palabora news issue 07-2014..pub- news issue 07-2014.pdf · a monthly newsletter for palabora...

A monthly newsletter for Palabora Copper (Pty) Ltd Issue 7 –2014

2014 was a busy and challenging year for

everyone at Palabora. Through our dedi-

cated teamwork and commitment we

were able to see the year through. The 1st

August this year also marked the first

anniversary of the company under a new

opera"ng name of Palabora Copper, with

new owners. Mr Jinghua Han took office

in 2013 as the Chief Execu"ve Officer and

has been at the helm of the company for

a full calendar year.

Business growth

It was pleasing to finally receive the long

an�cipated approval to proceed to execu-

�on stage of the Li� II project. This great

news from our shareholders was not only

for the mine but also contractors, the lo-

cal communi�es in respect of business

and employment opportuni�es and our

employees. Whilst awai�ng the final deci-

sion from the shareholders, work was be-

ing carried out with remarkable mile-

stones. Great progress has been made in

the first phase of the development work

which included the declines, switchbacks

and airways; this work is nearing comple-

�on. The development phase has taken

the project 1100m from the bo(om of the

declines. We are geared up for the com-

mencement of the next phase of the de-

velopment work which will include the

development tunnelling of the produc�on

level and undercuts.

A number of new ini�a�ves were intro-

duced and implemented during the year,

on the divisional and departmental levels,

with others being completed from the

previous year’s plans. Substan�al invest-

ment was made on magne�te business. A

new belt filter plant was constructed and

the magne�te separa�on plant was up-

graded. We are currently conduc�ng trials

in prepara�on of the official commission-

ing of the plants. The belt filter plant will

enable us to force-dry six million tonnes of

magne�te a year to meet our export de-

mands. The magne�te booster plant will

process and upgrade the magne�te from

58 percent iron oxide grade to 64.5 per-

cent magne�te grade.

Copper/Vermiculite/Magne"te

The smelter is s�ll struggling but perform-

ing be(er than 2013. Considering the full

value chain and with good condi�ons the

smelter should fly in 2015. Although VO is

a small business it provided strong sup-

port to PC with performance, tonnage and

volume. For magne�te we need to op�-

mise our marke�ng and logis�cs strategy

from site to port to cope with global chal-

lenges. With these three components of

our business performing to their capacity

we should reap the benefits next year.

Cost controls

In order to be able to fund the project,

ensure the future of Palabora Copper and

the journey into 2033, we need to find

ways to minimize costs. I am pleased with

the commitment and contribu�ons from

all cost owners who worked together with

our Finance team and contributed to-

wards the cost cu:ng drive. We needed

to embark on this exercise in order to be

able to deliver the project profitably and

create value for our shareholders. Going

into 2015, Finance will con�nue to moni-

tor expenses and provide assistance to

cost owners to diligently manage expens-

es. To ensure sustainability of our busi-

ness we will con�nue the discussions

around safety, produc�on stability and

cost controls.

It is pleasing to see a decline in a number

of injuries compared to the previous year.

We have recorded 12 LTI’s year to date,

which is less compared to the 15 that

were recorded in 2013. We must guard

against complacency and con�nue to look

a�er our team mates and always priori�ze

on safely ge:ng the job done.

One of the great things that keep me en-

thused is the level of commitment and

dedica�on demonstrated by everyone at

Palabora. It is a pleasure for me to be

working with a courageous, reliable exec-

u�ve team, capable of leading their teams

whilst providing the much needed support

to me and the Palabora Board in order to

meet our objec�ves. I am confident that

with the skills, wealth of experience and

intelligence that we have at Palabora, we

will make this company great.

To all our employees, contractors and cus-

tomers, thank you for the role you played

and the con�nued support to the compa-

ny strategy. Whatever it is that you will be

focusing on during this period, remember

to make safety a priority. Happy holidays!

Spec ia l point s of

int erest :

• Palabora CEO reflects

on the ac�vi�es of

2014

• PC and Ensight re-

ceive awards in the

industrial energy effi-

ciency category

• Reliability Engineering

team-addresses sys-

tems and processes

bo(lenecks

• A(rac�on and reten-

�on of People with

Disability

In th i s i s s u e

Mr. Han’s end of year mes-

sage

1

PC runner up at Eskom eta

Awards

2

Reliability Engineering 3

Energy Leadership Pro-

gramme awards

4

Success stories: Robert

Mhlanga and Jonas Ndlovu

5

A(rac�on and reten�on of

PwDs

6

Garnishee Project ends 7

Social ac�vi�es 8

Year end message from the Chief Execu"ve Officer

Writes Maggie Mapurazi

Palabora News

3

2

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Palabora Copper and its energy saving partner Ensight

Energy Solu"ons, received an award as the runner-up

in the Eskom industrial energy efficiency category. The

awards were held at the University of Johannesburg

on 28 November 2014.

For 25 years Eskom has been encouraging energy effi-

ciency by celebra�ng those who have made substan�al

savings in their businesses, homes, schools and com-

muni�es, through the Eskom eta Awards. These pres-

�gious awards were ini�ally established in order to

create awareness and encourage ac�on in the energy

efficiency field. They have grown from strength to

strength, and form part of Eskom’s drive to ensure a

sustainable electricity supply long into the future.

Palabora and Ensight were amongst the 200 entries

which were received in 2014 for energy efficiency pro-

jects in the industrial, commercial, young designers,

innova�on, residen�al, energy efficiency awareness,

and community and energy savings in house hold cate-

gories. Judging of the nomina�ons was done by a pan-

el of energy and sustainability experts in the energy

and sustainability field.

Dr Steve Lennon, Eskom’s group execu�ve of sustaina-

bility says “for many years we have been focusing on

encouraging energy efficiency in South Africa. The qual-

ity and quan�ty of applica�ons for the awards are im-

proving every year, and we see much more focus on

sustainable energy solu�ons. We believe that South

Africans are embracing the idea of energy efficiency

and star�ng to take responsibility for reducing their

energy footprint. It’s also great to see the commercial

and industrial sectors priori�zing energy efficiency.”

Represen�ng Palabora at the gala event were Kobie

Naude, GM Asset Management and Wendy Maritz,

Manager Project Services, whilst Rod Welford and Wil-

lem den Heijer represented Ensight.

To date, the Energy Leadership Programme has saved

Palabora Copper in excess of R 62-million in energy cost

savings. Funding of R 23-million has also been received

from Eskom, all as a result of the Energy Leadership

Programme. The programme is however not only

about saving costs and energy, but the environment as

well. A total of 87,966 tons of harmful carbon dioxide

emissions was also reduced and water savings of 108-

million liters was achieved to date.

Acknowledging the contribu�on from Palabora Copper,

Dr. Willem den Heijer, said “we wish to thank each and

every person at Palabora for his or her contribu�on and

dedica�on to changing the energy reality of Palabora

Copper. The hard work is however not over, but actu-

ally beginning to ensure that Palabora Copper con�nue

to build on the legacy of the Energy Leadership Pro-

gramme.”

Palabora Copper, Ensight; runner up for the 2014 Eskom eta awards


Palabora Copper and Ensight at the eta Awards

L-r: Dr Steve Lenon - Eskom Group Execu"ve Sustainability, Dr. Willem den Heijer - Ensight Programme

Manager, Kobie Naude - General Manager Asset Management, Wendy Maritz - Manager Projects, Thava

Govender - Eskom Group Execu"ve: Transmission and Customer Services.

3

The Palabora News BG<HIJ<< IKL:MNJKJIOBG<HIJ<< IKL:MNJKJIOBG<HIJ<< IKL:MNJKJIO

Such monitoring requires a dedicated team to be able

to analyse and make recommenda�ons essen�al to

prevent any losses or recurrences. The Reliability Engi-

neering sec�on, is ac�vely engaging with various sec-

�ons on site and is making a valuable contribu�on to

the way Palabora addresses daily system and process

bo(lenecks.

With a focus on inves�ga�ng failures with significant

impact on our produc�on, the team has adopted the

three �er reliability engineering method of analysing,

iden�fying root causes and recommending appropriate

correc�ve measures. This method complements each

other in order to enhance the life span

of assets and provide guidance on risk

management while equipping the busi-

ness to proac�vely eliminate any asset

losses.

This three �er reliability engineering

method is derived from the ISO 55000

standards which are per�nently inte-

grated with ISO 14001:2004 and ISO

9001:2000, also provides opportunity to

plan, act and review.

The integrated processes of

reliability engineering are not

only aimed at iden�fying fail-

ures but more cri�cally at

constraining the recurrences

of these failures which pose a

major risk to produc�on de-

lays and increased mainte-

nance costs. Reliability Engi-

neering is geared towards

improving product systems’

safety, reliability and main-

tainability.

Reliability analysis therefor eallows the analyst to

iden�fy problems such as machine design, system

design, construc�on, unsa�sfactory and mainte-

nance ac�vi�es as well as inadequate inspec�on

plans. This analysis process follows the Pareto prin-

ciple also referred to as 80/20 rule which allows the

team to iden�fy 20% contributors to 80% of failures

encountered.

The approach and methods used across the site

have since proven to be successful. Recommenda-

�ons made since the establishment of the Reliabil-

ity Engineering sec�on, have saved Palabora from

incurring unnecessary costs or loss in produc�on.

A few examples include; early detec�on of the Mill Pin-

ion Gear high temperature, which prevented failure

that could have resulted in a 48 hour produc�on loss. A

root cause analysis was conducted on a pulverizer

which was unstable. Recommenda�ons on this issue

resulted in cost savings and improvement on the pul-

veriser reliability. A long �me mystery on the electric

motor was resolved a�er a root cause analysis on SO2

blower. A recommenda�on was extended to eleven

departments including services as a result of the mantle

failure due to lack of lubrica�on. Underground recog-

nized a saving, a�er the LHD bucket premature failure

was iden�fied by Reliability Engineering. The failure

could have resulted in major loses due to LHD down-

�me. Facilita�ng the process of reducing UG mobile

equipment damages resulted in the reduc�on of un-

scheduled down�me and maintenance costs.

Reliability Engineering; mapping out our business processes


Reliability Engineering team

L t r: Johan Verster, Simon Boloko, Henk Vorster, Clarence Magwaza, Jabu Mnyakeni,

Francois du Rand, Jan Mashele and Faizel van Niekerk.

A large opera"on like Palabora, with many sec"ons and varying opera"onal processes, u"li"es and systems,

require constant iden"fica"on and management of asset reliability risks that could adversely affect our busi-

ness opera"ons.

Dye penetrant inspec"on which is performed on gears in order

to detect any cracks, porosity or damage on gear teeth.

Typical indica"ons found on stainless steel duc"ng while

performing dye penetrant inspec"on e.g. cracks, porosity,

undercut or slag.

4

The Palabora News EIJ:TU LJ9;J:<VHL P:MT:9KKJEIJ:TU LJ9;J:<VHL P:MT:9KKJEIJ:TU LJ9;J:<VHL P:MT:9KKJ

Energy Leadership Programme, changing the energy reality of Palabora


Managers who are part of the Energy Leadership Pro-

gramme (ELP) were presented with cer�ficates of ac-

knowledgment for the ac�ve roles they played since

the implementa�on of the programme. The cer�fica-

�on ceremony took place on 03 December at Asset

Management lapa.

Palabora in partnership with Ensight Energy Solu�ons

started the ELP in 2012 wherein leaders across the

site were iden�fied and formed energy leadership

teams. The teams, working with Ensight, were tasked

with exploring and working through the energy-saving

ideas that had been iden�fied and determining which

ones could be implemented in a sustainable manner.

The ELP programme was implemented with the ob-

jec�ve of reducing energy wastage in Palabora, and

has since demonstrated financial value for the compa-

ny.

Sydney Kopong, Brave Mushikita, Erick Mualusi, Hen-

drick Croukamp, John Makgatho, Simson Tekane and

Fabian Gono, have been ac�vely exploring energy

saving ideas, in their respec�ve areas which contrib-

uted in the overall company These leaders contribut-

ed for their contribu�on towards the successful im-

plementa�on of the energy saving ini�a�ves, which

led to reduc�on in energy costs since the implemen-

ta�on of Energy Leadership Programme for the past

two years.

Two more awards were also presented to the Gov-

ernance Group members of the ELP, namely

Murehwa Mangere and Pandi Mhlanga.

Speaking during the ceremony, Dr Willem den Hei-

jen, Ensight Programme Manager, said that he is

proud to see Palabora on the list of companies that

are energy conscious, and to see individuals dedi-

ca�ng their �me and exper�se to collec�vely

change the energy reality of Palabora. He noted

“this programme, with your contribu�on, has an

impact beyond the fence that surrounds Palabora.

It is making a real impact on the environment,

South Africa and the world.” He went on to share

some of the achievements saying “to date,

Palabora’s achievements has translated into ener-

gy savings enough to power 72 000 households for

1 year, greenhouse gas or harmful carbon dioxide

emission reduc�ons with a combined weight of

12000 fully gown African elephants, enough water

savings to give 1 900 fully grown elephants for a

year, coal savings enough to drive a steam train for

240 000km, enough catbot as if you removed 400

cars from the road for a full year.”

It is not surprising that Palabora became a runner

up in the Eskom industrial energy efficiency cate-

gory for 2014.

Receiving award from Kobie

Naude, GM Asset

Management.

Pandi Mhlanga - Lead Advisor

Business Valuation,

Management Reporting.

Receiving award from Kobie

Naude, GM Asset

Management.

Murehwa Mangere - Lead

Advisor Business.

Receiving the award.

Sydney Kopong - Manager

Concentrator Operations.


Simson Tekane—Superintendent Vermiculite Plant and

John Makgatho - Manager Surface Mining and VO


Hendrick Croukamp -

Superintendent

Instrumentation—Mining

maintenance.


Fabian Gono - Project

Engineer, Engineering

Services.


Eric Mualusi - Superintendent

Tankhouse Operations,

Refinery Operations.


Brave Mushikita - Manager

Smelter Operations.

The Palabora News SGWWJ<< SOM:HJ<SGWWJ<< SOM:HJ<SGWWJ<< SOM:HJ<

Robert Mhlanga is seeing the benefits of staying com-

miXed and focused on his studies. Robert only had

grade 10 when he started working at Lebone.

Robert learned about the ABET programme being

offered by Palabora, and he immediately leapt at the

opportunity to advance his qualifica�ons. He has since

gone through the levels he registered for and received

his NQF1 qualifica�on, which advanced him to acquire

a job as an operator at the Refinery Tankhouse Opera-

�ons.

The benefits that he sees now overshadow the mock-

ing he got from his friends and peers when he started

a(ending the classes. He recalls “when I started focus-

ing more on learning through ABET, some people dis-

couraged me and told me that ABET is for old people.

Reaching my goal was important to me and I wanted

to make sure that I achieve it. I know that without a

qualifica�on, it will be difficult to get a be(er job in the

industry. Having a qualifica�on opens doors for every-

one, and I want to see myself having moved from be-

ing an operator to an engineer.”

Robert manages his �me between work, studying and

family. He is proud to have gone this far and is aiming

to finish his Mathema�cs level and be able to move

onto the next programme.

ABET has become a tool for career progression, and

closes the gap within the sectors by ensuring that peo-

ple are becom-

ing literate

which leads to

them having a

clear under-

standing of

health & safety

programmes,

skills develop-

ment and learn-

ing progression.

Reaping the benefits


Jonas Ndlovu worked for many years as an operator

since he joined Palabora in 1993 at the Refinery

Tankhouse and later moved to underground as a

Lube truck operator in 2004.

Throughout his employment, he worked hard to ad-

vance his skills and took on various roles to learn more

about the business. He volunteered in the RAFS Proto

team in 1995 un�l 2010 to fulfil his passion for safety.

Whilst at underground he saw the opportunity to de-

velop himself and registered to do Morden SHEQ Risk

Management course, and later enrolled for the Train-

ing Assessor course in Pretoria. Jonas was appointed

to a Site Safety and Training Prac��oner with Byrnecut

in 2012.

With the experience he has and the qualifica�ons ac-

quired, he is now competent to train and assess peo-

ple, conduct risk assessments and assist with the de-

velopment of site specific procedures, to name a few.

He has just finished the Safety Officer’s course –

Comsoc 1 with TR Safety Consultants. The course

equipped him with skills and knowledge on Mine

Health & Safety Act, understanding the role of safety

officers, inves�ga�on systems and other safety related

elements.

Jonas aim to seize every opportunity to advance him-

self, saying “I am grateful to the opportunity to be able

to progress in line with what I am passionate about

which is safety. I look forward to a(ending the Com-

soc 2 which will credit me to get a diploma qualifica-

�on.

I am eager to learn and understand more about the

requirements of the Health and Safety Act and the

legal func�ons of chief safety officers. This is just the

beginning for me, I am aiming high and only with dedi-

ca�on can I get to achieve my goals.”

‘Great success come in small packages’ is a saying that is used very o\en in life. Many people struggle in life before they can get to their desired reach. With the

same token, there some people who believe that it requires some work, dedica"on and commitment to lay the founda"on for their success.

5

The Palabora News CMKL]H9IWJCMKL]H9IWJCMKL]H9IWJ

Palabora has started raising awareness across the

business on working with people with disability. The

purpose is to educate and provide a beXer under-

standing about the various disabili"es.

This ini�a�ve will also assist people with disabili�es

(PwDs) to understand and be free to disclose their con-

di�ons and be able to receive professional assistance,

accept, embrace and deal with and embrace their con-

di�ons and be able to recognize poten�al risks.

In order to get a full understanding of how to put this

plan into ac�on and ensure its sustainability thereof,

key role players were invited to a(end training facili-

tated by Kakwezi Business and Training Services. Two

sessions took place at Cleveland Training Centre during

12th and 13th December.

The first day of the programme included discussions

and presenta�ons on the context of disability in South

Africa, the business case for the employment of people

with disabili�es and how businesses can benefit from

employing PwDs. In order to fully comply with the

BBBEE requirements, Palabora is expected to demon-

strate the number of PwDs in its employ.

The training helped a(endees to understand the differ-

ent types of disabili�es, which include visible and invis-

ible disabili�es, with an example of the la(er being

a(en�on deficit disorder. It was emphasized that the

various types of disabili�es would therefore require

employers to manage them differently and to find

ways to deal with each type. It is not a ma(er of what

employers may be able to or feel comfortable to ac-

commodate, however, it is a ma(er of skills reten�on

and compliance with the South African Law.

Palabora is commi(ed to working with people with

disability and will not overlook the many factors that

can contribute in crea�ng a free barrier environment

which will allow for a more reliable accommoda�on for

all PwDs.

Pu^ng the law into prac"ce

AXrac"on and reten"on of people with disabili"es

Writes Palesa Mthethwa

AXending the training.

Peet van Rensburg, Phemelo Moletsane and Expect

Ntsepe, were amongst the people who aXended the

training on working with people with disability.

Also in aXendance: Pauline Liversage - Superintendent

Magne"te & Vermiculite. Training took place from 12-13

December at Cleveland Training Centre.

6

The Palabora News HR/S9`JOUHR/S9`JOUHR/S9`JOU

The Garnishee Project that Palabora Copper em-

barked on in 2012 has finally come to an end. The pro-

ject focused on finding ways to rescue employees who

became enslaved in debts due to shady creditors.

Following the outcomes of the inves�ga�ons, Palabora

intervened to ensure that employees were not com-

promised. After a protracted legal battle with the credi-

tors, the High Court issued an order in favour of

Palabora Copper. Over R2 million in employees’ income

was saved as a result of the company’s intervention.

One of the findings from the investigations conducted

during the project was that creditors would charge in-

terest rate of up to 110% on short term loans instead

of complying with the recommended percentage as per

the New Credit Act (NCA).

General Manager HR, Maboko Mahlaole confirms that

there’s been a positive feedback from employees who

benefited from this project and “a good trend in finan-

cial accountability and management are evident.”

He says “as part of our ongoing support to employees,

effective January 2015 Financial Life Skills training will

be offered as part of the training suite by the Training

Department, facilitated by Old Mutual. The training will

cover various aspects of expenditure such as the new

credit act, understanding of the Garnishee Order, en-

tering into a Credit Agreement and living within budg-

et.”

Where there is a need employees are urged to attend

this training to enable better management of personal

finances.

“As we round off the year and head towards our fes�ve

season it would be wise to remember that purchasing

beyond our means will only bring financial stress in the

New Year. Do not get caught in a spiral of debt”, cau-

�ons Maboko.

Garnishee Project ends


Leading the Garnishee Project.

Tonic Ngwenya, Human Resources Officer, was assigned

to champion the project since its inception in 2012.

Underground mining Rehab and Civils section in collaboration with TBM, initiat-

ed a safe driving campaign aimed at raising awareness about unsafe behaviour

on the roads during this silly season.

The camping, themed Arrive Alive was officially launched 04 December at the

Palabora and Hans Merensky intersection. A wrecked vehicle, sponsored by

TBM, was unveiled and will be permanently displayed for the duration of the

campaign, to remind all motorists, passengers and pedestrians about the conse-

quences of reckless driving.

In line with the theme of the campaign, employees are constantly reminded of

the various contributing factors that could lead to an accident, such as texting

whilst driving, drinking and driving, speed limit, fatigue and unsafe overtaking,

amongst others.

The whole concept enhances the South African Arrive Alive campaign and is fo-

cused around helping motorists and pedestrians alike to be responsible on the

roads.

Drive safely on the road, do not become asta"s"c

Writes Palesa Mthethwa

Standing next to the wreck.

Francois Joubert, Safety Officer from TBM, shared the idea to display a wrecked

vehicle to help drivers to realize the consequences of reckless driving.

Unveiling the wreck.

Front le�-right: Paul Botha, Kobie Naude, Theo Rossouw, Jerry Pretorius, Jus"ce Lelope, Zhim-

ing Ju, Jan Theron

Back le� –right: Frans Mathebula, Pierre du Preez, Danie Payne , Jan-Karel Spies, Sarie van Wyk,

Francois Joubert, Colt Mdluli.

7

The Palabora News OGO 9I; AbMGOOGO 9I; AbMGOOGO 9I; AbMGO

Spreading Christmas Cheers


Employee Rela�ons, Support Services, OD & Talent contributed money from

their own pockets and bought food parcels for the needy children in the com-

muni�es. The team targeted needy children from eight drop in centres including

Maphutha Malatji Hospital.

Finance end of year celebra"on


8

palabora news issue 07-2014..pub- news issue 07-2014.pdf · a monthly newsletter for palabora...

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