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BusinessExcellence Weekly ISSUE No. 38 | www.bus-ex.com

Norilsk Nickel:

A mainstay

in mining The success of Norilsk Nickel and how core markets are continuing to be vital sources of growth

mining indaba event preview:

zincox resources:

zodiac aviation:

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

Be seen throughout our portfolio of magazines: •BE Mining Directory •BE Mining •BE Weekly •BE Monthly •

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

business excellence contact us DESIGN

Matt Johnson Art Director mjohnson@bus-ex.com Louise Culling Production Designer lculling@bus-ex.com


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



editorial Martin Ashcroft Editor In Chief

Martin has edited business magazines for 15 years and has been editor-in-chief since Business Excellence began in 2006. mashcroft@bus-ex.com

Will Daynes Editor

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


Thomas R. Cutler is the President & CEO of Fort Lauderdale, Florida-based, TR Cutler, Inc. Cutler is the founder of the Manufacturing Media Consortium including more than 4000 journalists, editors, and economists writing about trends in manufacturing, industry, material handling, and process improvement. Cutler is a member of the Society of Professional Journalists, Online News Association, American Society of Business Publication Editors, and Committee of Concerned Journalists.

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be weekly | 3

issue No.38 6 Automation

Automation in retailing

The lessons of ergonomics learned in manufacturing plants and distribution centers are rapidly being put to use in retail operations.

12 Distribution

Best practice in distribution

The rapid rise in the number of products available requires new delivery systems to improve driver longevity and fleet efficiency.


20 Food safety

Food for thought

Best practice in document management drives quality and business performance in the food industry.


28 Event preview

Mining indaba

Aligned to South Africa’s employment and growth initiatives in business tourism.


36 Norilsk Nickel A mainstay in mining

The factors that have contributed to the success of Norilsk Nickel and how core markets, particularly Africa, are continuing to be vital sources of growth.

4 | be weekly

contents 46 Amlib

Exploring a new frontier How Amlib is working to help fulfil Liberia’s great economic potential.


54 VALE Brazil

Simply ore-inspiring A monumental project, possessing over seven billion metric tonnes of iron ore reserves.

64 ZincOx Resources Game changers

How ZincOx utilises a revolutionary form of technology to recover zinc from electric arc furnace dust.

74 Ocean Basket

Reeling in the customers


By aligning itself to the changing demands of its customers, Ocean Basket remains a true success story.


82 Zodiac Aviation Support, Inc. In-flight service

Building customer and passenger loyalty with reliable expertise at competitive pricing.

BE Directory 92 cyclone projects & consulting

world best practice

94 mes international ltD a ‘can do’ company

be weekly | 5

written by: Tho


The lessons of ergonomics lear and distribution centers are ra operations by companies lik

6 | BE Weekly


omas R. Cutler


rned in manufacturing plants apidly being put to use in retail ke Retail Handling Solutions

BE Weekly | 7


he Retail Industry Leaders Association ( R I L A ) conducted an important distribution automation benchmark survey which explored how successful retailers use automation in logistics and distribution systems. Issues related to the state of automation, satisfaction with previous automation, leading practices, metrics, and key trends revealed the drivers behind automation, operational issues that justify automation, impediments to automation, skills required to support automation, and plans for future automation. Similarly, the National Retail Federation (NRF), addressed automation among retailers of all types and sizes from the United States and more than forty-five countries abroad including department stores, specialty, apparel, discount, online, independent, grocery and chain restaurants, among others. According to NRF, retailers operate more than 3.5 million US establishments that support one in four US jobs – 42 million working Americans. Contributing $2.5

8 | BE Weekly

trillion to annual GDP, retail is a daily barometer for the nation’s economy. Keeping these retail employees safe is vital; learning the lessons from manufacturing and distribution essential. The lessons of ergonomics in plants and distribution centers are now growing rapidly at retail operations. Shelf stocking requires automation “The way retailers stock shelves has not changed greatly over the past century,” says to Brian McNamara, founder of Retail Handling Solutions, based in Falmouth, Maine. He concedes that the process is time-consuming, labor intensive, and fraught with productivity road blocks and the potential for injury and product breakage. With all the advances made in other areas of the store, this key operation function has been largely ignored. (Retail Handling Solutions is focused on making this critically important job faster, safer, and easier.) Product display & promotion Presenting products in attractive, neat, displays

“The way r stock shelv changed gr the past c

retailers ves has not reatly over century”

Automation with clear signage is a proven technique for increasing sales. Unfortunately, this is more difficult than it sounds, and rarely a concern at the manufacturing or distribution center level. Placing pallet loads on the floor can get messy and display requires constant attention and replenishment. Cardboard signage is often f limsy a nd almost never reusable. One solution is the ADS Box (pictured inset), a product display and promotion system. It is a floor mounted, fully portable, four sided in-store display box which continuously repositions the remaining goods on a pallet at the convenient height of a shopping cart as the displayed products are removed by the consumer. In addition to maintaining goods at a comfortable, convenient height, ADS Box also provides retailers with a 4-sided customizable “billboard” that can be used to further promote its contents. Shoppers are offered a bold, clear product message while

never needing to bend or lift the goods into shopping carts. ADS Box is completely reusable, minimizes display material refuse and will last for years. Changing displays is simple and can be done in seconds. Products can be loaded into the display box with a fork truck, pallet stacker, or by hand. Stocking can be done on the store floor or out back. The box is easily moved by pallet truck around the store and just as easily transferred to a different store. The design is shopper friendly, store rugged, and requires almost no store maintenance. Palletizing/ depalletizing Pallets are everywhere. While manufacturers and distribution center personnel are accustomed to this situation, the typical grocery store receives hundreds of pallet loads per week. According to McNamara of Retail Handling Solutions, “They are faced with the job of getting goods from the pallet to the shelf. Whatever

BE Weekly | 9

“Level loading requires consideration in the retail environment, that manufacturers and warehouse distribution center executives neglect to consider” method is used, it involves breaking down pallet loads which is time consuming, difficult work.” Here are just a few of the problems associated with manually unloading pallets: • Frequent bending, reaching and stretching • Awkward posture when lifting loads • Walking around pallets in tight quarters to access loads on the far side • Worker fatigue • Increased risk of injury.

PalletPal Level Loader

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McNamara suggests that the solution for these retailers is a PalletPal Level Loader which makes the job of loading and unloading pallets faster, safer, and easier. These unique devices have been used in thousands of manufacturing and warehousing facilities for over twenty years. They use an internal spring mechanism to automatically

Automation adjust the height of pallet loads as boxes are added or removed. Simply by allowing workers to load and unload at a comfortable height and posture dramatically reduces fatigue and the risk of injury. • Works with pallet loads from 400 - 4500 lbs. • A u t o m a t i c spring mechanism requires no power • Turntable with anti-friction bearings allows employees workers to spin loads so they are always working on the nearside • Compact design fits tight spaces - The PalletPal 36” x 36” footprint is smaller than a standard pallet • Stable base design requires no lagging - works on uneven floors. Level loading often requires special considerations in the retail environment, that manufacturers and warehouse distribution center

42 Million Americans working in retail executives neglect to consider. McNamara suggests a simple, automatic unit which uses a system of springs and shock absorbers to lower and raise loads as boxes are added or removed from pallets. A turntable allows nearside loading and unloading. No power or air supply is required. Pallet loads up to 4,500 pounds can be handled. • Rugged tubular steel frame for loads up to 4,500 lbs. • H eav y- dut y spr i ngs calibrated to bring pallet to most convenient loading and unloading height • P roven linkage design maintains level under uneven loading • Dampener provides smooth,

Thomas R. Cutler is the President & CEO of Fort Lauderdale, Florida-based, TR Cutler, Inc. Cutler is the founder of the Manufacturing Media Consortium including more than 4000 journalists, editors, and economists writing about trends in manufacturing, industry, material

gradual raising and lowering action, without overshoot or spring bounce • L ow-friction bearing supported turntable for near-side loading and unloading • Phenolic frame cover (optional) • Fork pockets for relocation by fork truck also extend base for free standing stability • L eveling feet (optional) allow use on sloping or uneven floors. • Free standing, can be easily relocated by fork truck. Automation has long been utilized in the manufacturing and distribution world; this fact was often instigated by regulatory compliance, OSHA, and fear of other punitive fines and assessments. Worker safety is in everyone’s best interest and that reality is quickly at the doorstep of retailers worldwide.

handling, and process improvement. Cutler is a member of the Society of Professional Journalists, Online News Association, American Society of Business Publication Editors, and Committee of Concerned Journalists. trcutler@trcutlerinc.com

BE Weekly | 11

Best practic

in distributio 12 | BE Weekly




The rapid rise in the number of products available requires new delivery systems to improve driver longevity and fleet efficiency

written by: Thomas R. Cutler BE Weekly | 13



he beverage industry has seen an explosion of new products and SKUs in recent years as craft brewers assume a larger market share and electronic inventory management becomes more critical. These data result in a new complex reality about truck loading and delivery. As fuel costs rise, it is increasingly essential that distributors make effective use of space, manpower, and trucks. These factors have generated a need for more efficient and flexible delivery systems. Industry changes like warehouse automation, SKU proliferation, and an increase in alternative store types, along with work force dy na m ic s, combine to necessitate route distribution systems that increase productivity and decrease operating

costs. New lift-pallet systems offer the biggest promise for supporting product innovation in the marketplace. Customer demand for package and size options The need for improved route distribution systems results from extraordinary growth in the number of product innovations. Food and beverage segments have seen the greatest growth, with chips now available in twelve or more flavors, to beers offered in different sizes (with multiple flavors in each size), to a boom in single serve packages; customers are purchasing a much wider variety of products. This change in how consumers want to purchase has introduced complexity into the supply chain, with resulting impacts to warehouse management systems as well as route

“The change in how consumers purchase has introduced complexity into the supply chain”

distribution systems that get the goods onto the shelves. The rapid rise in SKU growth from increased product options over the past few years is illustrated below. The average number of SKUs on a route has more than doubled between 2003 and 2011. This increase makes it more difficult to move goods through the supply chain and is causing the need for innovation in route distribution systems. The two-wheel hand truck in use since the 1940s is not sufficient and store managers believe distribution equipment is taking up valuable aisle space, creating a desire to get product delivered to the shelf faster. “The SKU proliferation has intersected with the need to speed up delivery by taking it out of the route drivers’ hands,” noted Greg Ecker, executive vice president of Magline. “Those companies which efficiently pre-pick and package the large number of different items in the warehouse differentiate themselves by meeting the growing demand for packaging variety.”

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Best practice in beverage distribution Watkins Distributing Sales and Service, a family-owned and operated distribution business in Idaho, was investigating ways to improve efficiency and driver longevity. Watkins has more than 130 employees and delivers approximately four million cases of beer per year. Wat k i n s began e x p e r i me nt i n g w it h warehouse and delivery changes several years ago. Like other beverage distributors looking for best practices, the company delivered for major companies like AnheuserBusch, as well as shipments for craft breweries, such as Craft Brewers Alliance and Firestone Walker. The variety of beverage products being delivered required Watkins

4 Million Cases of beer delivered by Watkins Distributing Sales and Service to organize both warehouse and trucks quickly and effectively. The company began to phase out 16- and 18-bay trucks, typically sideload, in favor of end-loader trucks with lift gates. Convenience stores and large grocery stores Cont i nued process improvement mandated that the company find easier methods for drivers to deliver products at their many stops. Watkins experimented with various options, including

pallet jacks, six-wheel carts, and the Magliner CooLift Delivery System. These new pallets are smaller than traditional pallets; CooLift holds about 35-50 cases, as opposed to up to 75 cases on a regular pallet. Larger traditional pallets require the assistance of an electric pallet jack, however, and cannot fit into the back rooms of most convenience stores. Watkins found that these smaller pallets allowed them to create “hybrid� routes, tailored to the realities of this delivery model. According to Mitch Watkins, president of Watkins Distributing, “We have a lot of routes where a driver has to deliver to ten smaller stores and one or two large grocery stores. The smaller pallets are perfect for the convenience

Impact of SKU growth on delivery and warehousing Side load aggregate build





Average # of unique SKUs at distribution center





Average # of SKUs on route





Average # SKU picks per customer stop





Source: Magline

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“We have a lot of routes where a driver has to deliver to ten smaller stores and one or two large grocery stores” stores, because the driver can roll the pallets right through the front door and into the back room before he even has to touch a case. Meanwhile, we can also load regularsized pallets for the grocery stores, next to the CooLift pallets on the truck. It allows

us to be flexible and pack for different kinds of routes.” The system allowed product to be delivered to the store with a 50 percent reduction in driver product touches. At the delivery location, drivers transfer product to the final destination through The Magliner CooLift delivery cart

a standard sized door, unlike with full-size pallets, because of the pallets’ compact size. The system was designed around the footprint of getting through a doorway easily, maneuvering store aisles, and turning in tight radius corners. The system’s pallet height is 13.5 inches, judged by major ergonomic studies as the best height from which to lift products, as compared with a standard pallet height of 4-6 inches. Customers have reported an astounding 60 percent reduction in worker lost time events, directly tied to the driver avoiding bending when lifting a case of product. Happy drivers yields best practice delivery Watkins ran an in-house comparison with six-wheel carts and hand carts, and drivers responded most favorably to CooLift. With

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“The shrinking workforce means tenured employees tend to stay on the job longer” hand carts, every case still had to be transferred one at a time onto a hand cart. Drivers had to wheel that cart into the store, move the empty cart back to the truck, and manage the empty carts as they accumulated over the route. A convenience store might receive a hundred cases in a delivery and a driver will typically have to go back and forth from his truck eight times before checking with the manager. Afterward, there is still an additional eight to ten runs into the cooler to put product away. Watkins reported that with the new solution drivers had a lot less physical and organizational stress and strain. When drivers do not have to pull every case of beer off a truck one at a time drivers deliver more stops with less impact on their bodies. Several pallet lengths with differing weight capacities are available, which

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optimizes space on the trailer as products can be “cubed” out most efficiently on the truck. The optimum build on the pallet can optimize space on the trailer. The system has been in use for several years and several new innovations to increase warehouse productivity have been introduced, based on process observation and customer feedback. For example, a pallet adapter tool allows the warehouse to use a forklift or walky rider to move two pallets at once from a warehouse picking process. With more than 1000 of the systems on the ground, customers

15% Increase in overall productivity using the CooLift system

reported an increase of about 10 percent in the number of deliveries made, with about a 20 percent increase in product moved by each vehicle, for an overall productivity increase of about 15 percent. Fewer trucks on the road result in smaller fuel bills, and less physical impact on the driver. Attracting and retaining employees At the same time as SKUs are proliferating and new outlet types are developed, there


is a growing concern about the employees performing distribution jobs. Seeking produc t iv it y gains, companies have turned to warehouse automation, which is resulting in fewer trucks and trailers out on

the road and a potentially shrinking workforce with fewer route distribution drivers. The shrinking workforce means tenured employees tend to stay on the job longer and, as the workforce ages, it becomes

Thomas R. Cutler is the President & CEO of Fort Lauderdale, Florida-based, TR Cutler, Inc. Cutler is the founder of the Manufacturing Media Consortium including more than 4000 journalists, editors, and economists writing about trends in manufacturing, industry, material

more difficult to do the work at the same level with the amount of bending and twisting involved. These new best practice solutions keep dedicated hardworking delivery drivers on the road.

handling, and process improvement. Cutler is a member of the Society of Professional Journalists, Online News Association, American Society of Business Publication Editors, and Committee of Concerned Journalists. trcutler@trcutlerinc.com

BE Weekly | 19

Food thought


20 | BE Weekly

Food safety

d for

written by: Thomas R. Cutler

Best practice in document management drives quality and business performance in the food industry, as JIFFY Mix maker Chelsea Milling can testify

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he Center for Disease Control (CDC) estimates that each year roughly one in six Americans (48 million people) gets sick, with 128,000 being hospitalized and 3,000 who die of foodborne diseases. Food companies are quickly discovering that the right ingredient, with the best specifications, at the lowest risk and the best price, equals maximum knowledge and leverage. Relying on quality and food safety departments to provide supplier performance feedback is no longer sufficient. Instead best practice food industry leaders are sharing an information platform with food safety quality assurance (FSQA) departments that provide real-time insights on supplier performance. These data ensure that suppliers are meeting company specifications, compliant with all company business requirements (such as allergen, kosher, or halal documentation). Instead of evaluating supplier performance purely based on cost and on-time delivery,

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companies must further measure how well suppliers perform against other critical business needs. A leader in food industry supplier document management platform, TraceGains’ CEO, Gary Nowacki, suggested the paradigm has shifted and that full insight on supplier performance at the corporate, lot shipment, and ingredient attribute levels is the best

3,000 People who die of foodborne diseases in the US every year methodolog y ensuring food safety and business information. This consolidated view of data typically resides in multiple departments, formats, and silos. Automated purchase order acknowledgement solutions further assist in the planning of purchases and inventory. Armed with supplier performance data for risk, compliance, and cost industry sector leaders, such

as Chelsea Milling (makers of JIFFY Mix) are able to source the exact ingredients with the exact specifications when needed; this practice optimizes inventory and keeps the lines going. The Chelsea Milling Company is a 110 year old family-owned business, with a mantra to provide the highestquality affordable product. The company is a complete vertical manufacturer; it stores the majority of the wheat it uses, processes it into flour for production, and manufactures its own packaging. It ships over 150 million pounds of JIFFY Mixes per year, and its products are available at over 30,000 retailers and foodservice outlets. Chelsea M i l l i n g ’s commitment to customers means extra attention to quality. But insuring that all suppliers continuously comply with all quality requirements meant that Chelsea Milling staff members were swamped with manual tasks. The company needed a solution that permitted 24/7 quality control without adding personnel or compromising on quality.

Food safety

Chelsea Milling was challenged by too many certificates of analysis (COAs) that needed to be manually checked against the firm’s ingredient specifications. Manual and inefficient processes to retrieve data to support customers’ GFSI audits required additional effort. The inability to predict future performance or to evaluate suppliers on more than price and on-time delivery was troublesome. There was no early warning of impending problems, which

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meant operating reactively instead of proactively. “When suppliers are out of compliance or nearing a violation,” said Nowacki, “the system automatically initiates supplier corrective action requests (SCARs), sends eNotifications to both internal and supplier personnel, and can automatically place suppliers on probation, suspend them, or reject any of their shipments.” The solution also measures the financial impact of noncompliance and monetizes

the potential damage done in areas such as manufacturing efficiency, finished goods quality, and product safety. It provides a comprehensive purchase order acknowledgement tracking function, with alerts for supplier late or shortshipments that may cause supply chain disruptions. Supplier document management impacts Average certificate of analysis latency (receipt of COA after material received)

Food safety

“When suppliers are out of compliance or nearing a violation, the system automatically initiates supplier corrective action requests” at Chelsea Milling was reduced from 22.3 days to same-day. The company now deals with problems before they are introduced into its supply chain. Proactive quality, food safety, and risk management are standard operat i ng procedu re.

COAs are no longer just backup documents used to investigate problems; rather they have become instant alerts to potential issues. Digitizing COAs and making them actionable has resulted in a 75 percent reduction in outof- specification lots on the receiving dock. Since COAs are often analyzed even before the shipment arrives, Chelsea Milling can now reject shipments even before they are received, saving the supplier reverse logistics charges and returns processing. • Significant reduction in ingredient variability makes product output more consistent, thus increasing customer satisfaction. This also reduces the cost of goods manufactured (COGM). • L abor needed to check COAs is reduced and COAs are checked with accuracy

and efficiency. • Staff focused on clerical tasks are redeployed to higher-value problem solving. • Suppliers receive immediate and collaborative feedback so that they can make adjustments, improving the quality of products while also strengthening their partnerships with Chelsea Milling. • A ny dangerous materials are immediately identified t h rough cont inuous compliance monitoring, thus eliminating those materials and their suppliers from use. Most critically, overall risk to the company has been measurably reduced, and the food company continuously receives praise f rom regulatory and downstream auditors for being able to produce complete supplier compliance documentation

BE Weekly | 25

at a moment’s notice. In today’s fast-paced business the ability to rapidly prove control of the supply chain, wherever it originates is vital. Increasingly, customers require GFSI or similar up-to-date audit on file, as well as the ability to prove that suppliers are similarly compliant with GFSI, HACCP, SOPs, regulatory, and other business-critical requirements. “In case of a noncon for ma nce of a ny nature, the system can

26 | BE Weekly

automatically generate and send a supplier corrective action request,” Nowacki noted, “which specifies the problem(s) detected, and highlights the necessary corrective actions to be taken. Suppliers complete the corrective action form and submit the document back.” SCAR automation speeds conflict resolution, allowing all parties involved to return to normal business as quickly as possible, thus minimizing any disruption and business impact.

Supplier documentation storage, whether in file cabinets or in digital formats, may satisfy regulatory retention requirements; it does little to systematically unlock the wealth of business, compliance, and regulatory information contained and required on a daily basis to operate successfully. Automatically analyzing and score-carding supplierprovided documentation, as it is received, helps food manufacturers and ing redient processors

Food safety

aut o m at e do c u m e n t management. It meets regulatory and industry compliance requirements, identifies best and worst suppliers, creates better sourcing with less risk; it automatically raises product quality. Lean best practice

food companies are able to painlessly perform or participate in audits, all without needing to involve the IT department for assistance. Food leaders experience on average a 56 percent reduction in out-of-spec lot receipts,

Thomas R. Cutler is the President & CEO of Fort Lauderdale, Florida-based, TR Cutler, Inc. Cutler is the founder of the Manufacturing Media Consortium including more than 4000 journalists, editors, and economists writing about trends in manufacturing, industry, material

and a 20 percent reduction in attribute variability, resulting in enhanced continuous improvement, better performing ingredient and raw material inventory, improved cash f low, and long-term brand protection.

handling, and process improvement. Cutler is a member of the Society of Professional Journalists, Online News Association, American Society of Business Publication Editors, and Committee of Concerned Journalists. trcutler@trcutlerinc.com

BE Weekly | 27


Mining Ind

aligned to South Africa’s employment and growth init MINing indaba™ 4-7 February 2013 The Cape Town International Convention Centre, cape town, south africa The economic and social impact of large conferences and conventions hosted in South Africa cannot be underestimated. Over the next five years, over 200 000 visitors are expected to visit the country on the back of the 200 confirmed international meetings and conferences that will be hosted in South Africa. These meetings are expected to add

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more than R1.6 billion to South Africa’s GDP. Earlier this year, Tourism Minister Marthinus van Schalkwyk confirmed that his department plans to increase domestic business tourism – mainly conferences and incentive travel – by 10% in 2015 and 15% by 2020. The strategy is informed by a baseline growth rate of 5.3% recorded in 2009. Van Schalkwyk remarked that South Africa boasts a 40% return of delegates as leisure visitors. In addition, 43% of these business delegates are accompanied by a leisure tourist, spending an average of R1,000 a day.

Special preview


tiatives in business tourism

Sustainable development at Mining Indaba In partnership with ICMM, key international speakers will discuss global sustainable development issues with the wider mining, development and investment communities. Mining executives, policy makers, civil society and higher education representatives will come together to examine mining’s contribution and how to improve the industry’s sustainable development performance. Tuesday, 5 February 2013 Mainstage Presentation 16:59 High-Level Panel: Sustainability - A Critical Issue for Investors

Jonathan Moore, Senior Vice President & Managing Director, Mining Indaba LLC

It is clear that by growing business tourism, we can stimulate economic activity and employment. South Africa has proven its ability to attract large-scale global events, and so business tourism should be recognised as an integral part of the national tourism strategy and employment creation. In this, we should also recognise the dual role played by conferences such as the annual Investing in African Mining Indaba – also known simply as the Mining Indaba. The mining sector is a critical part of South

Thursday, 7 February 2013 08:45 Welcome Remarks: Aidan Davy, Director, ICMM 09:00 KEYNOTE ADDRESS: Mining’s Contribution to Sustainable Development 09:45 Panel Discussion: Mining’s Economic Contribution to Sustainable Development 11:30 Panel Discussion: Revenue Transparency and Anticorruption - A Global Challenge 12:45 Closing Remarks and Calls to Action For full session topics and speaker announcements visit: www.miningindaba.com/sustainability

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Africa’s economy, contributing 19% of the country’s GDP if indirect effects are included. The Mining Indaba provides a platform for delegates from all over the world to network every year in Cape Town, facilitating dealmaking and employment. Mining is also the sector with the greatest potential for job creation in South Africa if you take into account mineral beneficiation, consequently it is imperative that the sector is supported. Events such as Mining Indaba allow policy makers to interact with industry officials to exchange views and share information, leading to better policy outcomes.

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The conference helps to support the mining sector, by ensuring the industry remains healthy, but it also leads to direct job creation itself. To date, we have spent R336 billion over the last 18 years, supporting the Cape Town economy and creating 2000 direct and 1000 indirect jobs during the last six years. (The Cape Town International Convention Centre has been researching the information for the last six years of the event.) As the Investing in African Mining Indaba has grown, so has our contribution to the economy of the country and the Western Cape. In February this year, we recorded

Special preview “As the Investing in African Mining Indaba has grown, so has our contribution to the economy of the country and the Western Cape” a 17% increase in the number of visitors, with a record 7,020 delegates attending the conference. We are now the world’s largest gathering focused on African mining, and attract the sector’s most influential stakeholders. We were able to contribute R100 million towards employment opportunities in the Western Cape. This meeting created close to 500 jobs as a direct result of our participation in the hospitality and transport sectors in the province, as well as 246 indirect jobs elsewhere in the country.

The Nedbank Business Matchmaking Programme The matchmaking programme is an integral element of the Annual Mining Indaba experience. The programme features a state-of-the-art personal concierge service assisting delegates to make their critical connections before and ensure the meetings happen during the event. With more than 7,000 delegates representing more than 100 countries, the Business Matchmaking Programme is the platform to create and nurture vital cross-continental business relationships. The internetbased, pre-conference Business Matchmaking software is powered by OUTsmart Marketing, the official provider selected by the organisers. Programme quick facts: • Available to all registered delegates at no cost • Delegates will be required to create an online profile to participate and request meetings • Meetings are confirmed before the event

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EVENTS Conference Agenda Summary Saturday, 2 February 2013 12:00 - 18:00

Registration Open

Sunday, 3 February 2013 07:30 – 18:00 10:30 – 18:00

Registration 8th Annual Mining Indaba Golf Tournament at Pearl Valley Golf Course

Monday, 4 February 2013 07:30 – 19:00 09:00 – 12:30 09:30 - 11:30 12:50 – 17:40 14:00 - 16:00 14:55 – 15:55 17:30 – 19:00 17:40 – 19:00

Registration Pre-Conference Workshops New in 2013 Securities Exchange Session 1 Commodities Outlook & Review Forum Securities Exchange Session 2 Keynote address: Dr. David Humphreys Norlisk Nickel Exhibit Hall Open New in 2013 Ice Breaker Reception in the Norilsk Nickel Exhibition Hall

Tuesday, 5 February 2013 07:00 – 18:00 Registration & Breakfast 07:30 – 18:00 Norlisk Nickel Exhibit Hall Open 08:00 – 08:05 Opening Remarks – Jonathan Moore, Mining Indaba LLC 08:06 – 08:25 OFFICIAL WELCOME: H.E. Minister Shabangu 08:26 – 09:16 Keynote Address: Dr. Marc Faber 09:15 – 12:20 Corporate White Paper Presentations (throughout the morning) 09:17 – 16:58 Mainstage Corporate Mining Presentations (throughout the day) 09:30 – 11:30 Securities Exchange Session 3

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Special preview

10:30 – 11:50 12:26 – 13:25 13:00 – 14:45 14:00 – 17:02 16:59 – 17:39 17:40 – 18:30

Non-African Government Presentations Keynote Address: Dr. Dambisa Moyo Networking Luncheon African Mining Ministerial Forums 1 & 2 High-Level Panel: Sustainability - A Critical Issue for Investors Cocktail Reception

Wednesday, 6 February 2013 07:30 – 18:00 Registration 08:30 – 09:10 Keynote Address: Dr. Mamphela Ramphele 09:11 – 09:51 Keynote Address: Robert M. Friedland 08:00 – 18:00 Norlisk Nickel Exhibit Hall Open 09:15 – 12:20 Corporate White Paper Presentations (throughout the morning) 09:52 – 17:55 Mainstage Corporate Mining Presentations (throughout the day) 10:30 – 11:50 Non-African Government Presentations 12:00 – 13:45 Networking Lunch 13:45 – 14:15 Keynote Address: Bernard E. Sheahan 14:00 – 17:30 African Mining Ministerial Forums 3 & 4

Thursday, 7 February 2013 07:30 – 12:00 08:30 – 13:00 08:45 – 12:45 09:00 – 09:45 13:00

Registration Norilsk Nickel Exhibit Hall Open Sustainable Development at Mining Indaba Keynote Address: Mark Cutifani 19th Annual Mining Indaba Concludes

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7,000+ Number of attendees in 2012

The Mining Indaba is committed to a zero-waste philosophy. This year we were able to donate in excess of 1,200 conference bags including stationery to local schools. The Cape Town International Convention Centre donates all left-over food from the

conference to Foodbank South Africa, where it is redistributed to needy families. New York 23 October 2012. In line with its agenda of aligning itself with the transformative policies of the South African government, and contributing to the advancement of the country’s mining industry, Investing in African Mining Indaba has offered bursaries to two deserving mining engineering students. The bursaries valued at US$10,000 each, have been offered to Lindiwe Nyalunga, a 4th year student at Wits University and Hlulisani Mabege, also a 4th year student pursuing the same academic


Mark Cutifani

Chief Executive Officer, AngloGold Ashanti Thursday 7 February 2013 09:00 - 09:45

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Dr. Marc Faber

Investment Advisor, Fund Manager, & Broker/Dealer Tuesday 5 February 2013 08:26 – 09:16

Robert M.Friedland

Dr. David Humphreys

Wednesday 6 February 2013 09:11 – 09:51

Monday 4 February 2013 14:43 – 15:43

Chairman, Ivanhoe Capital Corporation

Principal, DaiEcon Advisors

Special preview discipline at the University of Pretoria. The bursary is for one academic year, 2013, and it will cover tuition, books, accommodation, meals and other related academic expenses like mine excursions. As part of the award, Nyalunga and Mabege have been invited to the 2013 Mining Indaba, where they will have an opportunity of interacting with financiers, investors and mining’s most influential stakeholders, who are expected to be part of the more than 7000 delegates attending the Indaba. We recognise the importance of partnerships in contributing to the sector’s

Dr. Dambisa Moyo International Economist and Author

Tuesday 5 February 2013 12:26 – 13:25

Dr. Mamphela Ramphele

Chair of Gold Fields; Founder of Letsema Circle and Founder of The Citizens Movement in South Africa Wednesday 6 February 2013 08:30 – 09:10

growth. We will continue to work with our partners in South Africa in supporting broad-based black economic empowerment, education and capacity building, and sustainable development. We have drawn up baseline standards which will inform our work with established vendors who are either already BEE-certified or are in the midst of the certification process. For more information about Mining INDABA 2013 visit: www.miningindaba.com

H.E. Mrs. Susan Shabangu

Minister of Mineral Resources, Republic of South Africa Tuesday 5 February 2013 08:06 - 08:25

Bernard e. Sheahan

Director of the Infrastructure and Natural Resources Department, Africa and Latin America, The World Bank Group Wednesday 6 February 2013 13:45 – 14:15

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A mainstay in mining Director of foreign assets, Roman Panov, discusses the factors that have contributed to the success of Norilsk Nickel and how core markets, particularly Africa, are continuing to be vital sources of growth

written by: Will Daynes research by: Marcus Lewis

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Norilsk Nickel

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ining has been a part of life in the Norilsk area since the 1920s, during which time the seeds were sown for what would become a lucrative industry for the region and Russia as a whole over the course of the subsequent century. It was in 1935 that the government of the USSR created the Norilsk Combine and 1943 that Norilsk managed to produce an annual total of 4000 tonnes of refined nickel, before hitting its target figure of 10,000 tonnes just two years later in 1945. In the aftermath of the fall of the Soviet Union a joint-stock company was created in 1993, taking the name RAO Norilsk Nickel. By 1997, the company had been sold to private enterprise Interros and had returned to profitability. In the years since, Norilsk has gone on to successfully acquire a host of mining and metallurgical assets across the world, thus transforming itself into a multinational organisation with operations in Russia, Finland, Australia, Botswana and South Africa. Today, MMC Norilsk Nickel is the world’s largest producer of nickel and palladium, and one of the leading global producers of platinum and copper. In addition, it also produces various by-products such as cobalt, chromium, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium and sulphur. “Our production assets,” explains director of foreign assets, Roman Panov, “are located in five countries, Russia, Finland, Australia, Botswana and South Africa, across which we mine over 30 million tonnes of ore and produce almost 300,000 tonnes of nickel. The

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Norilsk Nickel

latter figure represents a fifth of the world’s total nickel production.” In its home country of Russia, the company’s production units include its Polar Division, which is located above the Polar Circle on the Taimyr Peninsula, and Kola MMC on the Kola Peninsula, while in Finland it operates the

Harjavalta processing plant. In Australia its operations include Black Swan, Cawse, Lake Johnston and Honeymoon Well, and in Africa its activities are comprised of the Nkomati project in South Africa and Tati Nickel in Botswana. In addition to its operating assets, the company boasts a large sales and

“our resource base will be expanding considerably as we embark further upon geological exploration in the regions where we currently operate” 40 | be weekly

Norilsk Nickel

Artic Express is the ship also in Russia

marketing network in many and metals companies of the world’s major regions, by market capitalisation, vital energy assets that as well as geographical ensure the security of energy expansion and production supply to its operations, diversification, by the year Tonnes of nickel 2025,� Panov enthuses. proprietary research and produced globally by Panov believes that the development assets and its Norilsk Nickel per annum unique Arctic fleet. company has the necessary Norilsk Nickel sees its technical, financial, economic mission as revolving around strengthening its and investment policies that will allow it to leadership in the mining and metals sectors, achieve its aims. It establishes solid grounds while at all times remaining a responsible for social, regional and human resources producer and supplier of non-ferrous and policies, strategies for the development precious metals. “The company plans to of related industrial facilities and the be included in the top five largest mining optimisation of corporate governance.


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“In the years to come,” Panov continues, “our resource base will be expanding considerably as we embark further upon geological exploration in the regions where we currently operate and through our participation in new projects. As part of a broader drive to diversify our commodity portfolio and our region presence we continue

to monitor projects in mineral-rich countries in southern Africa. Specifically, we are looking at potential projects in Zimbabwe, the Democratic Republic of Congo, Zambia and Botswana. These consist of both greenfield and brownfield mines, however what we are focusing on is the quality and quantity of reserves that each holds underground.”

“Expansion across Africa fits perfectly into our strategy and will act as a logical way of tying our expansion plans to our existing operating sites”

Truck at Tati Nickel Mine in Botswana

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Norilsk Nickel

Nkomat Mine in South Africa

Africa and South Africa in particular, is playing an increasingly important role in the growth strategies of diversified mining companies. This is equally true for Norilsk Nickel, the major difference being that it already has a commanding presence in South Africa where it is part of the Nkomati nickel mine joint venture alongside African Rainbow Minerals. “Expansion across Africa,” Panov says, “fits perfectly into our strategy and will act as a logical way of tying our expansion plans to our existing operating sites. What is also important to highlight is the fact that Norilsk is not restricted to nickel and in that respect we actively investigate the

potential of all manner of base-metals with a similar degree of enthusiasm.” Having a unique raw material mineral base gives the company the ability to retain its competitive advantage within the industry and provides it with stability of production and enables it to make strong long-term forecasts. “In order to strengthen our position as a leading global mining and metallurgical entity,” Panov states, “our primary objectives are to further develop our international operations and focus on the development of key production assets. The management of the company collectively works on a constant basis to optimise business

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Norilsk Nickel

March 2011 The company signed a Declaration of Strategic Partnership with South Africa’s government processes, improve operational indicators, reduce costs and enhance efficiency at all levels in order to create additional value for our shareholders.” Norilsk Nickel continues to retain its position as the world’s lowest-cost producer of nickel and one of the ways it does is maintaining a strong presence on the African continent. It is with this in mind that the company is particularly interested in prospecting and carrying out the geological investigation and exploration of promising new greenfield projects in South Africa. “In March 2011,” Panov concludes, “the Declaration of Strategic Partnership between Norilsk Nickel and South Africa’s Department of Mineral Resources was signed. The aim of this partnership is to facilitate the implementing of lucrative mineral resource development projects in the country. This partnership alone highlights just how important a role South Africa will continue to play in our growth strategy on the African continent.” Tati Nickel Mine in Botswana

For more information about Norilsk Nickel visit: www.nornik.ru/en/

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Exploring a new frontier Liberia remains one of the few remaining prospective parts of the world yet to be fully explored. Chief executive officer Geoff Eyre talks about how Amlib is working to help fulfil the country’s great economic potential

written by: Will Daynes research by: Celina Bledowska

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The Amlib drilling team have over 20 years of experience in diamond core drilling



hile for much of its have increased our operating and exploration 161 year history Liberia capabilities within the country significantly, has been a stable and investing in people and infrastructure so as productive democracy, to have the ability, at any one point, to be recent decades have operating on multiple exploration targets across seen the country plagued by civil war and all four licences. This in turn helps us generate adversely affected by the drying up of results more quickly and allows us to move our foreign investment. Nevertheless, the current projects forward in a timely manner.” government of Liberia, led by President Ellen All of Amlib’s licences currently boast Johnson-Sirleaf, is determined to lead the significant levels of artisanal activity. The country into a new age of economic growth. largest of these is Cestos, a huge licence While it remains largely unexplored, Liberia spanning nearly 2000 square kilometres. It is has a well-known potential for primary and here that the company has spent a considerable alluvial gold and diamonds, and has been amount of time and effort in recent years shown to possess a wide range gaining access to its target of minerals including beryl, areas in order to carry out tin, phosphates, zinc, copper, the initial exploration phases. Most recently the company has lead, uranium and iron. Amlib is an exploration commenced drilling on three specific targets, with early company focused primarily grams per tonne. The results suggesting the area has on gold in Liberia, with average grade of gold found some very positive similarities a business development within the Kokoya licence between itself and the Ashanti mandate encompassing other mineral opportunities. Gold Belt in Ghana. “While we have been operating in the A few hours outside of Monrovia, Amlib has country in our current form since 2000,” also been working recently at Kle Kle where explains chief executive officer, Geoff Eyre, it has drilled a total of 69 holes to date on “the history of the licences that we hold dates its targets there. Again, initial results have back to the 1980s. It was at this time that our been very positive with the company now founding geologist, Dr Nathaniel Richardson, embarking on a three dimensional structural was director of the US Geological Survey interpretation to determine the details for and it was his knowledge and experience of the next phase of drilling. Similarly, Amlib the region that led to Amlib becoming the is preparing to carry out a helicopter-borne organisation it is today.” exploration programme in the coming months Amlib’s operations are focused around its over its Zwedru licence. This will be done to Cestos, Kle Kle, Zwedru and Kokoya Mineral test a 12 kilometre soil anomaly. “Should the Development Agreements (MDAs). “During results of these tests come in as expected,” Eyre the last three years,” Eyre continues, “we enthuses, “it will result in the discovery of a


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significantly sized gold anomaly that I believe will start to excite the majors in the region.” Last, but certainly not least is the company’s Kokoya licence, which hosts a NI 43-101 compliant resource of 410,000 at an average grade of 2.6 grams per tonne of gold. Amlib is actively looking to fund development of this project, which is expected to produce 50,000 ounces of gold per annum over five years. Amlib has also identified significant growth potential for the Kokoya licence, which boasts a number of additional gold targets that are still to be followed up on. Although Liberia can claim to have extremely favourable geology, because of the aforementioned historical troubles that have beset the country it remains one of the few places that is prospective for gold, diamonds and other minerals that has yet to be explored. While being one of the early stage explorers into the country has brought Amlib considerable benefits, not least the chance to secure the rights to some highly prospective ground, it has also meant that the company has had to deal with several big challenges. “In addition to the challenges presented by the climate of the region,” Eyre says, “we also had to overcome the lack of infrastructure that existed prior to our arrival in Liberia as

well as the fact that we did not have access to the sort of country wide exploration data that one might expect to find in other countries.” What Amlib found was that the best way to overcome such challenges was to invest considerable amounts of capital into building up its own capabilities internally, funding its own plant and logistics infrastructures. As Eyre goes on to highlight, Amlib has also developed its own in-house drilling service. “Having

“Liberia remains one of the few places that is prospective for gold, diamonds and other minerals that has yet to be explored” 50 | be weekly


Amlib Drilling Services, working through Liberia’s wet season

this capability is somewhat to third parties, while unusual for an explorer such expanding the fleet in order as us. It has, however, been to take advantage of the an extremely advantageous opportunities that continue addition to the business.” to present themselves in ounces per annum. As well as allowing Liberia. Not only has this Of gold that Kokoya is service provided us with an Amlib to drill at much expected to produce over alternative revenue stream cheaper rates than would a five year period but it has also presented us otherwise be possible, its with the opportunity to look internal drilling service allows it to test targets that into expanding more broadly only require the company to drill a few in the future, beyond Liberia and into other thousands metres initially. This allows it parts of West Africa.” to avoid signing minimum metres contacts One thing that Amlib has been acutely that would be highly inefficient and a drain aware of since its first day within Liberia is the fact that in order to operate successfully in on resources. “In the last six months or so,” Eyre states, such parts of the world it is imperative that you “we have started to make rigs available engage and work with the local community.


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“We take the corporate social responsibility aspect of our business extremely seriously,” Eyre says, “and have undertaken a number of projects in the licence areas in which we operate, including the building of junior schools in the Kokoya area. In addition to this, in Cestos, we pay for the salaries of the teachers that run not only the schools we have built but others in the area also. As well as putting in water wells in the local communities in which we operate,

we also have a national relationship with the charity, Cure International. It is on behalf of this group that we have recently funded the refurbishment of an operating theatre at JFK Hospital in Monrovia that is now being used to treat hydrocephalus and save children’s lives.” Amlib is undoubtedly in the midst of an exciting period in its history and it is over the coming months and years that it intends to drive a number of programmes and initiatives

“Driving the company’s developments forward is a highly qualified and dedicated technical team that are helping to deliver on Liberia’s potential”

Upgraded railway line linking Kokoya project to Buchanan Port in Liberia

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Bill Brodie Good, Coo, with the earth science students Amlib sponsor

forward in order to grow further. “One of the most important things on our agenda,” Eyre reveals, “is the development of the Kokoya project, which will provide the business with a solid cash flow within a relatively short space of time. Meanwhile, we expect the next round of drilling at Kle Kle to produce more positive results as we begin to better understand the structure and mineralising controls required to work on the resource.” Elsewhere within the company, Amlib has set in motion plans to expand its drilling services, potentially alongside a third party partner. This would also begin to generate

increased revenues for the business and allow Amlib to continue unabated with its exploration programmes. “Driving all these developments forward,” Eyre concludes, “is a highly qualified and dedicated technical team. These are the individuals that are helping to deliver on Liberia’s potential, while at the same time mapping out Amlib’s future and making it more robust as an organisation during these challenging times.” For more information about Amlib visit: www.amlibgroup.com

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Simply ore-ins

A monumental project, possessing over seven billion metri tonnes of iron ore reserves, the Carajås Iron Ore Mine is one of South America’s most exciting ongoing developmen

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Vale Brazil: Carajรกs Iron Ore Mine


written by: Will Daynes research by: Abi Abagun



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Iron ore dry beneficiation plant, a new technology developed by Vale

Vale Brazil: Carajás Iron Ore Mine


he most widely used of all minerals, iron accounts for approximately 95 percent of the world’s metal production in terms of weight. As the world’s third largest iron ore producer and exporter, Brazil has long reaped the financial benefits provided by one of its largest export products. The Carajás region of the country boasts some of the richest reserves and concentrations of iron ore anywhere on the planet, with the Carajás Mine, located in the state of Pará in Northern Brazil, holding the distinction of being the world’s largest iron ore mine. Fully owned by Vale, the mine holds up to 7.2 billion metric tonnes of iron ore in proven and probable reserves. The Carajás Mineral Province was originally discovered entirely by accident when a US Steel helicopter was forced to land on a hill in the area to refuel in 1967, with the first iron ore mine called N4E Mine coming into operation in 1985. In the mine’s first year output reached one million metric tonnes of iron ore, which was processed at a semiindustrial plant. During the second year an industrial-scale processing plant was brought online and this resulted in production rising to 13.5 million metric tonnes of final product. Mining operations in Carajás are open-pit, with 15-meter-high benches. The off-highway trucks that Vale uses, each capable of carrying loads of over 240 metric tonnes, unload ore at crushing facilities located inside the mines. After this, the material is transported on conveyor belts for further processing. At this stage, the ore is crushed once more and classified using screens, cyclones

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Vale Brazil: Carajás Iron Ore Mine

Operational Control Center in Carajás

and spiral classifiers. The end result is have come under environmental scrutiny. three classes of products, these being Operations at the Carajás iron mines conform sinter feed, pellet feed and lump ore. Now to an environmental quality management spanning five simultaneous open-pit mine system that has been implemented, and operations, the Carajás Mining Complex is certified, to ISO 9000 and ISO 14001 standards and procedures. produces approximately Vale’s activities in Carajás 300,000 metric tonnes of include an extensive iron ore per day and was programme to restore responsible for producing vegetation on former mining a record 109.8 million sites using species that are metric tonnes in 2011, an native to Carajás National increase of 8.5 percent on the year before. Forest. Meanwhile, the With its mines located company also maintains Metric tonnes of proven inside the 400,000 hectare a well-structured and probable reserves Carajás National Forest, Vale’s environmental monitoring inside the mine operations understandably network that systematically



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evaluates aspects such as air quality, noise pollution, vibrations and water quality. In partnership with the Chico Mendes Institute for Biodiversity Conservation (ICMBio), Vale contributes to managing

Carajás National Forest and the development of research, thereby expanding overall knowledge of the region’s biodiversity. Just as importantly, this partnership also enables work to occur that monitors and

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Vale Brazil: Carajás Iron Ore Mine

Iron ore beneficiation plant

fights forest fires. Vale is also proud to be in partnership with not only ICMBio, but Brazil’s environment regulator, Ibama, as well in their work to help conserve an area of forest that spans around 1.2 million hectares, three times the size of the Carajás National Forest and ten times the size of the state capital of Pará. One of the more recent developments involving the mine is the Carajás S11D iron project. The project represents an expansion in iron ore mining and processing at the Carajás Mining Complex. Continuously,

since it first began operations back in 1985, the complex has produced the best quality iron ore in the world, which has been supplied to both the domestic and international markets. Similarly during that time Vale’s presence in the municipalities of Parauapebas and Canaã dos Carajás in southeast Pará has underpinned a strong cycle of economic and social development in Brazil’s North region. The Carajás S11D iron project has a key role to play in a new cycle of sustainable development in the states of Pará and

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Off road truck with 400 tons of loading capacity

Vale Brazil: Carajás Iron Ore Mine Maranhão, and in the continuation of Brazil’s position as a major player in the global iron ore market. S11D will ultimately produce 90 million metric tonnes of iron ore per year, meaning that upon reaching full capacity, Vale’s total ore production in Pará will have reached approximately 230 million metric tonnes per year. This ore will help meet the growing global demand for iron that is being generated by rising investment in construction and in the production of machinery, equipment, aircraft, mobile phones and other essential everyday products that are central to our way of life. Together with the other projects that are planned to come on-stream in the region, the new mine will help place southeast Pará on the same level as the iron quadrangle region in the state of Minas Gerais. As Vale looks to the future of its Carajás iron ore mine activities, it is abundantly clear that the S11D project is at the heart of its plans and ambitions. The S11D project, named after its location, ore body S11, block D, is easily one of the most exciting developments occurring anywhere in South America. The mining potential of ore body S11 equates to ten billion metric tonnes of iron ore, while block D alone contains 2.78 billion metric tonnes of reserves that will be mined by Vale. It is believed that this project alone will enable Vale to maintain its leading position in the global iron ore market for many years to come. For more information about Vale Brazil: Carajás Iron Ore Mine visit: www.vale.com

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game changers 64 | be weekly

ZincOx Resources From its recycling plant in South Korea, ZincOx has captured the attention of the metal processing industry by utilising a revolutionary form of technology to recover zinc from electric arc furnace dust

written by: Will Daynes research by: Jeff Abbott

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t is estimated that 12 million tonnes of zinc is consumed across the world on an annual basis. While zinc and other raw materials provide the essential building blocks required by rapidly expanding economies to achieve growth, we do live in a world of finite resources. It is for that reason that recycling has become an increasingly important component in the supply of commodities. Initially formed as a Dutch company by Andrew Woollett and Noel Masson in 1997, ZincOx’s business today is the recycling of electric arc furnace dust (EAFD), a hazardous waste generated by the recycling of steel scrap. Initially set up to bring to account unconventional zinc ore deposits, ZincOx soon identified the potential benefits and uses of EAFD and in the last seven years has shifted its focus away from mining to recycling. As a result of a decade of research and development, the company has adopted a game changing form of technology that has shown itself to be the best way of processing EAFD and recovering zinc. Throughout the world, steel scrap is recycled in electric arc furnaces using a simple remelting process. To protect steel objects from corrosion they are increasingly being galvanised by being coated in a thin layer of zinc metal. When scrap steel is recycled, the zinc from this galvanising process is driven off as a dust and caught up in the flue gasses. These fine particles are then filtered out and the resulting dusty material is collected. For each tonne of steel produced by recycling, between 12 and 20 kilogrammes of EAFD is also created. This dust typically contains in the region of 18 to 24 percent zinc, a figure that is up to five times greater than that gained from

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DBQ & Dryer

ZincOx Resources

ZincOx Resources

the average zinc deposit. In addition to this in EAFD would not only be energy efficient, and zinc, EAFD also contains between 22 and 30 generate no waste, but would also enjoy higher percent of iron and up to three percent of lead. margins that existing recyclers. This meant Historically, the recovery of zinc from EAFD that it could be developed without having to has not been possible without a subsidy being rely on subsidies from the operators of electric provided by the steel industry. Indeed, because arc furnaces. As such, the process represents a the cost of landfill in many developing countries technically, economically and environmentally is much less than the subsidy required, EAFD superior solution to the problem of EAFD. continues to find itself being Today, ZincOx’s technology landfilled. It is estimated that is being demonstrated in as much as seven million South Korea, where its first tonnes of EAFD is generated recycling plant has recently been development and where annually, of which only half is recycled. the company holds ten year Tonnes of zinc in ZincOx’s management EAFD supply agreements that concentrate that the recognised that a technology cover approximately 400,000 recycling plant will produce per annum that would be able to recover tonnes per annum. The plant all of the zinc and iron present itself is being designed in two


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A Leading EPCM Services Provider In the Nonferrous Metals Industry Armed with over fifty years of industry experience under Korea Zinc Group, and the foremost latest technologies for the nonferrous metals industry, Xmetech Corporation is a reputed international leader that can be trusted to bring out your company’s utmost potential, with custom tailored solutions in: • Engineering • Procurement • Construction Management • Project Control • Training & Commissioning Services

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Excellence in EPCM capabilities for ZincOx EAF Dust Recycling Project.

www.xmetech.com ZincOx Korea Recycling EPCM Project Construction Phase

Address: 3F, Starwood Plaza, 5439-1, Sangdaewon 2-dong, Joongwon-Gu, Seongnam, Gyeonggi-Do, Republic of Korea, 462-819 TEL: +82-31-737-0620~0624 | FAX: +82-31-737-0607 | e-mail : marketing@xmetech.com

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ZincOx Resources phases, the first of which is Xmetech Corporation now complete. This phase Xmetech Corporation was presented with a unique EPCM cost $110 million to bring challenge by ZincOx, for the Korea Recycling Project. Through to fruition and was fully the expertise and knowledge of its specialist staff, Xmetech financed by a combination of was not only able to successfully complete the first phase equity and debt. of construction of the Electric Arc Furnace Dust treatment Phase two of the plant facility in Gyeongju, but also had firmly demonstrated effective operation utilizing a new technology, with great economic and development will shortly environmental success. Preparations for the second phase commence with all of the are underway, and it is hoped that, with the introduction of major infrastructure already a second RHF to the plant, the facility will bring even further installed. Estimated to cost fortune and recognition for all involved parties. around $100 million, phase enjepark@xmetech.com two will be financed by a combination of bank debt, offtake finance and equity to be provided either by ZincOx or by the introduction of a partner into the project. As the second largest scrap importer in the world, South Korea is the perfect location for ZincOx to launch its technology on a large scale. At present, the country generates about 380,000 tonnes of EAFD a year, with this figure expected to rise to 400,000 tonnes in short order. It was in June 2008 that the company entered into a Memorandum of Understanding with KOSA, the association representing the Korean steel sector, by which KOSA would assist ZincOx in obtaining EAFD supply commitments from various steel companies and in locating a GHS area suitable plant site.

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GHS Area

ZincOx Resources

In April 2009, this resulted in the company entering into exclusive EAFD supply agreements with all of Korea’s most significant operators, including Hyundai Steel, Dongkuk Steel, Daehan Steel, YK Steel, Dongbu Steel, Hwanyoung Steel, Korean Iron and Steel Company, SeAH Besteel and Posco Speciality Steel. At full capacity, ZincOx’s plant will be able to generate a concentrate containing 90,000 tonnes of zinc in concentrate a year, a figure equivalent to that recorded at the fifth largest zinc mine in China. At full capacity, the plant will also be able to produce approximately 180,000 tonnes of iron product per annum. ZincOx’s work is now being increasingly recognised by leading figures throughout the industry, with its South Korean recycling plant project shortlisted for the2012 Financial Times and International Finance Corporation Sustainable Investment of the Year Award. Having made a considerable impact with its work in Korea, the company intends to roll out its technology in other parts of the world in the coming years, with considerable progress having been made thus far in Thailand, Turkey and the United States. This work is all part of ZincOx’s long term objective of operating a network of recycling plants covering each of the world’s major steel recycling regions, all in pursuit of becoming the largest, most sustainable recycler of EAFD, and therefore zinc, in the world. For more information about ZincOx Resources visit: www.zincox.com

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Reeling in the customers

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Ocean Basket

By focusing on domestic and international expansion, and by aligning itself according to the changing demands of its customers, Ocean Basket remains one of South Africa’s true success stories

written by: Will Daynes research by: Candice Nice

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Fats Lazarides, founder

Ocean Basket


outh Africans love their seafood, and with perfectly good reason. With businesses supplied year round by an astonishing array of seafood fresh from the waters of the Atlantic and Indian oceans, the straightfrom-the-sea freshness of the country’s dishes has become legendary in local and international circles. A particularly impressive success story linked to South Africa’s seafood industry is that of Ocean Basket. Established in 1995, today it boasts 160 outlets across Africa, Europe and the Middle East. What makes Ocean Basket’s story all the more remarkable is the fact that not only was it able to survive the economic downturn that gripped the world during 2008 and 2009, but that it remained highly profitable. In the time since the financial crisis, Ocean Basket has successfully opened nearly 20 new stores, while retaining its position as the best loved seafood restaurant in South Africa. Among these new stores is the company’s first in Lagos, Nigeria, which is performing well beyond initial expectations, and two new stores located in Mauritius. While Ocean Basket’s business remains at its strongest in Gauteng, followed by the Western Cape, its international expansion plan is proceeding extremely well, with six stores now in Cyprus and a store in Dubai’s international airport providing it with a great deal of visibility. Nevertheless, the company believes there are still a great number of growth opportunities in South Africa. This means it is in the enviable position of being able to target expansion both at home and abroad. In recent years, competition has grown like

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Email: marina.mars89@gmail.com | Telephone: 0027 766 860 520

Weekly Because a month is a long time to wait... Your weekly digest of business news and views www.bus-ex.com

Ocean Basket wild fire, with over 600 take away fish and chip outlets in South Africa targeting the lower end of the market. One of the reasons Ocean Basket has been able to sustain this challenge is that its value positioning and shared family values have positioned it perfectly to meet changing social-economic conditions head on. What does give Ocean Basket even greater encouragement is the fact that customer surveys have indicated a 20 percent rise in seafood being identified as a first choice option, ahead of other products such as chicken or beef. This has resulted in the company capturing a broader target audience, a trend that is helping make Ocean Basket a destination brand in the eyes of its customers. What Ocean Basket has noticed more and more from these customers is that they are becoming increasingly demanding from a service perspective. These customers work hard for their money and when they visit a restaurant they demand quality, excellent service and, above all else, value, and it is the job of Ocean Basket to align itself closely to these needs. This loyalty is further highlighted by the vast list of customer accolades that the company

has accumulated over the years. For example, Ocean Basket has, for 12 consecutive years, been named the Best Seafood Restaurant in Johannesburg. In addit ion to it s commitment to careful

price balancing, Ocean Basket ’s success has been a result of a combination of its passion, perseverance and its ability to adapt. There is however, one further ingredient that it views as being key to its continued prosperity and that is simplicity. Increasingly the company is seeing that all of its competitors are giving in to adding another protein option to their menus with even international seafood brands adding chicken products to their offering. By

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“By maintaining strong supplier relationships the company ensures it is able to consistently source quality products at the best possible prices� focusing on seafood, which brought it to the fore in the first place, Ocean Basket has created a consistent and trusted customer experience that is virtually unrivalled. By maintaining strong supplier relationships the company ensures it is able to consistently source quality products at the best possible prices. Meanwhile, its distribution business enables it to deliver products to its stores on

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time and frequently so as to ensure that its customers receive only the freshest seafood. From an internal perspective, each of the company’s founders remains deeply involved in the business and continues to advocate a flat business structure where nobody within the company possesses a title. Notwithstanding the explosive rate of expansion that Ocean Basket has experienced

Ocean Basket

in recent times, the company’s strategy does not revolve around growth for its own sake. Growth has occurred because its franchise model is extremely simple and easy to run, both in respect of the nature of the business and its operations. Its strategy is one of sustainable growth, maintaining the brand by focusing on franchising and distribution. By continually reviewing its entire franchising model and philosophy, Ocean Basket has recognised the need for it to focus increasingly on reducing costs and building stronger partnerships with its key dependencies. Similarly it is aware that it needs to dedicate greater efforts towards creating more centralised and pre-packaged

offerings to its stores so that less labour intensive work is required to take place. Ocean Basket’s success has been built upon a combination of its passion, the emphasis it places on its customers and its determination to provide every franchisee and licensee with a great business. At the same time, the investments the company makes towards its own people and its drive to deliver the best products and experiences at all times singles Ocean Basket out as being a real pioneer and leader in its field. For more information about Ocean Basket visit: www.oceanbasket.com

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Zodiac Aviation Support, Inc



General Manager Yilma Kassaye talks about building customer and passenger loyalty by delivering customized quality products at competitive prices

written by: Kenneth Connor research by: James Boyle

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odiac Aviation Support, Inc. (ZAS), based near John F. Kennedy International airport in New York City, is a proven and respected provider of the full range of in-flight products and services. The highly experienced ZAS staff caters exclusively to the international aviation community. They are skilled at meeting both deadlines and budgets while routinely exceeding customer expectations. “Over the past 16 years, many of Africa and the Middle-East’s top international carriers have turned to ZAS for their

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in-flight service requirements,” said General Manager Yilma Kassaye. “Since 1996, the year we opened for business, we have been one of the leading suppliers to some of the industry’s most quality-oriented airlines. We count Air Madagascar, TAAG Angola, LAM Mozambique, TACV, Kenya Airways and Ethiopian Airlines and many others amongst our customers. “ QUALITY AND PRICE “Airlines concerned with quality and the on-board experience of their customers routinely put ZAS on their short-list

Zodiac Aviation Support, Inc

of providers for both off-the-shelf and custom on-board service and merchandise solutions. Any airline that selects ZAS to provide onboard products and services can rest assured that their customer will experience and appreciate that extra quality “something” in their onboard experience,” remarked Kassaye. “In-flight supplies from Zodiac are not only durable, lightweight and attractive, more importantly, they are also competitively priced. As experts in the field, we have exclusive business relationships with the best manufacturers from around the world.

These relationships ensure ZAS customers the highest quality products delivered on-time and on-budget.” WHAT’S ON OFFER ZAS handles the merchandising of the full line of on-board products and services including: Blankets, Glassware, Amenity Kits, Disposable items, Rotable items, Porcelain serving items, Beverages, and a full range of in-flight catering. Blankets: “Our blankets are warm, featherweight, fire retardant and come in different sizes, designs, and colors to allow

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LookiNg For A grEAT rESTAUrANT AT 40,000 FEET? No matter what your need – glassware, fine china, blankets, amenity kits, wines, liqueurs, Champagnes, or complete in-flight catering – ZAS can deliver it for your airline. While our roots are international and our staff multi-lingual, ZAS makes it easy to do business with offices in New York (at JFk), and sales teams in Maryland, California and Europe. Call us to upgrade your in-flight image today.

11 Sunrise Plaza, Suite 306 Valley Stream, NY 11580 U.S.A. www.zasusa.com


Tel: (516) 593-3500 Fax: (516) 593-3540 E-Mail: info@zasusa.com

Zodiac Aviation Support, Inc

First class cabin

them to match any aircraft interior. The blankets are available in either Wool, Mod Acrylic or Polyester. We can also provide costsaving disposable blankets if the customer wants them.” Glassware: “Our Bohemian crystal glasses are on a par with stemware used in fine restaurants. Many of our customers use these handsome, multi-purpose glasses in their First

and Business class cabins. Our customers may select from a wide variety of existing styles or we can have something custom designed for them. “ Amenity Kits: “Our amenity kits provide our customers a unique opportunity to bond with their best customers by providing them useful, personal care items contained in custom designed cases. Customers love

“Airlines concerned with quality and the on-board experience of their customers routinely put ZAS on their short-list of providers” be weekly | 87

the complimentary and stylish assortment of eye shades, headsets, slipper-socks, cosmetics and other gender specific personal care items. The long-haul premium cabin passenger views these items as essential for international travel and they believe they have paid for these little “extras” in the ticket price. What’s important for our customers to understand is that ZAS can create an amenity kit for any budget” Disposables: “The nature of the airline business requires that our customers are offered a wide range of options across products like serving trays, cups, dishes, flatware, glasses, napkins, pillowcases and other essentials. Our clients need packaging, materials, design and price-point choices in order to align their customer profiles, route structures, aircraft –types and budgets.” Rotables: “Value is the one constant in all Zodiac-supplied products, but especially with re-used items such as service trays, cups, casseroles, dishware, hollowware and stainless steel products. We are experts at matching our product offering to the tastes and budgets of our clients.” Porcelains: “To our airline customers, image is everything and nothing communicates that better than porcelain. Our professional staff can guide the most demanding customers

Ms. Nariema Hazratalie, Office Manager

through the myriad options in bone china, fine china and regular porcelains. “ Wines, liqueurs and champagnes: “Our customer’s flight attendants are expected to be semi-professional “sommeliers”. That’s where we come in. Our beverage professionals are knowledgeable about the characteristics and food pairings for all manner of wines, beers, spirits and other non-alcoholic choices.

“We have exclusive business relationships with the best manufacturers from around the world” 88 | be weekly

Zodiac Aviation Support, Inc

James Marlow, Senior Sales Manager

Mr. Yilma Kassaye, General Manager

They know and can help to always provide our client with the best-value-for-money our customers select the best beverages from France, possible remains constant.” Italy, Spain, Portugal, DELIVERING THE GOODS Chile, South Africa and the Zodiac Aviation “Another personalized aspect USA. Best of all, individual Support established and customized size choices of the services ZAS provides are available.” is our concern for and focus Catering services: “The on our customers desired customers who involve us in their catering delivery schedule. We know the value of needs, think of us as their airline’s executive on-time delivery and we prove it on a daily chef. Working in conjunction with renowned basis. We also routinely help customers lower food connoisseurs and catering organizations their expenses by planning deliveries to worldwide, the staff at Zodiac brings a new coincide with an airline’s flight schedule which level of excellence to every meal selection reduces freight costs by arranging deliveries and presentation. The selections may vary, directly to the airline at a destination their to fit individual budgets, but our commitment aircraft serve,” said Kassaye.


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Zodiac offer a customized in-flight design service

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Zodiac Aviation Support, Inc

“Working together, our airline customers and our ZAS in-flight service designers define the airline’s on-board service goals and design” MAKING THE RIGHT CHOICES “Many times it’s not about added expense but rather about making the right choices. Raw materials and manufacturing techniques differ from supplier to supplier so you need an experienced guide. Our customers look to Zodiac to provide sturdy yet light weight pieces that won’t collapse on their customer, and long-lasting rotables that keep their shine flight in and flight out. We treasure the moments when our customers tell us that their passengers have commented about their great in-flight product experience. That’s the Zodiac difference.” ON-BOARD SERVICE DESIGN “Working together, our airline customers and our ZAS in-flight service designers define the airline’s on-board service goals and design. Together we define the image our airline customer seeks to project. Working with Zodiac ensures that the customer ultimately gets the right products at the best price in order to deliver their customized in-flight service design vision.” SUPPLIES ON HAND “It’s not surprising that when an airline serves thousands of customers each day, sometimes supplies can run short. ZAS customers needn’t

worry about such situations. Our “buffer stock” program provides our customers with peace of mind. They know that ZAS keeps ample supplies of their most ordered items on-hand. These buffer stock items can be expedited and delivered to them on a “just in time” basis. CHALLENGING TIMES FOR AIRLINES “Commercial aviation is a tough, competitive, cut-throat business at the best of times—and these are hardly the best of times. Airline operational costs are high and profit margins are historically thin. Today ’s global economic environment is challenging for any company. When the marketplace is tough and the economic times are hard, Zodiac has the financial strength to work with our customers no matter what their credit needs are. We’ve even entered into joint ventures with customers to have our products manufactured in their home countries using local labor and raw materials. Zodiac Aviation Support, Inc. always goes the extra mile for the customer,” said Kassaye. For more information about Zodiac Aviation Support, Inc visit: www.zasusa.com

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world best practice Cyclone Projects & Consulting cc (CP&C) was established in September 1998 and since that time has undertaken and successfully commissioned an impressive list of projects for the major mining houses and the mining industry worldwide


P&C is considered to be the leader in the field of tailings storage facilities (TSFs) cycloning technologies and is the appointed consultant for many mines in the RSA and Africa where the technology has widely been implemented. The interest in cycloning opportunities inspired more research into this technology in construction of gold and other mineral TSFs. The most obvious advances in cycloning,

“The obvious advances in cycloning, are the vast increase in TSF stability and water recovery.� 92 | be directory

amongst others, are the vast increase in TSF stability and water recovery. The recent development in TSF vacuum cycloning has been a breakthrough in TSF construction and the patented system (SA Patent No. 2011/03614) has been accepted and implemented widely by the mining industry. Cyclone Engineering Projects (Pty) Ltd (CEP), an accredited BBBEE company, was founded during 2007 on demand by the mining industry to operate and manage cycloned and other TSFs, based on the ongoing developments in the cycloning field. The field of expertise, apart from cycloning, has been expanded into spigot TSF and paddock TSF construction and the full range of TSF construction/management is now covered. Hydraulic monitoring of old


TSFs forms part of the package and highly skilled employees form part of the success in the mining process. CEP introduced the mine/contractor partnership in the construction of new TSF civil works and our first project was successfully commissioned during September 2012, saving the client approximately 45 percent on budget! More of these kinds of construction ventures are already in the pipeline for 2013. Both companies’ client base includes: • AngloGold Ashanti (South Africa • Region Tailings, West Africa • Tailings & East Africa Tailings) • Debswana Diamond • Company (Botswana)

• Okorusu Fluorspar (Namibia) • Kenya Fluorspar (Kenya) • Langer Heinrich (Namibia) • Xstrata Rhovan Alloys • Evraz Vametco Alloys • Copper Eagle Burnstone Mine All major consulting engineering companies. CYCLONE PROJECTS & CONSULTING cc P O BOX 22000, Helderkruin 1733 Republic of South Africa T +27 (11) 662 2916 E info@cyclones.zo.za www.cyclones.co.za

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A ‘can do’ company

A One-Stop-Shop for crusher spares, belting, materials handling, consultancy and advice


ES International Ltd is a long established supplier of products and services to the mining, quarrying and recycling industries. We have built our reputation as a “can do” supplier, available 24/7 to respond to breakdowns and urgent requirements with the highest level of service. MES International truly is a “one stop shop” for your operating needs. We supply the highest quality precision engineered crusher spares for Primary, Secondary and Tertiary machines including Symons Nordberg,

“Our skilled engineers can provide you with advice on any aspect of your project” 94 | be directory

HP and MP series, Svedala, Omnicone, Telsmith, Sandvik, Allis Chalmers, Terex Cedarapids and Parkers. Our high quality impact and abrasion resistant conveyor belting is available in a range of widths and strengths to meet your requirements and with a 24 hour breakdown response, we are always here when you need us. We supply a durable range of vulcanising presses, along with splice kits and equipment for in-house vulcanising teams. With our own teams of highly qualified and experienced vulcanisers, we can undertake all hot & cold joints, maintenance and training etc. We manufacture Material Handling Systems including Design, Installation & Commissioning, from overland conveyor structures to waterside loading systems. We also design, re-design, maintain and supply conveyor struture and radial stacker systems, along with drums, rollers and take-up units through our Engineering Services, who can also

MES International Ltd

provide strip down and re-build services for crushers on scheduled shutdowns or assist with emergency breakdowns. Our Consultancy & Advisory Service can assist with planning a new mine or extending an existing site, our skilled engineers can provide you with advice on any aspect of your project. Our revolutionary patented Stone Powered Electricity system is an environmentally friendly way of generating FREE electricity from your falling stone, the same way water is used in a hydro electric plant. This electricity can be used for lighting walkways or fed/sold back into the grid and eliminates the need for intricate chute

designs, dead boxes and liners/deflectors that can drop out and cause damage to belts. The slowing benefits of vibratory feeders is mirrored by the SPE system, which also generates electricity! To discuss how much free electricity your conveyors can generate, please contact us. MES International Ltd Bruntingthorpe, UK. T +44 116 247 8342 MES International Zambia Ltd Kitwe, Zambia. Cell: +260 977 778 487 www.mesinternational.co.uk

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

Be seen throughout our portfolio of magazines: •BE Mining Directory •BE Mining •BE Weekly •BE Monthly •

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

Profile for Business Excellence Magazine


Issue No.38


Issue No.38


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