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BusinessExcellence Weekly ISSUE No. 34 | www.bus-ex.com
Stage Entertainment:
A mammoth
undertaking The challenges of gearing family musicals for mega venues and a world tour
New Port Project, Qatar:
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DESIGN
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BUSINESS
Richard Turner Director of sales rturner@bus-ex.com Vince Kielty Director of Editorial Research vkielty@bus-ex.com Sharon Rooke Administration & Operations srooke@bus-ex.com Matt Day Head of technology mday@bus-ex.com Andy Turner Chief Executive aturner@bus-ex.com
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contents
6 6 Marketing
The end of marketing as we know it
Most innovative companies are implementing marketing techniques based on peer influence and community building, says Bill Lee.
16
16 Time management
Making time
Simon Orme discusses the challenges that managers face, and offers some proven ideas to help make the most of your time.
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22 Stage Entertainment Touring Productions A mammoth undertaking
Caspar Gerwe talks about the challenges of creating family musicals for mega venues and a world tour.
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contents
32
32 New Port Project, Qatar A greenfield port
The design and development of a port to meet the requirements of the Qatar National Vision 2030.
42 B-Mobile
Setting the trends Brunei boasts one of the most advanced telecommunication industries in South East Asia.
50 GeoProMining
50
Taking a professional approach A combination of international mining expertise and on-the-ground experience has created an enviable track record.
58 Exxaro Resources Champion of change
An extraordinary South African resource company with a strategic vision to become a $20 billion company by 2020.
58
68 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.
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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
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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” 8 | BE Weekly
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.
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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” 12 | BE Weekly
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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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
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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” 18 | BE Weekly
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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A mammoth undertaking Caspar Gerwe talks about the challenges of gearing family musicals for mega venues and a world tour
written by: Gay Sutton research by: Vince Kielty
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Stage Entertainment Touring Productions
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A
s family entertainment goes, there has not been much on offer in the stadiums and arenas of Europe—or North and South America for that matter. Sport, rock and pop have held sway; until now. At the beginning of November a groundbreaking new musical production based on the hugely successful Ice Age films, launched This is awas caption this is at the Wembley Arena aincaption London. Playing to an audience of over
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25,000 visitors in just three days, it faithfully brought to life the endearing film characters that families have grown to know and love. The company behind this ambitious production is Stage Entertainment Touring Productions, a new division of the Netherlandsbased international entertainment group Stage Entertainment. The parent company has a well established and enviable position as Europe’s leading live entertainment provider, managing and
Stage Entertainment Touring Productions
creating the content for some 25 theatres scattered across France, Germany, the UK, Holland, Spain, Italy and Russia. Focusing on the production of musicals, it not only delivers some of the world’s greatest hits to the European audience under licence from their creators but also develops completely fresh new musical productions. Among its current portfolio of titles are Les Misérables, Mamma Mia!, Saturday Night Fever and Sister Act.
“We are currently seeing many new big arenas being built around the world, and these venues will need to be programmed with content,” said director Caspar Gerwe. It is a gap in the market that Stage Entertainment Touring Productions has been created to fill. Ice Age Live! is merely the spectacular launch production in what will ultimately become a portfolio of completely new shows, all aimed at a family audience and scaled for arena venues. “We will also take these
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25,000 Visitors to Ice Age Live! in three days at Wembley Arena, London
Holiday on Ice will continue for another year
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productions on tour around the world. That makes us unique. With this regular flow of new content coming through, arenas will be able to programme us on a regular basis.” Under licence from 20th Century Fox, the story line behind Ice Age Live! is a completely new adventure that sees the baby mammoth Peaches kidnapped and the herd embarking on an adventure to rescue her. “I can’t reveal more about the story,” Gerwe said, “but it’s fair to say that the characters have many adventures along the way. We have created new characters and introduced a new villain called Shadow, a dangerous and evil bird.” Bringing these well known and loved characters to life for the arena has been an enormous challenge. The mammoth Manny, for example, is 4.5 metres (15 ft) in length and height and moves, behaves and looks exactly as he does in the films. Anything less than a faithful portrayal would have diminished the magic of the production. Achieving this feat of imagination, design and engineering has been the work of an internationally renowned creative team led by creative director Guy Caron of Cirque du Soleil fame, and character visualisation designer Michael Curry, known for his work on The Lion King. The original concept, book,
Stage Entertainment Touring Productions
The company has an internationally renowned creative team
music & lyrics are all completely new for the production and created by Ella Louise Allaire and Martin Lord Ferguson from Canada, both of whom had worked with Caron and with Stage Entertainment before. “We have turned this production into a multi-dimensional visual spectacular by combining a number of elements including that of the circus,” Gerwe explained. “As the story is set in the ice age we began with an ice floor upon which the characters can skate
or walk. Then we introduced large platforms which move on the ice and provide a stage, particularly for the enormous mammoths. Above this we have aerial acts and we even have a big screen backdrop where we can project animations. So the audience continues to appreciate this is a movie related product.” The production features what Gerwe describes as high level artistic moments. For example, the challenge of managing a fight between good and evil, the herd
“We are currently seeing many new big arenas being built around the world, and these venues will need to be programmed with content” be weekly | 27
against the villainous birds, is portrayed as an ‘out of body experience’ with actors in body suits emerging mystically from the character and them merging back into it again after the scene. There have been many challenges in bringing this spectacular to life, not least of which was the tight timeframe. The company was formed just 18 months earlier and in that time has created and developed the story and brought the production into being. One of the interesting early decisions for Ice Age Live! was to prerecord the dialogue and music rather than perform it live. This liberates the puppeteers and the stage team to concentrate on the highly technical aspects of managing the movements of the characters and the stage set. It does, however, impose tremendous cueing constraints on them as they have to ensure every movement is exactly synchronised with the recording. Taking this production on tour will no doubt also be a challenge, but the company is able to draw on the considerable knowledge and experience of the world famous Holiday on Ice show, which has been part of Stage Entertainment since 1996 and is celebrating its 70th anniversary next year. Today, Holiday on Ice is continuing its programme of touring ice shows as an integral part of
Stage Entertainment Touring Productions, and is sharing its knowledge and expertise in everything that makes up a successful touring operation—production, promotions, logistics, touring, manufacturing and so on. Ice Age Live! has received wide audience acclaim at its international launch in
“Our ambition is to become a global player in terms of developing, producing, and promoting arena-based shows with our own content” 28 | be weekly
Stage Entertainment Touring Productions
An extensive programme of touring family shows is planned
London, and is now touring in Germany where it will be shown in 14 cities over a period of three months before going to France. The production is scheduled to continue touring in Europe, North and South America for a period of five years. In each country the dialogue will be re-recorded in the audience’s language. This successful launch is only the first in what the company hopes will become an extensive programme of touring family shows for the arena. Another production is currently being created by DreamWorks, based on the hugely successful computer animated film series Madagascar Live.
Featuring live music and dialogue, it is due to open in the UK in January 2013 and will then go on tour in South America. The forward momentum continues. “We are currently brainstorming new content for 2014 and 2015 and we have many ideas,” Gerwe commented. “Ice Age Live! and Madagascar Live will still be running, and Holiday on Ice will continue with Speed for another year, but we have a number of options for future productions, and we have yet to make the final decision.” There are many synergies between Touring Productions and its parent company, and these have provided a solid foundation for the
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Holiday on Ice has been part of Stage Entertainment since 1996
Stage Entertainment Touring Productions company’s business and operational structure. The benefits of the collaboration extend in both directions. Stage Entertainment’s French theatre production of Mamma Mia!, for example, has been running for two years in Paris and now Touring Productions has adapt it for the arena and currently take it on tour, extending the lifetime of the production by several years. “Our ambition for Stage Entertainment Touring Productions is to become a global player in terms of developing, producing, and promoting arena-based shows with our own content,” Gerwe said. “And we are also positioning ourselves as a promoter for the European market. Through Stage Entertainment, we have dedicated teams in all countries of Europe, along with media partnerships, a sales and distribution network, and ticketing capabilities. Combined with our expertise in the touring and arena markets, this infrastructure would be an invaluable asset to companies with an ambition to roll out their content in Europe.” There is much to play for in this hitherto unexploited marketplace. The launch production, Ice Age Live! has certainly set the standard very high. And while it may appear to be a hard act to follow, the company has the vision, drive and creative teams to continue developing new and exciting shows. The next production will be worth looking out for. For more information about Stage Entertainment Touring Productions visit: www.stagetouring.com
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A greenf
The New Port Project Stee with the design and deve the requirements of the Q
written by: Ma research by
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New Port Project, Qatar
field port
ering Committee is tasked elopment of a port to meet Qatar National Vision 2030
Martin Ashcroft y: Jon Bradley
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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
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Weekly Because a month is a long time to wait... Your weekly digest of business news and views www.bus-ex.com
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
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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” 38 | be weekly
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
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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
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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
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B-Mobile
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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
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CONGRATULATIONS B-MOBILE We are proud to be a key partner of B-Mobile providing customized corporate finance facilities to suit their needs. Congratulations once again on this great success.
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IT’S A GREAT BIG WORLD
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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%
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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
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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
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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” 54 | be weekly
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
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income that possess the right economics and geographic properties that can increase our business.� As Nossoff goes on to say, GeoProMining has every intention of becoming a much larger player within the international mining community, however its current focus is on maintaining a solid operational performance across its operations. “As a business we do not subscribe to the idea of trading licenses
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for assets or being the type of company to identify a deposit and simply sell it on to the highest bidder. What we do is take a project, manage it and build it up into a viable, commercial success. That is what we feel we do better than most.� A proactive player in the marketplace, with a proven ability to integrate operations in different countries, GeoProMining is aware that its ability to grow also rests on its ability
GeoProMining
Leaching tanks at the Ararat gold recovery plant in Armenia
to move further afield into new markets, or simply going deeper into Russia. “One of the other things we have going for us,” Nossoff concludes, “is that we have a strong, international workforce. The level of experience that these individuals possess allows them to move between operations easily, which in itself brings a united culture to our group, creating extra productivity and effectiveness. This is just one of a number
of strengths that sets GeoProMining apart from other companies, strengths that show that we have a number of different ways to develop our operations and ultimately our shareholder value.” For more information about GeoProMining visit: www.geopromining.com
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Champion
of change
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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
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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
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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. RTMS is pariatur. Excepteur sint Duis aute irure voluntary dolor in an industry-led, non reprehenderit voluptate self-regulation in system that This is a caption this is a caption occaecat cupidatatIron-ore proident, sunt in culpa qui velit esse cillum dolore encourages consignees, eu fugiat nulla pariatur. 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| |632 be weekly
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. Excepteur sintin occaecat nona a global view deciding cupidatat what sort of proident, intoculpa company itsunt aims be inqui theofficia future.deserunt mollit animatid the est laborum. Lorem power ipsum Looking way economic dolor sit amet, is shifting fromconsectetur the West toadipisicing the East, elit, the
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
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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
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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
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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
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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
Show the world what your company has to offer with our tailored packages
Seen www.bus-ex.com
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
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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� 74 | be weekly
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
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