Volkswagen in China that is due to be inaugurated at the end of 2014. Together, the two partners are to invest about €2 billion in the expansion of production capacities. Volkswagen has been active on the Chinese market for 30 years and is one of the Western pioneers of the automobile industry in the country. Together with its two joint ventures FAW-Vo l k s wa g e n and Shanghai-Volkswagen, the Group delivered about 1.51 million vehicles between January and May 2014, representing a rise of 17.7 percent compared with the corresponding period of the previous year.

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politics

International mobilisation against deep-sea trawling A forthcoming EU deliberation on trawling has stimulated intensive lobbying within member states On July 14th, European Fisheries Ministers will be meeting at the Council in Brussels. A reform of the EU deep-sea fisheries management regulation, including the ban of deepsea bottom trawling, was proposed by Fisheries Commissioner Maria Damanaki in July 2012. As trawlers continue to drag

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their nets, the Fisheries Council drags its feet mainly due to the pressure that countries such as France and Spain have put up to hinder the reform. These industrial fishing nations are now jeopardising the adoption of the ban in Council. On that occasion, several renowned street artists will simultaneously produce

spectacular pieces of art in several capitals of Europe, calling on Fisheries Ministers and EU governments to take the reform of EU deep-sea fishing seriously and ban deep-sea bottom trawling, which is widely recognized as the most direct threat to the immense reservoir of species and the fragile habitats found in the deep ocean. Banning deep-sea bottom trawling would be a historical measure that would provide the deep ocean the protection it requires from blind and unnecessary destruction. Deep-sea bottom trawling is a capital-intensive, fuelgreedy, subsidy-dependent fishing method that fails to yield positive economic results while destroying the rich capital natural of European seas. The ban on deep-sea bottom trawling has been called for by more than 300 international scientists. Citizens around the EU are calling on their governments to protect the deep sea and eliminate destructive fishing. In France alone over 850,000 people signed a petition calling on Franceâ&#x20AC;&#x2122;s president Hollande to ban deep-sea bottom trawling; people across Europe are taking to social media to express their deep concern with events and petitions from Portugal to Poland, Italy to the UK.

in brief

Best from the web this week

We’ve done the searching, so you don’t have to! businessweek.com

Photograph by Jin Lee/Bloomberg

youtube

CEO Memo Makes ‘Productivity’ the New Mantra at Microsoft

Ashlee Vance Like Bill Gates and Steve Ballmer before him, Satya Nadella has turned to e-mail to spell out his designs for the company. Nadella, in his 3,000-word opus, informed the Microsoft troops on Thursday that the devices and services era has officially come to an end and been replaced by the productivity and platform period. Read the rest

ted talks

What’s wrong with your pa$$w0rd?

Flying a drone into exploding fireworks GlobalFlare Watch it now

Lorrie Faith Cranor Lorrie Faith Cranor studied thousands of real passwords to figure out the surprising, very common mistakes that users — and secured sites — make to compromise security. And how, you may ask, did she study thousands of real passwords without compromising the security of any users? That’s a story in itself. It’s secret data worth knowing, especially if your password is 123456 ... Watch it now

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NED:

The first 100 days With the increased focus on the role and accountability of Non-Executive Directors it seems that their whole mindset needs to change along with the expectations from the other board members Words by

Stephen Archer

BE Weekly [ Issue 91 ]

n my experience the NED is still seen as an outsider and NED’s also view themselves as outsiders. Whilst their degree of detachment from the day to day life of a business can be a healthy thing, the detachment caused by episodic intervention can be very unhealthy and greatly restricts the ability of the NED to deliver value and exercise their governance duties. The first 100 days is something of a cliche for executives, but for NEDs it is assumed that they just step straight in with their ‘experience’; listen in and contribute when they see fit. For the first 100 days and beyond to work, the executive board must know 100 percent why the NED is there and what the NED plans to contribute. Any board must be serious about taking on an NED and unless they are it should not happen. Assuming that the board has accepted the NED and their role then what should the NED do? 1. Meet each board member face to face to understand what their roles are and how they see their role. This is also the time to find out the ‘elephants in the room; the ‘sacred cows’ and the underlying strengths and weaknesses of an organisation that don’t appear on paper. 2. Meet each board member’s direct reports or at least some of them to see where the pressure points are in middle management. If the organisation is stressed it will be most apparent at this level, not, paradoxically at the board level.

3. Spend some days at the ‘coal face’. Meet a number of people and spend some time with key new employees and long standing employees but not those in between to gain the perspectives on changes over time and the fresh eyes of new people. From this the NED will gain invaluable insight that even other board members will not have on the strengths and weaknesses of each function be it, sales, marketing, finance, HR, IT, operations, logistics, legal etc. 4. Start as soon as possible testing the board members with the NED’s impressions of the organisation from the inside. This might not sound like the most popular move but an NED’s authority is so often weakened because they are not seen as having a real understanding of the business. 5. NEDs tend to have specific domain expertise and be expected to comment on the technical side of that domain quickly. However, the NED must gain very quickly a sense of the strength of leadership by the board and next levels down. 6. Understand the strategic plan. This is not just the 12 month business plan, this is the longer term roadmap of achieving step changes in commercial performance and place in the markets. This should be thoroughly interrogated and challenged for robustness of examination and thought for reality rather than fantasy.

“For the first 100 days and beyond to work, the executive board must know 100% why the NED is there and what the NED plans to contribute”

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strategy

7. Having learned about the people and the functions the NED must consider the operating structure and whether this is fit for the purpose of meeting the objectives. 8. The NED must look at the ‘informal o rg a n i s a ti o n ’: th e b e h av i o u r a l norms, patterns of influence and communications, politics and other aspects of the team culture. This provides the framework within which guidance should be executed and indeed a set of aspects of the business that may also need to be challenged even if they are mostly not spoken about. 9. NEDs should act and think as if they are full time executives in order to take the role to the level of suitable responsibility but stop short of accountability. 10. Heed the red flags and shout early. The NED is expected and most able to anticipate or spot problems early on. While this can be a tremendous strength, it can be a double-edged sword if taken to the extreme. They must refrain from taking on all the issues and resist the tendency to be the organization’s saviour. In the end the executives must listen and act. This will be most effective when the NED has spent the first 100 days establishing knowledge, respect and understanding.

About the author

Stephen Archer Business Analyst and director of UK business consultancy, Spring Partnerships www.springpartnerships.com

BE Weekly [ Issue 91 ]

The informati

Spreadsheet use is a habit that hard to break. But the tools that trading operation a decade ago Words by

[ Issue 91 ] BE Weekly

Michael Schwart

ion Olympics

many commodity traders find t proved adequate for running a o are no longer fit for purpose

tz & Roger Schaffland

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elying on spreadsheets to compete in today’s commodity markets is like running against Usain Bolt while wearing lead boots – and businesses, like great athletes, need the best tools and conditions. The evidence is hard to refute: swapping spreadsheets for specialist commodity management solutions helps create a winning business that makes better decisions, faster, and with more confidence. Eight reasons to unhitch and make the switch: 1. Meet new regulatory requirements The sense of complacency about spreadsheets is becoming almost impossible to sustain in the light of a tough new regulatory framework. Underpinning both Dodd-Frank in the US and EMIR in Europe is the need to increase the amount of transaction data to be recorded and stored, speed up its availability, and deepen the level of detail required. Timely reporting across all regions and markets is the minimum requirement to stay on the right side of the regulator. Spreadsheets were never developed to collate and export large, comprehensive and unified data sets from multiple sources. They do not easily offer real-time responsiveness or enterprise-wide visibility. They do not support current needs for comprehensive risk mitigation, reporting and audit requirements and the regulations are only going to get more onerous;

“Spreadsheets multiply; firms that rely on one, tend to rely on a dozen”

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businesses need to adopt better toolsets than spreadsheets to be compliant. Fortunately, commodity management vendors have worked closely with regulators to develop the necessary features within their solutions so that organizations can be more compliant. In contrast, a trading operation run on spreadsheets is just one fat-finger error away from a compliance breach, fines and even jail time. 2. Break down the corporate silos Spreadsheets multiply; firms that rely on one, tend to rely on a dozen. By their very nature they silo information when having a portfolio view of total exposure is the only way to manage risk and make decisions effectively. A critical spreadsheet with a single owner/author is an accident waiting to happen, and it happens frequently, different people owning or enabling their own part of the business through one or more uncontrolled, unsecured documents has been proven to be “the weakest link” when it comes to financial accuracy, regulatory transparency and risk management. Trust and transparency is key to the current/future business model; the use of spreadsheets is an indication that information is inadequately shared. The inevitable lack of data integration between the number and variety of spreadsheets usually results in different parts of the business running and reporting on incomplete or even inaccurate data sets. At critical stages of the value chain the left hand often doesn’t know what the right hand is doing. Where a commodity management system is in place, however, it shows that integrated, front-to-back, business processes have been developed, and are supported by common data and rules. This

operations

business is more efficient and less prone to the information stove-piping that plagues their spreadsheet-dependent rivals. 3. Make the right decisions every time Consider all the information that has to be recorded for each individual deal. Purchase, sale, and transportation costs; complex structured transactions, financial instruments and hedges; contract terms, collateral arrangements and currency fluctuations; inventory lists, prices and schedules, not to mention invoices and settlement statements. Add to that the benefit of netting cash-flows across deals, aggregating exposures to the parent companies for collateral coverage, and managing to policy limits. A spreadsheet is not an effective system of record. It is too laborious, too disconnected from policy â&#x20AC;&#x201C; and too prone to error. On the other hand, commodity management systems can accurately record all transactions from order through to cash to create a single, trusted, centrally available, version of the truth across all deals, different commodities and geographies. As these specialist systems evolved over the past ten years, they have honed this capability. Smart, nextgen systems like those available from commodity management specialist Eka can provide a single view that helps increase awareness among senior managers of how defined strategies are performing, the potential financial impacts and options for risk mitigation. Consolidated exposures,

â&#x20AC;&#x153;When deals are captured in spreadsheets, records of the associated costs will often be added separately to the ERP or financial systemsâ&#x20AC;?

cash flow forecasting and single-truth reporting offer a new level of predictability and proactivity when it comes to managing financial performance, which in turn enables smarter risk taking. It supports real-time understanding of counterparty credit risks and exposures, enhances strategic planning and business-planning processes and allows for better allocation of resources and increased operational efficiency. 4. Get a grip on your real profitability: Pay for Performance When deals are captured in spreadsheets, records of the associated costs will often be added separately to the ERP or financial systems. But the final costs for physical deals in particular can be significant and vary greatly in real-time. Fees for transportation, brokerage, and inspection, plus premiums, demurrage and invoice adjustments can soon wipe out the predicted profit of an individual deal. Spreadsheets have no means to formally link deals with their costs in a timely manner, and offer very limited capability for accurate reconciliations and tracking of trends. In contrast, commodity management systems allow traders to record and analyze all-in costs to ensure a proposed transaction is as profitable as first appears. They make clear the full commercial value of a transaction as it evolves over the life of the deal from a single report.

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Traders can compare the forecasted pre-deal costs with actual post-deal costs to assess real profitability, and can slice and dice profitability data by trader or, container, or business unit to support and improve future-decision making. For a realtime view of true profitability, commodity management is crucial. 5. Secure your data and your business Spreadsheets are almost always the private domain of individuals who set them up to meet an immediate or specific need, with no thought to the wider demands of system management or the business need for risk management best practice. They are by definition, uncontrolled, free-range tools which people try to maintain as best they can despite changing business rules and

“Spreadsheets are almost always the private domain of individuals who set them up to meet an immediate or specific need, with no thought to the wider demands of system management”

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market data, but often these owners leave, forget some part of the logic, or use the wrong version of the spreadsheet. Thus they are a huge security risk primarily because the calculations in those spreadsheets is are vulnerable to unintentional errors or purposeful interference. Audit controls are often insufficient to prevent these data integrity issues because of the variety and subtlety of the problem(s). In contrast, commodity management systems demand both user and group security protocols to be established. They provide for effective user permissions and access, detailed audit trails, and management approval of activity. Wellimplemented commodity management systems can enforce operational controls and so reduce opportunities for fraud. Configurable business rules allow organizations to instantiate business processes and risk policies, and to monitor compliance on a real-time basis through detailed and logical dashboards and alerts. 6. Overcome the information management hurdles For businesses that depend on spreadsheets, managing data requires Herculean effort. The accurate monthly closing of the books is just one example. The number and variety of sources to be mined, combined and validated mean that data is often cut and pasted from one spreadsheet to another, spreading errors through the organization. The task then has to be re-invented each time: with randomly created spreadsheets involved, there is no repeatable process – and the end-result is difficult and timeconsuming to query. And there’s no let up: as soon as one month’s books are complete, the information Olympics start all over again for the next month. In contrast, commodity management gives organizational productivity and accuracy. It reduces the amount of time

operations

and effort spent on manual reconciliations of internal and external data. Information completeness can be ensured and repeatable processes created to further reduce the chance of errors rippling through the organization. Businesses that have made the transition to commodity management wonder how they ever managed without it. 7. Secure the best business results Smart commodity management systems give traders and risk managers the ability to simulate new transactions in the current book, analyze multiple scenarios and then optimize portfolios and execute on the best outcomes. Although spreadsheets can provide some of this functionality with some advanced programming, the circumstances in which spreadsheets are normally deployed suggest it is unlikely. More to the point, commodity management systems provide this outof-the-box and in a multi-user, real-time environment. Add in advanced analytics that are embedded in next-generation solutions like Eka, and traders suddenly have real-time access to accurate P&L, VAaR, and mark-to-market exposures. These, and other metrics, can be continuously updated, with optimized scenarios being ranked to allow a trader to quickly identify the most profitable outcomes before entering a deal. 8. Keep stakeholders on side Like it or not, there is no escaping the corporate governance agenda. Commodity management technologies have evolved to fill this need and are increasingly seen by investors, creditors, rating agencies and shareholders as an indication that governance and risk management is being taken seriously. The latest incarnation of commodity management systems have been designed

â&#x20AC;&#x153;The latest incarnation of commodity management systems have been designed from the start to provide a secure, official and timestamped version of eventsâ&#x20AC;? from the start to provide a secure, official and time-stamped version of events that can be verified against external data in case of audit, research or investigation. It is a critical design feature of systems like Eka, rather than an accidental add-on. Not only do commodity management systems ensure better, more competitive business decisions but they also provide reassurance to the markets on the validity of all financial statements and disclosures. This increases confidence at a time when it has never been more valuable. Not surprisingly, external and internal stakeholders like the demonstrable commitment to transparency that commodity management systems offer, as well as the visibility that helps mitigate multiple types of risk in todayâ&#x20AC;&#x2122;s global and volatile markets.

About the authors

Michael Schwartz Executive Vice President & Chief Marketing Officer of Eka www.ekaplus.com

Roger Schaffland Managing Principal at Axcelerus, a commodity advisory and risk management specialist www.axcelerus.com

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Punta Cana Inter

Welcoming passeng

In the space of 30 years Punta Cana International A Republicâ&#x20AC;&#x2122;s leading destination for travel, but words by

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Will Daynes

rnational Airport

gers to paradise

Airport has grown to become not only the Dominican t also one of Latin Americaâ&#x20AC;&#x2122;s premier airports research by

Abi Abagun BE Weekly [ Issue 91 ]

Frank Elias Rainieri, Director of Grupo Puntacana

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Punta Cana International Airport

overing an area of approximately 48,445 square kilometres, the Dominican Republic is the second largest Caribbean nation by area and is home to an estimated ten million people. Today it also represents the second largest economy in the Caribbean and Central American region and has the ninth largest economy in all of Latin America, one that was long known for agriculture and mining, but is now dominated by services. The Dominican Republic can also lay claim to the much sought after title of being the most visited destination in the Caribbean, with tourism now being the driving force behind the nation’s economic growth. Increased tourism over the last several decades has brought with it a need

tourists within 30-45 minutes of the area. Indeed the journey towards realising Rainieri’s vision was a drawn out affair with the passage of three governments occurring before permission was finally granted in 1982 to build what would become the first privately owned international airport in the world. Two years later, in 1984, Punta Cana International Airport officially opened its doors. “In our first year of operations we received a total of 3,893 passengers,” Rainieri continues. “Since then we have grown at a rapid pace, experiencing a consistent yearly growth rate of around ten percent, to get to the point where today we service some 5.1 million passengers on an annual basis. In that time we have also transformed into the most well connected airport in Latin

“We have grown at a rapid pace, experiencing a consistent yearly growth rate of around ten percent, to get to the point where today we service some 5.1 million passengers” for modern infrastructure across the nation, capable of servicing the ever expanding volumes of people visiting it. One of the best examples of this improved infrastructure and of a development that encapsulates the prosperous state of the Dominican Republic in the 21st century is Punta Cana International Airport. “The idea of building an airport in Punta Cana was first envisioned back in the early 1970s,” explains Frank Elias Rainieri, Director of Grupo Puntacana. Despite struggling at first to receive government approval for his plans, Rainieri realised that with the nearest airport to Punta Cana being some four hours away in Santo Domingo, the only way to develop tourism and bring revenue from tourism into Punta Cana was to bring said

America hosting many of the world’s leading airlines that today fly and from numerous destinations across Europe, South America and the United States.” The incredible growth of the airport has also been a direct contributor to the increase in tourism to the Dominican Republic, and the positive impact this has in turn brought to the nation. Prior to the opening of Punta Cana International Airport the Dominican Republic is estimated to have possessed between 4,000 and 5,000 hotel rooms across it. Today, 30 years later, the figure stands at an impressive 55,000 hotel rooms. The explosion in tourism is believed to now contribute towards some 800,000 direct and indirect jobs, while tourism in the Punta Cana area alone is

BE Weekly [ Issue 91 ]

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In 1992 the idea of creating a company that would provide the Dominican Republic with world class air transportation was born. The challenging idea at that time was to supply a demand for helicopter service otherwise non-existent in the country. For this reason, HELIDOSA was created and since then has become the largest helicopter and jet service company in the Dominican Republic, and a pioneer in the regions aviation industry. HELIDOSA has become a synonym of prestige in national and international markets, obtaining high brand recognition, based on its record of excellence in customer service and the highest safety standards supported by Argus Platinum.

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OTHER SERVICES National Premium Charter Service Striving to reach the highest standards of safety, quality and luxury using modern helicopters such as Bell 429 and 407GX, available to our premium clients for charter flights in the national territory and Haiti; departing from any heliport, airport or landing area the client requires. Air Ambulance Aero Ambulancia is the first and only air ambulance company in the Dominican Republic, certified by the IDAC (Dominican Institute of Civil Aviation) and ISO 9001, providing the most complete medical service. Available 24 hours a day with coverage across the entire Dominican territory by helicopters and the Caribbean, United States and the rest of Central, North and South America by jets.

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The leader in cargo handling Dama offer the following services: ≠ 24/7 services with excellent operations ≠ Cargo handling, palletizing and de-palletizing ≠ Charter flights authorized by the Board of Civil Aviation ≠ (Import-Export) and cold room. ≠ Terminal Services in Santo Domingo (Las Americas) Santiago-Puerto Plata - Punta Cana and La Romana

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T: 1(809)549-1703 E: administración@mcl.com.do jquintana@mcl.com.do

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Punta Cana International Airport

said to represent around nine percent of the Dominican Republic’s total annual GDP. Over the last three decades one particularly admirable trait of the airport has been its commitment to careful expansion, growing in size and modernising in line with both the changing nature of the aviation sector and the demands of its passengers. Less than two years ago, in November 2011, the operators of the airport went about expanding the facility with construction and integration of a new runway and air traffic control tower, while at present $100 million is being invested into the airport’s newest terminal building. “Work on the new terminal began on 1 March of this year and we plan to have it opened to the public on 1 November, 2014,” Rainieri enthuses. “It is a completely new, state of the art building which will boast seven new check in areas, immigration arrivals and departure check points, duty free areas, a food court and other retail space. The new terminal building will help

dama Dama Airline Cargo Management, leader in Dominican Republic for Handling and Warehouse facilities on Import and Export Cargo, established in 2002, we have stations in all D.R. airports; also we have a warehouse in Miami, Florida – Dama Cargo Logistics, Corp to satisfy all your needs in cargo solutions and logistics. We represent the following cargo airlines: ABX, DHL Aviation, Vensecar, Taca Airlines, Avianca, M&N Aviation, DHL Aeroexpresso. Our facilities had been certified by FAA Inspections and our personnel receive courses on Dangerous Goods, Documentation, Warehouse Control and Handling. We provide business solutions and support to our customers and airlines. www.damacargo.net

MCL In 1995 MCL was established and registered as a line maintenance company in accordance with the Laws of Dominican Republic. The company’s goal is to be the best provider maintenance service in our country for this purpose we are the largest aviation maintenance company based in Dominican Republic with presence in all D.R. airports. We serve over a thousand flights every month and the best professional maintenance crew in D.R. with 15FAA A&P licensed technicians and 10 maintenance assistants with a wide experience in line maintenance. Our clients are Jet Blue, American Airlines, Taca Airlines, COPA Airllines, Air Transat, DHL, Aerolíneas Argentinas. administración@mcl.com.do

Punta Cana International Airport Terminal B

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PUROS DE HOSTOS Puros de Hostos Ltd produces with passion the world’s finest, totally handcrafted, cigars made from 100 percent Dominican organic tobacco developed entirely from Cuban seed. Founded in spirit by Bayoán de Hostos, grandfather of the current Master-blender, Gustavo A de Hostos, the company uses tobacco grown by the Reyes family in the Valle del Yaque renowned as one of the best places in the world to grow, cure, ferment & age tobacco for premium cigars since the early native Taino Indian people grew it as a powerful medicinal herb. Puros de Hostos cigars are available at Punta Cana Airport, in the new cigar & rum duty free shop. www.purosdehostos.com

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us continue to meet the increase in traffic we are experiencing each year, at the same time improving the overall experience on offer to our passengers.” There are several other major developments currently underway at the airport. A particularly important moment will occur on 1 July this year when the airport becomes equipped to welcome the Airbus A-380, the world’s largest passenger airliner. “To date we have already had two airlines requesting permission to fly A-380’s into Punta Cana in the near future and we look forward to welcoming them to our airport in due course,” Rainieri states. Outside of the airport’s passenger terminals efforts are also presently being made to expand its cargo facilities. “We are very much becoming a hub for cargo

Header folio

Punta Cana International Airport current Control Tower

“To date we have already had two airlines requesting permission to fly A-380’s into Punta Cana in the near future and we look forward to welcoming them to our airport in due course”

being sent between South America and Europe,” Rainieri highlights. “More and more businesses are seeing Punta Cana as the perfect middle ground between the two continents and are using us as a transfer point. The expansion of our cargo capabilities, through the building of a 5,000 square metre facility, is designed to meet

what we expect to be further demand for this type of service. This facility will be operational as of 1 October, 2014.” This virtually unrivalled degree of flexibility when it comes to being able to invest in and renovate the airport is undoubtedly one of the greatest strengths of Punta Cana International, if not the greatest.

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You would be extremely hard pressed to find another example of an airport operator deciding in mid-November of 2013 that it was to make a $100 million investment in a new terminal building and subsequently having the plans ready and in place by the first week of February 2014 in order to begin work the following month. “It is that combination of being able to mobilise efforts in such a short space of time and having a board of directors with such a high level of faith as to allow that amount of capital investment with no questions asked

has been hugely important to us over the years,” Rainieri says. “Our ability to make rapid improvements to our infrastructure and facilities, without having to embark on the long drawn-out processes that face government owned airports, is a massive advantage that we have over other airports in the region.” It would also be remiss of me not to highlight that as well as contributing to the revenues brought into the Dominican Republic as a result of tourism, the airport operators also continue to make a

“We expect to have ten million passengers passing through the airport within the next decade”

Punta Cana International Airport arrival entrance

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Punta Cana International Airport

Punta Cana International Airport Terminal 2

concerted effort to support Punta Cana’s local communities. Ways in which it does go beyond simply providing employment to thousands of men and women, extending to the sponsoring of local schools, the funding of scholarships and the sponsoring of local hospitals, one of which it has helped triple in size in the last decade alone. In addition to the aforementioned exciting developments occurring at the airport this year, Punta Cana International’s operators are buoyed by the fact that summer bookings for 2014 show a growth rate of 16 percent compared to last year, while tourism from the United States continues to sky rocket, with growth this year from that market expected to top 45 percent. While things are certainly looking good in the short term for the airport’s operators, much of their collective focus remains on

what can be achieved in the future. “What we want to do is take the growth we are seeing today and push that further forward in the years to come,” Rainieri concludes. “We expect to have ten million passengers passing through the airport within the next decade. Admittedly this is a big target to hit, and one that will involve the airport doubling in size, however it is one that we believe is fully achievable.”

Punta Cana International Airport

809 959 2376 customerservice@puntacana.com www.puntacanainternationalairport.com

BE Weekly [ Issue 91 ]

Adr

Exploring new

Over the last twelve months Adrok has experienced sig its presence in key North American markets and words by

[ Issue 91 ] BE Weekly

Will Daynes

research

rok

w possibilities

gnificant gains, not just in terms of turnover, but also its acceptance into important sectors of industry

research by

James Boyle BE Weekly [ Issue 91 ]

Opening of our Canadian office with Prince Edward Islandâ&#x20AC;&#x2122;s Provincial Minister, Allen Roach (left)

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Adrok

usiness since we last spoke has been good for the company,” enthuses Adrok’s Managing Director, Gordon Stove. “We have been growing steadily and in the process increased our turnover for last year compared to that achieved in 2012. At the heart of this has been our ability to win more clients, and with this they have brought us fresh contracts and new sources of revenue. What that means is that at this time we are well on course to increase that turnover again for 2014, so things are going very nicely for us indeed.” That last time we spoke which Stove refers to was in March of last year. It was then that we spoke at length about Adrok’s plans to expand its international presence in core markets, specifically the United States through

North America through the opening of a new Canadian office. Since then, Adrok Canada has provided the business with a base from which to service existing clients in the region and develop relationships with the country’s prosperous mineral exploration industry. “Canada is unique in that it possesses all of the land attributes we can use to demonstrate the versatility of our Atomic Dielectric Resonance (ADR) technology and its capabilities,” Stove says. “There is ice, snow, dry areas, water and high mountainous areas all present within the country, and one of our key unique selling points is that our technology is very portable. This means that we can take our technology and survey crews into areas that other large geophysics techniques, large seismic trucks for example,

“We have been growing steadily and in the process increased our turnover for last year compared to that achieved in 2012” the opening of a new office in Houston, Texas. This office has been operation for well over a year now and is today helping to facilitate some of Adrok’s strongest areas of growth. “In truth we planned for a relatively slow start when it came to our activities in the US, what with it being traditionally a more conservative market,” Stove explains. “With that being said we still challenged ourselves to obtain a certain number of clients and with the two new clients we secured at the turn of the year we have already reached our targets with only a quarter of 2014 behind us. Needless to say therefore that we are quite happy with the progress we have made in this important market to date.” In July of last year the company also made the decision to increase its presence in

won’t necessarily want or be able to go. As a company we pride ourselves on our ability to be very nimble on the ground, as it were, and that makes Canada an ideal playground for us to grow into.” Adrok’s bases in Canada and Houston also present the company with the perfect springboard into other key regions of North America. Its Canadian office will allow the business to test the waters of markets such as Atlantic Canada, Alberta, Colorado and California, while its Houston base will allow it to target the Southern US and Central America in the months to come. By offering a faster, cheaper and greener alternative to traditional seismic exploration methods, Adrok has been able to draw together a portfolio of clients including those specialising

BE Weekly [ Issue 91 ]

Gordon Stove Managing Director Gordon has over 10 years’ experience in developing and applying geophysical and remote sensing diagnostic technologies. He is co-founder and shareholder of Adrok Ltd and has helped in the development of Adrok’s intellectual property portfolio. Since Adrok’s inception, Gordon has managed Adrok’s technology developments and managed its global services business. Gordon is currently a member of the Energy Institute, Petroleum Exploration Society of Great Britain, European Association of Geoscientists and Engineers, Society of Exploration Geophysicists, American Association of Petroleum Engineering, Society of Petroleum Engineers, the Scottish Oil Club, Institute of Directors and the Caledonian Club. Gordon supports young entrepreneurs as a Business Mentor for Business Mentoring Scotland, as well as for the Prince’s Trust Youth Business Scotland. Gordon holds a BSc (Hons) in Geography from the University of Edinburgh and is a PRINCE2 Registered Practitioner.

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in geophysical exploration and research. Indeed, the company’s record for winning contracts and projects in the mining sector has continued to gather pace, however a particular area in which it has been earning more business as of late is the oil and gas sector. “Traditionally the oil and gas sector has been very slow to adopt new methodologies or technologies, with the average timeline in this sphere being anything up to 24 years,” Stove highlights. “While we have been around for 15 years, giving us a certain degree of legitimacy, the simple fact is that we are being approached for work because we have a proven history of saving our clients money.” What the company is doing is providing a service to its oil and gas clients before

Adrok

Field crew scanning for oil in Oklahoma

they embark on drilling programmes and Adrok’s technology is being used to guide said clients to the best places to drill for success. Additionally it is helping to reduce the number of drill holes required, thus increasing clients success rates. “With our success to date in the oil and gas sector we have begun to turn our attention towards also getting involved in projects of our own making, almost becoming something of a pseudo oil company ourselves,” Stove reveals. “At present we are working to pick up such projects and are embarking on negotiations with several companies in the US about coming together to operate joint undertakings. It means that our business focus will increasingly turn to not just

providing expert services to certain clients, but also towards taking an active interest in what we find in the ground.” The oil and gas sector also provides the base for a field of expertise that Adrok and Stove are very excited to progress into. “I believe that a real breakthrough for the company in the near future will come from delivering advanced monitoring solutions for existing oilfields,” he says. “Within the vast majority of oil companies one will find an advanced oil recovery programme and we want to be a part of that. By installing a permanent installation in the ground, complete with our sensors and scanners, we will be able to monitor levels of oil and water in the ground, as well as steam injection, water injection and

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Field crew scanning on ice in Canada (on Atlantic Ocean)

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Adrok

“I believe that a real breakthrough for the company in the near future will come from delivering advanced monitoring solutions for existing oilfields” CO2 injection, which are all techniques for enhancing oil recovery. Being able to provide monitoring and surveillance services during the production phase is something we are very interested in capitalising on going forward.” In addition to increasing its turnover last year Adrok also doubled its workforce to 25 people in 2013 and it expects both these facets of the business to continue along the same upward trajectory this year. “Other immediate plans for ourselves include growing our bases in North America, while longer term we can work with the view of perhaps setting up a permanent presence in Australia and perhaps China, which are both markets we see great long term potential in,” Stove concludes. “In the meantime we will continue to provide our services to both existing and new clients, while increasingly utilising our technologies to identify projects of which we could ultimately become part or full owners.”

Adrok

+44(0) 131 555 6662 info@adrokgroup.com @AdrokLtd www.adrokgroup.com

BE Weekly [ Issue 91 ]

Vale C

Nickel in

Valeâ&#x20AC;&#x2122;s operations in Canada are carried out in some of the m on the up and prices 30 percent higher than six months words by

[ Issue 91 ] BE Weekly

John Oâ&#x20AC;&#x2122;Hanlon

Canada

demand

most challenging environments, but with demand for nickel ago the company is sitting on highly strategic resources research by

Robert Hodgson BE Weekly [ Issue 91 ]

Flash vessels inside the leaching plant building at Long Harbour

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Vale Canada

he Vale do Rio Doce in Brazil is doubtless an idyllic place beauty as its name, valley of the peaceful river, implies. However the now more prosaically named Vale is a global company with which readers of Business Excellence are very familiar, most recently in our coverage of Vale’s coal mining operations in Mozambique – and indeed, Wales. However since its 2006 acquisition of Canadian nickel mining operator Inco Vale has been a major player in Canada, where it now has a dozen mines and operational sites. To give an idea of the scale of the Canadian operations, now a wholly owned subsidiary of the Brazilian major, its base metals headquarters in Toronto alone employs 850 people at three sites that administer

people in processing nickel, electrocobalt and precious metals, exporting finished nickel products throughout the world. Over in northern Manitoba , the operation at Thompson (named after John F Thompson, chairman of International Nickel when a significant body of ore was discovered there in 1956) is located 740 kilometres north of Winnipeg and is known as Vale’s northern hub. Operations, there consist of the Thompson and Birchtree Mines along with the Thompson mill, smelter and refinery, which between them employ about 1,500 people and cover some 250 acres. From there we can proceed to an area where Vale is currently making major investments. St. John’s, the province’s capital city, is home to Vale’s Newfoundland and Labrador

“Since its 2006 acquisition of Canadian nickel mining operator Inco Vale has been a major player in Canada” Vale’s countrywide operations and house the company’s technology development department. Base metals in this context covers almost everything apart from gold, silver and platinum, and definitely includes nickel. Also in Ontario, though about 400 kilometres to the north of Toronto, Sudbury has enough untapped nickel deposits to support mining for decades to come. In total, Vale has six mines, a mill, a smelter and a refinery in Sudbury, making this one of the largest integrated mining operations on the planet, employing approximately 4,000 people. Raw materials from Vale’s Sudbury operations are shipped to The Port Colborne nickel refinery, a vast 360-acre complex on the shore of Lake Erie in southern Ontario. The refinery dates back to the early days of Inco nearly 100 years ago and employs 170

corporate office from which its operations in Voisey’s Bay and Long Harbour are controlled. These two sites produce nickel and copper concentrates, employing 580 full-time staff supported by more than 3,000 contractors. The main features of the Voisey’s Bay site, which is remote by any standards and during the winter very cold indeed, are the open pit, the concentrator, waste rock storage areas, sedimentation ponds and tailings disposal areas. The mine opened in 2005, and the site also includes vast deposits with potential for future underground operations. Vale has committed to developing deeper mining, creating hundreds of jobs. However most of the workers need to be brought in. They generally work on a two-week rotation at the fly in/fly out operation. While at site, workers live in an accommodation complex

BE Weekly [ Issue 91 ]

Protective Coatings, Inc.

Protective Coatings, Inc. has diversified greatly since its foundation in 1958 and its knowledge and experience make it a role model for the rubber lining industry

www.proco-fwi.com

Protective Coatings Inc.

Role Model Protective Coatings, Inc. was founded in 1958 in Fort Wayne, Indiana as a tank lining applicator. The lining business historically has been one of fluctuating volume. With these fluctuations in mind, the company determined that it would be wise to diversify into related business areas. This diversification has permitted it to develop a highly skilled and stable work force ready to react to its customers lead time requirements. Protective Coatings, Inc. has remained an active, growing company since its foundation, with its knowledge and experience making it a role model for the rubber lining industry. The company has flourished by adhering to a number of important principles. The first of these is safety, something that always comes first for the company and sees each of its employees receiving OSHA 30 Hour or greater training.

â&#x20AC;&#x153;The company has flourished by adhering to a number of important principles.â&#x20AC;? Honesty, integrity and ethics are other key principles, with Proco always operating with the desire to be fair, straightforward and sincere in its conduct, firm in its adherence to a code of high moral values, and with the intention of never trying to win business by making negative claims about its competition. Rather it wants to earn business based solely upon its owns merits. The other principles at the heart of the business are quality, value, dependability and service. Proco offers excellence in the services and products it provides and manufactures. Said services and products offer marketability

through their craftsmanship and the high quality of the ingredients used, while Procoâ&#x20AC;&#x2122;s more than 50 years of business operations is a result of its continued reliability in meeting or exceeding the needs of the rubber industry. Last, but not least, Proco desires to be a company that serves and contributes to the welfare of its customers through not only its products but with its labour working safely in outside environments. In addition to rubber lining applications, some of the products and services Proco provides include, epoxy lined pipe and tanks, moulded rubber parts, moulded parts with fabric and rubber, moulded parts with both steel and fabric, tubewinder belts, single-ply roofing systems, custom poly tanks, drop-in liners and surface preparation products. (260) 424-2900 Proco-FWI@Proco-FWI.com www.proco-fwi.com

BE Weekly [ Issue 91 ]

Mammoet employee operating a self-propelled modular transporter (SPMT)

that contains cafeterias, recreational areas, shops, offices and medical facilities. To get the ore out, the company makes use of a purpose built polar-class ice breaking bulk carrier, the Umiak I. This is the world’s most powerful ice breaking cargo ship powered by a 30,000 horsepower engine, large enough to drive an oil tanker ten times as big. Making twelve trips a year, the ship brings supplies in, and carries up to 30,000 tonnes of nickel ore to Quebec City from where it is sent by rail to Vale’s Sudbury smelter. That’s for now. But Vale is building a major complex much nearer, on a partially brownfield site near the port of Long Harbour in Newfoundland and Labrador that will be fed from Voisey’s Bay. Vale’s objective for the nickel processing plant is to process concentrate from the mine and concentrator in northern Labrador to produce finished nickel product and associated cobalt and copper products. The $4 billion plant includes concentrate offloading, crushing, and grinding facilities located near the wharf. The main processing plant is located approximately 2 kilometres south of the port facility and additionally there is a pipeline to supply process water, an effluent discharge pipe and diffuser into the harbour and a residue pipeline into a nearby disposal area. The plant site will house a complex process in which concentrate is pressure-levelled in acidic solutions to separate iron, sulphur, and other impurities from nickel, copper, and cobalt. A joint venture of Alberici and Black and McDonald has erected 263,000 square foot steel building modules for the nickel/ cobalt electrowinning building and the

“Vale has committed to developing deeper mining, creating hundreds of jobs at Voisey’s Bay”

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Vale Canada

Long Harbour main processing plant site

182,000 square foot neutralization building at the new facility, and Fluor is performing engineering, procurement and construction management services . The plant, scheduled to start production in 2013 but delayed by labour problems, should be in operation this year. Vale is committed to providing a safe work environment for all employees and subcontractors. As part of that commitment, the companies involved produced a safety video to be shown to all employees working on the project. As an operator in Canada, including some of its most environmentally sensitive areas of pristine wilderness, Vale is committed to the challenges of climate change. In 2008 it launched its Carbon Program, a set of global actions that promote the strategy of reducing greenhouse gas emissions by using new technologies and less carbonintensive processes. Canada has benefited

from this commitment with initiatives such as the Clean AER project, which will not only help the environment, but it will â&#x20AC;&#x2039;also increase the quality of life in the city of Sudbury. With funding of US$ 1 billion, this is the largest single environmental investment in the history of Sudburyâ&#x20AC;&#x201C; and one of the largest in Ontario. The core of the project is an 85 percent reduction in sulphur dioxide emissions from Valeâ&#x20AC;&#x2122;s smelter in Sudbury, and a significant reduction in metals and particulate emissions. The project is expected to be complete in 2016.

Vale Canada

(1) (416) 361-7669 cory.mcphee@vale.com @valeglobal www.vale.com

BE Weekly [ Issue 91 ]

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Central Rand Gold

All that glitters is gold By utilising innovative methods and technologies Central Rand Gold is bringing commercial gold mining back to the City of Johannesburg words by

Will Daynes

research by

Robert Hodgson

BE Weekly [ Issue 91 ]

etween 1886 and the early 1970s the Central Rand Goldfield was intensively mined, with overall gold output estimated to have reached around 250 million ounces. All good things, as they say, must come to an end however and by the mid-70s a combination of factors including depressed gold prices, ageing infrastructure and the reduction in the availability of high grade reefs meant that the area was declared â&#x20AC;&#x153;worked outâ&#x20AC;?. Truth be told, many lower grade areas of

[ Issue 91 ] BE Weekly

the Central Rand Goldfield were not mined at all during the aforementioned period of mining, thus leaving behind substantial quantities of gold-bearing ore. In more recent years these areas have becoming the focus of the exploration and mining activities of one Central Rand Gold. An unhedged gold exploration and production group, Central Rand Gold today employs some 113 staff across its various administrative, mining and metallurgical operations. Having comprehensively

Central Rand Gold

researched the geology of the Central Rand Goldfield, tested various mining methodologies and devised a strategy to commercially extract viable gold despots from the area, the company received its first New Order Mining Right from the South African Department of Mineral Resources in August 2008. To date the company has acquired a number of New Order prospecting rights. These assets are respectively known as Consolidated Main Reef, Western Areas A, B and E, Langlaagate,

Crown Mines, Anglodeeps, Village Main, Robinson Deep, City Deep, and Simmer and Jack. Central Rand Gold’s prospecting rights extend over an area of approximately 40 kilometres from west to east and seven kilometres from north to south. Much of the company’s focus today is on its Consolidated Main Reef (CMR) operations, which has been split into CMR West and CMR East, and the Crown Mines development. CMR West is Central Rand Gold’s first mining target area, comprising

BE Weekly [ Issue 91 ]

SSC GROUP

Together we grow The services that we offer at Sekgwa Mining are: Backfilling • Primary service spans from backfilling to deep-level mining practice • Sekgwa mining can design and build of various backfill systems to a depth of 2200m below surface and with reticulation systems in excess of 50km Mining • Sekgwa Mining is able to supply the complete package for both conventional as well as mechanised mining

Why Sekgwa Mining Services? • The mining solution is tailored to the mining method in place; • Risk assessments are undertaken prior to the design to ensure that all safety requirements are met; • Good safety and strong industrial relations track record; • 109 years of combined mining management experience; • Offers personal service by dynamic and passionate managers and staff +27(12) 665 5336 fred@sscgroup.co.za www.sscgroup.co.za

Sekgwa Mining is a black majority owned company and offers an environmentally friendly Backfill engineering service which allows companies to move some waste underground and mining services. Our Core Values • Safety, Health and Wellbeing of our people and their families • Trust, loyalty and respect for all our stakeholders • Honesty, integrity and transparency in the way we conduct our business • Mutually beneficial, value-adding partnerships Contact Details: Sekgwa Mining Services (Pty) Ltd CEO – Fred Arendse Operations Director – Harry Becker Tel: +27(12) 665 5336 Mobile: +27(83) 455 1663 (Fred) Mobile: +27(82) 045 5980 (Harry) PO Box 68925, Highveld, Centurion, 0169

[ Issue 91 ] BE Weekly

Central Rand Gold

â&#x20AC;&#x153;Central Rand Goldâ&#x20AC;&#x2122;s prospecting rights extend over an area of approximately 40 kilometres from west to east and seven kilometres from north to southâ&#x20AC;? an operational underground and opencast gold mine that utilises conventional opencast stopping and extraction methods. This particular mining operation processes its own run-of-mine output through its own in-house processing facility that can operate at a capacity of up to 20,000 tonnes per month with an average recovery rate of around 95 percent. In 2011, CMR West was responsible for producing 14,856 ounces of gold from underground and surface operations,

compared to 9,321 ounces in 2010. With a proven methodology, more than 6,000 metres of development in place, and mine depth down to 225 metres below surface, this mine has sufficient underground ore availability and is estimated to have increased underground production to 12,000 tonnes per month during later 2012. Late 2012 also saw the company conduct feasibility studies on the CMR East mining right area. CMR East is expected to be the first additional project to be developed by

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Central Rand Gold. A significant benefit in the development of this as a new mining site is the fact that the current infrastructure at the adjoining CMR West mine will be able to be utilised. This will provide major cost advantages for the viability of mining the CMR East prospect. Following the anticipated development of CMR East, it is expected that the Crown Mines West deposit could be the next to be developed. It is also undergoing pre-feasibility testing and a scoping study before any development decisions are made. The Crown deposit has a resource base of over one

million ounces in the indicated and inferred categories, and has the potential to produce in excess of 50,000 ounces of gold a year once fully developed. It has been estimated by independent mining consultants Venmyn Ltd that, from the surface to approximately 450 metres below, Central Rand Gold’s current resource base is a level of 26.2 million tonnes of ore and 4.51 million ounces of gold, at an average grade of 5.34 grams per tonne. Furthermore it is estimated that from 450 metres down to a depth of 3,000 metres, another 120 million tonnes of ore exists. This ore is thought to

“Central Rand Gold’s mining activities within the vicinity of the Johannesburg metropolitan area requires a completely unique and environmentally rigorous mining plan”

[ Issue 91 ] BE Weekly

Central Rand Gold

well as the Social and Labour comprise of around 32.2 million Did you know? Plan, which has to be carefully ounces of gold at a grade of integrated into the Johannesburg 8.34 grams per tonne. Metropolitan City Councilâ&#x20AC;&#x2122;s Central Rand Gold adheres 2008 Integrated Development Plan. rigidly to international best The year the For its part the company is also practices when it comes to company was conducting an Environmental sustainable development. To awarded its Impact Assessment and devising this end it pursues a policy of first New Order an Environmental Management openness and transparency in Mining Right Plan which involves widespread all its dealings with legislators, public participation. Affected affected communities and 133 communities and groups other stakeholders. People employed have been broadly consulted All of the companyâ&#x20AC;&#x2122;s mines by Central Rand throughout this process to are required to develop a Social Gold across its ensure a beneficial outcome and Labour Plan to demonstrate operations today for all concerned. how the mine will comply with In addition to the above, the objectives of social and Central Rand Goldâ&#x20AC;&#x2122;s mining economic development and activities within the vicinity of the empowerment that are laid out in the Mining Johannesburg metropolitan area requires Charter for the South African mining industry a completely unique and environmentally in terms of the MPRDA. Central Rand Gold rigorous mining plan. To this end the company has indicated that it is committed to develop has been working to establish a new standard and implement the Mining Work Program, as

BE Weekly [ Issue 91 ]

[ Issue 91 ] BE Weekly

Central Rand Gold

for environmentally safe, clean and nonintrusive mining in South Africa. This new standard will see mining taking place within narrowly contained â&#x20AC;&#x153;slotsâ&#x20AC;? initially, proceeding to depths of 30 metres at first, and up to 900 metres within a matter of a few years. It is believed that this will be unlike any other mining operation in South Africa due to the novel mine design and the use of cutting edge mining and environmental technologies, many of them successfully in use in Australia and elsewhere today. Great care has been taken in the planning of the proposed mine to ensure that environmental impacts are minimised and contained. The potential environmental impacts have been analysed in detail and the Environmental Management Plan (EMP) will incorporate state-of-the-art mining and environmental technologies. Slot mining methods will be used to access outcropping ore so as to minimise disruption to the surface, and mining voids will be systematically backfilled and rehabilitated. Portions of the proposed mining area comprise disturbed land due to old mining activities which, due to the presence of old underground workings and disused shafts, pose a safety threat to nearby communities. Central Rand Gold will strengthen some of these old workings and make safe old shafts, and will rely for the most part on a new underground network using state-of-the-art technology. The company will backfill some of the old disused tunnels and workings that currently make a rabbitâ&#x20AC;&#x2122;s warren of the area underlying the Johannesburg central business district, thereby making it safer.

Central Rand Gold

+27 (0)87 310 4400 info@centralrandgold.com www.centralrandgold.com

BE Weekly [ Issue 91 ]

Photo: Lars SvankjĂŚr

Royal Ar

Greenland

Boasting more than 20 years of internal experience employees have become a massively important lifelin liner services with servicing businesses within words by

[ Issue 91 ] BE Weekly

Will Daynes

rctic Line

dâ&#x20AC;&#x2122;s lifeline

of sailing in Arctic waters, Royal Arctic Line and its ne for Greenland. The Company combines its regular Greenlandâ&#x20AC;&#x2122;s emerging mineral and oil sectors research by

Vincent Kielty BE Weekly [ Issue 91 ]

Photo: Dan Boman

Operating in remote areas with little or no infrastructure comes with establishing mines in Greenland

[ Issue 91 ] BE Weekly

Royal Arctic Line

or more than 20 years (since 1993 to be exact) Royal Arctic Line has been a premier provider of specialist services and skills to customers in Greenland and the wider Arctic region. Wholly owned by the Government of Greenland, Royal Arctic Line and its vessels hold an exclusive concession for the transportation of general supplies by sea to and from Greenland, and between the various Greenlandic towns and settlements. Through its subsidiary, Royal Arctic Bygdeservice, goods are also carried to all the settlements, while Royal Arctic Havneservice handles operations in the 13 biggest ports and harbours in Greenland, and at the same time represents the port authority on behalf of the state in these ports and harbours. Forwarding activities such as air freight, combined air/sea freight and consolidated are undertaken by Royal Arctic Logistics. Furthermore, the group is also a major supporting player within Greenland’s oil and mineral exploration sectors with activities in these fields being undertaken by Arctic Base Supply, a business co-owned by Royal Arctic Line and Norwegian Norsea Group. A quick glance over the aforementioned services really does highlight why the company has come to be seen as one of Greenland’s most important lifelines. Greenland, and indeed the other countries that exist within or between the Arctic and Atlantic Oceans, of course comes with its own unique environment and climate, and thus its own unique challenges. It stands to reason therefore that not just any company, shipping or otherwise, is suited for servicing the country. Rather it takes those with market leading experience, knowledge and capabilities to earn business in this remote part of the world. “What you have with much of Greenland is an environment typified by difficult weather and geological conditions, and little or nothing in the way existing infrastructure,” explains Royal Arctic Line’s Commercial

BE Weekly [ Issue 91 ]

Director, Niels Clemensen. “What we have as a business is a large degree of competency, experience and understanding of what it is like to operate within the Arctic. Alongside this we have the physical assets of a fleet of vessels and equipment specifically designed with the Arctic environment in mind.” The fleet that Clemensen speaks of consists of ten ships, each meticulously designed to overcome the challenges that operating in the Arctic possesses. The company’s biggest ocean-going vessels and feeder ships are

[ Issue 91 ] BE Weekly

of the highest Baltic ice classification and have been specially-built with double hulls and high freeboard so they can sail in Arctic waters. All the ships are fitted with cranes and are supplemented with the shipping company’s barges. “Our vessels are designed especially for carrying out trade to and from Greenland, and for sailing on the North Atlantic, which is of course a very rough sea,” Clemensen continues. “All equipment on board is designed to operate down to -30 degrees,

Royal Arctic Line

Royal Arctic Line’s fleet is designed for Arctic conditions and able to operate just about everywhere in Greenland

“Our vessels are designed especially for carrying out trade to and from Greenland, and for sailing on the North Atlantic”

which is the standard that we work to given that we understand the demands that can be placed on this equipment, especially during the Arctic winter. It is vital to remember at all times also that when working in this part of the world there is almost never a time when there isn’t a huge distance between yourself and the nearest spare part or support vessel. With that in mind the utmost attention to detail goes into each operation our vessels conduct.” Arriving at Greenland in the search for minerals presents the industry with the

BE Weekly [ Issue 91 ]

challenge of overcoming a remote landscape lacking in infrastructure. Fortunately for these companies Royal Arctic Line and its subsidiaries are more than used to operating under such demanding conditions. The company prides itself on the wide range of logistical and transportation services it can offer its customers. Particular solutions of note include the transport of fuel, machineries and special cargo, regular connections to the US and Canada, consolidation of cargo before shipment, monitoring and surveying,

ice management, forwarding services and preparation for sling operation from barges. To date Royal Arctic Line has been a major provider of logistics support during the construction and operation of several notable mines such as the Olivine Mine and Nalunaq Gold Mine in Greenland. “The services and equipment we have available to the mineral sector are varied enough to support all stages of mineral development, be it the construction, production or operational stage of a mine’s

“The services and equipment we have available to the mineral sector are varied enough to support all stages of mineral development”

Delivering supplies to Antarctic bases includes operating directly on the ice cap

[ Issue 91 ] BE Weekly

Photo: Lars Svankjær

Royal Arctic Line

Ice management is crucial when operating in Arctic waters

life,” Clemensen enthuses. “The most important thing to remember is that all of these mines are established in the most remote of locations, miles from what few established towns there are and with practically no infrastructure in place to support their growth. What makes us unique is that we are able to reach such locations, places that other shipping companies cannot, and we have the built in knowledge, systems and capabilities required to immediate begin supporting customers in the mineral industry regardless of what stage of development they find themselves.” Royal Arctic Line has also taken the initiative in examining other business opportunities, both in Greenland and further afield. “We also recognise the need to target specific niche markets that are best suited to benefit from our fleet and our unique

capabilities,” Clemensen highlights. “So, for example, we have spent the last five years providing supply services to Antarctic bases belonging to the likes of Belgium, Germany and the UK, to name a few countries, while one of our vessels is regularly leased out to the Norwegian Polar Institute to supply their base. These are the kinds of niche, yet hugely important, jobs that our vessels can undertake and that those belonging to other container lines are unable to.”

Royal Arctic Line

+299 34 91 00 kundeservice@ral.gl www.royalarcticline.com

BE Weekly [ Issue 91 ]

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