BE.Monthly

ACHIEVING BUSINESS EXCELLENCE ONLINE

MONTHLY EDITION January 2013

a jewel in

the crown Barrick’s significant investment programme for South America

auriant mining: b-mobile: british american tobacco:

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 292 to see this month’s listings

To find out how to get involved contact: vincent@bus-ex.com

business excellence contact us 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

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

CONTRIBUTORS Michael Houlihan and Bonnie Harvey

Matt Day Head of technology mday@bus-ex.com

Founders of the Barefoot Wine brand, authors and business consultants.

Andy Turner Chief Executive aturner@bus-ex.com

Founder and president of Brand Keys, Inc, with 35 years’ experience in strategic brand planning.

Robert Passikoff

George F. Brown, Jr.

Subscriptions

info@bus-ex.com

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

John Tschohl Infinity Business Media Ltd

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

www.bus-ex.com The content of this magazine is copyright of Infinity Business Media Ltd. Redistribution or reproduction of any content is prohibited. Š Copyright 2013 Infinity Business Media Ltd.

John is founder and president of the Service Quality Institute in Minneapolis, Minnesota.

Bill Lee

A world authority on customer advocacy and engagement, he is also a sought-after speaker and presenter.

Simon Orme

Managing director of Emros Partners, a growth development specialist for suppliers in the technology sector.

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features 12 Comment: Customer service

Masters of the customer experience

Compared with customer service giants like Metro Bank, Apple, and Amazon, what kind of value do you provide your customers?

16 Comment: Marketing

Lucky thirteen

Thirteen critical trends for marketers and brand managers for 2013, from leading customer engagement specialist Robert Passikoff.

20

12 20 Lead Story: Two decades of change (part three)

Sales and marketing, China-style

The last in our three part series on changes in the Chinese economy examines how selling has become an important business function.

28 Strategy

Growth choices

Which aspects of your business offer the greatest growth potential? A systematic approach to making this judgement can help leaders feel less like gamblers.

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contents 36 Time management

Making time

The challenges that managers face, and ideas to help make the most of your time.

42 Entrepreneurship

Building a square hole

Innovative ideas and inspiring advice for small business owners, from entrepreneurs who learned by experience.

50 Marketing

The end of marketing as we know it

50

Implementing marketing techniques based on peer influence and community building.

60

60 Executive insight

ismail dockrat, ceo, denel aerostructures

Ismail thinks social media is overrated, and prefers novels to business books.

64 Executive insight

Lincoln Dahl, managing director, African Energy Lincoln distrusts media hype and IPOs, but believes in creating opportunities for others.

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business showcase

66

Mining & minerals 66 Auriant Mining

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

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86

76 Barrick South America The jewel in the crown

Barrick has a significant investment programme for South America in 2013, much of which is targeted to advance the construction of Pascua-Lama.

86 Southern Copper Corporation Expanding horizons

Raúl Jacob highlights the massive expansion programmes the company is undertaking, both in Peru and in Mexico.

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contents

96

96 SSG Consulting The key to prosperity

How a lack of fear, a willingness to embrace innovation and good old fashioned family values have combined to create a leading project management consulting company.

104 Inorganic Ventures

Blending knowledge with passion How this leading manufacturer of certified reference materials is targeting the mining sector.

112 VIMA Group

The vision to succeed Chairman Zouzar Bouka explains his vision of a new Madagascar and how VIMA Group is making this a reality.

124 Bentley Systems

112

A source of inspiration

Bentley has all of the top five mining companies as customers for its comprehensive software solutions.

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business showcase

134

134 American Coal Council Power struggles

Finding a way to overcome the challenges facing the coal industry in the United States.

144 GeoProMining

Taking a professional approach A combination of international mining expertise and on-the-ground experience has created an enviable track record.

152 Exxaro Resources Champion of change

An extraordinary South African resource company with a strategic vision to become a $20 billion company by 2020.

144

manufacturing 162 Denel Aerostructures

Making the transition

Chief executive officer Ismail Dockrat discusses the restructuring programme that has contributed to this South African success story.

172 British American Tobacco Trail blazing

162 8 | BE Monthly

Global tobacco giant British American Tobacco is realigning its supply chain function to improve operational efficiency.

contents

184 Lanka Walltiles Wall to wall quality

For almost four decades Lanka Walltiles has remained a leading figure in the Sri Lankan ceramic tile market.

194 Coogee Chemicals The right chemistry

As a diversified manufacturer of chemicals and a major tank terminal operator, Coogee Chemicals plans to continue the work that has made it one of the sector’s biggest success stories.

184

Telecoms & IT 204 POTRAZ

Zimbabwe talking The national regulator overseeing the development of Zimbabwe’s telecommunications network.

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222

214 Finnet Association Fibre for all

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

222 CAT Telecom

Making sense of the future Leading the way in wireless multimedia services in one of Southeast Asia’s most economically dynamic nations.

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business showcase

230

230 B-Mobile

Setting the trends Acting chief executive officer See Wei Kie explains how B-Mobile is at the heart of Brunei’s evolving telecommunication industry.

238 Business Connexion Group A powerhouse of business solutions Renowned for the provision of high quality, high performance business technology solutions.

Transport & Logistics 246 Yilport Container Terminal

246 264

A privilege to serve

CEO Sean Pierce discusses the rapid growth of Yilport Container Terminal and reveals that there is much more to come from the business in the years ahead.

254 New Port Project, Qatar A greenfield port

The design and development of a port to meet the requirements of the Qatar National Vision 2030.

Oil & Gas 264 PetroSA

Inspiring national pride By embracing change and innovation, PetroSA is opening up new horizons for South Africa’s energy sector.

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contents

276 Wings Travel Management The sky’s the limit

With the oil and gas industry stretching across the globe, companies like Wings Travel Management have never been more important to their customers.

Food & Drink

276 284

284 The Red Meat Abattoir Association

Meat standards

A membership organization for the abattoir industry in South Africa, dedicated to best practice as well as the profitability of its members.

BE Directory 292 DORCE

Building a better world

294 Inorganic Ventures We flex to your specs

292

296 Jeffares & Green (J&G) Group Consulting engineers

298 RED DIRT PERSONNEL Resources for resources

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Comment: Customer service

I

am often asked how I define exceptional customer service. Here it is in a nutshell: speed, price, and technology— all built around service.

That definition is especially appropriate today, given the fast-paced life we live and the budget constraints many of us face. When we are looking to make a purchase, we want to do it conveniently, we want it now, and we want it at a good price. That is true whether we are purchasing a car or carpet cleaning, an air conditioner or airline tickets.

How do you provide that exceptional service? Take a good look at how you deal with your customers, from initial contact to closing the deal. Are you welcoming, whether customers walk through your physical doors or virtual doors? Do you call them by name? Do you have a smile on your face and in your face? Do you provide the information that will help them make an informed decision regarding their purchase? Do you deliver what you say you will as quickly as possible?

Let me give you examples of three companies that

go above and beyond to not only meet, but exceed, customer expectations. At Metro Bank in London, you can open an account in just 15 minutes, complete with checks, a debit card, and an account password. At other banks, that process would take at least two days.

Metro Bank has the most sophisticated technology of any bank in London, but it also focuses on the human touch. Real people answer its phones in one to two rings 24 hours a day, seven days a week.

It also competes on price; customer checks are free, and customers can use their debit cards throughout the world—with no fees.

Metro Bank’s focus on speed, technology, and price has proven to be more than a little successful. It opened July 29, 2010 and today has more than 130,000 accounts and $2 billion in assets. It projects that it will have at least 5,000 employees and 200 offices in the greater London area by 2020.

Apple, the most valuable company in the United States—with more than $7,000 in sales per square

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“Metro Bank, Apple, and Amazon have incredible value because they create incredible value for their customers�

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Comment: Customer service foot at its Apple Stores— bases everything it does on speed. Walk into one of its stores, and an employee immediately greets you and asks what type of help you need. The employee then enters your information into a hand-held device and, when your name is called, another employee accesses that information and is ready to help you.

Apple’s focus on its products, and on going above and beyond in meeting its customers’ needs, has made it a service leader. It bases all of its product innovations on speed and, because it has such a strong brand, customers are willing to pay more for those products.

And those customers flock to its stores. In fact, each Apple Store averages 5,400 customer visits per week.

A mazon is anot her company that has realized great success by focusing

5,400 Average Apple store customer visits per week on speed, price, technology, and service. The company constantly attempts to eliminate cost—and then passes those savings on to its customers, which results in prices with which other companies have no chance of competing. In fact, Amazon is so competitive that is has sof t ware customers can use to scan a bar code in a retail store to see if Amazon has a better price for a specific product.

When it comes to speed, you’d be hard pressed to find any company that would beat Amazon. I get confirmation of my orders im mediately and am notified when my order has been shipped. The company

also offers its prime members free shipping and no sales tax.

Ever y t h i ng A ma zon does, it does to make buying its products easy for the customer. Combine that ease with state-of-theart technology and prices that are almost impossible to beat, and you can see why A mazon had $41 billion in sales during 2011, a 41 percent increase over 2010.

These three companies— Metro Bank, Apple, and Amazon—have incredible value because they create incredible value for their customers. They have mastered the customer experience. What value do you offer your customers?

Is it enough to keep them coming back to you? If you want to ensure the success of your business, give your customers the type of service that will keep them loyal for life.

John Tschohl, the internationally recognized service strategist, is founder and president of the Service Quality Institute in Minneapolis, Minnesota.

Described by USA Today, Time, and Entrepreneur as a “customer service guru,” John’s monthly strategic newsletter is available online. www.customer-service.com

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Lucky

13 by: Robert Passikoff

comment: Marketing

I

t’s 2013, and as everyone knows, the number 13 holds great symbolism.

For the religious among us there were the 13 guests at the Last Supper and the 13 tribes of Israel. Scientists know the Universe is governed by 13 fundamental constants of physics, and the relationship between the volume of the Earth and the Sun is 1310.

For shoppers there’s the added value of 13 items comprising a ‘baker’s dozen.’

Anthropologists study the 13 skies of the Aztecs, but for marketers and brand managers who want to look beyond the horizon, Brand Keys’ validated, predictive loyalty and engagement metrics have identified 13 critical trends for 2013.

1. The expectation economy Over the past decade, customer expectations have increased on average by 28 percent, but brands in all categories overall have kept up by only 8 percent, which anyone at the checkout counter can tell you is an awfully big gap between what brands offer and what

customers desire. Accurate measures of real, often hidden, expectations provide significant advantages to brands that understand their value and point to how to delight customers.

2. Me-tail The consumers’ heightened awa rene s s of t hei r actual control, added to the commoditization of brands and products, equa ls a sig ni f ica nt segment of consumers craving customized and personalized products and services (see success of Pinterest). Customization will become an even more important brand differentiator, with returnson-investments of loyalty and profitability made-toorder for your brand.

3. E-tail everywhere Along with consumer expectations, online retailing increases daily. But increases in brand equity, and usage among online retailers, will come with consumers’ desires to be constantly connected to these brands. Brands will have to watch for online retail pop-up stores, like Amazon,

and physical kiosks for brands like Groupon, and think in terms of broader access.

4. Siri-ously soon Voice assistance – or more accurately, voice assistants – will become more the rule than the exception. Such applications will be designed and incorporated into more devices to meet consumers’ increasing expectations for immediate and customized support in all forms of outreach.

5. The known and the branded Real brands will become rarer. Examples of brands that delight consumers have become the yardstick to evaluate all products and services. While we may still call them brands, consumers think of them as category placeholders: stuff that doesn’t stand for anything.

Understanding what will turn consumers into fans will provide a foundation for meaningful differentiation.

6. Story telling tales Br a nd s t h at seek differentiation and wish to establish emotional

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connections that produce consumer engagement will need to get better at storytelling. Understanding where the gaps exist between emotional aspects of the brand’s category ideal and how the brand is seen by consumers, can provide opportunities to identify unique stories, histories and tales that will differentiate, entertain, and engage.

7. It’s not going to get any easier being green P r o du c i n g , selling, and shopping based on environmentally ‘green’

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production and design, fairtrade and socially conscious consumption is on the rise.

But given ease of consumer outreach and their ability to pull back the brand curtain, watch for significant increases in total sustainability and corporate responsibility in the consumers’ decision process.

8. Social susceptibility Watch for greater influences of engagement and purchase habits via friends and social networks. Brands will have to factor in the reality that peer-to-peer communications

come in three varieties: good, bad, and bland. This makes companies more susceptible to consumer indifference, their conversations and social interactions. Already brands are watching the ‘de-friending,’ or worse – negative news or outright bad evaluations about the brand.

The brands that make it here will know the ‘how’ of this consumer-controlled space.

9. Mobile screen tests Mobile devices will become mainstream, testing retailers on their screens.

Brands must prepare to

comment: Marketing accommodate this trend, as consumers will rely more upon screens to engage with brands and guide purchase decisions. Brands will need to create carefully targeted campaigns for this platform and provide screen-friendly promotional materials and retail sites.

10. App savants Consumers will take greater advantage of applications.

But this year those typically small, specialized programs downloaded into mobile devices will move beyond games, GPS, and media, to more personalized applications that monitor, remind, suggest, learn, and know their users’ profiles and preferences. Brands will need to make greater use of such emotional and intimate connections.

11. Facebook is a given With brand ubiquity on the largest social network, recognition will be the least of a brand’s concerns. The question is not, “should I be on Facebook,” but has now become “what should I do on Facebook?” Brands will have to graduate from posting

28%

Increase in customer expectations in last ten years pictures, collecting friends, and/or offering coupons. But doing so will depend on the category in which the brand competes and where social networks make themselves strategically felt in the category.

12. Saturation levelling It’s no secret that there are more products and services using more platforms and outreach streams with the marketplace dangerously close to saturation. But just because it’s different, doesn’t mean it’s differentiating.

Brands will have to plan and research engaging pre-launch

activities if they wish to level the playing field and earn a high engagement-to-effort return on their investments.

13.Engagement empowers Non-engaged customers are a brand’s most vulnerable assets—period. Marketers need to engage all along the journey, from engaging plat for ms, prog ra ms, messages, or experiences.

Brands must keep their eye on the prize when using any of these engagement methods, however. It’s all about meeting the ultimate goal of increasing brand engagement.

By the way, the number 13 is also thought by some to be unlucky, and we agree, but only those brands that ignore these trends will risk the failure of their branding, engagement and marketing efforts in 2013.

Robert Passikoff is founder and president of Brand Keys, Inc, with 35 years’ experience in strategic brand planning for B2B and B2C product and service categories. He has pioneered work in loyalty and engagement, creating the Brand Keys Customer Loyalty Engagement Index®, and the Brandweek Loyalty Leaders List. www.brandkeys.com

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20 | BE Monthly

Lead story

Two decades of change (part three)

and Sales

marketing China-style The last in our three part series on the profound changes that have taken place in the Chinese economy examines how selling has become an important business function

written by: David G. Hartman

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A

s we have discussed in the previous parts of this article, China has demonstrated with its explosive growth since 1992 that there are advantages to allowing market forces to make decisions. That two decade period has been marked with remarkable change, as business-tobusiness markets have been created and markets have begun to transition from local to national. For Chinese firms, perhaps the most demanding change has been the requirement to develop new competencies related to sales and distribution, which have become important business functions. Like the other changes previously discussed, this one is still evolving, with key questions to be answered by firms looking to do business in China. Will China’s sales models continue to involve a complex tiered-distribution structure, one that we have seen creating difficult management challenges in many industries, or is China in a transition to something very different in terms of

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how products are sold and delivered to customers?

In the China planned economy of the 1980s, the role of enterprises was to perform production to plan and get the products to the assigned location, without the need to have any understanding of markets or customers. The business cards of company heads said “Plant Manager” not “CEO” and that was an accurate description of the assignment.

China is a very large place, with challenges galore in supplying consumers and factories, and the role of physically moving products to meet customer needs is a critical one. Understanding the historical focus on making and moving products rather than marketing and selling to customers helps to put the current state of sales and distribution into context.

As “plants” became “companies” and “production quotas” became “sales plans,” market penetration gained importance for the first time.

We met the person in China’s textile industry who was the first to have the title “Head of Marketing and Sales” in that industry at a workshop in the

Marketing is a ne

ew concept to Chinese manufacturers

Lead story mid-1990s. The challenge she faced in her new job became evident when she explained: “We have had two types of sales. One has been to deliver products to the clothing factory according to the plan. The other is that we sell to an agent in Hong Kong. We have never actually met with a customer and we do not know the names of any, or what they make from our products‌or even what they pay. Can you help us?â€?

The years since then have seen enormous changes.

Consumer product companies and some business-tobusiness suppliers first opened branded storefronts to demonstrate and sell products across China.

Many were company-owned, but gradually independent multi-tiered distribution systems grew up to cover China. Distributors (dealers) often were those who transitioned from providing transportation and selling services under the old system to taking title to products and selling. Typically, a tier 1 distributor in a major city (provincial capital) is appointed by a manufacturer and that distributor recruits

tier 2 distributors, who recruit others etc. We have seen five-layered tiers of distribution networks for products such as computers and consumer electronics.

In cities, auto parts and MRO (hardware) dealers congregate in street malls.

Individual dealers, many selling identical products, are found side-by side. Some of these malls have developed into indoor locations, but with the same bargain-shopping look and feel. Business-tobusiness customers come to the dealers and buy from a large variety of options in one location. Products that also are purchased by consumers like computers are largely sold in the same way, but in nicer and more convenient surroundings.

Still, there will generally be multiple Lenovo or Asus dealers vying for business.

The plethora of sellers ensure a fair price, but developing a relationship with one dealer guarantees reliability and after-sale service. The factors that drive success for such distributors and dealers have thus evolved considerably.

The tiered-distribution structures are superb

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vehicles for reaching across a complex geography at a low cost to the manufacturer, but are difficult to manage.

Even for larger purchases like construction equipment, where reaching beyond major cities is essential, we have been told that few manufacturers know anything about their dealers below the first tier and that cutthroat price competition among dealers selling identical products is the rule.

Messages about value are nearly impossible to drive down through the tiers.

For even complex businessto-business products, like elevators or large climate control systems, the dealers’ focus is not necessarily on product, service, or even price, but rather on relationships with customers or guanxi.

We have interviewed hundreds of dealers of all kinds of products over the years asking about

Big box stores offer reliability in the supply chain

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what contributes to their success in the marketplace, hoping to hear productservice-price messages.

The comment of one seller of climate control systems in an interview several years ago is representative of their frequently-stated belief that none of that is very important. “There are three things that determine a distributor’s success in the market: the first is guanxi; the second is guanxi; and

Lead story

“There are three things that determine a distributor’s success in the market: the first is guanxi; the second is guanxi; and the third is also guanxi” the third is also guanxi.”

The relationship between suppliers and customers is a strong bond in a country where contracts and the legal system do not provide insurance. Relationship is

the main way that customer satisfaction and after-sale service is ensured. Service is, then, largely a dealer responsibilit y, lending even more power to the strength of the “dealer’s brand” as opposed to the “manufacturer’s brand.”

In s u m m a r y, a distribution system based on transportation has been replaced by one where success is defined by the sales model and service competencies. That is a revolutionary change in a short period of history. But a combination of intense competition and dealers who sell on personal relationships has limited the ability of anyone in the marketplace to really distinguish their offering, allowing the dealer to hold all the cards. For Chinese manufacturers, who didn’t have a history of thinking about the market anyway, it has

made product differentiation very challenging.

In some business-tobusiness markets, customers have deliberately begun to reduce the importance of relationship in choosing vendors. We have seen that with some real estate developers, for instance.

Moder n ma nagement education has pushed in that direction, for companies that are focused on the bottom line. In other cases, especially where government and their companies are the customers, guanxi is still paramount.

Big box stores have also emerged, with names like Gome and Sunning in electronics and Home Depot and B&Q in hardware. They offer reliability in the supply chain (no fake products) and pleasant surroundings, but not the confidence of a good deal that comes with haggling among multiple

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“Since China’s dealers have few assets beyond their relationships, it is hardly surprising that they guard them perhaps more fiercely than in the west” sellers and choosing one with which there is a trusting relationship. So, once again, a gradual transition continues.

That is the China market that our clients are often entering. The challenge is that to be profitable they need to deliver value messages that are far different from what the customers are used to hearing, working within a market structure that is set up to diminish the power of those messages in favor of price competition and dealer guanxi. The best solutions often involve a channel driven business model, but with a strong manufacturers’ sales support organization to provide content and technical support to end customers during the presale and post-sale operations phases of a relationship.

The company sales support organization must go beyond end customer support, often needing to first overcome

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dealer resistance. They must convince the dealers that their role is support for sales at better margins, not an effort to learn about and supplant dealers in t heir relat ionships — a challenge not unfamiliar in t he relat ionships western manufacturers have with distributors who jealously guard end customer relationships and knowledge. Since China’s dealers have few assets beyond their relationships, it is hardly surprising that they guard them perhaps even more fiercely than is the case in the west.

Marketing and selling have become critical competencies in China, and the mastery of those functions is a differentiator in culling out the winning firms from the long roster of aspirants. And while the evolution of the distribution function has enabled Chinese

manufacturers to reach broader markets, many of them recognize the handicaps associated with the current distribution structure. They are now trying to understand Chinese-st yle channel management, hoping to create relationships in which the dealers are creating value through service and partnerships with the manufacturer, enabling both firms to win because of factors other than price.

So, once again, the journey is underway, and we can expect the evolution to continue for many years to come and at an uneven pace across industries.

In twenty years, China has successfully transitioned from a planned, centrally dictated economy to a market economy. It has created markets across a broad range of products and channels and across a very complex geography.

Lead story

Marketing and selling have become critical competencies in China

Business-to-business markets, national suppliers, and competent sales models can now be observed in many industries, and experiments are underway in all three of these areas in many other industries.

In many cases, China’s markets are still in their

infancy in terms of producing the right incentives to meet customer needs, but in others, markets are close to mature. As we look ahead, we can predict that change will continue and that the evolution will produce results that are a blend of what has worked in the west and

David G. Hartman is Blue Canyon Partners’ China Practice Director. He has previously served on the faculty of Harvard University and as executive director of the National Bureau of Economic Research. He has been

what has been the history within China. The business environment will continue to evolve differently in shape and over time across China’s markets. The opportunity and the challenge have both just begun, and the dimensions of both befit the scale of China’s market.

an active participant in China’s markets for over twenty years, speaks Mandarin, and resides in Beijing. His clients include a roster of Fortune 500 firms and Chinese companies. www.bluecanyonpartners.com

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Grow th

c

Wh gro ich thi wth aspec s ju pot t dge ent s of y me ial? our nt can A sys busin hel tema ess wri p le tic t te a der app nb s fe y: G el eor

ge F .

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Bro wn

Strategy

choi ces

offe r pro the g ach rea less to m test like a gam king n, J ble rs r.

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T

he lyrics to The Gambler focus on c hoices: “Know when to hold ‘em, know when to fold ‘em”. For most businesses, identifying the best choice is among the most critical contributions of their planning process. Which business units or market segments or innovation concepts offer the greatest potential for profitable growth, and therefore represent the best use of scarce investment resources?

It’s always a challenge to assess accurately the growth potential that exists across a firm’s various business units and market segments.

Peter Drucker once observed “Whenever you see a successful business, someone once made a courageous decision.” Placing bets as to where growth can be realized will always require a bit of courage, but a systematic

approach to assessing growth potential can yield insights that clarify choices and lessen the extent to which business leaders feel like gamblers.

A process for gaining these insights involves looking at the market environment and other factors that characterize the position held by the business unit vis-à-vis its competitors.

Market considerations Three factors that reflect market considerations – headroom, market growth, and margin improvement opportunities – can be assessed across a firm’s business units or market segments.

The headroom metric emphasizes the extent to which the market offers sufficient room for growth.

The favourable end of the spectrum involves instances in which the existing business offers sufficient

“Whenever you see a successful business, someone once made a courageous decision” 30 | BE Monthly

Strategy

“factors that reflect market considerations are headroom, market growth, and margin opportunities” room for growth, while the less favourable end involves situations in which significant diversification or new business models are required.

When a business owns a commanding market share, a first pass look will always say there is sufficient room for growth, but that look can be misleading. The more appropriate approach is suggested by an analogy drawn from the recent US Presidential elections. We frequently heard about states that were “solid red” or “solid blue”, ones that were virtually certain to be in the camp of one candidate or the other.

The same is true of markets and customers. An accurate assessment of headroom must look for the equivalent of “swing states”, those which could realistically be won by the business unit in question.

Market growth is the second key factor to assess.

It is always a major plus to be selling into growth, rather than having to take share from existing suppliers. The most favourable indicator of solid growth potential is when market growth is at or above the growth rate goals of the business unit.

Slightly less favourable, but still attractive, are those situations in which a unit’s growth goals can be realized by capturing a larger-thannormal share of the growth increment in the markets in which it participates. The most challenging situation involves a requirement that business be taken from competitors in order to realize growth goals.

Part of the assessment of market growth involves looking at not only currentlyserved markets, but also those that are viewed as nearby or adjacent. Most western firms can identify market growth if they include

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emerging markets like China and India. Less extreme, but equally frequent, are assessments that identify adjacent vertical markets or product line extensions that offer meaningful growth increments.

Including such additional markets in the assessment of growth potential can be quite misleading, and should only be done if there is truly a base upon which to build and if movement into such nearby or adjacent markets can be

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done without a significant shift in the business models operating within the firm.

The third factor in this cluster focuses on margin improvement opportunities, which are closely linked to the intensity of pricing pressures. Capacity balance, barriers to entry, healthy markets, and strong customer relationships are the factors that yield positive scores in this dimension. Excess capacity, ease of entry for competitors with look-alike

products, troubled markets, and distant arms-length relationships with customers are characteristics of the unfavourable end of the spectrum.

Also relevant is the importance of pricing to the success of the business unit being evaluated. There are several factors that define how important pricing is to a business. One is the degree to which profit swings are dictated by pricing, instead of being driven by

Strategy

“the most important aspect of the assessment is the comparison of a business unit’s position to that of its competitors” volume, productivity, cost management, etc. Another factor is the extent to which customers’ purchase decisions swing quickly in response to price changes. Situations in which customers use dual source supply

relationships often result in such swings. Vulnerability to commodity price swings is a third factor defining the importance of pricing.

The best circumstance is one where there is low intensity of pricing pressures and pricing is only of limited importance to the firm’s profitability. In this instance the firm has many options available and can select those that are most likely to foster long-term profitable growth.

The worst situation is one in which intense pricing pressures are combined with a high importance of price as the main determinant of success.

Positioning considerations A second set of factors focuses on positioning visà-vis the competition. Here, once again, there are three factors that can be assessed: purchase decision factors,

short-term fit, and business drivers. There are market factors that affect all three of these metrics, but the most important aspect of the assessment is the comparison of a business unit’s position to that of its competitors.

The quality of positioning involves the match (or lack of it) between a business unit’s competitive strengths and the top factors that affect customers’ purchase decisions. If customers are focused on price, then a cost advantage is critical to a firm’s growth prospects.

If customers are focused on technology and leading-edge products, then advantages along those dimensions will be more important.

Most markets are made up of multiple niches, with some customers focusing on price, others on product leadership, and others perhaps on service offerings.

In assessing a business unit’s

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position in terms of purchase decision factors, therefore, a firm that is well positioned in product leadership cannot claim strength in this factor if product leadership in this segment is only a small niche factor.

The short-term fit assessment involves firstmover advantages, sales model and channel advantages, major customer relationships, and the relevance of the installed base. While choices as to growth priorities shouldn’t focus on the potential for quick successes alone, gaining a head start on the competition can be a factor contributing to longterm success.

The other elements of this assessment involve different short-term considerations.

The focus on sales model and channel advantages reflects the challenges that always exist when a firm

has to make changes to its existing business model.

Avoiding these challenges is an important factor in getting to market quickly.

There is an important future dimension to the assessment of business drivers as well. Often, short-lived successes are associated with mismatches between the offer brought to the market and changes that take place in the business environment. The best growth choices are those that remain relevant and deliver value to customers under all of the likely scenarios that define the future business environment.

Assessing growth potential We have defined six metrics, three involving market considerations and three involving positioning considerations, which can be used to evaluate the relative

growth potential of business units or the segments in which they operate.

Accurate assessment along each of these dimensions is complex and involves many considerations.

One of the lessons that has emerged from this process is that ‘red flags’ along any of

“identifying the red flags for each of my business units will define my action plan priorities for 2013” 34 | BE Monthly

Strategy

these dimensions have to be viewed with great concern.

Pluses and minuses don’t neatly average out. One executive commented that “The greatest value that came from this exercise was identifying the red flags for each of my business units.

That will define my action plan priorities for 2013.”

The lyrics to The Gambler also include advice as to the importance of “knowin’ what to throw away and knowin’ what to keep”. At least over the medium term, it’s possible to change some of

the factors relating to growth potential, much as a gambler can change some of the cards in his or her hand.

Being able to identify the business units or market segments where investments will yield rewards is a critical element of business

planning. A systematic process of examining the relative strengths of each business unit or market segment in terms of both market considerations and positioning can allow for scarce resources to be targeted at the best opportunities.

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

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

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Making

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

written by: Simon Orme

36 | BE Monthly

Time management

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

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

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

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

Non-discretionary time

“The problem with being a manager is that much of your working time belongs to other people” 38 | BE Monthly

YOUR

TIME

W

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

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

Time management

TIME

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

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

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

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

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

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

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

• W hat is the impact of the problem?

• What options do we have to deal with it?

• W hat actions do you want me to take?

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

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THEI

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

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

PLANNING

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

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

EXECUTION

Time management

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

MANAGEMENT

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

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

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

The questions you, as a line manager should ask

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

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

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

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

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

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

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Building a square hole Innovative ideas and inspiring advice on business basics for small business owners, from entrepreneurs who learned by experience

written by: Michael Houlihan and Bonnie Harvey

42 | BE Monthly

Entrepreneurship

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E

ver y election brings uncertainty to the business c o m mu n it y.

The latest US Presidential election is no exception. But here’s a word of advice: regardless of who occupies the White House, Downing Street or whatever the government buildings are called in your country, entrepreneurial small business owners will have to rely on who we’ve always relied on to be successful— ourselves, our employees, and our customers.

We’re speaking from experience. We are the founders of Barefoot Cellars, the company that transformed the image of American wine from staid and unimaginative to fun, lighthearted, and hip.

We started the Barefoot Wine brand in our laundry room in 1986, made it a nationwide bestseller, and successfully sold the brand to E&J Gallo

in 2005. Starting with virtually no money and no wine industry experience, we employed innovative ideas to overcome obstacles and create new markets.

We learned the hard way and the best way—by experience. I am convinced that any company that has a good product or service and gets the basics right will thrive—regardless of the outcome of an election. So what exactly are the basics?

Embrace the advantages of being small While small companies, especially start-ups, tend to be undercapitalized, they also have some big advantages over larger competitors. They tend to be more nimble and flexible instead of being mired in bureaucracy. Since they don’t have big siloed departments, they can communicate faster.

They’re less risk-averse.

“small companies tend to be nimble and flexible instead of being mired in bureaucracy” 44 | BE Monthly

Entrepreneurship

“A shortage of cash forces you to discover and employ ideas that the big guys wouldn’t dream of” All of this allows them to turn on a dime in response to market changes and customer demands.

Even a shortage of hard cash can be an advantage.

Why? Because it makes you more innovative. This apparent hardship forces you to discover and employ unorthodox ideas, strategies and tactics that the big guys wouldn’t dream of. They don’t have to. In a small company, cost-saving ideas, customer retention and marketing concepts can come from anywhere. The big guys tend to want ideas to originate from their proper divisions, which can miss or kill some gems in an effort to defend precious turf.

Think creatively about marketing You don’t have to spend a lot of money. Back in 1986 when Barefoot was founded, we pioneered what

they call “worthy cause marketing” (WCM). We partnered with nonprofit organizations (NPOs) that believed in the same causes we believed in—specifically, environmentalism and civil rights. We donated product at fundraising events, we worked festivals, and we got out into the community to talk about causes we were passionate about, as well as Barefoot wine and our NPO partners—all in the same breath.

In this way, we gained access to lots of potential customers and gave them a “social reason” to buy Barefoot wine. And in return, the NPOs received donated product and manpower at events, as well as publicity via Barefoot’s distribution channels.

One of the reasons we wrote our book is to show American businesses that worthy cause marketing

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really works and can actually be more effective than advertising. As the company’s brand grows, so does the nonprofit’s brand.

If Barefoot can be a case study of WCM success, perhaps we can get some of the $100 billion-plus spent

46 | BE Monthly

on conventional advertising in this country redirected to the NPOs like ours.

Find good people.

Make great people Of course you need to hire well. That means finding people who are not only

qualified, but who have foundational qualities you can build upon. Barefoot looked for enthusiasm, confidence, honesty and integrity, a willingness to learn, and a sense of humor. But we didn’t stop there—we made sure to

Entrepreneurship

“With the ideal compensation system, non-producers can’t afford to work for you, and producers can’t afford to leave” provide the environment, encouragement, resources, and flexibility for them to become their best.

We made sure to create a positive culture. We caught people doing things right and told our entire staff about it. We allowed them to make mistakes so as not to squelch their creativity.

We put a lot of energy into mentoring and training. We gave them plenty of vacation time to rest and recharge.

We did everything possible to help them live up to their full potential.

To get the best out of your people, find out what they excel at. Then, redesign their jobs to fit those skills.

Ask others to pick up the aspects of the former job that still need to be done.

You might be surprised at the positive response.

Don’t put the square peg in the round hole. Build a square hole.

Use performancebased compensation Most compensation plans are based on an hourly rate, which is paying for attendance, not production. Consider offering bonuses based on sales, cost reductions, and customer retention. In other words, give them a financial reason to help the team perform.

With the ideal compensation system, non-producers can’t afford to work for you, and producers can’t afford to leave.

We were chastised for “overpaying” salespeople.

True, we had several salespeople who made more

1986 Barefoot Wine began in the authors’ laundry room

than we, the owners, did— yet when we looked at the efficiencies of scale, the value of stability, and the increase in sales, we knew we were doing the right thing.

Sharing the wealth allows you to reduce employee turnover, attract go-getters, and motivate people to produce even more. Best of all, increased profit is “found money”—it really costs you nothing. Just make sure the payment is tied into profitability, and not based solely on “growth.”

You are paying too much for labor when you pay for attendance alone. It’s their production you want, because that is where your profits come from.

Don’t treat information as currency Some companies, especially big corporations, treat information like a coveted commodity. In fact, it’s

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often used as a type of currency to buy a lunch, get a promotion, receive kudos, or t rade for other information. Some information is downright suppressed because it may threaten some supervisor’s concept of job security. Do not let this happen.

Do whatever you can to engage everyone and keep the information freef lowing. Be transparent about challenges and ask the entire staff for solutions. At Barefoot, we made sure all people were getting bonuses on sales, which meant that sharing information and ideas was good for everybody’s paycheck. Respecting the intellect of your human resources, giving them a financial reason to work as a team, and sharing your c ha l lenges ca n avoid hardening of the information arteries.

Listen to your salespeople Without them, there is no company. Run everything by your salespeople that affects your product and its image. Before you allow a change or “improvement” to the product or the package, check with the folks who have to make the sale, overcome the objections, and talk directly to the decision makers and the end users. Top-down thinking, when it comes to product, package design, and even promotion, can undermine what has taken years to establish.

It’s critical that your nonsalespeople appreciate where the money comes from that pays their salaries, bonuses, and benefits. When folks are hired, present them with an info-graphic that follows the money trail backwards from the customer through the distribution system, through

the marketing and sales system, through the supply and production system, and winds up in their pockets.

It may seem obvious, but it can be forgotten as your company gets larger.

“When folks are hired, present them with an info-graphic that follows the money trail backwards from the customer through to their pockets” 48 | BE Monthly

Entrepreneurship

Establish a positive culture Company culture has a direct bearing on the survival and growth of a company. This starts from the top and permeates throughout an organization. Barefoot’s culture was based on two overarching principles: generosity and permission.

Our use of worthy cause marketing gave employees a level of satisfaction that went far beyond making a

sale—they got to make a difference. And by allowing, no, insisting that people use their imagination to experiment, be creative, and even make mistakes, Barefoot gave them permission to be all they could be.

Plus, Barefoot was fun.

The whole approach was fun, from the image of the bare foot to the colorful labels and cartons, to the slogans, puns, and parodies. Barefooters were encouraged to be playful.

Having fun with the “foot” was always a hallmark of Barefoot culture. All of this gave Barefooters a unique level of ownership seldom seen in most companies. It kept Barefoot fresh and its people involved. They looked forward to coming to work because it was exciting.

At the time Barefoot Wine was founded, our business model was considered

radical. We viewed it as more of a “service” than a product. At its “velocity price point,” Barefoot could not survive without becoming “America’s Personal House Wine”—meaning Tuesday night wine, picnic wine, beach wine, the wine you kept on hand because it always delivered quality and value. We would have to sell massive quantities to stay in business—and that meant pulling out all the stops to create a great customer experience.

Business owners need to remember something c r uc ia l.

G over n ment s cannot create. They can make things easier or more difficult, but they cannot build something new and exciting and inspiring.

That’s our job—and we should focus on it instead of worrying about things we can’t control.

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

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The end of

marketing as we know it Traditional marketing is on its way out for many businesses. In place of this broken model, companies are implementing more authentic techniques based on peer influence and community building

written by: Bill Lee

50 | BE Monthly

Marketing

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C

onsider for a moment the annoying, i nte r r upt i ve , often obnoxious nature of traditional marketing. Dinnertime phone calls from strangers in noisy call centers. Glossy pictures of the latest fashions worn by models who barely look human. Company websites that give us no clue what the business actually does. Hype.

Spin. Pushy salespeople.

It’s hard to believe these are the methods and tools of a profession designed to attract and persuade us to become customers—especially when “we the buyers” increasingly ignore them.

A number of studies are showing that people no longer pay much attention to traditional marketing as they progress through the “buyer’s decision journey.”

Instead, buyers are checking out product and service

information in their own way, often through the Internet, their social network, or just plain word-of-mouth or customer reviews. It seems clear that marketing as we currently practise the discipline is on its way out.

The inability of traditional marketing to engage buyers hasn’t escaped the notice of the CEOs, who approve its budgets. A pair of wake-upcall studies by the Fournaise Marketing Group in London in 2011 and 2012 found that more than 70 percent of CEOs think that their chief marketing officers lack business credibility, lack the ability to generate acceptable growth, and lack the ability to explain how their programs will lead to increased business. Nearly four in five CEOs complained that CMOs can’t explain how brand equity can be linked to recognized financial measures such as firm equity.

“A number of studies are showing that people no longer pay much attention to traditional marketing” 52 | BE Monthly

A bitter pill for mainstream marketing executives, perhaps, but you can hardly blame the disgruntled CEOs when you consider the logic behind traditional marketing in light of today’s world.

Of course, not everyone in the marketing world clings to worn-out methods.

In fact, I work with a pioneering group of C-level and for ward-t hink ing marketing executives who are successfully replacing this increasingly dated model with something that customers actually welcome and respond to. For those who’d like to join them, I offer the following advice: Go retro: Cultivate a local buying experience It’s a myth that social networks and their technologies are creating new approaches to marketing. At their most effective, they’re doing the opposite. They’re allowing customers to recreate the experience of shopping and buying in their local communities.

Think about it this way.

How do buyers prefer to purchase a lawnmower, a haircut, a good dining

Marketing

experience, a movie, a car, the services of a good assistant, or a good doctor? Do they pick up the phone and call a salesperson, or read through a bunch of business websites?

No, they’re much more likely to talk to neighbors, friends, colleagues at work, and others in their peer networks and ask what they’ve used.

Marc Benioff understood this when he was building Salesforce.com to compete against much bigger, entrenched competitors.

54 | BE Monthly

He was building a better enterprise software product, and to get the word out, he organized “City Tour” events and neighborhood “street teams.” The City Tour events would bring his customers together with prospects and a few other interesting people for presentations and group discussion.

Benioff found that buyers were much less interested in hearing from him than they were in talking to his customers—their peers,

other software programmers like themselves. When he studied the numbers, Benioff found that 80 percent of the prospects who attended such events wound up becoming customers themselves—in effect, an 80 percent close rate.

Cultivate customer sales and marketing people Business spends billions of dollars training salespeople to build relationships with prospects and customers.

But no one has to spend a

Marketing

“Harley-Davidson worked hard to change its image by first getting police departments to start using them” dime training a customer to build a trusting relationship with your prospects. Since they’re peers, they pretty much already have one.

Microsoft builds on this aspect of human nature when it penetrates new markets,

often in foreign countries where they don’t speak the language or understand the culture. The firm will engage with local software users— whom they call MVPs (most valuable professionals)— many of whom have built substantial followings of their own through blogging and social networks.

One is known as “Mr. Excel” to his followers, and on some days his website gets more visits than Microsoft’s own Excel page on its corporate website. Many companies, when faced with the same situation, threaten lawsuits. Microsoft embraced Mr. Excel. In fact, they support his activities with “insider knowledge” and the opportunity to get a sneak preview and to test new releases. In return, Mr. Excel, and thousands of other Microsoft MVPs, wind up providing invaluable input as the firm develops

new releases, and produce its most effective marketing communications, as buyers realize that it comes from a peer they know and trust.

In such ways, the MVPs are helping Microsoft penetrate and grow markets more

80% Prospects who attended City Tour events and became customers of Salesforce.com effectively and cost affordably than the corporation could do using traditional marketing approaches staffed by hired outsiders.

Build strong customer communities Consider Harley-Davidson’s success in creating a sense of community around its

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bikes. Three decades ago, the public associated Harleys with gangs and outlaws, which turned off consumers.

Harley-Davidson worked hard to change the image, first by getting police departments to start using them, and then by working assiduously to build a customer community of middle-class (law-abiding) customers that morphed into today’s famous millionperson HOGs (Harley Owners Group). Today, Harley-Davidson HOGs, far from being outlaws, position themselves as family: the brothers (and now sisters) you never had.

It’s not just sexy products like Harleys (and iPads) that can create large communities of customers— which in turn attract large numbers of buyers. One of the most successful customer communities is Procter & Gamble’s BeingGirl community of teenage girls,

formed around, of all things, feminine care products.

The key to forming customer communities is not to try to build them around your brand—a common and obvious mistake marketing departments make. Rather, ask, “What does our product or service mean to our customers?” Or, “What could they mean?” P&G realized that its feminine care products could symbolize the difficult, scary, exciting transition its teenage customers are making into becoming young women.

Get customers involved in the solution When toy maker LEGO launched its robotics buildingblock kits, Mindstorms, a few years ago, hackers almost immediately started altering the code to allow the robots to do more. In circumstances like this, most firms call their legal departments and start issuing

LEGO Mindstorms detail

cease and desist demands.

Indeed, faced with a similar response when it issued a comparable line of toys, Sony did just that. But LEGO took a smarter approach.

Basically, LEGO executives did the math. One thousand or so hackers—or more

“the LEGO community continue to develop robotic toys far beyond what the company might have developed on its own” 56 | BE Monthly

Marketing

to the point, enthused and technically advanced customers—were coming up with robots that could do amazing things that the firm’s seven internal developers had never thought of. One of the hacker-created robots could solve a Rubik’s cube. As they—and their other customers—realized the value the hackers were creating, LEGO further embraced them. Now its customer community numbers in the tens of thousands and continues

to develop amazing arrays of robotic toys—far beyond anything the company might have developed on its own.

Meanwhile, 3M and other companies are systematizing customer-led innovation.

Rather than wait passively for customers to begin altering or hacking their products, they’ve learned how to proactively pursue and find customers, or “users,” who would be most likely to come up with breakthrough innovations. MIT professor Eric von Hippel has coined

the term “lead users” to describe them, and worked with 3M’s healthcare business to develop a system for finding them. The result was an eightfold improvement in revenues from innovations developed with the help of such customers vs. innovations developed by 3M’s ordinary, internally developed process.

W hat makes t his particularly significant, of course, is that 3M’s product developers are among the most innovative in the world.

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“3M saw an eightfold improvement in revenues from innovations developed with the help of customers vs. innovations developed in-house�

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Marketing Help customers build social capital Why do customers engage so enthusiastically in helping companies develop, market, and sell their products— in effect, growing their businesses? Many pundits think you need an incredibly sexy product like an iAnything developed by a once-in-a-century genius like Steve Jobs. But that misses the point. All it takes is a business that changes customers’ lives for the better—which is something far more replicable—even if you’re making feminine hygiene products.

What all these companies do is help customers build their social capital by helping them affiliate with their peers in customer communities, build their status and reputation, and learn and grow in the process. Often, they also include service to a larger purpose.

Enter prise sof t ware maker SAS Canada, for

70% CEOs who think their chief marketing officers lack business credibility

example, addressed an unexpected decline in its customer retention rates by engaging some of its leading customers, called “Customer Champions,” in an effort to hold on to customers and bring the defectors back.

The Customer Champions organized live forums in more than 20 major markets around the country, presented and brought in local speakers, contributed to an e-newsletter that SAS started, and more. The result was to completely restore the firm’s retention rates to its previous high levels.

Why did the Customer Champions put forth such an effort? Because it gave them

Bill Lee is a world authority on customer advocacy and engagement. He is a sought-after speaker and presenter to major organizations such as IBM and Forrester

a chance to affiliate more deeply with their peers— other software managers and engineers. It gave them a chance to play a leadership role in their peer community.

It gave them substantial status and recognition as well. And of course, it increased their knowledge and expertise by more deeply understanding how to address the needs of other SAS customers.

If you think all of this sounds more appealing than the old manipulate-theminto-buying techniques, you’re not alone. When companies commit to depending on authentic customer advocacy to grow their firms, it not only improves their marketing results, it also improves their organizations. That’s because it’s hard to mask substandard performance and customer discontent with your products and services if they’re the ones you rely on to tell the world how great you are.

Research, and is author of the book The Hidden Wealth of Customers: Realizing the Untapped Value of Your Most Important Asset. www.customerstrategygroup.com

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Ismail Dockrat CEO, Denel aerostructures

Nobody’s perfect. What quality or ability do you wish you had?

Someone you would most like to have met, living or dead, and why?

I am beginning to realise that I ought to use patience as a strategy more often than I do. My tendency is towards driving change and making things happen now. I feel that companies must develop long-term sustainability and therefore must be driven by a long-term vision and strategy. Therefore, there are things that leadership needs to do which doesn’t often have an immediate short-term result and requires planning and patience in the execution.

The person I most would like to have met, and indeed I did meet albeit briefly, is Nelson Mandela. He stands as one of the great leaders of the past century, and has been an inspiration to millions of people. He is a man of vision and integrity, and was patient in achieving his objectives. He could not have achieved all that he did had he not also been tough and determined. I would love to spend time with him to understand some of the difficult choices he must have faced and how he dealt with them.

What is the best business book you have ever read, and why?

To be honest I generally prefer reading history and literature and I find that there are great lessons to be learnt from such books relevant to the world of business. A good example for me is the works of Alexander Dumas. One of my favourite works of his is The Count of Monte Cristo. It tells the story of a talented young man who achieves great success driven by the desire for revenge, but who then learns that motives, while they can bring positive results, ultimately don’t bring happiness.

The book is filled with many great lessons in strategy.

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What do you consider to be your major achievement (in life or business)?

Since I was a little boy, I wanted to travel and I wanted to work with aeroplanes. I am very fortunate that my career has allowed me to do both of these things and I enjoy that very much. I feel as if my dreams have come true and I am very grateful for that.

Who or what do you think is overrated?

Social media. The technology is in an early stage and consumers have not yet found

executive insi ht

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executive insi ht most important thing is to treat people with respect and if you make a mistake to apologise and genuinely seek forgiveness.

Which one piece of wisdom would you pass on to your successor?

Have a high expectation of yourself at all times.

Who has been your inspiration professionally?

the right balance, style and etiquette for its use. I think a lot of people are going be very embarrassed a decade from now by the amount of information they share on the internet about their private lives.

Social media is maturing as a business tool and will have exciting applications in the future, but it is not going to alter the basic human need for direct face-to-face social interaction and relationships.

What mistakes have you made (professional or otherwise), and what did you learn from them?

Oh, it’s hard to choose, I’ve made so many!

The first thing is to know when you’ve made a mistake and what the mistake is. Then you’ve got to be able to acknowledge your role in it and reasons for letting it happen.

Then you’ve got to be able to reflect and work out how not to repeat the mistake again. The worst mistakes are the ones – as they almost invariably do – which end up hurting other people’s feelings. The

I work around a great bunch of people, and I take my inspiration very often from the ordinary people I encounter every day in our company. I really love working with people and I learn so much from them.

How would you like to be remembered after your retirement?

I hope that I shall be usefully occupied right up until the last, and I hope that people will remember me as a good person who got things done, and was of service to others.

Do you have a quote or motto you live (or work) by?

I don’t have a motto or quote, but I try to uphold the values of integrity, respect and fairness in my dealings with people every day.

Ismail Dockrat is CEO of Denel Aerostructures. www.denelaerostructures.com

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Nobody’s perfect. What quality or ability do you wish you had?

There are lots of things I wish I could do better!

Everything from eye-hand coordination to mathematics – the list is long. I often have a hard time being nice and it seems like I could be more patient with people. The ability to relax would be nice too…

What is the best business book you have ever read, and why?

Probably something by Og Mandino, or The Wealth of Nations by Adam Smith. They lay out simple concepts that explain a lot of the world. I am a simple person and I can understand and apply simple concepts. I think that if you can’t explain something in a paragraph, you might not understand it or it might not be true.

Someone you would most like to have met, living or dead, and why?

Lincoln

Dahl

managing director, African Energy

In relation to business and economics, it would be Benjamin Franklin or Milton Friedman. Both were very practical men who seemed to know the difference between things that were fashionable and those that were sensible.

What do you consider to be your major achievement (in life or business)?

That’s easy, being a successful husband and father (so far) means much more than anything I do at work. It takes a different

executive insi ht Don’t weaken!

If this was easy, everyone would be doing it! set of skills and it can be a lot harder than running a business profitably.

Who or what do you think is overrated?

So many things. Almost anything riding high in the news cycle at the moment. The media seems dissatisfied with mere good things and needs to make them better than they are. In our industry, IPOs and private equity usually disappoint, and get disappointed themselves, due to over-rating on both sides.

Whenever a web site or presentation looks too slick in this industry, we have learned to watch out!

What mistakes have you made (professional or otherwise), and what did you learn from them?

This could be a long list. I guess I have only learned if I changed my behaviour. I have learned to trust my instincts when I find a good deal, but paradoxically I have also learned not to trust people when it really seems easy and convenient to do so. Also, the older I get, the more I realize that we really can have an impact in the world – it just might not be immediately apparent.

Which one piece of wisdom would you pass on to your successor?

Don’t weaken! If this was easy, everyone would be doing it!

Who has been your inspiration professionally?

My dad – we are in totally different industries, but I spent a lot of time working with him as I grew up. Much of how I deal with people and situations is based on how I saw him do it. I hope to be as good as him someday.

How would you like to be remembered after your retirement?

What’s retirement? I’ve heard it is surprising how much a person can accomplish if they don’t care who gets the credit. Even so, I’d like to be remembered as someone who created opportunities for others and encouraged them to grow.

Do you have a quote or motto you live (or work) by?

“Men are that they might have joy.” If you are not enjoying life as you live it, then something is probably wrong.

Lincoln Dahl is managing director of African Energy. www.africanenergy.com

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

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

written by: Will Daynes research by: Marcus Lewis

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Auriant Mining

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U

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

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

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

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

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One of the open pits at Tardan

Auriant Mining

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

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

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

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

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

Auriant Mining

Start of a new heap leach at Tardan

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

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

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

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

20,000 metres

BE Monthly | 71

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

1,200

kilogrammes

Tardan camp and mill

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Auriant Mining

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

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

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

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

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

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

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

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Auriant Mining Gold dore being produced at Tardan

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

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

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

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

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

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

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

BE Monthly | 75

The jewel in

Barrick has a significant investment programme for So of which is targeted to advance the construction of Pas bi-national mine, expected to be operational in the sec

written by: Martin Ashcroft research by: Dan Finn

76 | BE Monthly

Barrick South America

n the crown

outh America in 2013, much scua-Lama, the world’s first cond half of 2014

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Barrick Gold’s Veladero mine in San Juan province, Argentina

Barrick South America

W

ith the acquisition of Placer Dome in 2006, Barrick Gold Corporation became the largest gold mining company in the world.

Barrick’s holdings in South America include the Pierina and Lagunas Norte gold mines in Peru, the Veladero gold mine in Argentina, the Cerro Casale project in Chile, and the world class Pascua-Lama project on the Chile/Argentina border.

With a mine life estimated at 25 years, Pascua-Lama is the current jewel in the crown, but as the world’s first bi-national mine it has required a complex series of negotiations with two national governments. At an elevation of up to 5,200 meters, this is also the highest altitude project Barrick has ever tackled, and it raises many unique logistical challenges.

Nevertheless, it is destined to become one of the most important mines in Barrick’s global portfolio, with proven and probable reserves of 17.8 million ounces of gold, and an additional prize of 671 million ounces of silver. Construction has advanced steadily, with production expected to commence in the second half of 2014. At the end of November 2012 the tunnel to transport the ore between Argentina and Chile was approximately 60 percent complete, and 90 percent of the materials and equipment required for the process plant had already been committed.

During the first five years of production, Barrick expects an average of 800,000 and 850,000 ounces of gold per annum.

Another project in development is Cerro Casale, 130 kilometres north of the

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Engineering - Construction - Erection

Always working for a better future fabrications, tanks, electromechanical erections, piping, maintenance, industrial installations and turn key projects.

HAUG S.A. www.haug.com.pe Av. Argentina 2060, Callao – Peru t: (511) 6134545 comercial@haug.com.pe

Seen

Contact us today and put your company in the spotlight!

vincent@bus-ex.com

Barrick South America Pascua-Lama project in HAUG S.A. the Maricunga district of HAUG S.A. was contracted by Barrick Exploraciones Chile. This project holds Argentinas S.A. for the fabrication and erection works of 38 estimated gold reserves that field welded tanks and 14 thickeners for the Pascua Lama currently stand at a massive Project, an open pit mining project that straddles the border 23.2 million ounces, but of Chile and Argentina. HAUG’s offices for the project are exploration is still in progress located in the Province of San Juan on the Argentinean side, where they have over 400 highly specialized and there may be even more. employees and workers, a number that will double as the Cerro Casale was originally project advances. a 50/50 exploratory joint comercial@haug.com.pe venture between Barrick and Kinross Gold Corporation, but early in 2010, Barrick acquired an additional 25 percent interest from Kinross, increasing its interest in the project to 75 percent. The construction phase will last about three years and the life of the mine is estimated at approximately 20 years, with average annual production expected to reach one million ounces of gold and 110,000 tonnes of copper.

Now with a controlling interest, Barrick is keen to use the lessons learned in PascuaLama to good effect and where possible, leverage synergies in the design and construction of Cerro Casale. This is one of the largest undeveloped gold-copper deposits in the world and it is envisaged that it will one day exceed the production anticipated at Pascua-Lama.

Mine construction As well as these two stellar development

“As the world’s first bi-national mine, Pascua-Lama has required a complex series of negotiations with two national governments” BE Monthly | 81

957,000 Ounces of gold produced at Veladero in 2011

The Pascua-Lama project zone

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projects, Barrick can also count on a solid portfolio of mines already in production.

The Veladero mine, located in the San Juan Province of Argentina, is immediately south of the Pascua-Lama property in the highly prospective Frontera District. Veladero has two open pits, Filo Federico and Friendly and has an estimated life of 14 years. The mine has been in production since 2005 and in 2011 produced 957,000 ounces of gold at a total cash cost of $353 an ounce.

The proven and probable mineral reserves at 31 December, 2011 were 10.6 million ounces of gold.

Moving to Peru, Barrick has the Pierina mine, located in the Andean Cordillera in the Department of Ancash. This mine has proven and probable mineral reserves of 791,000 ounces of gold, and although it is relatively more expensive to produce than in other mines, rising gold prices have recently seen the mine’s life extended to the end of 2014.

This is a standard open-pit, truck-and-loader operation, similar to Veladero.

Also in Peru is the Lagunas Norte mine, located on the Alto Chicama property in north-central Peru and 175 kilometers north of Pierina. The property lies on the western flank of the Peruvian Andes at an elevation

Barrick South America

Zaldivar copper process facility

of 4,200 meters above sea level. The open pit mine began operations in the second quarter of 2005, ahead of schedule, and involved an investment in construction of $340 million.

In 2011, Lagunas Norte produced 763,000 ounces of gold at an attractive total cash cost of $269 per ounce, and had proven and probable reserves of 6.2 million ounces of gold at 31 December 2011.

In all its operations in South America, Barrick is guided by a vision to lead the industry in finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner.

The company wants to see the region’s natural resources play a key role in supporting longterm sustainable economic development and facilitating this process is a corporate priority.

Barrick is already a signatory to a number of voluntary codes and initiatives that address a range of economic, social and environmental issues. These include the Carbon Disclosure Project, the International Cyanide Management Code, Transparency International (Canada) and the Voluntary Principles on Security and Human Rights. The company has also been an active member of the UN Global Compact (UNGC) since 2005.

“Although its primary focus is on gold, Barrick also has significant interests in copper in South America�

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Barrick’s primary focus is on gold

Barrick South America

25 years Estimated life of Pascua-Lama mine This is an initiative which directly involves business in tackling some of the major social and environmental challenges that arise from globalization.

Barrick’s achievements were publicly acknowledged yet again in 2012 when it was ranked as a global leader in corporate social responsibility for the fifth consecutive year by the Dow Jones Sustainability World Index. The DJSI World Index independently evaluates 2,500 companies using rigorous criteria in the areas of corporate, economic, environmental, and social performance to identify the top 10 per cent of performers.

Although its primary focus is on gold, Barrick also has significant interests in copper in South America. The Atacama desert has some of the largest porphyry copper deposits ever found, a geological legacy that has made Chile and Peru the first and second largest exporters of copper in the world.

In 2011, Barrick’s Zaldívar copper mine in Chile produced 292 million pounds of copper at a total cash cost of $1.50 per pound. The proven and probable mineral reserves at 31 December 2011 were 6.6 billion pounds.

For more information about Barrick South America visit: www.barricksudamerica.com

BE Monthly | 85

Expanding

co

86 | BE Monthly

Southern Copper Corporation

nding horizons

RaĂşl Jacob, CFO of Peruvian operations and company omptroller, highlights the massive expansion programmes the company is undertaking, both in Peru and in Mexico

written by: Will Daynes research by: Abi Abagun

BE Monthly | 87

Southern Copper has the highest reserve base for copper of any listed company in the world

Southern Copper Corporation

C

ommercial metal mining has been a business closely associated with Central America dating back to the region’s colonisation by the Spanish.

A fixture of the region’s export market throughout the decades since, the industry has experienced various peaks and troughs in recent years. In the face of waning interest in Central American metal ores during the 1980s and 1990s, it was the World Bank and other international financial institutions that encouraged governments to revise their laws to make metal mining more profitable.

This collective approach has created an environment where today a host of metal mining operators are active in countries throughout the region. One such organisation is Southern Copper Corporation (SCC), a world class mining metallurgical company.

Incorporated in 1952, the company has the highest reserve base for copper of any other listed company in the world.

“At the current production rate these reserves,” explains Raúl Jacob, CFO of Peruvian operations, “equate to around 100 years of life for the operation and are derived from the company’s operations in Peru and Mexico, where all of its activities are fully integrated.” Copper itself, of which it currently produces 640,000 metric tonnes per year, represents approximately 75 percent of SCC’s total sales. In addition, its mines produce various quantities of molybdenum, zinc and silver.

As one of the lowest cost producers in the world, operating in two very mining friendly countries and boasting excellent reserve rates,

BE Monthly | 89

SOUTHERN COPPER Southern Copper Corporation Southern feature est laborum. Lorem ipsum SCC finds Copper itself focusing dolor sit amet, consectetur text toongoachieving here.....Lorem heavily organic adipisicing elit, sed do ipsum One dolorof the sit ways amet, growth. it consectetur eiusmod tempor incididunt is doing this is adipisicing through the elit, sed do of eiusmod tempor ut labore et dolore magna expanding its Toquepala aliqua. Ut enim ad minim incididunt ut labore et dolore mine in southern Peru. veniam, quis nostrud magna aliqua. Ut enim ad In operation since 1960, exercitation ulla mco minim veniam, quis the mine operated as nostrud initially laboris nisi ut aliquip ex exercitation ullamco designed until 2003,laboris when ea commodoPlant consequat. nisi ut aliquip ex of ea commodo an expansion its plant expansion Duis aute irure dolor in consequat.production Duis aute by irure increased 33 dolor in“At reprehenderit in This is a caption is a caption percent. present, Toquepala possesses a this achieved by notreprehenderit only opening in up voluptate the mine velitgreater esse levels cillum dolore voluptate velit esse cillum total copper production capacity of 160,000 in order to handle of mineral fugiat nulla pariatur.

Excepteur sint dolore euJacob fugiat nulla pariatur.

Excepteur tonnes,” continues, “and the purpose eu production, but also by doubling the capacity cupidatat non proident, circuit.” sunt in sintthis occaecat non proident, sunt of browncupidatat field expansion project is occaecat of the Toquepala plant’s concentrator qui officia deserunt mollit anim id in culpa qui this officia deserunt mollit id culpa Working to a planned schedule that would to increase substantially.

This anim will be

BREAKER TECHNOLOGY INC. Technology is our middle name Breaker Technology Inc. and our authorized dealer for Peru Cana Dyne S.A. are committed to building and supporting some of the best rock breaking systems in the world. Having already successfully deployed several stationary rock-breaker boom systems at Southern Peru sites since 1998, we have new systems to be commissioned in the near future, and are proud to a play a part in the ongoing success of Peruvian mining, and more specifically Southern Copper.

Whether the application is an above ground stationary rock breaker boom system over a gyratory crusher, dealing with oversize materials or underground, our goal remains the same, ensuring increased production and

safer working conditions. Beyond our excellent range of rock-breaker boom systems are our full fleet of underground mining support vehicles. BTI’s mobile range includes mobile rock breakers, shotcrete truck, ANFO loaders, scissor lifts, crane trucks and most notably mobile rock scalers.

Cana Dyne and BTI have pioneered the use of mechanized scaling in Peru, with its signature RMS18 scaler system, which has one of the largest degrees of scaling flexibility, reduced repositioning time and increased production output. It’s our passion to continue to advance both service and innovation because we realize that results both in output and safety matter to us and our customers. www.rockbreaker.com

NOVEMBER 2012 | | 912 BE Monthly

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

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Southern Copper Corporation see the project completed by the middle of 2014, SCC’s OSSA is a leading specialist company in the underground expansion of Toquepala construction sector specialized in three business segments: represents a considerable construction, energy and mining. investment for the company.

After 60 years of success, our strategy is to continue “Recent figures suggest that expanding internationally, and to support large civil the company is spending engineering and mining industry clients at all levels, contributing our vast technical expertise and our equipment some $10,000 per tonne of fleet, while prioritizing health and safety and innovation in additional installed capacity,” all our projects. The best example is our track record: more Jacob says. “The end result of than 600 km of tunnels, 75 km of shafts and 500,000 m3 this investment will be the of caverns in hydropower plants.

Toquepala mine producing Internationally, OSSA has executed works in Portugal, an additional 100,000 tonnes Greece, Jordan, Peru, Colombia, Panama, Costa Rica, of copper, bringing its total Nicaragua, Chile, Hong Kong, and Taiwan. www.ossaint.com annual production capacity to 260,000 tonnes.”

Worldwide, SCC spends close to $30 million on exploration projects each year. The rewards that stem from this approach can be seen not only in Peru, but in Mexico as well.

“At the same time as it expands its Toquepala mine,” Jacob states, “it is also increasing the capacity of its Buenavista operation. Currently delivering 180,000 tonnes of copper per year, it is the company’s mission to increase this to more than 480,000 tonnes.”

In order to achieve this not inconsiderable goal, SCC is expanding its two existing SX-EW plants and constructing a third plant

OSSA

$6 Billion Six-year investment to increase output to over 1.1 million tonnes Mineral production continues to expand

BE Monthly | 93

at Buenavista that will have a capacity of 120,000 tonnes per year alone and will be operational by the start of 2014. Further to this, the company plans to upgrade its concentrator capabilities by building a new facility that will increase capacity from 125,000 tonnes to 313,000 tonnes of copper per year. This second project is expected to be completed by the middle of 2015, thus bringing Buenavista to a point where it can reach its full potential.

The integrated nature of its operations is not the only thing that links SCC’s operations in Peru and Mexico. One of the most important values held throughout the organisation is its commitment to sustainable development.

“In everything it does,” Jacob enthuses, “SCC’s activities are carried out with the aim of having the least possible effect on the environment. With the Toquepala project, for example, the company is increasing copper production by 100,000 tonnes, yet it is not using any additional water supplies to do so.

Rather it is increasing the amount of recycled water it uses for that purpose.”

Across all of its locations the company has been actively replacing its raised haulage activities with conveyor belt transportation systems, while its SX-EW plants operate without emissions. In 2007, SCC undertook a comprehensive programme to modernise

its smelting operations in Peru. This came in the wake of the country’s government introducing new environmental guidelines.

As a result of its actions, the company is now able to capture over 95 percent of the gases emitted during the smelting process.

Another recent environmental milestone has been the introduction of a pipeline system used to transfer sulphuric acid produced by the company’s plants directly to cargo ships

“The company is increasing copper production by 100,000 tonnes, yet it is not using any additional water supplies to do so” 94 | BE Monthly

Southern Copper Corporation

Copper cathodes

that then export this product. over 1.1 million tonnes over “Previously, railroad haulage the course of the next six was used to transport the acid, years. “To do this,” Jacob almost one million tonnes of concludes, “SCC is spending in excess of $6 billion. it per year, through a nearby In the meantime, it will residential area,” Jacob says. endeavour to maintain the “While the process itself was Estimated life of characteristics and qualities safe, the company deemed it copper reserves a better idea to have a pipe that have brought it to where network that would run it is today. This will allow from its smelters to the cargo it to expand its operations, ships. This methodology has not only proven retain its strong operating costs and ensure more cost effective and less time consuming safer environmental results.” in the long run, it also eliminates all of the associated environmental risks.”

For more information about Under its current production plans, SCC’s Southern Copper Corporation visit: focus is to increase its copper output from www.southernperu.com an estimated level of 640,000 tonnes to

100

Years

BE Monthly | 95

The key to prosperity

96 | BE Monthly

SSG Consulting

Chief executive officer Steven Golding explains how a lack of fear, a willingness to embrace innovation and good old fashioned family values have combined to create a leading project management consulting company

written by: Will Daynes research by: Marcus Lewis

BE Monthly | 97

T

he concept of family values is one that stretches across all four corners of the world. From the United States to Brazil, South Africa to China, the concept of family exists as a fundamental building block of society. In each of these countries and beyond one will find a multitude of businesses that adopt family values as a part of their core philosophy, yet perhaps no better example can be found than SSG Consulting.

“We are a company,” explains chief executive officer, Steven Golding, “that is very much built on a Christian foundation with the concept of family very much at the heart of what we are all about.” Formed in late 2007, SSG Consulting has developed rapidly in the years since, based almost exclusively on previous relationships with clients and their founders. Possessing collective experience of more than half a century within the field of project management, the company is ideally placed to service a growing client base within the infrastructure, energy, mining and petrochemical industries.

“Embracing innovation and having a lack of fear,” Golding continues, “are two of the core characteristics that define us as a company. We are a relatively young crowd, by comparison, with an average management age of under-50 and we believe that this comes across in the way that we approach each task with a degree of boldness and energy that others may lack.”

Looking at the company’s offering, it provides services through four different spectrums, those being project execution, consultation, the SSG Training Academy and

98 | BE Monthly

The company serves a growing client base within the infrastructure, energy, mining and petrochemical industries

SSG Consulting

2007 The year SSG Consulting was formed

SSG provides project execution services

100 | BE Monthly

its KEY360 management system. KEY360 was borne out of the company’s frustration based on years of experiencing business and project management systems that often did not facilitate the basic function that they themselves were designed to perform.

“As part of executing our projects,” Golding states, “we soon realised that effective data management and having the ability to work with a large number of documents, and present them back to our clients efficiently, required a system that did not come close to existing within the marketplace at the time. It was our own internal requirements that drove us to develop what is now a commercially successful product and one that we, quite boldly, predict will result in a scenario where, in a matter of years, no mega-projects under construction anywhere in the world will run without KEY360 being used somewhere in the fold.”

The human aspect of the KEY360 system has similarly been a major contributing factor to its success, as Golding goes on to highlight. “A lot of what we try to do as a company, both internally and with our clients, involves energising and motivating people.

What KEY360 does is provide its users with the ability to monitor people in such a way that it can improve efficiency, output and collaboration. Actually being able to watch

SSG Consulting

KEY360 was created to provide effective data management

people grow and mature in the field, thanks in part to the use of KEY360, is definitely one of the most exciting and inspiring things that comes from the work that we do.”

It is messages like this that SSG Consulting intends to take with it to the 2013 Investing in African Mining, INDABA, event in Cape Town this coming February. “We think that this INDABA is going to be a massive springboard for a lot of investment,” Golding says, “and Key360 was built for that exact purpose.”

Investors across Africa are today in the process of establishing assets and, as

an investor, having access to up-to-theminute information regarding said assets is fundamental. In reality, most project management information that is delivered at present is not real-time. KEY360 on the other hand is specifically designed to provide minute-by-minute data that is available to all stakeholders, making it an incredible tool that gets information to where it should be quickly, accurately and in a useful format.

This, in turn, helps get the assets in question up and running faster, and in a more cost effective manner.

“Embracing innovation and having a lack of fear are two of the core characteristics that define SSG Consulting” BE Monthly | 101

“KEY360 is specifically designed to get information to where it should be quickly, accurately and in a useful format�

Effective management systems assist the physical execution of the project

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SSG Consulting The need to be on top of information when establishing an asset is clearly the core message that the company is hoping to put across at the INDABA event. “Information,” Golding reveals, “is what we, in our experience, find actually costs projects the most in terms of time and money. The reason being that, while technical solutions are more often than not fine, it is the physical execution of the project in terms of pure management and data management that holds back the process. This fact makes it all the more important that KEY360 has the ability to become a networking tool those involved in establishing assets have an understanding early on of the opposed to against one another.” importance of using effective management Providing companies with a platform that systems that provide the information that is allows them to work together seamlessly is yet needed, when it is needed.” another example of the way SSG Consulting KEY360 was developed at the same is able to bring innovative ideas to the fore. time as, and very much inspired by, the “Innovation,” Golding concludes, “as well explosion in popularity of social networking, as the way in which KEY360 works and, of driven by the likes of Facebook and similar course, the way in which we as a company programmes. What KEY360 was designed execute business are the things that have to create however is what SSG Consulting enabled us to get where we are today, and defines as corporate networking. “In some they remain the aces up our sleeves that cases,” Golding enthuses, “we have examples will allow us to remain relevant in an everof upwards of 50 companies working together changing market.” on a single piece of software. This is unheard of anywhere else and goes to prove that KEY360 For more information about has the ability to become a networking tool SSG Consulting visit: that gives different parties the opportunity www.ssgconsulting.co.za to work together in establishing assets, as

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written by: Will Daynes research by: Stephen Vivian

Blending knowledge with passion For the better part of three decades Inorganic Ventures has been a leading manufacturer of certified reference materials and is now targeting the lucrative mining sector

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Inorganic Ventures

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QC chemist Heather Fisher-Clarke prepares a sample for the ICP

Inorganic Ventures

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egardless of the size of the operation or where on the planet it is taking place, one of the most fundamentally important, but often overlooked, phases of the mining process is the testing of materials that are extracted from the earth. It may sound like one of the least important undertakings companies have to face, what with the massive costs and labour intensive nature of processes such as exploration and production, yet it is only after accurate tests have come back with positive results that these phases of the project can commence.

Headquartered in Christiansburg, Virginia, Inorganic Ventures has, since 1985, been manufacturing high quality certified reference materials. It is capable of making almost any reference material for inductively coupled plasma (ICP), inductively coupled plasma mass spectrometry (ICP-MS), ion chromatography (IC), atomic absorption, wet chemistry and quality control applications.

The company’s distribution network, operated from its foreign distribution centre in Madrid, covers North America, Europe, Asia, South America and Africa.

The first inorganic certified reference materials manufacturer to be accredited to ISO Guide 34 and to offer a 100 percent satisfaction guarantee, it is quality and customer service that defines Inorganic Ventures. “Our speed of delivery and turnaround times,” explains executive vice president, Michael Scott, “are second to none and really help differentiate ourselves from others in the industry.”

With stock items leaving the same day as ordered and custom blends taking no more

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than five days to manufacture, the company is able to guarantee these turnaround times anywhere in the world. “As a business,” states vice president of operations, Christopher Gaines, “we focus on doing one thing and we believe very firmly on doing it the best.”

Rather than being a catalogue house, what Inorganic Ventures does is manufacture one product and that is inorganic certified reference materials for certain instrumentations. In complementing this it places a great deal of time and resources into delivering technical support and educating clients on how to do a better job of analysing their test results through various books and articles.

“A lot of companies in this field handle both organic and inorganic materials,” Scott continues, “but I personally don’t know of anyone else on the market that concentrates solely on inorganic reference materials the way we do. We live, eat and breathe this business and it is that degree of focus that makes us truly unique.”

It is this dedication that today sees Inorganic Ventures turning increasingly towards international expansion. “While there is certainly still room for growth in the US market,” Scott states, “it is on the international stage where we are identifying enormous potential through the activities

of our distributors who are present in more than 50 countries.”

Where the company identifies much of the growth coming from in the future is from the mining sector, particularly in regions such as South America, South Africa and parts of Europe. “Our largest customer account to date,” Scott says, “is with a large multinational mining company, and it is these kinds of

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Inorganic Ventures

Group discussion on a custom CRM quotation

clients that we are looking to importance to the business target going forward.” achieving its long term In order to achieve its goals, Scott is just as keen growth targets the company to emphasise that this is a has taken, and continues to company that understands take, proactive steps to better that it has to go if it wants Countries in which the company has position itself to capitalise to grow. “The way we will distributors present on the vast number of grow the business in the opportunities it has identified short-to-medium term is by throughout the world. “In travelling, by introducing the last few months,” Scott says, “we have Inorganic Ventures to people all over successfully finished doubling the capacity the world and by building long-lasting of our US facility. Meanwhile, we are in the relationships with customers. Any good process of moving our European distribution business can display product quality and centre from Madrid to Santander on the good delivery capabilities, but it is strong, border of France.” mutually beneficial relationships that every While such developments are of critical client cherishes and this is what we build.”

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Technical support chemist Thomas Kozikowski reviews ICP data

Manufacturing chemist Briana

“While there is room for growth in the US market, it is on the international stage where we are identifying enormous potential” Travelling to those regions and territories where the company has seen the potential to grow will be fundamental to Inorganic Ventures’ ability to identify distributors that can assist in the company gaining a foothold within the marketplace. “We are a member of the Economic Development Process here in the US,” Scott reveals, “and it is through some of the international visits organised through this that we have been able to reach out to

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the right kind of people. Then what we find is that once these people have our product in their hands they recognise just what it is that we have and what we can offer.”

By emphasising things like the building of relationships and by providing high quality technical support it is clear that the way Inorganic Ventures does business is about more than just the end result. It is equally about doing the little things that seem to have

Inorganic Ventures

M. Hudson mixes a custom CRM

Michael Scott (far) and Christopher Gaines review quarterly figures

gotten lost or been forgotten about over the past 20 to 30 years.

Up until now there has been little evidence to suggest that there has been a concerted effort from companies within this highly technical, niche industry to broaden their scope outside of what is admittedly a healthy home market. “There are locations out there,” Scott says, “in South America for example, which people assume are a decade behind in terms of technology and innovation. In truth, that is perhaps how we felt until we began travelling and exploring these places, whereas now we know first-hand that these parts of the world are a lot further along than some give them credit for.”

With the knowledge that there are opportunities outside of its home market

waiting to be grasped, Inorganic Ventures is now in the process of aggressively targeting potential distributors and clients, both near and far. The company is equally aware that with its soon to be relocated European facility it is perhaps better placed than any other business of its type. “Having a facility outside of the US doesn’t sound like that big of a deal,” Scott concludes, “but what it does is allow us to be just as competitive as any local or multinational manufacturer and to bring our knowledge, expertise and dedication to customer service to a worldwide audience.”

For more information about Inorganic Ventures visit: www.inorganicventures.com

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The vision to succeed

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VIMA Group

Madagascar is a land of increasing opportunity. Chairman Zouzar Bouka explains his vision of a new Madagascar and how VIMA Group is helping make this a reality

written by: Will Daynes research by: Robert Hodgson

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uch like the endemic wildlife that has adapted over centuries to survive on the isolated island, Madagascar as a nation continues to evolve rapidly.

Through the development of strong economic ties with the likes of the United States, Japan, Germany and its main trading partner, France, the country’s primary sources of growth today originate from tourism, agriculture and the extractive industries.

With its wealth of untapped mining resources Madagascar’s economy is predicted to expand in the years ahead. In addition to the big mining projects underway in the south and east of the country there are also a vast number of other concessions that need developing.

This understandably creates a ripple effect across all sectors as there remains a need for investment in infrastructure, logistics, transportation, lodging and soft skills.

Founded in 2000, VIMA Group was born out of the vision of chairman Zouzar Bouka. Part of this vision was to create an organisation that could play a leading role in the development of a new Madagascar.

“In this new Madagascar,” Bouka explains, “large scale private sector projects will be the engine for growth throughout the country.”

Since the group’s first subsidiary, VIMA REAL ESTATE was created in 2000, it has been working to meet the demands of the market in terms of real estate development and construction. In the years since VIMA Group has extended its reach to procurement and import services with the creation of VIMA SERV’, the wood sector with VIMA WOOD INDUSTRY and the construction business

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VIMA Group has extended its reach to the wood sector with the creation of VIMA WOOD INDUSTRY

VIMA Group

VIMA Group

VIMA delivers high quality solutions

with VIMA CONSTRUCTION. organisations such as the World Trade Center “The features of a new Madagascar as we Association, Century 21 and REGUS provide see it,” Bouka continues, “include a wider it with access to a multitude of business opening to the world, a country in line with opportunities. Then there is its development international norms and standards and one policy. Thanks to this policy its franchisee that attracts long-term foreign investors who licenses allow it to extend its activities to a are able to put their trust in the expertise and regional and international level. skills of Malagasy companies.”

“Since its birth,” Bouka enthuses, “VIMA In order to achieve this, VIMA Group Group has strived for perfection in every aspect of its business. Specifically, it has three main strategies. has established a set of core The first of these is having traits that guide the company a strong marketing policy on a daily basis. These that maximises its visibility include adaptability, having at a local, regional and international level. Second is a customer centred approach the maintaining of a strong to business, maintaining The year VIMA Group was founded international network. VIMA a high level of customer Group’s partnerships with service, having high speeds

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Seen

Contact us today and put your company in the spotlight!

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VIMA companies undertoo

of delivery and ensuring it always delivers its customers with high quality solutions.�

These core traits have helped contribute to various success stories over the last 12 years, while VIMA Group’s ability to offer a one-stopshop for major organisations looking to enter Madagascar has seen it build up an impressive portfolio of case study examples of its work.

One such example occurred when the Embassy of South Africa approached the group to assist them in finding a new embassy building.

Taking the lead in this project was VIMA REAL ESTATE, which worked closely with embassy staff in order to create a comfortable work environment conducive to the needs of the diplomatic mission from South Africa.

Location was an integral part of this project and so VIMA REAL ESTATE sought out,

VIMA Group

ok the real estate services, procurement and construction for South Africa’s new Embassy building in Madagascar

found, and bought a plot of land situated on a main thoroughfare with easy access to both the downtown of the city and the diplomatic neighbourhood.

VIMA REAL ESTATE subsequently decided that it would be best if the Embassy of South Africa chose an architect of their liking, which would be paid for by VIMA Group, to design the actual embassy building, accommodating for the needs of the South African embassy staff.

VIMA CONSTRUCTION built the embassy, while all of the procurement for the construction materials, interior design, and furniture was bought by VIMA SERV’ while VIMA REAL ESTATE worked in conjunction with a bank to calculate a fair market price for the rent. Currently, VIMA REAL ESTATE manages the rent, maintenance, and customer relationship with the embassy.

The year 2012 has seen VIMA Group

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“VIMA Group has also gone about creating a new subsidiary, that being MADAGASCAR ENERGY”

VIMA CONSTRUCTION works alongside VIMA REAL ESTATE

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VIMA Group continue to expand with it making two new, strategic acquisitions on the west coast of the country. The first of these is a fish processing facility located in the city of Maintirano. The group’s aim is to rehabilitate the existing site with offices, warehouses and laboratories in order to support mining, oil and gas companies located in the area.

The second property, currently under the process of acquisition, lies within the economic hub that is Majunga. This acquisition of 32 hectares of land, with approximately 60,000 square metres of built-on surface, will see the group develop the site to support the growing economy of the region by rehabilitating the buildings for office use by companies involved in mining, oil and gas and high intensive labour. This property will be connected by fiber optic network.

Elsewhere within the group, VIMA CONSTRUCTION and VIMA REAL ESTATE are in the piloting stage of the project “Casa Ivandry” or CI for short. CI is a luxury apartment complex located in a high end neighbourhood in the capital of Antananarivo and is designed for families, couples, or single occupants. Upon completion, CI will be equipped with a swimming pool, movie theatre, tennis courts, gym and restaurant.

This year VIMA Group has also gone about creating a new subsidiary, that being

VIMA maintains a high level of customer service

MADAGASCAR ENERGY. This subsidiary is responsible for producing and supplying electrical energy with its operations split into two divisions, one dealing with thermal power plants working with heavy-oil and the other with renewable energies. In the near future, MADAGASCAR ENERGY will supply 1.4 MW and 2 MW to private companies in the country. MADAGASCAR ENERGY is set to become a major player in the renewable energy sector.

A fundamental part of VIMA Group’s mission is to support the community in Madagascar in various ways. It achieves this through its sponsorship and association with various sporting events and budding stars, including the International Marathon of Tana and the young tennis prodigy Randy

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VIMA Group has evolved to meet the needs of the market

VIMA Group Randrianasoloson, its sponsorship of cultural events and groups, such at the Rencontres du Film Court film festival and the Madajazzcar music festival, and its charity work with the likes of Akamasoa and the Starkey Foundation.

“Since VIMA Group’s creation,” Bouka says, “we have evolved accordingly to meet the needs of the market by moving into different sectors, working with a wide variety of partners and taking on ever-more ambitious projects.

Having consolidated our position as a leader in business, we fully intend to continue expanding and building our network of partners.”

In order to provide even greater value to its clients, VIMA Group intends to focus on several important aspects of its business, most notably its ability to integrate its operations in order to provide quick and efficient solutions, and its ability to fill the gaps that exist with the economy that are integral to the overall development of the country.

“With its diversified economy and natural resources,” Bouka concludes, “Madagascar is an attention-grabbing country for outside companies and is well placed to attract these investors. Indeed, the mining sector will see a large amount of growth and will be the significant sector of the economy in the coming years. In addition, the agriculture, fishing, tourism and construction sectors will continue to see growth and we intend to be there every step of the way to support this in any way we can.”

For more information about VIMA Group visit: www.visionmadagascar.com

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A source of inspiration

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Bentley Systems

From buildings and bridges to clean energy and clean water, Bentley Systems has been sustaining some of the world’s most significant infrastructure projects for close to 30 years

written by: Will Daynes research by: Will Kirby

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Bentley Systems

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Finsch mine project, courtesy of Petra Diamonds Limited, Lime Acres, South Africa

hen we think of infrastructure we tend to think about the hardware involved, be it the materials used or the equipment and tools to bring structures and buildings to life. What we tend to take for granted are the software solutions involved and how crucial they are to the entire process.

A global leader in its field, Bentley is dedicated to providing architects, engineers, constructors, geospatial professionals and owner-operators with comprehensive solutions for sustaining infrastructure.

Founded in 1984, the company has grown to the point where it now employs almost 3000 people in more than 45 countries.

At its core, Bentley’s mission is to give its clients the ability to leverage information modelling through integrated projects for high-performing intelligent infrastructure.

Since 2003, the company has invested more than $1 billion in research, development and acquisitions in order to grow both organically and through successful takeovers.

The solutions offered by the company encompass its MicroStation platform for infrastructure design and modelling, its ProjectWise platform for infrastructure project team collaboration and work sharing, and its AssetWise platform for infrastructure asset operations. These platforms support a broad portfolio of interoperable applications and are complemented by global professional services.

Bentley’s expertise and capabilities have seen it extend its reach into all manner of industry sectors, from power generation and

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rail to utilities and communications. One area of particular significance is the mining and metals industry. It is here that the company has been striving to deliver solutions that will allow its clients to meet the unprecedented level of demand for raw materials from both the manufacturing and construction sectors.

Driven by the high commodity prices that have occurred as a result of this demand, the

industry’s priority, at least in the short-term, is to obtain the necessary capacity required to bring as much raw material to market as quickly as possible. While it is doing so the company also incorporates the longer term view of overall sustainability of the industry and the environment as the resources get extracted and assets need decommissioning.

Bentley’s mining and metals solution is

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Bentley Systems

Vale Cristalino Project, courtesy of SEI Engenharia Ltda, Canaa dos Carajas, Brazil

compelling in that it offers both short and long-term benefits to help increase the efficiency of capital projects associated with the design, procurement and construction of mines and processing plants, as well as solutions for supporting the operations and maintenance of the built assets, and their subsequent decommissioning.

Addressing both the areas of mining and transportation, and ore processing and refining, what Bentley has found is key to bringing value is a combination of consistent, accurate and available engineering data across the lifecycle, coupled with the most comprehensive set of interoperable design and analysis tools. With these at a users’ disposal they have a far greater chance of

their assets reaching optimum potential.

Bentley’s mining and metals products expand across a wide spectrum of disciplines, from plant design, engineering and operation, land development to geospatial information management, water modelling and structural analysis. A major supplier to both owner organisations and EPC companies that serve this industry, Bentley can boast having ten of the top 20 mining companies, as measured by market capitalisation, as customers, including all of the top five.

Bentley’s success across the mining and metals sector over the last several years has been well documented through the innovative uses of its products by its users submitting to the Be Inspired Awards programme.

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Recognising the world’s most outstanding infrastructure projects, submissions are judged by a jury of independent experts who determine which examples best exemplify innovation, superior vision and a commitment to quality and productivity.

In the category of Mining and Metals, projects in Australia included, in 2011, the $630 million crushing plant at Fortescue in Western Australia where modeling in

3D resulted in 30 percent time savings and overall cost savings of 20 percent. In 2012, AMEC fast-tracked project delivery at FMG’s Cloudbreak ore-handling plant in Western Australia with rapid deployment of MicroStation, Structural Modeler, and Bentley PlantSpace to reduce steelwork drafting time by 31 percent. In 2009, the award went to the Hatch Africa, QMM Ilmenite Project in Fort Dauphin, Madagascar. The primary goal

“Bentley users have achieved both short and long-term benefits that improve the performance of engineering and construction capital projects”

Vale Cristalino Project, courtesy of SEI Engenharia Ltda, Canaa dos Carajas, Brazil

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Bentley Systems

Finsch mine project, courtesy of Petra Diamonds Limited, Lime Acres, South Africa

of this project involved the Project in Canaa dos Carajas, development of a productive Brazil. The goal of this ilmenite mine consisting of project is to build a $2.6 billion copper plant that will a mining extraction pond, produce 16 million tonnes per dredger, wet plant and a Invested in research, mineral separation plant. annum with average annual development and In order to improve production of 340,000 tonnes acquisitions since 2003 workflows and reduce costs, of copper concentrate. As Hatch deployed 3D plant part of this undertaking, Vale design using MicroStation as the CAD platform contracted SEI Engenharia to perform frontand software including Bentley Structural, end loading and deliver a 3D model.

TriForma, PlantSpace and Bentley Navigator.

This 3D model was used to advance the The 3D models used reduced the number of concept studies during the detailed design 2D drawing deliverables and streamlined the phase, which helped achieve the goal of steel fabrication and construction processes. accelerating project execution. In order to This enabled the steel fabrication contract to do this, SEI trained its design team to use be placed earlier than anticipated, improving Bentley software such as MicroStation, Bentley the critical path of the construction schedule. Architecture and Bentley Navigator to carry The winning project in 2011 was from SEI out the modelling of infrastructure, concrete Engenharia, working on Vale’s Cristalino and steel structures, substations and industrial

$1 Billion

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QMM Ilmenite Mine, Fort Dauphin, Madagascar, courtesy of Hatch Africa

Bentley Systems installations. Ultimately, the integrated workflow that Bentley’s solutions helped create saved approximately 5100 man hours and reduced front-end loading costs by $400,000.

In 2012, Petra Diamonds Limited, Finsch GIS, in Lime Acres, South Africa won the Be Inspired Award for Mining and Metals.

Located in the Northern Cape province of South Africa, the Finsch mine is operated by majority owner Petra Diamonds, which developed a 700,000 South African rand integrated spatial data management system to manage geospatial data for five departments that were functioning in isolation. The company also co-manages the mining town of Lime Acres, for which the GIS-based system captures data and bills residents for water and electricity usage. Survey and plan data are captured and digitized in MicroStation, with Bentley Map links features representing the mining lifecycle, town layout, and residential setup, and Bentley Geo Web Publisher makes the geospatial mining and town information accessible to the whole mining group.

Engineering professionals strive to shorten project schedules and lower operating costs through improved access to mission-critical information. Bentley users have achieved both short-term and long-term benefits that not only improve the performance of engineering and construction capital projects, but also increase the efficiency of operations for mines and metals processing and refining plants.

For more information about Bentley Systems visit: www.bentley.com

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Power st

This is a difficult time for the States. Janet Gellici, CEO of talks about finding a way

written by: Ma research by: Ric

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American Coal Council

truggles

e coal industry in the United f the American Coal Council, y to overcome the challenges

artin Ashcroft chard Halfhide

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he coal industry provides over 40 percent of the United States’ electricity, but it seems to be under attack from all quarters.

Just because you’re paranoid, the saying goes, it doesn’t mean they’re not out to get you.

“It is challenging,” says Janet Gellici, CEO of the American Coal Council, with some understatement. “I’ve been in the business for thirty years. It’s been more challenging recently than I’ve known it before, but these things ebb and flow. We’re running into some headwind, but we’ll find a way or we’ll make one – I think Hannibal said that about driving his elephants across the Pyrenees.” He got there, remember.

The American Coal Council is an industry body with a broad remit. “We represent companies from the hole in the ground to the plug in the wall,” says Gellici. While The National Mining Association is focused exclusively on coal and mineral suppliers, the American Coal Council is also concerned with power generation and industrial users of coal, railroads, ports, barge transporters and energy traders. “We have about 180 member companies so we represent a significant portion of the US coal industry,” she says.

The power generation market is currently a major concern, with coal under severe pressure from all sides. “There are a number of factors impacting where we are today with coal fired power generation,” says Gellici. “Top of my list would be the transition away from coal to natural gas. This is partly propelled by policy, but also because natural gas is so abundant and cheap.”

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American Coal Council

The United States has about five to ten gigawatts of new coal generation coming online between now and 2014, but it’s going to lose between 30-80 gigawatts of coal fired power by 2030 as older plants are shuttered— mostly due to replacement by natural gas but also to some extent by renewables.

The Obama administration is keen to encourage the transition to natural gas, which it does through subsidies, tariffs, tax exemptions and other financial measures. It is up to the individual states, however, to set their own policy and regulations concerning energy generation, and most states have set mandatory renewable energy targets in the form of a “renewable portfolio standard” (RPS) or “alternative energy portfolio standard” (AEPS) which require a certain percentage of a utility’s power plant capacity or generation to come from renewable or alternative energy sources by a given date. Colorado is the highest at 30 percent. “They vary from state to state,” says Gellici. “Some of the states count hydro, too, and some count energy efficiency or conservation measures into that percentage.”

Natural gas and renewables are a threat to coal simply by being alternatives, but you would expect an industry like coal to be able to respond to competition, given a level playing field. The field is skewed in this case, however, by the campaigns being mounted by environmental groups, targeted specifically at coal. You might think that restrictions on the use of coal in the United States would open the door to exports, bringing many benefits to an economy with high unemployment that is struggling for growth, but it’s nowhere near as straightforward as that.

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American Coal Council

Coal-fired steam plant near Page, Arizona

“There are significant export opportunities for coal,” says Gellici, “especially out of the West, but we’re running into opposition there from the environmental community. There are one and a half billion people in the world without access to electricity and here we sit on the world’s largest coal reserves, but we can’t sell it to them.” The environmental groups are opposed to coal being burned anywhere in the world, she explains, not just in the United States, so they are trying to curtail the development of ports, particularly on the west coast, so that coal can’t be shipped out for export. Legislation has been proposed in

California, for example, which would mean that coal could not be exported to countries that don’t have equally stringent regulations on greenhouse gas emissions.

“There are a number of barriers being thrown up in opposition to export,” continues Gellici. “People are objecting to the number of trains used to transport coal in their communities, they are trying to stop coal trains coming through, and allowing only cargo trains. They’re all focusing on coal.”

The coal industry has made tremendous progress in emission reductions in recent years, but gets no credit for it whatsoever.

“We’ve decreased our emissions of NOx, SO2 and mercury significantly, at the same time as the use of coal has been increasing” BE Monthly | 139

“We’ve decreased our emissions of NOx, SO2 and mercury significantly, at the same time as the use of coal has been increasing,” says Gellici. “Billions of dollars have been spent in the development of clean coal technology, but we’re not even being permitted to build new cleaner coal facilities.”

The great hope for the future of the coal industry is carbon capture and storage technology (CCS), but although much progress has been made, it’s not commercially available yet. That does not inhibit the Environmental Protection Agency from introducing requirements for new power plants that cannot possibly be met without it, however.

“Everyone I speak to says that eliminating coal is not going to get us where we need to be in

Power plant on Lake Michigan

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terms of greenhouse gas emissions, so we need that carbon capture and storage technology to be perfected,” says Gellici, “but it’s not ready yet, and the regulations are written in such a way that it will be impossible for any utility company to consider building a coal power plant at this point. So after 2014-2015 there will be no new coal power plants being built.”

It makes you wonder, as Butch Cassidy and the Sundance Kid did while being tracked, who are these guys? Whoever they are, they are certainly in pursuit of coal. “There’s one regulation that illustrates this well,” says Gellici, “the Stream Buffer Zone Rule, which bans mountaintop mining. The EPA came out with some water quality guidelines which were specifically applied to six Appalachian States in

American Coal Council

“Every time a piece of legislation gets passed in the House, it pretty much dies in the Senate” the US, and only to coal mining.” Mountaintop removal may offend the green lobbies in San Francisco, New York and Washington, but it’s an integral part of the economy in West Virginia, Kentucky and the Carolinas.

The recent US elections have not done the coal industry any favors, either.

Although a Republican dominated House of Representatives has proposals that would

benefit the coal industry, says Gellici, “every time a piece of legislation gets passed in the House, it pretty much dies in the Senate, which will be Democratically controlled again for the next session of Congress.”

The legislative process is gridlocked by court actions anyway, as Gellici explains. “We will not have any new legislation on energy and environmental policy issues,” she says. “What we will have are court cases.” When regulations are proposed by the administration, the EPA, the Department of the Interior, et al, they are immediately challenged in the courts. “That means that the courts will be the deciding factor,” she says. “They will be dictating policy for the next two to four years.”

This deadlock means that new environmental safeguards cannot be put in place. “There are New Source Review (NSR) regulations in the US that preclude us from making changes or improvements to existing power plants,” says Gellici, “so companies are not willing to upgrade their turbines or improve their boiler performance, in case they are hit by lawsuits.

“Another thing that is really objectionable to us as an industry,” she continues, “is that we’re starting to see very incremental benefits with these regulations. Balancing the costs of the regulations with the economic value we’re receiving from them has become very lopsided.

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Coal power station

American Coal Council The Mercury Air Standard Toxic Rule (MATS), for instance, is currently in the courts. EPA is projecting that it will cost something from $10 to $11 billion for our industry to comply with this regulation, but the health benefits are less than one percent.”

Despite all the obstacles, Gellici still believes in the ebb and flow principle. “As power costs rise I would expect there to be some push back from citizens,” she says, and of course, it’s votes that count.

The communications industry is already voting with its feet, as it were. “We’re seeing hugely increasing power demand from companies like Google, Facebook and Apple,” says Gellici. “Greenpeace brought out a study earlier this year that said if the cloud were a country it would be fifth largest electricity user in the world.” It’s a trend that’s likely to continue for the foreseeable future as more people download audio and video files, and companies use the cloud for data storage. “As these companies rely on a secure source of power, they’re locating their power facilities in places where there is cheap and reliable coal and nuclear power available. They’re not depending on wind or solar.”

The coal industry may have to endure another four years of siege, but if carbon capture and storage technology continues to be advanced and supported by government and industry, we may see the pendulum swing back the other way.

For more information about American Coal Council visit: www.americancoalcouncil.org

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Taking a professional approach

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

written by: Will Daynes research by: Robert Hodgson

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

GeoProMining

I

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

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

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

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

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

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

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

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

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

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

“Since early 2008, we have focused our efforts on integrating all of our assets into one group, thus creating a very successful enterprise” 148 | BE Monthly

GeoProMining

GPM activities in Russia

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

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

2001

BE Monthly | 149

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

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

150 | BE Monthly

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

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

GeoProMining

Leaching tanks at the Ararat gold recovery plant in Armenia

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

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

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

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

BE Monthly | 151

Champion

of change

152 | BE Monthly

Exxaro Resources An extraordinary South African resource company with a strategic vision to become a $20 billion company by 2020

written by: Martin Ashcroft research by: Robert Hodgson & Jon Bradley

BE Monthly | 153

Trucks are driven out of the pit electrically to increase productivity and save diesel

Exxaro Resources

E

xxaro Resources is one of the railed directly to Mittal SA under a long-term largest South African diversified supply agreement. resource groups, with interests Such are the demands for power in South in coal, mineral sands, industrial Africa, however, that Grootegeluk’s capacity minerals and iron ore. The is being doubled in order to supply the new company is the second-largest South African Medupi power station that Eskom is building coal producer, and the third-largest global nearby. The $1.3 billion Grootegeluk Medupi producer of mineral sands, a class of ore Expansion Project (GMEP) will increase deposit which is an important source of throughput to 14,000 tonnes per hour, and zirconium, titanium, thorium, tungsten, and supply Medupi with 14.6 million tonnes per rare earth elements. annum of coal for 40 years.

Exxaro’s eight managed coal mines produce Exxaro has a strategic target to become a over 40 million tonnes per annum (Mtpa) US$20-billion company by 2020—a global, of power station, steam and coking coal, as diversified company with top-quartile returns.

To help achieve this it has well as char. The company is set targets for operational the largest supplier of power excellence, aiming to station coal to South Africa’s national power utility, Eskom. reduce its carbon footprint, Exxaro’s Grootegeluk improve on the safety and Tonnes per hour empowerment of its people, mine is one of the mostcapacity of Exxaro’s efficient mining operations and become an employer expanded Grootegeluk in the world, and operates of choice and an agent for beneficiation plant the world’s largest coal change in South Africa.

Achievements have already beneficiation complex, where 9,000 tonnes per hour of run-of-mine been registered in this regard, with a Standard coal is upgraded in six different plants. of Excellence Award in the 2012 Deloitte Best Situated 25 km from Lephalale in South Company to Work For survey. CEO Sipho Africa’s Limpopo province, this open-pit Nkosi said the group is exceptionally proud mine has an estimated minable coal reserve of this achievement. “This is a target we set of 2800Mt and a total measured coal ourselves for 2016, and we have achieved it resource of 4600Mt, from which semi-soft in 2012. This is not an easy award to win – it coking coal, thermal coal and metallurgical is the result of concerted effort to achieve a coal can be produced. clear goal to continually improve our people Some 14,8Mt of annual production is power management capabilities and is therefore station coal, transported directly to Eskom’s more valued as a result.” Just a few weeks Matimba power station on a 7 km conveyor after this award, Nkosi himself emerged belt. Grootegeluk also produces 2,5Mtpa of victorious at the Southern Africa Chapter of semi-soft coking coal, the bulk of which is the Ernst & Young World Entrepreneur Awards

14,000

BE Monthly | 155

EXXARO Exxaro RESOURCES Resources tempor incididunt ut labore Lorem ipsum dolor 2012, winning the Master sit amet, category. consectetur et dolore magna aliqua. Ut Entrepreneur adipisicing elit, sed do enim ad minim veniam, In terms of operational quis nostrud exercitation eiusmod tempor incididunt excellence, in August this ullamco laboris nisi ut ut labore etbecame dolore the magna year Exxaro first aliquip ex ea commodo aliqua.

Ut in enim ad minim company South Africa consequat. Duis aute irure veniam, nostrud to achieve quis Road Transport dolor in reprehenderit in exercitation ulla mco Management System (RTMS) voluptate velit esse cillum laboris nisiand ut aliquip ex consignor consignee dolore eu fugiat nulla ea commodoThe consequat. accreditation.

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Excepteur sint officia mollit anim id est laborum. consignors and hauliers engaged in the road value deserunt chain. Exxaro’s Grootegeluk and occaecat cupidatat proident,asunt in Lorem ipsumComplex dolor sit business amet, consectetur logistics value chain non to implement vehicle North Block units are culpa qui officia deserunt mollit anim id adipisicing elit, sedsites do to eiusmod management system that preserves road the first company receivetempor RTMS est laborum. Lorem ipsumroad dolor sit amet, ut labore dolore magnaby aliqua. infrastructure, improves safety and incididunt accreditation, whichet is supported The consectetur adipisicing elit, of sedthe do eiusmod enim ad minimand veniam, Chamber of Mines Eskom.quis nostrud increases the productivity logistics Ut

JOY GLOBAL One Joy Global – It Starts Here It starts with an unparalleled commitment to mining. Our business is focused solely on serving surface and underground mining operations with superior equipment and direct service that achieves the lowest cost per unit of production over the life cycle of the equipment.

Our reach is global, with facilities and service centers that span six continents and more than twenty countries. But our focus remains local.

Our people and services are close to the mines to provide better decisions and solutions.

Above ground and below, we strive to create a more seamless experience that raises the bar for the entire industry.

And it starts with Joy Global. www.joyglobal.com Joy Global (Africa) 1 Steele Street, Steeledale, South Africa Tel: +27-(11)-406-6100 | E. info@joyglobal.com

OCTOBER 2012| 157 |2 BE Monthly

EXXARO Exxaro RESOURCES Resources When Exxaro was formed Resources in Exxaro 2006, it had a large coalfeature text: Lorem ipsum dolor amet, consectetur portfolio and was the sit world’s adipisicing elit,producer sed do eiusmod tempor third largest of incididunt ut labore et dolore magna aliqua. heavy minerals, principally Ut enimslag ad for minim veniam, quis nostrud chloride the pigment exercitation market. Butullamco rather laboris than nisi ut aliquip ex ea commodo consequat. allow the shape of theDuis aute irure dolor in business reprehenderit existing to leadin itsvoluptate velit esse cillum dolore eu fugiat development, it has taken nulla pariatur.

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company concluded that wouldutfall into sed do eiusmodcommodities tempor incididunt labore three tiers. would et dolore magna aliqua.

Ut Tier enimone ad minim veniam, quis nostrud ullamco includeexercitation minerals such as laboris nisi utcoal, aliquip ex ea commodo iron ore, mineral sands consequat. Duis aute irure dolor in and copper, and these would reprehenderit in esse cillum bevoluptate the focusvelit for Exxaro over dolore eu fugiat nulla the nextpariatur.

10 years.Excepteur Tier two sint occaecat cupidatat non priority proident,10 sunt minerals—a to in Lorem ipsum15dolor sitdown amet,the consectetur years line—are adipisicing elit, sed do eiusmod those for which industrial demandtempor (from incididunt ut labore doloreindustries, magna aliqua. the aerospace and et energy for Ut enim ad veniam, quisincluding nostrud example) is minim increasing rapidly, exercitation nisiearths. ut aliquip titanium andullamco some oflaboris the rare But

SASFIN SECURITIES (PTY) LTD Sasfin Securities (Pty) Ltd has proudly been associated with Exxaro since its origin, and our relationship remains strong. One of the examples of the bespoke services that Sasfin is providing to Exxaro is the on-market trading of the company’s share incentive schemes.

Sasfin Securities has been a member firm of the JSE for over 100 years. We are primarily a private client portfolio manager and stockbroker that specialises in various risk profiles, with branches across South Africa.

Our investment management philosophy is best described as an adaptive, multi-faceted investment style that aims to remain most appropriate throughout the constantly changing market environment. This adaptive style aims to ensure a sustainable, consistent, compounding return.

Sasfin Securities is particularly cognisant of the need to minimalize financial risk, price volatility and the depreciation of asset values

in real terms. As part of our mission to support our clients in global wealth creation, we are able to seamlessly invest in a range of carefully selected, globally listed stocks and securities.

When conducting our research, we have both internal and external highly acclaimed investment analysts and strategists within our team.

Our clients are of a high net worth orientation and we offer them bespoke tailor-made investment opportunities. The primary objective is to abide by the investment mandate of the portfolio, while taking the mandated risk into consideration.

Our portfolio managers have an average experience of 25 years in the industry.

We are passionate about creating, enhancing and preserving wealth for our clients through innovative, personalised solutions.

E. info@sasin.com www.sasfinsecurities.co.za

2012| 159 |2 BEJANUARY Monthly

14.6 Million Tonnes of coal to be supplied annually to Eskom’s new Medupi power plant

Exxaro is already looking beyond that to its third tier—materials the world will require in 30 years’ time to enable industry to address economic megatrends like climate change and population growth.

In June 2012 Exxaro consolidated its mineral sands operations with the finalisation of a transaction with Tronox Incorporated, in which Exxaro exchanged its mineral sands operations for a shareholding in the newly formed Tronox Limited—the world’s largest fully integrated producer of titanium ore and titanium dioxide. The long-term partnership is expected to enhance production capabilities and implement technical efficiencies in the integrated process, creating a truly global, vertically integrated titanium dioxide pigment producer, the company said. This is expected to result in a strong platform for future growth, uniquely positioned to capitalise on favourable market dynamics and to serve the needs of the ever-growing pigment and zircon customer base across the globe.

Exxaro and its board of directors are committed to ensuring ethical and sustainable business practices—a commitment that has been rewarded again this year with continued inclusion on the 2012 JSE Social Responsibility (SRI) Index, announced at

160 | BE Monthly

Exxaro Resources

The Grootegeluk mine

the end of November. The group met the Index’ best practice criteria for environmental policy, environmental management systems and environmental reporting, as well as the best practice criteria set for training and development, employee relations, equal opportunities, black economic empowerment, health and safety, HIV/Aids, community relations, stakeholder engagement, board practice, indirect impacts, business value and risk management, broader economic issues, governance and related sustainability reporting and code of ethics/conduct.

“Our aim is to integrate business, community and environmental needs and obligations to enable Exxaro to achieve its

founding goal of being a company that makes a positive social and economic contribution to South Africa,” said Nkosi. “The prosperity of South Africa is inseparably linked to the sustainability of our world-class and dynamic mining sector. It is our belief that if we implement our sustainability model successfully, and manage our sustainability issues correctly, we will automatically create more employment for all South Africans and uplift disadvantaged South Africans.”

For more information about Exxaro Resources visit: www.exxaro.com

BE Monthly | 161

162 | BE Monthly

Denel Aerostructures

Making the transition CEO Ismail Dockrat discusses the restructuring programme that has contributed to this South African success story

written by: Will Daynes research by: David Brogan BE Monthly | 163

CEO of Denel Aerostructures, Ismail Dockrat

Denel Aerostructures

I

n the nearly two decades since 1994, air “At the time that I joined the business,” travel into South Africa has increased by Dockrat explains, “Denel Aerostructures was approximately 70 percent. In fact, during very much in need of undergoing a major the month long staging of the 2010 FIFA transition in order to become a 21st century World Cup alone it is estimated that over aerostructures manufacturing company. one million foreigners visited the country. In order to bring about a major overhaul These figures go some way to highlighting in our manufacturing processes we had to the reason why the aviation sector in this part undertake a massive turnaround programme of the world has undergone such tremendous that consisted of eight core objectives.” growth in recent times.

The first thing the company needed With a heritage that dates back to the to do was align itself with South Africa’s establishment of Atlas Aircraft Corporation national aerospace objectives. The country’s in 1964, Denel Aerostructures is recognised government has identified the aerospace as being one of the leading players in the sector as a priority for job creation and fields of aircraft development economic growth and Denel and manufacture in Aerostructures has made Sout h A f r ic a.

T he the concerted effort to become a leading proponent company’s core capabilities of its Aerospace Sector include comprehensive Development Plan for the desig n, development, Increase in air travel in country. industrialisation and the South Africa since 1994 assembly of fixed and rotary “One of the most important wing aerostructures for things I was tasked with the global market. Past and from an early stage,” Dockrat present clients include the likes of Gulfstream, continues, “was devising a credible business Saab, BAE Systems, AgustaWestland and its plan on which a recapitalisation of the business could be based. Successfully doing so main customer, Airbus.

Today the company is led by chief executive has allowed us to turn the corner from being officer, Ismail Dockrat. Having spent much a loss making business.” Equally as important of his career in the defence and aerospace in this context was the restructuring of the industry, Dockrat joined Denel in 2006, first company’s work programmes. as the chief executive officer of Denel Aviation, As well as bringing several programmes before moving across to Denel Aerostructures to a constructive end, this prompted the in 2010. It was at this time that the company company to sit down with Airbus and was in the midst of difficult economic times, renegotiate its existing contracts for caused through a combination of factors the A400M military transport aircraft including inherited operational weaknesses programme. It was the implementation of a and the on-going global economic downturn. focused operational turnaround that allowed

70%

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2006 Chief executive officer, Ismail Dockrat joins Denel

Denel Aerostructures is home to the largest special processes facility in the southern hemisphere

166 | BE Monthly

these renegotiations to be successful. This turnaround has led to an improvement in the company’s throughput, the introduction of lean manufacturing principles throughout its operation and an increase in its delivery performance. These factors have prompted Airbus to make a long-term commitment to Denel Aerostructures.

Due to the state of the business at the time of Dockrat’s arrival, one of the more necessary steps that needed to be taken was a process of cost-cutting initiatives. This included reducing the physical footprint of the company by twothirds. By reducing the amount of ground it occupied from 75,000 square metres to 25,000 square metres, and by reorganising its production work flows, the company was able to make considerable savings in terms of rental, labour and infrastructure costs.

Being a time of great change, it also fell to Dockrat and those around him to improve the motivation levels of the company’s workforce.

“We have always had a fantastic team here,” Dockrat enthuses, “however motivation levels at the time that I joined were not where they should have been. To improve this we put in a lot of time and effort to really connect with our workforce, engaging with them on all levels and involving them in the decision

Denel Aerostructures

Denel Aerostructures’ capabilities include advanced design and engineering.

Above is an image of the wing to fuselage fairing size in relation to a person

making process regarding how we can take the business forward.”

Another complex undertaking required the company to effectively overhaul its entire supply chain management system. This process allowed it to delegate certain areas of work to local suppliers, things like simple sheet metal work, while refocusing itself on more complex tasks that mix high-end machining and hand-layup composite work with a design element.

“One of the most exciting things for us right now,” Dockrat states, “is the development of new business. We have a strong foundation of work with the likes of Airbus and Gulfstream and we are now actively engaging with all major aerospace OEMs and tier one aerostructure manufacturers to secure new work for the company.”

Last, but not least, the final objective of the turnaround was to achieve good financial governance and a strong control of all

“By overhauling its entire supply chain management system, the company was able to delegate certain areas of work to local suppliers” BE Monthly | 167

internal controls. Achieving this has helped reassure the company’s stakeholders that it is managing its balance sheet in a responsible manner. “When it comes to all the different aspects of our turnaround programme,” Dockrat says, “we are immensely pleased that we have managed to meet all of the objectives that we first set ourselves back in 2010.”

Arguably the most interesting project that the company finds itself involved in today is the wing-to-fuselage fairing (WFF) work being carried out on the A400M for Airbus.

A highly technical undertaking, the WFF is a large structure that sits on top of the aircraft where the wing section connects to the fuselage.

“Arguably the most interesting project the company is involved with is the wing-to-fuselage fairing (WFF) work being carried out on the A400M for Airbus”

Denel Aerostructures is involved in three work packages for the A400M, the top shells, ribs swords and spars and the wing to fuselage fairing

168 | BE Monthly

Denel Aerostructures

Denel Aerostructures team – together we “Make It Fly”

“Made up of hundreds of composite panels,” Dockrat details, “the WFF has an aluminium frame, the lightness of which has contributed greatly to Airbus’ efforts to reduce the overall weight of the aircraft. In the process of creating this structure we have developed a global excellence in terms of weight saving for our industry and that is something we are extremely proud of.”

The structural and system interfaces of the WFF meant that Denel Aerostructures had to have a digital infrastructure in place that allowed it to communicate and exchange information in real time with all other

partners within the A400M programme. “We are very excited with the progress we have made to date with this programme,” Dockrat says, “and as we now enter the production phase we find ourselves in the perfect position to initiate an accelerated ramp up for Airbus.”

Last November, the company made its presence felt at the 2012 AIRTEC International Aerospace Supply Fair, where Dockrat himself delivered a keynote speech. “Some of the most interesting talks at the conference,” he reveals, “were those that examined, at a broader level, what the future will hold for air travel. I personally feel that this century

BE Monthly | 169

Denel Aerostructures’ world class capabilities include Denel Aerostructures specialises an assembly line; above is the top shell assembly in house Zimmermans allow fo

“Future plans involve establishing a greater footprint in other aerospace markets, namely the business and commercial aircraft sectors” will be a hugely exciting and defining time for everyone involved in this industry, particularly when you look at all that has been achieved to get us to where we are today and all that is predicted to come, what with the rise of numerous developing economies. It certainly makes for exciting

170 | BE Monthly

reading for us when you think that we have really only just touched the tip of the iceberg in terms of how we are applying advanced materials in composite structures in the development of aircraft.”

Looking ahead, Denel Aerostructures’ future plans involve establishing a greater

Denel Aerostructures

s in advanced manufacturing. Two or expertise in thin web machining

Ismail believes in being hands on within the factory. Mr Dockrat interacts with the shopfloor, and is taught by his colleagues what their job entails

footprint in other aerospace markets, namely the business and commercial aircraft sectors.

“As a result of the work we have on-going with Airbus,” Dockrat says, “as well as that which we have carried out for the likes of Saab and BAE Systems, we believe we have earned a very strong reputation in the marketplace and that is something we want to build on.”

In the commercial aircraft sector, two major procurements on the horizon, involving the regional, state-owned carrier SA Express and South African Airways respectively, bode well for Denel Aerostructures. “What we are doing,” Dockrat concludes, “is actively pursuing

engagement with the likes of Embraer, Bombardier, Airbus Commercial and Boeing Commercial in order to position ourselves appropriately to win business on these programmes. While we have to ensure that we remain competitive in the marketplace, we must also remain realistic and that means identifying the type of work that fits into our technology base. This is what we believe will be the key to our success.”

For more information about Denel Aerostructures visit: www.denelaerostructures.com

BE Monthly | 171

Trail blazing British American Tobacco is realigning its supply chain function to improve operational efficiency. Bernd Meyer, Global Head of Plan, Logistics and Service explains how

written by: gay sutton research by: Vincent Kielty

172 | BE Monthly

British American Tobacco

Cigarette manufacturing

British American Tobacco

O

For the past 12 months, as head of Global ne of the most challenging tasks facing any organisation Plan, Logistics and Service, Meyer has had is initiating and embedding an enormous and very influential remit. change. When managers British American Tobacco has a network exhibit talent in this field of more than 40 cigarette factories in 39 they tend to become corporate trail blazers or countries, additional contract and license trouble shooters, brought in to solve problems manufacturing agreements and a range of or implement changes that will improve the top quality products sold into approximately business or develop operational best practice. 180 markets worldwide. In addition to When we last spoke to Bernd Meyer manufacturing, British American Tobacco of global tobacco giant British American owns and manages a portfolio of leaf Tobacco he had successfully transformed the growing operations, thereby managing risk massive South African Heidelberg cigarette in the supply chain, and actively working to factory from an underperforming operation guarantee quality at farm level. based on manual labour With an organisation of to a highly automated and this size and complexity, the company has developed high performing state-ofa matrix management the-art factory. Along the structure. The corporate way, he elevated working headquarters oversees procedures, processes and Number of British attitudes so that Heidelberg strategy and companywide American Tobacco today is an exemplar of functions while decisions are cigarette factories British American Tobacco’s taken as close as possible to around the world the local stakeholders. Each culture. At that time, he region has implemented was preparing to move to corporate headquarters in London where a the British American Tobacco processes, newly created role awaited him. procedures and best practice, but has the “The supply chain at British American leeway to adapt them slightly to fit with local Tobacco has traditionally been split according customs and market expectations. to the plan, buy, make and move model,” By folding together the planning, logistics Meyer explained. “We had separate functions and service departments into a single function for manufacturing, logistics, planning and the company believes it will achieve significant service and procurement. None of these improvements in efficiency and performance. functions are new. What is new is that we “Planning is very closely linked with both are rolling three of them together as the Plan, logistics and service, and the functions were Logistics and Service function, leaving just continuously in communication with each manufacturing and procurement as separate other,” Meyer said, “so it made sense to have supply chain functions.” them operating under the same roof.”

40+

BE Monthly | 175

Welcome to our global logistics network.

At Kuehne + Nagel, we make it our business to pinpoint your supply chain challenges.

We understand that the successful integration of your supply chain starts with the successful collaboration with your supply chain partner.

That’s why every day, our 63,000 logistics experts across the globe are committed to working towards the same goal – to operate as a true extension of your business.

Learn more www.kuehne-nagel.com

Over the course of its 120 year history, Kuehne + Nagel has evolved from a traditional international freight forwarder to a leading global provider of innovative and fully integrated supply chain solutions. Its global logistics network, cutting-edge IT systems, in-house expertise and excellent customer service are proof of the company’s dedication to be the market leader. These attributes have placed Kuehne + Nagel at the forefront of the logistics industry, and positioned it to continue increasing the scope of customer solutions and services.

Kuehne + Nagel provides BAT with end-toend logistics expertise that supports its core business strategy. The two organisations entered into a strategic partnership in 2009.

The foundations of this partnership are built on the companies shared objectives of continuous improvement, identification of cost savings and enhanced service levels to support global production and through the secondary supply chain.

As one of the world’s largest logistics providers, Kuehne + Nagel offers BAT a truly global network. Kuehne + Nagel is uniquely positioned with a single operating system across the globe, allowing all logistics activities to be coordinated seamlessly.

1178| DECEMBER 2012 | BE Monthly

BAT British American Tobacco

These activities include global air and sea freight services, warehousing and distribution, and fully integrated logistics. BAT operates from a range of diverse geographies and relies on this consistency and transparency. Equally, BAT demands specific local knowledge and the ability to react quickly to events, which Kuehne + Nagel can provide thanks to its worldwide coverage.

Pacific region. The Singapore LSC continues to deliver cost savings for BAT through the implementation of a wide range of value added and continuous improvement projects.

The LSC concept in both Birmingham and Singapore has improved delivery service performance through strong supplier management and provided on-going enhanced shipment visibility and reliability.

Kuehne + Nagel is responsible for the transport planning of all the inbound global leaf movements from 103 suppliers, from 41 origin countries to 43 factories. The introduction of a Logistics Service Centre (LSC) based in Birmingham for the Global Leaf Pool (GLP), has supported significant savings for the global movement of leaf tobacco. Working together with Kuehne + Nagel, BAT has achieved double digit percentage improvements in its global On-Time-In-Full performance standards.

Kuehne + Nagel also provides storage and finished goods distribution services within Germany and Greece providing high level secure warehousing and distribution services on behalf of BAT’s secondary market. The multi-location stockholdings are strategically located to support the secondary supply chain on behalf of BAT in these vital market areas.

In addition, Kuehne + Nagel operates the logistics service centre based in Singapore to support the Asia-Pacific region on behalf of BAT. Here, Kuehne + Nagel is responsible for end-to-end order and supplier management of inbound and outbound logistics, initially for the Singapore production facility that provides scalability for the complete Asia-

Innovation and continuous improvement are key to successfully implementing logistics solutions that support the changing needs of BAT’s dynamic business. As the supply chain evolves, Kuehne + Nagel aims to strengthen its partnership with BAT, extending its range of logistics services into more geographies and into wider areas of BAT’s business, acting as an enabler for growth.

www.kuehne-nagel.com

DECEMBER 2012| 179 |2 BE Monthly

The planning function is very much a strategic one. Operating across British American Tobacco it is responsible for defining the processes and systems by which the company operates, for contingency sourcing and providing a significant input into the global sales and operations planning process. It also conducts global planning for the factories and plans the roll-out of new products and initiatives. The unit therefore examines, standardises and rolls out supply chain processes and procedures across the entire global supply chain. It reviews and defines the optimum global factory footprint, designs the warehouse and supply networks and optimises them to ensure they are always the best fit and

will deliver competitive advantage, and it is responsible for global production and logistics planning.

It is therefore easy to see why planning should be brought together with logistics, which oversees the movement and storage of materials at both ends of the supply chain. The logistics function defines logistics strategy, is the primary contact for communicating and negotiating with outsourced logistics partners such as Kuehne & Nagel and DHL, and provides worldwide logistics network modelling, logistics operating standards and best practises for the regions in close partnership with planning.

The same synergies can be found between planning and service, which provides the

Quality checks are carried out at each stage of the cigarette making process

180 | BE Monthly

British American Tobacco

“Before you can execute savings opportunities or alter ways of working, someone has to put a good idea down on paper” global marketing function with supply chain support and helps to transform an idea into a commercial product. If, for example, a new product is being proposed the service/innovations delivery department will examine the feasibility of producing it: how and where it will be manufactured, materials sourcing and supply, time frames and lead times, and so on. All of this is done

in collaboration with planning where factory footprint, production planning and material sourcing decisions are made.

Meyer’s challenge as head of the new global function is to bring these previously independent sections successfully together and build a fully integrated high performance unit.

The process initially began at headquarters in London where Meyer has a staff of 14. “We have designed a blueprint structure for the function, and this is being rolled out in the regions and even to some extent on a local level where planning, logistics and service are now growing together,” he said. “So far, we have established good communication and a close relationship between the global function and the regions, and there is a good sharing of information and experience.” All of which are a tribute to the success of the change management process.

Beyond integrating the three existing functions into a new single corporate unit, Meyer is responsible for continuing to drive business improvement. From the supply chain perspective this entails removing costs from the business, increasing its efficiency and improving environmental performance, all of which are closely interlinked.

Achievements in this area are ongoing and incremental. For example, network

BE Monthly | 181

modelling is being used to identify where changes can be made to the logistics and warehouse networks to reduce the travelling distances for products. Making changes to product attributes like packaging or format, volumes moved, or even the number of times a product is handled are also helping to reduce costs, and improve efficiency and environmental performance.

Many purely environmental initiatives are also in progress. For example new trucks are specified to incorporate start-stop technology to reduce fuel consumption and emissions, while warehouses are designed to make the most of daylight and to use only energy saving lighting when illumination is required. Considerable work is being done to aggregate purchasing at a regional or even a global level, and this delivers cost savings through bulk purchasing.

“We’re also looking at ways of improving our flexibility and responsiveness to changes in demand, and our speed in rolling out changes quickly. However, improving efficiency is very much about challenging existing ways of working and defining incremental process changes that will improve the efficiency of the whole.” This is a primary function of planning, where new processes are continuously being evolved, designed and then standardised across the entire business.

All core planning, logistics and service functions rely heavily on the company’s world class IT systems. “We use SAP APO, and this gives us complete global transparency with regard to demand and supply figures,” Meyer commented. “Our IT systems obviously also play a very important role in defining and delivering improvement, but human input always has to come first. Before you can execute savings opportunities or alter ways

“I believe the secret of a successful company is how they gather the best ideas from their staff, grow them and replicate them across the business” 182 | BE Monthly

British American Tobacco

Tobacco field in Uganda

of working, someone has to put a good idea down on paper. And I believe the secret of a successful company in the longer term is how they gather the best ideas from their staff, grow them and replicate them as fast as possible across the business. So improvement is essentially all about communication and people,� he continued.

To achieve this, the company works on the principle that people have to be educated and provided with the right knowledge and expertise, and will then readily identify and propose ways to drive efficiency. Supporting that principle, Meyer’s department works closely with corporate HR designing the content of all training courses for logistics, planning and service personnel, and in some cases his staff also deliver that training. This

approach not only raises skill levels, nurtures British American Tobacco corporate culture and cements communication with functional staff from around the globe, but standardises these across the organisation and drives improvements in performance.

As the integration of planning, logistics and service becomes stronger across the organisation, this focus on skills and getting the best from people will become increasingly important. It is a talent that Meyer has honed and demonstrated over many years of successful change management.

For more information about British American Tobacco visit: www.bat.com

BE Monthly | 183

Lanka Walltiles

Wall to

wall quality Managing director Mahendra Jayasekera explains how unwavering quality and new technologies have created a leading position in the Sri Lankan ceramic tile market

written by: Will Daynes research by: Abi Abagun

BE Monthly | 185

Lanka Walltiles

W

The company’s products are of the highest quality

hether they are used on walls or floors, to line showers or bathtubs, create countertops or to make decorative accents inside or outside homes, ceramic tiles are today a fixture of buildings the world over. Made from a mixture of clay, sand and other natural materials that are pressed into shape before being fired at high temperatures, ceramic tiles possess a host of beneficial properties, from their durability to the ease in which they can be cleaned, that have turned their manufacture and sale into a multi-million dollar global industry.

Incorporated in 1975 as an export oriented joint venture with Japanese collaboration, Lanka Walltiles is the premier ceramic tile manufacturer in Sri Lanka. Commencing commercial production from its factory in Balangoda in May 1977, the company executed its first export order in July of that same year, and by 1978, 92 percent of its total output was exported.

In 1984, a subsidiary company was incorporated under the name, Lanka Floortiles. From its factory in Jalthara, Ranala, this subsidiary continues to manufacture glazed ceramic floor tiles to this day. A second factory to manufacture glazed ceramic wall tiles was set up in Meepe, Padukka in 1994.

“Over the years,” explains managing director Mahendra Jayasekera, “the two companies have expanded their respective production capacities, while also investing in other business ventures. Today, the two have controlling interests in Ceytea Plantation Management, Swisstek (Ceylon) and Swisstek

BE Monthly | 187

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Lanka Walltiles Aluminium Limited.”

At current levels Lanka Since its foundation in 1977, year after year Smaltochimica Walltiles and Lanka Floortiles has focused on becoming one of the market leaders in the have the capacity to produce production of specialty chemicals for the ceramic industry 7500 square metres of wall worldwide. Thanks to constant research and development, tiles and 11,800 square the company has continued to grow, developing and finemetres of floor tiles per day. tuning all ceramic applications including the recent digital decoration method.

“In recent times,” Jayasekera These continuous technological developments as well the continues, “we have invested quality of the products constitute important assets for considerable capital in Smaltochimica. “Nature” is a new eco-friendly product lineup building up our capacity and which makes use of natural raw materials that minimize the upgrading the technology in percentage of petrochemical products in the formulations. our factories, always keeping www.smaltochimica.it abreast of developments within the industry.”

The company’s products are of the highest quality and compare with the very best tiles found elsewhere in the world’s leading markets. This attention to quality sees its products being exported to all four corners of the world. “Particularly strong markets of growth for us,” Jayasekera says, “include Australia, Canada, Pakistan, Oman and the Maldives. Other export markets we serve include Japan, Singapore, the Netherlands, New Zealand and Sweden. In more recent times we have also successfully re-entered the US market as part of our plans to expand our export operations further.”

Smaltochimica

7,500 m

2

Lanka Walltiles’ daily production capacity New kiln

BE Monthly | 189

For more than 35 years, Lanka Walltiles has been a major force within the ceramic tiles sector and it has remained as such by playing to its core strengths. The company’s highly skilled technical staff are supported by the very best production equipment and new technologies. “In possessing a high level of quality consciousness that ensures its products

conform to the most stringent of international standards,” Jayasekera enthuses, “the company has built up a loyal and longstanding customer base in both local and international markets.

In the local market our presence over nearly four decades has also allowed us to establish a strong distribution and dealer network, a chain of franchise showrooms and of course

“For more than 35 years, Lanka Walltiles has remained a major force within the ceramic tiles sector by playing to its core strengths”

Automatic palletizer

190 | BE Monthly

Lanka Walltiles

Effluent treatment plant

company owned showrooms, It is not only in hotels making us highly visible where one will find said throughout the country.” tiles. They have also been These strengths have seen put to use within the the company’s products used Uma Oya Multipurpose in a number of high-profile de ve lopme nt pr oj e c t , Lanka Walltiles incorporated projects. Hotels feature the Sir John Kotelawala Defense University Medical prom i nent ly a mongst Facult y, the Ratnapura these projects, with Lanka Walltiles and Lanka Floortiles products General Hospital and the Api Venuwen found within the Chaaya Bey Hotel in Api Housing Projects.

Beruwala, the Anilana Hotel in Pasekudah, While understandably proud of its the Kukuleganga LAYA Leisure Hotel, the accomplishments, the company has its focus Club House Hotel in Uswetakeiyawa and set firmly on the future and how it can expand within Jetwing Hotels’ Yala Properties. and grow further. “In May 2011,” Jayasekera

1975

BE Monthly | 191

New kiln

“While understandably proud of its accomplishments, the company has its focus set firmly on the future and how it can expand and grow further” says, “we commissioned our newest plant in Meepe. The month after this, commercial production began and this took production capacity up by 67 percent. We followed this up in January 2012 with a further 40 percent increase in production capacity at our floor tiles factory and this has now given us the ability to produce glazed porcelain tiles in sizes of 300 by 600 millimeters and 500 by 500 millimeters. Such abilities allow us to

192 | BE Monthly

cater to new segments in the market and thus increase cash flows.”

Jayasekera further states, “another new investment has been made that enables us to produce special trim tiles to complement our wall tiles, something that is essential to our success in the US market. At present we produce bull nose tiles, quarter rounds and chair rail moldings, and we plan to increase our range of trims and moldings in due course.”

Lanka Walltiles

Effluent treatment plant

New investments have continued to be made over the course of the last 12 months, the most exciting of which being the digital printing machines that have been installed at both tile factories. “The process,” Jayasekera states, “operates through two state-of-the-art Italian machines from SITI B&T (Keramagic) and TECHNOFERRARI. What we have found is that the use of digital tile decoration dramatically shortens the path from idea to finished product, while also bringing numerous other advantages to the process by being the most efficient and sophisticated tile decoration system on the market.”

Quick processing times allow the production of premium replicas of natural designs and textures, including stone, marble and wood.

Furthermore, this cutting-edge equipment

Rectification and chamfering of tiles

has the capacity to decorate relief surface, where a design can be printed on any surface of tile, regardless of shape, depth or contour.

“This technology,” Jayasekera goes on to highlight, “guarantees a seamless design that covers the entire tile, giving it optimum aesthetic appeal and consistency in color intensity, with the capability of high-definition printing of up to 12 colors at 1000 DPI (dots per inch). Digital tile decoration also opens the prospect of producing a scenario where, much like with fingerprints, no two tiles need be the same.”

For more information about Lanka Walltiles visit: www.lankawall.com

BE Monthly | 193

the right chem

As a diversified manufacturer of chemicals and a major operator, Coogee Chemicals enters 2013 with the clear a the work that has made it one of the sector’s biggest suc

written by: Will Daynes research by: Jeff Abbott

194 | BE Monthly

Coogee Chemicals

mistry

tank terminal aim of continuing ccess stories

BE Monthly | 195

F

ormed in the early 1970s by thirteen individual investors, most of them farmers, Coogee Chemicals has since created a significant place for itself in Australia’s chemical industry. A privately owned company that is fiercely proud of its Western Australian heritage, Coogee Chemicals is responsible for producing a wide range of industrial, agricultural and mineral processing chemicals for supply to both local and international markets.

Coogee Chemicals’ business today is divided between three core divisions, chemicals manufacturing, tank terminals and transport and logistics. From its tank terminals in Kwinana, Western Australia, the company plays host to many of the major players in the fuel market, while its sulphuric acid terminal is recognised as being the largest acid storage facility in the Southern hemisphere. In addition to this, Coogee Chemicals operates bulk liquid terminal facilities for the import, export and storage of chemicals and fuels, while its dangerous goods transport operations in Western Australia and Queensland complement the services it provides its customers.

Among the many different chemicals manufactured by the company are aluminium sulphate, both in liquid and solid forms, chlorine, copper oxide, ferrous sulphate, hydrochloric and sulphuric acid, methanol, liquid sodium hydro chlorite and sodium cyanide.

As well as its products, Coogee Chemicals continues to invest significant resources into its research into various products and

196 | BE Monthly

Coogee Chemicals

Coogee Chemicals invests significantly in research

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Coogee Chemicals

Testing specific gravity

facilities, specifically gem fuel, tiro titanium operating on methanol blended fuel, served by fuel dispensing outlets at each of the and a world scale methanol plant.

A clean burning, high energy fuel made company’s sites across Australia. The first from non-petroleum energy sources, of these vehicles is already on the road, with methanol has been commercially blended more set to follow in the months ahead. into gasoline since the early 1980s and has During these early trials each vehicle will also been successfully used for extending be independently monitored in order to gasoline supplies in highlight its performance and durability. many prominent markets throughout the world.

E lsewhere, Coogee As Australia’s only Chemicals, together with methanol producer, Coogee CSIRO, is developing what Chemicals is in the process it refers to as the TiRO of putting into place an process for the continuous Coogee Chemicals direct production of titanium extensive test program established powder. Coogee Chemicals and trial fleet of vehicles

1971

BE Monthly | 199

1.8 Million Tonnes Estimated annual production capacity of methanol plant under construction

Coogee Chemicals operates bulk liquid terminal facilities

200 | BE Monthly

has been involved in this $12 million project since 2008 and is currently constructing a continuous pilot plant in Victoria, which is the next step towards world-scale production.

The third project that the company is deeply involved in is the construction of the world’s most energy and carbon efficient methanol plant. This high value-add, worldscale plant will utilise an energy efficient, low-carbon manufacturing process in order to provide significant reductions in emissions.

The proposed facility will be one of the world’s largest plants of its kind, boasting a production capacity of approximately 1.8 million tonnes of methanol per annum. The manufacturing process will be based on the scale-up of the LCM technology that the company is currently using to good effect at its Laverton plant. Upon completion, it is expected that this plant will be responsible for setting a new global benchmark for large scale, low carbon chemical production.

Like all responsible corporate entities, Coogee Chemicals is aware of its requirement to meet the environmental, social and economic needs of the communities around which is operates. As well as its commitment to providing a safe and healthy workplace for its employees,

Coogee Chemicals

The company is committed to providing a safe and healthy workplace

the company also promotes their wellbeing by offering a range of services from complimentary health assessments to influenza vaccination programmes.

The company’s facilities are designed and operated so as have as little an impact on the environment as is necessary and, wherever possible, materials are recycled and reused to minimise the amount of waste produced.

By working closely with community groups, Coogee Chemicals is striving to get a better

understanding of the social, environmental and economic implications of its activities.

Such understanding will enable it to enhance the benefits of its activities, while eliminating any negative impact.

Maintaining strong relations with the aforementioned communities is equally as important and as such Coogee Chemicals looks to actively contribute to their on-going prosperity and progress. Its involvement includes providing support to sponsorship

“Coogee Chemicals has developed into a strong, diversified organisation that possesses a strong desire to grow in a sustainable fashion�

BE Monthly | 201

A culture of innovation is maintained

Coogee Chemicals programmes, making donations to a host of important non-governmental organisations and providing employment and training opportunities. One scheme that the company is supporting today is the LyriK youth incentive programme. This aims to recognise and reward young people for their positive acts and provide development opportunities and skills that will assist them in later life.

From its humble beginnings in 1971, Coogee Chemicals has subsequently developed into a strong, diversified organisation that possesses a strong desire to grow in a sustainable fashion. In 2012, the company successfully acquired the chlor-alkali manufacturing business, Elite Chemicals, from GE Corporation. Elite Chemicals’ manufacturing facility is located at the port of Brisbane and is responsible for the production of sodium hypochlorite, hydrochloric acid and caustic soda for the water treatment industry and local industrial customers.

Elite Chemicals’ business also includes operational branches in Cairns, Townsville, Rockhampton and New South Wales, meaning that this acquisition provides Coogee Chemicals with a number of new business growth opportunities. Such acquisitions highlight the fact that the company indeed sees its future as being full of exciting new challenges.

For more information about Coogee Chemicals visit: www.coogee.com.au

BE Monthly | 203

Zimbabwe ta

POTRAZ: The national regulator overseeing the develo of Zimbabwe’s telecommunications network

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

204 | BE Monthly

POTRAZ

alking

opment

BE Monthly | 205

POTRAZ

W

Sites built under the Universal Service Fund are generally not on the national power grid, so POTRAZ has opted for environmental friendly solar power

hen it comes to telecoms Zimbabwe faces many of the problems common to African countries.

Though it has a better legacy in terms of fixed infrastructure than many of its neighbours, it covers a large territory and its 12 million population is scattered widely. Inevitably the cities were the best served populations, driven by business and government demand: until quite recently the rural areas saw very little service at all.

This has all started to change rapidly upon ‘dollarisation’ in 2009, when the power-sharing government officially adopted the US dollar for all its transactions. This move had a dramatic effect on Zimbabwe’s telecommunications industry, raising confidence and giving the three main mobile operators, Econet, NetOne and Telecel Zimbabwe, confidence to invest in network expansion. Prior to dollarisation access to telecommunications, especially mobile, was limited to only a privileged few and was seen as a status symbol, with less than 20 percent penetration. Today it has risen to 90 percent, while only three percent of households are connected to the fixed line network, and twelve percent to the internet via broadband or GSM. Overlooking this change is the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ), the government body that licences all operators within the country and a key member of the Communication Regulators’ Association of Southern Africa (CRASA). POTRAZ is charged with promoting the development of the industry in an equitable manner.

BE Monthly | 207

Not surprisingly most of the investment is currently going into funding the fast growing and technically dynamic mobile networks.

TelOne, the company formed after the government disbanded the former telecoms utility the Post and Telecommunications Corporation (PTC), still holds a de-facto monopoly on fixed-line services in Zimbabwe, though the government plans to privatise up to 60 percent of both TelOne and its mobile arm NetOne, either through an IPO or a strategic partnership with a foreign investor.

Despite having been granted its operating licence ahead of its two rivals, NetOne is third in terms of subscriber numbers, with Econet the market leader.

As at the end of September 2012, telecommunications in the form of either fixed or mobile services covered nearly 80 percent of the country (excluding national parks and game reserves), a very positive reflection of the work that has been done in recent years, says deputy director general of POTRAZ Alfred Marisa. However there are still significant parts of the country that are underserved because they are not a commercial proposition for the mobile operators, and addressing this is an important part of the regulator’s remit. POTRAZ administers the Universal Service Fund (USF), to which all

telecoms operators are obliged to contribute two percent of their revenues. “I think it was wise of government to put these funds into our hands,” says Marisa. “If it had been left in the hands of the Treasury the government might have ended up doing other things with the money but this way we can ensure it goes to improving the network, especially to remote rural areas.”

POTRAZ identifies sites in consultation with

“Operators are starting to appreciate the encouragement to invest in areas they would have otherwise neglected” 208 | BE Monthly

POTRAZ

The Universal Service Fund helps improve the network in remote rural areas

the commercial operators. If of 2013. The first phase consisted of sites at Chidodo, they don’t have plans to roll out a service, POTRAZ will Pfungwe, Neuso, Chilo, use its USF resources to build Chiodza, Malipati, Manama base station towers/masts and Dhlamini plus three Access to that it will then assign to the repeater stations. All the first telecommunications existing operators, but only phase sites are already on in Zimbabwe on condition that they share air. “Though the immediate benefit is felt by the people the resource with the others.

Many of the older existing who wouldn’t otherwise have towers were not designed to support shared been connected, it’s in the operators’ interest operation, says Marisa. “They are owned by to be pushed into expanding the network,” one but shared by all. Of course the operator says Marisa. “Some of them object to the that owns the site may charge a fee for levy but we will probably be able to reduce operational and maintenance costs.” that next year. Meanwhile they are starting Under the scheme eleven base stations to appreciate the encouragement to invest in have already been built using USF funds and areas they would have otherwise neglected.” a further 43 will be completed over the course This is not purely a social investment,

90%

BE Monthly | 209

Eleven base stations have already been built using USF funds

Forty three b

“We want to see growth in the ITC sector and play our facilitatory role in encouraging operators to invest” he adds. Greater connectivity will drive business growth and regional prosperity— consequently traffic, and with it the operators’ revenues, will grow in the long term. As a regulator, Marisa realises that this growth will come not so much from voice as from

210 | BE Monthly

data communications, which in an African context really means mobile broadband.

Econet and Telecel have been active in developing their offering in this field, with the government owned NetOne taking up the rear, but POTRAZ is encouraging its

POTRAZ

base stations are planned in 2013

POTRAZ exhibiting at the Zimbabwe International Trade Fair (ZITF)

operators to take the long view. “It is not just about taking the old base stations from town and siting them somewhere else; they need to put the most advanced technology out there.

These areas are still virgin land in terms of those operators!”

POTRAZ has been listening to the operators as well as haranguing them. One of the restrictions on telecoms growth, it recognises, has been the complexity of the licensing landscape with different licences for different services. “We want to get quickly to a point where we can offer technology neutral licences, or converged licences that

will allow an operator to provide any service which they see fit. I think that as a regulator we have done our best to get a culture of professionalism into the sector; we want to see growth in the ITC sector and play our facilitatory role in encouraging operators to invest.” Converged licences should be available in 2013. They will cut red tape and cost since each service currently requires a separate fee and application process. In turn this will draw more services into the market and encourage innovation, he believes.

And POTRAZ is in the process of coming up with a forward-looking costing model called

BE Monthly | 211

USF resourced base station towers and masts must be shared with other operators

POTRAZ

2013 Converged licences should be available in Zimbabwe Long Run Incremental Cost (LRIC) which will be used for tariff determination. “We have already done some consultative workshops with various stakeholders including consumer groups, industry, operators and academia to come up with common positions on how the model should be developed, taking into account the various concerns of these stakeholders.”

Alfred Marisa’s priority is the end consumer, however. One of POTRAZ’ key functions is to monitor quality and make sure operators are offering acceptable and value for money services—and services that match the needs of the consumers whether in business or individually. “The regulatory environment we have created promotes innovation by our operators, always improving the service offering and encouraging them to introduce new services to the market. That is why we are encouraging our mobile operators to go into mobile broadband, expecting them to optimise their internet data offerings. The truth is that voice is already on the decline.

So for our operators to continue to cling on to that voice platform is not sustainable.”

For more information about POTRAZ visit: www.potraz.gov.zw

BE Monthly | 213

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

written by: Gay Sutton research by: David Brogan

214 | BE Monthly

Finnet Association

BE Monthly | 215

Inside the data centre

Finnet Association

F

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

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

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

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

€15

BE Monthly | 217

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

Digging for the fibre cable

218 | BE Monthly

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

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

€400 million

BE Monthly | 219

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

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

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

Alongside this long-term investment in

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

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

Supematrix service

220 | BE Monthly

Finnet Association

Supermatrix devices

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

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

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

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

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

BE Monthly | 221

CAT Telecom

Making sense of the future CAT Telecom is striving to lead the way in providing wireless multimedia services in one of Southeast Asia’s most economically dynamic nations

written by: Will Daynes research by: David Brogan BE Monthly | 223

CAT Tower at Bangrak, Bangkok, with telecommunication facilities suitable for network and service providers

CAT Telecom

W

ith a GDP worth $602 on transforming itself in order to effectively billion, Thailand is support all services and respond quicker the second largest to changing customer needs. While every economy in Southeast step of development has been carried Asia. Having enjoyed out simultaneously, including network the world’s highest growth rate from 1985 development, the company has also to 1996, during which time it averaged 12.4 launched the Asia-America Gateway (AAG) percent growth annually, the country is today project. A modern international submarine considered to be a newly industrialised, cable system with a capacity of 1.92 terabits emerging economy. per second, this project has greatly helped The world’s 51st-largest country in terms advance the potential of the company’s own of total area, Thailand boasts an advanced CAT Internet Gateway. telecommunications industry that operates Much of the company’s domestic success through an extensive network of telephone derives from its provision of internet services. lines covering the 513,000 As a result of its links with the previous government of square kilometres of the Thailand and its advanced Indochina nation. In recent i n f r a s t r uc t u r e , C AT years, mobile cellular Telecom holds a competitive telephone ownership has grown at a much faster rate advantage over its rivals. This CAT Telecom established advantage is further buoyed than landline ownership.

Partly as a result of the by its unique access to the mobile communications price war that country’s fibre optic network. erupted in 2004, which led to prices falling Partnerships with key local and as low as 0.25 Baht per minute, there are international partners have also proved now approximately five times as many mobile invaluable for the company. One such cellular telephones than landlines in use. relationship exists between CAT Telecom Based on the most recent data available, and Hong Kong-based company PCCW more than half of the Thai population owns Limited. In providing PCCW with access to a mobile telephone, with more numbers the Thai telecoms market, CAT Telecom in allocated than number of population. turn receives access to the lucrative Hong Established in August 2003, under the Kong market where PCCW holds interests name of the Communications Authority of in telecommunications, media, IT solutions, Thailand, CAT Telecom exists to provide all property development and investment. categories and forms of telecommunication Not only has the company worked to services, as well as other related solutions, to improve its existing services in line with the customers domestically and internationally. requirements of its customers, and the rapid In recent times CAT Telecom has focused changes in communications technology, but it

2003

BE Monthly | 225

CAT CAT TELECOM Telecom CAT Telecom feature text

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TRUE CORPORATION PLC True Corporation Plc, one of Thailand’s strongest and most recognizable brands, is the country’s only fully-integrated telecommunications operator. True’s strength is its ability to offer the convergence benefits of its networks, products and services.

True operates three core businesses: TrueOnline, the largest broadband and fixed-line phone provider in the Bangkok Metropolitan Area, as well as the leading Wi-Fi service provider; TrueMove, Thailand’s third-largest mobile operator, and TrueMove H, which provides nationwide commercial 3G services via HSPA technology on 850 MHz in conjunction with CAT Telecom Public Company Limited (CAT); and TrueVisions, the dominant nationwide pay-TV operator. Other

businesses include TrueMoney which offers payment and booking solutions, and TrueLife which comprises digital content and lifestyle convergence services.

True’s mobile business arm was the first to officially launch the iPhone 3 in Thailand, and has quickly over the past five years become the market leader in smartphones covering many operating systems. This leadership is further strengthened by True’s convergence platform and

by TrueMove H, the group’s flagship carrier and a reseller of CAT, in rolling out 3G+ services on a 3G (850 MHz) network that delivers the fastest speeds and has the largest nationwide coverage across all 77 provinces in Thailand. www.truemove-h.com

NOVEMBER 2012| 227 |2 BE Monthly

project CAT Telecom will establish a combined telephone and internet service within the aforementioned communities. Furthermore, it will promote and support technology development in terms of equipment and telecommunications services to facilitate the telecommunication requirements of children, the elderly and the disabled in society.

Broadband internet is the central theme behind the majority of the company’s on-going and forthcoming investment plans, particular its CAT-TeleHouse plan, fibre to the

x (FTTx) project, Gulf of Thailand submarine cable network project and its IP core network development programme. The CAT-TeleHouse service is designed to support the growth of ICT business in those telecommunication organisations that own massive amounts of data and wish to have access to a reliable data centre system. Said telecommunication or service providers also want to have the ability to link their main network to either national or international gateways.

The FTTx project is a large scale

“CAT Telecom is increasing the capacity of its telephone exchange system to support a growing subscriber base�

CAT Network Showcase 2012, an annual event to show IT & telecoms technology innovation

228 | BE Monthly

CAT Telecom

CAT and Laos service provider, Lao Telecom (LTC), hosted the International Network showcase 2012

telecommunication network development being undertaken by Thailand. For its part, CAT Telecom will build the Lastmile network, an optical fibre network linking providers and clients, giving them access to ultra-high speed broadband internet and other new applications that will be developed in the years ahead. The target areas for this project include Bangkok, Samut Prakan, Nonthaburi and Phathum Thani.

The Gulf of Thailand submarine cable network project meanwhile aims to increase the number of connecting business groups across the Thai Gulf region, providing them with all forms of telecommunication services, from multimedia to broadband internet services.

Utilising DWDM technology, the submarine cable will link Chonburi and Songkhla.

Lastly, CAT Telecom’s IP core network development project has been established to improve the efficiency of the network in order

to support high-speed data transmissions, as well as expanding the network to cover more zones. The 100 Gbps, IP core network project, the largest of its kind in Thailand, will provide increased benefits for residential clients as well as organisations, educational institutes and multinational companies.

Playing a crucial role in the development of Thailand’s telecommunications sector, CAT Telecom is also a provider of 3G mobile services. The company provides a 3G HSPA service, enabling its customers to experience speeds of up to 42 Mbps. This service represents a new milestone for high speed internet that Thai customers can now experience through their mobile phones.

For more information about CAT Telecom visit: www.cattelecom.com

BE Monthly | 229

Setting

the trends Brunei boasts one of the most advanced telecommunication industries in South East Asia and as acting chief executive officer See Wei Kie explains, B-Mobile is a company at the heart of an evolving sector

written by: Will Daynes research by: David Brogan

230 | BE Monthly

B-Mobile

BE Monthly | 231

B-Mobile was the first provider to offer 3G mobile services in Brunei Darussalam

B-Mobile

N

o doubt boosted by its own included bundled video calls, minutes and wealth, the South East Asian SMS.” The bundling of 3G handsets with a nation of Brunei was one of the mobile line was unprecedented in Brunei at first countries within the region the time, making B-Mobile the first company to make a concerted effort to introduce handset and wireless broadband to deliver up-to-date telecommunications in attractive, affordable packages.

In 2008, B-Mobile made further services to its inhabitants, achieving 100 percent digitalisation in 1995. Today telecommunications history with the launch the country ranks highly in terms of of Brunei’s first 3.5G service, thus highlighting both telecom service penetration and the premium technology that is mobile infrastructure facilities. broadband. Better known in Brunei as ZOOM! Driven by the encouragement of the Broadband, the company’s 3.5G service was government, the citizens of Brunei have introduced alongside packages that included come to be recognised as great consumers of free laptops and modems that were provided telecoms services. In 2001, the to those families and country’s mobile penetration individuals who previously figure stood at what was an could not afford access to already healthy 32 percent. mobile broadband. The In the years since this has success of this programme continued to grow strongly led to the roll out of other Brunei achieved 100 and by the beginning of 2012 plans including Zoom Lite percent digitalisation had reached 120 percent. and Zoom Unlimited.

Incorporated in April 2005 “Over the course of our and commercially launched existence,” Wei Kie continues, in September of that year, B-Mobile became “we have strived to introduce innovative, the first provider to offer 3G mobile services in value-added services that complement our Brunei Darussalam. A joint venture between customers’ lifestyles. In doing so we have also Telekom Brunei Berhad (TelBru) and QAF succeeded in helping the telecommunication Comserve, the company was established as industry in Brunei develop, as per the a challenger brand and through its access government’s own aspirations.”

Alongside its extensive portfolio of to resources, expertise, technology and infrastructure it has evolved into a known products and services, B-Mobile has also brand when it comes to telecommunications introduced a range of post-paid and prepaid plans in order to suit the varying needs innovations and discoveries.

“We were the first company of our kind,” of its mobile subscribers. “The work we explains acting chief executive officer have done over the last few years,” Wei Kie See Wei Kie, “to introduce and offer a says, “has set an industry benchmark when comprehensive portfolio of services that it comes to finding creative means to serve

1995

BE Monthly | 233

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B-Mobile

The citizens of Brunei are recognised as great consumers of telecoms services

Brunei’s telecommunication demands.” to maintaining the level of progressiveness B-Mobile puts its success over the years that has long been a staple of this business. down to one core achievement and that is In moving forward, our aspirations revolve its ability to satisfy its customers. “B-Mobile’s around improving the quality of our service primary purpose,” Wei Kie enthuses, “is and continuing to provide the types of to provide its customers with innovative innovative packages and products that services, a range of options and better overall separate us from our competitors.” value. This has been the case since its first Market research has shown that a sizeable day in existence and it remains so to this day.” majority of B-Mobile’s customers are teenagers The biggest challenge to and young adults on pre-paid this now is how B-Mobile is services, users the company able to tap into the shifting would class as being from interests of its customers and the ‘younger generation’. “We how it can continually evolve aim to provide great value as a business in what is an when it comes to our pre-paid The country’s mobile packages,” Wei Kie states, ever-changing industry. “As penetration figure “and often award bonus we always have been,” Wei in 2012 Kie says, “we are committed credits and similar rewards

120%

BE Monthly | 235

to our most active pre-paid users as a way of expressing our thanks.�

With B-Mobile targeting young people and professionals as its two main audience demographics, the company recognises that in a world of rapidly evolving technologies, a plethora of opportunities lay ahead for a service provider such as itself. By maintaining a forward-thinking approach to its operations, B-Mobile aims to retain

and attract customers in equal measure by offering products that capitalise on the themes of innovation, choice and delivering new experiences.

As a way of growing the business further, B-Mobile has made great strides in recent times to provide its customers with the means to make economical international calls. This strategy first arose when the company identified that the growing number

“We are committed to maintaining the level of progressiveness that has long been a staple of this business�

Young people and professionals are the main audience demographic

236 | BE Monthly

B-Mobile

B-Mobile is focused on creating a dynamic brand identity

of foreign workers in Brunei was itself creating a demand for corporate entities to communicate increasingly with their international counterparts.

“The vast majority of budget calls,” Wei Kie says, “are currently made through a toll free number and often require access to pay phones or landlines. What we at B-Mobile do is offer cheap international calls through a voice over internet protocol address. This method provides users with the convenience of being able to dial their intended international number from their mobile phone from anywhere, at any time.”

On Sunday 4th November 2012, B-Mobile

officially opened its new headquarters in the city of Beribi. This event marks something of a new beginning for the company, with the move being heralded as both a symbolic and strategic undertaking at a time when the focus of B-Mobile now turns to creating a dynamic brand identity, while at the same time gaining more visibility in terms of customer and corporate outreach.

For more information about B-Mobile visit: www.bmobile.com.bn

BE Monthly | 237

Business Connexion Group

A powerhouse

of business solutions Renowned for the provision of high quality, high performance business technology solutions, BCX aims to earn 30 percent of its revenue outside South Africa by 2016

written by: Martin Ashcroft research by: Paul Bradley

BE Monthly | 239

F

ounded in 1979, Business range of IT solutions and services to meet Connexion Group is Africa’s leading all their information and communication black-owned ICT services provider. technology needs, whatever their scale and Renowned for the provision of scope. Its credentials are second to none high quality, high performance across a huge range of services. BCX provides solutions, and for its trademarked slogan solutions to all Tier 1 retailers in South Africa, “connective intelligence”, Business Connexion for example, and generates over 30 percent is a powerhouse of business solutions based on of South Africa’s payslips with its payroll information and communications technology, solution. It has also designed, developed and running mission-critical ICT systems and implemented the South African government’s managing products and services for large payroll system, Persal. corporations, public sector clients and SMEs Business Connexion’s ability to deliver a world-class service owes much to the strong in South Africa and beyond.

The company has more data centre capacity relationships it has developed with many of the than any other service world’s leading ICT suppliers. provider in South Africa, and Cisco, for instance, awarded has a network of business BCX the Cisco Services Partner of the Year and Cisco and delivery units, with a Managed Services Partner of dozen offices across South Africa, and others in Kenya, the Year in 2011 for Africa Business Connexion Zambia, Tanzania, Namibia, and The Middle East, and Group founded Botswana, Nigeria and the company is also certified Mozambique. Further afield,

by SAP as one of only three it also has an international providers in South Africa for presence in London, England and in Dubai SAP Hosting Services and the only provider in the United Arab Emirates. of SAP Cloud Services in South Africa. It also The Business Connexion Services Division has key vendor relationships with Microsoft, is the leading infrastructure and professional HP, IBM, VMware, Citrix, BlackBerry, Oracle services provider in South Africa, providing and Adobe, among others. services to the retail, financial, industrial and At the forefront of cloud computing in commercial sectors, mining and resources Africa, Business Connexion offers the full and petrochemicals as well as the public range of solutions, including Infrastructure sector. The Services Division operates and as a Service, Platform as a Service and manages five major owned or leased data Software as a Service for messaging, centres and 80 client owned data centres payroll, recruitment, point of sale, and or server rooms, all of which are managed talent management. The Business Connexion according to industry best practices. data centre is the benchmark for hosted The company offers clients a comprehensive information systems and information. Its

1979

240 | BE Monthly

Business Connexion Group

Business Connexion has built strong relationships with many of the world’s leading ICT companies

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Business Connexion Group

Business Connexion Group is Africa’s leading black-owned ICT services provider

operational expertise, management skills and web content filtering, proxy management, experience in customer services enables it to firewall management, intrusion prevention management, vulnerability management, deliver cloud services to global clients.

Business Connexion also has a and remote access service. The company also comprehensive suite of information security develops and supplies custom cryptographic solutions and services, using its membership products and solutions to protect information of the Information Security Forum to classified as highly confidential, for clients draw upon a rich library of including government entities international good practice. in Africa, the Middle East, Customers can benefit Asia and South America.

Business continuity is from Business Connexions’ another string in Business managed security services, including endpoint protection Connexions’ bow, with ICT Target for earnings management, mobile device service continuity processes, from outside South management, anti-spam alternate site recovery Africa by 2016 and e-mail content filtering, hosting and continuity

30%

BE Monthly | 243

management and maintenance. It also has education programs to train clients to manage a crisis using appropriate processes, procedures and plans.

Many businesses now see energy use as a critical issue, from an environmental angle as well as financial. Readers will not be surprised to find that Business Connexions operates in this field, too, offering energy audits, assessments, financing and commissioning. BCX is in fact the only current ESKOM-approved JSE listed ICT energy services company.

Businesses wishing to print documents without the capital cost and administration involved in owning their own printers can take advantage of Business Connexions’ managed print solutions (MPS). Using Canon equipment, BCX offers low cost, high efficiency document production facilities for customers on a “pay-per-page” basis, delivering convenient, reliable printing and other related services.

Fittingly for a company involved in rapidly changing technology, BCX focuses on change in its corporate social responsibility approach. It describes its CSR mission as being “to empower young people to be able to change their lives as well as those of their communities through technology. We see our

responsibility towards the communities where we operate as a business imperative and this forms part of the overall sustainability requirements for the organisation.” The company engages in philanthropic donations, as well as corporate social investment using financial and other resources to address social development needs.

In addition there are socio-economic development (SED) initiatives which aim

“We see our responsibility towards the communities where we operate as a business imperative” 244 | BE Monthly

Business Connexion Group

BCG uses the trademarked slogan “connective intelligence”

to create sustainable access to the economy for previously disadvantaged individuals, focusing on education and skills programmes and a school development programme.

Under its flagship initiative “letmelearn”, in 2011 the majority of Business Connexion’s CSR funding was allocated to the implementation of IT laboratories in schools, focusing mainly on rural schools in underprivileged communities.

The vast majority of schools in South Africa have no access to computers or any other form of information technology.

Business Connexion’s investment in these IT laboratories goes beyond providing infrastructure; it also includes a two-year commitment to partner with the schools to ensure full understanding of the technology,

plus the development of metrics for the ongoing sustainability of the investment when Business Connexion reduces its involvement with the school.

With a population of one billion people in 54 countries, the African continent represents a key growth opportunity for Business Connexions, and its International Division is responsible for capturing that growth on the continent and beyond. The Group’s key growth strategy is for 30 percent of earnings to come from outside South Africa by 2016. I wouldn’t bet against it!

For more information about Business Connexion Group visit: www.bcx.co.za

BE Monthly | 245

A privilege

to serve

246 | BE Monthly

Yilport Container Terminal

Chief executive officer Sean Pierce discusses the rapid growth of Yilport Container Terminal and reveals that there is much more to come from the business in the years ahead

written by: Will Daynes research by: Abi Abagun BE Monthly | 247

Yilport Container Terminal

D

Yilport is considered to be the most modern container terminal in Turkey

efined by the International Monetary Fund as an emerging market economy, Turkey is recognised as one of the world’s newly industrialised countries.

It is also known to possess one of the highest volumes of cargo transit activity in the region. This growth in containerisation has significantly raised the country’s profile as a hub for international trade.

Located approximately 40 kilometres from the thriving city of Istanbul, Kocaeli lies at the centre of one of the most developed industrial areas in the country. It is here that one will find Yilport Container Terminal.

Established in 2005 as a subsidiary of Yildirim Holding, Yilport today serves its customers from three terminals, each of which handles different cargo types, these being containers, break bulk and liquids.

Considered to be the most modern container terminal in Turkey, Yilport possesses more than 500,000 TEU of container storage capacity, four million tonnes of general cargo handling capacity and 120,000 cubic metres of tank storage.

“The birth of Yilport,” explains chief executive officer Sean Pierce, “was very much a product of Yildirim Holding’s desire to diversify itself and enter into the ports and logistics sector.” Driven by the vision of Robert Yildirim, Yilport has become the recipient of a $500 million, three-stage investment programme aimed at creating an internationally known, reputable, multipurpose container terminal.

Among the major trends driving the business forward today is investment in new

BE Monthly | 249

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Yilport Container Terminal technologies, the integrating of facilities and the centralisation of operations. “One of our key aims,” Pierce states, “is that we want to leverage new technologies so that we are able to provide a range of services from our home terminal to additional facilities and terminals the group adds to its portfolio in the future.”

Rather than approach the issue of how it can provide said services to future acquisitions when the time comes, it is the company’s goal to actually start out from a centralised position. “We have invested a considerable amount of capital into our current infrastructure,” Pierce continues, “with the thought process being that we are going to expand in the years to come.

This approach has seen us start to examine the possibility of providing things like centralised planning and berth management, centralised ERP procurement and additional administrative and accounting services.”

It is clear from the work being undertaken to develop Yilport, both as a terminal and a wider business, that it is very much aiming to provide its customers with complete solutions.

A perfect example of the efforts being made to provide this can be seen in the way Yilport is supporting one client that is in the process of transporting high volumes of steel products.

“This customer,” Pierce says, “has its

Yilport aims to provide its customers with complete solutions

“Yilport is developing on a number of fronts, one of which revolves around arguably its greatest asset, its people” BE Monthly | 251

steel products loaded onto a vessel that is presently making its way across the Black Sea to us here at the terminal. What we will do once it arrives is take said cargo, remove it from the vessel and discharge it directly into containers that will then be stored at the terminal itself, before eventually being loaded onto the container berth and placed on an outbound vessel. So what we are effectively doing is eliminating the work of hundreds of trucks traveling hundreds of kilometres around Turkey and neighbouring countries by providing a more efficient port-based service. This also represents a more environmentally friendly solution and one that is extremely cost effective and allows us to leverage the full capabilities of a multi-purpose terminal.”

At present, Yilport is developing on a number of fronts, one of which revolves around arguably its greatest asset, its people.

“We have an intense focus right now on training,” Pierce enthuses, “and that involves everything from operations training, safety training and even the language training. We hold language courses for certain supervision and management personnel who are provided with the opportunity to develop as individuals and take on larger roles as the company expands domestically and internationally.”

Recent developments have seen the company open its E5 Terminal, a full service facility located seven kilometres away from Yilport Gebze, and the acquisition of an additional covered warehouse at the port that will accommodate both bonded and non-bonded transfer and storage operations.

In addition to these events, and in support of Yilport Gebze and the newly acquired

“we have been focused on building the foundations of a successful long-term business on a combination of people, processes and technology” 252 | BE Monthly

Yilport Container Terminal

Yilport plans to expand into other parts of the world

Yilport Rota and Gemport, the company has announced that it will introduce Eti Logistik to the region in order to provide integrated port, warehouse and trucking services to all its customers.

Despite the significant progress that Yilport has made in under a decade, Pierce is keen to highlight that this is a company that is just getting started. “To date we have been focused on building the foundations of a successful long-term business on a combination of people, processes and technology. With this now established we need to reach out to all manner of potential customers in the region in order to increase our own visibility.”

As well as further developing its home terminal, the company is also conscious of

the opportunities that exist in other parts of the world, particularly relating to existing terminals and brownfield projects in places like Latin America and Africa. “In the future,” Pierce concludes, “I believe you will witness a scenario where we open up terminals in such areas and actually operate those facilities internationally, utilising the people we are training today. Wherever our activities take place, we will strive to carry with us our motto, ‘Privilege Becomes Standard”, and apply it to all that we do.”

For more information about Yilport Container Terminal visit: www.eng.yilport.com

BE Monthly | 253

A greenf

The New Port Project Stee with the design and deve the requirements of the Q

written by: Ma research by

254 | BE Monthly

New Port Project, Qatar

field port

ering Committee is tasked elopment of a port to meet Qatar National Vision 2030

artin Ashcroft y: Jon Bradley

BE Monthly | 255

New Port Project

New Port Project, Qatar

O

n 19 June 2007 His Highness Sheikh Hamad Bin Khalifa Al Thani, Emir of the State of Qatar, issued a decree to instigate one of the world’s largest greenfield port developments.

Strategically located south of Doha, the QAR 27 billion (US$7.4 billion) megaproject includes a new port, a new base for the Qatar Emiri Naval Forces and the Qatar Economic Zone 3, on a 26.5 square kilometre footprint.

The existing port had been operating above capacity for some time and its location did not fit with the long-term development plans of the State. The import of raw materials and goods required for the expansion plans envisaged in the Qatar National Vision 2030, along with the hosting of the FIFA World Cup in 2022, underscored the need for a new advanced commercial port facility.

In 2004 the State of Qatar commissioned a feasibility study to explore the relocation of the existing port. Seven sites were investigated prior to the current location being chosen. Work on the New Port Project site commenced in late 2008.

The new port will include world-class cargo and container terminals, cargo handling systems and in due course rail facilities that will link the port to the GCC region. Developed as a modern, efficient and cost competitive commercial port and characterized by state-of-theart technologies, high quality service and minimized vessel delays, the new port is envisioned to become a preferred

BE Monthly | 257

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New Port Project, Qatar de st i nat ion for t he international shipping and Al Mustafawi Trading & Engineering Company (MTEC – maritime industry.

MTC Surveys and MTEC Coastal Hydraulics) considers The New Port Project its association with NPP as fulfilling its national duty in Steering Committee was contributing towards the national vision 2030. MTEC has established in June 2007 also contributed significantly to providing specialised and immediately began to services in land and marine surveys to local industry in both government and private sectors. MTEC has select a team of technically the required infrastructure, technical manpower and qualified industry and specialised equipment, including a dedicated survey vessel community leaders for its for providing total survey solutions, as well as being an two guiding committees, approved local survey company by Survey Department & the Tender Committee and Ministry of Municipal Affairs & Agricultural of Qatar the Technical Committee. www.mustafawiqatar.com Supported by a dedicated project team, the State’s vision is being brought to fruition by hundreds of individuals representing contractors and technical experts who are tasked with programme management, engineering design and environmental works.

The project commenced in 2008 with the award of the first contracts to the programme management consultant (AECOM) and the engineering design consultant (WorleyParsons).

The environmental consultant contract was awarded to COWI in early 2009.

The first phase of the project is expected to be completed in 2016, and future phases will become operational as the need arises.

Forecasts suggest that Qatar’s economy will

Al Mustafawi Trading & Engineering Company

6 million Expected container throughput by 2030 First quay wall block installed

BE Monthly | 259

continue growing at world-leading rates for the foreseeable future and the expansion of the State’s transportation facilities will support and fuel this growth. Container throughput, which in 2010 stood at approximately 350,000 TEU, is expected to increase to 2 million TEU by 2016, 4 million TEU by 2020 and 6 million TEU by 2030.

Once operational the new port will offer a comprehensive range of services for both shipping lines and cargo owners and investment in the required capital equipment and technology will be made to ensure client needs are met. ePM has been selected as the programme management information system (PMIS) and Info Exchange, a web-based platform, will be used to undertake and record SH&E inspections and observations of contractor performance.

From infrastructure such as piers and warehouses to equipment such as cranes, careful consideration has been given to fleet expansion and to the capital equipment requirements necessary to build the new port and then to ensure the requirements for modern port operations are in place.

For phase I of the port, eight ship-toshore cranes will be delivered before the commencement of commercial operations

in February 2016, and another four will be procured within 24 months of the first order. Twenty six rubber-tyred gantry (RTG) cranes will also be in place by February 2016, with another 12 to follow.

Contracts are divided into four types: infrastructure, marine, equipment and buildings. Local Qatari companies rated

“Forecasts suggest that Qatar’s economy will continue growing at world-leading rates for the foreseeable future” 260 | BE Monthly

New Port Project, Qatar

Precast yard

by the central tendering The new port will create significant legacy benefits committee as ‘Class A’ in terms of developing the contractors are eligible to country’s human capital tender for infrastructure by facilitating the creation and buildings contracts.

The first phase of the For marine and equipment of numerous sustainable project is expected to cont racts, loca l and jobs, including a number of be completed international companies are senior positions designated eligible to participate in the for Qatari nationals. tendering exercise. Local Innovation and companies can also participate in a joint continuous improvement, from increased venture, provided the Qatari company has railroad connectivity to streamlined at least 51 percent of the capital of the JV. policies and procedures related to security For a local company to qualify, however, it and customs, will be a fundamental aspect must have acceptable cash flow, experience, of the new port’s operations. World class equipment, skills, staff and commitment. systems, technologies and personnel will

2016

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Container terminal gantry crane

“Local Qatari companies rated as ‘Class A’ contractors are eligible to tender for infrastructure and buildings contracts” help achieve greater operations and cost efficiencies. The overarching objectives of meeting the needs of customers, growing the State’s economy and improving the region’s competitiveness as a trade hub are key aspects of master planning for the new port. Additionally, planning for continuous improvement will focus on minimizing

262 | BE Monthly

adverse environmental impacts, economic diversification, sustainability and corporate social responsibility.

Sustainability is one of the cornerstones of master planning for the port. Working with a team of expert consultants has allowed the leadership of the New Port Project to ensure planning is comprehensive and that

New Port Project, Qatar

Chairman

the correct resources are employed at the ‘right’ time. The concept of sustainability, and specifically incorporating sustainability into the design process, is a key component of the work tasked to the engineering design consultant.

The project is also using LEED (Leadership in Energy and Environmental Design) concepts for the design, construction and eventual operation of buildings and master planning has utilized many ‘green elements,’ including a focus on added walkways in order to make the facilities more pedestrian friendly and using ‘greywater’ (wastewater generated from domestic uses) for toilet flushing and landscaping in order to reduce the demand

Mangroves

for more costly high-quality potable water.

Attracting and retaining highly skilled committee members has been essential to realising the goals and objectives established for the New Port Project. The work of the project’s committees is a vital element in achieving the ambitious expansion plans envisaged in the Qatar National Vision 2030. In turn, committee members are rewarded by the experience of being part of this significant project.

For more information about New Port Project, Qatar visit: www.npp.com.qa

BE Monthly | 263

Inspiring national prid By embracing change and innovation, PetroSA is opening up new horizons for South Africa’s energy sector

written by: Will Daynes research by: Robert Hodgson

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PetroSA

de

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PetroSA

A

s the leading economic power in Africa, it’s no surprise that South Africa is a key player in the African oil industry.

Liquid fuels are an important component of its energy sector, with the 2012 BP Statistical Energy Survey revealing that, in 2011, South Africa consumed an average of 547,250 barrels of oil per day.

The history of the oil industry in South Africa can be traced back to 1884, when the first oil company was established in Cape Town with the purpose of importing refined products.

In the years since, the industry has evolved greatly to the point where today the country is responsible for processing approximately 20 million tonnes of crude oil per annum.

Formed in 2002, upon the merger of Soekor E and P Limited, Mossgas Limited and parts of the Strategic Fuel Fund, the Petroleum Oil and Gas Corporation of South Africa (PetroSA) is the national oil company. A subsidiary of the state-owned Central Energy Fund, the company holds various assets that span the petroleum value chain.

In addition to operating the FA-EM, South Coast gas fields, and the Oribi and Oryx oil fields, PetroSA is also responsible for the exploration and production of oil and natural gas from the ORCA oil rig and the production of synthetic fuels from offshore gas at what is one of the world’s largest gas-to-liquid (GTL) refineries in Mossel Bay. PetroSA’s GTL refinery produces ultraclean, low-sulphur, low-aromatic synthetic fuels and other high-value products that are converted from natural methane-rich gas.

This gas then condensates via the use of the

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PETRO SA PetroSA GIJIMA Gijima is a proudly empowered South African Information Technology (IT) company listed on the JSE. It has gained recognition as the complete IT partner to a considerable client base of large technology users in both the public and private sectors. As one of the leading IT companies in southern Africa its intellectual capacity, business model and extended geographic footprint is unparalleled in the local market and provides clients with sophisticated and diverse service delivery options in the infrastructure, solutions, system integration and networking arenas.

The ethos by which it operates is to constantly seek to set the pace when it comes to industry thought leadership. Gijima’s eagerness to learn and commitment to make a difference allows its clients to unequivocally regard them as their partner of choice. Their innovative and entrepreneurial abilities enable them to consistently develop solutions to business problems – shifting boundaries that have established them as a leader in their chosen markets.

At the recent Microsoft Partner Network awards, Gijima walked away with no fewer than six top achiever awards in separate categories.

These awards are a testament to the skill and vision of their people in customising various vendor technologies to the benefit of their clients.

These awards coupled with the release of mobileIT, Gijima’s homegrown integrated all-in-one platform for the development, implementation and full life cycle management of mobile applications, mobile users and mobile devices, positions them as the preferred partner to their clients.

Gijima strives to be a magnet for talent, enthusiastic, loyal and energised staff; always developing, always growing, reaping the rewards

of the company they helped create. Gijima strives to deliver a blend of sophistication, passion and a graciousness of spirit for one another, and for PetroSA in support of their vision to become a fully integrated, commercially competitive national oil company, supplying at least 25 percent of South Africa’s liquid fuel needs by 2020 - a legacy that they can both be proud of. info@gijima.com www.gijima.com

NOVEMBER |2 BE Monthly2012| 269

Steeltest was formed in 1989 and is involved exclusively in hi tech non-destructive testing.

The company is based in South Africa, but operates throughout Africa, The Middle East and South-East Asia.With the introduction of innovative technology and the continuous improvement of service delivery and our policy on training our aim is to become the premier supplier of specialised non- destructive testing globally.

TUBE INSPECTION of Ferrous and Non-Ferrous tubing in heat exchangers using the following methods: Eddy Current, Remote Field, IRIS, Laser Internal inspection & Visual.

EMAT FOR PIPELINES A very reliable method for: 100% rapid scanning of pipelines (up to 1km / day). Highly sensitive system particularly suited for evaluating corrosion under supports.

Scans in both longitudinal & circumferential directions.

SPECIALIZED REQUIERMENTS FOR ECONOMIZERS & BOILERS using IRIS to produce visual computerized 3D models of your unit, for more informative representation of inspection data.

Can be cross cut in all axes, printed & with data filters customizable to clients requierments.

GUIDED WAVE PIPE SCREENING also known as Long Range Ultrasonic Testing. The Guided Wave technology screens 100% of the volume of the piping inspected for metal loss features such as corrosion and erosion at distances up to 100m in either direction from a single location. In the case of insulated lines only 300mm of insulation needs to be removed to inspect long lengths of pipe. Can be used on pipe racks, insulated pipe, road crossings, submerged pipes, buried pipes & restricted access pipelines.

TUBE MICRO BLASTING This is a particularly effective means of cleaning tubes and is used especially in the case of IRIS and laser inspections where the tubes need to be cleaned down to bare metal.

EMAT (Electomagnetic Acoustic Testing) For Boiler Walls provides rapid screening of ferrous tubing (up to 1km / 12 hour shift.) The temateÂŽ TG-IS(B) is designed for detecting wall loss, hydrogen damage and caustic gauging in boiler tubes.

Ultrasonic EMAT technique provides accurate thickness readings with minimum preparation of tube surface.

HANDY SCAN By combining state of the art laser scanner technology with existing NDT techniques it is now possible to provide accurate and detailed 3D images of equipment using advanced 3D modelling software.

Features such as pitting and corrosion can be accurately mapped, analysed and saved for comparison during follow-up inspections. Applications include wear of moving components, tip errosion of turbine blades, external corrosion on pipelines etc.

STEELTEST INSPECTION SPECIALISTS – OUR PREFORMANCE IS YOUR STRENGTH Phone: +27 16 422 4930 Fax: +27 16 422 4933 Web: www.steeltest.co.za Email: Steeltest@cyberserv.co.za

PETRO SA PetroSA

STEEL TEST

TUBE INSPECTION

PIPELINE INSPECTION

TANK INSPECTION

3D CORROSION

TUBE CLEANING

POSITIVE MATERIAL IDENTIFICATION

Based in South Africa but operating throughout Africa, the Middle East and South-East Asia, Steel Test provides its customers with global expertise combined with localised personal service.

Steel Test has a dedicated professional staff of 74 people committed to satisfying the demanding requirements of its diverse client base. Our clients are largely in oil, gas and power generation but we also carry out inspections in the sugar, pulp and paper, chemical and mining industries. With an initial emphasis on tube inspection, more recently we have extended our services to both tanks and pipelines.

Using a combination of cutting edge technology, Steel Test offers a number of inspection techniques, including pipe, tube and tank inspections, shut down based inspections, in-service evaluation, acid management and condition assessment.

Steel Test prides itself on its technical capabilities, and aspires to become the preferred specialised global non-destructive testing company. www.steeltest.co.za

NOVEMBER 2012| 271 |2 BE Monthly

OTI EasyFuel Homebase Solution The OTI EasyFuel Homebase Solution is a complete automated refuelling system that controls and manages the dispensing of fuel at homebase sites. Technology and systems that have been available to fully fledged service stations and fuelling points is now available to homebase depots - along with our commitment to ensure you derive the full benefits and savings the solution has to offer. Reduce operating costs, fraud and theft with this affordable offer from OTI Africa !

OTI Africa is pleased to announce that our complete EasyFuel Homebase Solution has been commissioned for PetroSA at their strategic refinery in Mossel Bay and OTI Africa is providing a wide range of monitoring, reporting and account management services to PetroSA. www.otiglobal.com

Charlotte Hambly-Nuss or Mark Levin can be contacted for more information on +27 21 526 9100 or info@oti-africa.co.za

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PetroSA

heavily in new processes refinery’s unique GTL Fischer TrÜpsch technology. and technologies, signing PetroSA is recognised in a sponsorship agreement the industry as a pioneer when in 2010 with the University it comes to petrochemical of the Western Cape research and development.

(UWC). This agreement With the support of external led to the establishment Oil consumed by South partners from around the of the PetroSA Synthetic Africa per day in 2011 world, its specialists have Fuels Research Centre at built a reputation based on the UWC. It also resulted their innovative thinking, technical expertise in the company relocating its conversion and proven ability to execute development of olefins to distillates (COD) pilot plant projects. Upon its opening in 1992, the Mossel from Mossel Bay to the university where it Bay refinery was the first in the world to use stands today in a custom-built laboratory.

COD technology is beginning to attract GTL technology on a commercial scale and since then, only seven other GTL refineries significant attention within the industry for its have been commissioned in the world. ability to produce some of the cleanest fuels The company continues to invest available, using an environmentally friendly

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process. As the profile of this technology rises, so too does that of PetroSA by being the operator of the only COD plant in the world.

The actual COD process involves synthesising petrol and diesel by adding short-chain, unsaturated carbons in order to form longer chain hydrocarbons in the petrol and diesel boiling range. This is carried out at relatively high temperatures and pressures over a catalyst.

Today, COD is recognised as being a rapidly emerging fuel technology of the future. This comes at a time during which rising oil prices are intensifying the demand for cheaper raw materials and more efficient, cost-effective processes. At the same time, global trends show an accelerating demand for high quality diesel and diesel produced using COD technology is regarded as being of exceptional quality.

Among its many important strengths, COD produces relatively pure fuels that are low in sulphur and aromatics, while at the same time meeting the most stringent of international specifications. These fuels possess much better exhaust emission properties than conventionally produced equivalents and this makes them particularly suitable as blend materials for conventional and bioderived fuels. Furthermore, COD fuels have excellent cold flow properties, making them

highly effective when used in countries that experience cold winters.

With the future in mind, PetroSA has reached an agreement with the UWC that will allow it to achieve two key objectives.

The first is to further develop COD and its associated technologies, while the second is to help develop South Africa’s human capital.

Among the core strategic functions of the company are to make it possible for

“PetroSA’s GTL refinery produces ultra-clean, high-value products that are converted from natural methane-rich gas” 274 | BE Monthly

PetroSA

the government of South to achieve this. These include Africa to improve the supply sustaining the Mossel Bay of fuel, oil and gas to the GTL refinery as a profitable country, mitigate the impact operation and using it as of oil price variations, drive a platform to sustain the PetroSA established transformation initiatives, company. In addition, the manage the country’s company will continue to ensure all of its operations and contingency crude reserves and strategic petroleum assets, and access activities are carried out in line with the highest upstream petroleum assets. health, safety, quality and environmental In addition to these functions, the company standards as it grows its business into a also boasts a strategic objective it calls Our significant industry player that can guarantee Vision 2020. The ultimate aim of this is to the security of South Africa’s energy supply. become a fully integrated, commercially competitive national oil company, supplying For more information about at least 25 percent of South Africa’s liquid PetroSA visit: fuel needs by 2020. www.petrosa.co.za There are several ways that PetroSA plans

2002

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Thesky’s thelimit Chief executive officer Tony Sofianos explains how, with the oil and gas industry stretching across the globe more than ever before, companies like Wings Travel Management have never been more important to their customers

written by: Will Daynes research by: Marcus Lewis 276 | BE Monthly

Wings Travel Management

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Wings has expanded around the world

Wings Travel Management

O

ver the past two decades, the oil and gas industry has taken off at an incredible rate in many developing markets, helping establish nations such as Brazil, China and South Africa as modern centres of economic prosperity. The evolution has also allowed those companies that are best positioned to service these markets to grow and, more importantly, overcome many of the challenges posed in recent years by the financial crisis.

Described as a “high tech, high touch” organisation, Wings Travel Management is a global travel management company (TMC) specialising in offshore, marine and corporate travel. Founded in 1992, and employing approximately 300 people in four regional hubs, Wings possesses an advanced and unique quality management system that is an integral part of its operating procedures.

Having just celebrated its 20th anniversary, the company has witnessed first-hand how the market has adapted and changed in that time.

“There is no doubt,” explains chief executive officer Tony Sofianos, “that the last few years have been incredibly tough. Notwithstanding the economic environment, we have managed to position ourselves optimally so we can maximise the opportunities that exist as well as be better positioned to expand as economic conditions improve. In fact through the acquisition of a number of businesses around the globe in recent years and strong sustainable organic growth, we have been able to achieve strong double digit growth numbers throughout this recession.”

Another way in which the company has

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weathered the economic storm is by actively taking an aggressive approach toward managing its costs, while retaining its commitment to investing in new technologies and its resources. “Being able to manage our costs effectively has been of huge benefit to the business,” Sofianos continues, “but so too has our ability to identify new revenue streams and increase our overall productivity.”

Said revenue streams are increasingly coming from those aforementioned developing economies. “Two of the fastestgrowing markets in the oil and gas sector are Brazil and the continent of Africa, and having a strong presence in both has undoubtedly strengthened Wings as leaders in the energy sector,” Sofianos states. “This is particularly true when it comes to Brazil, which has come along by leaps and bounds over the past several years. The oil and gas industry in that part of the world is positively booming today, and we are extremely excited to be right at the heart of that.”

In pursuit of further growth opportunities, Wings continues to scout for potential acquisitions and engage with different players in different parts of the world.

Notwithstanding the fact that Wings corporate headquarters migrated to the UK a number of years back, Wings is still committed to, and

recognises the importance of continuing to invest in, South Africa and Africa as a whole, where it was originally founded 20 years ago.

This recognition is exemplified by the fact that Wings can today be found in esteemed company within the membership ranks of the

“Wings possesses an advanced and unique quality management system that is an integral part of its operating procedures” 280 | BE Monthly

Wings Travel Management

Wings is a “high tech, high touch” organisation

South African Oil and Gas opportunities with other players in the sector.”

Association (SAOGA). “We are very unique, in that while Toward the end of SAOGA is primarily made up 2011, Deloitte carried out of industry operators and a comprehensive business The year the company service providers, it is rare travel survey to calculate was founded to find a third-party service what the percentage of business travellers would be provider like us within such an association,” Sofianos in 2012. The results were says. “Being a member of SAOGA gives eye opening, with 85 percent of those who us a level of credibility in this region that travelled in 2011 saying they expected to is not easy to obtain, due to the selective embark on as many journeys in 2012, and nature of its membership structure, and, of 27 percent of 18 to 44-year-olds surveyed course, it also provides excellent networking intending to travel more. What these figures

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highlighted was an ever-increasing need for business travel companies, and this remains the case as we head into 2013.

“I think that while the global financial climate will remain challenging in the shortto-medium term, thus meaning companies will continue to drive down costs and margins, there are still going to be plenty of opportunities for companies like ours, specifically in the energy sector. This will

particularly be the case as the Asia-Pacific region comes online for Wings in the near future,” Sofianos says.

In terms of Wings’ brand and value proposition, its business is to provide services to companies where business travel is a crucial part of their business model, like the oil and gas industry, which accounts for over 50 percent of Wings’ volumes. “As is most often the case in the oil and gas

“Two of the fastest-growing markets in the oil & gas sector are Brazil and Africa. having a strong presence in both has undoubtedly strengthened Wings”

Business travel is a crucial part of the business model in the energy industry

282 | BE Monthly

Wings Travel Management

Travellers expect a consistent, predictable service delivery

industry,” Sofianos enthuses, “very little of what takes place today such as operations in the field, can be replicated by video conference and other technology. While some small elements of technology are beginning to creep into the industry, the movement of people on and off oil rigs, or between key assets, is not something that is going to change anytime soon, and that is what makes a company like Wings such an important part of our customers’ business.”

While turbulent financial conditions continue to exist, Sofianos is very clear about what Wings needs to do in order to stay the course it is on. “What is important is being able to maintain a stable growth curve, by firstly retaining our customers and

also acquiring new strategic ones, and never taking your eye off what is important to our travellers—consistent predictable service delivery, irrespective of the environment.

It is also vital that we continue to be leaders and experts when it comes to entering and prospering in emerging and tough markets such as Brazil, the Middle East, East and West Africa. It is in these locations that the industry will grow at its most significant rates and we will remain well positioned to capitalise on this.”

For more information about Wings Travel Management visit: www.wings.travel

BE Monthly | 283

284 | BE Monthly

The Red Meat Abattoir Association

Meat standards A membership organization for the abattoir industry in South Africa, dedicated to best practice in the interests of consumer safety as well as the profitability of its members

written by: Martin Ashcroft research by: Paul Bradley

BE Monthly | 285

The Association aims to improve hygienic practices

The Red Meat Abattoir Association

T

he conversion of livestock into This led to a need for current up to date safe and wholesome meat in price information, so the RMAA introduced South Africa is a complex process an information system containing current that is regulated mainly by the and historical data for planning and Meat Safety Act, 2000. Anyone development purposes, the prime objective who is squeamish can switch off now, being to provide accurate and valid because the process is known in the industry information for the benefit of the South as slaughtering and takes place in an abattoir, African abattoir industry. To ensure a fair an industrial facility designed specifically for representation of the information the RMAA the purpose of killing animals. The structural therefore requires the abattoir owner to requirements of abattoirs in South Africa are commit to submitting its price information addressed in the Act according to their status on a weekly basis so that a weekly report as high, low or rural throughput facilities. can be released to all members.

If you are still with me, there are currently The Association is also an accredited around 500 abattoirs in training provider in the industry and during the past South Africa slaughtering 2.3 million cattle, 2.4 million year has provided training pigs and 5.5 million sheep to 3736 abattoir workers in on an annual basis, so it’s a fields ranging from basic major industry, and one that slaughter skills to food safety The Red Meat Abattoir requires careful inspection, management programmes.

Association established The RMAA assists abattoirs monitoring and training to increase profits, safety and to ensure compliance with health, safety and other relevant regulations. quality, and minimise losses by evaluation The Red Meat Abattoir Association (RMAA) and identification of non-compliances, was established in 1991 as an independent corrective training and recommendations on membership-based organization to promote operational processes. meat safety and to maintain standards in The objective of the industry is for animals the abattoir industry. Abattoirs are required to be converted into edible products by to undergo independent meat inspection, slaughtering them in a humane manner and and this is one of the services offered by the by processing the carcass and organs in a Association, which has over 180 members hygienic and efficient way. The slaughter currently, although it continues to recruit new process includes de-hiding and evisceration, members among the smaller abattoir sector. so with cattle and sheep it involves skinning The abattoir industry once comprised procedures, and in the case of pigs, de-hairing. mainly large high throughput abattoirs, but Slaughter technique training is provided the number of smaller operations has risen to member abattoirs according to a monthly dramatically since deregulation in 1994. programme. The abattoir’s slaughter practices

1991

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A b of M at the em to R b ir ed er As M so e cia at tio n

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The Red Meat Abattoir Association

By following current best practice, abattoirs can produce high quality safe meat

are evaluated and compared with the standard recorded for each worker at their respective best practice slaughter procedures, as regularly work station and a routine slaughter training updated by the Association. Deviations are report is forwarded to management after recorded and corrective training is provided completion of the training. by experienced training teams.

One of the RMAA’s main messages is The Association’s main aims are to improve that continuous washing and sterilising of hygienic practices, reduce contamination, equipment during the slaughter process is reduce damage to the carcass, skin and essential to avoid contamination of the meat. organs, enhance ergonomics and speed of By following current best practice slaughter processing, and improve the techniques, abattoirs can use of personnel. Training produce high quality safe is always conducted by first meat, which is the main of objective of the Association. demonstrating the correct and/or best procedure, then An RMAA audit will evaluating the operator examine the effectiveness conducting the procedure and of line layout, including the Abattoir workers conducting a re-demonstration time taken at each work trained last year if necessary. Competency is station and the workload

3736

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of each slaughter operator, to ensure that the workload is spread evenly and that the line runs at an even speed without holdups. Bottleneck situations lead to loss of production time, exhaustion of some workers and ineffective use of others. If this is found to be the case, redistribution of functions on the line are suggested to ensure the optimal use of each worker.

Carcass yield is another important factor.

Inhumane animal handling can lead to

unnecessary and incorrect trimming, and incorrect slaughter techniques and theft are also reasons for loss of carcass weight. An investigation into the live weight compared to warm weight is made to determine if unnecessary weight is lost. If the investigation indicates that the yield is too low a further evaluation is made to determine where unnecessary weight loss occurs, and corrective actions can then be implemented.

Hides and skins lose value when they are

“The abattoir’s slaughter practices are evaluated and compared with the standard best practice slaughter procedures�

290 | BE Monthly

The Red Meat Abattoir Association

Training is always conducted by first demonstrating the correct procedure

damaged, too. Often damage occurs due to incorrect slaughter techniques, ineffective equipment, carelessness, etc. An investigation that starts at the hides and skins room indicates the amount of damage as well as the areas where damage mostly occurs. The causes of the damage can then be determined and corrective training can be conducted.

Offal rooms are also a point of concern during audits. The RMAA believes that offal rooms deserve the same attention as the rest of the slaughter floor as these products also reach the consumer market. Operators in these areas are often neglected in terms of training and the condition of the facilities can also compromise hygienic practices. The Association’s evaluation and training is aimed at improving the offal handling environment.

The maintenance of equipment is another

focus of audit inspections. Improperly maintained equipment can cause serious health hazards including contamination and pest infestation, but is also a threat to the efficient operation of the abattoir through wastage, unsafe situations, and additional expenditure in cleaning. A thorough evaluation of equipment and structures highlights any problem areas and may save the abattoir future losses due to poor maintenance, as well as ensuring compliance with health and safety regulations.

If you’re eating a steak in South Africa today, you know it’s going to be good!

For more information about The Red Meat Abattoir Association visit: www.rvav.co.za

BE Monthly | 291

building a better world One of the world’s leading building and construction firms with a rich equipment pool and powerful technical staff

D

ORCE Prefabricated Building & Construction Industry Trade INC., founded in 1982, is a Turkish general contractor, with a vast worldwide experience, which prov ides engineering, procurement and construction services for projects requiring high quality services in extreme environments.

DORCE stands out with its ability to quickly mobilize & operate in the harshest conditions in several countries at the same time.

“ DORCE owns one of the largest prefabricated steel structures manufacturing facilities in the world” 292 | be directory

DORCE owns one of the largest prefabricated steel structures manufacturing facilities in the world.

The manufacturing facility located in Ankara – Turkey, has 100.000 m2 total area (55.000 m2 workshop area).

DORCE Prefabricated Manufacturing Capacity • 160,000 m2 panelized prefabricated building production / month or, • 3,600 modular units (accommodation containers) / month • 1,900 tons production of heavy industrial steel buildings / month.

DORCE’S CRITERIA OF SUCCESS • Timely, in budget project completion • P rov iding highest qualit y construction services • Highest standards in health, safety and environment • DORCE considers it’s personnel as

Dorce

its most valued asset which brings success to the company.

Projects in Following Countries • M iddle East: Iraq, UAE, Qatar, Oman, Jordan, Yemen, Iran • A sia: Afghanistan, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Mongolia, Nepal, Pakistan, Russian Federation, Tajikistan, Turkmenistan, Ukraine, Uzbekistan • E urope: A lbania, Bosnia Herzegovina, Bulgaria, Great Britain, Kosovo, Ireland, Macedonia, Moldavia, Romania • A frica: Algeria, Cameroon,

Democratic Republic of Congo, Djibouti, Equatorial Guinea ( Malabo Island), Gabon, Guinea, Libya, Nigeria, Niger, Mauritania, Morocco, Republic of Congo, Sudan • South America: Venezuela • Australia dorce Asagi Ovecler Mahallesi 1325. Sokak No: 6 Çankaya, 06460 Ankara / Turkey T +90 312 472 82 10 www.dorce.com.tr

be directory | 293

We flex to your specs Spreading quality and standards around the world in the field of chemical reference materials

H

eadqua r tered in Christiansburg, Virginia, Inorganic Ventures is a producer of chemical certified reference material (CRM) specializing in preparing custom inorganic standard solutions designed for a variety of applications. These include ICP, ICP-MS, ion chromatography, and atomic absorption.

These highly regulated and highly sensitive processes require incredibly accurate and consistent measurements, which mean your testing equipment requires extremely accurate and

“ We will grow the business by introducing Inorganic Ventures to people all over the world” 294 | be directory

consistent calibration. We specialize in the formulation of custom inorganic solutions and we excel in providing service and support tailored to our customers’ specific needs. In short, ‘we flex to your specs’.

“Our speed of delivery and turnaround times,” explains executive vice president, Michael Scott, “are second to none and really help differentiate ourselves from others in the industry.”

For over a decade, Inorganic Ventures has been ISO Guide 34, ISO 17025, and ISO 9001 accredited.

It was the first inorganic certified reference materials manufacturer to be accredited to ISO Guide 34.

These quality standards are the core of the analytical testing community and Inorganic Ventures continues to lead the industry in obtaining and developing these quality standards.

Our vast experience in custom

Inorganic Ventures

blending allows us to create precise, distinctive CRM blends quickly and ship them anywhere in five business days or less. If your needs are not unique, we offer a wide selection of stock inorganic CRMs that ship the day you order.

Our European distribution center is being relocated from Madrid to Santander, to serve as a gateway for any international orders and to provide our customers with fast delivery at competitive transportation costs anywhere in the world. With distributors in more than 50 countries, Inorganic Ventures is targeting the international

stage for its next growth opportunities. “The way we will grow the business in the short-to-medium term is by travelling, by introducing Inorganic Ventures to people all over the world and by building long-lasting relationships with customers,� says Scott.

Inorganic Ventures T 1.800.669.6799 T 1.540.585.3030 F 1.540.585.3012 E info@inorganicventures.com www.inorganicventures.com

be directory | 295

Consulting engineers After 90 years of serving South Africa, J&G has become increasingly involved in the field of mine infrastructure across Africa

J

effares & Green, popularly known as J&G, is a South African consulting engineering firm with a complement of some 300 engineers, environmental scientists, specialist professionals and administration staff working together to provide the highest quality of consulting engineering services for the benefit of the community and the environment.

For the mining industry, J&G’s projects include the design of haul roads, road deviations, road crossings, water supply schemes, airports, civil infrastructure, geotechnical investigations, environmental services and construction monitoring.

J&G offers design and construction monitoring services for all types of roads, from freeways to gravel roads.

Typical road projects undertaken for

296 | be directory

mining houses include the realignment of public roads to increase reserves, access roads, circulation roads and heavy-haul roads, including roads catering for 80t mine vehicles and others catering for 400t road trains.

J&G offers geotechnical and environmental services, including slope stability, materials investigations, f o u n d at i o n i n v e s t i g at i o n s , environmental impact assessments, permitting and mine rehabilitation, and has also been responsible for bulk earthworks for mine and process plant infrastructure.

J&G has undertaken a number of potable water supply and plant water augmentation schemes for mines both in South Africa and north of our borders. J&G has the expertise to offer services in the collection and treatment / disposal of both domestic and industrial wastewater.

Jeffares & Green (J&G) Group

Expert teams also offer hydrology and geohydrology, groundwater monitoring and modelling, and contaminated land assessment and remediation. The group has also been responsible for the development and management of tailings dams.

J&G has a specialist division that deals with integrated solid waste management, including on-site development and management of waste dumps as well as the design of transfer stations. A team of environmental scientists and civil, process and environmental engineers undertakes environmental footprinting, a measurement that goes beyond that

of carbon footprinting, to include the potential impacts of water and waste, thereby establishing a holistic picture of the environmental impact.

J&G has also undertaken the development of airstrips, including feasibility studies, planning, design and licensing, for mines in various countries.

Jeffares & Green (J&G) Group T +27 (0)21 532 0940 F +27 (0)21 532 0950 E jgict@jgi.co.za www.jgi.co.za

be directory | 297

Resources for resources Providing temporary and permanent recruitment across all mining and resource disciplines

R

ed Dirt Personnel was founded in 2002, with the sole focus of meeting the unique needs of the resource industry. In other words, we aren’t a large recruitment company that dabbles in mining. At Red Dirt Personnel, mining is all we do, resulting in our name becoming synonymous with temporary and permanent recruitment across all mining and resource disciplines.

Growing in synergy with the mining industry in Western Australia has given us acute, first-hand knowledge of our individual clients’ needs. Importantly, each of our team members has a mining background, giving them invaluable experience, insight and empathy in the world of mining beyond the four walls of the recruitment office.

Every day across WA, companies rely on Red Dirt Personnel to deliver both temporary and permanent

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skilled workers, particularly in the area of fixed plant processing and maintenance, via what we believe are the most competitive rates in the industry. It’s our role to ensure all placements occur as efficiently as possible, leaving you free to focus on other aspects of your business. As employees are a company’s biggest asset, we strive to evolve all candidates into permanent employees.

Acquiring new staff can be a costly and time-consuming business, so Red Dirt ensures all pre-employment processes and procedures such as medicals, drug & alcohol screens, MWHS testing and reference checks are undertaken for every candidate selected for employment prior to commencing on site (costs covered

by Red Dirt).

As a dedicated mining recruitment provider, it’s not surprising to discover that we take our occupational health

Red Dirt Personnel

and safety responsibilities extremely seriously. Nothing is more important than the safety of our team members, our candidates, our clients and the general community in which each sector operates.

We have comprehensive injury management systems in place to manage our workforce around the clock, and are fully insured, with coverage for workers compensation, public liability and professional indemnity.

Our services have been fine-tuned over a decade of working closely with our clients, identifying areas where we can add value within and beyond

the recruitment process. As all Red Dirt Personnel team members have formerly worked in mining, all services are seamlessly provided within a mutual understanding of rosters, work conditions, and the like.

Red Dirt Personnel Unit 3, 85 The Promenade Mount Pleasant Western Australia 6153 T (08) 9316 4166 F (08) 9316 4150 www.reddirt.com.au

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