All Aboard Q4 2015 (LR)

AEL supports ALL ABOARDMandela Day Fourth Quarter 2015 I Ethics Line: 0800 205 280 AEL's running club makes great strides at the Soweto Marathon AEL expands South American Operation

Editor’s Note Dear ColleaguesContents As we reflect on 2015, let us celebrate our successes! We have proven that as the AEL family we possess the tenacity and drive to3 AEL Paying it Forward: AEL supports Mandela Day 2015 rise above any circumstance and emerge victorious. It’s now time4 AEL Knowledge Sharing: AECI at South African Chemical Institute (SACI) to focus our energy on achieving new triumphs in 2016. Convention5 AEL International: AEL expands South American Operations Image sketched by AEL’s Some of the highlights in this issue include snapshots of the past6 AEL Energy: AEL’s running club makes great strides at the Soweto Marathon Mbuyiseni Thwala year at our AEL sites globally.7 AEL Safety: Advancing the “Safety First” philosophy at the PETN plant8 AEL Movers and Shakers: Meet Ronald Huggins In our AEL CSI section, we demonstrate that AEL is fully10 AEL #didyouknow? committed to assisting the communities in which we operate11 AEL Values: Our Bigger Values and conduct our business. You get a glimpse of our initiative in12 AEL Quality: Quality E-Learning Platform Tembisa during Mandela Day.13 AEL Quality: Introducing Quality Champion, Ajith Jugdeo14 AEL Family: Babies on Board The AEL Energy section turns the spotlight on AEL’s running club14 AEL Family: Wedded Bliss who participated in the recent Soweto Marathon and achieved14 AEL Family: Reaching New Heights outstanding results.15 AEL Family: Message from the AECI CEO, Mark Dytor Under our AEL International section, we celebrate our Latin American team who are expanding AEL’s footprint with a more targeted approach and ensuring greater engagement with existing and potential customers. Alois Kwenda shares insights from AEL’s recent presence at the Exposibram conference in Brazil. Safety remains one of our primary focus areas. In our AEL Safety section, we inspire our workforce with stories of exceptional Safety achievements. Read about the inspiring account of Tumelo Mashua who is making strides in the safety arena at the PETN plant. Finally, in our AEL Family section, we celebrate the birth of the newest members who have now joined the AEL clan. We also congratulate our elated newlyweds as they embark on their journey of love. We welcome your stories for the next issue in March 2016. Please e-mail eubulus.pillay@ aelms.com We trust that you will be inspired and invigorated to face 2016. Here’s to a productive and prosperous new year! EubulusCover Image: AEL Running Club at the Soweto Marathon Contact Details: Eubulus Pillay - All Aboard Editor I Tel: +27 11 606 0313 I Fax: +27 11 605 0000 I [email protected] I www. aelminingservices.com2 All Aboard © AEL Mining Services I Fourth Quarter 2015

AEL Paying it ForwardAEL supports Mandela DayIn support of the annual Mandela Day campaign, AEL AEL’s Group Human Capital Business Partner, Thabo Nkoane, (pictured above in blue shirt)donated books that address youth-related challenges to engaging with learners and teachershigh schools in Tembisa. 3The books are targeted at Grade 8 and 9 learners, andaimed at highlighting issues facing today’s youth such aspeer pressure. AEL believes the learning material will helpequip learners with knowledge to confidently combat andovercome these challenges.In addition to Life Orientation skills provided in the contentof the books, learners also have the opportunity to improvetheir English proficiency through the promotion of reading.A total of 600 books were donated to each school. Theschools include Boitumelong, Ingqayizivele, Tembisa Westand Phomolong Secondary Schools. The donation waswell received by the principals and teaching staff whoappreciate the valuable content of the books.AEL’s book drive campaign was supported by the MathsCentre which AEL sponsors to improve maths and scienceliteracy in Tembisa high schools. AEL’s relationshipwith the Maths Centre has seen schools benefit fromteacher development and learner support initiativeswhich constantly deliver outstanding results in learningoutcomes.“Phomolong Secondary School would not be the reputablelearning institution that it is if it were not for AEL’sunwavering support. We pride ourselves in delivering a100% matric pass rate which sees a large number of ourstudents pursuing Bachelor’s degrees at the Universityof Witwatersrand. This investment will enhance our workaimed at ensuring effective teaching and learning so as toimprove the quality of education in our schools.” said theschool’s principal, Mr Thoka.AEL representatives were led by Group Human CapitalBusiness Partner, Thabo Nkoane who believes in corporatecitizenship and that every day should be Mandela Day.The Maths Centre was represented by Confident Nkwaziand Shepherd Chigogo who are committed to improvingthe quality of maths and science literacy in disadvantagedcommunities.All Aboard © AEL Mining Services I Fourth Quarter 2015

AEL Knowledge SharingAECI at South African Chemical Institute (SACI) ConventionAECI participated inat the 42nd SACI Convention from To set AECI apart, staff worked with the organisers tothe 30th November to the 4th of December 2015 at the launch a competition for delegates to stand a chanceSouthern Sun Elangeni Hotel in Durban. to win AECI branded collateral. This was an exciting opportunity to engage in further conversation andTwo AECI postgraduate students, Busi Nzolo and promote AECI’s value proposition.Valeria Xaba, represented AECI in a compellingmanner. The SACI Convention is attended by industry thought leaders who bring a wealth of knowledge andThe conference was attended by 290 delegates that innovations to share in the forums and discussionsvisited the AECI stand were either Masters/PhD held. AECI’s brand and value proposition were wellstudents, or research experts. represented and effectively communicated.AECI staff shared information about AECI’s corebusinesses; availability of funds for researchpurposes; instrumentation for chemical analysis;chemical products (both inputs and outputs) as well asgeographic location of laboratory facilities. Delegateswere interested in discovering new innovations touse or integrate into their research. Other exhibitorsincluded Microsep; Peak Scientific; and Perkin Elmer. AEL and AECI staff manning the AECI information desk4 All Aboard © AEL Mining Services I Fourth Quarter 2015

AEL InternationalAEL expands South American operationsAEL is growing its already established base in South America AECI representatives with delegates at Exposibram 2015by going direct to customers with explosive products, on-sitesupport and blasting optimisation. 5This is according to Alois Kwenda, AEL General Manager forBusiness Development for South America and West CentralAfrica, who says AEL’s business model in the region previouslyprovided for the supply of products to customers throughdistributors.“We are now expanding by offering our full suite of products andtechnical expertise in South America directly to our customersto ensure quality throughout both the supply and application ofexplosives on site,” Kwenda says.Kwenda says the expansion in this region by AEL, has exceededexpectations since they started offering direct supply in June.“We have already participated in three tenders in the region andare conducting several demonstrations of electronic blastingsystems with potential customers,” he says.Kwenda and his team recently exhibited as part of AECI atone of the largest mining trade fairs in Latin America, theInternational Mining Exhibition (EXPOSIBRAM) 2015, between14 and 17 September 2015. The annual exhibition was held inBelo Horizonte, Brazil and received over 50 000 visitors.“This was a great opportunity to meet with existing andpotential customers and to be able to demonstrate to themthat we are increasing our presence in Latin America and areprepared to do business with them,” Kwenda says.He adds that AEL aims to increase its supply of electronicblasting systems and bulk explosives to South Americanmarkets, particularly in Brazil and Chile, and that safety is thenumber one issue for these customers.He adds that AEL also aims to expand its on-site technicalsupport in South America to help maintain the highest safetystandards and optimise mining operations.“Mining operations are looking for suppliers that not onlydeliver products but that can come up with solutions thatincrease their operational efficiency, which we can achievethrough our suite of explosives, blast initiating systems andtechnical support through blast optimisation teams. We achievethis through detailed analysis of how our blasts can have animpact on each and every step of the mine to mill process toensure mines get the very best out of their operations,” Kwendaconcludes.All Aboard © AEL Mining Services I Fourth Quarter 2015

AEL EnergyAEL’s Running Club makes greatstrides at the Soweto MarathonThe AEL running club entered a contingent of eager been part of this milestone event,” said running club Club. For more information about the running club andrunners into the Old Mutual Soweto Marathon on member and race participant, Ayanda Zici. its activities, email [email protected] 1st of November 2015. The nationally acclaimed All decked out in their AEL branded running kit, theSoweto Marathon attracted over 21 000 runners this team presented a bold, united front and successfully The running club meets every Tuesday and Thursdayyear surpassing last year’s numbers. completed various legs of the marathon such as the at 16h15 at Nobel Gate for a weekly 5km run. Put your 10km, 21km and 42km. running shoes on and be part of the movement. Come“The marathon is a qualifying race for the Comrades along to run or walk at your own pace!Marathon so it serves as a stepping stone to greater If this account of the running club’s success has whetachievements for the team. We are so proud to have your appetite, we invite you to join the AEL Running6 All Aboard © AEL Mining Services I Fourth Quarter 2015

AEL SafetyAdvancing the “Safety first”philosophy at the PETN plant ByPitsiNyaku Q. Tell us about your background. helps us keep the focus. A. I am Tumelo Mashua, father of two. Q. I’m sure your recent Safety Rep award Currently, I am an Operator and Safety REP. at has encouraged you to keep on with the the PETN plant. I am in my 3rd year of study good work. Tell us more about this. towards a qualification in safety management. I have also completed SAMTRAC with NOSA. A. Of course, everyone appreciates being recognised for their efforts. But it’s all Q. What sparked your interest into the SHE thanks to everyone who participates 24/7 to field? ensure safe working practices. Tumelo Mashua A. It all started with my first induction when Q. Finally, what’s on your cards for the next I joined the company. I was intrigued by the 5 years?The PETN plant is one of AEL’s longest serving plants work environment I was getting myself into. Iand has been producing PETN to DETS, Pentolite and always wondered how a global company could A. My immediate goal is to become a safetyISAP over the years. With this huge responsibility stil maintain a world class safety standard with officer when I complete my studies andcomes many challenges. Top priority at the plant is little or no recordable injuries over such a long hopefully a safety manager in the not-so-safety. period of existence. From then on I wanted to distant future. know more about SHE management.All Aboard chatted to SHE Rep Tumelo Mashua, an Thank you to Tumelo for championingemployee who is determined to take the PETN plant to Q. How is the safety team ensuring that safety safety The AEL Way.the pinnacle of success. awareness is the primary focus? There we have it, it is evident that the spirit A. Going back to basics was the first step. Goal of “safety first” resonates within the PETN alignment with regards to safety was conducted safety team. They are ambassadors who are and the team shared a vision of never striving for excellence as it is embodied in subjecting anyone to any harm. This coupled the AEL policies. We wish them all the best. with active engagement with managementABOUT THE AUTHOR - Pitsi NyakuPitsi Nyaku was born in Tembisa 25 years ago. He matriculated in 2008 and joined AEL in 2009 as a Cord Operator. He was handed scope of authority as an acting Team Manager in2011 after going through the AEL development structures in Quality, basic HR management and SAP. He moved to the PETN plant in 2013 as a PETN operator and SHE Rep. He iscurrently a Team Leader at the PETN plant. Pitsi is a third year Bsc Chemistry student at UNISA and has a passion for writing.All Aboard © AEL Mining Services I Fourth Quarter 2015 7

AEL Movers and ShakersMeet Ronald HugginsAll Aboard had the pleasure of chatting to avid collector, Ronald “Ronnie” Huggins, ISAP Automated Assembly andExtrusion Plant Manager who has had an amazing career journey at AEL for almost 20 years. Let’s learn more aboutthe man and his mission!All Aboard (AA): Give us a brief background of your engaged employees. My personal challenge is that as being a strong leadercareer path? of my own team I also need to learn to be a better teamRonald Huggins (Ronnie): I started with the company AA: What is your modus operandi? player in my manger’s team.as an apprentice in Feb 1996 and qualified in the field Ronnie: Treat people with respect and dignity,of Instrumentation in 1998. I worked as an E&I artisan empower them to reach their full potential in what AA: What is your vision/ goal for the future within AEL?for about six years and was then promoted to an E&I they do, and create the environment for them to do so. Ronnie: My vision for the future is to continue to growlearner technician. Once I completed my electrical I need to constantly strive to find new ways to improve and equip my team so that they are ready for futurediploma through correspondence, I was promoted and to move forward. Today’s best must be tomorrow’s progression within the business when the opportunityto E&I technician in 2005. In 2008 I was appointed as average. arises. From a plant perspective my goal is to progressthe E&I engineer for ISAP section as well as being the production output of the Automated Assemblyresponsible for the management and control of all the AA: What major projects are you currently engaged in? plant from 3 million quality assemblies per month toplant control systems for AEL. In 2011 I was appointed Ronnie: My current focus for Automated Assembly is 3.5 million assemblies per month and to reduce theas a section engineer in ISAP focusing mainly on the to create more flexibility on the Modular machines. current process waster in the Extrusion plant to belowAuto Assembly, Extrusion and Spray drying operations. Currently the Modular machines are restricted to 3% per month. On a personal level I was privileged toFrom 2006 to 2012 I also managed the Radiation 2.0 and 2.5 metre product. A project is in progress have been selected to attend the MMDP course in 2015Protection Officer Portfolio for AEL. In January 2013 to change the design of the machines to be able to which I thoroughly enjoyed. This has sparked a newI was asked to take over as production manager for manufacture longer length products as well whilst interest in developing my business skills further, so ifthe Automated Assembly and Extrusion plants in ISAP maintaining the current machine efficiency. In the all goes according to plan I will be starting with an MBAwhere I am currently. Extrusion plant my current focus is in reducing in 2017. process waste and reducing the memory retentionAA: How long have you been in the employ of the AEL of the Shocktube that creates various issues on our AA: Tell us something interesting about yourself?Mining Services? downstream process. Ronnie: I am cursed with the collectors bug. I like toRonnie: I have been with the company for 19 years now collect many different things but the more notableand am looking forward to celebrating my 20 year work AA: What are we doing to stay relevant and on the collections that I have are a stamp collection currentlyanniversary in February 2016. cutting edge? valued at around R 600K. I have an action figure Ronnie: I enjoy challenges, so I constantly seek ways to collection currently valued at R 420K and a die-castAA: What does your portfolio entail? What are your key do things more efficiently. I like to keep up to date with model car and motorcycle collection currently valuedresponsibilities? current events and new technology, particularly those at around R 350K.Ronnie: I am responsible for the management of the that can affect our business both in a positive and aAutomated Assembly and Shocktube Extrusion plants. negative way. I am generally not one to follow the rat AA: What are your hobbies?The Automated Assembly plant is responsible for the race but rather the one leading the rat race and being Ronnie: My interests are 4x4ing and overlanding,production of 2.0m and 2.5m Shocktube assembly units ahead of the curve. camping, fly-fishing and spending time in my homefor sale in the underground market. The Shocktube gym.Extrusion plant is responsible for the production and AA: Do you see yourself as a leader or a team player?supply for Shocktube for all of the Shocktube initiating Ronnie: I see myself as a leader. I like to inspire peopleunits produced by AEL. I have eight direct reports and encourage them to achieve their full potential. Aand am responsible for a team of 97 committed and leader is only as strong as the team that supports him.8 All Aboard © AEL Mining Services I Fourth Quarter 2015

AEL EXCELLENCEAll Aboard © AEL Mining Services I Fourth Quarter 2015 9

AEL #didyouknow? All Aboard © AEL Mining Services I Fourth Quarter 2015Did you know 14 years ago, AEL achieved the first single blast using 1500 electronic detonators at Damang Gold Mine in Ghana using the AEL-developed programmable Smartdet® system? Find out more about ourinnovative history by visitingwww.aelminingservices.com/about/our-historyDid you know South Africa was the third largest exporter of iron ore andconcentrates in 2014, behind Brazil and Australia in second and firstrespectively?Did you know almost nine years ago, AEL Zambia Plc listed on theLusaka Stock Exchange? Today, the company employs 280 employees andindirectly provides work for a further 100 people, such as security officers,and sub-contractors.Did you know that a US company is planning to mine asteroids for theprecious materials they contain? How long do you think it will be beforewe're mining in space? Read more about this onwww.digitaltrends.com/cool-tech/how-planetary-resources-selects-asteroid-mining-targets/Have you seen the review of our Vertical Drop Infrastructure andInstaStem on Engineering and Mining Journal? Check outwww.e-mj.com/features/5483-patterns-of-success.html#.VmbbLNIrLIXIn a move to improve safety in mining in South Africa, the Council forScientific and Industrial Research has invented a robot monitor thesafety of mines after blasting. To read more about this technologicalbreakthrough visitwww.mediaclubsouthafrica.com/economy/4143-infographic-mining-robot-can-save-lives10

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AEL QualityQuality E-Learning Platform by Annuscha PohlIn the past, employees needing to undergo training in training people during down times. In addition, with 4. Personalized learningQuality had to travel to Modderfontein. This proved to the current economy, you’re asking people to do more Look out the window at your parking lot and you’ll seebe very difficult, especially for our operations abroad. with less. So E-learning is a great way to give them the a dozen or more different cars. They all do the same tools and skills needed to enhance their performance. thing, yet we have personal opinions about what weMoving forward, Global Quality will introduce the want to drive. The same is true for learning. LearnersE-Learning Platform. This will cater for all non- 3. Standardization want control. E-learning allows you to offer control tospecialised training requirements, it will launch in You may have a great facilitator, but that’s no the learners in a way that classroom learning doesn’t.conjunction with the LMS Platform. These are a huge guarantee that the courses are presented the sameaid in keeping AEL Mining Services compliant to across all sessions. E-learning allows you to create The Quality E-Learning Training Modulesinternational training requirements. a standardized process and consistency allowing for content to be delivered consistently every time it goes Global Quality will have the following training modulesAside from the obvious benefits of cost saving through out. It also compresses delivery time. available on the LMS system:decreased travel and material costs there are anumber of other advantages and these include: How E-learning supports the Employee Development • Basic navigation training on how to use the E-learning modules • No employee or service provider is needed to 1. Real-time access facilitate the training Live learning events require that those who participate • Quality Induction align their schedules to a training calendar. E-learning • Quality Awareness • Training is not bound by geography or time eliminates this because the course can be accessed • QMS Requirements availability anytime, anywhere where only deadlines need to be • Document Control System (with sub-units) met. • Control Tools and Systems (with sub-units) • Standardised and consistent delivery of content   • Measurement Equipment (with sub-units) • Training can be accessed anytime, anywhere 2. Freedom to fail • Centralised Calibration System No one likes to fail in a classroom full of other people. • Timing TrainingHow E-learning supports the Organization’s Goals E-learning lets you fail without fear. This encourages • Supplier Quality exploration and testing of ideas. With the right1. Reduced training costs feedback a great learning environment is created.Producing learning content is time consuming whether Worst case, a learner can always start over. Somethingit’s online or not. With E-learning, each time the you can’t always do in class.course is accessed the return on investment improvesbecause you are dividing the fixed production costs by 3. Improved retentionnumber of uses. And as mentioned above, these are The combination of multimedia and instructionalsavings through decreased travel, reduced material, design can produce a very rich learning experience thatand this hopefully results in improved (and more is repeatable. Throw in some good practice activitiesefficient) performance. with feedback and you have a learning environment that’s going to help your employees retain the course2. Increased productivity and flexibility content which will produce results.Because E-learning is not bound by geography or time,you can control training’s impact on production by12 All Aboard © AEL Mining Services I Fourth Quarter 2015

AEL QualityIntroducing Quality Champion:Ajith JugdeoAjith Jugdeo What is your role at AEL? I am presently employed as the Quality Coordinator (Quality Champion) of the FMS Workshop and responsible for maintaining and continually improving the Quality Management System as required by Group Quality. What do you value about working at AEL? I value the work ethic and support I receive from my colleagues. The great team work which inspires me to achieve greater heights as there is always a challenge placed in our path to do better and be better at what we do. How is Quality important to you? Quality is of utmost importance to me because I believe that the quality of work produced by a person reflects their values, attitude and pride they take in their responsibilities. Who is your role model in life and why? My dad, because of the simple and humble life he lived. When not working what do you do for fun or to unwind? When I am not at work I try to spend as much time as possible with my family, Otherwise any other spare time is spent playing soccer with my son.All Aboard © AEL Mining Services I Fourth Quarter 2015 13

AEL Family Babies Introducing Vernon Proudfoot’s Meet Hlonolofatso, beautiful on handsome son, Liam born on daughter of Trudy Modiba who14 Board 21 October 2015 made her appearance on 8 September 2015 We take pleasure in announcing the latest additions to the AEL Family. We wish the parents the best of luck with the late night feeds and early morning lullabies. Reaching Wedded New Bliss Heights Congratulations to The Commercial Team, (front our latest newlyweds, row L to R) Francois van Niekerk, the dashing Simon Vivi Majova, Johan Barnard, Tose, Global Mining Angelique Cronje (back row from Optimisation Manager L to R) Sean Slabbert, Trevor and his beautiful Roberts and Denvor Govender, bride Sanet who braved the Go-Ape climbing tied the knot on 15 obstacle course as part of their November 2015. team building initiative. Fearless Here’s to a blessed leader Trevor Roberts, Executive union showered with Commercial, led by example and an abundance of ensured that all team members happiness! completed the course. All Aboard © AEL Mining Services I Fourth Quarter 2015

AEL FAMILYNEWSLETTER FROM THE OFFICE OF THE CHIEF EXECUTIVE | DECEMBER 2015 Dear Colleagues The end of the year is around the corner and distribution of the quarter four issue of “Our World” magazine commenced on 4 December. Please look out for it. It covers a number of important issues, including the launch of our BIGGER and better values, as well as acquisitions, disposals and safety. Take time to read it and feedback accordingly. The next issue will be released at the end of March/beginning of April. Since many people go on leave during the December/January school holidays, particularly in Australia, South Africa and the rest of Africa, I would like to wish you a very happy festive season and all the best for the new year. Recharge your batteries and come back refreshed and ready for more. It certainly looks like 2016 is going to be an equally challenging and demanding 12 months! We are not even in the new year yet and diaries are filling up fast. As soon as we come back in January, the Group strategy session will take place at Sun City, followed by Mining Indaba in Cape Town, where AECI Mining Solutions is one of the main sponsors. The annual financial results for the year ending 31 December will be released on 23 February, and the Group’s top performers will be recognised at the Annual Awards luncheon and Sales Day events shortly thereafter. The implementation of a new Performance Management System will also commence in January. A significant amount of effort and time have gone into its design and planning and I am looking forward to seeing how our businesses and people embrace the principles of recognition and reward moving forward. In the event that you are travelling during the holidays, please take care and come home safely. Thank you for your commitment and support this year. I look forward to working with you in 2016. Kind regards Mark DytorAll Aboard © AEL Mining Services I Fourth Quarter 2015 15

A 2000-ton blastjust happened here.