BlastingNewsVOLUME 23 ISSUE 4 2014

Wealth UnearthedPrinted on 100% eco friendly paper

IN THIS ISSUE:

• Electronic detonators - Delivering the optimal advance in Hong Kong

• Partnering for success - Collaboration for business growth and sustainability

• Getting to know AEL in Botswana

Blasting News I Fourth Quarter 20142

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

Cover image: The bustling metropolis of Hong Kong

DisclaimerThis 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.

3 AEL International: AEL’s Electronic

detonators – delivering the optimal

advance in Hong Kong

6 AEL Collaboration: Relationship

building for business growth and

sustainability

8 AEL Africa: Getting to know AEL in

Botswana

9 AEL Knowledge-sharing: Developing the

next generation of engineers

10 AEL in the Field: AEL making its mark

internationally

11 AEL’s Captains of Industry: Who is

Wayne Du Chenne?

Editor’s Note

Welcome to the final issue of Blasting News for 2014. During this eventful year we have shared many of our successes and ground-breaking innovations tailored to add value to our customers’ operations. We thank you for your loyal readership and will continue with our knowledge-transfer and thought-leadership stance in 2015.

In this issue, we offer you a glimpse of some of the strides that we have made in the local and global arenas. In Hong Kong, we proudly deliver optimal advance through the use of innovative tunnelling and blasting applications.

We continue to build relationships for business growth and sustainability at the annual AEL Suppliers’ day. We endeavour to constantly keep you in touch with the AEL world.

Further, in our “Getting to know” series, we introduce you to our Botswana operations and on the home front, we ardently support local universities and take pride in developing the next generation of engineers.

In other news, we provide you with an update of our recent participation at key industry events globally, where we showcased our suite of cutting-edge products and services and in our “Captains of Industry” segment you get to know more about another of our Executive Directors, Wayne Du Chenne.

Finally, as we look forward to embarking on the new year, we pledge to keep you abreast of our cutting edge innovations and share our insights on industry-related topics.

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.

Blasting News I Fourth Quarter 2014 3

Hong Kong is ranked the world’s third most important international financial hub and attracts significant growth and development annually.The city is also known as the world’s most vertical city, the most common view from your window in Hong Kong city centre is probably the window of another 30-storey skyscraper.

The increasing demand for real estate in this bustling metropolis has placed immense pressures on its transportation infrastructure.

Whilst building construction continuously grows upward with larger and larger skyscrapers, it leaves the transportation planners with very little choice but to go underground.

As a first world city, interrupting daily business operations is simply not an option; however, of even greater concern is the safety of its 8 million residents.

Blasting regulations are under strict control of the Mines Division showing zero tolerance to breaching of safety standards.

AEL’s Electronic detonators - Delivering the optimal advance in Hong KongAshlin Pillay

The Ho Man Tin Station (HOM) excavation, a part of the Kwun TongLine Extension (KTE) project situated in Hong Kong began in June 2012 and is one such project that is under strict regulations from the Mines Division.

The HOM project is a cross cut interchange station between the KwunTong Line Extension (KTE) and ShatinCentral Link (SCL).

The strict regimes and densely populated terrain demands the use of innovative means of tunnelling and blasting applications which make use of the latest technological resources.

Excavation and blasting in-between and below this busy business district presented a number of challenges that were associated with designing and constructing a sub-surface transportation network.

The challenges that confronted blasting engineers were numerous, with increased focus on the low powder factor design resulting in low level vibration (PPV), low air overpressure (AOP) limits and no fly-rock.

This industry is continuously driven by technological advancements, requiring innovative thinking and a game-changing approach. The use of SmartShot™ electronic initiation systems in conjunction with ViewShot™ has given the user a higher flexibility in blasting.

An increase in blasting frequency yielded a 426 % increase in material extraction with the use ofElectronic Initiating Systems (EIS) as compared to that of Shock Tube.

This flexibility allowed for larger and deeper benches to be explored while maintaining low vibration and AOP levels with no incidents of fly rock being recorded. More importantly, EIS offers control and reduction in safety related risks faced by those inhabiting areas above or near the construction and allows blasting applications to put human life and comfort at the forefront without compromising technical performance.

Mass Transit Railway (MTR)Corporation contracted theNishimatsu Construction Company to conduct the excavation and blasting

AEL International

Ashlin Pillay - Electronic Field Technician, Initiating Systems

Blasting News I Fourth Quarter 20144

of the HOM station. The KTE project, once completed, would serve to link different areas of Kowloon Bay that were previously inaccessible via rail.The Hong Kong government endorsed all blast parameters to be used by concerned parties.

The Blast Assessment Report (BAR) had to be conducted before any blasting took place in Hong Kong to evaluate all environmental impacts of blasting including noise, ground vibration and flyrock.

The BAR recorded and identified 660 sensitive receivers with the vibration limits in and around the proposed project site. It is from these parameters that the Maximum Instantaneous Charge (MIC) determined by all 660 sensitive receivers and a minimum of 6 critical monitoring points monitored every blast amongst a total of 29 selected monitoring points.

The restrictive MIC in conjunction with the strict regulation of the Mines Division left most contractors in a predicament. These limitations restrict the length of the holes drilled on the bench in order to control and mitigate threats of high vibration levels, AOP and flyrock.

Due to the high traffic volumes on one of the main arterial routes known as Chatham road, road closures were not an acceptable option at any point in

Figure 2. HOM cross cut plan

Figure 1. Early stages of HOM project in 2012

this project. The direction of blasting on all free faces on every bench had to face either the west or north so as to not accidently have flyrock cause any harm or disrupt traffic flow.

The relevant government authorities(Building Department, GeotechnicalEngineering Office of CEDD and MinesDivision) imposed vibration limits that were lower than the average industry standards to further safeguard against such a risk and thus adding further limitation onto blasting contractors.

This conservative approach to the blasting operation impacted directly on the duration and operational costs of the project. Figure 2 indicates the five zones that the excavation was divided into. Zone A to Zone D were excavated using blasting techniques however, Zone E was excavated using mechanical breaking.

Electronic detonators as a solution

Continued cost and productivity measures on mines and construction operations have driven the introduction of new technologies to reduce the overall costs of blasting through the attainment of significant downstream benefits. Despite technological advances in mining equipment and processing plants, blasting remains the most effective and economical tool available to fragment and move rock.

The introduction of electronic

detonators in the mining and civil blasting industry is one such technological advancement and has gained wide acceptance following the realisation of the benefits offered namely; the ability to control the cast of the material resulting in custom made muckpile profiles, improvement in the uniformity of fragmentation and control of ground vibration and other environmental impacts associated with blasting.

The potential benefits of using electronic detonators must be defined for every individual blasting operation so as to justify its initial investment and the downstream savings.Electronic delay detonators provide significant benefits to the blasting community by delivering higher accuracy in the delay design, testability of the detonator network integrity during and after charging.

The alleviation of misfires is aided by the application of the electronic detonator, as the user is able to identify the location, the detonator number in the deck, the row and the delay. This enables total blast control on complicated designs.

Conclusion

The possibilities and benefits of using electronic initiation systems are proving to be boundless in this ever-changing realm of rock blasting.

AEL International

Blasting News I Fourth Quarter 2014 5

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This project clearly demonstrated the benefits of using electronic initiation systems in an environmentally sensitive high-speed construction project.

The precision of the electronic detonators delay timing allowed optimisation of key production parameters such as the charge mass per delay (MIC), the depth of benches excavated and the number of holes drilled in a blast.

All these parameters were improved significantly without causing any negative effects on the rock stability, vibration levels and AOP. In particularly sensitive areas, decking was

successfully introduced by utilising the electronic detonator’s ability to ensure that decks would fire individually. The potential for increasing the excavation rates is possible with double decks and achievable while maintaining all safety and environmental concerns.

Future projects should explore the possibility of using more than two decks to harness the efficiency and environmental benefits as discussed in this article. The implementation of the EIS along with the dedicated software package demonstrated that these tools complement the requirements for a competent blasting engineer to realise the benefits of effective rock breaking.

AcknowledgementsThe author would like to acknowledge Mr Iwata, Osamu (Engineering Manager of Nishimatsu Construction Company) Hong Kong branch office, Mr Caesar Entres (Blasting Engineer) and Mr Gerth Stahl (Blasting Engineer) from the Nishimatsu Construction Company and Mr Julian Wong (Director) from Archie Mining Services (AMS) for their valuable contribution to the data provided to make this article possible.

References1. Method statement for blasting at HOM station (stage 3), document no: 1001/MS/HOM/022 Rev.C, Date: 29 April 20132. Stage 3 Surface Blasting Assessment Report, MTRC Kwun Tong Line Extension, Contract 1001 Yau Ma Tei to Whampoa Tunnels and Ho Man Tin Station, Report No. 1001/HOM/NCC/007A September 2012 – Nishimatsu Construction Company.Ltd and AECOM Asia Co.Ltd3. ISEE 2015 Publication

Various stages of the environmentally sensitive, high-speed construction project

Blasting News I Fourth Quarter 20146

On 31 October 2014 AEL hosted its annual Suppliers’ Day event themed “Collaboration for business growth and sustainability”. Suppliers in attendance have been collaborating with AEL enabling us to be on the cutting edge of new product development, product application and innovation. These suppliers have fully aligned their way of thinking with AEL’s ethos of quality and supplier collaboration enabling the formation of sustainable value-adding partnerships.

Over two hundred suppliers attended the event where Group Managing Director, Schalk Venter shared insights on AEL’s growth strategy. Thereafter delegates were informed about AEL’s sourcing strategy of the future by Executive Director

Relationship building for business growth and sustainability

Supplier of the year award: The overall supplier of the year award was presented to Silcom (Pty) Ltd. Silcom has been a strategic partner who has demonstrated an appetite and drive to improving the quality of materials or services rendered to AEL. They have been a proactive advisor to AEL in terms of future material and service supply constraints and have shown a proven track record in managing input costs thus ensuring material prices are contained. Congratulations to Sander Silvis and his team!

The winners...

Commercial, Trevor Roberts before finally being addressed about AEL’s technology showcase: “Energy of the future” by Executive Director Technology, Liesel De Villiers. Delegates had the opportunity to explore the impressive technology showcase whilst interacting with subject matter experts. Motivational speaker, author and CEO of the Granger Media Group, Alex Granger enthralled the delegates with a dynamic and entertaining presentation on championship thinking.

The conference session was followed by AEL’s Suppliers’ Awards Ceremony where accolades were presented to top suppliers in recognition for their dedication and superlative service to AEL over the past year. Our supplier award selection followed a stringent evaluation process based upon the AEL

AEL Collaboration

Blasting News I Fourth Quarter 2014 7

Category A: Local Raw Material Supplier. Silcom (PTY) Ltd. is a supplier who demonstrates a strong commitment to research and development on a continual basis to improve the material offerings and performance.

Category B: Import Raw Materials/ Goods Supplier. Drahtwerk Elisental understands the conditions under which AEL operates and the volatility of the exchange rates; and strives to offer AEL cost effective solutions.

Category C: Technical Components Materials Supplier. Hammerle Plastic cc embraces and participates fully in AEL’s journey to manage input costs and has shown a proven track record of technical innovation enabling AEL to improve its product offerings.

Category D: Packaging Material Supplier. Transpaco Flexibles embraces and participates fully in AEL’s journey to reduce input costs; demonstrates understanding of the legal packaging requirements and consistently meets AEL’s requirements of on-time, in-full delivery.

Category E: Engineering Services. Sheetlag Construction has a proven safety record in all its dealings with AEL; exceeds expectations and goes beyond the call of duty to deliver services to AEL with unquestionable workmanship, professionalism and reliability.

Category F: Engineering Goods SupplierT.L.T Industrial Supplies cc has displayed an awareness of all the latest technology in the market segment and shares learnings with AEL while continually supplying goods that conform to requirements.

Category G: Bulk Transport Logistics. Stellar Transport has maintained the best safety record overall in service delivery, keeps abreast of all transport-related regulations that may affect AEL business and is innovative in improving the service provided to AEL and its customers.

Supplier Quality Management programme i.e. the suppliers who have been selected and subjected to 2014 SQM audits. The awards comprised eight categories.

The following awards were accepted on behalf of two category winners who were unable to attend the awards.

AEL Collaboration

Blasting News I Fourth Quarter 20148

AEL Africa

Getting to know AEL in Botswana

In Botswana, AEL Mining Services (Pty) Limited strives to meet their customers' needs through maintaining the highest level of safety and improving blasting efficiencies in order to lower final cost per unit of mineral produced.

AEL has supplied explosives, accessories and support to Botswana’s mining industry since 1973, when it was first registered as a local business entity with the registrar of companies.

During 1981, AEL partnered with Debswana Diamond Company (Pty) Ltd to establish local bulk explosives manufacturing facilities at Jwaneng and then later at Orapa. Since then, AEL has upgraded its manufacturing technology on numerous occasions.

In 1999, AEL established a permanent managerial and sales support office in Botswana and upgraded this to a fully-fledged autonomous commercial business in 2001.

Today, AEL has emulsion manufacturing plants at Orapa Central Plant and Jwaneng Mine and explosive distribution sites at Orapa and Letlhakane mines. In September 2009 AEL started a Prime-Load-Tie-in Shoot (PLTS) service at Jwaneng Mine’s Cut 8 Pit Expansion project, and in October 2010, the company diversified its business footprint by commencing the supply of explosives to the four BCL Mining and Smelting (Copper/Nickel) mines and also started a PLTS service at Firestone Diamonds’ BK11 Mine.

As a result of these additional business contracts, AEL increased its total complement from about 37 in 2010 to the current 75 employees of which 69 are local Botswana citizens. AEL

AEL Africa

is committed to employee training, development, social upliftment and advancement.

The company employs experienced mining and mechanical/electrical engineers and artisans who undergo rigorous training in the manufacture, transport, storage and application of explosives products. As a result, AEL offers an after-sales service and consultancy designed to assist customers realise value-added solutions to their mining and blasting challenges.

Customers include leading diamond mines and copper/nickel mines and also various quarry operations supplied through a local distributor.

The company offers the full range of explosives services from distribution, magazines service, down-the-hole supply, to PLTS, as well as blast engineering support, such as audits and designs.

AEL is fully SABS ISO compliant, and has implemented water recycling programmes at its sites.

All open pit operations make use of AEL's electronic detonator initiation systems and two of AEL's customers are fully converted to the Automated Blast Loading and Reporting System that uses Global Positioning System (GPS) to locate blastholes.

Business ContactRonald Joseph Divisional Director – AEL Botswana Tel: +267 393 8133 Mobile: +267 7131 7360 Fax: +267 3938134 Email: Ronald.joseph@aelms.com Suite 208, The Atrium Gaborone, Botswana

Debswana

Orapa

Jwangeng

Blasting News I Fourth Quarter 2014 9

AEL developing the next generation of engineers

AEL Mining Services takes pride in developing the next generation of engineers. In fulfilling our commitment, we hosted students from the University of Pretoria on 23 October 2014 at the Skills Development Centre in Modderfontein.

The objective of the visit was to provide Mining Engineering students with practical understanding of blast optimisation methods so as to contextualise their classroom learning experience.

The day began with a welcome address by AEL key personnel, followed by a

AEL Knowledge Sharing

range of practical product seminars, rounded off with a blast demonstration at the Far Range.

It is one of AEL’s greatest priorities to invest in knowledge transfer of industry best-practice to graduates and ensure we maintain a high calibre of experts within the organisation.

Lindi Mapaila, Junior Mining Engineer and University of Johannesburg graduate, was part of the group of students that visited AEL last year. By the time of completing her studies and entering the workforce, Lindi had a realistic overview and expectation

of the professional journey she was to embark upon. This young engineer is now an intern at AEL.

“My highlights were the blast demo, exposure to the explosives products, the accuracy of electronics versus shock tube as well as the different noise levels and airblast. The information provided by AEL experts was very useful.”

We look forward to engaging with more students in the new year.

Lindi Mapaila, Junior Mining Engineer and University of

Johannesburg graduate

Blasting News I Fourth Quarter 201410

AEL in the Field

AEL making its mark internationally

MENA (Middle East and North Africa) Mining Show 2014The MENA Mining Show which took place from 21-22 October at the Dubai International Convention and Exhibition Centre, UAE. brings together the region’s mining community to promote investment, optimise operations and build relationships.

The conference, an international gathering for mining industry delegates from all over the world saw delegates in attendance from countries as far afield as Ghana, Niger, Ethiopia, Eretria, Sweden, USA and Far East. The event presented AEL an opportunity to showcase its electronics offerings to delegates who were also able to gain valuable information on the future of mining in the Middle East.

One of the most note-worthy presentations at the conference was by David Hale, renowned world economist and CEO of the “David Hale Global Economist”. David delivered an overview and prediction of the performance of the world economy over the next few years which enabled delegates to gain great insights.

AEL representatives at the conference were Thinus Bierman, Executive Director: Africa, Europe & Middle East; Mark Benning, Divisional Director: North East Africa; Christa Esterhuizen, Product Manager International Channels; Sandile Ngubo, Field Electronic Technician and Mohammed Elgharraz, Regional Manager – Burkina Faso. AEL will be present at the 2015 event.

Mining & Engineering (M&E) Expo Indonesia AEL Indonesia participated in the Mining & Engineering

(M&E) Expo held at the Jakarta International Expo

(JIE), Kemayoran from 29-31 October 2014.

AEL’s Carlos Paz, Simon Tose, Rudianto Sitanggang,

Radja Nove Putra and Achmad Annama Chayat

were present at the exhibition with the objective of

networking with potential customers while showcasing

AEL’s product and service offerings.

The impressive exhibition highlighted the importance

and value of various kinds of products and services

related to the mining and minerals processing industry.

Follow AEL’s updates from these key industry events via our social media platforms:

AEL Mining Services @ael_mining

David Hale Global Economist (R) key-note speaker at the event

AEL Mining Services exhibiting at the show

A constant stream of delegates visited the AEL stand

Blasting News I Fourth Quarter 2014 11

Who is Wayne Du Chenne?

Each quarter, we profile one of our Executive members to offer our readers insight into AEL’s leadership. In this issue we focus on Wayne Du Chenne, Executive Director – AEL SADC region.

Track Record

Wayne heads up a portfolio comprising businesses servicing the surface and underground mining markets as well as industrial customers in the SADC region.

He joined AEL in 1993 as a technical representative and was appointed as an explosives engineer in 1995. Wayne played a key role in developing the value-added blasting concept and served as project manager in this area.

In 2003, he was appointed Managing Director: Central Africa, responsible for AEL's businesses in Zambia and the DRC. Subsequently Wayne joined the AEL Executive Committee as Executive Director - Global Business Services, responsible for the services portfolio across a range of AEL activities including Commercial Management, Nitrates, Initiating Systems, Explosives, Products-to-Markets, Marketing and Communications, Equipment Services, Special Projects, Mining Optimisation, Supply Chain and Logistics.

Wayne, who holds an MBA degree, took up his current position in 2013.

Wayne’s passions

Even though Wayne has a passion for fast cars, being part of the AEL family has instilled in him a drive for safety in every arena. Therefore he has chosen to drive one of the world’s fastest yet safest cars – Audi RS5.

His other passion is local and international deep sea diving with his beautiful wife and fellow diver Rita by his side.

For more information on our SADC operations, visit www.aelminingservices.com

In our next issue we introduce Trevor Roberts, Executive Director – AEL Commercial. Wayne Du Chenne is Executive Director – AEL SADC region

AEL’s Captains of Industry

AEL Mining Services Tel: +27 11 606 0000 Adress: 1 Platinum Drive, Longmeadow Business Estate North,Modderfontein, 1645 www.aelminingservices.com

AEL Your Global Explosives Partner

Southern Africa - 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 Burkina Faso (T) +226 503 60329 DRC (T) +243

997 027 878 Egypt (T) +20 22461 8609 Europe +27 82 553 9080 Ghana (T) +233 302 762 633 Guinea (T) +224 631 339192 Indonesia (T)

+6221 7592 4498 Mali (T) +223 207 93053 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

Season’sGREETINGS

May you and your family enjoy this festive season and have a prosperous

new year!