Blasting News (3Q 2013)

Blasting News VOLUME 22 ISSUE 3 2013

IN THIS ISSUE • Big Bang at Sishen with zero harm • AEL hosts its inaugural Blasting Masterclass • AEL showcases new products at the Mining Lekgotla • ISAP exceeds expectations

Wealth Unearthed

Printed on 100% eco friendly paper

Editor’s note

Contents

Big bang at Sishen with zero harm

3

News in brief

4,5

AEL showcases new products at the Mining Lekgotla

6

ISAP exceeds expectations

12

Explosives law compliance

14

Contact Directory

15

In line with our value proposition of Thought Leadership, we present our free copy of issue 6 of Explosives Today, AEL’s technically-driven customer publication authored and tailored by our Mining Optimisation team.

Welcome to the 3rd issue of Blasting News for 2013, themed “innovative solutions for the market”. AEL continuously develops cutting edge technology by investing significantly in research and development to bring innovative solutions to the evolving mining and quarrying environments.

Highlights in this issue include more AEL successes such as another record blast at Sishen Kumba Iron Ore demonstrating how deploying AEL’s Prime, Load, Tie and/or Shoot (PLTS) service can empower customers with higher levels of convenience enabling them to extract optimum value.

With our large team of leading engineers and scientists, AEL has over a century of expertise and knowledge in developing ground-breaking and innovative blasting solutions. Read all about our recent launch of our latest innovations, the Blast Initiating Timer (BIT) and the GeoShot seismic electronic initiation system, at the Mining Lekgotla.

We share a bird’s eye view of our Initiating Systems Automated Plant (ISAP) which is exceeding expectations ensuring that our customers receive the lowest cost per unit, improved quality and the lowest misfire rate.

Under our Thought Leadership banner, we are proud to present our inaugural Blasting Master Class that is scheduled for 20 November 2013.

The event is set to offer knowledge-sharing

by AEL’s industry experts renowned for world class innovation and cutting edge solutions from “Mine-to- Mill”. To register for this key industry event, visit www.masterclass.aelminingservices. com for more details.

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.

2

Also included as a pull-out in this issue, is the 6th series of our technically-driven customer publication, Explosives Today.

We thank you for being part of our loyal readership. Please send your comments and suggestions to eubulus.pillay@aelms.com To subscribe to Blasting News please visit our website www.aelminingservices.com and fill in the subscription form located under the Publications tab in the News & Media portal.

Eubulus Blasting BlastingNews News I I Third ThirdQuarter Quarter2013 2013

AEL Blasting Science

Big bang at Sishen with zero harm!

AEL was awarded the Prime, Load, Tie and/or Shoot (PLTS) contract at Sishen Kumba Iron Ore earlier this year. AEL’s PLTS service addresses the requirements of customers that face resource and construction constraints and therefore require a solution to these problems without the need to hire more or upskill existing members of staff. Opting for either the Fixed or Per Blasted Unit service, customers have access to AEL expertise on site for the duration of individual blasts.

The project at Sishen has proven to be a great success with a record blast. The first bench was initiated by Christiaan Cloete, Sishen Production Manager.

The blast consisted of 311mm holes with a total of 708446 tons being successfully blasted. The first month of the project ended with an excellent safety record of zero injuries and zero incidents. For the first blast AEL blasted a total of 2.5million tons.

Subsequently, the Blasting section managed to set a new record for total tons blasted in a week. They managed to blast 7,443,762 tons; without an incident. This proves that Zero Harm is possible!

This demonstrates exceptional all round performance from the Drilling Section and the Maintenance Team for superlative quality and consistent metres drilled and for ensuring optimal working order for the MMU’s & Skidsteers respectively.

Deploying AEL’s PLTS service empowers customers with higher levels of convenience as AEL’s technical teams of expert crews (all accredited to adhere to legal compliance regulations) become an integral part of the production, planning and blasting operations.

Using AEL’s full PLTS service means customers have access to hands on involvement on AEL’s part as their teams will manage the stemming of blast holes, mark out and fire rounds and take on the legal accountability of the blasts, in addition to the services offered in its PLT offering.

Congratulations to the team for an exemplary achievement!

Blasting News I Third Quarter 2013

(Foreground) Nic Dryer (AEL Regional Manager), Jaques Botha (AEL Regional Engineer) and Christiaan Cloete (Sishen Production Manager) standing by in eager anticipation of the first blast.

News in brief

AEL’s stakeholder management programme is modelled to engage with and inform our stakeholders through participation in targeted industry events. AEL regularly showcases our range of ground breaking innovations and unique service offerings at local and international events.

Infrastructure Partnerships for African Development (iPAD) Katanga Mining Briefing – Lubumbashi 15 – 17 October 2013 AEL will showcase our unique product offerings while furthering our thought leadership stance at the The iPAD Katanga Mining Briefing from 15-17 October 2013.

The Katanga Mining Briefing is the copperbelt’s premier strategic and technical forum, offering stakeholders in the DRC’s copper and cobalt hub the opportunity to interface on pertinent issues affecting doing business in Katanga. Here there is a focus on the operational needs of mining companies in Katanga and a honing in on measures that can boost production. iPAD Katanga Mining Briefing (KMB) 2013 brings together a qualified and targeted audience from central and provincial government and international policy-making bodies to local private sector and investors operating in the DRC and those looking to find partners. No other forum exists where the entire mining sector project value chain is represented.

Technical Briefings are an important component to the event, where the latest in products, services and technologies for copper exploration, extraction and processing is highlighted.

“AEL’s participation in the event will ensure sustainable relationship building with key decision makers and display our commitment to doing business in the region.” said Francis Kasongo, MD of AEL DRC.

4

Displaying our global capability at the 6th annual Middle East and North Africa (MENA) Mining Show AEL will participate at the largest MENA mining congress and exhibition to be held 28 - 29 October 2013 Dubai International Convention and Exhibition Centre, Dubai, UAE. The show brings together mining industry buyers, suppliers, investors and government to facilitate new introductions and business opportunities.

Our participation will ensure engagement with key stakeholders while we showcase our capability in Africa and abroad.

The event incorporates a senior executive congress, a ministerial forum, exhibition showcase, investor partnering zone. The MENA Mining Congress is the premier event for regional Ministers and mining company CEOs. For 6 years the event has been attracting all the leading government authorities and mining companies to share their insights and vision on the future of the MENA Mining industry.

AEL representatives in attendance will be Mark Benning -Managing Director North East Africa, Mohammed Elgharraz - Regional Manager Burkina Faso and Ibrahim Kantao - Business Manager Mali and Guinea.

The MENA Mining exhibition is designed to address the operational needs of mining companies and partner them with leading solution and service providers.

Blasting News I Third Quarter 2013

AEL Sustainability

INTRODUCING AEL’s

BLASTING MASTERCLASS

Maximising value

“Mine to Mill”

“Precision in blast energy”

Wednesday, 20 November 2013 Gallagher Estate, Midrand

A day not to be missed…

Knowledge sharing by industry experts renowned for world class innovation and cutting-edge solutions from “Mine to Mill”.

Also showcasing…

Our suite of ground-breaking products providing a fit-for-purpose response to industry challenges.

To register for this event...

Please visit http://masterclass.aelminingservices.com Blasting News I Third Quarter 2013

5

AEL Innovation

AEL Mining Services showcases new products at the annual Mining Lekgotla AEL had the opportunity to engage in strategic dialogue with the mining fraternity at the recent Mining Lekgotla, the Premier Mining Think Tank in the sector, held at Sandton Convention Centre. This year’s event was themed “Competitiveness and Transformation for Growth”.

Keynote speakers included Kgalema Mothlante (Deputy President of

6

RSA), Mark Cutifani (CEO of Anglo American), and Khanyisile Kweyama (Executive Director of Anglo American).

AEL’s impressive exhibition stand tailored to demonstrate cutting edge R&D offerings, presented delegates with an unique technological journey into the future of mining.

Delivering on its commitment to produce two ground-breaking innovations per year, AEL launched two innovations - the Blast Initiating Timer (BIT) and the GeoShot seismic electronic initiation system- which enable customers to unearth wealth with meticulous care.

Blasting News I Third Quarter 2013

AEL Innovation

AEL’s pro duct exp er through the pace t, Johan Naude, ta s of the n ew produ king a delegate ct

Blasting News I Third Quarter 2013

Dr Elma r Muller explainin new BIT g the

7

AEL Innovation

Introducing

GeoShotTM

Seismic electronic initiation system

“Highly accurate timing, quick deployment, and increased safety for your operation. �

The system is aimed at our seismic customers exploring latest electronic

GeoShotTM control equipment, namely a

solutions.

Tagger and Seismic Interface Unit (SIU) is designed to meet the specific needs

GeoShot

TM

detonators are only able

of seismic customers and is compatible

to communicate and be initiated by

with most seismic firing equipment in

GeoShot

use today.

TM

control equipment due to the

electronic circuitry containing systemspecific, coded, encrypted signals which

Contact Christo Peltz at christo.peltz@

provide users with an additional level of

aelms.com

security.

8

Blasting News I Third Quarter 2013

AEL Innovation

“The GeoShot electronic initiation system is an electronic solution to our seismic customers who need highly accurate timing, quick deployment, safe and robust detonator downline wires,” states Christo Peltz, Product Manager.

“The GeoShot system delivers reliable initiation with accurate shot- point data in the challenging conditions that are often encountered in geophysical exploration.”

Christo Peltz, Product Manager

Blasting Hardware

Seismic Interface Unit (SIU)

CE4 Tagger

The GeoShotTM seismic interface unit is used to test and fire the GeoShotTM

The Tagger is used to test the GeoShot

detonators. Easily incorporated into

detonators and to record information

the firing pack of seismic crews, the

from the loaded holes. The driller can

GeoShotTM SIU delivers the specific

assign specific information about the

coded firing command and voltage

hole depth, type of explosive and also

required to initiate a GeoShotTM

includes the GPS location and initiation

detonator.

TM

time assigned.

Blasting News I Third Quarter 2013

9

AEL Innovation

Introducing a trail-blazing innovation

BIT - Blast Initiating Timer A little BIT of genius

This brand new approach to blasting combines safety and technology in a small user friendly product that can be used in most blasts where time delayed initiation is required.

“Technology that ensures safe blasting conditions ” The Blast Initiation Timer (BIT) is an electronic replacement for the pyrotechnic initiation systems targetted at the underground and surface mining industry.

10

Offering a variety of advantages over a pyrotechnic system: • the elimination of an open flame • predictable timing for increased safety • effective visual & audible warning signals This new product makes use of a hand sized ergonomically designed casing containing an electronic timer, which once activated, allows for a preprogrammed time delay to expire during which it provides visual and audible signals on its status.

At the firing time it provides sufficient voltage from the enclosed battery to initiate a standard fuse head within an Instantaneous Electric Detonator (IED), electric shocktube starter or Shurstart. It becomes permanently inactive after the connected initiator has been initiated and cannot be re-used.

Characteristics • Each unit contains an electronic chip that has a unique ID ensuring it is tamper proof • This ID is verified and stored to a sequel server at 3 different stages of manufacture and is uploaded to AEL servers for complete traceability • Two independent circuits are used for additional safety • Logic circuit is designed to always fail to safe • Pre-programmed delay intervals (1 hour currently) • Shelf life 18 months • Use once only Contact Elmar Muller at elmar.muller @ aelms.com

Blasting News I Third Quarter 2013

AEL Innovation

“The innovative AEL compact and lightweight Blast Initiation Timer (BIT) is an electronic initiator device designed for once-off usage,” explains Dr Elmar Muller, Product Manager. “Salient features of this product include a shelf-life of 6 months and waterproof and dust-proof packaging.”

Elmar Muller, Product Manager

Introducing the safe and cost effective solution to blasting safely every time!

Blasting News I Third Quarter 2013

11

AEL Capability

Initiating Systems Automated Plant (ISAP) exceeds expectations

The Initiating Systems Automated Plant (ISAP) was designed to produce world class detonators and assemblies at higher quality and lower cost than those produced on conventional plants.

Over the last twelve months, in collaboration with the Research & Development department, Projects Group and the Products to Market team, ISAP under the leadership of Operations Manager – Automated Plants, Vagner Pinto, has come of age and is delivering on its promise.

A policy of ensuring that the whole ISAP team understands the novel technologies, and their own responsibilities, has , through excellent co-operation enabled the plant to deliver record breaking outputs and quality since August this year. These results have been achieved without special support, under normal operational conditions. Of special note is the significantly improved timing with powders manufactured on the unique spray drying process. The improved output is a reflection of greater collaboration among employees and streamlined team work.

The ISAP plant, which is operating at optimum levels, ensures that our customers receive low cost per unit, improved quality and lowest misfire rate.

“Our state-of-the –art facility has delivered what was promised to our shareholders and the good news is that this performance is sustainable,” stated Ronald Huggins, ISAP Plant Manager. The success is owed to group effort of our remarkable 120-member team from various plants in the chain process: From the Tube Drawing plant then Powders and Detonators to the Shock Tube plant and finally to the Automated Assembly Plant.

“There was a marked all round improvement,” comments Vagner Pinto, Operations Manager – Automated Plants. “In August ISAP exceeded its target of 3 million assemblies producing a record number of 3.25 million assemblies. Our robotics section increased production from 500 000 to 517 000 units, modular machines increased output from 2.5 million to 2.7 million units and the run time increased from 75% to 80%. We are extremely proud of the team effort and look to even greater success.”

Robotics

ghts ighli

Initiating Systems Automated Plant (ISAP)

uts outp H y l i a dd ecor r ew r N y eve strive for • ualit q to t s s d ue Be • nt an ontin c g P m e e A v S inuin I o r cont • imp t r s l y e i t t h afe bet ce w ed s plian reas c n i com n cus o to fo s s ene awar

Produces: • 300m of shocktube per minute • 12 million detonators per month Sells: • 5.5milliom uni-delay underground assemblies per month • 600 000 surface assemblies per month

It is all systems go at ISAP, with old records being broken and new targets being set to ensure a sustainable and competitive future for AEL’s Initiating Systems products.

12

Blasting News I Third Quarter 2013

AEL Capability

Did you know?

The Initiating Systems Automated Plant (ISAP), is a R600 million plus, multi-year investment in a high-volume, highquality shock tube facility.

The plant has positioned AEL as the world leader in shock tube explosives.

Early in 2008 new technology and components from ISAP were incorporated into AEL’s wider product range to gradually replace the traditional capped fuses with shock tubes.

This conversion is making solid progress, particularly in AEL’s African markets.

Future sales growth is built largely on the ISAP project, which includes a number of breakthrough developments the company believes will deliver significant volume and quality improvements as well as unit cost edge.

Several new technologies have been patented and will provide AEL with competitive advantages into the future.

Aerial view of ISAP

Blasting News I Third Quarter 2013

13

AEL Legal

Explosives Laws Compliance All citizens, be they natural persons, legal entities or quasilegal entities, must without exception, comply with the laws of the land in which they operate.

Legal compliance has become more pervasive and hence has received more attention than ever before in both South Africa and in other jurisdictions over the past few years. If a company does not comply with the laws of the land in which it operates, its business will ultimately be affected and this will have a knock-on -effect on the company, its employees, shareholders and its external stakeholders.

Any trading entity, no matter how big or small must develop and maintain across its business and operations, a strong compliance function and a culture of compliance. Compliance can be narrowly defined to mean the process by which an organisation ensures that it observes and complies with the external statutory laws and regulations.

It will therefore include compliance with internal policies, procedures and codes of conduct. In addition, it can be expanded to include compliance with contractual obligations, permit conditions and trading conditions.

Regulatory Compliance Regulatory compliance describes the goal that companies aspire to in their efforts to ensure that employees are aware of and take steps to comply with relevant laws and regulations applicable to the business.

Legal compliance is therefore the process or procedure to ensure that an organisation follows relevant laws, regulations and business rules.

There are a number of legal requirements that AEL Mining Services needs to be compliant with in respect of the law and to this end, it has launched a programme to focus on the changes that will be introduced by the promulgation of the Explosives Act of 2003 and the 2010 Regulations.

On 19 December 2003, former President Thabo Mbeki assented to the Explosives Act of 2003 and stated that this Act will fundamentally overhaul and repeal the Explosives Act of 1956 and all other amendments that fall subsequent to the Act until the Explosives Amendment Act of 1997.

The Act was expected to align explosives legislation with international best practices when it replaced the Explosives Act of 1956.

This explosives laws compliance process will be a staged approach that will involve: • Firstly, understanding what aspects of the legislation are applicable to AEL’s business; • Secondly, ascertaining what business rules, codes, policies and non-binding requirements apply to AEL; • Thirdly, determining what steps are required to comply (and to what extent) with these external binding laws, internal binding codes or practices and with the nonbinding requirements.

• Fourthly, ensuring that internal procedures and policies are consistent with the law and that such procedures and policies are complete with respect to the law; • Fifthly, assessing the compliance risks in relation to those requirements; • Sixthly, ensuring that adequate controls are in place to minimise or eliminate compliance risks.

At AEL Mining Services, explosives laws compliance has always been and will continue to become part of the overall business strategy. Compliance with local and international explosives legislation and related practices are a nonnegotiable and a pervasive practice implemented throughout the entire organisation and it is performed by all.

14

Blasting News I Third Quarter 2013

Contact AEL

Engage with AEL on Social Media Connect with our professional network of experts on LinkedIn, join our thought leadership conversations on Facebook, follow our latest cutting edge product updates on Twitter and view our perfect blast videos on YouTube.

Contact Directory Cape Town (T) +27 21 842 3901 East London (T) +27 43 745 2169 Johannesburg (T) +27 11 606 0000 Kimberley (T) +27 53 802 6352 Klerksdorp (T) +27 18 477 1062 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 O’Kiep (T) +27 27 713 8597 Rustenburg Bushveld (T) +27 14 594 9300 Steelpoort (T) +27 13 230 3201 Venetia Mine (T) +27 15 575 2335

Blasting News I Third Quarter 2013

Welkom (T) +27 57 352 4073 West Wits Sales (T) +27 18 788 3390 Witbank / Emalahleni (T) +27 13 690 1242 Botswana (T) +267 393 8133 Chile (T) +562 928 1300 DRC (T) +243 997 027 878 Egypt (T) +20 22461 8609 Ghana (T) +233 302 762 633 Indonesia (T) +6221 7592 4498 Mauritius (T) +230 269 1650 Namibia (T) +264 64 403 463 Tanzania (T) +255 22 277 1055 Zambia (T) +260 966 990 945/9 Zimbabwe (T) +263 479 0846

Wealth Unearthed 15

Wealth Unearthed When you unearth copper, you help move energy that can change the world.

Cu I Wealth Unearthed

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