performance bond blasting - utilising energy to create opportunity - johan

|6 October 2014 1

Performance Bond Blasting – Utilising energy to create opportunity.Johan Duvenhaga

(Divisional Director – Southern Africa East Cluster AEL)

|MasterClass | 6 October 2014 2

Together, how do we utilise energy more effectively?

|MasterClass | 6 October 2014

We listened to you

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Why waste expensive energy?


We listened to you

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Long on promises, short on delivery


We listened to you

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Complex systems


We listened to you

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Performance guarantee


AEL Value statement

Wealth unearthed through meticulous care by using well controlled energy…

But what does that do for the customer?


Value proposition

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Confidence CourageCare


Value proposition – Identify

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One on one meetings

How to get information to negate poor blast

Leading questions

Listening

Value adding and Bankable projects

Visit reports Brad meetings



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AEL On-CallCalibration and weighbridge



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The Value Continuum

Product

supply

Down-the-Hole

services

Prime,

Load & Tie

Prime,

Load, Tie

and Shoot

Rock on floor


Value proposition – Plan the project

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In depth discussions with

Mine personnel

AEL personnel

Consultants


Value proposition – Set up project team

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Team consists of

Project sponsor from the mine

Project champions

Steercom between AEL and mine


Value proposition – Baseline assessment

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Blast design and planning Fragmentation Muckpile Profile Muckpile Throw

Drilling Blasting Load & haul Crushing Milling Plant

Waste Ore Blast design Relationships Processes Profit

Impact of blast design

Relationships to be established

Processes to be followed

Value calculator – financial models

Value chain

1

2

3

4

Benchmarking


Value proposition – Agree on project outcomes

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TimelinesKPAsObjectives Wealth creation model

Platinum price Ore body

Revenue Grade Fragmentation

KG produced Dilution SweepingsQuality blasting

practices

Profit/Wealth

Tons milled Tons broken Stoping width

Tons trammed Tons broken Face length

CostsService availability

Face advanceBlast

frequency

Advance per blast



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Performance bond agreement

Back to basics training

Blast clinic Basic principles of blasting



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Performance guarantee timeline

• Base Case• Establish project teams

• Set-up

• Start delivering on projects

• Continuous monitoring

• 40% of commitment delivered at end of Year 2

• Continue to deliver on projects

• New Technology• 60% of commitment delivered at end of Year 3

• Continue to deliver on projects 80% of commitment delivered at end of Year 4

• Start negotiation for contract roll over 100% of commitment delivered at end of Year 5

1 Year value R 25,000,000



4 Year value R 100,000,000

5 Year valueR 125,000,000


Value proposition – Trial period

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AEL On-CallOn-bench calibrations and quality control




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Monitor and record




Blast-i Lite

Mine planningBlast Layout

Manager

Output of data to customer and AEL

Business Intelligence

Planner

Controller

Logistics controller and explosives engineer

AEL Blast-I control room

Data capture

Hole positioning GPS

Wireless internet communication

Load blast plan on PDA MMU


Value proposition – Report

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Analyse data Draw up report

Feedback to Steercom


Value proposition – Report

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Analyse data Draw up report

Feedback to Steercom

Value calculator


Value proposition – Sign-off

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Performance bond outcome

Value-sign offMutually agreed benefits

Value Tracking


Value proposition – Confidence, Courage, Care

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Excellent blast –Blasting to specification



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AEL On-call24 Hour Engineering on site….

Priority

Immediate 24 hours 48 hours

1. SHE officer2. AEL regional

manager3. Service level

contractor4. Feedback ENG/OPS

administrator

1. ENG breakdown2. ENG superintendent3. Service level contractor4. AEL technician5. ENG superintendent6. Feedback Eng/Ops

administrator

1. ENG/OPS administrator2. Quality officer3. Product spec4. MMU calibration5. Feedback Eng/Ops administrator



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AEL On-call24 Hour Engineering on site….

Call centre

SHE officer Quality officer Engineering superintendent

Regional manager

Service level contractor

Product specifications

MMU calibration

Service level contractor

AEL technician

SHE officer Operations manager Engineering superintendent

Call centre



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|6 October 2014 30

MASTERCLASS