Modern Quarrying Q3 2018

the blue rock material. “For example, we have seen a surge in demand for our 19 mm con- crete stone, where at some point we find our- selves even supplying some of our competitors for their readymix businesses. The main driver of the demand is that 80-90% of the current concrete mix designs in the industry specify the 19 mm concrete stone,” says Thomas. Further innovations In an environment where traditional big sellers don’t fly anymore, management at Peninsula quarry continues to investigate a number of niche products that are largely made possible by the quality of its blue rock material. “We continue to manage sales demand for high value products, saleable materials,” explains Kruger. For example, Peninsula is the only quarry in the Western Cape to produce -37,5 mm drain- age material for the N7 contract through a first crush. Any other operation would need to run material through a number of various process- ing stages to achieve this. The -37,5 mm is a new product specification recently approved by Sanral engineers and is to be written into the revised edition of the COLTO, called COTO – standard specifications for construction of roads and bridges in South Africa. In line with current market trends where construction projects are largely undertaken by small construction contractors, Thomas says the sales team has also adjusted its approach and is now more geared at working closely with small and upcoming contractors. Thomas says the majority of sales now go to small and medium enterprises. This is in stark contrast to the old days where the operation’s clientele used to be largely the big construc- tion concerns. At this stage, construction is more like water from a sprinkler than a bucket. It’s a different market altogether, which changes every operation’s strategy, reasons Thomas. Other innovations include mainatining of a 1:1 production sales ratio during poor market conditions, doing away with large stockpile reserves and only producing per available orders, as well as maintaining COS rand per ton in line with budgets. The result of all these initiatives is high sales volumes during poor market conditions. Quarry structure Efficiency is sought in every aspect of every process from the pit through to the process- ing plants. The mining process starts with drilling and blasting in the pit. This function is outsourced to a contractor, B&E International, and blasting is undertaken once per month, with the exception of December, which is usually a short month in terms of production

and hard vehicle parking areas. as well as cartage truck parking areas. Proof that these initiatives are con- tributing towards a safe environment on site are the safety figures. In the year to June 2018, when we visited the site, the operation had no fatalities or permanent disabilities and no LTIs. It had completed 771 LTI free shifts. “Addressing health and safety should not be seen as a regulatory burden; it offers significant benefits such as reduced costs, reduced risks, lower employee absence and turnover rates, fewer accidents, as well as increased productivity, because employees are healthier, happier and better moti- vated,” explains Kruger. Another key driver behind the suc- cess of the operation is the implemen- tation of the group-wide AfriSam Way, which was launched in 2016. It is an effective leadership culture that aims to create shared clarity of purpose and direction. This ensures greater team alignment, engagement and focus, which is key as far as optimis- ation of business processes, systems, resources and competencies is con- cerned. In 2018, the group followed this up with the launch of Lets Build, a team/individual pledge to contribute towards building AfriSam as a family. Management also closely monitors market and industry trends, an initia- tive which advises on potential new markets and niche product supplies, especially at a time when demand for traditional products is very low. “The sales team is always in touch with the industry to stay abreast of the trends and often attends various forums where market movements are discussed,” says Thomas. For example, when Modern Quarrying visited the site, Kruger noted that 75% of the product range at the time was from the blue rock mate- rial, while 25% was from the brown material. A market trend driving this production pattern is that the demand for layerworks material is on the down- side due to the reduced number of new road projects in the area. Thomas says the pattern is different to last year where there were about six layerworks projects in the area, compared with one this year. An increased number of housing developments in the area has resulted in increased demand for concrete products, which are produced from

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QUARTER 3 - 2018 MODERN QUARRYING