Blasting News September 2012

Blasting News VOLUME 21 ISSUE 3 2012

IN THIS ISSUE • Elevating Mining Technology to greater heights • World Class service excellence in Indonesia • Galvinising the next generation of mining professionals • Aiming for precision - Afrisam project

Wealth Unearthed

Printed on 100% eco friendly paper

Content

Message from the CEO

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Elevating Mining Technology to greater heights

4

World class service excellence

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Editor’s note

AEL ensure development of local skills - Indonesia

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Galvanising the next generation of mining professionals

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Aiming for precision: Afrisam – Jukskei Oversize Project

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Welcome to the Spring edition of Blasting News.

We have themed this issue “Forward Thinking” as we return with renewed vigour to offer insight on our latest innovations from our vast product portfolio and share thought-provoking comment on industry-related topics.

Ethics – is it an optional extra?

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Ensuring our safety and environment switches are on

13

70 years of experience with Ammonium Nitrate and still at the cutting edge

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Contact Directory

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Following the free pull-out of issue 1 of Explosives Today, we have again included a free pull-out of Explosive Today issue 2 for your informative reading.

AEL believes that innovation is key to our success.

We continually reinvent our products, building on the successes of our previous product range in order to satisfy the needs of our customers. Our presence at the recent Electra Mining Africa 2012 exhibition enabled our customers to experience our product regeneration through innovation as we showcased our suite of new and existing products. A significant breakthrough was the unveiling of our world first portable charging unit PCU 010 pump which received phenomenal positive response from industry specialists and customers alike.

As our print media is supplemented by our strong online presence, be sure to visit our newly launched French, Spanish and Portuguese miniwebsites introduced in our previous issue. These mini-sites help expand our reach to targeted customers in other regions. In a bid to streamline our internal communication channels, our CEO presents our newly launched global information portal, EDGE.

Contact Details Eubulus Pillay Blasting News Editor Tel: Fax: Email: Web:

+27 11 606 0313 +27 11 605 0000 eubulus.pillay@aelms.com www.aelminingservices.com

Disclaimer This publication does not necessarily reflect the views and opinions 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.

Health, safety and environment are a top priority at AEL Mining Services and this set the backdrop for our recently hosted annual Safety, Health and Environment conference. The conference served as a platform for the investigation and adoption of leading practices in safety, health and environment issues.

In our thought leadership series, we offer you the second instalment of Explosives Today, our technically-driven customer publication attached as a pull-out.

Enjoy your read.

We welcome your feedback. Please send your comments to Eubulus Pillay - Email: letterbox@ aelms.com

Eubulus Pillay

Message from the CEO

Giving our customers the Edge

After two years of hard work AEL has arrived at the launch of its world class enabling system – EDGE! EDGE is AEL’s information management portal. Why EDGE? For AEL, EDGE means: a penetrating incisive quality.

This is what EDGE will be for AEL in the future.

EDGE is the enabler and integrator of a world class system of managing and improving AEL’s performance with regards to SHE, Workplace Performance, Quality, Asset Care, Planning Efficiency, and

Blasting News Third Quarter 2012

Production Management. EDGE will bring a penetrating, incisive quality of world class thinking, performance and continuous improvement to our plants and operational sites across all the countries we do business in.

EDGE will ensure a visibility of performance and a communication system enabling the prompt seeding of best practice in all our businesses.

Other benefits include a database where we can track improvements and trends, and a quick reference system to our procedures and processes.

AEL employees have embraced the opportunities that EDGE will bring to the organisation, making it part of THE AEL WAY. The system will in the long run benefit our customers.

AEL giving our customers the EDGE - a global electronic gateway available everywhere at any time, helping connect people, information and processes.

Regards

Schalk Venter

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Innovation at the forefront

Elevating mining technology to greater heights - M. Cross, L.Wilson, T. Rowe, Dr. P Halliday AEL Mining Services showcased its revolutionary innovations for the Surface and Underground markets at the Electra Mining Africa 2012 exhibition recently held at the Nasrec Expo Centre in Johannesburg.

conjunction with underground emulsion in the Narrow Reef mining environment.

These offerings included AEL’s Underground Bulk Emulsion Systems (UBS), as well as the latest generation of electronic detonators designed to assist the industry to overcome safety and production challenges.

AEL’s pioneering history and leadership role in the development and implementation of electronic detonating systems was also under the spotlight with the third generation electronic detonating “Shot” systems, DigiShot and DigiShot Plus showcased.

The application of these products was demonstrated by the use of a scaled 3D model showing surface and underground mining operations including the Vertical Drop and underground bagging processes. This was complemented by synchronised iPad and plasma screen display systems enabling visitors to engage in interactive product presentations and to view video footage of product application.

Unveiling of the PCU010 Pump One of the highlights at the exhibition was the unveiling of AEL’s latest world first innovation – the Portable Charging Unit PCU010 pneumatic Stope pump for use in

The PCU010 pump received positive response from local and international industry members who attended the trade show. “The pump can be used on all narrow veins and could also be suited to civil trenching, small quarry work, secondary blasting and small-diameter hole blasting on the surface.

We want to create an emulsion-only environment for mining,” says AEL underground blasting systems product manager Mark Cross.

The pump converts chemicals into explosives at the blast site, eliminating the risk of transporting explosives down mine shafts, which, in turn, improves safety, mining logistics and over time, this yields costs savings.

The emulsion matrix and sensitiser that AEL produces are loaded into separate tanks in the pump, after which they are combined in the pumping action, to form a sensitized explosive product. “A static mixer at the end of the charging hose and lance ensures the final product is well mixed, which produces a consistent quality explosive to improve blast performance,” explains Cross. He adds that by installing a series of these pumps, customers will be able to cover their whole mining operation at a relatively low cost, making it feasible to convert the whole mine to such emulsion units.

The unveiling of the new PCU010 Pump 4

Before launching the pump, AEL conducted extensive testing underground which provided a wealth of knowledge and experience.

The PCU010 weighs just over 20 kg, is just over a meter long by ½ a meter in width and 0.3 metres in height, with a flow rate of about 20 kg/min giving a good charging rate. The emulsion tank has a capacity of 19 kg and the removable sensitiser tank has a capacity of 2 kg. The unit includes a 5 m hose, a static mixer and a lance with the option of additional lengths.

“The new robust and reliable unit also has a built in bursting disc as an additional safety feature to protect against over pressurization of the emulsion matrix. It also has fewer working parts, compared with previous products, which means that minimal spares are required and lead time for manufacturing and maintenance is substantially reduced,” says Cross.

AEL offers a menu of options around such pumping systems to suit all mining applications to clients interested in our UBS systems. “We will collaborate with our customers to devise maintenance regimes that are suited to their operations and provide training to pump operators and maintenance personnel,” concludes Cross.

For more information on AEL Mining Services Portable Charging Unit PCU 010 pump, contact Mark Cross on +27 11 606 0728 or +27 82 552 4558 or email: mark.cross@aelms.com

UBS Product Manager - Mark Cross (second from left) explaining the workings of the new pump Blasting News Third Quarter 2012

Sandile Ngubo (left) and Gilbert Sthemba (right) demonstrating the use of Electronic Delay Detonators and their systems

Gavin Bramwell explaining the “Vertical Drop” system

A 3D portrayal of AEL’s “Vertical Drop” system

AEL’s Hendrik Swart engaging with visitors

Thinus Bierman and Hendrik Swart at the newly unveiled PCU 010 Pump Blasting News Third Quarter 2012

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AEL Indonesia

World class service excellence

- Amanda Seruni and Sandri van Heerden

A drive to promote quality and world class service excellence led to the development of a “Centre of Excellence” at AEL Indonesia’s Kaltim Prima Coal project in Sangatta. The facility distinguishes AEL from other explosive companies as it allows for improved in-country support and product development.

Having such a facility within the explosive boundaries of an existing production plant allows for free access to raw materials and the ability to do testing on the actual bulk explosives manufactured on site. The facility also serves as a training centre to uplift AEL employees and transfer knowledge to customers.

Technicians at the laboratory

The centre focuses on advanced quality control, product development and research.

The Centre of Excellence team consisting of Bulk Technology Manager: Sandri van Heerden, Laboratory Technician: Noor Saidah and Laboratory Quality Control Assistant: Bety Asmaraningati, continually strive to improve the quality of the bulk products manufactured.

Their main focus project has been the development, implementation and improvement of an Eco, “used oil” based, emulsion explosive product for the KPC Sangatta and Bengalon production plants.

The “Centre of Excellence” and the Bulk Technology team have added value to the AEL Indonesia business and will continue to support these operations.

AEL ensures the development of local skills - Building new generation AEL plant in Bengalon, Indonesia - Mark Gibbs Faced with the challenges of overall reduction of costs, increased productivity and world class functionality, AEL’s team of experts resorted to build the new generation Bengalon plant in-country.

In resolving these issues the core team had to take cognisance of the need to reduce the imported equipment and spare parts inventory and simplify and introduce only readily available instrumentation thereby resulting in a reduction in HMI interphase.

Thus the plant was designed to be more operator-dependant and less reliant on third party software designer-input and service callout delays.

AEL plant - Bengalon, Indonesia

“As the plant was completely designed in-house, the majority of the equipment required for the construction of the plant was procured from local suppliers and subcontractors. Only items which would have had a negative impact on project timelines, were imported as a last resort,” said Mark Gibbs, AEL Indonesia.

Investing in local human capital, employing local instrument and electrical engineers was also a step in the right direction as it decreased our dependency on expatriate engineers in these disciplines, although the complete works were commissioned with their valued participation and interest.

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Blasting News Third Quarter 2012

Knowledge Transfer

Galvanising the next generation of mining professionals - AEL introduces students to Blasting Technology A common challenge that many tertiary students face is the practical application and understanding of what is taught in a classroom environment. In order to offer students a better understanding of blasting technology, AEL hosted 4th year Mining Engineering students from the University of Johannesburg at the first of three University Technical Days.

“In addition to the practical aspects of the event, we were provided the opportunity to showcase blasting explosives as a fascinating science and highlight the key importance of explosives technology in a successful mining operation,” commented Simon Tose, AEL’s Group Consulting Mining Engineer and organiser of the event.

could be easily understood.”

“The visit to AEL today has answered some of the why? For instance, the motivation behind using one explosive over another,” stated Mpho Kgadima, another student present on the day.

“The blasting cycle is a complicated and lengthy one, and in our dealings with universities we have come to realise that some students battle with understanding certain aspects of the process,” said Dr Ewan Sellers, AEL’s group manager – blasting science. “This sort of event is extremely helpful in creating the understanding that these students require, as well as supplementing the theory learned in a lecture situation.”

“South Africa’s mining students are in essence future human capital and this event provided the platform to detail the opportunities that exist for graduates within AEL. At the same time, we were able to educate South Africa’s mining professionals of tomorrow on AEL’s product offerings to the South African and international mining industry.” continued Tose.

“We will in the near future host students from the University of the Witwatersrand and the University of Pretoria, and we anticipate that the University Technical Days will be an annual activity on the AEL calendar,” concluded Dr Sellers.

The group of 100 students was divided into six smaller groups that moved between the various demonstrations and lectures facilitated by senior members of staff from AEL. These included a ‘live” explosive pumping demonstration used to break a boulder, a 20 ton Mobile Manufacturing Unit (MMU) and the underground shocktube training facility.

Preparing for the demo-blast

The application of electronic detonators and leveraging fragmentation were covered in the classroom lectures. A trip to the AECI Dynamite Museum provided students with insight into the history of explosives and the day culminated in a live demonstration of electronic detonators at AEL’s far range.

On arrival students were welcomed by Simon Tose

AEL’s Johan Naude explaining emulsion usage

AEL’s Desmond Pannels demonstrating product capability Absolute amazement as the demo-blast was fired

Many of the students commented on the value of being exposed to information gleaned in a lecturing environment in a more practical sense. One of the students, Matete Phasha, commented “AEL has taken classroom theory and translated it into something practical that Blasting News Third Quarter 2012

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AEL Mining Optimisation

Aiming for precision: Afrisam – Jukskei Oversize Project - Ken Meiring, Mark Cottam and Rob Smith Oversize material that is generated from blasts is a major concern at quarrying operations. AEL’s Mining Optimisation team was requested by the Quarry Services team in conjunction with Afrisam to conduct an oversize project at their Jukskei Quarry.

This project started in January 2011 and thirteen blasts were monitored (Blast 2 – Blast 14) during this period.

The objective of the project was to implement a method that could be adopted to measure/determine the percentage of oversize generated from each blast and then from these results to establish an acceptable percentage oversize for the Quarry.

Sub-objectives included comparing muckpile and boulder fragmentation distribution curves against actual production rates for each blast (Jukskei Quarry) and tonnage loaded and hauled (SA Earthworks – load and haul contractor).

These results would potentially indicate the source of oversize as well as assist in recommending measures to limit oversize to a specific percentage.

The project has now been completed and the results presented to Jukskei Quarry management.

The average percentage oversize muckpile (+500 mm) generated from all blasts was found to be 11 %.

Safety Safety is of utmost importance when performing a task on a mine. This project involved several Mining Optimisation people driving into the quarry on a regular basis (twice weekly) and working in close proximity to moving machinery on the benches.

We are proud to report that no accidents or near miss incidents occurred or were reported throughout the twelve month project period. Risk assessment was carried out daily using our Take 5 risk assessment programme and full adherence to the Jukskei safety programme was practiced at all times.

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AEL personnel carrying out Take 5 risk assessment prior to performing work

Blast Parameters To ensure all the blast monitored could be compared, the blasting parameters such as hole diameter, hole depth, hole pattern, charge mass per hole, stemming height and material and timing design were not changed.

Blast Description:

Blast 2 - 14

Hole diameter (mm)

102

Hole Angle ( º )

90

Average Hole depth (m)

15

Rock type

Granite

Drill pattern

Staggered

Burden (m)

2.5

Spacing (m)

3

Stemming material

Crushed stone

Stemming height (m)

2

Explosive type

S100 Eco

Initiation system

DigiShot

Spacing timing (ms)

17

Burden timing (ms)

25

Number of holes

Dependent on bench length

Number of rows

Dependent on bench width

Methodology The methodology comprised of the following four steps: 1. Boulders were removed from the muckpile, stacked and marked to allow for measurement and prevent double measurement.

Initially, boulders were physically measured for size, but from Blast 5, photographic split analysis was carried out to get a more accurate reflection of size.

2. The muckpile and boulders were photographed twice weekly during loading and these images were used to determine the average fragmentation spread through each blast, and any boulders moved out of the muckpile.

3. Production through the two crushers in combination with the SA Earthworks loaded tons (included ‘pops’ tons) was then compared to the fragmentation results for the muckpile and boulders.

4. This data was captured in Excel and various graphs to display the results achieved.

Blasting News Third Quarter 2012

AEL Mining Optimisation

Marking of stacked boulders to be analysed

Capturing of boulder photographs to be used for analysis

Blasting News Third Quarter 2012

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AEL Mining Optimisation

Individual measuring of boulders (L x B x H dimensions)

AEL makes use of SPLIT™ Desktop fragmentation software for fragmentation analysis, where a scaling object is used to compare the various sizes of fragments and calculate the percentages of fragment sizes compared to the scaling object.

Capturing of muckpile fragmentation photographs within the muckpile

In summary, the blasts were measured as follows: Blast 2 – Blast 4; • Muckpile – SPLIT™ analysis • Boulders – physical measuring (L x B x H dimensions)

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Blasting News Third Quarter 2012

AEL Mining Optimisation

Blast 5 – Blast 14; • Muckpile – SPLIT™ analysis • Boulders – SPLIT™ analysis of boulders Several issues arose during the project which were thought to have contaminated the data obtained, which will have had some impact on the conclusions drawn.

SA Earthworks, state that there was an average of 10.97 % of oversize material generated from all blasts (green line on graph below), whilst Split Analysis reported an average of 9.64 % oversize @ 500 mm and above. The similarity between the final percentages obtained

•

indicates that an efficient load and haul contractor could provide the actual oversize being produced at an operation such as Jukskei, more cost effectively.

The mean boulder size average was 897mm

In several blasts, a large portion of the muckpile was submerged in water after the blast. This prevented photographing of the muckpile for fragmentation analysis and will have affected the average fragmentation for the blast over the measurement period.

Average of 89% passed @ 500mm

Placement of the fragmentation reference balls during the muckpile loading process

Average of 6.73 % was retained @ 500 mm

Blasts on other benches were taken before the current blast muckpile was loaded out. This resulted in rock from one blast mixing into another muckpile thus skewing the fragmentation and tonnages loaded.

It was difficult to match crusher production rates to muckpile fragmentation analysis, due to the rock being taken from several benches and not only on the blast being monitored. The same applied to the ‘pops’ (boulders set aside for secondary breaking by load and haul contractor) which were not being taken to the crusher at the same time as the blast they originated from.

Average of 9.64 % oversize @ 500 mm and above

Conclusions • • •

There is an average of 89 % that passed @ 500 mm for all blasts An average of 6.73 % was retained @ 500mm for all blasts monitored Load and haul figures obtained from

Blasting News Third Quarter 2012

Boulder size (mm) compared to % Oversize

AEL Mining Services would like to thank Afrisam Jukskei Quarry and in particular Nicholas Emmanuel and Mohamed Docrat for their assistance with access to their production information, and the quarry for photographic analysis and other measurement work.

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AEL Corporate Governance

Ethics – is it an optional extra? - Leanda Mtshali Ethics and values are no longer merely personal issues - they are organisational issues as well. Often the root of unethical behaviour is often systemic and not simply the result of rotten apples in the corporate barrel.

Ethical people can be brought down by serving in a bad organization, just as people with questionable integrity can be uplifted, or dare I say, at least neutralized by serving in an organization with clear values.

When we think of reasons why organisations should cultivate a good ethical culture, we often hear the pragmatic imperative “good ethics is good business”.

Over the past few years, it has become clearer that companies do not operate

in a vacuum and for the benefit of their shareholders alone.

In fact, we now understand that companies can only be successful and sustainable if they see themselves as part of society as a whole and are seen by that society to be making a positive contribution to it.

Each organisation is part of the society in which it operates and increasingly an organisation’s performance in and impact on this society has become more critical.

Awareness amongst stakeholders regarding environmental and social issues, corporate scandals, more stringent regulations and investor demands all put pressure on organisations to critically look at their impact on the environment and society as

a whole.

The observance and application of ethics within the business world is not something new. For as long as mankind has been living in groups, the moral regulation of behaviour has been necessary for the group’s wellbeing.

The ancient Greeks recognised principles or standards of human conduct (ethika) while the Romans coined the concept of ‘mores’ from which morals and customs evolved.

It is generally accepted that ethical behaviour results when one does not merely consider what is good for oneself, but also considers what is good for others.

AEL has zero tolerance for theft

With a rich and proud history built on a solid foundation of professional and ethical behaviour, AEL requires that all of our business relationships reflect our personal integrity, respect for human dignity, honesty and a commitment to do what is right, fair, reasonable, lawful and just.

Remember - Honest business is good business!

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Blasting News Third Quarter 2012

AEL SHE

Ensuring our safety and environment switches are on - Henry Merrick, Ellen van Dongen

Henry Merrick - AEL’s Group Safety and Health Manager

Schalk Venter - AEL’s CEO

Ellen van Dongen - AEL’s Group Environment Manager

minimise risk to employees, contractors and the public.

Environment

Delegates attending the conference

AEL’s annual Safety, Health and Environment conference was hosted in September.

Safety Our annual Safety, Heath and Environment conference is designed to advocate ‘Zero Harm’ in the workplace.

It has grown over the years with our SHE representatives, resident industry experts and international renowned guest speakers in attendance.

The conference is a platform for learning, an opportunity to share solutions for many challenges faced and to train safety representatives using innovative techniques. Delegates are encouraged to adopt leading practices and to learn about the management and reporting of safety and health issues.

In caring for its people, customers and environment, AEL Mining Services is firmly committed to ensuring that all its activities are conducted safely to Blasting News Third Quarter 2012

AEL’s activities are widespread, and because of this, the group’s exposure is diverse, examples of which include mining related and road safety issues, manufacturing of initiating systems, bulk explosives, chemicals and explosives, as well as general engineering activities.

With 17 businesses in the AEL group, there is a strong focus on standardisation throughout the organisation and an overall alignment of best safety and health practices.

AEL embraces a safety culture throughout the group, and strives towards exemplary performance in the safety and health fields, including the development, manufacture, storage, distribution, testing, destruction and use of explosive initiating systems, bulk explosive and nitrogen based chemicals.

The conference also focused on one of AEL’s core values which is to strive to continually improve the sustainability of our environmental performance.

This is done through the ISO14001 environmental management system and our commitment to the Responsible Care initiative, which encourages site personnel to take meticulous care of the environment in which they operate.

AEL ensures that its environmental policy, standards, programmes and initiatives are rolled out in sites in South Africa, the rest of Africa, South East Asia and South America.

The conference heightened awareness and encouraged employees and the organisation as a whole to always ensure that our safety and environment switches are on.

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AEL Track Record

70 years of experience with Ammonium Nitrate and still at the cutting edge

Impact of AEL Ammonium Nitrates Anfo - Grade (ANA) superior characteristics on Anfex® performance - Francis Kasongo, Johan Greyling, Sean Slabbert and Simon Tose Ammonium Nitrate (NH4NO3) is formed by a chemical reaction between ammonia and nitric acid. It is the most common component in explosives for the mining industry and is often used in a granular form, mixed with an emulsion or fuel oil.

for Anfex®. Anfex® is a free flowing, granular type, dry blasting agent in the form of off white to beige colour based mainly on Ammonium Nitrate Porous Prill (ANPP) as the oxidizer mixed with Fuel-oil.

AEL’s Ammonium Nitrates Anfo-Grade (ANA), manufactured at the AEL Nitrates complex, in Modderfontein (Gauteng), is praised worldwide for its quality. Thanks to the “Topan” process used at the Modderfontein plant and 70 years of AN experience, the ANA has a world leading friability rate – not more than 2% - and high oil absorption – more than 8.0%.

Further chemicals are added in much smaller concentrations to impart specific desirable properties to the finished product. The product is either pour loaded (mainly on surface applications), or blow loaded using a pneumatic loader (mainly underground).

Both properties are the guarantee of the structural integrity of the prill, maintained even when subjected to the rigours of transport and storage, and allow the sensitizer to be easily and evenly absorbed into the prill micropores resulting in a clean explosive with maximum energy release and minimum fumes.

AEL ANA is the main raw material

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Comparative tests on different Anfo products in the market indicate that, with a standard Lategan Anfo loader, the AEL products are showing superior quality characteristics.

These include a substantial reduction in both fines and product waste outside the blasthole. This holds true even at elevated pressure levels experienced when mining operations cut back close to blasting times.

The comparatively low level of fines as a result of the unique structural integrity of Ammonium Nitrate prills produced via the “Topan” process. The amount of fines impact the explosives density in the hole and therefore blast performance.

The reduction in waste caused by blowout is because of reduced fines levels.

With high level of waste and the resultant increasing uncharged column length, the miner has the option of either adding explosives or risk blast results. This is an uncomfortable position to be in without any positive outcome when it comes to performance review.

With the AEL ANA and its superior friability characteristic, we aim to positively impact the mine by reducing waste (Cost) and explosives in-hole density (Blast performance).

Blasting News Third Quarter 2012

Wealth Unearthed

Contact Directory Southern Africa

Africa & International

Cape Town (T) +27 21 842 3901

Nelspruit (T) +27 13 747 2278

Botswana (T) +267 393 8133

Tanzania (T) +255 28 250 2927

East London (T) +27 43 745 2169

O’Kiep (T) +27 27 713 8597

Chile (T) +562 928 1300

Zambia (T) +260 966 990 945/9

Johannesburg (T) +27 11 606 0000

Rustenburg Bushveld (T) +27 14 594 9300

DRC (T) +243 99 5366 257

Zimbabwe (T) +263 429 16 315

Kimberley (T) +27 53 802 6352

Steelpoort (T) +27 13 280 8019

Egypt (T) +20 22461 8609

Klerksdorp (T) +27 18 477 1062

Venetia Mine (T) +27 15 575 2335

Ghana (T) +233 302 762 633

Kwa-Zulu Natal (T) +27 31 266 4303

Welkom (T) +27 57 352 4073

Indonesia (T) +6221 7592 4498

Mankwe (T) +27 14 558 2803

West Wits Sales (T) +27 18 788 3390

Mauritius (T) +230 269 1650

Mokopane (T) +27 15 491 1373

Witbank / Emalahleni (T) +27 13 690 1242

Namibia (T) +264 64 403 463

Mogalakwena (T) +27 15 418 2189 Blasting News Third Quarter 2012

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A101876 AEL IRON

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