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imperial group: marlin minegoldcorp: vodacom tanzania:

metro de santiago:

Serving Santiago The extensive expansion programme of South America’s largest subway system

Included The BE Mining Directory showcases leading mining organisations from across the world, ranging from big corporations to junior mines and their supply chains. Be seen throughout our portfolio of magazines: •BE Mining Directory •BE Mining •BE Weekly •BE Monthly •

Go to page 248 to see this month’s listing To find out how to get involved contact: vincent@bus-ex.com

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

business Richard Turner Director of sales rturner@bus-ex.com Vince Kielty Director of Editorial Research vkielty@bus-ex.com Sharon Rooke Administration & Operations srooke@bus-ex.com Matt Day Head of technology mday@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

John O’Hanlon Editor

John has contributed to Business Excellence since its inception: he joined the in-house editorial team in February 2013. johanlon@bus-ex.com


Barbara Trautlein

Mark Forrest

Rickard Alfredéen

Andy Turner Chief Executive aturner@bus-ex.com




General manager

Infinity Business Media Ltd

Dominique Karg

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

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




Dr. Jack C. Chow Professor

David Chancellor Partner

© Copyright 2013 Infinity Business Media Ltd.

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12 Operations

More with less

How detailed information and modest behavioural changes can help to achieve field service excellence with fewer resources.

20 Entrepreneurship

Can you hack it?

20 4 | BE Monthly

A successful hacker turned business owner talks about what he looks for in potential employees.


26 Sales and marketing

Best of enemies or sworn friends?


The ‘on/off’ relationship between sales and marketing functions persists across organisations of all sizes and is threatening business success.

32 Comment: Change management

The challenge of change

If you’re struggling to transform your business to survive and thrive, here are five tips on leading change in challenging times.


36 Strategy

Succession planning

Succession planning is not just about maintaining a leadership pipeline anymore. It has evolved into a strategy that helps high performing companies stay ahead in growth and profitability.

$ $

42 strategy

The art and science of pricing

Practical, structured ways to increase profitability by pressing the right pricing levers.

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business showcase


Transport & logistics: 48 Metro de Santiago

Serving Santiago

CEO Roberto Bianchi talks about the extensive expansion programme being undertaken to improve the infrastructure of South America’s largest subway system.



58 DHL Global Forwarding – Sub Saharan Africa Always moving forward

How the business is striving to become the first choice solutions provider for its customers and the wealth of opportunities Africa has to offer.

66 Berco – an Aramex Company Two giants unite

How over the course of two decades, a small, family-run business has been able to transform itself into a leading international logistics provider.

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78 Imperial Group In imperious form

How the diversified nature of Imperial Group’s business activities is helping it to prosper despite some challenging conditions.

Mining & Minerals: 88 Goldcorp – Marlin Mine


Marlin Mine: Sustainable opportunities


Through its Marlin Mine operations, Montana Exploradora de Guatemala, a subsidiary of the Canadian firm Goldcorp, is working to ensure the country will soon be able to unlock its potential.

112 Nkomati Mining Reaping the rewards

Mining manager Trevor Visagie explains how the rapid development of the Nkomati mine continues to reward not only its employees, but the local community as well.

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business showcase

124 JSPL Mozambique Minerais Limitada Powering the future

Mozambique is fast becoming one of the most important places on earth for mining. Discover JSPL Mozambique’s commitment to the growth of this sleeping African giant.


132 EMED Mining



EMED Mining, listed in London and Toronto, is a tiger in the economy of Spain, ready to spring into large scale copper production at the end of this year: it may not save the economy but it will help.

140 Adrok

Looking beneath the surface For more than 15 years Adrok has been a pioneer in the field of geophysical services. Managing director, Gordon Stove discusses the next stage in the company’s growth and what it entails.

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150 162

150 Polycorp Ltd

FLEXIBLE FORMULATION Polycorp is a specialist in polymer products for the transportation, industrial and mining sectors, it is growing fast and focused on international expansion.

manufacturing: 162 NatSteel

As strong as steel How the success of offsite prefabrication reinforcement products and services have helped refocus the business.

170 SMTC

The perfect manufacturing partner SMTC is committed to delivering the right solutions to innovative partners around the world.

178 Grafton Everest



South Africa’s leading manufacturer of lounge suites aims to capture the increasing demand for fine furniture.

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business showcase


telecoms & ICT: 190 Vodacom Tanzania

Bringing technology to Tanzania Continually evolving its product and service offerings to remain the country’s leading cellular network.


198 Rural NetCo Ltd. Connecting the dots

The shared mobile broadband network concept that will not only benefit thousands of people in Tanzania, but potentially millions across Africa.


Changing for the better Director General of ZICTA discusses the role the Authority has played during this exciting period of change.

214 Harvest FM

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Change is in the air How Harvest FM has helped achieve social freedom by exposing corruption and fighting for local communities.



energy: 220 Torresol Energy, Gemasolar


Torresol was established with the aim of becoming a world leader in the Concentrated Solar Power sector.

Retail & Leisure: 232 Franchise Association of South Africa

Perfect timing

The franchise industry is booming thanks to changing consumer spending habits, an increase in innovation and a willingness to explore new ways of working.

238 Curves Africa Ahead of the curve


From the day its first Franchise opened in South Africa, Curves Africa has gone from strength to strength.

BE Directory 246 adrok

Pioneering Geophysical services

248 Arlona Engineering PROUDLY SOUTH AFRICAN

250 CAE Mining

Training the next generation

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More with

How detailed information and modest behavioural cha help to achieve field service excellence with fewer resou

written by: Mark Forrest

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anges can urces

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gainst a bac kg round of r isi ng fuel prices, restricted budgets, a changing regulatory landscape and spiralling customer expectations, field service businesses have endured a tumultuous environment over the last few years. The ability to meet customer demands and achieve cost goals has become a more difficult balance, leading many struggling to achieve more with less in the battle to deliver field service excellence. Trimble recently carried out an independent study entitled, The Road Ahead: The Future of Field Service Delivery among directors and senior managers operating large field-based work forces in the UK, and found that businesses are struggling to fully deliver on their vision for field service excellence due to economic restraints putting pressure on internal resources; just 48 per cent of respondents were on target to achieving their annual business goals. Field service management systems have come to the fore as enablers to help streamline

business processes to improve workforce productivity and customer satisfaction, without the need to increase the size of a field-based workforce. However, there is often a lack of understanding of the capabilities and huge cost savings these technologies can deliver. According to AberdeenGroup surveys, investment in field

48% Number of respondents who where on target to achieving annual goals service management tools provides far reaching benefits including: • 32% improvement in fleet utilisation • 31% reduction in daily mileage • 25% reduction in idle times • 22% reduction in fuel consumption • 21% reduction in vehicle and operating costs • 11% increase in service revenue • 9 % improvement in workforce productivity

Tackling the budget black cloud The availability of budget emerged as being a major barrier to achieving field service excellence for around one quarter of the Road Ahead report respondents: 27 percent said the board is fully committed, but lack of budget meant they could not follow through on their planned vision; while a small minority (11 percent) felt that the board only paid lip service to field operations. Indeed, only 18 percent of those surveyed currently possess fully automated scheduling, dispatch and mobility tools. The majority are operating partly-manual, partly-automated systems, integrating a diverse mix of often incompatible legacy systems. However, by producing a detailed business case, it is feasible to demonstrate that investing more now can significantly reduce costs in the long run. Field Service Management solutions including the likes of Fleet Management and Work Management technologies have emerged as being powerful management

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“the fleet management technology typically includes the vehicle location, speed and time” tools and provide new levels of field service and vehicle fleet performance. Interestingly, those field service organisations that operate fleet management, for example, say they recoup the benefits, with a more efficient workforce, reduced insurance costs and improved working practices, all factors which can lead to a rapid ROI. Given that doing more with less is a concern for 60 percent of respondents, investment in such technologies is recommended in order to improve efficiency in a short timescale. The capabilities of modern field service management solutions can improve a company’s productivity and level of service by enabling every aspect of a mobile operation to be identified, measured, and analysed. Efficiency can be increased by completing more tasks per day with the same

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workforce and a boost in customer satisfaction and retention can be achieved through greater appointment flexibility. The technology also helps boost customer satisfaction by enabling better communication, answering more customer service calls per day and mitigating return visits by getting the right worker to the right job at the right time. In addit ion, t he information provided by the fleet management technology typically includes the vehicle location, speed and time, but also may include work order information, driver behaviour and vehicle diagnostics data such as mpg, fuel use or vehicle faults. As a result of the insight delivered, businesses can start to reduce direct expenses such as fuel costs by optimising route planning, improving operational efficiencies and driving


Operations revenue generation through top quality customer service and maximum flexibility. With the knowledge of where resources are, their status and time on site, businesses can make the real-time decisions required to keep their operations running as smoothly and as cost effectively as possible. Minimise the impact of fuel price hikes The Road Ahead report revealed that rising fuel prices have become the number one concern in meeting field service priorities, and as vehicle utilisation is a daily necessity for field services, it is a major contributor to budgetary concerns. However, although fuel costs may be beyond the control of fleet managers, consumption is not. Once deployed, fleet management technology can decrease a business’s fuel costs by

reducing unauthorised vehicle use, curbing excessive speeding as well as lowering vehicle idling times by 50-90 per cent. By improving ve h ic le ma i ntena nce scheduling and monitoring a vehicle’s performance fleet management solutions can also help businesses reduce the amount of fuel used by their fleet, and increase the amount of time vehicles are in productive use. This increased asset utilisation reduces vehicle component wear and tear, which lowers the risk of mechanical failure, increasing a company’s profits further. However, it is worth noting that fuel utilisation can vary significantly between drivers due to driving style and also the health of the vehicle. You cannot manage what you cannot measure. It is for this reason that fuel data use per individual vehicle can be of significant value to managers,

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“Simple policies to improve driver efficiency can also play an important role in containing fuel costs” rather than the overall fuel use of a fleet. Simple policies to improve driver efficiency can also play an important role in containing fuel costs. This could be as ‘low tech’ as introducing ‘how is my driving?’ stickers which are proven to improve safe driving (and therefore fuel consumption), or look at a driver training programme that teaches more efficient driving. Small changes in driver behaviour, vehicle condition and intelligent routing all make a significant difference to fuel use and can be controllable through driver education, better work scheduling and regular maintenance, servicing and even tyre pressure checks to minimise fuel wastage. The Energy Saving Trust (EST), for example, provides training for fleet drivers through its Smarter Driving training programme that

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Operations focuses on more fuel efficient driving which goes handin-hand with safer driving. However good drivers may think they are, the practical vehicle-based course shows drivers what is possible and how differently an individual can actually drive. The course, which has trained over 30,000 fleet drivers, is about changing driver behaviour through showing people how to think differently and increase their awareness on the road. The course typically shows a 15 percent improvement in fuel saving. Address customer service priorities while boosting productivity Trimble’s Road Ahead report revealed that, above all, achieving customer satisfaction is the number one priority for field services and 60 percent felt that this will need to be achieved with fewer resources. The vast majority of respondents (80 percent) find that customers are more demanding than five years ago, and in terms of deliverables, meeting those challenging consumer expectations is an area businesses must concentrate on to truly excel.

80% Believe customers are more demanding than five years ago Effective delivery is critical to a positive service experience. Tardy arrivals, missing deliveries and the inability to specify a time and date for arrival are the key contributors which have left consumers feeling let down by field service deliveries. It is no longer acceptable to say anytime during the day and a staggering 81 percent of respondents placed a high priority on offering acceptable appointment slots, as they recognise the busy consumers of today want more certainty from their suppliers. Building a relationship with a customer, making a promise and delivering on it will allow for a happier

customer base but achieving this can exponentially affect costs in terms of resource allocation, something many businesses are struggling to control. Managers can tackle this by optimising scheduling to ensure customers are offered acceptable appointment slots, which are met and attended to by qualified and prepared staff. Recent consumer research commissioned by Trimble found that customers are willing to pay for next day delivery, allowing organisations to charge a premium price for a premium service, as well as improving workforce utilisation and avoiding the financial and environmental costs of repeat appointments. Ultimately, getting it right the first time round will utilise your resources in the most efficient way whilst keeping the customer happy and brand reputation intact.

Mark Forrest is general manager of Trimble’s Field Service Management Division, which provides visibility into field and fleet operations so businesses can streamline efficiency and increase productivity. www.trimble.com/fsm

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Can you h

A successful hacker-turn about what he looks for

written by: Do

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h ck it?

ned-business-owner talks r in potential employees

ominique Karg

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very child, at some point, will be asked what they want to do when they grow up. Few will declare themselves set for a life as a ‘hacker’ and fewer still declare themselves CEO material. Yet, with many production lines either grinding to a halt or manned by robots, technology has become the beating heart of many organisations. Dominique Karg, proud hacker and co-founder of AlienVault, asks whether we should be nurturing a different skillset in our young. There has been much debate in the UK about the GCSE exam format. On the one side are those that argue it should be scrapped in favour of a complex testing process to produce stronger candidates; others believe this disadvantages those

youngsters who buckle under the pressure of examination conditions. Both sides have valid points but surely what’s being ignored is the bigger picture—making sure these future employees graduate with the life skills needed for their working lives ahead. Blue sky thinking In a classroom environment, children who question teachers are labelled as trouble makers, and those that take things apart as delinquent. But surely that’s exactly what’s needed in today’s world? Rather than a workforce of followers, I like to hire people who think outside the box, question everything and challenge the rulebook— as long as it’s legal. Let’s face it, if Columbus hadn’t sailed out to check, perhaps many would still believe the world was flat. As a hacker, my instinct

“Rather than a workforce of followers, I like to hire people who think outside the box”

is not just to try what I know works, but look for ways so that it doesn’t. As a businessman I recognise that just because something’s always been done a certain way doesn’t necessarily make it right. I need to constantly evolve, and ensure my business does too, if we’re both to survive. What about the box? The same is true for technology. It too is continually evolving and employees who are scared of change are going to hinder these advancements. In the classroom children need to embrace exploration and excite in discovery, not run from the prospect. As we continue to rely on technology, for even the most basic of functions in the workplace, the ability to look at a problem from every conceivable angle, to discover a working alternative, is a necessity. Does this mean we need a shake-up of the examinations our children take? Who knows? What I do know is that the curriculum and teaching practices need revolutionising to ensure

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technology isn’t just used for other subjects, but learned in its own right. Play to your strengths When playing video games as a child, I would always look for ways to ‘break’ the code to secure myself additional ammo, extra units or create different guises. There will be some who see it as cheating, but is it? Surely I’m just using my skills effectively. For me, the fun of the game is beating the game designers. If it gives me an edge then

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shouldn’t that be applauded rather than something to be ashamed of? Transferring this to my career, I wouldn’t have got very far if I gave up at the first hurdle. Similarly, I wouldn’t have made many sales if I stopped with the first no. What we need our youth to value is tenacity, not just an A*. Learning from living I’d be the first to put my hand up and say I ‘dropped out’ of university but that doesn’t

make me a failure. In fact, quite the opposite. I have a fire in my belly and a passion for security that I’ve used to get where I am today. As an employer it means I don’t just look at a CV to see what grades a person had when they left full time education, but what they’ve done with them since. As parents we can become fixated on the grades our children achieve and, yes they are important, but they’re not everything. Perhaps what we also need is a ‘common


“I don’t just look at a CV to see what grades a person had when they left full time education, but what they’ve done with them since” sense’ examination. I’ve interviewed a few ‘Grade A / 1:1’ students over the years who struggle to function in the ‘normal’ working world. Surely the education system has failed them! While I wouldn’t advocate every primary school child

be given a computer and then taught how to break into government databases (although it would certainly keep these establishments on their toes), I do think inquisitiveness should be actively encouraged rather than seen as an evil that needs to be quashed. If a child has a natural talent – be it football, mathematics or even breaking code, this should be the focus rather than the elements of the subject that are likely to appear on the examination paper. We need employees who are willing to stand up for what they believe and question what they think is wrong. Perhaps then rogue bankers won’t cripple our

financial institutions. In my experience, the best person for the job is someone with passion – certainly the best security professionals are those that are passionate about security. Of course, the basics are important but so is creativity and flair. Just like I recognised my skills as a hacker from an early age, now as an employer I recognise the skilled individuals within my workforce and deploy them appropriately. What I think is important is passion, creativity, morality and tenacity. As long as these score an A* then that’s the main qualification I’m looking for from future employees.

Dominique Karg is co-founder and chief hacker at security management firm AlienVault, where he combines his two computer related passions: security and the power of open communities. www.alienvault.com

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Best of enemie or sworn frien The ‘on/off’ relationship between sales and marketing functions persists across organisations of all sizes and is threatening business success. New research signals that sales and marketing need to bury the hatchet

written by: Phil Brown

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Sales and marketing

es nds?

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arlier this year, The Channel Partnership under took r e sea r c h in partnership with The Leadership Foundation to examine the relationships between sales and marketing professionals in businesses. A thousand sales and marketing professionals were interviewed to understand why disconnects and communication breakdowns are so common between sales and marketing teams. Our report, Sales and Marketing: Best of enemies or sworn friends? found that although sales and marketing teams both value marketing, tensions, misunderstanding and a lack of communication between the divisions is putting their business success at risk. Fifty seven percent of respondents reported that a lack of a cohesive strategy

was a source of problems with their organisation’s go-to-market approach. They claimed less than twothirds of marketing activity was part of a long-term plan, and that more than a third is unplanned and reactive. Almost a third felt that marketing activities were too driven by short term goals and admitted that around a third of planned marketing activity doesn’t ever get implemented – so ends up being a waste of time and money. Two thirds of respondents said the divide between marketing and sales teams is driven by the fact that the teams are set different targets and objectives. In addition, nearly two-thirds felt that political conflict between senior managers was a cause of disconnect between the teams. Poor communication between departments, a failure to value each other’s contribution to the business,

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Sales and marketing and lack of understanding of each other’s roles were also highlighted as issues by more than half of respondents. Another major bugbear for 59 percent of sales executives is that marketers don’t spend enough time talking to customers and so don’t understand how their products or services create value for them. Over half of sales executives also said that marketers lack understanding of the sales role and equally, over half think the marketing team don’t understand what the sales team needs to be successful. Forty eight percent claimed that marketers lack commercial awareness. It would also appear that many businesses are failing to get their sales and marketing managers to work from a common set of objectives and targets, and to fully understand each other’s role and value. These misunderstandings are ultimately leading to a lack of alignment in organisations which will impact business success. Only 16 percent of marketers felt that all of their go-to-market activities were fully aligned today. A range of factors were highlighted

59% Amount of surveyed sales people who believe marketers don’t spend enough time talking to customers that limit their ability to build fully integrated plans. Lack of budget was identified by 27 percent of marketing people as a very significant obstacle, as well as a lack of direction from senior management (26 percent) and lack of time (24 percent). Disconnects are no good for any business, because each team has a crucial role to play in the go-to-market strategy of the organisation. Any conflict will naturally result in a less than cohesive approac h, u lt i mately undermining the ability to drive sales revenues. All these issues culminate in sales and marketing executives both claiming the other doesn’t understand their needs and the contribution they make to the business. The fact that marketing is perceived as

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not understanding the needs of salespeople ref lects another common issue, which is the perception that marketing fails to take responsibility for the end-toend go-to-market process. On a more positive note, sales people do value many marketing activities. A wide range of marketing activities were rated as ‘valuable’ by at least two-thirds of salespeople, including building brand awareness (83 percent), generating sales leads (83 percent),

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developing compelling propositions (81 percent), and providing market insight (81 percent), which suggests the commonly held view that sales people don’t value marketing is overstated. While they may value these

81% Number of surveyed sales people who value marketing activities

activities, however, there are clearly deep rooted issues that need to be addressed between sales and marketing teams in many companies. One solution is for these organisations to improve go-to-market planning, driving better alignment between marketing and sales activities and breaking down communication barriers within their businesses. If both teams are involved at the start of the planning process and share business objectives and goals, a go-to-market

Sales and marketing

“It might not always seem like it, and our research clearly suggests there are conflicts to resolve, but ultimately sales and marketing are on the same side” strategy is much more likely to have the desired result. Very often B2B sales and marketing teams are selling complex solutions with long sales cycles. It’s rarely a straightforward process and usually requires a multifaceted approach whereby

every element works together to deliver a clear and compelling message. It might not always seem like it and our research clearly suggests there are major conflicts to resolve, but ultimately sales and marketing are on the same side. The UK still teeters on the brink of recession and the rest of Europe continues to struggle. There is limited economic growth predicted for 2013 and all forecasts point to the fact that companies will have to work harder than ever to ensure they survive. This leaves a very important role for sales and marketing teams to play. Poorly aligned and disconnected sales and

marketing teams can fundamentally undermine the go-to-market efforts of any B2B organisation and must be improved within any business looking to thrive this year. Companies need to build integrated go-tomarket plans, which are jointly developed and owned by both sales and marketing. Senior leadership therefore has an obligation to ensure they are working as an effective single team if they’re to maximise their chances of success. In the end, those organisations able to deliver a fully aligned go-to-market approach will have the best chances of driving profitable growth, regardless of a gloomy economic outlook.

Phil Brown is a director of The Channel Partnership, a B2B marketing agency. With 15 years’ experience creating go-tomarket programmes in the technology, telecoms and online sectors, Phil is the partnership’s strategy expert. www.thechannelpartnership.com

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The challenge of change by: Barbara Trautlein

comment: Change management


utting the right people at the helm has launched many high-profile, highly successful turnarounds, from Jack Welch in his early days at GE to Meg Whitman at eBay. But companies don’t have to fire the entire C-suite to put “new” leadership in place, says Barbara Trautlein, author of Change Intelligence: Use the Power of CQ to Lead Change that Sticks. “Leadership is the key to successful major organizational change, which has had a failure rate of 70 percent for decades,” she says. “It IS possible to lead successful and sustainable change, IF it’s led effectively. The problem has been that, so often, it’s not.” Work for c e s in every industry – from manufacturing to service to healthcare to high tech – are confused and bruised, she says. Employees in this economy thirst for guidance but are distrustful and disenfranchised, not engaged, empowered, or equipped to do what is needed to help their organizations transform to survive and thrive. The solution? Those who

lead change must first change themselves. Trautlein shares five simple but effective ways to accomplish that: • Change your story: R e f r a me r e s i s t a nc e . Resistance in organizations is like the immune system in the body; it protects against harmful invaders from the outside. Just like pain in the body is a symptom something is wrong, so resistance is a sign to which managers should pay attention. The goal is not to eradicate it, but to allow it to surface, so it can be explored and honoured. To lead more effectively, learn to see resistance as your ally, not your enemy. • Change your stance: Picture a triangle. So often, we view ourselves on one angle, others at another angle, and “the problem” on the third angle. In our minds, it feels like it’s us against the other people as well as the problem. That’s exhausting. Instead, re-envision yourself and the other people working together to solve the problem. Move from being and feeling and acting against others, or doing something to others,

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comment: Change management or even in spite of others, to working with and even for them. If you can make this simple mindset shift, how you relate to others will almost immediately become pa lpably pa r t nership oriented to them. • Change your seat: What you see depends on where you sit. Change looks very different at different levels of the organizational hierarchy. Those at the top are typically isolated. Those at the bottom are most resistant. Those in the middle are squeezed. Sit in others’ seats and appreciate their pressures. Adapt your approach and messages to the very different needs and concerns of these very different audiences. • Change your style: We all know the Golden Rule: Do unto others as you would wish them to do unto you. To lead change effectively, follow the Platinum Rule: Do unto others as THEY wish to be done unto. Tell stories they can relate to. Share statistics relevant to them. Demonstrate what’s in it for all of us to work together in new ways.

• Change your strategy: So often, what looks like resistance is really that people don’t get it, don’t want it, or they are unable to do it. Engage the brain by explaining the “why” and “what” of the change – help the “head” understand your

vision, mission, and goals. Paint a clear picture of the target and the end game. Inspire the “heart” to care about the change objectives by engaging with others, actively listening, dealing with fears and insecurities, and building trust. Help the “hands” apply the change – provide tactics, training and tools, and eliminate barriers standing in people’s way. The good news: None of these prescriptions require leaders to change who they are. “They are all about shifts in mindsets and behaviours. It’s about the flexibility to adapt our leadership approach to get us all where we need to go,” Trautlein says. It’s amazing how when we change, others change. “It’s been said before – because it’s true: Be the change you wish to see in the world. That’s leadership.”

Barbara Trautlein is a change leadership consultant, author, international speaker and researcher with more than 25 years’ experience partnering with organizations to lead change that sticks. She helps all levels of leaders in achieving their personal and professional goals in industries ranging from steel mills to sales teams, refineries to retail, and healthcare to high tech. www.changecatalysts.com

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Succession planning Succession planning is not just about maintaining a leadership pipeline anymore. It has evolved into a strategy that helps high performing companies stay ahead in growth and profitability

written by: David Chancellor

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here was a time when succession planning was something only companies large enough to employ thousands of people did as part of an overall management development strategy. Since then screeds have been written on the evolution of succession planning, most of which points to the need for organisations to plan for the inevitable loss of key staff, irrespective of their seniority. Yet succession planning as a discipline needs to evolve beyond aiming to ensure continuity in management. It needs to be regularly reviewed as company cultures and economic climes vary. Those organisations who believe succession planning is something which is undertaken when all other management issues are in hand and the business

is booming are setting themselves up for a hard time ahead. In their recently published book Jumping the S-Curve, authors Paul Nunes and Tim Breene discuss a different reason why some companies use succession planning. After studying more than 6000 companies from a wide range of industries around the world, their research shows that high performers (take Adobe Systems as an example) use succession planning to continually renew their top management as a precursor to renewing the company. They define high performance companies as those that consistently outperform competitors in both growth and profitability. Nunes and Breene claim that by using succession planning in this way, these companies tend to change their CEOs and other senior executives according to a

“succession planning needs to evolve beyond Ensuring continuity in management� 38 | Be monthly







“The right people today may not necessarily be the right people for tomorrow” timetable that implicitly or explicitly recognises the need for company transitions along what they call the capabilities S-curve. By this, they mean that senior managers and boards don’t wait for a crisis or other event to happen before they act; instead, they follow a strategy that proactively leads to changes in the company’s top management in order to drive organisational transformations ahead of this curve. Whatever objectives senior management and boards have for succession planning, the principal purpose of a succession plan is continually to evolve management, not just at the senior level but also at junior levels, creating the talent necessary for the time when it is required. The emphasis should not just be on having the right people in place to fill a vacancy created by a key person leaving the

company but on having the right person in place to undertake the role which will ensure continued success. E v ol v i n g i nt e r n a l management is not dissimilar to evolving the non-executive directors on the board. The right people today may not necessarily be the right people for tomorrow so management evolution takes into account the time when new leadership may, or will, be required. It is more than just having a pipeline of appropriate talent. Particularly at CEO level, successor development should be based on the creation of more than one candidate. Although these people will be prepared and trained on the basis of the company’s unique circumstances at that time, selection of the most suitable candidate is then made based on the environment in which the company is operating when a successor is required, and the direction it is taking.

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“Selection of the most suitable candidate is based on the environment in which the company is operating when a successor is required� Succession planning can also be mistaken for cloning, which is neither functionally appropriate nor desirable. Yet without sound expertise and an external overview of the company in question, it is easy to see how a successor assumes the role and leadership style of the predecessor, mimicking their behaviours. This leads to the role played by the CEO in leadership development and succession. Whilst their intentions to groom an appropriate successor are no doubt honourable, mistakes have been made where the CEO has been given too much control and the process ends up with their moulding the successor after themselves. One method of achieving total transparency in the development and selection process is a competency framework. This provides senior management (and the

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Strategy board where appropriate) with the opportunity to consider the evolution of corporate capabilities. It is not uncommon to find that individuals will mould their jobs to suit their motivations and experience. A competency framework provides those responsible for the management of human resources to consider how a role should evolve as the company’s commercial and management strategies evolve. Even though prospective internal candidates may receive appropriate training and be groomed for significantly more senior roles in the company, they may not end up being the best person for the circumstances in which the company finds itself at the time a successor is required. A competency framework can be useful in these instances when the search for the right candidate needs to be widened to external sources. It provides greater clarity of the competencies and other attributes required and aids the recruitment consultant in the search for the most

6,000 Number of companies studied which led to the suggestion that succession planning is used as a precursor to renewing the company appropriate individual. The competency framework is also useful in ensuring that the succession planning process is legally compliant and not simply a method to discriminate based on issues such as gender or age. Whilst there may not be a critical shortage of key talent today, that situation will be short-lived, just as it has been following every other recession. Clearly, it is crucial to identify the human capital demands that will be placed on companies as the global

economy recovers, and ensure that the expertise required for the future of the organisation has been fully addressed. An obvious solution is to retain and develop existing talent. Another solution is to develop a good working relationship with a reputable executive search consultant. Whilst some companies use search consultants only when a hire is essential, others develop a long-term, more generic relationship using the headhunter as their “eyes and ears” in the talent marketplace. The new war for talent won‘t begin once the economy recovers—it has already commenced. Only a few companies are aware of it and have the right strategies in place to capitalise on the return to more profitable times. No doubt much more will be written on the topic over the years, but right now the time is for action.

David Chancellor is a partner in executive search firm Tyzack Partners. He leads Tyzack’s Financial Officer practice which crosses all industry sectors and focuses on all aspects of Finance including Audit, Tax and Treasury as well as Chief Financial Officers and Divisional Finance Directors. www.tyzackpartners.com

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The ar science o

Practical, structured way by pressing the ri

written by: Rickard Alfr 42 | Be monthly


rt and of pricing

ys to increase profitability ight pricing levers

redĂŠen and Jack C. Chow Be monthly | 43


ricing is often overlooked as a strategic lever essential for revenue and profits. The global economic slowdown has heightened consumer sensitivities to pricing and value, however, prompting a resurgence of interest in integrated pricing policies and strategies. Managers often neglect the pricing lever because of the unrelenting demands of running their businesses. W hen pr icing policies do come under review, managers may encounter difficult y in mastering t he complex inter play among key variables such as customers’ perception of v a lue a nd t he i r differentiated needs across core segments. Resulting pr ic i ng p ol ic ie s m ay become too rudimentary,

a nd lead to revenue leakage, eroded margins, and lost market share. In the place of cursory or uninformed pricing moves, there are practical, structured ways companies can exercise the pricing lever to rapidly enhance profits. Pricing is much more than price Pricing involves much more than just raising or lowering the price. It requires a strategic context in which pricing choices are structured within a system of policies, processes, communications, and incentives. Paramount is having clear pricing decision rights within the organization. One illustrative example is one client’s experience with uncoordinated discounting. When a firm embarks on a discounting strategy, policies

“When a firm embarks on a discounting strategy, policies and processes are needed to prevent price erosion” 44 | Be monthly

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“analysis revealed that the company was committing frequent overlapping, and highly variable, discounting” and processes are needed to prevent price erosion – loss of revenue through unnecessary discounting - and to avoid unanticipated costs such as personnel overtime and premium freight. This company had a discounting structure with four types of discounts: 1) specific customer discounts (that only certain large key customers were entitled to), 2) volume discounts (based on order value), 3) promotional discounts, and 4) field sales discounts (that sales representatives could negotiate on an orderby-order basis). At the project start, the client’s top management claimed that their discounting was already coordinated in such a way that excessive discounting was not occurring. However, price leakage analysis (also called

net sales waterfall analysis) combined with different types of discount variability analyses revealed that, in fact, the company was committing frequently overlapping, and even highly variable, discounting. Customers sometimes received more price reductions than the client intended. As a result, the company was losing money on many of its largest customers and on many of its largest product lines. With data, it was shown that uncoordinated discounting explained more than half the profitability problems the company was facing. In this case, the company needed to reform pricing policies and establish clear discounting processes and decision rights to avoid price erosion. This compellingly shows that pricing is not only about setting the right

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“Pricing is not only about setting the right price level, but creating a well understood pricing architecture that managers can implement with clarity” price level, but creating a well understood pricing architecture that managers can implement with clarity. What is valuebased pricing? A foundation to an effective pricing architecture, and understanding what price customers are willing to pay, is knowing your customers’ perception of value towards your firm’s products and/ or services and towards the offerings of your competitors. The perception of value may include product attributes such as functionality, longevity, and even social status from owning the product. The car industry is a classical example in which makers intensively set prices to meet and shape their target customers’ value perceptions and expectations. The essence of value-based

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pricing is to identify the right prices of the product lines or service lines for different tiers and even sub-segments of customers with consistent value perceptions. While seemingly a straightforward task, understanding a product’s worth to a customer is a considerable challenge in many organizations, especially given the variability of value perceptions across segments. First, a company must find a way to segment its customers in a meaningful way. Appropriate segmentation meets a number of criteria. Each segment must represent distinctly different customer behavior or needs. Segments must be easily measurable, such as an absolute number or a percent of the market. Segments should be defined as to make a pricing action clearly actionable, e.g. it

should be possible to reach each segment through different marketing and other efforts. And, segments must be substantial, i.e. each one is sufficiently large enough to provide an economic value to the company. Effective pricing requires a thorough understanding of customers’ needs and of a product’s “worth factor” across the defined customer segments. A product’s true worth, which is a metric contributing to a company’s profit – is what the customers think the product is worth and what they are willing to pay. Product components that create worth to customers’ eyes and minds can be very different across industries and customer segments but commonly include reliability, delivery speed, brand name, auxiliary services, impact on customers’ productivity,

strategy energy efficiency, social status, and cost savings, among many others. For one client, a customer segment in one country placed energy efficiency, environmental friendliness and reliability at the top of their worthiness scale. Yet the same customer segment in a different country placed very small values on these factors and instead considered price to be their most important worth factor and consigned environmentally friendliness to the bottom. Without a firm-wide approach, the notion of ‘worth’ often creates controversy within organizations. Sales, marketing and production frequently have ver y different views of what ‘worth’ really means. To harmonize how this worth factor is determined within a company, structured in-depth customer interviews can

help managers understand how value is established by products, how they are presented to customers, and how customers react to the value proposition offered by the firm’s products and by competitors and substitutes. Pricing diagnostic To establish a pricing architecture, a company can conduct a pricing diagnostic to understand how specific offerings are priced and compared to their full

Rickard Alfredéen is founder of Oneforce, a management consulting firm focusing on commercial excellence and performance improvement. Previously he worked at Booz & Company and Bain & Company in Europe and the US. Dr. Jack C. Chow is a 2013 Harvard Advanced Leadership Fellow and a

potential for profitability. A pricing diagnostic project entails conducting a series of standard pricing analyses based on internal data and customer interviews, then triangulating them to derive new patterns and insights. Example analyses include price sensitivities, discounting variability across customers and products, and price leakage, among many others. These diagnostic analyses along with the understanding of customers’ perceived value of product offerings help to intelligently set appropriate price levels across product lines and within core customer segments. With the diagnostic fact-base, it becomes a logical and straight-forward task to adjust prices and develop an effective pricing system that addresses pricing policies, decision rights, and value communication.

Distinguished Service Professor at Carnegie Mellon University. He was a consultant at McKinsey & Company and a founding partner of CRV Capital LLC, an investment entity. He also served as US ambassador on global health issues for then Secretary of State Colin Powell.

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Metro de Santiago

Serving Santiago CEO Roberto Bianchi talks about the extensive expansion programme being undertaken to improve the infrastructure of what is South America’s largest subway system

written by: Will Daynes research by: Louisa Adcock

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Aerial view of the Metro line runing through Santiago

Metro de Santiago


ounded in 1542, Santiago has been the capital city of Chile since colonial times. Located within the country’s central valley, its cityscape is shaped by several stand-alone hills and the Mapocho River. Situated mere hours away from both the mountains and the Pacific Ocean, visitors to Santiago are also treated to views of the iconic Andes Mountains from most places across the city. In recent decades Santiago’s steady economic growth has helped transform it into something of a modern metropolis, home to extensive suburban development schemes and a rising skyline that includes the tallest building in Latin America, the Gran Torre Santiago. The city has also developed a modern transportation infrastructure which includes the Metro de Santiago, South America’s most extensive subway system. “It was on 24 October, 1968,” explains Roberto Bianchi, CEO of Metro de Santiago, “that the then President of the Republic, Frei Montalva, signed the decree that resulted in the birth of the Santiago Metro. Just over seven months later, on 29 May, 1969, work commenced on the first stretch of Line 1, between the San Pablo and La Moneda stations. The first journey carrying passengers would take place on 15 September, 1975.” Today the network boasts 108 stations, which cover five lines, four maintenance garages and a corporate office, from which its control centre monitors the whole operation. As of December 2011, the company employed more than 3,200 people in various positions throughout the operation. “Today,” Bianchi continues, “we are

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Metro DE de SANTIAGO Santiago METRO implementing a plan for a daily ipsum basis and position us Metro de Santiago feature Lorem dolor sit amet, infrastructure improvements. as the structural axis of elit, the text to go here....Lorem ipsum consectetur adipisicing This involves purchase Santiago dolor sit amet,the consectetur sed do transport eiusmod system.” tempor T he ng of new trains, incididunt utwork labore et bei dolore adipisicing elit,equipment sed do for a new, advanced driving undertaken represents eiusmod tempor incididunt ut magna aliqua. Ut enim the ad systemet dolore on Line the biggest veniam, expansion challenge labore magna1,aliqua. minim quis nostrud gradual of air in the history of the laboris Metro Ut enim incorporation ad minim veniam, exercitation ullamco conditioning in trains on lines withut aliquip the ex simultaneous nisi ea commodo quis nostrud exercitation 1,2 and 5, the modernisation constructionDuis of Lines and ullamco laboris nisi ut aliquip consequat. aute 3irure of ea older trains,consequat. platform 6. “These routes alone,” ex commodo dolor in two reprehenderit in extensions the dolor building Bianchi states, “make up Duis aute and irure in voluptate velit esse cillum of lifts withininthe oldest This is a caption CEO this Roberto Bianchi dolore 37 kilometres of tracknulla and is a caption reprehenderit voluptate eu fugiat 28 stations, Excepteur working together stations. plandolore involves velit esseThis cillum eu pariatur. sint to ease congestion the proident, city and improve an investment of $400 million will occaecat fugiat nulla pariatur. Excepteur sintand occaecat cupidatat innon sunt in improve the service we provide to more the quality of life for the people of Santiago.” cupidatat non proident, sunt in culpathan qui culpa qui officia deserunt mollit anim id Bianchi, oncedolor both routes are 2.3 million passengers on estAccording officia deserunt mollit who animuse id the est Metro laborum. laborum.toLorem ipsum sit amet,

THALES Thales is a global technology leader for the defence & security and the aerospace & transport markets. In 2011, the company generated revenues of €13 billion with 67,000 employees in 56 countries. With its 22,500 engineers and researchers, Thales has a unique capability to design, develop and deploy equipment, systems and services that meet the most complex security requirements. Thales has an exceptional international footprint, with operations around the world working with customers as local partners. Thales is a world leading supplier of cutting-edge railway signalling solutions for main line and urban rail which guarantee the safe, reliable and convenient transport of passengers and freight. Thales has widespread international experience in all aspects of control and safety technology, network integration and corresponding

services concerning technical operations and maintenance. The product portfolio includes, among others, the following solutions: • AlTrac for interoperable train control also comprising ETCS solutions (European Train Control System), • LockTrac for train routing, also including the leading electronic interlockings from Thales together with field equipment and • NetTrac for network management, disposition and control. Thales provides turnkey solutions that increase performance and line capacity while reducing operating, maintenance and infrastructure costs. Thales’ goal is to be its customers’ long-term partner to help them address major challenges for continual growth. www.thalesgroup.com

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in operation, they will half the travel time for residents living in the northwest and southwest of the city, travelling to the centre. This way, the arrival of the Metro could even bring new job opportunities to parts of the city which were previously considered too far away and difficult to access. “Furthermore” Bianchi says,” our new passengers will be able to access the many services available in the Metro stations. They may, for example, run errands or shop without deviating from the route home, or enjoy the varied musical and artistic events organised by the Corporación Cultural MetroArte (MetroArt Cultural Corporation). We are talking about a Metro which thinks of the people, which incorporates the best underground trains in the world and the most advanced technology.”

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Metro de Santiago

Metro de Santiago prides itself in maintaining the highest standards

Once complete, Lines 3 and 6 will feature some of the most important and advanced innovations on the whole network, from modern platform doors and tracks that eliminate the risk of electrocution, to trains with more security cameras and more efficient driving. Line 6 is expected to commence operation in 2016, with Line 3 to follow in 2018. Total investment has been calculated as being approximately $2.75 million.

The on-going work taking place across the network reaffirms the fact that one of Metro de Santiago’s core initiatives is to reinforce its commitment to its users. One such action it is taking is the implementation of a service strategy called Pasión por el cliente” (Passion for the customer). “We are already developing a series of measures to keep our passengers informed before and during journeys,” Bianchi enthuses.

“The on-going work taking place across the network reaffirms one of Metro de Santiago’s core initiatives is its commitment to its users” be monthly | 55

“Through the use of social networks like Twitter we have implemented an information system, which, as well as delivering current reports regarding the state of operation, allows us to respond to each and every one of the enquiries we receive from our customers. In the near future we will also implement an information system via text message for cell phones and a special app for smartphones. In addition to this, in April last year the

company created a free phone number (1411), which allows its passengers to make a complaint in the event that they are presented with a situation that involves some kind of risk to health. “We want to continue being the safest public place in Santiago, with 0.37 crimes reported for every million passengers,” Bianchi says. On top of the improvements described above, the Metro is also working to establish is Communications Based Train Control (CBTC)

“The metro is already regarded as an efficient, non-polluting mode of transportation, with very low greenhouse gas emissions”

Metro de Santiago implements initiatives to lower its carbon footprint

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Metro de Santiago

Underground entrance

conduction system. This system will begin operating during 2013 and its introduction will coincide with the arrival of 14 new trains. While the Metro is already regarded as an efficient, non-polluting mode of transportation, with very low greenhouse gas emissions, it remains aware of the responsibility it has to implement new initiatives that will lower its carbon footprint further still. In 2011 the Metro achieved a saving of roughly 63 Gigawatt hours per year, equivalent to the average annual consumption of 35,900 households. During the early months of 2012, Metro reduced its consumption reaching a rate of 2.93 kilowatthours used per month, in comparison with 2.98 in the previous period. “Together with the growth of the Metro

network,” Bianchi continues, “the company promotes non-tariff businesses, the lease of real estate space and the sale of advertising space, aspects which have contributed to the Metro being one of the few self-financed subways in the world. For the local economy meanwhile, the Metro represents not only the generation of jobs, and payment of wages and taxes, but an important support for local companies through their incorporation into our supply chain. These are all things that we hope to continue to contribute towards as we expand the network further in the months and years to come.” For more information about Metro de Santiago visit: www.metrosantiago.cl

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DHL Global Forwarding - Sub Saharan Africa

Always moving forward

CEO of DHL Global Forwarding – Sub Saharan Africa, Roger Olsson, discusses the wealth of opportunities Africa has to offer and how the business is striving to become the first choice solutions provider for its customers

written by: Will Daynes research by: Paul Bradley

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eadquartered in Bonn, Germany, and today employing in excess of 470,000 people in over 220 countries and territories worldwide, Deutsche Post DHL has become a name synonymous with couriering and logistics. The world’s leading mail and logistics group, it generated revenues of €55.5 billion during 2012, representing an increase of 5.1 percent comparing to previous year. This increase mainly reflects the exceptional market position that DHL maintains in the world’s growth regions, such as Asia and Africa When it comes to Global Forwarding, DHL is the world leader in air freight services and one of the biggest providers of ocean freight services. Through the work of its 30,000 employees, DHL Global Forwarding (DGF) helps ensure the transport of all manner of goods by air or sea on a daily basis. “At the beginning of 2012,” states Roger Olsson, CEO of DHL Global Forwarding – Sub Saharan Africa, “DGF merged three previously separate regions, Europe, the Middle East and Africa into a single EMEA region. This consolidation allowed DGF to better coordinate its commercial activities and improve operational efficiencies between countries.” Meanwhile, this event also brought about the establishment of some sub-regional offices, one of which would open in Johannesburg, South Africa. “From this office,” Olsson continues, “we have a regional team committed to improving the group’s activities in the Sub-Saharan Africa region. It also means that for the very first time, DHL is now running its African operations from within the continent itself.”

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DHL Global Forwarding - Sub Saharan Africa

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DHL Global Forwarding - Sub Saharan Africa

DHL support global volunteer day

Sub-Saharan Africa is made up of no fewer success as its global coverage. “We have than 48 different countries, with DHL today dedicated people throughout the business boasting offices and capabilities in 41 of these. who know better than anyone else how The remaining seven are covered through the to expertly deliver the type of services groups’ work with credible local partners. we provide. At the end of the day you can “When it comes to DGF’s operation in have the largest network in the world, but Africa,” Olsson explains, “having the biggest without the right people on hand to make overall coverage of any other logistics it work you will never get very far.” With its GDP growth provider is understandably vital. In addition, we are also outlook estimated to remain able to leverage our global around 5.5 percent over presence to cater for the vast the next three years, Subnumber of businesses that are Saharan Africa is expected working to bring cargo into to remain the region with and out of the continent.” the second highest growth Olsson also shares the rates worldwide, after belief held throughout DHL Asia for the foreseeable Revenue generated that the people that make future. Some of the more by Deutsche Post up its workforce are just tangible opportunities for a DHL in 2012 as vital a component to its multinational logistics player

€55.5 Billion

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like DHL are the recent oil & gas discoveries in Eastern Africa, and the immense natural and mining resources found throughout the region. It is however important not to ignore the more traditional logistics sectors that DHL serves, namely engineering, automotive and the consumer-sector. “The oil and gas industry,” Olsson reveals, “accounts for roughly half of our entire business today in the Sub-Saharan space. It is for this very reason alone that we continue to invest more and more in this area of our operations as the opportunities available to us are simply unbelievable, particularly as major oil and gas undertakings further help put countries like Kenya, Mozambique, Tanzania and Uganda on the map. Following just behind in terms of importance is the mining sector where we also have a special focus, leveraging our global expertise when it comes to the industry to assist in the development of business across Sub-Saharan Africa.” As an organisation, the work of DHL goes beyond simply doing business with its customers. One of the achievements it is most proud of has been the development of a comprehensive strategy to fulfil its Corporate Social Responsibility requirements. In Africa it has helped spearhead the “Go Teach” programme. Sustained through an

existing partnership with SOS Children’s Villages, the programme aims to provide disadvantaged youths with the confidence, knowledge and skills needed to enter the world of employment. Furthermore, DHL supports Global Volunteers Day, an annual event that sees thousands of its employees

“DGF plans to deliver the same kind of door-to-door service in Africa that it currently does elsewhere in the world” 64 | be monthly

DHL Global Forwarding - Sub Saharan Africa

Warehouse office in Gabon

volunteer to carry out environmental and community related activities. As DGF makes plans for the future its focus looks set to revolve around increasing its service offerings and capabilities in such a way that it will be able to deliver the same kind of door-to-door service in Africa that it currently does elsewhere in the world. “Achieving this goal,” Olsson concludes, “will no doubt bring with it challenges of its own. Nevertheless we see it as absolutely fundamental to our business that we are able to deliver ever-improving service levels and product offerings that allow us to service the entire logistics chain here in Africa, from

origin to final destination. What we benefit from is having a clear strategy and vision for the future, one that we hope will result in DGF being the first choice solutions provider for its customers in Sub-Saharan Africa, growing up our market share in the process. This will be accomplished by expanding into sectors with a seamless end-to-end service offering and a broad product portfolio, by developing bestin-class operational capabilities.” For more information about DHL Global Forwarding - Sub Saharan Africa visit: www.dhl.co.za

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Two giants


How, over the course of two decades, a small, family-run business has been able to transform itself into a leading international logistics provider

written by: Will Daynes research by: Paul Bradley

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Berco - an Aramex Company

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Berco - an Aramex Company


ake a look back through history and you will find that the plot of many of the greatest stories ever told revolve around a protagonist who, from humble beginnings, goes on to achieve great things. It is equally true to say that some of the most incredible business stories share the same theme, with a great many today originating from the rapidly developing economic backdrop that is Africa. Founded in 1992, Berco Express began life, like many other companies, as a small, family-run business, focused on delivering courier services between Johannesburg and Cape Town. By fully embracing its own mantra of delivering constant, never-ending improvement, the company grew organically over the subsequent years to the point where it now boasts a total of 16 branches and three warehouses across the country. “In 2004”, explains van der Velde, “we decided to embark on taking the business to a completely new level in terms of offering a much broader range of services including active warehousing, clearing and forwarding, domestic and international courier services.” Steadily expanding through the market, Berco Express would go on to establish its branches in several main centres of commerce as well as key second tier centres such as Rustenburg and Kimberley. It was then in 2011 that it was acquired by the Dubai listed global organisation, Aramex. Founded in 1982, Aramex today employs more than 12,300 people in 353 locations, across 60 countries. A leading global provider of comprehensive logistics and transportation solutions, the range of services offered by

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PRACTICE MAKES PERFECT Marsh’s global industry practices and risk specialties ensure our clients receive the best solutions tailored to their particular needs, helping them manage risk for growth. Industry Practices: Agriculture, Automotive, Aviation & Aerospace, Chemical, Communications, Media & Technology, Construction, Education, Energy, Entertainment, Financial Institutions, Fisheries & Aquaculture, Forestry & Integrated Wood Products, Food & Beverage, Healthcare, Hospitality & Gaming, Infrastructure, Life Sciences, Manufacturing, Marine, Mining, Metals & Minerals, Power & Utilities, Public Enterprises, Government, Private Equity, Rail, Real Estate, Retail & Wholesale. Risk Specialties: Aviation & Aerospace, Casualty, Employee Benefits, Environmental, Financial Risk Products, FINPRO, Marine, Product Recall, Project Risk, Property, Mergers & Acquisitions, Surety, Trade, Credit & Political Risk.

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BERCOCompany EXPRESS Berco - an Aramex

MARSH March is the premier global professional services firm providing advice and solutions in risk, strategy and human capital. Through our market leading brands, colleagues in more than 100 countries help clients identify, plan for and respond to critical issues and risks. Marsh is a world leader in delivering risk and insurance services and solutions to clients. It provides global risk managament, risk consulting, insurance broking, alternative risk financing and insurane programme management services for businesses, public entities, associations, professional services organisations and private clients. Marsh is organised by client, industry, and risk categories to facilitate the global delivery of tailored products and services covering a wide spectrum of risks. The extraordinary power of Marsh Africa lies in its local and global resources. The local knowledge and expertise of Marsh Africa are complemented by the gobal capabilities and significant network of correspondent brokers to provide clients with a seamless service offering to meet their local and worlwide needs. Marsh Africa has adopted a structure which ensures client focus and delivery of the appropriate services to the various client segments in which we operate. Marsh South Africa are proud to be the broker of choice of Resgen. Marsh are also appointed to the parent company in Australia

Resource Generation. The Mining and Metals division of Marsh South Africa consist of a total complement of 23 staff and are the appointed brokers to most of the major mining houses in South Africa. This includes Gold, Platinum and Coal and include a number of Global Programmes involving the local and international insurance markets. Marsh are involved in arranging the insurance for the entire coal mine project from the Marine insurance for importing the equipment, construction of the processing plant and the permanent insurance once the coal mine is operational. www.marsh-africa.com

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RBS Berco Express and RBS have enjoyed a longstanding business relationship spanning more than ten years. Berco’s clients rely on them to deliver their goods on time and accordingly, Berco, relies on RBS to ensure that the appropriate coverage is in place and sound risk management is implemented to avoid interruption to their business processes. This means a meticulous approach to managing their insured items and a quick turnaround time on claims that they may have. Having a strategic insurance business partner like RBS is key to Berco’s on-going success. RBS is one of the largest insurance brokerages in South Africa. They specialise in personal and commercial insurance products including a number of specialist products that they have designed specifically for marine,

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property, financial lines and construction insurance. RBS insures a number of South Africa’s Top 300 companies. Their competitive advantage stems from developing complete, scalable solutions for clients, rather than finding the ‘next best thing’. “It has been our core value since we first opened, says CEO Michael Petersen.” We started this business because we saw a need for custom solutions as every business and individual is different.” RBS’s clients can choose from a large stable of insurance and insurance related products and services, managed by a carefully selected team of 130 people that include a number of industry experts. E. info@rbs.co.za www.rbs.co.za

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Berco - an Aramex Company

An Aramex courier

Aramex includes international and domestic along the way to become what we are now, express delivery, freight forwarding, logistics which is a fully fledged logistics provider, and warehousing, records and information linked to a big global player that itself has management solutions, e-business solutions, the fifth largest worldwide network.” and online shopping services. The expansion of various industry sectors in A founding member, and chair, of the Africa may no longer be breaking news, but it Global Distribution Alliance (GDA), Aramex remains the core driver for growth in the region leads a strong alliance of over 40 express and and is the biggest contributing factor towards logistics providers from around the world, each Berco – an Aramex Company’s on-going success. specialising in their own region and together “In addition to the fact that today you have an ever increasing number of covering the world with the same, unified quality standards companies looking to sell their and technology of Aramex. goods or services in Africa,” “We have certainly come van der Velde states, “you also a very long way from being have a booming mining sector a small family business,” on the continent that is having The year the company an extremely positive impact van der Velde continues, was acquired by Aramex on companies like us.” “transforming ourselves


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vincent@bus-ex.com 74 | be monthly

Where the company also excels is in the e-commerce sector, where Berco – an Aramex Company is recognised as the leading courier company. “We certainly have a strong focus on this part of our business, which continues to gather pace at an extraordinary rate,” van der Velde says. Increasing at a similar rate is the movement within South Africa to outsource warehousing. “We have definitely seen a big rise in demand for this type of service,” van der Velde enthuses, “in fact, we are at a stage today where just as quickly as we get a new warehouse up and running, we have it filled to capacity. The reason for this is very simple and that is that people don’t have a desire to manage their own warehouses. What they do want is to outsource this service and do so to experts who possess

Berco - an Aramex Company

An Aramex delivery vehicle

“The company has always maintained a core belief that in order to prosper one has to have the right people in the right positions� the right software and equipment, who are proficient at maintaining stock controls and who have a proven track record when it comes to high quality pick and pack operations.� While much has changed in the 20-plus years that Berco has been around, it has always maintained a core belief that in order to prosper one has to have the right people in the right positions. This belief is shared in Aramex and the company considers several core factors when

it comes to recruitment, focusing specifically on bringing on board individuals with energy, passion and the desire to stretch their wings. Each year the company makes a concerted effort to recruit a number of individuals fresh from completing honours degrees in logistics. This past year the company brought eight people into the business following a lengthy, near six-month selection process. These eight people, like many before them, were then

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Fork lift driver in the logistics centre

Berco - an Aramex Company given a single mission and that was to take the company’s business model and turn it on its head, by coming up with new ideas, new ways of bringing added value to its customers and ways to improve the company’s own internal operations. “These young graduates,” van der Velde highlights, “come into the business with fresh, innovative ideas and we provide them with the platform and the opportunity to make an impact on how this business works.” Determined to make 2013 as profitable a year as the last several before it, the company is particularly excited about its upcoming launch of a new portal that will allow customers to transact with international e-commerce companies. This solution will allow these people and businesses to shop in places like Dubai, China, the US and Europe, while at the same time allowing companies to bring their goods and services into South Africa in a much more effective way than previously available. June 2013 will also see the company adopt the new name Aramex South Africa. “Something that is very important for us,” van der Velde concludes, “is that in little over two decades we have not only managed to establish a very healthy footprint in South Africa, but now, with Aramex, we have established offices throughout Africa. Our plan now is to continue to build on our previous successes and expand further across Southern Africa in the very near future.” For more information about Berco – an Aramex Company visit: www.bercoexpress.co.za

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Imperial Group

In imperious form Mohammed Akoojee, executive responsible for investor relations and corporate strategy, talks about how the diversified nature of Imperial Group’s business activities is helping it to prosper despite some challenging conditions

written by: Will Daynes research by: Candice Nice

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The Kia models compete well in a buoyant South African market

Imperial Group


ver all,” explains Mohammed Akoojee, executive responsible for investor relations and corporate strategy, “our performance over the last 12-to-18 months has been good, with the majority of our core business segments showing strong growth. We just released a report that shows that our earnings during the last six months were up 14 percent, even in the face of some challenging market conditions that we were exposed to during that time period.” Imperial is a diversified industrial services and retail group with activities that span the logistics sector, car rentals, tourism, financial services, vehicle distribution and retail, automotive parts and industrial products distribution. Listed on the Johannesburg Securities Exchange, Imperial employs more than 47,000 people, each of whom it credits equally for the continued success of a group that began life as a motor dealership in downtown Johannesburg in 1948. “Our motor business in South Africa continues to perform well, despite being subject to supply issues caused by labour disruptions in Korea from where we import many of our products,” Akoojee continues. “Meanwhile, our after sales parts and service business and used car sales have remained buoyant and contributed strongly to the growth achieved. The strength of our integrated business model in the motor business is really starting to come through.” The last four years have seen the South African vehicle market ride a wave of success on the back of factors such as the

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CUMMINS ISX ENGINES POWER IMPERIAL LOGISTICS’ FLEETS FORWARD Imperial Logistics has more than 3 800 vehicles in its fleet powered by ISX engines that are manufactured and supplied by Cummins - a global leader in the manufacture, sales and servicing of diesel engines and related technology. All 30 vehicles in one of Imperial Logistics’ refrigerated fleets are able to successfully complete their service delivery projects throughout South Africa from Tzaneen, Limpopo, despite accumulating more than 1-million km of mileage, as a result of the reliability of the American Drive Line range of Cummins ISX engines. Cummins SA Heavy Duty Account Manager Leon Nel notes that the basic Cummins 15l ISX engine is highly diverse. “It has a wide range of horse power and torque and, without a waste gate turbo, is capable of running between 400

hp and 450 hp, with torque of up to 2237 NM, between 1100 and 1500 rpm. By changing to a waste gate turbo, it can run between 475 hp and 565 hp with between 2237 and 2510 NM. The main use of this low rev, high torque engine is in heavy duty 6x4 truck tractors.” According to Nel, the American Drive Line range is perfectly suited to African conditions, as it allows for exceptional mileage and availability of parts and service across the border. “This is evident in the fact that some vehicles in a particular refrigerated fleet are still running smoothly with well over 1.2-million km on the clock. The American Drive Line with Cummins ISX is a great choice as it is extremely durable and the service intervals are 30 000 km.” www.cummins.com/southafrica

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47,000 People employed by Imperial Group worldwide

Imperial’s logistics division

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penetration in the South African economy is in line with emerging market peers and has great potential in the country as it is proven that as emerging countries develop vehicle penetration increases. With interest rates in South Africa at a 40 year low and the vast majority of banks willing to provide credit towards vehicle purchases, Imperial has witnessed considerably strong buying patterns at an entry level where it has a number of products including Hyundai and Kia models that compete well. This has allowed the group to gain a decent share of the market over the last three years. From a logistics perspective however, South Africa continues to prove to be a challenging market to operate in, especially with many of Imperial’s clients being exposed to the pressures that the country’s manufacturing and industrial sectors are experiencing at present. Fortunately for Imperial, it has made numerous investments into other parts of the continent in recent years that are counteracting this. Indeed, outside of South Africa, Imperial’s logistics business has performed exceptionally well over the last 6 months, with operating profit increasing by 22 percent. “If you look at our activities in Africa,” Akoojee states, “our strategy has been to focus

Imperial Group

Fleet management

on the demand for consumer goods on the continent. We believe that this sector of the African economy has got excellent long term growth prospects. We are a major distributor of fast moving consumable goods in markets such as Namibia, Botswana, Zambia and Mozambique, and with consumer growth in those parts in Africa increasing we will benefit from accordingly.” Expansion across Africa is a core element

of Imperial’s future strategy, the success of which it sees as crucial to its long-term development, both from a distribution and logistics perspective. “As part of our longterm vision,” Akoojee highlights, “we recently acquired a South African business called RTT Health Sciences, which is involved in the distribution and logistics of pharmaceutical products on behalf of manufacturers. While being based in South Africa, half of the

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company’s profits actually originate from markets such as Kenya, Nigeria, Ghana and Malawi. As a result of this acquisition we now have a presence and a distribution channel in these important markets that we did not have previously.” From a geographical point of view, Imperial also remains keen on examining the potential of expanding its activities in Europe, where it already boasts a presence in Germany, where it is a major operator of bulk and container ports along the country’s inland waterways. “In Germany,” Akoojee says, “we occupy critical industrial choke points and provide value added services where we are integrated into the supply chain of our customers. We are seeing a clear trend where our customers are also looking to grow into surrounding markets such as Eastern Europe, which is something we also hope to be doing as we follow our customers into new markets.” Imperial Group prides itself on the fact that it is a leading player in virtually all of its business areas, however what it also benefits greatly from is the fact that within several of these areas there is still much more growth to be had. If you take the automotive industry in South Africa as an example, sales volumes are relatively low when compared to those

seen in the developed world. As a matter of fact they are much more in line with those of other emerging nations, suggesting that as the economy grows so too will the sector. It is Akoojee’s view that internally Imperial also benefits from being a de-centralised business and one that possesses a strong entrepreneurial spirit that runs throughout the

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Imperial Group

The logistics division’s aim is to continue expanding across Africa and further into Europe

group. “We strive to give our people the freedom to find new opportunities for growth. We also endeavour to provide opportunities for people to be entrepreneurial in their work and we find that is a big factor when it comes to retaining the best men and women.” Going forward it is clear that Imperial’s focus remains on improving its returns on capital and putting more capital into logistics, which is a sector with a good long term growth outlook, especially in the markets it serves. “Certainly we would like logistics over time to become a much larger contributor to the group,” Akoojee concludes, “however this is just one of a number of new revenue

streams that are starting to make a big positive difference to our underlying profit. Meanwhile, from a geographic perspective we intend to continue a gradual expansion across Africa and hopefully further into Europe. So while it is too early to say that we have ambitions to be a global company, it can certainly be said that we intend to become a much more international business entity in the not-too-distant future.” For more information about Imperial Group visit: www.imperial.co.za

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Marlin Mine:

Sustainable o

Through its Marlin Guatemala, a subsi to ensure the count

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Goldcorp - Marlin Mine


n Mine operations, Montana Exploradora de idiary of the Canadian firm Goldcorp, is working try will soon be able to unlock its potential

written by: Will Daynes research by: Candice Nice

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Panoramic view of the processing plant

Goldcorp - Marlin Mine


ossessing a land mass of almost 109,000 square kilometres, the Central America country of Guatemala shares its borders with Mexico, Belize, Honduras and El Salvador, as well as the Pacific coastline to the Southwest and a part of the Caribbean coastline to the east. Boasting a diverse history, a rich and distinctive culture, and areas of immense natural beauty, Guatemala has, in more recent times, become just as well known for its enormous gold potential. Indeed in 2007 one mine alone processed some 1.7 million tonnes of mineral with an average gold content of 4.55 grams per tonne and 84.31 grams of silver per tonne, further confirming the country as a mining destination of particular interest. Possessing a stable, macroeconomic backdrop, Guatemala is fast earning a reputation as having perhaps the greatest future mining potential of any Central American country. Other factors that are helping to attract the interest of international investors include the free movement of goods and trade, and a local labour force with a reputation for being hard working, fast learners. Spanning the boundaries of the San

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Goldcorp -MARLIN Marlin MINE Mine Miguel Marlin Ixtahuacán Mine feature and text tempor incididunt ut labore et dolore magna aliqua. Ut Sipacapa, to go here....Lorem located inipsum San enim ad minim veniam, quis Marcos, dolor sit the amet,Marlin consectetur Mine nostrud exercitation ullamco was adipisicing originally elit,discovered sed do in 1998 bytempor two Guatemalan laboris nisi ut aliquip ex eiusmod incididunt geologists. Acquired in July ea commodo consequat. ut labore et dolore magna 2002 byUt Canadian Company Duis aute irure dolor in aliqua. enim ad minim Glamis Gold,quis it was they who, reprehenderit in voluptate veniam, nostrud exercitation laboris in conductingullamco an exploration velit esse cillum dolore study, nisi ut aliquip determined ex ea commodo that eu fugiat nulla pariatur. consequat. Duisa aute irure the mine held projected Excepteur sint occaecat 1.4 million ounces of gold.in This is a caption this is a caption cupidatat non proident, sunt dolor in reprehenderit This projection Smelting plant in culpa qui officia deserunt voluptate velit essespurred cillum the Ministry of Energy and dolore eu fugiat nulla pariatur. Excepteur mollit anim id est laborum. Lorem ipsum dolor amet, consectetur sed do construction phase inadipisicing the third elit, quarter of Mines of Guatemala into issuing a licence sint occaecat cupidatat non proident, sunt sit forculpa in the development qui officia deserunt and operation mollit anim of the id eiusmod tempor ut laboregold et dolore 2005, the mine incididunt began producing and Marlin est laborum. project, Lorem on ipsum 27 November dolor sit 2003. amet, magna aliqua.the Ut enim veniam, quis silver before turn ad of minim the year. Following the consectetur adipisicing successful elit, completion sed do eiusmod of the nostrud “One exercitation of the first things ullamcowe laboris recognised nisi ut

Brenntag brings to the Mining Industry a broad line of chemical products as well as alliances with both local and internationally known suppliers. With over 100 years of business experience, we are well positioned to provide customers with a diverse array of quality products and services at competitive prices. In addition, we have an unparalleled ability

to support our multinational customers with Brenntag’s globally-based organization. With distribution and sales locations throughout the United States, Canada, Europe, South and Central America, Africa, China, Australia and New Zealand, we are capable of meeting the needs of customers… from commodity to niche market products in a broad range of packaging containers and sizes. Our product portfolio includes an extensive line of chemicals for use in different applications throughout the mining operations, including flotation, dust control, solvent extraction and water treatment. www.brenntag.com

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Atlas Copco specialises in providing equipment and solutions to companies involved in mining, rock excavation and construction. We develop, manufacture and sell services related to underground and surface rigs, underground haulage and transport, crushing, anchors, jet grouting, drill steel, exploration and a full range of parts and consumables. Operating within the marketplace for 140 years, Atlas Copco is continuously looking to innovate in order to achieve sustainable productivity in the fields of surface and underground mining, infrastructure projects, deep drilling, geotechnical applications and civil works. El área de negocios Mining and Rock Excavation Technique de Atlas Copco provee equipos y soluciones para construcción y minería. Desarrollamos, fabricamos, comercializamos y ofrecemos servicio técnico para nuestros equipos de perforación subterránea y de superficie, acarreo y transporte, trituración, anclajes, inyección de cemento, aceros de barrenación, exploración así como una gama completa de partes y consumibles. Con 140 años en el mercado, en Atlas Copco innovamos continuamente para lograr una productividad sustentable en la minería subterránea y de superficie, en proyectos de infraestructura, perforación profunda, aplicaciones de geotecnia y obras civiles.

For the attention of Central American and Caribbean countries. Atlas Copco Central America S.A. Panamerica Corporate Center Edificio 9080, Local #3, Boulevar de las Americas, Panamá Pacífico Ciudad de Panamá, Panamá Tel:+507 8306155 / 56 / 57 Fax:+507 8306160 www.atlascopco.com

Goldcorp - Marlin Mine

Local workers

“One of the first things we recognised about this mine and what makes it so unique, is just how well the ore itself responds to metallurgical treatments” about this mine and what makes it so unique,” explains Marlin Mine General Manager, Christian Roldan, “is just how well the ore itself responds to metallurgical treatments. When it comes to gold we have extremely high recovery rates of about 98 percent recovery and more than 90 percent for silver. We also benefit from the fact that Marlin is located in a very

strong mining district where, to this day, we continue to uncover new resources around the main Marlin vein.” The production process of the Marlin Mine is divided into four phases, these being exploration, construction, operation and production, and technical closure and reclamation. “At present,” Roldan continues, “there are three main underground areas

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Procesadora de Minerales, S.A. –PROMISA- is a Guatemalan based company founded in 1971. We are the main suppliers of nonmetallic minerals to different industries, but also share our experience, technology, services and knowledge with the mining business. Our main objective focuses on supporting our clients, which include Marlin Mine-Montana Exploradora/GoldCorp Guatemala, with high standard products, on site engineering services and training and tools aimed especially for mining processes, thus minimizing ecological and local community liabilities, and ensuring business sustainability. We represent MI-HDD Mining & Waterwell, a MI-SWACO Division, as well as Diamantina Christensen Mining Products, known worldwide for its high efficiency drilling fluids, bits and tools, additives, products and equipment that increase the productivity of operations and reduce environmental footprint and fluid consumption.

Our products:

• Bentonite • Drilling Fluids formulated for both small and large borehole stability and core quality • Polymers • Fluid Loss Control Agents • Shale Stabilizers • Viscosifiers • Filtration Control Additives • Lubricants • Drill Bits and Tools

www.promisa.biz | info@promisa.biz (502) 23366696 | fax (502) 23366705 Guatemala City, Guatemala

Goldcorp - Marlin Mine that we are mining. In order to extract the full potential As miners go deeper underground to provide the materials of what the mine has to offer on which the world depends, they need safe, reliable we have had to overcome equipment designed to handle demanding conditions. From a number of challenges. the first cut to the last inch of the seam, we’re committed to T hese have included meeting the needs of customer in every mining application creating ventilation systems and environment. Our broad product line includes drills, loaders and trucks for hard rock applications, and for both on-going and precision-engineered products. Since the beginning of f ut u r e u n de r g r o u n d Montana’s operation (Gold Corp Mine in Guatemala), activities and establishing Gentrac has provided equipment, parts and services as strong water controls support in their mining operation.  Gentrac is grateful to around the mine site.” Marlin Mine for the confidence given. Strong environmental www.gentrac.com.gt controls have been a feature of the mine site since it first opened. Today these controls include the use of emergency response teams that are on call at all times of day to respond to all manner of events. These include responding to signs of increased sodium or sulphite levels in the surrounding water network or dealing with any issues that may arise during the transportation of hazardous materials. Such is the skill of the mine’s emergency teams that they were even called in to assist in the rescue and recovery efforts that followed the earthquake that struck the San Marcos area in November 2012. In 2012, Montana Exploradora de


1.4 million Ounces of gold Marlin Mine is estimated to hold Water treatment plant

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Goldcorp - Marlin Mine

Entrance to the underground mine

Guatemala commissioned the building of a tail filtering plant near to the mine. The concept for the plant came about as a solution to how the operators could reclaim the open pit section of Marlin Mine that is no long in operation. The plant’s core function today is to dry the tailings from the mine in order for them to be used to fill pipes and cover the decommissioned pit wall in order to avoid further erosion or drainage.

The operators of Marlin Mine are very much pioneers within the country. “We have known since day one,” Roldan says, “that by being situated on indigenous land it has been fundamental to build strong relationships with local communities. By sitting down and listening to their concerns and needs we quickly found that job creation was a big issue for them. Today we are proud to say that approximately

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T H E E X T R AC T I O N O F G O L D A N D S I LV E R With Guatemala having many valuable natural resources, Productos del Aire can highlight the extraction of gold and silver, among others.

M.Sc. Juan Ram贸n Pallais | Special Applications Advisory | Guatemala Air Products, Inc. jrpallais@productosdelaire.com | Phone 2421-0400 Ext. 227

Overland Conveyor, Marlin Mine, GoldCorp, Guatemala

IGC covers virtually all types of services in various areas of engineering and construction. Our main focus began in the electrical-mechanical engineering and construction field. In 1992 IGC implemented a civil work division, due to the growth in the Central America industry. In 1998 the Operation & Maintenance division for thermal power plants was created. IGC basically ensures the coordination of local engineering, constructors and administration. PBX (502) 66 44 18 00 grupoigc@grupoigc.com www.grupoigc.com DELIVERING INTELLIGENT SOLUTIONS TO THE CENTRO AMERICAN INDUSTRY SINCE 1970

Goldcorp - Marlin Mine

98% Gold recovery rate from the mine

Productos Del Aire

We use a multi-stage process: first extract large amounts of land where the mineral is present then grind until a fine grain, where chemically separating the mineral soil in a process called Leaching. (Dissolving a metal in a liquid, such as water to separate the soil, so that the mineral suspension while floating on the ground or precipitated to the bottom of the tank) This is due to a chemical equation: Gold: 4Au + 8CN-+ O2 + 2H2Og4Au (CN) 2 - + 4OHSilver:4Ag + 8CN-+ O2 + 2H2Og4Ag (CN) 2 - + 4OHThey can be summarized as follows: Mineral + Cyanide + Oxygen + water - Mineral water soluble! Finally this liquid with the precious metal is separated, and by another chemical reaction is precipitated mineral and melts the ingot ready for marketing. E. jrpallais@productosdelaire.com

90 percent of our workforce is Guatemalan, with 60 percent of these being people from the local area.� Being a 24 hours a day, 365 days a year type operation, logistics is a hugely vital ingredient in the mines success. Once again the local community has become a major strategic partner in this area of the business. “We take great pride in the fact that over 68 percent of our suppliers

are local providers,� enthuses materials manager, Pedro Richmagui. In getting to this position, the mine operators have worked tirelessly to

Exterior view of the water treatment plant

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RELIABLE SOLUTIONS FOR THE MINING WORLD Prodac´s Mining Unit specialises in providing solutions to rock mass stabilization in tunnels. For this purpose, we have quality products and professional staff in geo-mechanics, explosives and operations, that can provide technical advice and on site training. Telephone: 51 (1) 613 6666 mineria@prodac.com.pe www.prodac.com.pe

Goldcorp - Marlin Mine develop local businesses and to improve their Tritech has been helping industrial customers for more understanding of mining than 40 years. With its origins in Guatemala distributing and how it will become the brand Molub-Alloy (now within Castrol Industrial), the even more important to company has grown into a multinational company serving Guatemala in the years to the industrial sector from Mexico to Colombia. Focused only come. “A good example on lubrication, we have brought also automated lubricating systems, filtration and most important knowledge into our of our work in this field,” offer so we can give documented savings to our customers. Richmagui continues, “is Our relationship with Marlin Mine started in 2005 with a how we have helped develop detailed lubrication plan, training, implementation and close local transport companies, follow up in site. To this day we keep these tasks to ensure bringing them up to a level the best results possible. of operational excellence www.tritechoverseas.com that means that when the day comes that the mine is no longer in operation the community is left with a strong enterprise that can then pitch itself to other organisations.” While local communities have already experienced the benefits that mining can bring to the country, the perception of mining amongst the wider population of Guatemala remains somewhat divided. It is for this reason that the operators of Marlin Mine continue to make a concerted effort to bring people, groups and agencies together in order to highlight how a prosperous mining industry can benefit Guatemala in the long term. Tilapia fish project “While there is a large number of people


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Quisertec, is a Central American Company with its central offices in Guatemala that offers a wide variety of lines of raw materials directed to the productive sectors of the region for the following sectors: • Food industry • Cosmetics • Pharmaceutical • Bottling • Mining Industry • General Industry In each of the countries in our market area, we have offices, warehouses and highly qualified staff to meet the needs of our customers, permanently keeping a stock of different products. Quisertec would be happy to meet any requirement, as our sales policy is what sets us apart from our competition. Visit our web page www.quisertec.com Tel (502) 23801300 | email ventas@quisertec.com

“Your best partner, in any business”



Steel Industrial Services is a company dedicated to designing, manufacturing and rebuilding of parts for mining equipment and the industry in general. Services: • Installation of equipment • Manufacturing equipment of various structures • Repair and maintenance of various equipment • Welding • Maintaining different types of pumps and motors • Tool Supply • Contractor technicians in the fields of mechanics, welding and electricity • Electrical services Telephone: 00502 7840-3497 E-mail: servicios.industriales_steel@yahoo.com

Goldcorp - Marlin Mine who support what we are Quisertec doing and understand the Quisertec, SA belongs to a group of 15 companies based vital role that mining has in Central America focused on different activities in to play in enhancing the commerce, industry, services and agriculture. Quisertec, economy of a country by SA was founded in Guatemala in 1990 with the mission means of greater investment to provide complete satisfaction to our customers in and revenue f lows, one our different areas of action. Achieving profitability for our customers, employees, suppliers and shareholders. of our core missions is to Through personalized service and quality products and help instil this belief in the services. Represented in the area major manufacturing rest of the population of companies from 5 continents. Guatemala,” states national www.quisertec.com executive director, Mario Marroquin. “This was never going to be a quick process, however Marlin Mine’s operators, in particular the trends do suggest that support for mining question of what kind of legacy the mine will leave behind once it has closed. This is slowly growing.” While support for mining continues is a question that has been posed to not to build, other challenges lay ahead for only Montana Exploradora de Guatemala,

Area of environmental recovery

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“Excellence in quality and service�

We have more than 30 years of experience in the design and manufacture of filter elements

Filter elements: Band filters, Rotary Vacuum Filters, Filter Presses, Dust Collectors

Forjas Santa Barbara, S.A. Barrio Oguena s/n, Apartado 49, Amorebieta - Spain Tel: +34 946 730 737 Email: forjas@fsantabarbara.com www.fsantabarbara.com



Materials: Polypropylene, Polyester, Nylon, Aramid, Polyimide, PPS, Fibreglass Our products are manufactured in compliance with the requirements of each process. www.mfisa.com.mx

Goldcorp - Marlin Mine MULTIGROUP

MultiGroup is an industrial-commercial corporation that has more than 26 years of experience with in North America, Central America and the Caribbean. We manufacture and commercialize a wide range of steel products. Our main strength is having three, first-class production facilities that allow us to manufacture according to the needs of our customers and in compliance with international standards. We supply welded mesh for the Marlin Mine, which is used for structural reinforcement of the walls of their tunnels. MultiGroup, has its own hot dip galvanized plant, which can offer all products on galvanized finish, in order to serve the industrial segment and specialized factories. The product portfolio includes many steel products such as steel sheets, steel plates, foundation bars, beams, steel tubing, pipes, structural tubing, conduit pipes, roofing sheets, steel rods, welded mesh and drywall accessories. www.multigroup.com.gt

Healthcare improvements

but also Guatemala’s local politicians and its national government. “In planning for the future of the area around the mine,” explains corporate social r e s p on s i bi l it y director, Gustavo Cabrera, “we are looking at a host of factors, from ensuring the long term wellbeing of the local communities to making sure that they have the tools needed to bring economic activity to the area after we have gone. On-going efforts involve closing the gaps that exist in education, healthcare and employment in order to boost the economy.” Montana Exploradora de Guatemala’s track record in recent years for generating

68% Of suppliers are local providers Education in the local communities

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Underground safety that goes beyond bolts, plates and resin.

In addition to being the leading manufacturer of resin cartridges for more than 40 years, Minova is a global leader in chemical and steel based consumables, associated equipment and services for rock bolting, ground consolidation, ventilation and water control for the underground mining industry. These are just a few of the many products in the Minova family of innovative safety solutions: Airtite速 fiber-reinforced pre-mixed coatings for use on stoppings, overcasts and other ventilation controls. Carbothix instantly thickening, fast curing injectable two-component silicate resin for sealing bolts. Tekcrete Fast M low dusting, ultra-rapid hardening, high-strength gunite.

Ground Support Systems

Minova Mining Services, S.A. | Lo Echevers 300 | Quilicura, Santiago | Chile +56 9 9918 1878 | www.minovainternational.com


Click here to visit our dedicated homepage for the mining community www.bus-ex.com/mining BEST PRACTICE IN MINING

Goldcorp - Marlin Mine local jobs cannot be MINOVA Ground Support Systems disputed, however it is Part of Orica Limited, Minova is a leading global provider aware that the task at hand of ground support and ventilation products used in now involves building up underground mining. the capabilities of these Minova manufactures mechanical, structural and chemical same people in preparation based solutions for underground mining, infrastructure, for when the mine does tunneling and civil engineering applications. Since 1970, Minova has offered a wide range of products close and the possibility and services for rock bolting, ground consolidation, that alternative employment fiberglass reinforcement, ventilation and water control. may be required. Orica’s operations are in 50 countries, on six continents, “One of our meeting customers’ productivity, efficiency, safety and responsibilities, as we see environmental challenges globally. it, is to provide our local www.minovainternational.com employees and communities with the skills and expertise that they will need to take on other roles in the future, both inside and out of the mining sector,” Cabrera highlights. “We know, for instance, that the land around the mine has great agricultural potential. Therefore, what we have been doing is working to establish relationships with big businesses such as Wal-Mart in Guatemala and in Mexico in the hope of creating a scenario in which local Guatemalan agricultural companies can one day earn long-term supplier contracts.” The immediate future of Marlin Mine revolves around what Roldan calls an Nursery environment extensive aspiration programme. “We

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Reforestation panorama

Goldcorp - Marlin Mine

90% Amount of the workforce which is Guatemalan

presently have a number of aggressive exploration programmes under way in many areas of the district surrounding the mine and we have been greatly encouraged by the results we have seen. This gives us great hope for extending the Marlin Mine network further into these parts of the region.” In the meantime the operators also remain committed to setting a strong example of what responsible modern mining can bring to the country in the decades ahead, “On average,” Marroquin concludes, “mining in countries such as Chile and Peru accounts for as much as 12 percent of their annual GDP, while here in Guatemala that figure is more like two percent. If we were able to bring this up to just six percent, I believe the results of that would be more than enough to convince a great deal more people to begin accepting the industry and help them realise just how many positive benefits a strong, responsible mining sector could bring to the country.” For more information about Goldcorp - Marlin Mine visit: www.goldcorpguatemala.com

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Reaping the rewards

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Nkomati Mining

Mining manager Trevor Visagie explains how the rapid development of the Nkomati mine continues to reward not only its employees, but the local community as well

written by: Will Daynes research by: Jon Bradley

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The plant complex

Nkomati Mining


ocated in eastern South Africa and sharing borders with Swaziland and Mozambique, the province of Mpumalanga constitutes approximately 6.5 percent of the country’s total land mass. A popular tourist destination, with visitors being particularly drawn to Kruger National Park, Mpumalanga is also home to a number of extensive mining operations. It is about 40 kilometres to the south east of the small town of Machadodorp, also known by its official name of eNtokozweni, that one will find the Nkomati Nickel Mine. One of three mines that comprise the African Rainbow Minerals (ARM) Platinum division, Nkomati is a small to medium-size base-metal operation, exploiting a complex, high-grade nickel, copper, cobalt and platinum-group metal deposit. The mine itself comprises both an open pit and an underground operation. Accessing the deposit by means of two vertical shafts, this highly-mechanised operation exploits two large low grade Ni-sulphide ore bodies by means of trackless equipment. Expected to eventually reach 2.5 kilometres in length, 800 metres in width and with a depth of 240 metres, the open pit will one day be one of the largest of its kind in South Africa. A relatively young development, Nkomati mine was established in 1997 and operates as a joint venture between ARM and Norilsk Nickel. At present the mine provides work for 833 employees and 2404 contractors. One of these employees is mining manager, Trevor Visagie, who joined Nkomati in July 2010, bringing with him an extensive background in mine engineering.

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Power Plant Electrical Technologies (PPE Technologies) is an integrated electrical

engineering organisation situated in Nelspruit, Mbombela South Africa.

Our services cover a range of industries including Mining, Pulp and Paper, Timber, Sugar, Metals industries, Municipal and Utility infrastructure, extending throughout South Africa, Southern Africa and selected Western and Central African Countries. We provide high voltage, medium voltage and low voltage electrical equipment & infrastructure, control and protection systems and solutions. Our specialist services provide commissioned solutions and maintenance support services on electrical reticulation networks, generator plants and plant control systems. Our Products include new HV and MV switchgear and protection, upgrades and retrofits to existing HV and MV switchgear and protection, Bus Bar Manipulations, LV Switchboards and Motor Control Centres and motor starters, PLC Panel, Power Factor

Correction Solutions, Relay Panels, Synchronization Panels and Variable Frequency Drives. We provide load measurement, load profiling, load flow studies, fault level studies, electrical network studies, power quality studies and modelling and electrical protection system design. We also provide lightning protection solutions, earthing system solutions and assessments of existing installations. Our years of engineering support to manufacturing plant enables us to rapidly identify and solve post commissioning problems, which adversely affect operational plants. We therefore pride our-selves as a multifaceted electrical engineering company working beyond the normal electrical project installation, with insight into what really works and what really causes problems for electrical networks, PLC and DCS control systems and associated electrical infrastructure.


Nkomati NKOMATI Mining MINE Nkomati Mine feature text to go here..... Lorem “In the ipsum 15 dolor yearssitsince amet, consectetur adipisicing elit, sedVisagie do eiusmod tempor it was opened,” incididunt labore et dolore explains, ut “the mine has magna aliqua. Ut enim ad minim veniam, quis nostrud expanded considerably exercitation ullamco laboris with the development of nisi ut aliquip ex ea commodo its open pit mineconsequat. and of itsDuis aute irure various dolor in plants. reprehenderit The recent in voluptate velit commissioning esse cillum dolore of the eu mine’s fugiat nulla pariatur. production Excepteur sint plants occaecat hascupidatat non helped proident, take sunt nickel in culpa concentrate qui officia production deserunt volumes mollit anim up to id est in excess laborum. of 200 Lorem thousand ipsum tonnes dolor sitper amet, year.” consectetur adipisicing elit, sedThe do eiusmod incididunt ut laborea mine hastempor recently come through

et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod massive tempor expansion incididunt project ut labore that stemmed et dolore from the magna commissioning aliqua. Ut enim of two admajor minim plants, veniam, the quis ofnostrud exercitation first which began in 2009,ullamco followedlaboris by the nisi ut aliquip ea commodo consequat. second in 2010.ex Currently in progress is the

PPE TECHNOLOGIES The PPE Technologies team has a long term view on its customer relationships. The majority of our customers are introduced to us through “word of mouth” references when electrical equipment reliability challenges arise. We use these opportunities to engineer practical solutions that work! In each case these introductions lead to the development of a continued business relationship, built on our trusted reliable service. In the case of ARM, PPE services the Nkomati, Modikwa and Two Rivers Mines. At Nkomati, PPE has actively integrated its services to a large degree and has worked hard with mine engineers to overcome a number of reliability challenges. PPE has been trusted to implement several solutions which have seen the mine’s reliability and operational uptime improve markedly. These solutions include the maintenance and testing of medium voltage systems

allowing the identification and rectification of numerous problems. This also includes the review of the protection schemes and implementation of improvements, achieving direct results. Also of note is the implementation of plant equipment earthing solutions which were seen to reduce control equipment failures and maintenance interventions on the overhead line equipment and auto-reclosers, again with immediate noticeable improvements. As PPE Technologies offers project solutions based on years of experience in an operational environment, we believe that our engineering insight and expertise, with our simple and practical approach, really does work to the customer’s long term benefit. We look forward to growing our service relationship with Nkomati and African Rainbow Minerals into future projects throughout the group. www.ppetech.co.za

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YOUR BEE POWER TRANSMISSION SUPPLIER www.vitalpt.co.za Vital Power Transmission specialises in the power transmission industry and in maintenance free power transmission products and we are proud to have achieved the following agencies and provide and supply the following products and services: AGENCIES • MagnaDrive • Autogard • Pembril • Maina • Sime – Stromag • Tru-line • Vulkan Drive Tech • Cable Reel Engineering • Drumotech – motorized pulleys Specialized Products: Suppliers, Repairs and Services Vital Power Transmission specializes in maintenance-free power transmission products and they are proud to supply the following products.

PRODUCTS • Permanent magnet Couplings • Drum & disc Brakes • Speedswitches • High and Low Speed Backstops • Rigid Flange Couplings and Locking Elements • Various Transmission Couplings • Samiflex Elastomeric • Din Std Gear Couplings • Agma std Grid & Gear Couplings • Fluid Couplings • Torque Limiters and Clutches • Cardan Shafts • Cable Reeling Systems and Magnetic

REPAIRS Vital Power Transmission specializes in repairs of: • Gearboxes • Fluid Couplings • Holdbacks • Brakes and Thrusters • Complete Drive Packs SERVICES Vital Power Transmission specializes in the service of: • Laser Alignment (shaft to shaft) • On-site Installations and Repairs • Plant Drive Surveys

VITAL POWER TRANSMISSION Lets Trade 1289 CC t/a Vital Power Transmission was established in 2001. The corporation’s leadership and staff have many collective years of experience in the field of power transmission, specialising in drive solutions and improvements, maintenance-free power transmission products, client acquisitions,

and product consultancy in the industries of mining, power generation, fuel and steel. Vital Power Transmission feels there is a shortage in the power transmission field pertaining to support, maintenance and environmental impact issues and we at Vital Power Transmission are striving to fill that shortage and provide the ultimate service and supply to its customers. The company is operated and managed adhering to strict guidelines and standards compliant with system implementation. E.matthew@vitalpt.co.za www.vitalpt.co.za


Nkomati Mining

Excation work on the open pit mine

sinking of a ventilation shaft that will enable is of vital importance to Nkomati Mining. the operator to carry out future underground “What we strive to do,” Visagie enthuses, “is expansion projects. provide direct benefits to local communities, “Significant capital injections are continuing predominantly in the form of employment to be made across the site with the purpose and by providing skills and opportunities that of not only sustaining the operation, but can lead to the establishing of local businesses expanding it as required,” Visagie continues. and enterprises. These businesses then find “Essentially the mine has evolved beyond themselves benefitting from the preferential treatment we strive to give what could be described as those that exist within a its growth phase and now 50 kilometre radius of the finds itself entering its mine when it comes to equally as important sustainability phase.” acquiring services.” Being situated in such a As Visagie goes on to Employees and remote part of the world, highlight, what the mine contractors employed the contributions made by takes just as seriously to work at the mine and to local communities as its commitment to


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WPH is a Material Handling, Crushing and Screening company based in Mpumalanga South Africa Tel (+27 13) 764 2623\4 /+27 825682252 /+27 824984821 Email: office@wimsplanthire.co.za

CYCLONE PROJECTS & CONSULTING cc CYCLONE ENGINEERING PROJECTS (Pty) Ltd P O BOX 22000, HELDERKRUIN 1733 REPUBLIC OF SOUTH AFRICA TEL: +27 (11) 662 2916 FAX: +27 (86) 632 9646 EMAIL: info@cyclones.zo.za WEB: www.cyclones.co.za Both Cyclone Projects & Consulting and Cyclone Engineering Projects thrive to deliver the most professional service to our client base in the consulting and construction/ management of Tailings Storage Facilities (TSFs). This is achieved by an open policy where honesty and trust are the keywords between us and the Client. A professional and supportive management and labour force contributing to our goals, mission and vision.

Nkomati Mining social responsibility is its Wims Plant Hire consideration for the natural Situated in Mpumalanga, South Africa, WPH has been environment. “We operate servicing the mining industry for the past 10 years, in a very beautiful, pristine specialising in material handling, screening and crushing. environment, highlighted During this time we have built up a good relationship with by several natural water various mines. systems that run next to office@wimsplanthire.co.za the mine complex. This water is actually used by those communities living downstream of Nkomati. We maintain extremely stringent controls on any aspect of the operation that could affect the community. This relates to things like blast vibrations and dust creation in order to comply with the strictest of international standards.” The entire environmental ethos of the business appears to revolve around the idea of capturing and utilising the resources provided by what is a fairly undulating area, while striving to avoid causing any long-term detrimental effects. An example of this philosophy can be seen in action with the on-going construction of a storage dam. The aim of this endeavour is to provide the site with the means to accumulate and store water during the rainy seasons for use in drier times. This will minimise the abstraction of water from the surrounding rivers and will allow all dirty water on the Underground at the mine

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Nkomati Mining mine to be re-used rather than discharged. With Nkomati undergoing rapid expansion over the last couple of years, the main challenge it continues to face is avoiding having an excess turnover in terms of staff. The retention of top talent is key to the success of the business and as such Nkomati Mining offers its employees competitive salaries and attractive retention incentive bonuses. Further to the financial benefits, the fact that the company is only now starting to realise the vast potential of Nkomati is something that is proving increasingly exciting for each and every one of its employees. The results of all the hard work that has gone into making Nkomati a success are truly starting to show, with both plants breaking their individual milling records in October 2012, producing record nickel units. “The team here,” Visagie says, “are now beginning to taste the success of their own work and, as the old saying goes, success breeds success and that is what we see happening. This reemphasises the fact that we view the future as being very bright indeed for Nkomati. When you look at the resources and assets we have in the ground it equates into what we predict will be a long, rich life of mining ahead. If we can continue along the same path, while containing our operational costs, there is no reason why we cannot be a successful business for many years to come.” For more information about Nkomati Mining visit: www.arm.co.za MMZ plant

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Powering the future

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JSPL Mozambique Minerais Limitada

Mozambique is fast becoming one of the most important places on earth for mining. Vice President and Country Head, Manoj Gupta, discusses JSPL Mozambique’s commitment to the growth of this sleeping African giant

written by: Will Daynes research by: Abi Abagun

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JSPL Mozambique Minerais Limitada


ocated on the southeast coast of Africa, Mozambique is the world’s 35th largest country and has become recognised as a favourite hot spot for countless mining companies, particularly those interested in coal. With coal found in the country having garnered a reputation for its purity, Mozambique has earned the moniker of being the “natatorium of coal mines”. With an estimated 2.4 billion tonnes of coal reserves though to exist within the Tete province alone, it comes as little surprise that coal mining exploration today represents a cornerstone industry of the country and a major contributor to its economy. It should also then be of little surprise that Mozambique continues to attract the attention of major multinational businesses and companies, keen to establish a presence within its borders. One such business is Jindal Steel and Power (JSPL), a leading player in the steel, power, mining, coal to liquid, oil and gas, and infrastructure sectors with an annual turnover of approximately $15 billion. It was in 2008 that the company incorporated and registered JSPL Mozambique, before commencing with mining prospection in the final quarter of that year at its concession area in Chirodzi of the Cahora Bassa district. “JSPL’s primary reason for coming to Mozambique,” explains Vice President and Country Head, Manoj Gupta, “is to support Jindal’s steel plant operations in central India through the export of coal, one of the main raw material ingredients required during the steel production process. Having established a footprint with the country we wasted no

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Contact us today and put your company in the spotlight!

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time in setting up exploration programmes and testing coal material in our laboratories, bringing us to the point where today we are ready to export our first shipment of coal.” With first coal ready to be moved from JSPL Mozambique’s mine site, the company is now in a position where it can begin acquiring a rolling stock of vehicles that can transport the product to Mozambique’s port facilities. Despite the considerable progress the company has made, challenges do still present themselves, particularly the logistical issues caused by a lack of crucial infrastructure within the country. For its part the Mozambique government is making serious strides to remedy such issues by pushing forward various large-scale projects that include creating increased port capabilities

JSPL Mozambique Minerais Limitada

JSPL are now ready to export coal shipments

and a new railway line linking the core mining areas to the coast. “JSPL views its operation in Mozambique as being part of a long-term commitment to the country,” Gupta enthuses. “It is for that reason that we have repeatedly stressed our support for the government’s plans for the country and we stand ready to help in any way we can, be it as a partner, financial or a user. Our Chairman, Mr Naveen Jindal, has held discussions with

the government of Mozambique, and we have decided to expand our search into good quality iron ore. If we can find this iron ore then we would be very interested in setting up a steel plant as well in Mozambique” As part of its commitment to the country, JSPL also aims to play a pivotal role in Mozambique by contributing not only to its economy, but also by uplifting the lives of the communities around which it operates.

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One of JSPL Mozambique’s main initiatives in recent years has involved efforts to increase the employment opportunities available to the said communities, whose people have already proven that they want to engage in the work that JSPL is undertaking. Today the company’s mine provides either direct or indirect employment for upwards of 1,000 people, many of whom reside locally. JSPL Mozambique has also

helped bring other important changes to the area by investing significant amounts of capital into various infrastructure projects around the mine such as new roads and telecommunications networks. “One of the things that pleases us most,” Gupta states, “is the fact that during our time in Mozambique we have witnessed things changing for the better and we hope to contribute further to improving

“One of the things that pleases us most is the fact that during our time in Mozambique we have witnessed things changing for the better”

JSPL commissioned a 400 TPH wash plant

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JSPL Mozambique Minerais Limitada

JSPL plan to build a coal-fired power plant

the standards of living in the area in the months and years to come. To date we have donated ambulances to the Tete Hospital to help improve response times, built an on-site clinic, which is accessible to all people from the surrounding area, donated malaria kits to communities and distributed blankets and bed sheets to the Chirodzi Primary Health Centre. We now plan to follow this up with the building of both a primary and secondary school in the near future.” In February 2013, JSPL Mozambique took the next step in its development by commissioning a 400 TPH wash plant. The commissioning of this plant represents a strategic move towards further expansion of the company’s operations. It also paves the way for the company’s plans of one day producing up to 20 million tonnes of coal per

year, a number it plans to achieve through continued investment in the mine as well as the infrastructure to support its operations. “Our plans for building a coal-fired power plant are well underway,” Gupta concludes, “with an environmental assessment being carried out as we speak and a MOU having been signed with the Ministry of Energy. We believe that this plant and the power it will generate will bring with it an increase in job opportunities for individuals and small businesses within the area and will unquestionably help Mozambique develop further still in a big way.” For more information about JSPL Mozambique Minerais Limitada visit: www.jindalafrica.com

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EMED Mining

A GIANT WAKES written by: john o’hanlon research by: robert hodgeson EMED Mining, listed in London and Toronto, is a tiger in the economy of Spain, ready to spring into large scale copper production at the end of this year: it may not save the economy but it will help

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Flotation area

EMED Mining


hen we last spoke to new discovery; nevertheless it took foresight Harry Anagnostaras- and rigorous technical expertise to see the Adams, Managing huge potential for modern exploration and Director of EMED extraction techniques here. The mine’s Mining, it was late 2009 eponymous owner, now one of the largest and he had been hoping to get the company’s mining companies in the world, had walked flagship project, Rio Tinto open-pit copper away from the site in the early 1990s, mine near Seville in Spain into operation leaving it in the hands of private owners by 2010. That was at any rate the original who mothballed it in 2000 due to low copper objective of the company, which in 2005 prices on the metal exchanges. In recent years that has situation has had been floated on London’s AIM market by a group of Australian mining specialists been reversed. EMED acquired 100 percent who saw a real opportunity across Europe ownership of the mine in 2008 when copper and the Middle East. EMED prices were down to $3,000 made its headquarters in a tonne, however by June Nicosia, capital of Cyprus, 2011 they had climbed to as a central location from almost $8,000, a level they which to oversee its activities have maintained, and where in Spain and the Balkans. In they look likely to remain for 2008 it started trading its a long time to come thanks shares on the Toronto Stock to almost insatiable demand Value of Rio Tinto Exchange as well. from China and India. copper reserves In 2007 EMED was The prospects for the granted an option to acquire project are very attractive. the mine known as Proyecto de Rio Tinto It is, the company claims, the largest (PRT) formerly owned by, who else, Rio volcanogenic massive sulphide system in the Tinto. In case there’s any confusion, the world but no drilling had taken place there for region of Spain where the mine sits is the a quarter of a century. Nevertheless the site original Rio Tinto, a town named after the has unrivalled facilities and infrastructure, river which flows close to it, which is coloured with access to water and power, which means red - in Spanish tinto means red, as in vino the capital cost of setting up, and the cost tinto – thanks to all the mineral ores, such per pound of extraction are low. Financing as iron and copper, in its waters. It is located is in place through Goldman Sachs, the 65 kilometres north-west of Seville, in the London commodities hedge fund Red Kite 230km-Iberian Pyrite Belt, which extends as and, linked to an offtake agreement, the far as the Atlantic coast of Portugal. Chinese smelter Xiangguang Copper. The original estimate in 2007, while EMED Mining has gone on here since 3,000 BC, so the last thing EMED would claim is a owned just 51 percent of the project, was that



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it would need to invest $79 million to get the mine up and running. That was the equivalent of a total $240 million investment. In the event the latest estimate is that it will cost $252 million. “We have spent significantly more time and money to get to the execution stage,” said Harry Anagnostaras-Adams. “On the positive side, we have identified higher target values than initially assumed.” Going forward the strategy will be not simply to take an old mine out of mothballs, though that alone has taken a considerable amount of work. The initial project is evaluated on a mine life of just 14 years, but he believes that it will continue to yield commercially for twice that length of time. In addition, work in

EMED Mining

Grinding area

the past by RTZ has indicated that there are other deposits on the site, and these will be tested by EMED. It will also re-evaluate the underground mines, optimise and extend the existing reserves, and look at any potential there might be to re-process the tailings from pervious mining activities. Once the Rio Tinto mine is in full

production during the third quarter of 2013, subject to obtaining the necessary environmental and other permits it will employ around 450 people. The permitting process should not be a problem: the Spanish government is stimulated to get behind any project that will provide employment and generate wealth at a time when both

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School group at primary crusher

“I think the industry’s one of the few bright spots in the global economy” are in conspicuously short supply. Annual production is estimated at 37,000 tonnes of copper in concentrate, based on processing nine million tonnes of ore per year, though Anagnostaras-Adams is talking of ramping up to the full available capacity of 15,000 tpa at an earlier stage than originally planned. As we reported in 2009 the site holds one million tonnes of copper resources and

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600,000 tonnes of copper reserves, equating to contained metal worth around $4 billion. As then, the company’s other projects are waiting for Rio Tinto to release the cash flow and resources to develop them. EMED’s 1,000 square kilometre Detva licence area in Slovakia was ‘virgin’ discovery by EMED in 2006. During 2008 the company completed a diamond drilling program of 34 holes on a

EMED Mining

Historic Corta Alaya open pit

100 metre by 100 metre grid pattern at Biely Vrch, finding extensive gold mineralisation. A scoping study in 2010 indicated that that the Biely Vrch deposit would be commercially viable, capable of producing 60,000 ounces of gold a year over at least ten years. EMED Mining also has a number of other interests, among them a large mining lease in Georgia and a 30 percent share in exploration company KEFI Minerals, which is active in Turkey and Saudi Arabia. KEFI Minerals also owns an extensive database of exploration data that provides a continuous pipeline of further exploration prospects. There is no denying that, like every

Diamond drill core storage

industry, mining and exploration has suffered since the onset of the global downturn, but Anagnostaras-Adams remains optimistic. “I think the industry’s one of the few bright spots in the global economy,” he says. And if anyone is wondering about the effect of the proposed EU-instigated raid on assets that is troubling Cyprus at the moment, don’t worry too much – it is unlikely to be liable for more than €20,000. For more information about EMED Mining visit: www.emed-mining.com

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Looking beneath

the surfac

For more than 15 years Adrok has been a pioneer in t geophysical services. Managing director, Gordon Stove the next stage in the company’s growth and what it en

written by: Will Daynes research by: James Boyle

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the field of e discusses ntails

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Coal bed tracking using a 4-channel receiver system in eastern Australia



he US alone,” managing director, Gordon Stove enthuses, “represents the single largest geophysics space in the world, with a revenue generation of over $2.4 billion a year from geophysical survey services alone. This is just one of the reasons why we are so keen to expand into that part of the world.” Until the turn of the year Adrok serviced the US market from its headquarters in Edinburgh, yet it has always known that having an indigenous base in the countries in which it operates would be of great benefit. The next logical step for the business was to open a base in the country, which it did in February 2013 with the opening of Houston, Texas, based Adrok Geosciences. “One of the challenges we had before setting up this office,” Stove highlights, “was that we had a limited ability to promote ourselves and our technology to clients in the US. Americans do have a tendency to buy only from Americans or American based businesses, therefore it is strategically a great move for ourselves to have someone there now on the ground who can move around freely, set up meetings and attract new opportunities.” Following a successful academic career within the Geography Department of the University of Aberdeen, technology founder and major shareholder of Adrok Ltd, Dr G Colin Stove went on to hold a number of high profile positions within his field of expertise, from leading Remote Sensing research at the Macaulay Institute for Soil Research to pioneering new radar research for a company

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set up to service UK Government and other commercial organisations. Six years after establishing a new Ground Penetrating Rader business, Dr Stove sold the company to an international drilling firm. This presented him with the opportunity to establish a science business that would allow him to develop his ideas around Atomic Dielectric Resonance (ADR) technology. Based in Edinburgh, Adrok combines

leading scientists and engineers and has successfully commercialised the technology to the advantage of numerous industries, ranging from oil and gas to geophysical exploration and research. “The first two years of our life,” Stove explains, “were spent applying for the intellectual property for the technology that my father invented. It was then in September 1999 that we set up the commercial company,

“Adrok combines leading scientists and engineers and has successfully commercialised its ADR technology to the advantage of numerous industries”

One of Adrok’s many onshore surveys in USA. For this survey in Texas, the ADR scanner was deployed from a zipline.

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Adrok work in all environments and have carried out mineral exploration surveys on frozen lakes in Canada and the Arctic Circle

before embarking on the long, arduous task of research and development in order to build up, test and improve the technology.” After extensive research and development that lasted a number of years, Adrok successfully launched its first commercial service project in the spring of 2007. It was at this point that it set its stall out to become a leading geophysics and survey company, picking up work from several oil and mining businesses, going out to their respective properties and conducting a full survey of the land. “In addition to deducing what the geology,

hydrocarbons, minerals or rock types are actually in the ground,” Stove continues, “we also provide our clients with better intelligence of the subsurface, while also helping to de-risk their drilling programmes. That is what we as a company are all about, helping our clients with their drilling programmes by conducting a detailed, intense survey in order to map out the rock types in the ground. We do this before drilling commences, so we are at a stage that helps filter the drilling decision making processes of our clients so they can definitively state where to drill.”

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Survey in a marshy field in Ireland prospecting for lead and zinc metals

“Central to the next stage of the Adrok’s growth is its ability to turn itself into a major geophysics services provider” Adrok uses advanced ADR technology to supply pioneering geophysical services for the location, identification, mapping and exploration of subsurface natural resources. A patented investigation technique, ADR works by taking images inside materials and subsequently classifying them. It does so by measuring and interpreting resonant energy responses of natural or synthetic materials while these interact with pulsed

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electromagnetic radio waves, microwaves, millimetric or sub-millimetric radio waves being passed through them. “The major benefit our clients derive from using ADR technology comes in the form of significant cost savings,” Stove states. “We guarantee that by using the technology we can save the client up to 90 percent of the cost of physically drilling a hole, meaning that for the price of one drill hole we can


Hydrocarbons survey in Egypt

Extreme surveying for gold in the hills of Perthshire, Scotland

provide as many as ten virtual bore holes.” Other benefits include low energy use, the ability to operate at close or long range, the lightweight nature of the equipment that allows for greater accessibility and transportation, and its ability to function in all manner of environments and conditions. Furthermore it has significant environmental pluses, being a nondestructive technique that does not have any adverse effect on the land itself. While the technology has the ability to function offshore, Adrok’s current focus revolves around land based targets, particularly those in Canada, the US and Australia, which are among the largest oil and gas, and mining rich parts of the world. As the company has found on a number of

occasions throughout its history, introducing any new product or service to the marketplace comes with its own challenges, not least the task of having to convince those who are sceptical. Adrok has discovered the best solution to this is simply for it to actively go out and showcase the technology is has and what it does for its users. In doing so it has been able to demonstrate up close the value the technology can bring to the table, something that has been greeted extremely positively. “We are growing at such a fast rate that internally we have more projects than people in the company right now,” Stove says,” which is a good position to be in, but we do have to ensure that we remain capable of delivering strong, value added services to our clients. What we have been very good at doing is

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Appraisal survey onshore Oman for hydrocarbons from a standard 4x4 vehicle. Adrok’s first foray into the Middle East market


$2.4 Billion Yearly revenue generation in the US from geophysical survey services setting up internal quality systems, procedures and policies to make sure that our work flows are working efficiently and effectively throughout the business. Meanwhile, being awarded ISO:9001 accreditation was also quite a big windfall for us.” Central to the next stage of the company’s growth is its ability to turn itself into a major geophysics services provider, something that it hopes can be achieved by further educating the market about its technology, demonstrating the added value it can bring and ultimately securing new clients. “We have achieved such a great deal in the space of 15 years,” Stove concludes. “Since the day we commenced operations we have secured the intellectual properties to our technology, worked with universities and academics in order to prove it up, demonstrated the technique countless times, secured a number of major multinational clients and secured several rounds of investment along the way. That is a lot to have achieved in a relatively short space of time and is a growth story I certainly feel is worth sharing.” For more information about Adrok visit: www.adrokgroup.com

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Polycorp Ltd

FLEXIBLE FORMULATION Polycorp is a specialist in polymer products for the transportation, industrial and mining sectors: for two successive years selected as one of Canada’s Best Managed Companies, it is growing fast and focused on international expansion

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

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Transportation railseal extrusion

Polycorp Ltd


t was in 1988 that BF Goodrich, the company that first discovered how to bond rubber to steel, decided to divest the industrial businesses it had accrued and focus on its aerospace assets. The US rubber lining business was sold to RJF International Corporation, while its Canadian operations to Epton Industries Incorporated. In 1996, Peter Snucins purchased the assets and intellectual property of Epton Industries and created Polycorp Ltd in Elora, Ontario. On August 26, 2002 Polycorp purchased Polymeric Protective Linings, the RJF International business, establishing Polycorp as the largest manufacturer of rubber linings in North America, and heir to an accumulation of unrivalled know-how in the field of polymers going back nearly 90 years. There are many industrial applications for rubber. Polycorp made an early decision to focus its R&D investment and marketing on just three strategic areas: Transportation, Protective Linings and Mining. “One of the things that makes our company unique is that we have these three divisions,” says Vice-President and General Manager Andrew Haber. What is common to each division is the design and use of rubber to protect against corrosion, wear, impact, noise and vibration. The three divisions, all serving growing markets, are roughly the same size when it comes to sales turnover. The key strategy in each sector is to position Polycorp strongly with its customers in North America, then expand into markets around the world where similar technologies and issues are encountered. The policy has been a success as evidenced by its sales growth – from $66

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Congratulations to Polycorp’s success. AirBoss is proud to be a supplier to this world class company.

Polycorp Ltd million in 2012 to an expected Airboss $75 million this year. “The AirBoss develops, manufactures and sells high quality, target is to hit $100 million rubber compounds. We also engineer and mould specialty by 2015,” says Haber, “and rubber-based products for the transportation, defense this will be largely achieved and industrial markets as well as for our own proprietary through export growth.” designs of military protective wear. Transportation does not With a capacity to supply over 250 million pounds of rubber annually to a diverse group of rubber manufacturers, adequately describe what the AirBoss is one of North America’s largest custom first of these divisions does, compounding companies. Our shares trade on the TSX though it was this market under the symbol BOS. that prompted Polycorp’s Our formula for delivering what our clients demand— owner, President and CEO products that offer enhanced productivity and Peter Snucins to purchase the performance—is built on three pillars: Consistent Quality, company in the first place. Cost Efficiency and Dependability. www.airbossofamerica.com Polycorp’s Epflex Railseal Interface is designed to match the contours of the rail at freight railroad level grade crossings. Epflex Railseal Interface is an extruded virgin rubber profile designed to absorb the destructive energy from both rail deflection and vehicular traffic thereby extending the crossing life and significantly cutting maintenance costs. “Polycorp guarantees Epflex Railseal Interface to be reusable for at least two grade crossing rehabilitations. This translates to a lower cost per year in crossing maintenance when amortized over

“Liner replacement is a critical part of the entire mine operation”

Mining press

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$100 million Targeted turnover 2015

Mining hand lining

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the products life,” Haber says. In recent years, the Transportation division has developed a Track Encapsulation System for urban transit systems. “We looked at the expanding market in light rail transit systems, street cars and tramways being installed across North America in cities such as Toronto Ontario, Salt Lake City Utah and Houston Texas,” says Haber. A rubber system provides several benefits in these applications. Noise and vibration reduction is very important in urban areas of course, but these systems also call for the electrical isolation of the whole rail, since what is called ‘stray current corrosion’ can damage pipes and other underground structures in the vicinity. With many North American cities installing or extending transit networks, this is a growing market segment for Polycorp. These projects do not happen overnight and there is always a long commissioning and engineering design stage to go through. To develop the international market, Polycorp is working with engineering design firms such as Alstom, transferring North American designs and technology to other geographic regions. The Protective Linings division is where Polycorp’s chemistry expertise comes in strongest. It has a huge portfolio of over

Polycorp Ltd

Mining press line post curing

80 lining formulations and decades of proven performance in their application in industrial situations that call for protection of tanks, pipes and equipment from corrosive or abrasive environments. The material is supplied uncured, applied and then cured in situ to form a continuous protective rubber membrane. In many cases the lining can last over ten years, dramatically increasing asset life for customers. “An engineer can expect to specify these materials only a couple of times in their career. Mitigating the risk associated

with hazardous materials is a key factor in their decision making process,” Haber says. Polycorp chemists are constantly working with customers to develop new formulations to suit whatever aggressive chemicals they may need to handle. Mining, the third division, is particularly buoyant at this time. In this market, Polycorp is a leader in designing and manufacturing grinding mill liners. Ball mills, semiautonomous grinding and autonomous grinding mills require a replaceable liner

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ETSM specialises in the custom design and manufacture of Coil Winding Equipment & Metal Fabrication Services

We offer a diverse range of technical services to include: • Custom machine design • Machining • Welding • Automation and process control • Millwrighting • Sheet metal fabrication • Prototypes • Small Production Runs Telephone: 519-827-1500 | Email: sales@etsm.com | www.etsm.com


Click here to visit our dedicated homepage for the mining community www.bus-ex.com/mining BEST PRACTICE IN MINING

Polycorp Ltd systems to protect the mill shell and to enhance the ETSM has formed a long standing relationship with movement of the ore slurry Polycorp by specializing in CWB custom welding services. for optimum throughput and In addition, we pride ourselves on being master machine grinding performance. Mill builders.  We specialize in the custom design and liner replacement is a critical manufacture of coil winding equipment for the electrical part of the entire mining transformer and power distribution industries, and also have the expertise to build custom machinery for the metal operation. If the mill stops, forming industry. the whole process stops. It www.etsm.com is critical that the mill liners achieve the required service life. “Preventive maintenance schedules depend on replacement on a regular basis. If you are off by a week they have to do an unplanned shutdown – and this can have huge financial consequences,” Haber points out. Mill liners can be designed to last anywhere between three months for aggressive applications in large SAG mills, to a couple of years in smaller ball mills. There are three types of mill liners, Haber explains, all steel, all rubber and rubber/steel combinations where the rubber is moulded to a steel insert providing protection at the leading edge. Manufacture of these parts is highly customised, with each mill having its own specification and design. Over the last four years Polycorp has focused its R&D toward the advanced design and engineering of these parts, working with Dr R Rajamani


90 years Polycorp’s technical heritage Mining finishing saw

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at the University of Utah who has developed computer models that simulate the flow of ore slurry through grinding mills. This virtual prototyping approach allows for evaluating different ways mill managers and engineers can run the mill and find what design gives the best efficiency and the longest life to different parts. “Our approach to mining has become more design intensive as opposed to a materials approach. The right formula is one

essential ingredient. Mill liner design is just as important in getting performance right.” Mining looks to represent the largest market potential for Polycorp, with geographic expansion opportunities leading the way. “We are targeting regions under serviced by our competitors. Currently we are pursuing opportunities in Kazakhstan, Mongolia and in emerging resource-driven African countries like Ghana, Mali and Ivory Coast,”

“Our approach to mining has become more design intensive as opposed to a materials approach. The right formula is one essential ingredient”

Protective linings warming mill

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Polycorp Ltd

Mining press

says Haber. In these markets, developing local agents with a good understanding of the mine operations is a key. Manufacturing, engineering, customer service, sales & marketing and product development for each of the divisions is located at the Elora Ontario plant, a lean operation employing just over 150 multi-skilled people. The company has been investing to grow its manufacturing capacity. In 2012 a third calender line for manufacturing Protective Lining products was launched. Currently a very large multi-daylight press and automated handling systems for manufacturing mining products is in the process of being installed. These investments will ensure that Polycorp has the capability to support its $100 million vision.

Last year, the management team was honoured with being raised to the pantheon of Canada’s 50 Best Managed Companies sponsored by Deloitte, CIBC, National Post and Ontario’s Queens School of Business. Re-election as one of Canada’s Best Managed Companies this year, underlines the through-and through excellence of the business. “It provides our customers with independent validation of the soundness of our business strategy and commitment to the industries we serve” says Andrew Haber. For more information about Polycorp Ltd visit: www.poly-corp.com

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As strong

as steel President and CEO, Vivek Kamra, discusses how the success of NatSteel’s offsite prefabrication of steel reinforcement products and services have helped refocus the business into becoming a total solutions provider

written by: Will Daynes research by: James Boyle

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NatSteel delivers over 1000 different shapes of Cut & Bend products to suit customer needs



here are very few places,” states President and Chief Executive Officer, Vivek Kamra, “that have provided a good economic environment to operate in over the last year or so. However, despite the challenges that exist, developing economies within South East Asia have remained reasonably robust.” The economies that Vivek speaks of include those of China, Indonesia, Thailand, the Philippines and Singapore. These are the countries in which NatSteel, a wholly-owned subsidiary of Tata Steel, today employs more than 3,000 employees. Constantly working to push the frontiers when it comes to manufacturing processes, every year NatSteel produces close to two million tonnes of premium steel products for the construction industry in the region. In Singapore, the company’s steel products are used for residential, commercial and industrial buildings, and infrastructural works like bridges and MRT lines. “Singapore,” Vivek continues, “has strong construction growth in recent times, both in terms of its own infrastructure and through the many housing projects that have risen to cater for an evergrowing population.” With the population of Singapore touching the 5.5 million mark, moves have been taken to not only improve the housing situation, but also the city-state’s road and public transportation networks. These programmes are helping to drive growth within the construction sector, as are moves to completely revamp Singapore’s fibre optic and power networks. These undertakings are core to Singapore’s growth plans for the next fifteen years.

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NatSteel’s prefabrication facility ensures consistent, high quality of products for customers

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One of NatSteel’s specialisations over the years has been its expertise in providing offsite prefabrication of steel reinforcement products and services. Across its Asian operations, NatSteel continues to witness several key trends that are driving the shift towards these, specifically the demand for higher productivity while maintaining safety standards, manpower constraints, space restrictions at construction sites, a demand for faster construction speeds and the need to reduce material wastage. “Customers are increasingly recognising the many benefits these products and services have to offer,” Vivek explains. “The biggest of these is the yield benefits customers receive from seeing their amount of wastage fall dramatically, that is perhaps the most positive shift they immediately see when moving away from onsite fabrication.” Having had success providing offsite prefabrication of steel reinforcement products and services in its core markets, NatSteel now has several initiatives underway to expand its offering into other regions. “Singapore on its own has a very unique geography that lends itself favourably to offsite fabrication,” Vivek says. “What this means is that rather than simply replicating the model we have here, we have had to customise it to suit the different needs or different locations.” In India it is currently promoting the concept to its parent company while also driving it through small service centres where labour remains competitively priced. “One of the things we are doing in small, built-up locations in India,” Vivek says, “is promoting the idea of offsite fabrication by highlighting how it can actually improve onsite productivity. To date


NatSteel’s logistics service

we have established ten service centres that work to promote these products and services in the country’s major metropolitan areas.” Elsewhere, the company has commenced with efforts to promote its offsite prefabrication of steel reinforcement products and services in Malaysia and China, where it is establishing a facility in the city of Xiamen. Meanwhile, the company already has distribution and processing centres set up in Australia where it is working with its customers to significantly improve their manpower productivity levels. “In Australia,” Vivek highlights, “we have made considerable progress in automating

our various lines, thus reducing the labour content required for offsite fabrication substantially. As a result of this, productivity levels in a number of our plants have now reached global benchmarks.” As one would expect, there are a number of successful case studies that showcase the positive results that have been achieved through the use of NatSteel’s prefabricated solutions and expertise. Perhaps the one that stands out the most was the construction of the Stevens underground MRT Station in Singapore, whose site was located on an existing road junction and in a tight urban

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setting surrounded by bridges, houses and was subject to heavy traffic volumes. The project was beset by a number of challenges. These included the extremely limited site space as a major portion of the road had to be kept open for traffic, significant manpower restrictions due to the government’s stringent foreign manpower policies, site safety and a very tight construction schedule. In addition, the delivery of prefabricated cages to site needed to be perfectly coordinated and timed to minimise obstruction to traffic flow and

for immediate onsite installation so as not to choke the limited site space. NatSteel provided prefabricated cage solutions for the Stevens MRT station’s diaphragm walls. The cages, which were designed and fabricated precisely at NatSteel’s factory with various cage accessories such as lifting hooks and stiffeners, were delivered justin-time in order to help the customer overcome these challenges. The cages were pre-installed with couplers for easier basement construction which saved significant construction time.

“It is clear that the days of NatSteel seeing itself as simply a steel supplier are in the past”

The Sidelifter system from NatSteel enhances the safety and productivity of material handling onsite

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NatSteel’s automated downstream facilities

Furthermore, the customer was able to save a significant cost by eliminating material wastages and by reducing the level of manpower required onsite, while at the same time maintaining a safe working environment. By delivering its building solutions at the optimum time, NatSteel ensured it did not choke the limited site space, while the use of these solutions helped relieve the customer of the manpower challenges they had originally faced. Furthermore, site safety was improved and better site management was achieved as a result of there being no rebar fabrication activity taking place onsite, while the customer also benefited from the savings they made from elimination onsite rebar wastage. As Vivek reflects on where the company stands today and where it wants to go in the

future it is clear that the days of NatSteel seeing itself as simply a steel supplier are in the past. “The interactions we have today with our customers exist on the basis of us being a seller of solutions, not steel. As we continue moving our business further downstream we will investigate ways that we can expand and establish more of these solution centres into other parts of South East Asia where growth opportunities in the construction sector exist. Meanwhile, we will continue to work to offset the challenges our customers face, providing them with ways to improve productivity.� For more information about NatSteel visit: www.natsteel.com.sg

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The perfect manufacturing partner President and co-chief executive officer, Claude Germain, and executive vice president and chief operating officer, Paul Blom, discuss how the company has successfully evolved into the business that it is today

written by: Will Daynes research by: Candice Nice

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oday a global Tier II Electronics grow its top line significantly more than Manufacturing Services (EMS) the industry average as a result of its focus provider, delivering integrated on business development and account cont r ac t ma nu f ac t u r i ng management. “While we are not of the services to original equipment view that we can reinvent the economics manufacturers within the industrial, of being a Tier II EMS player,” Germain computing and communication market continues, “what we do know for sure is segments, SMTC has come a long way in its that we can always do a better job when it comes to driving our top line. Thanks to our 25-plus year history. After going through a phase of adoption of various strategic initiatives we consolidation during the 1990s, the market have been able to grow our top line in the crash of 2001 resulted in the company, last year by as much as 36 percent. It was headquartered in Ontario, Canada, having this achievement that saw SMTC presented to deleverage its assets in fairly rapid order. with the Frost & Sullivan award for being This led to a near ten year the fastest growing global period where the company EMS player in 2012.” focused itself on retaining a Where the company has solid balance sheet. garnered similar praise over “By 2011, the process the years is in its use of world class IT systems and tools to of deleveraging was Top line growth SMTC largely complete,” explains support the core processes has achieved over the president and co-chief related to engineering, supply last year chain and manufacturing, executive officer, Claude Germain, “so we embarked providing customers with upon a more balanced strategy that focused significant added value. on growing our operating cash flow, and “The IT systems we utilise,” states executive increasing the investment in our business. vice president of operations, Paul Blom, “are Since 2011, and by reducing our costs and absolutely key to our success, and to the increasing our top line, we have generated services that we bring to our customers. additional cash. We have invested this into We leverage Agile and Valor to support working capital to support our top line engineering and new product introduction growth, into upgrading and modernizing activities. Agile is also key to the management our equipment, into engineering and of several hundred thousand part numbers design, and into mergers and acquisitions.” and a high volume of customer engineering Business conditions in the electronics changes per year. Meanwhile, on the market have a tendency to oscillate from procurement and quoting side, Quotewin by year to year. Though 2012 was not a stellar PolyDyne is used to support a global quoting year for the industry, SMTC was able to and commodity management process. And


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As the leading provider of strategic sourcing and quote management software, PolyDyne solutions streamline processes in product costing, commodity management, contract negotiations and outsourcing decisions.

Email us at: info@polydyne.com 512-343-9100 www.polydyne.com


Contact us today and put your company in the spotlight!


SMTC finally, Kinaxis is used to Exact MAX execute planning, demand With decades of experience serving entrepreneurs, Exact simulation and production understands the issues that manufacturing companies face planning activities.” when running their business. Exact MAX helps growing These platforms have manufacturers control their resources with an easy-to-use been tailored to perfectly solution that reduces the cost of manufacturing, automates complement one another manufacturing compliance, and improves profitability all while enhancing customer service and satisfaction. and remain constantly Through seamless integration with Microsoft Dynamics GP and updated so as to provide Intuit QuickBooks, MAX offers the power of integrated ERP SMTC with the most up-toand boasts a particularly strong footprint with manufacturers date data available when it that must maintain compliance with government or industry comes to customer forecasts, regulations, manage recalls and control and document product bills and materials and revisions and engineering changes. engineering changes. By max.exactamerica.com updating the said platforms on a continuous basis the company is able to ensure that it is always procuring and quoting parts at the most accurate of levels, while also doing a rapid job of introducing new products. “Increasing SMTC’s contribution to each of our customer relationships,” Blom highlights, “is our value engineering team. Working closely with our customers, leveraging the skills of our strong internal team, and involving external partners, we identify appropriate opportunities to achieve cost and lead time reductions. The SMTC value engineering team focuses on design-for-manufacturing, design-for-supply SMTC engineering

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“I see SMTC continuing to evolve the ways in which we deliver services to our customers, and investing further in both IT systems and employee skills” chain and the leveraging of SMTC’s global procurement capabilities.” Another example of the way SMTC strives to work with customers every step of the way, is its ability to undertake what it calls AVL expansion projects. It is during these that

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the company goes back to its customers and presents recommendations on who to add to the approved vendor list on the bill of materials to drive cost and lead time reductions, and product life cycle optimization. “During these AVL projects,” Blom says,


SMTC manufacturing plant

“we focus on several key areas, the first is driving cost reduction by leveraging our preferred suppliers. The next is a focus on risk reduction and improved continuity of supply, particularly during periods of material shortages – here we look to increase the number of options available for global sourcing of components and assemblies.” Looking forward, Blom points out that SMTC’s customers will continue to experience various competitive pressures within their markets, thus they will continue to turn to SMTC to provide proven value engineering and supply chain solutions. “I see SMTC as

a business continuing to evolve the ways in which we deliver services to our customers, while at the same time investing further in both IT systems and employee skills. Each customer has different needs, evolving over time. It is key that we proactively anticipate these requirements, bringing the right solutions to our customers at the right time, in order to address these needs.” For more information about SMTC visit: www.smtc.com

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Grafton Everest


DIAMONDS South Africa’s leading manufacturer of lounge suites Grafton Everest innovates to grow and is currently planning to capture the increasing demand for fine furniture in the vibrant economies in other parts of the continent

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

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Grafton Everest


urban based Grafton Everest was formed in 1953 when two South African furniture brands – Grafton Art Furnishers and Everest Upholsterers merged. That means that Grafton Everest is celebrating its diamond jubilee this year, and it is definitely not failing to make the most of its opportunity. There is a lot to celebrate. Make no mistake, the market for luxury furniture has been in decline lately, not just in South Africa but world wide. “It has been tough, and it is getting tougher,” says Marketing Executive Jeff Fivelman. “We have a lot of competition from China, and our consumers are as much affected by the global recession as anywhere else in the world.” But Grafton Everest has countered the negative trends by stepping up its core qualities of design and quality manufacture, together with its understanding of the needs of its customer base, to maintain sales volumes and keep its 600-strong workforce busy. Grafton Everest belongs to the Bravo Group, South Africa’s largest bedding and furniture manufacturer and supplier with eight factories and household names like Slumberland, Sealy, the distribution company Global Sourcing and fellow furniture brands Alpine Lounge and Gommagomma. However Grafton Everest is probably the best known of all the sofa or lounge suite brands in the country, says Fivelman. Having recently restructured its retail showroom in Durban, this jubilee year is a good time to be drawing attention to the products. The way is being prepared with an event

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Hanni fine quality leathers since 1724 We at Hannitan are proud to be associated with Grafton and would like to congratulate them on reaching their 60th Anniversary

Hannitan Leather, under the management of Rudolf Hanni, has been hailed by many as

one of the cleanest and efficient tanneries in the world. Starting from very humble beginnings Hannitan has expanded into the largest supplier of furniture leather in South Africa, producing an average of 1,200 hides daily. The tannery produces a wide variety of upholstery leathers including, aniline leathers, semi-aniline, full grain, corrected grain, buffed leathers and oil pull-ups in a huge selection of colours. Hannitan manufactures a HANNI range of leather goods including travel bags, hand bags, leather cushions, leather folders and slippers to various outlets . It also offers a customized service manufacturing for various other well known labels and brands. All products are individually cut by hand to ensure the finest quality and craftsmanship.Hannitan supplies its own range of leather care products including waxes, silicones and hydrophobic products.

Tel: +27 (0)11 817 2150 | Fax: +27 (0)11 817 5259 | Email: hannitan@iafrica.com


Grafton Everest

Machinist at work

that would have taken place anyway, the built on its diamond mines. “We are giving annual trade show at its Johannesburg away diamond jewellery to the tune of showroom. It’s a bit like the unveiling of a about 160,000 Rand, or nearly $20,000, to new collection by a Paris fashion house. In customers. Anyone purchasing one of our the third week of February Grafton Everest lounge suites will be entered into a draw together with its sister company Alpine to win some fantastic diamond jewellery.” Lounge welcomed dealers from across It’s a supercampaign, publicised across the southern Africa to preview their 2013 ranges. retail trade, in women’s and household “We put a lot of effort into the show,” he says. magazines as well as on TV – everywhere “And in the diamond jubilee year we are that will reach the loyal Grafton Everest customer base in fact. also putting a lot of effort If that doesn’t catch their into the special promotions we have planned through to attention maybe nothing will, but there are plenty of other the end of July.” The most striking of these advertising initiatives going is entirely appropriate for on to make sure the company’s Value of 2013 diamond market share doesn’t slip in a company celebrating its promotion 60th birthday in a country these difficult times. “We are


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Care is taken when cutting the materials

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finding that the best way to stimulate sales is with promotion and more advertising: it costs money but it’s worth it.” But these customers are discerning. The promotions have to be backed up with innovation, so at a time when some brands are retrenching Grafton Everest customers will notice a lot of exciting new product designs, fresh colours and fabrics, and value added through technology. “We are very much in a fashion industry,” he admits. In better market conditions manufacturers can perhaps be satisfied with static ranges but when times are hard the winners will be the ones who can really catch the eye of the consumer. Grafton Everest’s export market died about ten years ago when the Rand became a stronger international currency. In recent years the challenge has come from the east. Gone are the days when Chinese furniture was either entry-level or, frankly, poor quality. But recently the Rand has weakened against the dollar, bringing down the gap between home made and imported furniture. Customers are again willing to pay a little more to access the satisfaction of owning a South African product backed by strong and dependable warranties. And the younger, upwardly mobile customers whose lives are ‘connected’ can find Grafton Everest on Twitter or Facebook. “Social Media are on the up here,” he says. “And as well as in the magazines, we are doing regular advertising on TV and radio.” TV being an expensive medium, Grafton Everest ads tend to be short, frequent, shortterm campaigns put out in off-peak time. Radio is a new departure. A 30-second plug

Grafton Everest

Work begins on upholstering the suite

highlight’s Grafton Everest’s recent move from its former premises in central Durban to a new 1,200 square metre showroom in Umhlanga, a pleasant beachside suburb only 15 minutes away by car but a lot more accessible and with much better car parking. Here customers can browse 40 different lounge settings with trained consultants to hand, something they could never do at a dealership, so the dealers

send their customers to Umhlanga to make their choice before placing an order. It so happens that the building is shared with East Coast Radio, ‘Durban’s No 1’ so Fivelman and his team decided this would be a great way to tell people the move had happened. The growth of the middle class in South Africa has been exponential. Trusted brands have benefited accordingly – BMW or Audi

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Grafton Everest

The Grafton Everest factory floor

for the car, and Grafton down with the introduction of ‘leather uppers’. The Everest for the furniture! The older traditional designs up-market car industry has incorporating ‘show wood’ led the way by using leather are still popular among older on the seats and backs and Area of new Umhlanga buyers but more and more using matching PVC on the showroom people want contemporary low wear areas: it is just another way to make leather sofas with a sleek European look to them. Another trend is that matching furniture more affordable, he says. At the same time, Fivelman would like suites are becoming slightly less sought after as customers opt for individual pieces and express Grafton Everest to pioneer a resurgence in their individual taste with a mix of styles. the use of fabrics, bringing in more vibrant To support that they need a good range colours like turquoise and red. He keeps a of coverings. Leather, he says, is extremely close watch on what is done in the UK, Europe popular, accounting for 60 percent of today’s and the USA and is a little weary of the drab sales whereas it five years ago that would monochromes that are so common. It is time have been 40 percent. “Again, leather is an to brighten up the whole scene he says. aspirational choice, and its cost has come The biggest growth market in recent years

1,200 M2

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Constructing a motion furniture frame

“Two years ago motion furniture accounted for less than ten percent of our business: now it accounts for more than 30 percent” has been in so called ‘motion furniture’, which when you think about it has revolutionised the business. More and more people want lounge furniture that will adopt different positions, recline, and give leg support as they watch TV. “Two years ago motion furniture accounted for less than ten percent of our business: now it accounts for more than 30 percent, and it is still rising.” Individual chairs and entire suites are now designed with reclining actions – you

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could have five separate actions in a single three-piece suite. That has big implications for manufacturing. Making furniture use to call for joinery and upholstery skills: now it needs mechanical and electronic know how to assemble and fit the mechanisms and controls. “It takes a lot longer in the production facility to assemble a suite with recliners – twice as long,” he says.” That comes at a cost, as more labour has to

Grafton Everest

CAD drawing of a corner suite

be brought in to keep throughput up. The Grafton Everest factory moved to an area of Umhlanga called Canelands as long ago as 1986. It now covers 24,000 square metres – it is not expanding at present but the company is proud to have been able to keep it going through the hard times without layoffs or short time working. Over the last three years it has invested in automation including CNC laser leather cutting machinery and even automated fabric cutters to minimise waste. “We have brought in technology where it is appropriate because we sell time,” says Jeff Fivelman. Any spare capacity at Canelands could be mopped up if the company’s plans to expand into new African markets are successful. It already sells well in neighbouring countries, particularly Namibia and Botswana, where

Finishing a leather suite

employment levels are high. Zambia and Zimbabwe are important markets too as is Angola where the Bravo Group has formed a joint venture with a local partner to capture the demand created by that country’s new oil wealth and its large expatriate population. He would love the chance to sell Grafton Everest furniture in the growing economies of east and central Africa too and is just looking for the right partner – a like-minded, go-ahead local business that understands the quality furniture trade and the fundamentals of distribution and import. For more information about Grafton Everest visit: www.graftoneverest.co.za

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Bringing technology to Tanzania Vodacom managing director for Tanzania, Rene Meza, discusses how Vodacom Tanzania is continually evolving its product and service offerings in order to remain the country’s leading cellular network

written by: Will Daynes research by: Dave Brogan

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Vodacom Tanzania

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t was in 1993 that, with the passing of the Communications Act, the government of Tanzania began to plot a course to liberalise the communications sector within the country. In the years since competition has gradually increased in the fields of mobile cellular services, radio paging, internet and data communication services, helping to affirm the communications sector as one of pillars of Tanzania’s social and economic development. Today the title of leading cellular network in the country belongs to Vodacom Tanzania, a subsidiary of the Vodacom Group that was created in the aftermath of Vodacom securing the winning bid to operate a GSM cellular network and provide Public Land Mobile Network (PLMN) services in December 1999. Having gone live on 14 August, 2000, the company had connected 50,000 subscribers with its first four months of operation, before taking this number past the one million mark by the end of September 2004. In January 2007, Vodacom Tanzania reached another milestone when it brought its connected subscriber base up to three million, becoming the first mobile network in the country to do so. Today, it serves more than 10 million customers and counting. As the company has grown, so too has its commitment to supporting the community in which it does business. The Vodacom Foundation has supported over 120 projects in the country in the areas of health, education and social welfare. From building classrooms to spearheading the fight to eradicate fistula, a complication of child birth, in Tanzania by 2016, Vodacom Tanzania is committed to

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Vodacom Tanzania

using its technology to augment government efforts to achieve its Millennium Development Goals so as create a better life for all. “In recent years,” explains Vodacom managing director for Tanzania, Rene Meza, “the telecommunications sector in Tanzania has been driven by a gradual merging of technology. Not long ago, a fixed line telephone was a luxury item enjoyed by the vast minority of people and this too was the

case when it came to mobile phones. Fastforward to today and the mobile phone has completely transcended the action of simply making and receiving calls, allowing users to carry out financial transactions, access the internet, watch movies and so forth.” In order to meet this ever growing list of consumer demands and requirements, Vodacom Tanzania has brought a number of innovations and first to the market. Perhaps

“The Vodacom Foundation has supported over 120 projects in the country in the areas of health, education and social welfare”

Head of Vodacom Foundation, Yessaya Mwakifulefule (right) hands over medicines to Dr. Haruna Mhina, the Chief Medical Officer at Nyamisati Medical Center, Rufiji District, Pwani Region

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Vodacom Tanzania

Salim Mwalim, External Affairs Manager, Vodacom Tanzania (right) speaks to bank customers in Dar es Salaam recently, when Vodacom conducted an M-Pesa education day

the service that stands out the comfort of their homes. Today we have 40,000 active most is its M-PESA money transfer service. agents and 4.5 million active “This is a total payment M-PESA users, while more than 200 organizations accept solution,” Meza continues, bill payment via M-PESA” “which does not require users to have bank accounts. Given the vast majority’s This was an important inability to meet banking Active M-PESA users in the country today consideration when it comes condition in Tanzania, mobile money transfer is a major to Tanzania as it is home to literally millions of people driver of the sector. A youthful who do not operate bank accounts and can and educated population which is constantly barely meet the minimum qualifications seeking to be at par with the rest of the world to open account. With M-PESA, Vodacom demands services that will enable it to get there. Indeed, Vodacom Tanzania sees itself customers can deposit up to TSH 5m/- for free, send and receive money and withdraw today as being much more than simply a cash from any agent in the country. They mobile phone company, transforming itself can also access their bank accounts from over the years into a total solutions provider.



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Vodacom Tanzania Managing Director, Rene Meza, addresses guests during the launch of LTE trial in Dar es Salaam recently

Kelvin Twissa, Head of Brand receives certificate at 20

“Vodacom customers can meet all of their communication requirements with a single service provider” In an effort to cater for ever growing corporate needs in the country, Vodacom recently established its Vodacom Business division, a leading provider of converged communication solutions that are customercentric, technology-driven, cost-effective, and innovative and generate sustainable value. “Vodacom customers,” Meza says, “can now meet all their communication requirements,

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from mobile telephony through internet access to hosted applications, with a single service provider. Through the division, we are able to offer a comprehensive portfolio of access technologies and data solutions to help organisations of all sizes achieve the agility they need to compete successfully in a connected world. Despite the considerable progress that the

Vodacom Tanzania

d Marketing and Communication, 012’s Employer of the Year Awards

Vodacom Tanzania is opening up customer shops across the country in order to serve its customers effectively

company has made in Tanzania, challenges do still remain. Limited spectrum resources, for example, continues to hinder the implementation of certain technologies that require the use of spectrum in specific bands. This often results in delays in, or failure to, implement innovative services or programmes that are seen as very much needed in order to place Tanzania on par with other countries in terms of technology. Nevertheless, Vodacom Tanzania is buoyed by the fact that the Tanzania Communications Regulatory Authority (TCRA), through various administrative actions, has been able to minimise the impact of this challenge and is continuing in its efforts to optimise the utilisation of spectrum resources.

As he looks to the immediate future, Meza has a pretty good idea of where the industry is heading and the role Vodacom Tanzania has to play. “I believe that we will continue to see a merging of technologies driving market trends and growth, with virtually anything that can be connected, being connected via Vodacom technology. With the distinction between communication services and broadcasting for example becoming increasingly blurred, this is certainly an exciting time for this industry.� For more information about Vodacom Tanzania visit: www.vodacom.co.tz

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written by: Will Daynes research by: James Boyle


the dots

The mobile broadband network that will not only benefit thousands of people in Tanzania, but potentially millions across Africa

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Rural Netco Ltd.

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Rural Netco Ltd.


echnology today moves at such a fast pace that it is easy for us to sometimes take for granted what we have now compared to what we had only a few years ago. Take for instance the fact, in a world where one can download a whole movie in a matter of minutes, that before the first cable modem was introduced in 1997 it would have taken the average computer user over 28 hours to download the same sized file using a dial-up internet connection. As with most new technologies, mobile broadband was initially something of a luxury item, yet within a matter of years prices had stabilised to make it affordable to the masses in developed economies throughout the world. Nevertheless, while people in these economies have grown to accept super-fast internet speeds as the norm, significant work continues to be undertaken to bring this technology to rural, and underserviced, areas and their populations. Rural Netco is a Tanzanian based communications company, working to implement a high speed mobile broadband access network, on which the other mobile operators in the country can connect in order to provide and affordable end-to-end service in areas that thus far have not been covered by such service. The Rural Netco business model can be best described with the word “wholesaler�. This is because the company is only selling the capacity of its network to the other mobile operators who will be responsible for providing the service to their customers as they do today. This is a new business model, which in all likelihood will go on to attract considerable

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demand from other African countries looking to enable future ICT development in rural and underserviced areas. “While such a concept does exist in several developed nations across the world,” explains managing director, Frode Dyrdal, “the idea of a shared broadband network represents a completely new way of doing business in Africa, and one that has taken a great amount of time and effort to conceive and establish. It is through this hard work and commitment that we are now in a position where we believe we have a business model and a solution that will enable operators to extend the reach of their internet offering much further than had previously been possible on a purely commercial basis.” This hard work has allowed Rural Netco to successfully negotiate the regulatory environment of Tanzania. “From the authority’s point of view,” states chairman, Pekka Kokko, “this is truly a fantastic concept in the sense that by utilising shared infrastructure it will reduce the cost base, both in terms of capital expenditure and operational cost, encountered by the operators and provide them with a more efficient way of doing business. From an operator’s perspective, it will allow them to refocus more of their efforts on their core business

which is providing added value services to their customers, instead of building and managing their own infrastructure in the underserviced areas. This concept is also environmentally friendly because by sharing and/or re-using towers the impact on the environment is significantly reduced.” In bringing this concept to life the company has received a great deal of assistance and support from the Tanzania Communications

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Rural Netco Ltd.

Reg ulator y Aut hor it y Vodacom, the largest in the country. Rural Netco is very (TCRA). “TCRA has been satisfied with the current very forward looking by strongly supporting the idea volume of traffic that is of sharing for many years passing through the network Regions in rural Tanzania and the management of the now,” Kokko says, “and we that Rural Netco now are proud that we are able to company is confident that provides coverage to business continues to develop help bring it to fruition.” Kokko is equally keen to well. Since the plan is for this praise the assistance provided to be a shared network the by Ericsson. “They are very much the know- company is now embarking on a mission to how partner, in that they initially conceived get other operators on board. Negotiations the concept and supplied the technology that are currently at an advanced stage to the makes the network possible. Their assistance extent that the company has been carrying throughout our existence has been nothing out a series of interconnection tests while also short of invaluable.” discussing various commercial agreements. Thus far the company has launched “From a technical point of view,” Dyrdal commercially with one operator, that being continues, “what we are focusing on is


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Rural Netco Ltd. providing consistently high quality broadband coverage in order to create the best possible end user experience. By utilising shared, existing infrastructure between operators we hope to provide coverage to people based in locations where it would previously have been unobtainable or uneconomical. That is the core objective of our work, generating greater levels of service that what currently exists in these rural or underserviced areas.” The short-term target for Rural Netco, particularly over the course of the next 12 months, is to roll out, and in some cases tighten up, its shared broadband network concept throughout the regions of Tanzania in which it is present. In doing so it aims to double its network in terms of size in order to provide more service opportunities for the operators, which will inevitably result in greater broadband access to subscribers. “Rather than being exclusively tailored for use within Tanzania,” Kokko concludes, “we view this as being very much a universally applicable concept and one that will hopefully go on to fit into a number of different countries throughout Africa that possess similar geographical and demographic features, or indeed shortcomings that need to be remedied. It is an idea that has continued to meet our initial goals and that means having the ability to save everybody money in the long run and ultimately provide cheaper internet access, and more value added services, to the masses.” For more information about Rural Netco Ltd. visit: www.ruralNetco.com

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Changing the for better Director General of ZICTA, Margaret K ChalweMudenda discusses the role the Authority has played during this exciting period of change

written by: Will Daynes research by: David Brogan

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t was in 1994 that the Telecommunications Act gave rise to what was at the time dubbed the Communications Authority of Zambia. While it was mandated to regulate and monitor almost every aspect of the country’s telecommunication sector, the Authority was somewhat hampered by the restrictiveness of the Telecommunications Act, which did not give it the power to regulate competition amongst telecoms operators, provide cyber security regulations or even regulate the postal sector. This situation would remain the same until 2009, when the passing of three Acts, the Postal Services, the Electronic Communications and Transactions (ECT) and the Information and Communications Technologies (ICT) Act numbers 22, 21 and 15 of 2009 respectively, brought about monumental changes to the sector as whole. The events of 2009 also saw the Communications Authority of Zambia renamed the Zambia Information and Communications Technology Authority (ZICTA). “The fundamental idea behind the passing of the three Acts in 2009, and the rebranding of ZICTA,” explains Director General, Margaret K Chalwe-Mudenda, “was to broaden the Authority’s scope of work to encompass all elements of ICT, ECT and the postal sector.” Today, ZICTA’s strategic goals include promoting competition within the market, being the catalyst for delivering universal access, being the source of protection for consumers, ensuring that operators, and the nation at large, efficiently manage scarce resources and that ZICTA itself

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Realtime Zambia pioneered national point to point fibre connectivity and has consequently become the preferred optic fibre communications provider for financial and other corporate entities in Zambia.

Plot 1234 Kalembwe Close (Off Great East Road) / Rhodespark P.O.Box 38688 / Lusaka, Zambia Tel: +260-211-255037/8 Fax: +260-211-254202 www.realtime.co.zm


Zambia’s internet penetration is in a stage of steady growth

continues to enhance its developments that mean that as of today the country own capacity to deliver what it is mandated to do. has three mobile operators, “As a result of the Acts that one fixed-line service were passed in 2009, and the provide and approximately Mobile penetration subsequent efforts that have 18 registered Internet Service rate in Zambia been made by those within Providers (ISP’s) operating ZICTA,” Chalwe-Mudenda within its borders. continues, “what we are “Our most recent mobile in 2013 is a more empowered body that data,” Chalwe-Mudenda states, “suggest possesses greater powers to regulate the that there are over ten million registered sector, to penalise and prosecute those that SIM cards today in Zambia, a figure which abuse their positions and monopoly power, we believe equates to a mobile penetration and to negotiate, mentor and arbitrate.” rate of around 55 percent in a country of When the Authority began life back in almost 13.5 million people. Nevertheless, 1994, it is estimated that there were less than with internet penetration still as low as 100,000 mobile and telephone subscribers two percent, the country is clearly still very present in Zambia. The near two decades that much in a phase of gradual growth.” followed have played host to a myriad of major One of ZICTA’s most important undertakings


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came in 2010 when it released an extensive Cost of Service Study, the results of which brought about a landmark shift in how tariffs were regulated in Zambia. “In the lead up to 2010,” Chalwe-Mudenda says, “we brought in an independent consultant to conduct a highly detailed study focusing on the tariff rates that operators were charging consumers for voice services for the telecommunications market as a whole.” What this consultant found was a clear trend that saw operators setting prices at a much higher rate than they could rightly justify. “Based on the results we received,” Chalwe-Mudenda reveals, “we were able to use the powers we have as set in law to introduce a proposed range of pricing options for the operators, while also installing a price cap which no tariff can exceed.” The result of these actions soon became clear, with the cost of making a call dropping dramatically. This in turn meant that owning a cell-phone was no longer seen as a luxury afforded only by the privileged few. Perhaps just as importantly it also helped spur real competition in the marketplace with rival operators battling to offer the cheapest call rates and the most attractive promotions to entice subscribers. In addition to discussing the work of

ZICTA, Chalwe-Mudenda also takes the time to highlight the importance of the Authority’s membership status with The Communications Regulators’ Association of Southern Africa (CRASA). “The creation of CRASA really helped us as regulators by giving us a forum in which we could come together and share common experiences and resolve issues such as cross border roaming. We see CRASA as being a neat family of industry bodies

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A farmer on the phone

Satellite dish in a remote village

who are working to remove on is developing a scenario the barriers between where the ICT industry can reach a point where it is one countries and make things of the top contributors to this better for the region as a whole from a communications country’s GDP and a leading perspective.” source of employment, To a great many people, technological progress and Registered SIM cards innovation. While there will Africa represents the next today in Zambia always be things that we can’t frontier for business and predict, I can personally see economic prosperity and a lot of progress being made this is a statement that Chalwe-Mudenda very much agrees with. here and it makes me excited that there are “The continent of Africa to this day retains a lots of good things to come in the future.” great deal of unexploited value and potential, potential that we can capitalise on if we all For more information about work together to ensure that no sector or ZICTA visit: regulator is left behind. When it comes to www.zicta.zm Zambia specifically, what we are working



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Change is in the air

Malichaba Lekhoaba explains how Harvest FM has helped achieve social freedom by exposing corruption, forging a strong working relationship with the incoming government and fighting for local communities

written by: gay sutton research by: james boyle

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Harvest FM

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Malichaba Lekhoaba broadcasting to the nation

Harvest FM


arvest FM has been broadcasting understanding that not only would the topical to the citizens of Lesotho content attract increased advertising revenue since May 2003. Registered in but that the station could have an important November 2002 as a charity by role to play in bringing political and social the current station manager issues to the public, and informing them. Malichaba Lekhoaba, Harvest broadcasts It was a brave move, and one that has had 24 hours a day producing a mixture of a formative effect on the country’s political spiritual and current affairs programmes landscape. At the time, Lesotho was going that rigorously tackle the nation’s leading through a period of what Lekhoaba describes social and political issues. Since 2007 as political instability. “We had really hard Harvest has earned international respect talk on some of these programmes, much of for its courage in daring to highlight and it about political corruption,” she explained. eradicate corruption in all its forms, and has As a result of this new content the received the prestigious PMR Africa award listenership increased dramatically and for best radio station three advertising revenue rose years running. correspondingly, but the “We have based the radio relationship with Government station on Christian principles,” and the national regulator, Lekhoaba explained, “and our Lesotho Communications Authority (LCA), deteriorated vision for Harvest is to inform Year Harvest FM people about the Christian rapidly. “The ruling party at began broadcasting that time was not comfortable faith, and their rights as citizens of this country.” with what we said about The station currently employs 19 salaried them, and they complained to the LCA.” staff, a mixture of journalists, presenters and The station was repeatedly shut down for a administrative workers. However, the road to few days in 2007, and then in 2008 Harvest such stability and success has not been easy. was suspended for a 12 month period. It was “We have been through some very difficult a catastrophic event. Advertising revenue, periods,” Lekhoaba continued. Launching the the station’s only source of income, ceased station was a triumph of determination and abruptly. Staff had to be sent home without dedication in itself. With no funding to cover pay. However the suspension was reduced expenses, she had to rely on the services of to 3 months on the understanding that the a group of volunteers to run the station, and station would not commit similar ‘offences’ worked to build up a portfolio of advertisers within the 12 month period. “Effectively we were closed for three to cover running costs. In 2007, following a review of the station’s months and during that time we lost our financial performance, she began to introduce listeners and advertisers. But that didn’t stop a series of current affairs programmes, us,” Lekhoaba asserted. “When we came


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back on air we worked very hard to win back our listenership and our advertisers, and we made it through.” Between 2009 and early this year Harvest has had a difficult tightrope to walk, bringing out programmes that highlighted and discussed important social and political issues, and yet did so in such a way that did not incur suspension. The station’s editorial policy demands that all stories are balanced, and yet there was such a climate of fear that the public were afraid to express opinions about Government, and the ruling party refused to provide information to journalists or the public. Throughout this period the Government consistently refused permission for Harvest

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to place its transmitters in the national network of transmission towers and as a result the programmes only reached people in the capital and a few outlying areas. However, the impact of those hard hitting programmes has been enormous. In the general election in early 2012 the old government was overturned. “And it was in the capital, where people were informed about the corruption, that the ruling party lost the election,” she said. In the regions – outside Harvest’s transmission footprint the ruling party continued to receive high numbers of votes. Today, the old regime has been replaced by a new one that is not only more media savvy but is running the country differently. Much

Harvest FM

“Today, the old regime has been replaced by a new one that is not only more media savvy but is running the country differently” has changed for Harvest. “We are able to talk freely about Government officials, and when we find evidence of corruption their doors are open for discussion,” Lekhoaba said. A great example of this is Harvest’s outreach programme, where journalists and presenters meet with communities and interview the public on local issues. “We tried this under the previous Government but people were too scared to talk. Now they are free to say what they want. And in many cases Government officials listen to the programme, respond on air and take action.” The relationship with LCA, which is no longer under political pressure to restrain Harvest, has also improved dramatically and is now fair and positive. “We do get complaints,” Lekhoaba admitted, although this is bound to happen with any media organisation that sets out to challenge the standards and performance of those in power. “But the complaints no longer come from LCA, they come through lawyers.” One of Harvest’s big challenges now is to extend its transmission footprint across the entire country, and it is currently in talks with Government to use the national transmission network. Lekhoaba also aims to establish an independent Harvest TV station and is in the process of applying for a licence.

The organisation continues to be run as a charity and all profits are reinvested into the community. Harvest has a range of ongoing community support programmes including sponsoring vulnerable children and orphans through high school. The latest community campaign has been to examine the management and financing of orphanages, to root out corruption and the misuse of funds. “We don’t want government to close these homes,” she pointed out. “We want to encourage them to run the homes properly and fairly. At the moment, it’s the children who are suffering.” Much has changed this year for Harvest. Journalists can now do their job freely, the relationship with Government and LCA is very good, and the station is no longer under threat. But Lekhoaba is aware that with this freedom comes great responsibility. “Now we have the freedom, we must ensure that we are always improving the way we work. We must continue doing our job without favour, and support the people of this country according to our Christian principles.” For more information about Harvest FM contact: mlekhoaba@harvestfm.co.ls

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Torresol Energy was established with the aim of becomin in the Concentrated Solar Power (CSP) sector and its mi the technological development of large CSP plants aroun

written by: john O’Hanlon research by: Louisa Adcock

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Torresol Energy - Gemasolar


ng a world leader ission is to promote nd the world

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The tower reflected in a heliostat

Torresol Energy - Gemasolar


olar power is a great idea, but it is no good at night or when the sun does not shine – right? Wrong! In southern Spain there’s now a solar power plant that can run constantly. We are used to seeing solar panels on houses and in solar arrays. These work by converting sunlight directly into electricity using photoelectric cells, but Torresol Energy was formed to introduce and test new technologies that make concentrated solar energy an economically competitive option and a real, viable, ecological and sustainable alternative to traditional energy sources. Conserving the environment for future generations is one of Torresol Energy’s main commitments. Gemasolar is an innovative 19.9 MW CSP plant, the first commercial experience in the world using molten salt thermal storage in a central tower configuration. The plant is located in Fuentes de Andalucía, Seville, and started commercial operations in May 2011. The plant consists of a 140 metre high solar power tower that derives its energy from an array of 2,650 heliostats, or mirrors circled around it, reflecting the sun’s rays onto the molten salt core. Spain has acquired global technology leadership in the field of solar energy over the last few decades. The work of SENER, which owns 60 percent of Torresol Energy, started in the 1980s. The firm focused on finding technology for large scale cost-efficient innovations for power generation, and by 2005 it was ready to undertake the design, manufacturing, installation, testing and validation of a CSP receiver prototype in collaboration with the

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TORRESOL ENERGY Torresol Energy - Gemasolar Torresol Energy feature government research and Lorem ipsum dolor sit amet, text....Lorem ipsum dolor sit consectetur adipisicing elit, innovation organisation amet, consectetur adipisicing CIEMAT. At the same time it sed do eiusmod tempor elit, sed on do the eiusmod incididunt ut labore et dolore worked designtempor of the incididunt ut labore et magna aliqua. Ut enim ad 120 square metre heliostats, minim veniam, quis nostrud doloreorientation magna aliqua. Ut their mechanism enimheliostats ad minim track veniam, exercitation ullamco laboris (the in quis two nisi ut aliquip ex ea commodo nostrud exercitation axes – each has twoullamco motors laboris nisiinut aliquipthat ex consequat. Duis aute irure with a built controller ea commodo consequat. dolor in reprehenderit in recalculates and readjusts the position every fourdolor seconds Duis aute irure in voluptate velit esse cillum using SENSOL software) and This is a caption this is a caption Valle 1 anddolore Valle 2, Torresol’s earlier projects reprehenderit in voluptate eu fugiat nulla the storage system. velitmolten esse salt cillum dolore eu pariatur. Excepteur sint fugiat pariatur. occaecat occaecat Twonulla years later Excepteur with the sint technology with Masdar was formed, and construction cupidatat non proident, sunt in cupidatat non proident, sunt in to culpa qui culpa thoroughly tested SENER decided proceed startedqui theofficia following year. mollit The plant deserunt animhas id officiaGemasolar. deserunt mollit id est laborum. with The anim Torresol Energy JV est beenlaborum. operational since Maydolor 2011.sitItsamet, first Lorem ipsum

TECNICAS DEL CABLE S.A. Técnicas del Cable are experts in the production of specialized cable for specific markets including the chemical industry, refineries, the Aeolian parks, power stations and railroad networks. Today we are capable of making practically every form of cable and can do so based around the specifications given to us by our clients or by following national and international norms. Thanks to the incorporation of new machine and the development of new products, Técnicas del Cable can respond to almost any request from its clients. Employing more than 40 people at its 25,000m2 facility, Técnicas del Cable is capable of providing services to the whole of the European Union. While it has a particularly strong presence in Portugal, France, Italy and Belgium, almost 70 percent of its total output is installed and sold

in Spain through a team of installers, engineers and mounters who are experts in the electrical sector. The company’s philosophy is based on offering its clients the perfect conjugation of quality, downtime and price. In 1989, the company obtained ISO quality certification and ever since it has managed to fulfill its three core objectives, while remaining on a path of continuous improvement throughout all areas of the business. Looking to the future the company aims to maintain its strategy of investment in equipment and technology. In the short-term it will also continue to renovate its operations, incorporating new production lines as it looks to offer a greater range of products. E. info@tecnicable.com www.tecnicable.com

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19.9 mw Capacity of the power plant

Tower and heliostats

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year of operation exceeded all expectations. It supplied more than 100 GWh of power provided to the grid. So what are the advantages of this unique plant, the first CSP unit in the world to include a molten salt thermal storage system? “Apart from opening the way to a new generation of solar power technology,” says Álvaro Lorente, General Manager of Torresol Energy. “The most obvious advantage is that it supplies continuous power in a flexible way. That is to say, the turbine can operate without stopping overnight or if there is a cloud. That prolongs the life of the turbine, and in addition we can manage its output according to demand according to peaks and troughs.” There are a host of other advantages, he enthuses. “Its very simplicity makes it a low risk operation. The fluid is concentrated in a small area, reducing thermal loss and keeping maintenance costs low, and the same fluid is used for both heat transfer and storage, resulting in less thermal exchange. Additionally the molten salts reach extremely high temperatures, which maximises thermodynamic efficiency.” Gemasolar’s 19.9 MW turbine is a strategically capable installation, he says, able to supply electricity to 27,500 households. “Eventually the plant

Torresol Energy - Gemasolar

The plant has the ability to provide a higher annual capacity factor than most baseload plants such as nuclear power plants

will be able to supply 24 hours of uninterrupted production per day on most summer days, providing a higher annual capacity factor than most baseload plants such as nuclear power plants. In this way, the reliability of solar energy becomes comparable to that of conventional fossil-fuel power plants, a decisive factor as the demand for renewable energy increases.” However another vital element for the Torresol partners is the amount of local input they have been able to achieve, says

Lorente. “Since the company was created in 2008 we’ve had a solid commitment to creating a network of local and national suppliers in order to generate wealth around the facilities. In all the installations we have done we have boosted local employment, with about 80 percent of supplies and 70 percent of the talent coming from local sources.” As befits an alternative energy enterprise, both Gemasolar and Torresol O&M were recently awarded ISO 14001 certification for environmental management and OHSAS

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IMECA Solutions and Services offers itself as the best

Phone: +34 949 208 917 | Fax : + 34 949 208 919 e-mail: imeca@imeca.net ISO 9001 & 14001

solution, in quality and commitment, to perform all services available for the energy industry. We are specialists in the renewable energy sector for the design and manufacture of fasteners and anchor bolts, both conventional and for metal structures. We provide our expertise to the energy industry (wind, solar thermal, photovoltaic, combined cycle ...), as well as to the railway, marine and petrochemical industries. IMECA Solutions and Services offers: • Anchor bolts. • Plates, nuts and washers. • Screws: conventional, special and for metal frames. • Special parts manufactured off-plan.

Torresol Energy - Gemasolar 18001 certification for EMbaffle B.V. workplace health and safety. EMbaffle B.V. is a dynamic technology company with Masdar is keen to be able broad operational knowledge across the Solar Power, to bring these principles as Oil & Gas Up- and Downstream and Petrochemical well as the technologies to the industries. We offer advanced heat transfer solutions Middle East. North Africa has based on our proprietary technology supported by sound plenty of sun, so has Chile for operational data.  Our solutions provide significant added value to projects including capital and operating example. However with the cost enhancement as well as reductions in energy former being a desert and the consumption and CO2 emissions. latter subject to earthquakes, In the Concentrated Solar Power sector our technology has the technology will need proven itself as for the last seven CSP projects in Spain to be refined to suit local equipped with Thermal Storage possibilities all clients have conditions. Torresol Energy is chosen for EMbaffle Technology. studying weather conditions A Major Advance in Heat Transfer Technology. www.embaffle.com and working with a number of governments and entities around the world to increase its understanding of how local content, local talent and local supply chains can be optimised to bring the benefits of solar power where it is most needed. Solar thermal technology is a relatively new industry, hungry for investment at this early stage of development, says Álvaro Lorente, but with the ability to cut unit costs to a fraction of current levels as it supplants fossil fuels. Cost reduction can be achieved using different ‘levers’, he explains. “We can utilise R&D to gain economies of scale, for example constructing larger plants Heliostat field at dusk

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A heliostat rotates to capture the sun’s rays

Torresol Energy - Gemasolar

80% Local supplier content at Gemasolar and developing the specific learning curve from each solar thermal technology. As the industry matures a supplier base will grow up and standardisation of components will cut costs further. At Torresol Energy we have a solar development programme: a number of central complexes will be built simultaneously with the twin objectives of creating a supplier industry and improving plant efficiency.� Really, research is the key. Torresol Energy’s current projects include; cloud location in collaboration with the University of Almeria; prediction of solar radiation in partnership with the Spanish Centre for Renewable Energies CENER; product development to improve reflectivity levels on the heliostat field, with Tekniker; and software optimisation to improve plant efficiency. A parabolic trough plant operation simulator will help training of operators on sites that use that technology, while mathematical models are being developed to accurately predict wind conditions. All these share the twin objectives of production growth and cost reduction in operation and maintenance. For more information about Torresol Energy - Gemasolar visit: www.torresolenergy.com

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a nation

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Franchise Association of South Africa (FASA)

Derek Smith, Chairman of the Franchise Association of South Africa (FASA), discusses the important role franchising has to play in the on-going development of the country’s economy

written by: Will Daynes research by: Candice Nice

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Derek Smith, Chairman of FASA

Franchise Association of South Africa (FASA)


ranchising itself in South Africa Some things do still require fine tuning continues to prove to be very however, with South Africa’s government resilient,” states the Chairman finding itself somewhat lacking at present of the Franchise Association of when it comes to having the capability to South Africa (FASA), Derek Smith. enforce all aspects of the new Act. In response “Analysis conducted by Bendita Gordon of to this it has begun the process of establishing Franchise Directors showed that between an alternative dispute resolution arm of the 2008 and 2010 in the aftermath of the global commission to which it can subcontract recession hitting the country showed that, disputes to be resolved. This is something while the rest of the economy lost well over that FASA is very keen to pursue and it is one million jobs, franchising actually created currently putting an industry code together 25,000 new opportunities for people.” in order to apply for that responsibility. Having held the position of Chairman Elect “If this is ultimately approved,” Smith for much of 2012, Smith is barely a month explains, “FASA would be able to provide into his new role as Chairman the National Consumer of FASA, however he has Commission with an arm unquestionably taken on the capable of adjudging any job at a very important and dispute within the franchising exciting time for franchising industry. We are hoping that we will get accreditation in South Africa. New jobs created by “A number of major within the next 12 months, franchises between developments have occurred at which point we would 2008 and 2010 in the last 24 months,” Smith be in a position to mediate continues, “the first being and arbitrate on industry the finalisation of the Consumer Protection disputes, help determine whether someone Act, which has now become law. Getting to is able to call themselves a franchise or not this point was a long process, and included and ultimately assist in pulling the industry a lot of work on our part to ensure that into line a bit more.” One of the highest priorities for South franchising was treated separately within the confines of the Act.” Africa’s government, like in many countries What this means today is that franchising across the world, is job creation. One of the in South Africa now carries with it specific ways they hope to achieve this is through definitions that a business needs to meet in the creation of the Jobs Fund, a R9 billion order to be deemed a franchise, something fund allocated by the Department of Finance that didn’t previously exist in the country. and administered by the Development Bank Having the technical definition in place of South Africa. “Due to the nature of South Africa’s is seen as only being a good thing for consumers in the long run. economy,” Smith says, “and the number of


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unskilled, unemployed people we have here, it is our belief that franchising presents a great opportunity when it comes to job creation. Mentorship is almost an inherent part of building a franchise, with businesses taking people in, training them and putting a network around them that encourages individual growth.” In 2012, Smith himself was placed in charge of getting the Jobs Fund to recognise franchising as a specific method of job creation. His efforts were rewarded in February 2013 with the approval of FASA’s first pilot project, while a second project is currently in the final stages of gaining approval.

Curves Africa is a member of FASA

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“Although we do refer to these as pilot projects,” Smith highlights,” if you put them into perspective, we are taking about funding up to 1,000 new jobs. While in contrast to the overall problem this may seem a small number, we see it as a starting point for what is yet to come, and that is a situation where the franchising industry plays a crucial part in solving the country’s unemployment problems.” In addition to its work with the Jobs Fund, FASA is also working alongside the Department of Trade and Industries on several initiatives, one being supporting the growth of black businesses. “A serious imbalance

Franchise Association of South Africa (FASA)

“Much of the work FASA is doing is about addressing the empowerment of people that are feeling un-empowered at this time” exists today between white and black business ownership,” Smith says, “and this is something that we realise needs addressing. What we want to do help more people to start smaller or medium sized enterprises in order to become self-sustainable in the future.” Much like the majority of the work FASA is doing, this is about addressing the empowerment of people that are feeling un-empowered at this time, trying to address job creation, to get stability back into society because of the high unemployment rates, and encourage the transfer of skills, which is a natural part of franchising. Another area of interest for FASA is the growing number of examples of what it calls social franchising, where the franchising concept is beginning to roll out into other parts of South Africa’s infrastructure such as the health care sector. This is a trend that FASA expects to see far greater movement towards in the not-too-distant future. Having spent the better part of ten years as part of FASA’s executive committee, Smith has first-hand knowledge of what its strengths, and indeed its weaknesses, are. It is this knowledge that has helped shape his vision for what he hopes to achieve during his tenure as Chairman. “We have made great strides in recent times when it comes

to improving our relevance to government,” he enthuses. “In addition, we have played our part in addressing the need to create jobs and have put our case forward as to how franchising can help achieve this.” Smith is under no illusions that this is a hugely important period of time for franchising in South Africa and as such he has set some fairly hard, yet realistic targets for the months ahead. Among these targets is getting FASA officially recognised as the alternative dispute resolution arm of the Consumer Protection Act, expanding its Jobs Fund project strategy further and getting FASA recognised throughout the country as a professional body. “What each of these main objectives have in common,” Smith concludes, “is that they all aim to achieve the same things, those being the creation of new jobs in South Africa, the successful transferring of skills to people and making more people realise that franchising can play a significant role in helping to determine the future prosperity of this country.” For more information about Franchise Association of South Africa (FASA) visit: www.fasa.co.za

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Ahead of the curve From the day its first Franchise opened in South Africa, Curves Africa has gone from strength to strength. Master Franchisee senior representative, Clive Robinson, discusses the reasons behind this success and what the future holds for the brand

written by: Will Daynes research by: Candice Nice

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Curves Africa

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Coaching is part of the Curves complete program

Curves Africa


t was in 2006,” explains Clive Robinson, “that Curves first came to South Africa with a mission to launch the brand amongst the female population as an alternative to existing gyms and weight loss programmes. In 2007, the first Curves opened in Pietermaritzburg and within three years it had expanded to more than 100 franchises across the country, and ten franchises outside the borders of South Africa.” The growth in the first three years of what was the first woman’s only exercise provider was nothing short of phenomenal and led to Curves Africa immediately embarking on a strategy to create a vast network of gyms across South Africa, targeting the core middle-aged female market. In doing so successfully, the company went from zero to 35,000 members within its first three years. “Long before entering South Africa,” Robinson continues, “Curves was already a tried and tested global entity, present in more than 80 markets with over 10,000 outlets throughout the world. What this allowed us to do is take a proven business model and replicate it, with very few adjustments required, in a country where the market had been crying out for an alternative.” Curves Africa today remains the largest fitness business in South Africa by number of outlets, a fact that Robinson and other franchisees attribute to the several core pillars that Curves has built itself around. The first of these is the original, exercise-focused 30-minute workout programme that the company launched upon entering the country. While still a favourite amongst the vast majority of Curves Africa’s members, recent

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2007 The year the first Curves branch opened in South Africa

years have given rise to a mind-set in society that revolves much more around the concept of instant gratification. This in turn has resulted in the appearance of fresh market competition in the form of quick-fix instant weight loss and diet programmes. In response to this, Curves Africa decided to introduce an eating plan to run alongside its 30-minute workout programme. “Through a programmes called Curves Complete,” Robinson enthuses, “what we have done is combine the core elements of our exercise plan with a meal plan that can be personalised and individually tailored to suit each member’s own objectives, and is delivered through one platform, that being the member’s local Curves branch and the Curves Complete web site. In doing so we have opened up a whole new market for ourselves by attracting not only members who want to be fit and healthy, but also those who want to lose weight.” Another pillar of Curves Africa’s success is its commitment to providing the motivation that its members require in order to stick to their own programmes. To achieve this Curves Africa has adopted a philosophy that really holds its members accountable through the work of a trained Curves Complete Coach,

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who meets with members on a weekly basis to provide the motivation needed for those individuals to stick to their respective programmes. When combined, these three pillars allow for the providing of a complete exercise and weight loss programme, delivered under one roof. “Curves,” Robinson highlights, “was developed primarily to be a community based business, positioned at the forefront of women’s health issues, driving home the positive benefits of its 30-minute workout and

how its use can combat certain health issues.” However, as Robinson goes on to state, that is not the only reason for its success. “I think what makes the brand so different is the fact that we recognise that not every woman in the world who goes to a gym is doing so because they wish to look like a supermodel. On the contrary, the vast majority actually most want to be healthy within the body that they are in. That is the very essence of what Curves is all about and why it has been so well received in all of the markets in which

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“Africa is very much where the focus of Curves as a brand will be centred over the next decade�

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Curves Africa it has entered.” Over the last couple of years, under Robinson’s leadership, the primary focus of the company has been to ensure that existing Curves Africa franchisees have remained happy, profitable and able to deliver on their propositions properly. While it has made a concentred effort not to have a situation where there is a Curves branch on every street corner, this by no means is to say that further expansion is not on the horizon. “If you take a look at the statistics surrounding obesity, specifically when it comes to women in Africa,” Robinson says, “there is no doubt that in the years to come there will be an even greater focus from all sorts of brands to come up with solutions and programmes designed to address related health concerns. While we fully expect activity to increase in our market sector, we believe that the key to our continued prosperity will be to retain the community-based atmosphere that Curves has become synonymous with. We believe that weight loss and exercise should not be impersonal things, and as such we will continue to promote the fact that we build relationships with all of our members. This allows these individuals to embark on one of our programmes and ultimately come up better educated and informed about how to manage their own health.” Africa is very much where the focus of

Curves as a brand will be centred over the next decade. “The excellent growth of our business, not only in South Africa but also in countries such as Nigeria, Kenya and Zambia, gives us great belief that there are many growth opportunities for Curves all across the continent,” Robinson concludes. “Rather than rushing in, we will do what we have done in the past and that is lay the right amount of ground work and identify the right people to work with, however I don’t believe it is inconceivable that within the next five years or so we will have helped make Africa the leading market in the field of women’s health.” For more information about Curves Africa visit: www.curvesafrica.com

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Pioneering geophysical services Introducing a quiet revolution in subsurface exploration


he Adrok scanner uses electromagnetic technology to help identify and map minerals up to a depth of 4KM. These virtual boreholes are deeper, cleaner, faster, more accurate and more cost effective than traditional seismic methods. Anytime. Anyplace. Anywhere. The Adrok scanner is the ultimate

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in portability – readings can be taken on automobiles, planes or boats, on mountains or in desert. There are no limits. Our game-changing technology sends a narrow light beam of energy in to the ground using micro and radio waves. We call it Atomic Dielectric Resonance, or ADR. The beam reflected back has a unique code that helps positively identifies and maps any mineral in the ground. Adrok offers geophysical survey services, usually for a pre-agreed fixedprice during our client’s Exploration and/or Appraisal activities as a complementary survey to Seismic or as a cost-effective alternative. We


typically aim to save our clients up to 90% of the cost of physically drilling the ground using a borehole. We have an excellent team of expert geologists and technicians based at our HQ in Edinburgh, UK analysing the data we obtain in the field and providing customers with measurements of subsurface natural resources, rock types and rock sequences before drilling. We also have bases in Houston, Texax and Perth, Australia to ensure we can service our global clients in the best way possible. We challenge the old ways. We believe we are better. We know we are the future.

Adrok (Head Office) 49-1 West Bowling Green Street Edinburgh EH6 5NX Gordon Stove, MD T +44 131 555 6662 gstove@adrokgroup.com Adrok (North America) 2500 CityWest Blvd, Suite 300 Houston, Texas 77042-3033 Stuart Goldstein, VP for Business Development North America sgoldstein@adrokgroup.com T +1-713-267-2283 | M +1-713-816-1415 www.adrokgroup.com

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PROUDLY SOUTH AFRICAN BULK HANDLING - ARLONA ENGINEERING LEADS THE WAY South African ports are without question the best equipped in Africa. Local harbours utilise the latest technologies and have invested in state of the art equipment to ensure high efficiencies, reduced maintenance requirements and optimum safety


is in this highly competitive sector that Arlona Engineering (Pty) Ltd has earned an enviable reputation for innovation, quality and reliability, competing favourably with the world’s leading manufacturers of bulk handling equipment. Since its inception in Durban in 1966, Arlona Engineering, specialists in fabrication, machining, proofloading and maintenance of bulk handling

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and stevedoring equipment, has made a significant contribution to the efficiency of South African ports. “The company’s success can be attributed to a thorough understanding of this environment - known for its arduous operating conditions – a close working relationship with South Africa’s leading stevedores, as well as a commitment from the Arlona team to design and manufacture equipment to meet the exact needs of every customer,” says Steve Christy, managing director of Arlona Engineering. “The company’s fully computerised fabrication facility is equipped to design and manufacture grabs, hoppers, container spreaders and lifting equipment, as well as a wide range of cargo handling equipment – all to exact specifications.” The machining division, which

Arlona Engineering offers general engineering services, also manufactures any type or size of twist locks, which are then proofloaded for optimum quality controls. There is also a demand for the fabrication of lifting equipment replacement parts which meet the specifications of original equipment manufacturers. Arlona’s proofloading division, equipped with a test rig that is certified to proofload up to 100 tons, is geared to test and certify any lifting equipment. The company, which is accredited by the Department of Labour as a testing station, also offers a load testing service to general industry to ensure that all lifting equipment complies with the Occupational Health and Safety Act requirements. All refurbishing and testing procedures meet international shipping standards, including Bereau Veritas, Lloyds Register, ABS and SABS. An important part of Arlona’s engineering repair operation is a 24 hour maintenance and technical support service to harbour infrastructure and shipping, where a highly experienced team attends to any breakdown on hoppers, grabs and conveyors. The company also offers the shipping sector a customised maintenance service to ensure optimum condition and efficient operating performance

of cargo handling equipment. A structured maintenance plan enhances operator safety, extends the service life of machinery, minimises downtime and reduces operating costs. Arlona Engineering utilises the latest technologies, state of the art equipment and quality materials to ensure high efficiencies, reduced maintenance requirements and the optimum safety of its extensive range of bulk handling equipment. Arlona engineering Corner Clydebank & Hamburg Roads Bayhead, Durban T (+27) 31 205 5991 www.arlona.co.za

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training the next generation From exploration to resource modelling, optimization, mine design, scheduling and financial modelling, our cutting edge software solutions enable users to rapidly generate robust scenarios in a secure governance framework


AE Mining provides a consulting team includes over 120 compelling one-stop- experienced geologists and mining shop for the technology engineers, servicing client needs such and services required as managing exploration drilling to seamlessly plan programs, mining studies, resource and manage modern mining evaluation, on-site technical services operations. With operations in and business improvement projects. Our C A E Terra twelve countries, CAE mining equipment Mining offers solutions simulators, developed for mine planning, and launc hed in mine operations and operator training. fiscal 2012, leverage Number of countries Our mine planning our experience in in which CAE and operations simulation to provide have customers products are used for an unrivalled level of realism. Our simulators managing exploration and geological data, mine strategy, are integrated with a comprehensive optimization, detailed design and student management system, lesson scheduling, fleet dispatch and remote planning tools and interactive management for all mining methods touch panel instructor station. Our and commodities. Complementing training services include workforce this technology, our technical development planning, training needs


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CAE Mining

analysis, professional development in technical disciplines and the design and implementation of operator training curriculum. Our operator training courseware is designed for multiple delivery modes including self-paced e-learning, instructorled classroom training, procedural training and scenarios delivered in our high fidelity simulators. We have customers in over 90 countries that are supported by our offices in Australia, Brazil, Canada, Chile, Columbia, India, Kazakhstan, Mexico, Peru, South Africa, the U.S.

and the U.K. We provide products and services for open pit and underground operations to mining organizations, from large diversified miners to junior miners and consultancies.

CAE Mining 3200 Guenette Saint-Laurent, Quebec H4S 2G5 Canada T +1 514 341 2000 E caemining@cae.com www.cae.com/mining

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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 •

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Profile for Business Excellence Magazine


April 2013


April 2013


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