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BusinessExcellence Weekly ISSUE No. 37 | www.bus-ex.com

hyspec Mining services:

Saving downtime and costs How the supply of hydraulic hoses and inspection services keeps mining operations in Africa moving

barrick gold granny smith mine:

wings travel management:

world titanium resources:

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

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editorial Martin Ashcroft Editor In Chief

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

CONTRIBUTORS Kate Tojeiro

Founder of Xfusion, a progressive leadership consultancy. She has worked as an executive coach and facilitator with some of the world’s largest organisations.

Quentyn Taylor

Quentyn has worked in a variety of industries including outsourced service providers, internet service providers as well as dotcom businesses.

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issue No.37

6 6 Leadership

Inspiration or aspiration?

Great leaders concentrate their energies on the things they are good at. They must also inspire others in their organisation to achieve greatness.

12 Technology

the changing definition of security

As technology continues to advance with the growth of cloud computing and SaaS, data security needs to be at the forefront of every CIO, CEO and IT manager’s mind.

12

18 Hyspec Mining Services Saving downtime and costs

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Managing director Alan Wood describes the progression from the supply of hydraulic hoses to inspection services that save downtime and costs for mining operations in Africa.

contents 28 Barrick Gold: Granny Smith Mine A harvest of gold

Barrick Gold’s Granny Smith property in the Western Australian outback is a hotbed of mining industry best practice, technical innovation and community initiatives.

28

44 World Titanium Resources Keeping it simple

CEO Bruce Griffin talks about the potential of a highly expandable, high-grade mineral sands project in Madagascar.

54 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.

44 54

62 ChemSystems Daring to diversify

ChemSystems has been a fixture of the chemicals industry for over five decades. The company is now making a name for itself in the oil and gas sector.

72 Imperial Logistics Refrigerated Services (ILRS) Always moving forward

Boasting a national footprint in South Africa, Imperial Logistics Refrigerated Services (ILRS) today exists as South Africa’s ‘first to market’ service provider.

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6 | BE Weekly

Photo by C Flanigan/WireImage

Leadership

Inspiration or

aspiration?

Great leaders concentrate their energies on the things they are good at. They must also inspire others in their organisation to achieve greatness

written by: Kate Tojeiro

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M

ost businesses t o d a y , pa r t ic u la rly l a r g e multinationals (the most noticeable and easiest to scrutinize), are driven by two distinct styles of management; inspirationled and aspiration-led styles.

Whilst they are quite different in their modus operandi, they do have some distinct crossovers. Neither, however, provides a holistic winning formula in the current economic climate.

Inspiration-led organisations, companies such as Apple, Google, ARM Holdings and Amazon, have charismatic leaders who are inclusive by nature and connect well with their teams. They tend not to be risk-averse (certainly in terms of being wrong) and are driven by innovation and creativity. They will have a clear vision of where they

want their company to be in the future, and they have the ability to effectively articulate that vision in a way that is compelling to those around them and other stakeholders in the organisation.

Bureaucracy is anathema and these organisations tend not to be (overly) hierarchical in structure.

Organisations that are driven by an aspirationled leadership have a very different way of operating.

Many also have charismatic leaders but size, market share, inf luence and geographic spread are more important than innovation and creativity. They are power driven and being at the top is crucial; they are game makers and definitely not game followers.

The behaviour of these aspiration-led organisations can sometimes be seen as arrogant and self-serving.

Businesses in the banking,

“Learning in a contextual way can have much more impact than learning in a conventional manner�

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Richard Branson

Leadership mining, pharmaceutical and petroleum industries are typical examples of companies that have an aspiration-style leadership.

Over many years I have worked with numerous senior managers across a wide range of industries. It is not uncommon to find that many of them draw leadership lessons and inspiration from examples set by their peers and others. There are distinct advantages in doing so. Learning in a contextual way can have much more meaning and impact than learning in a conventional manner. Sometimes it results in their changing the way they behave and manage, but this invariably produces positive results.

As I mentioned earlier, neither an inspirationled nor an aspiration-led management style is perfect in all situations, so should we combine the best of both and create a new leadership style?

Maybe it’s a bit like asking if BP could be run more effectively by having Richard Branson working alongside Bob Dudley in a joint CEO role! Certainly, the innovative Mr Branson has been

noted for castigating the management of some of Britain’s leading organisations, but perfection is not the principal objective in creating a new style of leadership.

Developing a new leadership style to address the changing needs of business will ultimately involve everyone in the organisation, not just those at senior management levels. It is certainly accepted that what has worked well in buoyant times is unlikely to be as effective in difficult economic times.

Traditional ways of thinking and operating will need to be challenged if companies are to remain strong and competitive. To quote Mark Twain, if you always do what you always did, you’ll always get what you always got. It is about being prepared to change, then driving that change forward, both on an individual and corporate level.

Observing the styles of other leaders will provide valuable insight. However, what makes the observation most beneficial is when leaders draw from these styles what they require in order to develop and nurture their

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own unique way of leading, creating and generating that meets not only the immediate needs of the organisations but, more importantly, those of the future. Since a change in leadership style is going to affect the entire company, results are not going to be immediate. In itself, this is not a problem because once the need for change has been identified and communicated from the top down, the seeds for creating a new way of doing

business will have been sown and should quickly flourish.

Effective communication of change can be achieved in a number of ways. One which I have found to be most beneficial, particularly in large companies with multiple layers of management, is providing employees with direct access to senior executives. Which employees and how much access will depend on the organisation, but from my experience with

Google’s Larry Page and Sergey Brin CEO and Co-Founder, respectively

10 | BE Weekly

organisations that provide this access, junior managers often report feeling more “included� in their company and less marginalized from senior management.

They have an opportunity to provide input on new ideas and projects, and senior managers have the opportunity of mentoring up-and-coming juniors. Just as senior management draws leadership lessons from its peer group, so do younger

Leadership

“Developing a new leadership style to address the changing needs of business will ultimately involve everyone in the organisation” managers draw experience from their superiors, albeit in a much closer relationship.

Mentoring also discourages vital talent from jumping ship and taking their skills elsewhere. This is important

because even in a down economy, talent will always be in demand.

Great leaders are those who concentrate their energies on the things they are good at, and totally accept the things they are not good at. Irrespective of whether their style is inspiration-led or aspiration-led, they are comfortable with the fact that they, alone, can’t achieve everything, so surrounding themselves with good people who have the skills to achieve what they can’t, these leaders are able to inspire others in their organisation to achieve greatness. Which takes us back to the issue of whether there is a need to create a

new leadership style.

A new style in itself is probably not required. After all, if it’s not fundamentally broken, why try and fix it? Both inspiration and aspiration styles of leadership can be effective, even when an economic collapse threatens the very existence of a business. Where there is a desire or need to change an existing leadership style, business leaders should choose from the attributes of existing styles and nurture an approach that best suits them.

The overriding objective, however, is not to create a style that becomes formulaic, but a style that is sustainable and can be repeated.

Kate Tojeiro is founder of Xfusion, a progressive leadership consultancy. She has worked as an executive coach and facilitator with the boards, senior leaders and teams of some of the world’s largest organisations and also some of the most cutting edge, organically-grown start-ups. www.the-x-fusion.co.uk

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the ch definition o

As technology continues to a cloud computing and SaaS, the forefront of every CIO, C

written by: Qu

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Technology

nging of security

advance with the growth of data security needs to be at CEO and IT manager’s mind

uentyn Taylor

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here’s no doubt that the nature of the security i ndu st r y is changing. Recent high profile data losses like LinkedIn’s loss of user data as a result of a security breach (reported by Reuters) and a breach of security systems at Global Payments (reported by the Financial Times) were met with widespread media coverage and speculation on the readiness of the companies involved to combat the threat from hackers. As a result, security is being pushed further up the news agenda. With the European Commission (EC) recommending its mandatory breach disclosure policy, it’s not hard to see why companies are nervous about what the future holds when it comes to security policy.

For ma ny yea rs, security meant guarding the perimeter, setting up

firewalls, securing laptops and protecting data as it left the safety of the company, but that’s all changing. As cloud computing and SaaS continue to take over the office, the very definition of security, and what needs to be secured within an office, is changing. It is now data itself that is at risk. From the moment it is created, accessed remotely, emailed and printed, information is at risk throughout its lifecycle from external threats and internal mistakes. We now live in an information-driven age where knowledge is a valuable commodity.

If the recommendations within the European Commission’s data protection directive go ahead, a mandatory breach disclosure will be enforced, whereby organisations must notify the national supervisory authority of serious data breaches—potentially within

24 hours. The extent to which this will be feasible is still being debated - but there is a real risk that it could result in businesses being forced to tackle single data breach cases rather than investing in changing the security culture within an organisation, which would have a greater positive impact on the security measures adopted.

One recommendation by the EC for businesses with more than 250 employees is the appointment of a dedicated security officer who can implement a more holistic security inf rast r uct ure t hat encompasses all parts of the network. Whether data is passing through a smartphone, printer or laptop, it needs to be protected and a data protection or security officer needs to take a bird’s eye view to see the security needs of the organisation as a whole, rather than

“One recommendation by the EC for businesses with more than 250 employees is the appointment of a dedicated security officer” 14 | BE Weekly

Technology

F

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HT

A recent ICM / Canon study revealed that 47 percent of consumers in Germany thought organisations were doing enough to protect data, compared to just 29 per cent of UK respondents.

A recent survey by Shred-it Security Tracker found that 59.8 per cent of SMEs said they don’t believe that the loss of data would have any impact on their business.

This is a shocking statistic and while small data losses may go unnoticed by most consumers, the catastrophic effect that a major security breach or data loss can have on an organisation can’t be ignored. When it comes to data security, it’s definitely a case of prevention being better than cure. That doesn’t necessarily mean that consumers need to know all the details about the work that goes into preventing data loss. Most consumers only read through the key

GPK

relying on a one-size-fits-all approach that puts a fence indiscriminately around the perimeter.

Security considerations need to be woven into the structure of a company so that if any issues arise they can be dealt with quickly, effectively and within the deadline.

Although many companies may be worried about the impact the proposed EC directive will have on their business, it can be turned into a positive if the data officer is employed well by the company to improve the overall security strategy and is focused on locking in data as it is created, rather than solely catching breaches.

In Germany, where it is already more common for companies to have a data protection manager, there is a higher perception that organisations do just the right amount to protect both company and customer data.

parts of security clauses, but overall there is room for improvement when it comes to consumer awareness around the securit y measures organisations are taking already to protect important data. One in three consumers questioned think businesses don’t do enough

“overall security strategy should be focused on locking in data as it is created, rather than solely catching breaches” 16 | BE Weekly

Technology

D

the security processes in place can help consumers to feel that a company is doing enough to protect the data it holds.

Whether the European C om m i s sion’s data protection directive comes into force or not, securit y and what it

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to protect data from getting lost or misused.

The findings of the ICM / Canon research highlight that there is a huge difference between the awareness and knowledge held by consumers around security issues across Europe. For example, in the UK 30 per cent of consumers only read the topline parts of security clauses and 37 per cent feel that organisations don’t do enough to protect data from getting lost or misused. This shows that even sharing topline information about

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AO Y B 59 P U OM RB SU means is changing as the shift to data-led business continues. Whether this translates into security becoming a key purchasing consideration is debatable, but it is clear that data security needs to be at the forefront of every CIO, CEO and IT manager’s mind.

Quentyn Taylor is director of information security for Canon Europe. He has worked in a variety of industries including outsourced service providers, internet service providers as well as dotcom businesses, before moving to Canon in 2000. www.canon-europe.com

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Saving downtime and costs Managing director Alan Wood describes the progression from the supply of hydraulic hoses to inspection services that save downtime and costs for mining operations in Africa

written by: Martin Ashcroft research by: Richard Halfhide

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Hyspec Mining Services

Assembling hydraulic hoses in Burkina Faso

Hyspec Mining Services

F

ounded in 1996, Hyspec Mining days there were no phones, no internet, and Services specialises in the to send a fax involved a 60km round trip to provision of hydraulic, fuelling pay $5 per page. Through some acquaintances and lubrication equipment and I found out about an underground mining services to the mining and operation in Obuasi in the Western region of exploration industry in Africa. The company’s Ghana, so I made a nine hour taxi journey growth over the last fifteen years has been a and found an Australian drilling company phenomenon, so much so that its major parts with hydraulic hoses dripping off its drilling supplier Manuli Fluiconnecto, a subsidiary of rigs. The owner of the business gave me 45 the Italian Manuli Rubber Industries, acquired minutes in his boardroom and explained to me a 51 percent equity stake in the company on the mining industry in Ghana; when I came 31 November 2012. out I thought – this is where we have to be.”

Wood put together a 40 foot container “It’s a win-win situation for us both,” says managing director Alan Wood. “They gain a of hydraulic hoses, assembly equipment, significant share of the African parts and fittings and sent mining market and we secure it to the Ghanaian port of continuity of supply, as well Tema, meeting up with it as opportunities to spread our a couple of months later to business model. Being part of start a bridgehead, register a large group also provides a the business, recruit some Hyspec Mining employees and start training buffer in the event of a shaky Services established them. It soon became clear, economic future.”

Hyspec has come a long however, that this operation way since 1996. In a similar business in the UK was still too far from the mine sites to be as at the time, Wood was looking for an overseas effective as it should be. opportunity to excite him. One of his friends “After about six months the mining guys (also a customer) was engaged in deep sea were complaining that we weren’t much use diving in support of the early oil exploration to them in Tema, 300 kms away, so one of the operations on the Gold Coast offshore Ghana. mines assisted by clearing a patch of jungle “He talked up the African experience and outside of their perimeter; they laid a concrete encouraged me to visit, stating there was base and we built our first containerised simply nobody providing hydraulic services workshop. That was in 1997 in Tarkwa at there,” says Wood. Eventually, he went. the Iduapriem mine. We opened our second He was not immediately inspired by one at the Ashanti Gold operation in Obuasi what he saw, but then fell upon the mining and we now have over 50 workshops across industry. “Fifteen years doesn’t sound like a twelve countries in sub-Saharan Africa.”

Operating from onsite workshops has long time but it’s a lifetime away in terms of infrastructure in Africa,” he says. “In those allowed Hyspec to progress from the simple

1996

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90% Proportion of Hyspec’s contracts on gold projects

Hose crimping on site

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provision of hydraulic hose assemblies into a service provider focused on reducing customers’ downtime and operating costs by inspecting their production equipment— excavators, drill and blast drilling rigs, and dump trucks.

“Downtime on an excavator can cost many thousands of dollars per hour when they’re producing gold,” says Wood, “and 90 percent of our contracts are on gold projects. If a hydraulic hose fails, even with us onsite it might still take up to three hours to replace it. By the time one of the client’s service technicians gets down to the pit, takes the hose off, brings it to our workshop for us to make the hose, then gets it back down to the machine and fits it, they may have had three hours of downtime. That could be ten, twenty, even thirty thousand dollars’ worth of lost production. Hose breakdowns not only incur production loss, but affect other areas such as oil contaminations of the high grade gold, equipment damage, personal injury situations or environmental damage. The cost of a hydraulic hose pales into insignificance compared to the cost of the breakdown and associated downtime, so it’s really important that we work to catch a hose before it fails.”

This is where Hyspec’s inspection service

Hyspec Mining Services

Hyspec evolution of the hose container

is worth its weight in gold. The mine’s equipment will have maintenance periods for refuelling and lubrication a couple of times a day, explains Wood, so if that time can be used to inspect the hoses it gives the customer the opportunity to replace suspect hoses before they fail. “We also carry out root cause analysis of failures,” he continues, “which allows us to pinpoint areas that the customer might need to start concentrating on to reduce downtime and improve productivity.”

The average life span of a hose might be six months on a drill rig, or a year or two on an excavator, but it can vary for a variety of

reasons. “It depends how hard the customer is working it,” explains Wood. “How well is the hose routed within the configuration of the machine? Is it chafing for example?

How good and sympathetic are the drivers or operatives? Are they damaging the hoses against rocks? Temperature of the hydraulic oil is a major factor, and it is important to keep the hydraulic oil cool. There are a lot of reasons why hoses fail. That’s why we conduct root cause analysis so we can identify which machines are most at risk and why. We can then make plans to help a customer reduce hose failures and improve their uptime.”

“One of the mines cleared a patch of jungle outside of their perimeter, laid a concrete base and we built our first containerised workshop” be weekly | 23

As the business grew and its customer destinations multiplied, it became apparent that changes would need to be made to the logistics operation to get the right products to the right place at the right time. “We became a very large purchaser of hydraulic hoses and fittings,” explains Wood. “The GFC manufacturers simply do not keep inventory, however, and the lead times have extended significantly. Miners are not interested in

excuses, they need the service and product immediately, and the manufacturers were struggling to provide the stock in the volumes we were ordering.”

To keep up with customer demand, Hyspec ran up an air freight bill in excess of a million dollars a year, so the decision was made four years ago to invest in a purchasing and logistics facility in Perth, Australia, to consolidate all its shipments there. “Now we’re in charge

“Downtime on an excavator can cost many thousands of dollars per hour when they’re producing gold”

Hose technician inspecting service truck for potential failures

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Hyspec Mining Services

Diving umbilicals can be a challenge

of all our shipping to individual countries,” says Wood. “It has reduced our annual air freight bill by three quarters, and allowed us to get the right product in the right place to better support our mining customers. We know we are not perfect, however, and we are continually looking for improvements.”

Hyspec has had a single source agreement with Manuli for hydraulic hoses and fittings from the beginning, with 80 percent of its business deriving from Manuli products.

The other 20 percent relates to greasing, lubrication and fuelling equipment.

“Now we are part of their direct family we have new opportunities in the oil and gas industry where Manuli is making an impact,” says Wood. “The use of hydraulic

systems in offshore oil is considerable and we already have operations in Takoradi in Ghana, which is a new offshore centre for oil production. We’re also opening up in Cote d’Ivoire where there is already an offshore oil production industry. Guinea and Sierra Leone have development phase drilling, as well as Tanzania where we have a presence already, so the sub-Saharan region is full of oil and gas opportunities.”

Between the mining and oil and gas sectors, Hyspec is looking to set up six to ten new workshops in 2013, but finding a skilled workforce to fulfil this expansion is a major challenge. “There are little to no skilled workers available, and we cannot steal from our clients,” says Wood, “so we

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Conventional single containerized workshop

“Now we are part of Manuli’s direct family we have new opportunities in the oil and gas industry” must train our own technicians. We have a full time technical training manager who ensures that all our technicians are up to scratch, and we have now developed a train the trainer system within each country, which he manages.”

Whilst multinationals continue to expand in Africa, it’s becoming harder to employ expatriate labour, says Wood. “The governments naturally want their own people

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to be employed, not just within the mining or oil and gas industry but by all the multinational companies. We’re all under pressure to reduce our expatriate headcount. I believe it’s the right way to go, but it takes significant time and effort to bring the local employees up to a standard where they can provide the same level of service as any other global company in the first world. Our hoses are assembled in accordance with first world fabrication

Hyspec Mining Services

New workshop format

procedures: we want to avoid contamination on our customers’ equipment, and ensure that the hoses made in our workshops last as long as possible. This involves using appropriate manufacturing equipment, internally cleaning the hoses before they are installed on the mines’ equipment, storing them correctly, and banning practices such as mixing and matching, hose re-ending or welding of fittings. All of the hoses made by Hyspec are tagged and carry a three month warranty.

Meeting these objectives in Africa therefore requires extended training in the assembly and identification of high pressure hoses and systems, and involves close monitoring in every workshop to ensure that procedures are understood and strictly followed at all times.”

After talking to Alan Wood, I am impressed

Central workspace for new workshop

by Hyspec’s success on a continent known for its difficult business environment— from a one workshop company providing hydraulic hoses to a single mine in Ghana, to a group with over 50 workshops spanning twelve African countries, providing a full range of services aimed at reducing the mines’ operating costs and at improving their production. Hyspec and Manuli’s combined expertise will allow the group to grow further and expand to other markets and areas very quickly. Time and effort are definitely not a problem for Hyspec.

For more information about Hyspec Mining Services visit: www.hyspec.com

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A harvest of gold Barrick Gold’s Granny Smith property in the Western Australian outback is a hotbed of mining industry best practice, technical innovation and community initiatives: with more gold defined annually it has turned into a long term asset

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

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Barrick Gold: Granny Smith Mine

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Barrick Gold: Granny Smith Mine The Granny Smith Mine began operations in 1989

I

n case you’re wondering why a mine might be named after an apple, this Granny Smith has nothing to do with the fruit that has been called Australia’s best-known export.

The deposit now owned and operated by Barrick Gold was first discovered in 1979 by Ray Smith and named after his wife Laurende who had just become a grandmother! Having passed through the hands of Delta Gold and Placer Dome, the arrestingly-named deposit was acquired by Barrick in 2006.

The mine started to operate in 1989 as a single pit with eight years’ estimated mine life, however many other pits have been mined between then and 2006. Today the mine draws on the reserves of the nearby Wallaby underground deposit and is continually adding to its production record.

Granny Smith, says its energetic manager Julie Shuttleworth, is a textbook example of the effectiveness of continuous drilling and exploration to follow the limits of a mineral deposit. “The Wallaby deposit has a lot of potential. We have been drilling lateral and deeper extensions and have found positive mineralisation there as well.”

The underground mine is located 950 kilometres northeast of Perth and 23 kilometres south of Laverton in Western Australia. Its processing plant consists of a two-stage fresh ore crushing circuit with closed circuit screening, a single-stage oxide ore crushing circuit, a semi-autogenous grinding mill in circuit with cone crusher and ball mill, an agitation leaching and carbon-inpulp circuit, tailings gravity retreatment plant with fine grind, a gold recovery plant with carbon reactivation, and a tailing thickener.

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BARRICK GOLD GRANNY SMITH

HAYS RECRUITMENT Boilermarkers, OH&S advisors and mining engineers are among the candidates in hottest demand in the resources and mining industry as we welcome 2013, according to the latest Hays Quarterly Report.

The Report, out now and covering January to March 2013, shows that there are clearly pockets of shortages for specific skills in the resources and mining industry. “Whilst these skills are in hot demand, employers remain cautious about hiring candidates that appear to have changed employer too often and they are also being very specific with their requirements,” says Simon Winfield, Senior Regional Director of Hays in Western Australia.

“Employers want candidates with a proven and stable background, and some are willing to wait to find the exact match. In terms of longterm solutions some employers are interested in candidates that can take a step up to fill a role rather than have someone more senior take a step back.” But when Hays finds the right candidate, says Winfield, employers are moving fast to snap them up.

According to the Hays Quarterly Report for January to March 2013, demand is highest for the following skilled professionals in resources and mining: NSW Boilermakers: More available than in previous quarters, but those with specific Hunter Valley Mine Site Inductions will secure short term contract work to support fluctuating project requirements.

Mechanical engineers: Opportunities exist with mobile plant for underground mines. While orders are slow, investment is still being put into product development.

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Project engineers (mechanical & civil) and project managers (mechanical & civil): As regional industries are focused on delivery of mining infrastructure, these candidates remain in demand.

Northern Territory OH&S advisors: These candidates are in demand as the industry in the Northern Territory is still growing and as sites get bigger and more complicated the safety side of their operations is becoming more paramount.

Electrical, fixed plant, reliability and mining engineers: Due to a skill shortage in the Northern Territory, as more sites look to have their workforce based here, they are finding it difficult to have the right candidates relocate.

Queensland Residential senior maintenance supervisors, senior Vulcan mine surveyors, experienced digger fitters, residential mobile maintenance planners and high voltage electricians: There is a shortage of good experienced candidates especially within the locations required. High voltage electricians must also have electric drive truck experience.

Western Australia Senior mine geologists, mining engineer, contract mining engineer, process manager and maintenance supervisor: Each of these skills is absolutely necessary to the operation of producing mine sites. Continued operation and profitability of key assets for mining organisations is the highest priority at present.

For more information on the Hays Quarterly Report, go to www.hays.com.au/report/

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Barrick Gold: Granny Smith Mine

Barrick practises continuous improvement in asset management

Proven and probable gold reserves reported at has been given, but recently she was declared the end of 2011 amounted to 635,000 ounces. 2012 Telstra Western Australia Business Julie Shuttleworth has managed the mine Woman of the Year, and in 2011 was Mine site since 2010, but has been with Barrick Manager of the Year at the Australian Mining since joining as a senior metallurgist in 2000. Prospect Awards. Her contribution to mining She is a big hitter in the industry, seemingly education has been recognised by her alma as busy outside of her day job as she is coping mater, Perth’s Murdoch University, where with the demands of running Granny Smith. she sponsors the Julie Shuttleworth Prize in An energetic spokesperson for the mining Mineral Processing. industry, she goes into schools, Though the drilling universities, career fairs and programme is her priority seminars to talk to students with six drill rigs operating and young professionals. to define the underground “I am passionate about deposit outward and encouraging people to think downward, there’s also Ounces of proven and potential future opportunity about working in the mining probable gold reserves at industry.” There’s not room to mine the decommissioned the end of 2011 here to list the awards she open pits. A feasibility study

635,000

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is underway and Barrick will assess this project further in 2013.

The additional volumes of ore for processing could be handled by the existing processing plant, which is currently being kept topped up via an ore purchase agreement with Focus Minerals’ Laverton operations. The 22 year-old plant has been subjected to an improvement project during 2012 led by the processing manager. Relatively small changes to screen sizes, ball loading in the mills and optimisation of crushers delivered a big improvement in throughput from approximately 7,500 tonnes per day (tpd) to consistently over 9,000 tpd. “It’s great to see these results: There is still some upside

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there and we will be working on continuously improving over the next couple of years.”

The plant will need that capacity. Even without the proposed open pits, there has been a massive ramp up in existing operations. 920,000 tonnes of ore were mined from underground in 2010: this year the tonnage will top 1.4 million. As a result of this production the gold ounces recovered went up from 139,000 in 2010 to 196,000 in 2011. Production is expected to be about 200,000 ounces in 2012. How has all this been achieved? Shuttleworth’s simple answer is continuous improvement in asset management, resource utilisation, planning and incremental process changes with a big

Barrick Gold: Granny Smith Mine

Resource utilisation has been improved

“We’ve focused on improving the capacity of the haulage trucks and making truck movement more effective” focus on effective teamwork. “We’ve focused on improving the capacity of the haulage trucks and making truck movement more effective. And we commissioned a new type of jumbo which has also increased production.”

A jumbo is the machine that drills holes into the rock face for explosive charges: so the more faces you can drill each day, or the

longer these holes are, the more you can blast and the more tonnes you can get out of the mine each day, she explains.

Another new piece of equipment which has been proving its worth over the last year is the low profile tyre handler that has been developed by the Granny Smith maintenance team in partnership with Austin Engineering.

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Red Dirt Personnel Group is a fully owned

West Australian Recruitment Company specialising in supply of Temporary and Permanent Labour across all disciplines to the Resources Industry as well as Project Maintenance. All recruitment staff have a mining background. Established in 2002 and with limited staff movement this has put us in a unique position whereby we can offer a steady workforce where industry client and candidate knowledge has been retained.

Red Dirt Personnel team members are in the office, Monday to Friday, 7am to 5pm. They are also contactable by phone 24 hours a day, 7 days a week.

More info on our talented team members can be found on our website.

www.reddirt.com.au

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RED DIRT PERSONNEL Red Dirt Personnel was founded in 2002, with the sole purpose of meeting the unique needs of the resource industry. We are not a large recruitment company that dabbles in mining. At Red Dirt Personnel, mining is all we do, so our name has become synonymous with temporary and permanent recruitment across all mining and resource disciplines.

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Acquiring new staff can be a costly and timeconsuming 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).

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. www.reddirt.com.au

DECEMBER be weekly 2012| |392

We create solutions The world’s biggest mining and resource companies come to us to process, handle, haul and support millions of tonnes of material across Australia.

At Granny Smith we have been working with Barrick for over 5 years and introduced one of the first dual powered out of pit haulers. With the support and cooperation of Barrick at Granny Smith these units continue to operate successfully today and have been a cornerstone for our business.

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Barrick Gold: Granny Smith Mine well as other Barrick mine sites in Western Australia. Several With over 100 years of experience in the field, we are a units are also in the USA. The leading provider of turnkey solutions to some of the world’s more mines that adopt the biggest mining, steel and resources companies. low profile tyre handler the We specialise in the provision of off-road load and haul happier Julie Shuttleworth solutions. Our Dual Powered Road Trains and Pit Haulers will be. “My vision is that are specifically designed to haul loads from out of pit or from top of pit over any distance without the need for there is never another tyre rehandling. changing accident anywhere.

In the core of its unique design, a second engine is utilised This machine securely holds either in a powered dolly between trailers or incorporated in the tyre and prevents it the lead trailer. from toppling over, making Using unique solutions like this one, we keep our customers the job safer.” producing safely. Interested in these unique solutions?

There’s best practice www.bisindustries.com wherever one looks at Granny Smith. The production record speaks for itself, the tyre handler is a fantastic example of innovation serving mine safety, and in addition the mine has a strong sense of commitment to people development and the wider community.

Based on her own experience Shuttleworth encourages colleagues to take advantage of the opportunities Barrick gives them to travel, transfer to other sites or to move on secondment to improve their skills. “These are strong values of the company and they are important to me.”

Good corporate citizenship is just as important, she believes. Granny Smith is

Bis Industries Unique Haulage Solutions

9,000 Tonnes per day plant throughput Employees are encouraged to improve their skills

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Granny Smith expects 2012 gold production of 200,000 ounces

Barrick Gold: Granny Smith Mine near Laverton, a small town almost entirely dependent on mining and the mine works with the local shire, police, schools and aboriginal communities on many initiatives. “Every one of my managers and superintendents has a community relations initiative each year,” she says. These include traineeship programmes to increase the number of indigenous people working at the mine and sponsoring the Laverton School and the Mount Margaret Remote Community School in an aboriginal community nearby. “We provide a healthy breakfast every morning for those children to encourage them to come to school and have a good attendance record.” Support is also given to the Laverton Leonora Cross Cultural Association, an organisation founded and funded by the mining companies, with an amazing gallery showing local artists’ work.

Other sponsorship includes Auskick, which promotes Australian Rules football among children, as well as netball, cricket and other local sports. Further afield some of the Granny Smith team have worked with the University of Western Australia and the Australian School of Mines at Kalgoorlie. But Shuttleworth never loses her focus. “There are so many opportunities for young people these days: each year we hire new graduates and apprentices and take on university students in their vacation work. I am very keen on getting young people, both men and women, into the industry and helping them on their way.”

For more information about Barrick Gold: Granny Smith Mine visit: www.barrick.com

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Keeping it simple CEO Bruce Griffin talks about the potential of a highly expandable, high-grade mineral sands project in Madagascar

written by: Martin Ashcroft research by: Robert Hodgson

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World Titanium Resources

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WTR expects to move eight million tons of sand per annum

World Titanium Resources

W

orld Titanium Resources a multi-decade development even at large is developing the scale production rate.”

Toliara Sands Project in The Ranobe Project spent six years as a southwest Madagascar. joint venture with Exxaro Resources, during Initial exploration which $17 million was spent on a completed work was carried out in 1999, leading to the pre-feasibility study and most of a bankable discovery of mineral sands at Ranobe and feasibility study. Exxaro terminated the JV further north at Ankililoaka, Basibasy and in July 2009, due to a number of factors Morombe. Further drilling was undertaken including the global financial crisis, the in the next few years and it became clear March 2009 political crisis in Madagascar that the area had the potential to become a and concerns about technical problems with their South African smelter that had significant mineral sands development.

The first phase of development is the Ranobe been envisaged as the destination for the Mine, which is projected project’s minerals.

Following Exxaro’s exit, to produce 407,000tpa of WTR re-examined the ilmenite and 44,000tpa of zircon rich concentrate over business case and opted to an initial 21 year mine life, build a low cost, low risk but the 959 million tonne mine at Ranobe to supply resource at 6.1 percent THM ilmenite, zircon and rutile (total heavy minerals) has the directly to world markets.

Potential mine life at potential to sustain a life of The feasibility study had initial production rate over 100 years at the planned highlighted a high grade initial production rate. portion of the deposit, so it “We have 100 years of was decided to focus initial resource and that’s where the potential value development on this area. is!” says CEO Bruce Griffin. “That’s one of “The primary driver of low cost is high the things I like about this deposit! What it grade,” explains Griffin, “because it means means is that once we have delivered the first you move a lot less material around for a phase, we will be in a position to add real ton of product. We only envisage doing eight additional value by implementing relatively million tons a year of mining, whereas there low cost expansions without rebuilding the are comparable projects that will do over 50 infrastructure. We can do this and maintain million tons a year of sand movement. Our a long mine life. If you have a one hundred low capital and operating cost is basically year resource and you triple production, down to grade.” you still have a mine with a 30 year life! It’s The whole development concept is based not like you’re taking a 20 year mine and on keeping it simple. “Our separation turning it into a six year mine. We still have processes are very basic, using gravity and

100

Years

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epms

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World Titanium Resources magnetic separation with a EPMS Engineering & Project little drying,” he explains.

Management Services The mine will produce EPMS is a progressive project development consultancy sulphate ilmenite, the most servicing the resource sector. With offices in Australia and common form of titanium the UK, EPMS is well placed to service clients in both the dioxide, chloride ilmenite northern and southern hemispheres. and a zircon rich concentrate Since 2008, EPMS’ expertise has been called upon for a diverse range of projects around the globe including mineral that also contains rutile. sands in Australia, Madagascar and Ukraine, iron sands “Titanium dioxide (ilmenite in Indonesia and the Philippines, magnetite in Uruguay, and rutile) is used in pigment Australia and Sierra Leone, and gold in Armenia. production, as feedstock for EPMS’ services include project evaluation, test work titanium metal and welding management, feasibility studies, detailed engineering and rods in the case of rutile,” design, and project and construction management. says Griffin. “Zircon is used www.epmserv.com.au as an opacifier in ceramics and it also has foundry uses as a refractory material and in speciality chemical applications.”

The decision to sell a zircon rich concentrate fits the philosophy of keeping things as simple as possible. Some operations separate the zircon and rutile and sell them as separate finished products, says Griffin, but WTR has chosen not to do that because the separation adds operational complexity. The concentrate sells for around a 20 percent discount to final product value, so it makes sense to sell the zircon and rutile as a concentrate as it allows WTR to minimise the complexity of the project while capturing most of the value.

Employee recruitment for drilling and sampling

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IMLS is committed to supplying professional, practical and consultative services and solutions to mining, industrial, construction and commercial related industries, to the benefit of all its stakeholders. www.imls.co.za

inspired Your weekly digest of business news and views www.bus-ex.com

World Titanium Resources New projects in places like Madagascar can often International Mining and Logistical Services (IMLS) experience difficulties in was founded in 1999, with a commitment to supplying the recruitment of skilled professional and practical services mainly to clients in workers, or in finding locally southern Africa. The IMLS vision is to become the preferred qualified suppliers to satisfy supplier to a number of key accounts through embracing a their service needs. Griffin number of core values, key of which is to recruit and retain the best skilled personnel. believes that WTR will The Group supplies, coordinates and supports a variety of benefit immensely from the projects from a concept stage through to a fully operational major projects being carried entity. Therefore IMLS is well placed to provide services out by Ambatovy and Rio to World Titanium Resources during the evaluation of its Tinto, as they are creating an heavy mineral project in Madagascar. on-going helpful legacy. www.imls.co.za WTR will no doubt need to use some expat workers in the early stages, but the plan is for their specific industry experience to be put to use in training local workers. “Both Ambatovy and Rio Tinto have found that the Malagasy people are very trainable,” says Griffin.

“You can equip them quite quickly with the skills they need to become an effective part of the workforce.”

An interesting example is the contractor that operates the haul road for the Rio Tinto QMM project. “They have no expats left in their operational workforce after less than five years’ operation,” says Griffin. “The operating crew are all locals. They brought in experienced drivers from South Africa for

IMLS

929 million Tonnes of resource at Ranobe Mine Sample prep for Ranobe drilling

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Drilling at Ranobe

A refurbished

“Ninety percent of what you mine is just sand. You pick it up, you take the heavy mineral out and you put the sand back where you found it” three months to drive with a Malagasy in each truck. For the first six weeks the expat did the driving, then for the second six weeks the local was driving and by then they were basically trained up.”

Doing business in Madagascar has changed in other ways, too. “There are contractors and service providers established in Madagascar now that weren’t there five years ago. If you need someone to service a seal on a pump, or

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supply a piece of heavy mobile equipment, it’s more likely now that you can find someone a day away in Madagascar rather than having to bring them in from South Africa or somewhere else. It’s easier for us to work in Madagascar now than it would have been before those projects began.”

As Griffin points out, there are significant differences of scale between Ranobe and these other projects. “We expect our construction

World Titanium Resources

village water well with foot pump

workforce to be in the hundreds, not the thousands,” he says, “and our operational staff, including contractors, is probably going to involve only 300-350 people. It is important we maximise employment in the communities in which we operate.”

From an environmental and social point of view, WTR has to deal with the same issues as any other mine, but the differences in scale are evident here, too. The company recently hired a corporate social responsibility manager who previously worked for Ambatovy. “You can’t do a mining project without making an impact,” says Griffin, “so it’s about how you manage that. Ambatovy had 200,000 people affected by their project, whereas our directly affected numbers are only in the hundreds.

“The other fortunate thing about mineral

Sample prep for Ranobe drilling

sands mining,” he adds, “is that even with our high grade mineral resource, 90 percent of what you mine is just sand. You pick it up, you take the heavy mineral out and you put the sand back where you found it. You rehabilitate as you go, so you don’t end up with a huge hole in the ground at the end of the mine life.”

It ’s no sur prise that the local communities are supportive of the project because they can see it as an opportunity for economic development, but one of WTR’s key focuses is making sure that it maintains their support.

For more information about World Titanium Resources visit: www.worldtitaniumresources.com

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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 54 | BE Weekly

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” 58 | BE Weekly

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

1992

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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

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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

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Daring to diversify ChemSystems has been a fixture of the chemicals industry for over five decades. Sales director, Laurence Davies, and business development manager, Charles Du Bois, discuss how the company is now making a name for itself in the oil and gas sector

written by: Will Daynes research by: Will Kirby

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ChemSystems

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Houghton BOP

ChemSystems

A

key component of the and Constructichem (a division focusing on country’s industrial base, the construction sector). What ChemSystems South Africa’s chemical also possesses is three distinct models in industry is the largest of its which it does business, these being direct kind in Africa. Globally, the trading, manufacturing under license and chemical industry boasts an estimated value manufacturing its own IPM technologies. of more than $4 trillion and while Africa’s “One of the biggest contributing factors to contribution to this has been relatively small our success over the years,” Davies continues, to date, the chemicals sector is expected to “is that we have always employed individuals play an increasingly important role in African who are experts in the chosen fields in economies in the decades ahead. One of the which we operate. This has allowed us to factors that is expected to help drive this offer our customers high value-add technical demand for chemical products and solutions support. Such capabilities are all the more important when you consider the fact that, is the growth of the oil and gas sector.

One company that has as a company, ChemSystems witnessed first-hand the doesn’t simply sell a product, dramatic industrial changes it sells solutions.” that have occurred in the Being a local manufacturer, region during its 50-plus year ChemSystems possesses a history is ChemSystems. A certain degree of flexibility that has allowed it to tailor $46 million company in its its offerings to customers own right, ChemSystems is The value of one of 13 chemical companies throughout the years as the ChemSystems belonging to the AECI Group market around it has evolved.

(African Explosives and In addition to having a strong Chemical Industries), which is listed on the presence in its home market of South Africa, the company has also gained significant access Johannesburg Stock Exchange.

“As one of the older companies within to sub-Saharan territory through various the AECI cluster,” explains sales director, technology and distribution partnerships, Laurence Davies, “we have a long history in giving it a large area of opportunity to pursue. the field of industrial products.” A diverse “While it is important to note that a large business, ChemSystems’ operations are split proportion of our market remains orientated into five, very different, divisions. These towards mining, indeed around 80 percent include Status Industrial Solutions, Capital of our African business does still stem from Polymer Additives (additives for polymer this sector,” Davies highlights, “what we industry), SA Silicones (silicone based have seen in more recent times is a spike in products for a wide range of industries), interest towards oil and gas following large Applied Solutions (the foundry industry) discoveries that have been made off the coasts

$46

Million

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$4 trillion The estimated value of the global chemicals industry

Molykote bolted connections

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of South Africa, Angola and Mozambique.”

These events have in turn led to ChemSystems shifting its focus towards the oil and gas industry. By getting a better understanding for this market and the type of solutions it can provide potential customers, the company has been able to put together a suite of products that it is able to present to the offshore oil and gas sector.

ChemSystems holds technology and manufacturing license agreements with a number of leading chemical and lubricant producers including the likes of Castrol and Houghton International. “Houghton International,” states business development manager, Charles Du Bois, “is one of only a handful of companies that supply offshore fluids that are used in sub-sea control units, compensator units and blow-out preventers (BOP). These are products that are of the highest quality, are used by drilling companies across the globe and we are very proud to be able to offer them to our customers.”

In addition to the Houghton off-shore fluids, a comprehensive fluid test kit is available and fluid sample analysis programmes can be implemented to ensure that the fluid properties remain within specification. These analyses also allow

ChemSystems

Molykote lubricants are extremely effective

it to investigate fluid deterioration and to implement the corrective measures. Systemcleaners are available from Houghton in case of fluid contamination whereby systems need to be flushed. Houghton also offers a full range of corrosion protection products for oil field tubular.

Another series of products that are of particular importance to ChemSystems come under the name of Molykote. Created by the company Dow Corning, these products are used to lubricate threaded connections and flanges, and are commonly used to maintain rig equipment that operates in aggressive,

logistically challenging environments. “Dow Corning,” Du Bois says, “has had great success with these products in the North Sea, where the likes of Statoil and Shell have become users of Molykote. It is with this in mind that we see a great deal of potential for this brand throughout Southern Africa.”

The Molykote lubricants are extremely effective on those applications where there is very low relative motion in conjunction with very high loads, for example splines, bolts or nuts, pins and bushes, and press fit applications. The use of these products significantly improves the workshop and on

“ChemSystems possesses a degree of flexibility that has allowed it to tailor its offerings to customers throughout the years as the market has evolved” be weekly | 67

site safety during assembly and disassembly of equipment and components.

For almost 30 years, ChemSystems has been involved in the fire fighting industry, manufacturing fire fighting foam concentrates, and today holds a technology partnership agreement with the German company Dr Sthamer. “As you can imagine,” Davies states, “fire is an ever present risk in the oil and gas sector, and as such companies

go out of their way to protect their assets accordingly. What we do is produce a range of globally approved fire fighting concentrates.

These products are made under license in South Africa and meet all the global fire protection association standards.”

In addition to the aforementioned products and solutions, the company also represents Chemetall, selling non-destructive testing penetrates into a number of industries, oil

“ChemSystems holds technology and manufacturing license agreements with a number of leading chemical and lubricant producers”

Fire is an ever present risk in the oil and gas sector

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ChemSystems

ChemSystems produces a range of globally approved fire fighting concentrates

and gas included. These products are used to identify defects in vessels, pipelines and other items of equipment that need to undergo regular integrity checks.

Then there are the products that ChemSystems develops itself using its own technology. These include its Marine range of solutions that include oil dispersants.

The company also produces a selection of cleaning and maintenance products and microbiological treatments, a range of corrosion inhibitors and descalers and carbon removers.

In its home market of South Africa, ChemSystems oil and gas related activities

continue to expand at an impressive rate. It is at times like this that a company such as ChemSystems, being a relatively new player in the market, benefits greatly from having other well entrenched players around it that it can draw knowledge from.

One of the reasons that ChemSystems finds itself in such a position is through its membership of the South Africa Oil and Gas Association (SAOGA). “SAOGA,� Davies enthuses, “provides us with the ability to network with others in the industry, gain a better understanding of the market and establish potential future partnerships.

It also provides us with an excellent

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opportunity to showcase our own products and services to the right people.”

The success the company continues to have in South Africa by no means suggests that it doesn’t recognise that there are a host of opportunities further afield. Indeed, two particular parts of Africa are becoming of increasing interest to ChemSystems, those being Angola and Mozambique.

“Angola,” Davies says, “is a country experiencing a great deal of activity at present. It is with this in mind that we are working hard to get a better understanding of this unique market. Charles himself recently spent some time in the country forging relationships with potential partners.

Similarly, we are looking to identify logistics partners in order to make our product offering as price competitive as possible.”

Research of this nature is also being undertaken as it relates to Mozambique, a market that is still very much in its infancy when it comes to oil and gas. “What we hope to do,” Du Bois says, “is take the lessons we have learnt, and will learn, in Angola, which is a market that is further ahead in terms of industry development, and apply them to Mozambique.”

The sheer potential for Africa’s oil and gas sector to become one of the most important

in the world should be reason enough to believe that a very promising future lies ahead for ChemSystems. However, if any further proof were needed one only needs to look at the company’s ability to diversify itself over the years.

“What we have,” Davies goes on to say, “is a level of flexibility that allows us to change our market focus and product offering fairly rapidly.

“In its home market of South Africa, ChemSystems oil and gas related activities continue to expand at an impressive rate” 70 | be weekly

ChemSystems

ChemSystems has been shifting its focus towards the oil and gas industry

This makes us highly versatile and able to adapt accordingly as customer needs and business trends change. In truth, as recently as ten years ago we probably wouldn’t have predicted moving into the oil and gas sector, but as that market has expanded we have been able to respond in a way that allows us to concentrate more of our efforts on such industries that we see as having a longer lifecycle.”

That is not to say that ChemSystems no longer wishes to be involved in a mixture of markets, but what it does highlight is that, as well as wanting to protect the strong position it already holds in these, the company will continue to seek out new growth opportunities as they arise.

“Today,” Davies concludes, “ChemSystems

exists as a strong player within the South African chemicals sector and we want to build on that. We see a large part of our future being driven by our ability to spread out further across Africa. This won’t be a quick or easy process, and may require us to adapt our business model slightly in some regions, but it is one that we see as being of great benefit to us as we recognise that a large portion of our future is going to be intertwined with the future growth of Africa as a whole.”

For more information about ChemSystems visit: www.chemsystems.co.za

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Always moving

Boasting a national footprint in South Africa, with transp Town, Durban, Johannesburg and Tzaneen, Imperial Logi Services (ILRS) today exists as South Africa’s ‘first to mar

written by: Will Daynes research by: Candice Nice

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Imperial Logistics Refrigerated Services (ILRS)

ing forward

port depots in Cape istics Refrigerated rket’ service provider

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Imperial Logistics Refrigerated Services

F

ILRS is a part of the wider IMPERIAL Group

ormed in July 2010, following the consolidation of Fast ‘n Fresh, Liebentrans, Kobus Minnaar Transport and the broking division of Wilco Transport into one entity, ILRS was created specifically to package the service offering of Imperial Logistics Consumer Products for the temperature controlled FMCG market. This work requires the handling and transportation of time and temperature sensitive products, a task ILRS is able to expertly manage by providing an integrated, comprehensive service to its customers.

ILRS is a part of the wider IMPERIAL Group, a diversified industrial services and retail organisation, operating in Africa, Europe and Australia, and listed on the Johannesburg stock exchange. Run on a decentralised management structure that actively encourages innovation, entrepreneurship and the use of industry specific best practices, IMPERIAL employs more than 40,000 people around the world who it credits with responsibility for the growth and continued prosperity of the group.

By providing primary and secondary refrigerated transport services, tactical planning and detailed business analysis of current supply chains, ILRS has, in a short space of time, created a proven track record in successfully managing and maintaining the integrity of the cold chain. In addition to the company’s strict adherence to, and management of, service level agreements (SLAs) relating to time and temperature

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Imperial Logistics Refrigerated Services

ILRS has revolutionised South Africa’s refrigerated logistics market

sensitive perishable goods, ILRS’ operations are further supported by its flexible fleet of vehicles that provide it with the ability to upscale in order to handle work during the most demanding of peak periods.

Upon the company’s formation in 2010,

it put into action a new strategy for growth that has since gone on to revolutionise South Africa’s refrigerated logistics market.

This strategy saw the company introduce a fourth party logistics provider to its operations. Consisting of what is essentially

“ILRS has identified the next big area of growth to be the complete outsourcing of logistics services” be weekly | 77

The next generation in transport refrigeration The new range SLXe reflects Thermo King’s depth of experience and expertise, from being pioneers to becoming leaders in the field of refrigerated transport.

Cutting edge technology optimises productivity by delivering low operating costs and maximum load protection.

The new SLXe brings significant innovations to maximise profitability while minimising environmental impact within a sustainable transport and delivery process.

GEA Refrigeration Technologies (Pty) Ltd. 19 Chain Avenue, Montague Gardens, 7441, RSA Phone: +27 21 555 9000, Fax: +27 551 4036 transport-sa@gea.com, www.gearefrigeration.co.za

engineering for a better world

GEA Refrigeration Technologies

Imperial Logistics Refrigerated Services

ILRS ensures that its vehicles are filled for their return journeys

a single office, the provider’s task is to match companies looking for transport with those that have said transport facilities and are looking for commodities to move.

The use of this service has allowed ILRS to improve its return on investment ratios and ensure that its vehicles are filled for their return journeys. Perhaps more importantly, this service has helped the company GEA Refrigeration bu i ld even st ronger GEA Refrigeration is proud to be associated with Imperial relationships with reliable Logistics Refrigerated Services, who are one of the leaders smaller operators. This in in the refrigerated transport industry. As a supplier of turn has resulted in ILRS the Thermo King Refrigeration units to IL-RS, we have to increase our service levels and adapt to the high being able to utilise the benchmark IL-RS are setting in the market place. services of these operators It is extremely important to understand your customer’s without having to invest business to be able to supply the correct product. The new further in its own assets. range SLXe reflects Thermo King’s depth of experience and By ta k i ng a w ider expertise, from being pioneers to becoming leaders in the view of both the global field of refrigerated transport. logistics market and the www.gearefrigeration.co.za rapid growth of that same

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SERCO AT THE FOREFRONT OF TECHNOLOGY

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Durban: 031 508 1000 I JHB: 011 397 8993 I Cape Town: 021 959 7660 Email: info@serco.co.za I Website: www.serco.co.za

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Supported by national manufacturing and after-sales repair service 36-month warranty.

COOL FOR

SPECIALIST MANUFACTURERS OF: Truck bodies and trailers that are relied upon by leading transport operators • Fibreglass dry freight and refrigerated vehicles offering superior strength and corrosion resistant panels • New generation ‘Super Reefer Lite’ which offers a substantial weight reduction

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particularly interested in concepts available in this area.”

Other trends were aero dynamic packages to reduce fuel costs and carbon footprints; increasing use of electronic braking systems and telematics to improve route management, safety and maintenance control, and the installation of cameras or park distance controls to assist drivers with docking and reversing.

Back home, a major development for Serco was the purchase of 13.4 hectares of land in Johannesburg to accommodate future expansion.

Meanwhile, Serco has introduced an innovative fuel saving accessory for their semi-trailers in the form of innovative aerodynamic side skirts developed by Freightwing in the US, which can be fitted to trailers resulting in a fuel saving of between 4% and 6% and an accompanying reduction in carbon dioxide emissions. The accessory helps reduce wind drag under the trailer and is particularly suitable for long distance transport.

Holcroft says the lightweight flexible plastic panels have a smooth finish, providing an ideal surface for branding. “The side skirt concept is used in the United States where fuel savings of 7.45% were achieved. The under body skirts are designed to bend and bounce back from minor collisions; flexibility is important because the lower you get to the ground, the more fuel is saved.”

The Freightwing offered an attractive answer because it addressed green house gas emissions and fuel efficiency.

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Serco aims to extend the positive trend in the transport industry into the New Year by introducing exciting new developments.

Serco MD Clinton Holcroft says by offering practical solutions and adding value to their customers’ business, they will continue to build stronger partnerships with clients. “With this in mind we visited the 2012 IAA Commercial Vehicle Show in Hanover earlier this year where the theme was Driving the Future.

We returned with several interesting solutions we look forward to presenting to our customers.

“Very evident was the high standard of the vehicles on show and the emphasis placed on energy efficiency,” said Holcroft. “Food safety in Europe is at an advanced stage and great care is required to ensure product is transported at the correct temperatures, making use of load dividers and telematic systems to keep track of this.

“South Africa’s legislation is very stringent, particularly the new Consumer Protection Act, which I believe makes it vital for transporters to have tight temperature control over the products going into their vehicles.”

Holcroft says another area of importance is load securing. “With an increasing number of our customers introducing trolleys, we were

Imperial Logistics Refrigerated Services

Fast ‘n Fresh became part of ILRS in 2010

sector within Southern Africa, ILRS has The particular model that ILRS has identified the next big area of growth developed includes providing in-depth to be the complete outsourcing of analysis of the logistic requirements of its existing customers, based logistics services. In the vast majority of developed on the detailed information countries, and an ever provided by the company i nc reasi ng number of in question and ILRS’ developing territories, this own experience of current model already operates operational processes. The Employees of the extremely well, delivering company has also been able IMPERIAL Group significant efficiency and to draw on the expertise of worldwide cost savings. other divisions within the

40,000

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The scope of work provided by Big Bodies is as follows All accident damage repairs to components such as: • Driver cabins • Bus bodies and bus interiors • Heavy vehicle chassis • Vehicle and trailer axles • Load bodies • Crane booms on mobile cranes • Heavy axles on items such as combine harvesters Non-accident related repair work resulting from normal wear-and-tear brought about from day to day operations. This includes items such as: • Straightening and laser alignment of vehicle and trailer chassis as well as of vehicle and trailer axles • Wheel alignment.

• Total refurbishment of all category mid-range to heavy vehicles.

We wish to point out that whereas our focus is on the heavier section of the commercial vehicle spectrum we are fully equipped and structured to also undertake the same range of repairs to any mid- and medium-sized vehicles (such as Sprinters and light trucks) and are therefore positioned to provide a complete one-stop-solution to fleet owners or individual operators.

www.bigbodies.co.za

You bend them and we mend them, big or small we fix them all.

Imperial Logistics Refrigerated Services

ILRS has brought together different cultures and approaches

Imperial Group such as the Integration Services division, which has particular expertise in supply chain optimisation, and amalgamate all the findings to devise a detailed total logistics offering.

As one of the first such proposals to

appear in South Africa, perfecting this strategy has been a huge undertaking for ILRS, with the company drawing on the theory and practice developed by world leading organisations such as Walmart, as well as the skills and knowledge

“Going forward, the plan is to continue with well-established customers where a relationship of trust has developed over a long period of time� be weekly | 83

NEW ERA We provide a prompt, professional, and efficient service tailor made to the business needs of our clients.

Our Core Offerings • Payroll and Administration • Resourcing and Recruitment • Management • Staff Shuttling • Staff Development For more information visit us at www.newerar.co.za or www.neweratransport.co.za

Imperial Logistics Refrigerated Services of the Imperial Group.

New Era Recruitment Going forward, the plan In 1998, Brent Newton established New Era Recruitment is to continue with wellwith the intent to create a company that catered to the establ ished c ustomers needs of its workers. The labour hire industry as a whole where a relationship of lacked outstanding service delivery, and Mr. Newton trust has developed over committed to changing that. After 14 years of exceptional a long period of time, and service delivery, one could look back and agree that he accomplished his goal. then ultimately to take the With phenomenal growth and development, New Era concept out into the wider expanded nationally with offices in Gauteng and Kwazulu marketplace.

Natal. The general consensus amongst clients when asked As a relatively new about their experiences with New Era is that services are company still, ILRS not only found to be efficient, reliable and consistent with staff has an ambitious vision ranging from management to administrator, all willing to go for the future, but it has the extra mile. www.newerar.co.za | www.neweratransport.co.za also spent a considerable amount of time and effort aligning the four original companies into a single entity, managed of bringing together the different cultures from its head office in Cape Town. Much and approaches. of this work has involved the softer issues Alongside this the company has tackled

ILRS has an ambitious vision for the future

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Seen

Contact us today and put your company in the spotlight!

vincent@bus-ex.com ILRS invests in the latest vehicles

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Imperial Logistics Refrigerated Services

“Today, ILRS is a thriving business, boasting a long list of satisfied customers” some of the basic structural integration issues by analysing the IT systems and operational requirements of the four original companies and drawing up a plan that will allow them to completely harmonise their processes and cultures while continuing to provide a top quality service.

More recently the company has invested in a fleet of vehicles that are the first trucks in South Africa to possess Euro V specification engines. Moves such as this are allowing ILRS to make an impact in ‘green logistics’ by leveraging a biofuel blend, zero emission refrigeration technology and biodegradable cleaning detergents.

Today, ILRS is a thriving business, boasting a long list of satisfied customers including the likes of Capespan, Dairybelle, Famous Brands, Freys Food Brands, Nestle South Africa and Rhodes Food Group. What makes this list all the more impressive is that it has been accumulated over the course of less than three years and is only likely to grow as time goes by.

For more information aboutImperial Logistics Refrigerated Services visit: www.imperial.co.za

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