BN Q1 2016

Blasting News VOLUME 25 ISSUE 1 2016IN THIS ISSUE • Ensuring security of supply, AEL overcomes stormy conditions to supply AN between continents • Simon Tose celebrated as SAIMM fellow • AEL’s eco emulsion range developed to optimise surface mining using recycled oils Printed on 100% eco friendly paper

CONTENTS Editor’s Note 3 AEL CAPTAINS OF INDUSTRY: Meet Welcome to the first issue of Blasting News for 2016. Thinus Bierman Focused and determined to add value to our customers’ operations and the communities where we operate, in this 4 AEL KNOWLEDGE-SHARING: AEL issue we share some of our contributions to the industry overcomes stormy conditions to supply during the first quarter. Ammonium Nitrate between continents We introduce you to another member of our Executive 6 AEL PARTNERSHIPS: Simon Tose Committee, Thinus Bierman, Executive - International celebrated as SAIMM fellow Business. 7 AEL THOUGHT LEADERSHIP: Explosives To showcase our global capability, we share our success Today 14 story of overcoming stormy conditions to supply Ammonium Nitrate between continents. 12 AEL PAYING IT FORWARD: The AECI Community Education and Development Creating valuable partnerships with industry bodies helps Trust invests in communities further our knowledge-transfer process. We proudly announce our very own industry stalwart, Simon Tose’s 14 AEL CASE STUDY: AEL’s eco emulsion appointment as SAIMM Fellow. range developed to optimise surface mining using recycled oil Looking forward, we inform you of our participation at the Institute of Quarrying (IOQ) Conference where we willCover image: Kenecott Copper Mine demonstrate our support to the mining market. Remaining close to our hearts are our CSI initiatives which uplift communities where we operate globally. In our Paying it Forward section, we share AECI’s drive to help combat recent water shortages in rural areas across South Africa. Finally, in our Case Study section, we highlight our eco emulsion range developed to optimise surface mining using recycled oil. 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. Enjoy the read! Eubulus Contact Details: Eubulus Pillay - Editor Tel: +27 11 606 0313 [email protected] www.aelminingservices.comDisclaimerThis publication does not necessarily reflect the views and opinions of AEL Mining Services Limited management. The copyright to this publication rests in AEL MiningServices Limited. Other product and corporate names used in this publication may be trademarks or registered trademarks of other companies, and are used only forexplanation and to the owner’s benefit, without intent to infringe.2 Blasting News I First Quarter 2016

CAPTAINS OF INDUSTRY Meet Thinus Bierman Executive: International Business Role: Responsible for sustaining the International business and continuing to establish AEL’s business footprint within Middle East, Africa, Latin America and Asia Pacific regions. Professional background: Began his tenure at AEL over 25 years ago. He holds a Witwatersrand School of Mines NHD Mining and Metallurgy certificate and a MDP Business Administration and Management qualification.Blasting News I First Quarter 2016 3

AEL REMOTE CAPABILITYEnsuring security of supply, AELovercomes stormy conditions to supplyAN between continentsAEL has demonstrated the depth of itssupply chain capability by delivering 5000 tons of Ammonium Nitrate (AN)thousands of kilometres betweencontinents, amid difficult conditions.This, according to Sean Slabbert,Commercial Manager for GlobalAmmonium Nitrate, was due to varioussupply constraints requiring thesupply chain team to make alternativesourcing arrangements.Slabbert says once the most suitablesource for quality AN was identified,the 5 000 ton shipment travelled asignificant distance by rail before beingloaded for deep sea travel.“We commend our supply chain teamfor ensuring that this product wasdelivered to its final destination despitea number of challenges encountered.The shipment weathered stormywinter seas to arrive in qualified AELpackaging at the destination,” saysSlabbert.Imported product needs to meet anumber of stringent quality, packaging4 Blasting News I First Quarter 2016

AEL REMOTE CAPABILITY and logistics requirements. Shortly after Slabbert concludes: “AEL is committed the offloading of this shipment, the AEL to giving our customers peace of mind production team on site manufactured and we believe a flexible supply chain quality emulsion explosives.” and consistent communication are two driving factors behind our ability to “At the heart of AEL lies its customer- deliver quality products and maintain centric approach in providing explosives security of supply.” and mining solutions. AEL’s ammonium nitrate chain draws from as many as 16 qualified sources around the world,” says Slabbert.Bagged Ammonium Nitrate product being loaded Bagged Ammonium Nitrate product Blasting News I First Quarter 2016 5

AEL PARTNERSHIPS Simon Tose Celebrated as SAIMM FellowSimon Tose, Global Mining Optimisation “The SAIMM is the perfect In order to be accepted as a FellowManager at AEL, has been accepted as forum for this because it of the SAIMM, a person has to meeta Fellow of the South African Institute provides a platform where certain criteria. These include beingof Mining and Metallurgy (SAIMM). you can share ideas and over the age of 35 years, demonstratingThis is the latest honour bestowed get input from a variety of contributions to the industry andupon Tose, a highly regarded industry industry experts in order actively participating in educationalexpert, following his election as a board to find solutions to some initiatives such as conferences andmember of the Institute of Quarrying of the challenges facing symposia. In addition to these criteria,(IOQ) in April 2015. the mining sector.” a person has to be nominated by at least two SAIMM Fellows and thenTose thanked the SAIMM for the Tose says he plans to run a blasting undergo an evaluation by the Instituterecognition of his work within the workshop this year, which will include to determine whether the nomineemining sector over the last 30 years the involvement of university students, meets the requirements.and said he would take the opportunity in order to provide insights and expertiseto give back to the industry, especially around the developments within the Tose has published several ground-with the youth. blasting processes. Furthermore, breaking papers and has represented he assisted his colleagues with their AEL at several international“I see my role now as developing and involvement in major mining events this key symposia, conferences andempowering the next generation of year, including the SAIMM’s symposium colloquiums over the years, includingprofessionals who are passionate about on automation in mining in February the hosting of a workshop at the 41stmining and I want to get them involved and the Diamonds Still Sparkling 2016 Annual Conference on Explosives andin taking the industry to the next level,” Conference in Botswana in March. Blasting Technique in New Orleans,says Tose. USA, in February 2015.6 Blasting News I First Quarter 2016

EXPLOSIVESTODAYSeries 4 I No 14BLAST GENERATED GASSES IN SURFACE BLASTINGBy Ken MeiringThe group of gases known as (primarily power generation and may arise.Oxides of Nitrogen or NOx, of motor vehicles) and natural sources. In the absence of a single generalwhich the most common are However blasting produces a sudden cause or general solution, it should benitric oxide (NO) and nitrogen localised release of gases with understood that, given the complexitydioxide (NO2), are often found potentially high concentrations of of the problem and the inherentas by-products in the post- NOx. Such gas emissions pose a variability in the blasting environment,blast gases of ammonium health risk if people are exposed to NOx events may still occur even afternitrate-based explosives. them before the plumes can dissipate. prevention and mitigating actionsTogether, these gases are Despite a long history of blast-related have been put in place.loosely referred to as “NOx”. NOx emissions, very few quantitative studies have been done under realistic Causes of fumes from blastsNitric oxide is invisible, but nitrogen field conditions.dioxide ranges from yellow to dark • Emulsion formulation deficient inred depending on the concentration The underlying causes of high NOx oil content, or rich in ammoniumand size of the gas cloud. These gases are fuel-deficiency in the explosive nitrate content (oxygen rich/are toxic. or detonation reactions that do not positive) continue to completion. There areNOx from blasting constitutes only many ways in which these conditions • Poor diesel absorption bya small proportion of the total NOx ammonium nitrate prillemissions from human activities 7Blasting News I First Quarter 2016

Nitrogen dioxide ranges from yellow to dark red depending on the concentration and size of the gas cloud• Excessive fines in ammonium Common links between major free face) nitrate events • Area to be blasted • The geological structure and rock• Water ingress in products as the • There is no one decisive factor that product exceeds sleep time limits strength of the area to be blasted will ensure the generation of NOx • The pattern dimensions• Critical density of the product • The product available• Poor hose handling practices (top within the blast process • The amount of explosives required loading products into holes) • There are some common links to blast the area (Powder Factor)• Critical diameter for the product • Weather conditions• Presence of dynamic water that increase the likelihood of • Blasthole conditions• Direct contact with incompatible • Sleeping of blast NOx fumes within any blast. These • Timing chemical products• Product desensitisation by include: pressure -- Any product that is• There are certain geological, manufactured and loaded that confinement and blast design conditions in which high levels of is outside the optimal product post blast fume are consistently observed. specifications (AN prill, AN Matching the ground conditions to• Lack of proper product the Powder Factor confinement (including stemming) emulsion and gassing agents)• Ground condition such as presence of cavities/cracked ground -- Dynamic water (regardless of• Disturbed ground due to back break from a previous blast product) • Several major fume events have• Dynamic effects when blasting in such conditions are believed -- Excessive sleep time been found to have had a powder to influence some fundamental explosive design properties. These -- Unfavourable ground factor that was significantly higher impacts are not well understood. conditions (cavities, hardness, than the powder factor required for excessively weathered) the ground conditions   • This is often the result of: Bringing it together… -- A lack of understanding of the ground conditions The engineering phase should consider -- Changing the product selection at least the following aspects of any blast: to reduce costs • The blast outcomes • The method of blast relief (vertical/ -- Inappropriate drilling techniques/blast patterns/drill data8 Blasting News I First Quarter 2016

Fume Classification (AEISG) TYPICAL APPEARANCE 9 LEVEL LEVEL 0 No NOx gas LEVEL 1 Slight NOx gas 1A Localised 1B Medium 1C Extensive LEVEL 2 Minor yellow / orange gas 2A Localised 2B Medium 2C Extensive LEVEL 3 Orange gas 3A Localised 3B Medium 3C Extensive LEVEL 4 Orange / red gas 4A Localised 4B Medium 4C Extensive LEVEL 5 Red / purple gas 5A Localised 5B Medium 5C ExtensiveBlasting News I First Quarter 2016

-- Areas of any blast, that are mud into the product column (rain relief as opposed to other designs over blasted are much more event) • The use of deck loading where likely to produce a major fume • There was no definitive event than areas of the blast geotechnical data relating to a product selection has been pattern that are not as heavily either the condition of the rock changed from a low density loaded within the explosives loading product (ANFO) to a higher density area (voids, cavities, fracture and product (Doped or BlendedAn example… faults) or the rock strength emulsion) • The area was identified to be • Consider the development ofDuring one such blast/fume event, comprised of wet clays and the blast parameters for particularthe root cause was attributed to the compression strength of the geological domains in mine sitesfollowing: materials in this area was low• There was not definitive geological with a reasonable powder factor Other steps that can be taken which could be estimated to to minimise Nox exposures on technical data available relating be in the range of 0.3 to 0.45. sites… to either the condition of the rock The application of the designed or the rock strength energy levels (0.67 powder Ensure that the mine site has:• The designed powder factor was factor) to an area of soft/ wet • A suitable process to notify listed as 0.53, but from historical clay resulted in the generation data a reasonable powder factor of NOx and CO fumes through a neighbouring communities of for previous blasts was in the loss of confinement and product blasting activities range of between 0.3 and 0.45 decoupling • A fume monitoring programme• A product change changed the for the neighbouring mine sites powder factor to 0.61 If you do what you always • Physical control barriers such as• This is an actual energy rating did, you’ll get what you the use of suitable gas monitors, increase of 47.5% increase always got… blast guard positioning and applied to the same ground communication conditions Recommendations • A process to estimate potential• This was combined with a vertical travel and spread of fumes prior displacement of relief/loss of • Revise the use of standard pattern to the firing of the shot confinement and product column sizes during the wet season • A process to sample blasting decoupling activities on site to establish base • Engage a lower powder factor line data (fume reporting)A second example… for the areas of mine sites • A suitable plume modelling/ where the geological structure is tracking processDuring a second blast/fume event, predominantly of a softer rock/ • A suitable risk management forthe root cause was attributed to the clay structure Blast Controlling (including fumefollowing: management)• Incomplete combustion reaction, • Engage a free face blasting to • A suitable document detailing provide the appropriate burden obligations of persons performing due to the ingress of water or the role of blast controller (in10 Blasting News I First Quarter 2016

NOx from blasting constitutes only a small proportion of the total NOx emissions regards to fume management) including tracking of the fume exclusion zones/marker locations• Assessment and implementation cloud pathway • A reviewing site procedure for • A site specific proforma letter to of a minimum blast exclusion the treating physician to assist in the toxic gases on site and a zone the diagnosis of a person exposed supporting procedure for the• A system to ensure that all to oxides of nitrogen fumes (NOx) management of post blast (NOx) persons involved in a blast as • A pre-shift meeting document fume either Blast controllers/Blast that includes a particular section Guards are deemed as competent relating blast information which persons in regards to the roles on includes proposed firing time, site blast location, expected blast• Has a process to video all blasts results and control measures and to capture any fume eventAcknowledgements• Downer EDI Limited: Reducing the risk of NOx fume exposure during Blasting (presentation)• AEISG (Australian Explosives Industry and Safety Group): Code of Practice - Prevention And Management Of Blast Generated NOx Gases In Surface Blasting Edition 2, August 2011Disclaimer: Any advice and/or recommendation given by AEL Mining Services Limited (“AEL”) in this publication, is given by AEL in good faith in order to provide assistance to the reader.AEL does not however: 1.1 warrant the correctness of its advice and/or recommendations; 1.2 warrant that particular results or effects will be achieved if AEL’s advice and/or recommendations areimplemented; 1.3 accept liability for any losses or damages that may be suffered, as a result of a party acting, or failing to act, on the advice and/or recommendations given by AEL;1.4 accept liability for any acts or omissions of its employees, representatives and/or agents, whether negligent or otherwise. Copyright: All copyright that subsists in this publication together withany and all diagrams and annexures contained herein, which shall include all and/or any ideas, plans, models and/or intellectual property contained in this document vests in AEL. Any unauthorisedreproduction, adaptation, alteration, translation, publication, distribution or dissemination (including, but not limited to, broadcasting and causing the work to be transmitted in a diffusion service)of the whole or any part of this document in any manner, form or medium (including, but not limited to, electronic, oral, aural, visual and tactile media) whatsoever, will constitute an act of copyrightinfringement in terms of the Copyright Act No.98 of 1978 and will render the transgressor liable to civil action and may in certain circumstances render the transgressor liable to criminal prosecution.This document remains the intellectual property of AEL. Intellectual Property: All ideas, concepts, know-how and designs forming part of this publication belong to AEL, save for where it is clearlyindicated to the contrary.Blasting News I First Quarter 2016 11

The AECI Community Education andDevelopment Trust investing in thedevelopment of communitiesDuring 2015 the AECI Community aboard with programmes such as the “Water forEducation and Development Trust Tomorrow” environmental programme.invested in the sustainable developmentof vulnerable communities in South Africa Every day, millions of women and children inthrough education, skills development developing countries are forced to rely on traditionaland a focus on the environment. Over 5 methods of water collection that consume excessive124 beneficiaries were impacted by these amounts of energy and time. It is estimated thatinvestments and over 7 organizations globally, women and children spend 140 millionacross 7 provinces in South Africa. hours collecting fresh water every day.This was achieved through key partnerships and One innovation “The Hippo Water Roller” offers ancollaborations with stakeholders in AECI’s areas of immediate and appropriate response to the issuesoperation. Various organisations across the country came surrounding water access and security. Designed in Africa for Africa, the 90 litre Hippo Water Roller enables women, children and the elderly to collect 5 times more water than a single bucket by simply rolling it along the ground. The Trust has partnered with Hippo Roller to provide education and training on water conservation including the provision of hippo rollers to various rural communities surrounding the mining areas in which we operate. Following the 2015 programmes, the Trust continued its commitment to supporting the sustainable development of vulnerable communities in South Africa whilst addressing key socio-economic development issues facing the country. During the first quarter of 2016 AECI addressed the critical water shortage in Limpopo and Mpumalanga.12 Blasting News I First Quarter 2016

The handover of thousands of litres of water at Maokeng 13 Primary School in Modimolle, Limpopo On 10 February, AECI supported the Hippo Water Roller Project and handed 200 Hippo Water Rollers (90l) to residents of the Likasi village near Witbank, South Africa. AEL Mining Services, a subsidiary of AECI facilitated the handover. On 4 March AECI delivered over 62 000 litres of water to Modimolle, Limpopo in conjunction with Operation Hydrate, the NGO which has brought water relief to drought- affected areas across South Africa. AECI was honoured to be part of the Operation Hydrate initiative. Images show the handover of thousands of litres of water at Maokeng Primary School in Modimolle, Limpopo, an area which has been severely affected by the country’s drought. Thank you Operation Hydrate Initiative SA!Blasting News I First Quarter 2016

AEL’s ECO EMULSION RANGE DEVELOPED TO OPTIMISE SURFACE MINING USING RECYCLED OILCASE STUDY SITE PROFILE PT Kaltim Prima Coal (KPC) is a coal mining company located in the region Sangatta and Bengalon, East Kalimantan, Indonesia. Exploiting an area 90,938Ha, KPC operate one of the largest open-pit mining in the world with coal resources and reserves totalling 9,275 billion tonnes. The mining method applied is strip mining of multi pits with truck and shovel operation, which are managed by mining divisions, Mining Operation Division (MOD) and Contract Mining Division (CMD). BACKGROUND KPC coal production has been increased since the beginning of the operation in 1992. The average of KPC overburden removal in the last 5 years, had reached up to 500 million BCM per year. Coal production target for 2015 is 60 million which equals to 540 million BCM of overburden removal. About 80% of overburden requires drilling and blasting while the excavation is done with trucks and backhoe/shovels. The maintenance carried out on heavy equipment produces about 10 – 11 million litres of used oil per year (2010 – 2014). Before 2011, used oil in explosives was in ANFO mixing only while the rest was shipped to a licensed waste processor. KPC overburden removal (2010 – 2014)BUSINESS CHALLENGESThe requirement on bulk explosives at KPC is in the range of 100,000 tons per year. Approximately,55% of that requirement is supplied by AEL at CMD operation in the form of emulsion-basedexplosives.KPC had identified fuel and explosives consumption as two of the main operating costs. Therefore,KPC have been actively looking for more efficient and safe blasting processes through improvement,especially saving on diesel for emulsion manufacturing. Currently, KPC has permit to utilise usedoil to replace diesel up to 80% in formulation following SNI 7642:2010 (SNI, Standar NasionalIndonesia).14 Blasting News I First Quarter 2016

SOLUTIONS CASE STUDYAEL’s range of Surface Bulk Explosives is amongst the best researched and developed in themarket; in Indonesia PT AEL has pioneered the use of used oil in emulsion manufacturing.In order to fulfil KPC’s expectations in the use of used oil to manufacture emulsion, AEL introducedS335 Eco, a product suitable for reactive ground environments with the existing benefits of Bulkemulsions such as safety, easy handling and water resistance. The eco range has been specificallydeveloped to optimise surface mining using recycled oils in the formulation.AEL then makes use of specialised technology to ensure the used oil based bulk emulsionexplosives is of equal quality as any virgin fuel product, with emulsifiers custom-made for eachlevel of used oil. The recent development on emulsifiers enables AEL to replace diesel up to 80%. Sample of S335 Eco on the benchIn January 2011, AEL started trials at KPC with 10% replacement of virgin oil and has been rampingup until the current 80%.OUTCOMEThe performance of the bulk explosives has been stable with all levels of used oil and monitoredregularly on bench by conducting quarterly VOD tests. The product, S335 Eco, has performed withinits specification with good blast performance since the introduction of used oil.Since used oil has been utilised in emulsion manufacturing, the volume of saving in diesel during2011 – 2014 was about 6 million litres or 1.5 million litres per year. Used oil utilisation (2011 – 2014) CONTACT Simon ToseCUSTOMER ACKNOWLEDGMENT Global Mining Optimisation Manager“Utilisation of used oil in the mixture of explosives to replace diesel oil delivered great benefits for +27 11 606 0000KPC. S335 eco using 80% of used oil have met KPC’s expectations to reduce blasting costs without simon.tose@reducing the quality and helping to reduce waste oil management cost.” aelminingservices.com AEL MINING SERVICESAris Hermawanto, KPC Technical D&B Superintendent 1 Platinum Drive, Longmeadow Business Estate North, Modderfontein, 1645, South Africa www.aelminingservices.comBlasting News I First Quarter 2016 15