All Aboard (4th Q - 2013)

ALL Aboard Fourth Quarter 2013 I Ethics Line: 0800 205 280

AEL Kids Explore Johannesburg Zoo AEL’s Inaugural Blasting Masterclass showcases how AEL adds value for its customers

AEL Supports Breast Cancer Awareness Month

Wealth Unearthed Printed on 100% eco friendly paper

Entrenching Quality The AEL Way ISAP hosts its first SHE Representative Awards Ceremony

Editor’s Note

The New Exco Structure Dear Colleagues As we reflect on 2013, let us celebrate our successes!

We have proven that as the AEL family we possess the tenacity and drive to rise above any circumstance and emerge victorious. It’s now time to focus our energy on achieving new milestones in 2014.

Eubulus Pillay - Editor

To set the tone for 2014, we hear from our CEO, Schalk Venter who announces the new Exco structure that will lead AEL to greater heights in line with our company objectives for The Next Stretch towards 2017.

Some of the highlights in this issue include snapshots of the past year in our AEL at a Glance section.

In our AEL CSI section, we demonstrate that AEL has heart and is committed to assisting the communities

in which we operate and conduct our business. You get a glimpse of our visit to the Johannesburg Zoo with the children of Thuthukani Centre.

The AEL Energy section turns the spotlight onto our fellow colleagues who support one another through participation in internal events such as the Breast Cancer Awareness Month Campaign.

Under our AEL Thought Leadership banner, we celebrate the resounding success of our inaugural Blasting Masterclass which will now be hosted on an annual basis.

Safety remains one of our primary focus areas. In our AEL Safety Focus section, we inspire our workforce with stories of exceptional Safety achievements. Read about our accomplished

recipients of the SHE Representative awards.

Finally, in our AEL Family section, we celebrate the birth of the newest members who have now joined the AEL clan. We also congratulate the elated newlyweds who bear testament to the old adage of “love at first sight”.

In March, you can look forward to our next issue with a new look and feel.

As our valued readership, please submit your stories for the new issue by emailing eubulus.pillay@ aelms.com.

Dear Colleagues As you are well aware AEL Mining Services has embarked on a business optimisation programme that will re-align all the company’s resources in order to meet our strategic goals.

the fixed cost base proportionally to revenue growth.

As a start of the restructuring I have pleasure to announce the future EXCO structure.

The EXCO must provide strategic direction and functional expertise and a hands-on approach in order to deliver the required results.

Taking cognisance of the fact that we have to deliver existing critical projects and financial objectives, as well as the timing of required hand-overs, the implementation of the new EXCO structure will be completed towards the end of Q1 2014. Until otherwise communicated, your current structure, reporting lines and accountabilities remain unchanged, in order to ensure full delivery of the 2013 objectives.

I should emphasise that AEL needs to grow both our revenue and profitability, which can only be achieved by not increasing

Current EXCO members Stuart Wade, Piet Halliday and David Harding will pursue other journeys.

We trust that you are inspired and invigorated to face 2014. Here’s to a productive and prospective year!

Schalk Venter

Eubulus

CEO

Human Capital

In this issue Safety The New Exco Structure

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AEL Kids Explore Johannesburg Zoo

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AEL’s Inaugural Blasting Masterclass showcases how AEL adds value for its customers

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Entrenching Quality The AEL Way

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AEL at a Glance

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ISAP hosts its first SHE Representative Awards Ceremony

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Safety Recognition

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Rafael Fernandes

Paul Eagar

Sepadi Mohlabeng

Trevor Roberts

Liesel de Villiers

Colin Wilson

Wayne Du Chenne

Thinus Bierman

Explosives Laws Compliance and “The Next Stretch”

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Shared Services

IS Operations

Ops & NE

Commercial

Technology

International

Southern Africa

Northern Africa

Wayne’s Word

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AEL Bright Stars

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AEL Supports Breast Cancer Awareness Month

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AEL Accountants’ Conference

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The Ballistic Mortar on its way to Retirement

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Babies on Board

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Wedded Bliss

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After 29 years in service of AEL and establishing a substantial business footprint within Africa, Stuart Wade will be deployed in the wider AECI where his skill and experience will be leveraged to help the Group reach its goals.

Piet Halliday will retire at the back end of 2014 after 33 years of providing AEL with world leading technologies. David Harding will complete his service with AEL at the end of 2014.

I am pleased to announce the appointment of Thinus Bierman and Paul Eagar to EXCO. I would like to wish everybody well in their positions and challenges.

I would like to thank you for your continued support during this change process, and I will continue to keep you informed of developments and progress.

Regards, Submit your story to: letterbox@aelms.com or contact Eubulus Pillay on 011 606 0313 Schalk Venter CEO

www.aelminingservices.com Disclaimer - This publication does not necessarily reflect the views of AEL Mining Services Limited management. The copyright to this publication rests in AEL Mining Services Limited. Other product and corporate names used in this publication may be trademarks or registered trademarks of other companies and are used only for explanation and to the owner’s benefit, without intent to infringe. © AEL Mining Services Limited 2011.

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AEL CSI

AEL CSI

AEL Kids Explore Johannesburg Zoo The festive season, a time for joy and goodwill, saw 200 children from Thuthukani Centre, Tembisa, set about on their very first visit to the Johannesburg Zoo. The team responsible for the trip comprised 20 caregivers from the Centre as well as 10 AEL employees.

The children, whose age group ranges from 4 – 12 years, were extremely delighted to explore the animal kingdom. They sang and shouted with great excitement upon seeing their favourite animals – which they recalled from storybooks and children’s shows on television.

AEL staff shared fun and educational information about the animal groups, names, and unique habitats. Furthermore, the children enjoyed refreshing snacks throughout the day and a fulfilling lunch to refuel their buzzing energy.

The excursion concluded with nothing less than memorable insight, festive cheer and happiness as the children returned to their homes in Tembisa.

AEL’s Ayanda Zici leading children from Thuthukani Centre through the zoo

Eager children all geared for their adventure

Exploring the animal kingdom at the Johannesburg Zoo

Re-fueled with delicious treats, the children resume their journey

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AEL Sustainability

AEL Thought Leadership

AEL Thought Leadership

Maximising value

“Mine to Mill”

AEL’s Inaugural Blasting Masterclass showcases how AEL adds value for its customers

Record number of delegates in attendance

Wayne Du Chenne, Executive Director: AEL Southern Africa

Investment into new innovations and technologies is key to yielding better results for customers.

AEL Mining Services hosted its inaugural blasting masterclass, a premier industry event offering in- depth insight and cutting edge solutions from “mine to mill”, in Johannesburg on 20 November 2013.

AEL is continuing to invest heavily into Research and Development (R&D) to provide the mining industry with cutting edge products that help customers optimise productivity in this highly competitive environment.

The event comprised an enlightening conference where customers had the opportunity to interact with renowned AEL specialists who presented the latest developments and shared technical knowledge that would equip them to ease their way through any intricate blasting matrix.

AEL has proven to be, not just a product purveyor but rather a value-adding service provider that strives to optimise our customers’ mining operations.

The conference was coupled with a dynamic exhibition which enabled delegates to experience AEL’s vast suite of products engineered to increase cost saving, enhance safety and deliver value across the value chain.

According to Wayne Du Chenne, Executive Director: Southern Africa, who was speaking at the AEL Masterclass event, “3% of the revenue that AEL generates annually, is invested into R&D”.

AEL’s Mobile Manufacturing Unit on display

The inaugural AEL Masterclass, which saw over 180 delegates gather for a fullday session, incorporated the latest in mining safety technology, new innovations into the market and case studies.

Following the success of this year’s masterclass, AEL has committed to staging the event as an annual two-day industry colloquium. The next Blasting MasterClass is scheduled for the 3rd Quarter 2014.

Delegates explore the exhibition

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AEL Quality

Entrenching Quality The AEL Way

LINNEA CLOETE – Group Quality Manager As a quality team we have been actively engaging our employees in what quality is and how

BALUNGILE MBOYANA – Technical Officer and Quality Champion

to be cognisant of quality behaviour so as to entrench quality The AEL Way. Our aim is to

Quality can be referred to as a measure of excellence or a state of being free from defects

Just like breathing is to life, quality is not something we think about, it is something

make quality second nature to all our employees no matter how big or small a role they play

or deficiencies. Quality can also be referred to as fit-for-purpose.

that we do at AEL. It is about ensuring our compliance to ISO 9001:2008, which

in our value-delivery network.

secures business and improves business and customer efficiency. It is a standard

To ensure this, we have an active Quality engagement communications plan involving

that enables the people of AEL to do things right with confidence. Entrenching Quality, The AEL Way, guarantees that we take courage to keep our promises.

It tells our customers that we wish to delight them through whole-hearted and

several tactics. Quality Champions make certain that we are living up to our promise of meticulous care. We also have training programmes that ensure all our staff are properly trained to accomplish their daily tasks with excellence. We are continuously developing material making sure that we sustain future resources. Our quality team are in active

TIM NELL – Metrology Laboratory Manager

pursuit of entrenching quality The AEL Way and living by example to their teams.

The Metrology Department’s main function is to perform dimensional and selected

ensure that quality exists in the way we think, the way we act, and in the way we

We have identified quality representatives who are present at all of our sites and our Quality

mechanical inspections on all incoming factory manufactured components supplied

unearth wealth through meticulous care.

Champions are on the ground to make sure our standards are being met at all times. These

by internal and external engineering suppliers. Inspections are performed to known

representatives will assist to champion real behavioural change.

international standards by using measuring methods and techniques based on principles

mindful attention to detail. It shows that we care by taking pride in our work to

of measurement science. We also assist other departments within AEL to support them

Quality is The AEL Way!

in investigations, customer complaints, product qualifications, developing measuring methods, selection of measuring equipment, sourcing of measuring equipment, sourcing

All Aboard asked the division heads about what they are doing with regard to

of calibration authorities, conducting QMS audits as well as helping other department to

entrenching quality The AEL Way and our Quality Champions about what quality

improve their QMS.

LEONARD THIPE – Supplier Quality Assurance

means to them. Here is what they had to say.

Our focus for 2013 was to develop a baseline database to enable the evaluation of all

Supply Quality Assurance works with the procurement function to ensure that our suppliers

engineering suppliers FPY, DPMO and 6Sigma levels. The aim was to be able to supply the

meet certain requirements and have enough systems in place to successfully manufacture

procurement department with accurate and reliable data which can be used during the

for AEL. This process aims to grow our suppliers along with us and create an avenue for

supplier selection and supplier performance process.

efficient partnerships.

Our focus for 2014 will be on a project to ensure that all spares stored in the IS Engineering

Our goal in 2013 was to develop the packaging stream after it was incorporated into our

Stores conform to the current engineering drawings and are fit for use. The final phase of

structure.

the centralised calibration service will also be implemented by the end of the first quarter

In 2014 our goal is to strengthen partnerships with key suppliers by getting to know their

2014.

processes better and capitalising on their strengths.

LUTHANDO NTLANTI – PTQM and Quality Champion Quality means a happy employee, a happy client and a productive organisation. How do we do that? We have to talk quality to our employees and work quality all the time. How do we make sure our employees work quality? We recognise our employees for quality performance.

CECIL KORKIE – Quality Compliance Manager

KOBUS THERON – Burning Ground Manager and Quality Champion

Being a quality champion means caring and being passionate. We are in an active pursuit of

Quality means everything to me and our business. We need to start living quality in all that

value-add, in the form of system improvements, motivating others and collaborating with

we do. We can save millions in proper planning of products. Our products and services

others in teams. Champions confidently pursue excellence in their daily activities. They

should be 100% quality from the start to the end. A reduction in waste produced due to poor

stand to be corrected, they are open to new ways of doing things and at the same time, have

quality would reduce the amount that we burn on a daily basis at the burning grounds – that KEABETSWE MODISOE – Quality Communications Officer

the courage of their convictions. Champions are born and champions can be made.

could contribute significantly to the bottom line.

The ISO 9001 Standard is a tool that can assist in better managing an organisation. Like

Changing behaviour through improving our communication, in training and general

any other business tool, how much it helps will depend on how well we put it to use. For

awareness of quality is our key focus. We have run focus groups across our teams to see

2014 the focus will be on increasing on both external and internal business areas to obtain

what quality means to our employees so that we can tailor our communications to position

increased benefits.

quality at the forefront of all of our minds.

Externally it increased out businesses competitive edge and market share and improves

In 2013 and continuing into 2014, we have been running awareness material through a series of posters, banners and continuously updating our noticeboards to remind our employees what Quality The AEL Way means. In 2014 we will be running a desktop campaign and a poster competition to get all our employees aligned to the behaviours required to live Quality. We have refreshed our Quality Induction Video which you will notice at your annual safety refresher induction.

Quality is a way of life at AEL.

ANNUSHCA POHL –Quality Assurance Manager

customer confidence and satisfaction. It also assists to improve conformity to customer and

“Quality is never an accident. It is always the result of high intention, severe effort, intelligent

regulatory quality requirements.

direction and skillful execution. It represents the wise choice of many alternatives.” William

Internally it improves operational efficiency and productivity as well as process consistency

A. Bernhardt. Quality means putting out the best product or service all the time. It means

and stability. It enabled facilitated continual improvement. It allows us to improve focus and

that we are doing the right thing at the right time.

effectiveness of training programs - including motivation and participation. Our supplier

Quality assurance is the systematic process of monitoring and measuring to see whether

performance will improve and it will ultimately increase the profitability of our organisation.

a product or service is meeting specified requirements and is of sufficiently high quality.

Our 2013 focus was the application of the QMS, quality training and associated materials for all employee levels, quality measurement systems, mentoring, training and nurturing of the Quality Champions and conducting of quality audits to verify quality performance.

Our 2014 focus is to build on what we have established in 2013. Our objective is to be the

TSAKANI BALOYI – Technical Officer and Quality Champion Quality means taking ownership and interest in implementing a good strategy for living successful behaviors in production.

Hub for Quality Best Practices and make sure that dissemination of these practices take

NOBERTO TERCLAVERS - Operational Technical and Quality Services Manager

place within AEL Mining Services. A Gap Analysis regarding the QMS will be done for all

We need to make sure we embody quality The AEL Way so that we know what it means to

business regions to establish current levels of compliance to the QMS and then develop

act with Confidence, Courage and Care in order to deliver on our value to our customers.

plans to work with the sites to close the gaps.

Quality is a resistance to compromise.

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AEL at a Glance

AEL Safety Focus

ISAP hosts its first SHE Representative Award Ceremony McCollen Mkhonto with his winning slogan in Distribution’s Safety Competition

Hazel Bomba, winner of the R&D Spring Safety Poster Competition

Abdallah Idd, AEL Tanzania artisan, recognised for10 years of service

Graham Garside, winner of the R&D Spring Safety Slogan Competition

SF02 decontamination team (L to R) Simon, Nonjeke, Daniel, Nthelebovu and Tlou

Douw van der Walt and Sandy Etchells preparing to do a face profile at Optimum

This initiative was launched to develop the SHE Representatives of the plant through various focus points such as, improved inspection sheets, training sessions on what is expected from a SHE Representative, updating of appointments and training and then the launching of a monthly SHE Rep Award for motivational purposes.

This proved to be a very successful year for this initiative.

On 11 December 2013 we hosted the Awards Ceremony, where the Tube Drawing Plant was awarded with the trophy for the Safest plant of the year (winning the monthly Award 5 times), the Lead Azide Drying plant and the Spray Drying plant shared the combined second place with each winning the monthly awards twice.

In grand ceremonial style employees and management celebrated this worthy achievement and saluted the employees of the Tube Drawing with champagne (alcohol free of course).

Each SHE Representative was presented with a trophy and each employee received a medal.

The plant trophy is a floating trophy, that allows all plants to vie for victory by proving their dedication to creating and maintaining a safe work environment.

Congratulations the Tube Drawing Plant, and thank you for setting the bar high for the expectations of a Safe Plant!

Participants at Equipment Services Environmental Awareness Day held on 20 September 2013 R&D’s cutting edge soccer team

Global Safety Day Commemoration at Orapa Mine on 4 November 2013

AEL’s Tevin Rambau and Godfrey Makena showing the community around AfriSam’s Ferro Quarry how a blast is conducted

Victorious members of the Tube Drawing Plant

First blast on new CBS installed at Rustenburg Minerals Development Company Sonia, Vuyiswa and Lebo (ISAP) on their teambuilding excursion at Emerald Resorts

Executive Operations Manager, David Harding with the winning team

Safety Recognition Safety Recognition of Tony Naidoo (FSS) Durban Depot

The Spray Drying plant employees won the Safety Rep Recognition for August

AEL’s fire fighters Armand Veldsman, Quintin Barnardt and Paul Venter ready for action

With over the 33 years of dedicated service, Tony Naidoo has established himself as an archetypal solid citizen of the Company. Anyone who knows him will bear testament to his calm disposition and unwavering safety commitment. He leads his team by example and mentors other junior employees whilst always furthering the Company’s safety drives and culture. With sites scattered all over the province of KwaZulu Natal, the logistic challenge to meet our on-time-in-full customer objectives safely, is one that Tony has met with remarkable consistency while demonstrating that his safety switch is firmly on.

AEL’s donation of five desktop computers to Kempton Primary School for use in their Media Centre

Vischal Salik, Tony Naidoo and Derek Rumble

Safety Recognition of Lynette Naina (Magazine Master/Depot Administrator) and Thokozani Mfela (MMU Operator) East London Depot

AEL Ghana employees

AEL Toppies Louis Dullmaier, Quintin Kloppers ,Yoman Jacobs en Hannes Botha Manufacturing Excellence Nitrates FMS Launch

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The Eastern Cape, being the second biggest province (in terms of area) in South Africa is notorious for poor road conditions, stray animals and compounded by sites spread over vast distances, vehicle related incidences are the depot’s highest safety risk. The depot recently went through a restructuring exercise to address waning safety standards over recent years. However, that involved a 6 month high risk period whereby the operations continued with no one at a level higher than an MMU Operator based at the depot. During this time, Lynette and Thokozani took over the reins and ensured that the Company safety regimes were never at any stage compromised. The depot remained incident free which can be directly attributed to them stepping up to the plate.

Lindokuhle Nyembe, Thokozani Mfela, Lynette Naina and Derek Rumble

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AEL Energy

AEL Legal and Compliance

Explosives Laws Compliance and “the Next Stretch”

AEL Bright Stars

AEL’s Licence to Operate

AEL applauds Witbank Blasting Engineer, Salvatore Zaca’s talented daughters, Daniella and Fabiola Zaca.

AEL, like many other multi-national organisations, is faced with ever-increasing pressure regarding the complex responsibility of ensuring legal compliance, across a wide spectrum of laws, in carrying out its business. Not only are there legal imperatives that force effective compliance management but it is in the interests of good business to do so.

Daniella, in Grade 6, achieved Honorary Colours for Academics, Poetry and Creative Writing, Media council, and was chosen Leader for the year 2014.

She also participated at the Mpumalanga Netball Championships where her team came second place.

In demonstrating our commitment to upholding the law, ethical behaviour and instilling stakeholder confidence in our operations, AEL has embarked on its explosives laws compliance programme, the purpose of which is to assist business in ensuring its continued compliance with local and international explosives-related legislation and all ancillary regulations.

With explosives laws compliance being at the heart of AEL’s “Licence to Operate” and imperative for “The Next Stretch” and beyond, the Legal Department has compiled a full repository by means of an Explosives Laws Compliance Universe, detailing what needs to be complied with in respect of explosives laws, the impact of non-compliance on business and the guidelines that exist to direct compliance. Explosives laws compliance ranges from compulsory obligations (e.g. statutes) to voluntary obligations (e.g. internal policies and contracts).

The youngest of the daughters, Fabiola, in Grade 2, achieved Honorary Colours for Academics and was rewarded trophies for Junior Track Athlete of the Year and Junior Victrix Ludorum. Fabiola also holds the track record for 60m and 80m and won the Mpumalanga Athlete Championship.

AEL Supports Breast Cancer Awareness Month AEL hosted the October 2013 Platform Social in support of international Breast Cancer Awareness month.

According to CANSA (Cancer Association of South Africa) breast cancer is the most common cancer among South African women; however, a diagnosis does not have to be a death sentence if it is detected early enough.

The PinkDrive is the indispensable, breast cancer Public Benefit Organisation (PBO) powering South Africa’s first mobile PinkDrive Mammography Unit and PinkDrive Educational Unit through our country, driving home the fact that ‘Early Detection Saves Lives’.

This organisation gives free mammograms and clinical breast exams to individuals who do not have medical aid. Their pink mobile mammography units travel across the country to diagnose and educate women about breast cancer. Thank you to all AEL employees who continue to support this worthy cause.

The Explosives Laws Compliance Universe will allow for the ring-fencing of legal requirements. All obligations within the Compliance Universe will now be analysed in a way that not only extracts the tangible compliance actions required, but also packages them in a manner that is easily understood by all (especially by Line Management whose task it is to manage compliance risks within their operational processes). The programme will be carried out in a phased approach over a three year period, with the initial phase of the programme being to assess AEL’s compliance with explosives laws in South Africa. We will keep you updated on the progress.

AEL Accountants’ Conference AEL this year hosted its annual Accountants’ Conference from the 21st to the 25th October at Kievits Kroon, Pretoria. The conference saw accounting professionals from all AEL business regions gather to discuss matters pertaining to corporate governance and regulation. Also on the agenda were previously-faced challenges as well as opportunities which are anticipated in the future.

Key note speakers included AECI Chairman of the Risk Committee and member of the Audit Committee, Allen Morgan, and AEL Group Financial Director, Rafael Fernandes.

The resounding success of AEL is attributed to professional events of this calibre where knowledge-sharing is fundamental.

The conference included team building exercises to remind delegates that all work and no play makes for dull boys and girls.

In conclusion of the successful event, recognition awards for outstanding performance were handed out to employees who continue to lead with Confidence, Courage and Care.

AEL Wisdom

Wayne’s Word Another Waynism comes our way from sharp-witted Executive Director: Southern Africa Business, Wayne Du Chenne:

“Don’t be a fork in the land of soup!”

Definition: Make yourself useful. Ensure that you are a perfect fit in your current role.

Keep your ears attuned as we await the next word windfall from our linguistics maestro!

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AEL Family

AEL History

Babies on Board We take pleasure in announcing the latest additions to the AEL Family. We wish the parents the best of luck with the late night feeds and early morning lullabies.

The Ballistic Mortar on its way to retirement The Ballistic Mortar at R&D stands tall and proud basking in the mid-afternoon sunlight. The Ballistic Mortar came to AECI R&D department during the early 1950’s to fulfil an essential role in the development of dynamite explosives for deep level gold mining. For several decades it was a state of the art tool to determine the strength of newly developed products.

With the advent of more advanced explosives and testing methods it fell into disuse in the early 1980’s and now its steel structure is a monument to a life of service to research. The Ballistic Mortar stands at approximately 4,3 meters in height.

The pendulum is 2.5 meters in length. The borehole (ball) is 390mm in length and 550mm in width. The side arms are each 5 meters in length. The width of the outer arms is 880mm.

The ballistic mortar was used to measure the explosive strength of molecular explosives materials. It was a test in which a standard mass (10 grams of TNT) of explosive was

placed inside a small borehole fitted with a projectile. The mortar, suspended on a pendulum, recoils upon detonation of the sample. The recoil is a measurement of weight strength (The standard percentage being 100) or pendulum deflection as explained in the dictionary of Mining, mineral and related items.

Trinitrotoluene (TNT) was found to be the most suitable standard to measure other explosives against. When it was fired TNT left no residue and complete initiation of the TNT sample took place in all cases.

Now it has approached it’s twilight years and will be pensioned off to the Dynamite Museum where it will educate generations to come.

Meet Bela, beautiful daughter of Leon Shaamduth who made her appearance on 7 November 2013.

Introducing Natasha Govindasamy’s handsome son, Sayur born on 30 June 2013.

WEDDED BLISS

Contributors to this article: Dr Piet Halliday and Samantha Hopper Research and Development Department

Ballistic Mortar being removed from AEL Mining Services R&D premises by ECJ Rigging

Best stand award for AEL

Congratulations to our latest newlyweds, Explosives/Instrumentation Engineer, Musa Mthalane and Fragmentation Analyst, Lebohang

AEL Mining Services is proud to announce that Progroup,

Molefe who tied the knot on 5 September 2013

award-winning stand designers, won the EXSA (Exhibition

after an explosive office romance. Here’s to a

& Event Management Association of Southern Africa) Best

blessed union showered with an abundance of

Stand Award for the design of the AEL Mining Services

happiness!

stand at Mining Lekgotla 2013.

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Wealth Unearthed When you unearth gold, you build stronger nations

This is the kind of wealth AEL Mining Services is proud to help you unearth.

Advancing, constantly evolving and defining the future of explosives in the mining industry whilst preserving our heritage.

AEL Mining Services Tel: +27 11 606 0000 Email: company.email@aelms.com www.aelminingservices.com