Blasting News 1Q 2014 by AEL Mining Services

Blasting News VOLUME 23 ISSUE 1 2014

IN THIS ISSUE • 20 Years and counting in Ghana • Revolutionary new and improved CE4 Tagger offers robustness and ease-of-use in various environments • Continuing to develop the next generation of engineers

Wealth Unearthed Printed on 100% eco friendly paper

3 AEL ACHIEVEMENT: AEL COMMENDS EMPLOYEES AT ITS MANUFACTURING EXCELLENCE AWARDS 4 AEL AFRICA: 20 YEARS AND COUNTING IN GHANA 6 AEL ELECTRONICS: REVOLUTIONARY NEW AND IMPROVED CE4 TAGGER OFFERS ROBUSTNESS AND EASE-OF-USE IN VARIOUS ENVIRONMENTS 10 AEL AWARDS: AEL’S RENOWNED INDUSTRY SPECIALIST CHERYL KELLY IS THE INNOVATOR OF THE YEAR 12 AEL LEGAL: HIGHLIGHTING THE ROLE OF THE CHIEF INSPECTOR OF EXPLOSIVES 13 AEL CSI: DEVELOPING THE NEXT GENERATION OF ENGINEERS 14 AEL EVENTS: AEL SET TO PARTICIPATE IN EXPOMIN 2014

AEL AT IOQ

As an added-value service provider, AEL prides itself in ensuring that our customers can confidently rely on us to provide them with consistent quality products developed with technology appropriate to their needs and supported by the knowledge of how best to use these products.

AEL Achievement

Contents

Editor’s Note

AEL commends employees at its Manufacturing Excellence Awards

To do this, we are constantly learning about our customers’ businesses and how our competency complements them. We pledge our dedication to the explosives industry and aim to serve all our stakeholders with these ideologies firmly entrenched. In this issue, we offer you a glimpse of some of the strides that we have made in the local and global arenas. In Africa, we proudly celebrate 20 years of success in Ghana under the leadership of AEL’s expert team of executives. We continue to invest in the mining industry with trailblazing innovations, the latest being the CE4 Tagger that promises to revolutionise blasting. On the home front, we ardently support local communities by sponsoring the Maths Centre based in Tembisa which nurtures learners through their maths and science literacy programmes. Finally, we extend an invitation to our stakeholders to join us at international events such the Institute of Quarrying and ExpoMin exhibitions for AEL’s thought leadership presentations as well as our full product and services showcase. We endeavour to constantly keep you in touch with the AEL world. Please subscribe to Blasting News by visiting our website www.aelminingservices.com and clicking on the Publications tab. Contact Details: Eubulus Pillay - Blasting News Editor I Tel: +27 11 606 0313 I Fax: +27 11 605 0000 I eubulus.pillay@aelms.com I www. aelminingservices.com

Award recipients flanked by Executive Director Operations, Sepadi Mohlabeng (eft) and Executive Operations Manager Initiating Systems, David Harding (right)

HR Business Partner, Bongi Vovo presented the Operator 2013 award to Josias Boroto

Blasting News I First Quarter 2014

SHEQ Manager Africa Business, Vincent Maoeng presented the SHE Rep of the year award to Albert Mashiane

The award categories and individual awards included:

EL’s Manufacturing Excellence Awards was hosted on Friday, 7 March 2014.

The annual event celebrates the achievements of AEL’s team of talented and competent employees who have displayed superior capability in their daily duties in various portfolios. AEL’s Executive Committee Members, David Harding and Sepadi Mohlabeng, commended individuals and teams for adding value to the organisation through their commitment and dedication. Our teams of accomplished industry specialists constantly ensure that we operate at world class standards by upskilling employees, adhering to stringent safety regulations and demonstrating precision in quality. This ultimately adds value to our customers’ operations.

Training and Development Awards • Engineering Learner 2013 • Multi-skilling Learner 2013 Leadership and Management Excellence Awards • First Line Manager • Second Line Manager • Leader of the year Safety Awards • Leadership safety award • SHE Rep Quality Awards • Quality Champion • Best plant quality • Catch of the year Performance Awards • Excellence in service • Artisan of the year • Operator of the year

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.

Group Quality Manager, Linnea Cloete, presented the Catch of the Year award to Vela Mazula

Blasting News I First Quarter 2014

AEL Africa

20 YEARS AND COUNTING IN GHANA

ew companies can boast a decade of conducting business let alone a century.

AEL Mining Services (AEL), formally and fondly known by the “older” generation as African Explosives & Chemical Industries Limited (AECI), has been in existence since the late 1800’s. AEL is proud to have been in active partnerships with the Mining Industry ever since gold was discovered in the Witwatersrand, South Africa. Over the years, AEL remained the preferred supplier of explosives, initiating systems and value-added blasting services to this industry. “There is just something about AEL that radiates confidence, courage and care, which is why customers often comment

on the warmth and professionalism of AEL’s people,” says Schalk Venter, CEO of AEL. Although AEL’s roots lie in South Africa, a visionary team of executives decided to venture into Africa more than two decades ago. In those days they literally cleared the bush and fought mosquitos to “set up shop”. Admittedly, these brave strides were more than often taken in collaboration with customers like Gold Fields, AngloGold Ashanti, Golden Star Resources, African Mining Services and others. Without their help, a lot of what has been achieved would have been impossible. In fact, if one takes a page from the AEL journey into Africa and the good that

came from it, it is quite sad that miners are not being applauded more for the good work they have done over many, many years. Many schools, hospitals and infrastructure have been established as a direct result of mining activity and people associated directly or indirectly with mines have significantly increased their wealth. In December 2013 AEL celebrated the 20th birthday of AEL Ghana. It was an auspicious affair celebrated in true Ghanaian style. Many distinguished guests trekked to Bogoso in Ghana’s Western Region to join in the celebrations and show their appreciation of this great achievement. The AEL team transformed what is normally a very busy manufacturing site, into a colourful and vibrant arena

with traditional music filling the air and dancers articulating the festive mood with rhythm and poise. The Managing Director, Franky Botha paid tribute to the managing directors and engineers before him who have built this company.

L-R: Patrick Mortoti, Malcolm Campbell, Sutah Lambert, Seth Inkman, Elizabeth Burns, Augustus Arthur, Emmanuel Boampong

On the day long-service awards were handed out and it was very rewarding to note how many people had 20 years’ service with AEL Ghana – a mean feat in itself! Chief Nana Akwasi Sumepry addressed the audience thanking AEL for its contribution in the wider community and the Company’s dedicated service to the Ghana economy. The Honorable District Chief Executive, Mr Robert Wisdom Cudjoe also thanked AEL and urged the company to expand its involvement in the Prestea area. Mr Wilson Krofah, CEO of Wileb Mining, related some fascinating stories about AEL and how their association with AEL built the Wileb brand, which is now a formidable force serving the civil and quarrying fraternity in West Africa. AEL provides a full range of commercial explosives and accessories to its customers, although its value proposition is that of Blasting Solutions rather than selling commodities. Blasting is an art and its impact on the down-stream efficiency of a mine is far-reaching. AEL therefore invests heavily in its people and continues to conduct cutting edge research and development to improve its products and services.

L-R: Peter Tanu, Isaac Baidoo, Franky Botha (MD-AEL West Africa), Kwame Nyarko, Lawrence Adjei, Stephen Gaisie, Joseph Djorbuah, Agatha Mensah, Malcolm Campbell, Stella Tandoh

L-R: Michael Arthur (Operations Manager- Healthlink Clinic), Daniel Agyen-Tweneboah, Dr. Mrs. Christine Mensah (CEO, Healthlink Clinic), Richard Fiadjo (Physiotherapist, Healthlink Clinic), Lawrence Adjei, Gideon Etornam Fie, Malcolm Campbell

AEL employs 287 people of which only 4 people are expatriates in Ghana. For AEL, it is important that each of its employees is enabled to support their families and that they can go home to their loved ones safely after each shift. Although AEL only plays a small role in making this wonderful country and its people successful, it will do so with responsible care and dedication. Here’s to the next 20 years!

Long service recipient, Isaac Baidoo in a hearty close-up with Franky Botha 4

Blasting News I First Quarter 2014

L-R: Malcolm Campbell (Operations & Engineering Manager-AEL Ghana), Franky Botha (MDAEL West Africa), Willie Krofa (CEO-Wileb Mining Services) and Ebenezer Badoo (Operations Director-Wileb Mining Services)

AEL Electronics

Revolutionary new and improved CE4 Tagger offers robustness and ease-of-use in various environments

EL Mining Services (AEL) in a joint venture with technical partner DetNet, have launched the CE4 Tagger, the next generation of tagging devices which aims to revolutionise blasting in the mining and construction industry through ease-ofuse, simplicity, visibility, productivity and robustness. This is according to Gys Landman, CEO of DetNet, who says the DetNet CE4 Tagger, which is GPS enabled, is an inherently safe device for testing and tagging of Electronic Detonators and will, through its design and usability, enhance productivity and accuracy of a blast. “The CE4 Tagger also features a bigger, higher quality LCD screen which is easier to read especially in harsher climates and has a scratch-resistant glass screen. The tagger has also been designed for water resistance up to 1.0m where the previous generation taggers were only splashproof,” explains Landman. A new feature of the tagger is that it is compatible with 2-wire and 4-wire (with inter-changeable head) systems reducing the amount of components needed for the

electronic blasting system and also making it a more cost effective option. Adding that since the main function of a tagging system is to test the integrity of the detonator, the harness and the connectors, the CE4 Tagger has enhanced this function by allowing testing of poor connections which can be replaced at the site. “This enables the blaster to ensure electrical functionality of the system and to minimise misfires and possible lost blasts whilst remaining on the shot,” adds Landman. Furthermore, DetNet and AEL offer productspecific training prior to use and ensure that users also comply with all local regulations when using this device. When compared to previous taggers like the CE3 Tagger, Landman says the CE4 Tagger has been designed more robustly to withstand harsh weather conditions with an operating time from fresh battery of six hours at 25oC and 10 hours under normal operating conditions. It also comes with an optional external battery pack which can be used to warm the device in use under -15oC.

Demo testing with the CE4 Tagger at a cement quarry

Blasting News I First Quarter 2014

CE4 Tagger - our evolution of the V8 Tagger

andman says the CE4 Tagger is aesthetically pleasing with a luminous yellow and grey cover however, the design is not purely aesthetic, as the luminous screen makes it more visible in harsh climates. “It is also more compact, weighing approximately 600g, with a better grip and comes with a bigger LCD display screen of 28x64mm with backlight and a flat tactile touch pad which, with its raised silicone keys, makes it glove friendly.” Landman says the CE4 Tagger is used as an inherently safe tester to test each electronic detonator and log positional information during the loading phase for electronics systems (such as DigiShot, DigiShot Plus and GeoShot) with the ability to store information for 16 000 detonators. “The integrity of the detonator, the harness and the connectors can be tested by the tagger, enabling the blaster to ensure electrical functionality of the system and to minimise misfires from the blast.

Old V8 Tagger VS the new generation CE4 Tagger

When testing detonators, the unit functions at an inherently safe level. This means that testing can take place at the blast site without the area being cleared,” concludes Landman.

V8 Tagger (Old)

CE 4 Tagger (New)

Temperature Limits

-10 C to 50+ C

-30oC to 60+oC

Battery

User replaceable 9V Alkaline

Single cell 3.7V re-chargeable

Rechargeable.

internal Lithium Polymer Battery

Weight

Approximately 600g

Display

28x64mm LCD with Backlight

128x128 pixels / 44.78 x 44.78mm

high quality LCD screen and scratch resistant glass Keypad

Flat tactile touch pad

Backlit raised silicone keypad (alphanumeric), glove friendly

External Connectors

Interchangeable head for

Mini USB plug

USB connection Operating time from

6 hours at 25oC

Fresh battery

10 hours under normal operating conditions. Optional external battery pack, this will warm the device in use under -15oC.

Software Upgrade

Via PC with custom cable

Via PC or USB dongle using Mini USB connection.

Water Resistance Additional Features

Splashproof (IP 55)

Water Resistant (IP 57) GPS for variable use Wi-Fi connectivity EMC warning Error warning LED Variable tone speaker for audible warnings. Charge management and state of charge.

Blasting News I First Quarter 2014

AEL Awards

AEL’s renowned industry specialist Cheryl Kelly is the innovator of the year!

Interviewer: Tell us more about your innovation drive? What does this entail?

ongratulations to Cheryl Kelly, Group Technical Manager Initiating Systems

who won the prestigious Innovator of the Year award hosted by AEL’s parent company, AECI. Cheryl is a key member of AEL’s Research and Development (R&D) department headed by industry stalwart, Dr Piet Halliday, AEL’s Executive Director: Research & Development. One of AEL’s driving forces is to develop cutting edge commercial explosives and initiating systems. Housing a dedicated team of scientists and technicians who all offer vast and varied backgrounds in chemistry, physics, chemical and mechanical engineering, AEL’s R&D team covers a growing spectrum of scientific approaches to explosives and initiating systems. Blasting News chatted to Cheryl Kelly about her achievement.

Cheryl: Working for R&D, our main thrust is innovation. My view on innovation is that it is the ability to not only make something brand new (which is invention) but also the ability to take an existing concept and use it in a novel manner (which is innovation). My approach is to apply innovation to problem-solving as in alternative thinking to solving existing problems. An historical example is black powder, which had existed since the 1600’s. R&D came up with an innovative process to make this product in a safer manner by making a non-flammable water-based paste which when dried met the market requirements. Spray drying built on this concept of using safe water-based slurry as used in the process of making coffee and milk powders, to make a free flowing pyrotechnic. This patented process is unique to AEL. Innovation is very much a team effort, if you want to commercialise within the shortest period possible. I am fortunate in having a dedicated and experienced team who can do this successfully. Interviewer: Working in R&D for many years has surely heightened your drive to fine-tune existing product offerings for the market. Please elaborate. Cheryl: Working on new developments is tremendously exciting. Seeing an idea culminating in a saleable product is very rewarding on a personal and team level. I have also worked in many parts of the organisation throughout my career at AEL (including IT, Product Management, In and outbound Logistics and Projects) and this exposure and experience engenders a more holistic balanced systems thinking in R&D activities. An understanding of the pressures faced within the downstream processes also

Blasting News I First Quarter 2014

enables one to drive collaboration across the different departments involved in new product introduction. I would encourage the younger generation of technologists to also get experience across different aspects of the AEL business as it certainly benefits one in the long run.

was developed under severe time constraints. My group’s focus over the last year was to optimise the pyrotechnic compositions and in particular the binder and oxidiser selection and concentration. This significantly improved the timing and the reliability of the compositions.

Interviewer: What is your outlook for the future within AEL?

The full range of delay powders for Shock Tube has now been developed to cover both the narrow reef and surface markets. The development of a new surface connector (Rhino) offers more robustness and flexibility to the international market.

Cheryl: At the recent AECI senior managers meeting, it was mentioned that a shareholder had commented that R&D is the future of AEL. Our role is therefore to continually improve the product offering for our customers. My role specifically is to keep abreast of technological developments in other areas (including non-related scientific fields) and assess its applicability for explosive manufacture. There are a number of exciting concepts which we are working on which may involve revolutionary manufacturing techniques. In addition, we may also have the opportunity to licence some of our technology. Recently, some interest has been shown in the USA in one of our pyrotechnic patents. Interviewer: What is the next trail-blazing innovation that we can expect? Cheryl: We are working on a number of new concepts which are showing promise. The launch of a new booster is imminent as we are busy building the first prototype pilot plant at our Pinelands site. This booster will offer improved hot hole resistance as well as less dependence on a long supply chain of raw materials. I believe it will be a game-changer for IS. Interviewer: Please talk us through the progress of IS and how it is better modelled to serve customer needs. Cheryl: The original spray drying process

Product rationalisation (offered by a new out hole detonator) will also reduce inventory holding as well as improve delay detonator throughput at ISAP. Partnering with the correct third parties (including local and overseas universities) has and will continue to enable us to perform fundamental research and avoid tunnel-vision thinking and dispel paradigms within my group. My role is also to identify the right people and partners with the necessary skills who can assist with solving technical issues that arise during development so that we can continually delight our customers with improved product offerings. I am very fortunate to have a team of extremely innovative and committed individuals who have demonstrated excellent product development and commercialisation skills. AEL’s investment of 3% of its annual revenue into research and development enables its R&D department to continue to vigorously explore cutting edge research while offering field and plant support on all new and existing developed technologies. The team also ensures that the group maintains a firm grasp on the anticipated changes and developments in the world of explosives. 11

AEL CSI

AEL Legal

Highlighting the role of the Chief Inspector of Explosives

CONTINUING TO DEVELOP THE NEXT GENERATION OF ENGINEERS

Comparison of the current and new Explosives Act The Explosives Act No.15 of 2003 was signed in 2009 by our former President however it has not yet come into effect. For this reason, the Explosives Act 26 of 1956 (“Current Explosives Act”) remains in force and the provisions of the Explosives Act 15 of 2003 (“New Explosives Act”) is viewed to come into force in the near future. In this article, we have reviewed the search and seizure powers granted to the Chief Inspector of Police (“CIE”) of the SAPS in terms of the above mentioned Acts.

EL is playing a part in creating mathematically, scientifically, and technologically literate and functional learners who will achieve success in a wider variety of business arenas – including that of AEL. In this vein, AEL has continued to partner with the Maths Centre, a Non-Profit educational organisation and is working with eight schools in Tembisa allowing them to gain access to maths and science. The partnership ties in with AEL’s social responsibility of encouraging maths and science literacy in the

What is a dawn raid or an on-site investigation?

communities in which the business operates so as to develop the next generation of engineers in South Africa. The Maths Centre aims to equip young learners with the necessary skills and knowledge required to gain university entrance and also to encourage them to pursue a professional career in the science field. In addition to the supplied learning equipment, the Maths Centre provides workshops for educators in order to enhance their teaching methods and problemsolving skills.

A “dawn raid” is an unannounced visit by a regulatory authority (e.g. the CIE) to a company’s premises to inspect documents and interview staff where there is a suspected infringement of the law which they regulate. Powers of the authorities It is important to be aware of the limits placed on the authority’s powers and to ensure that the investigators do not exceed their authority by, for example, making copies of documents which do not relate directly or indirectly to the subject matter and purpose of the investigation.

“Education is our

Written authority

passport to the future,

The investigators may normally only enter and search premises acting under a valid written authority, which includes a warrant. However, an investigator may, in some instances, enter and search premises other than a private dwelling without written authority with the permission of the owner or person in control of the premises.

for tomorrow belongs

If an investigator believes on reasonable grounds that the written authority would be issued if applied for, and that a delay would ensue by first obtaining written authority and such delay would defeat the object or purpose of the inspection. Immediately before entering and searching premises without written authority, an investigator must provide identification to the owner or person in control of the premises and must explain to that person, the authority by which the search is being conducted.

to the people who prepare for it today.” Malcolm X

Powers of the investigators Once the investigators have entered the premises identified in the written authority, they may: - search any person on the premises who they believe has personal possession of a document that has a bearing on the investigation; - examine any document or item that has a bearing on the investigation; - request information about any document or item from the owner of, or person in control of, the premises; - take extracts from, or make copies of, any document that is on the premises and has a bearing on the investigation; - use any computer on the premises or request assistance in the use of the computer in order to search any data on the computer, reproduce any record from that data, and seize any output from that computer for examination and copying; and - attach, and if necessary, remove from the premises for examination and safekeeping anything that has a bearing on the investigation (except for privileged documents).

Blasting News I First Quarter 2014

AEL Events

AEL set to participate in ExpoMin 2014

EL will be participating in ExpoMin 2014, a premier event in the mining sector scheduled for 21-25 April in Santiago, Chile.

The 13th annual ExpoMin, expects to surpass previous years’ attendance records, by bringing together over 80 thousand visitors into a space that reaches almost 125,000 m², with more than 1,600 exhibitors. Business projections for the 2014 event reach more than US $ 1,700 million, which add up to about $ 10,000 million in transactions generated over previous editions, a fundamental contribution to the Chilean economy that has consolidated this international fair organized by FISA as one of the most important centres of business and discussion of global mining. Carlos Parada, executive director of Expomin 2014 and commercial manager of FISA, said that the position that the exhibition has reached has been a natural consequence of being able to collect and to channel all issues that have marked mining development in Chile, along with the changes and challenges of the industry. In relation to the current situation of mining in Chile, he said that a competitive scenario is being generated, as the mining industry in general is taking the rising production costs strategically and is looking for new ways to reduce them. “When a fair has achieved a position, practically it is not affected by current problems. Today Expomin offers an

effective platform of contact between national and international supplier companies and the mining industry, and all the companies associated with it, such as engineering and consulting companies,“ he said. The event is an opportunity for AEL to showcase our trail-blazing product offerings and unique services while furthering our thought leadership stance. The event will be managed by the AEL Latin America team led by Des Decina, MD AEL Latin America. ExpoMin Fact File: • More than 1.600 exhibiting companies and presence from well over 7.000 brands • 35 countries participating as exhibitors • 80.000 visitors, 4.000 executives and foreign professionals • US$ 1.700 million in projected business • 8 conferences and workshops • 21 technical and commercial lectures • 800 meetings at the business round

AEL Sites

Source: http://www.expomin.cl/

AEL Plants

AEL at IOQ The annual IOQ (Institute of Quarrying) Conference, designed for the professional development of information exchange between industry peers, attracts in excess of 200 visitors from Southern Africa and abroad annually. AEL will be present at this year’s event to be held at the Lord Charles Hotel in Somerset West, Cape Town from 10 – 11 April 2014 where delegates will have an opportunity to view the latest technology in the quarrying industry. 14

Blasting News I First Quarter 2014

AEL Contact Directory Southern Africa Cape Town (T) +27 21 842 3901 East London (T) +27 43 745 2169 Gauteng Quarry Services +27 11 606 3523 Johannesburg (T) +27 11 606 0000 Kimberley (T) +27 53 802 6352 Klerksdorp (T) +27 18 477 1062 Kuruman (T) +27 53 712 3035/2958 Kwa-Zulu Natal (T) +27 31 266 4303 Mankwe (T) +27 14 558 2800 Mokopane (T) +27 15 491 1373 Mogalakwena (T) +27 15 418 2189 Nelspruit (T) +27 13 747 2278 Northern Province +27 15 491 1328 O’Kiep (T) +27 27 713 8597 Rustenburg Bushveld (T) +27 14 594 9300 Steelpoort (T) +27 13 230 8020 Venetia Mine (T) +27 15 575 2335 Welkom (T) +27 57 217 1252 West Wits Sales (T) +27 18 788 3390 Witbank / Emalahleni (T) +27 13 690 1242 Africa and International Asia Pacific +6221 7592 4498 Botswana (T) +267 393 8133 DRC (T) +243 997 027 878 Egypt (T) +20 22461 8609 Europe +27 82 553 9080 Ghana (T) +233 302 762 633 Indonesia (T) +6221 7592 4498 Mauritius (T) +230 269 1650 Namibia (T) +264 64 403 463 South America (T) +562 928 1300 Tanzania (T) +255 22 277 1055 Zambia (T) +260 966 990 945/9 Zimbabwe (T) +263 479 0846

Blasting News I First Quarter 2014

Wealth Unearthed Our diverse range of robust electronic delay detonators are designed to cope with the most challenging mining environments

Advancing, constantly evolving and defining the future of electronic initiation technology in the global mining industry Showcasing our cutting-edge products and value-adding services in Chile from 21-24 April 2014 at

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 Head Office Tel: +27 11 606 0000 email: company.email@aelms.com www.aelminingservices.com