Evraz Highveld News

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                             Evraz Highveld News
                                                                                                  D E C E M B E R   2 0 1 0
Welcome to the first
edition of the new look

                                Giving Back to eMalahleni
Evraz Highveld News.
The paper will be pub-
lished on a quarterly
basis and we hope to
improve with each edi-

To make the Evraz High-
                             The Evraz Highveld                                                           ready to start put-
veld News something
                             eMalahleni Commu-                                                            ting more back
YOU want to read, we         nity Forum is up and                                                         into the commu-
invite you to submit         running!                                                                     nity. The Forum‟s
news, articles, and pho-                                                                                  success will de-
                             The Forum, to be
tographs for editorial                                                                                    pend on how ef-
                             officially launched
consideration.                                                                                            fectively we apply
                             early next year, was
                                                                                                          our     resources,
Send to:                     established       as
                                                                                                          and we must do
                             Evraz      Highveld‟s
                                                                                                          this in consulta-   way of investing in
                                                                                                          tion with the rele-
                             South Africa‟s eco-
                                                                                                          vant     authorities
                             nomic transforma-
                                                                                                          and the commu-
                             tion.     The Forum
                                                                                                          nity. In order to
                             has a primary focus
                                                                                                          bring structure to
                             on socio-economic
                                                              by five underpinning principles: this we will be driven by the
      INSIDE THIS            development and a secon-
                                                                Mutual respect;                Forum‟s Managing Commit-
      ISSUE:                 dary focus on education
                                                                Active partnership;            tee”.
                             and health for the benefit of
                                                                Long-term commitment;          The Managing Committee
      Keeping the       2    the most vulnerable mem-
                                                                Mutual benefit; and            consists of nine members:
      Lights On              bers of the communities
                                                                Sustainability.                two members of the Evraz
                             where Evraz Highveld oper-
                                                                                               Highveld Executive Commit-
      Transforma-       2    ates.
      tion                   The management of com-           CEO Scott Macdonald: “This Fo- tee; two union representa-
                             munity issues will be driven     rum is long overdue and we are tives; and five members of
      Stay Alert        3
                                                                                               the community.

      Mapochs           4    Hearing is a Precious Thing

      Health &          5    Precious Mashilangako is a       ing funds for a cochlear im-
      Safety                 bubbly and very intelligent      plant, with the help of family,
                             four year old girl who was       friends and the staff and par-
      Evraz             6    first diagnosed with severe      ents at the Stepping Stones
      Pumps                  hearing loss in both her ears    Pre-School.
                             when she was two years old.
      Furnace 7         7    Her hearing loss was so se-      Despite a massive effort, the
                             vere that she would never be     family was still short of R40 000
                             able to hear or develop          required for the operation.
                             speech without having a co-      The Steve Biko Academic Hos-
                             chlear implant.                  pital Board-Robert Kerr Trust
                                                              Health Programme approached
                             Her mother Thembi is a           Evraz Highveld to help Pre-
                             cleaner and her father, Syd-     cious and funds were granted
                             ney, a driver for a local com-   as part of the Community Fo-
                             pany. Both have been rais-       rum‟s CSI programme.                   Precious Mashilangako
      PAGE 2

                      Engineering Services’ Bright Idea
                      August this year saw En-      ment have been pub-          Watts it all about?
                      gineering Services initiate   lished extensively. It is
                      a CFL exchange pro-           widely known that CFLs        Saving energy means
                      gramme to create aware-       last six times longer than    saving money
                      ness of using „energy         traditional bulbs while
                      savers‟ rather than incan-    consuming 80% less            Saving energy helps to
                      descent bulbs. Employ-        electricity.                 make sure South Africa
                      ees also had an opportu-                                   has enough energy to
                      nity to exchange incan-       During the exchange En-      meet its needs
                      descent globes for energy     gineering services ex-
                                                    changed 2616 globes for       Saving energy reduces
                      savers at the Steelworks.
                                                    CFLs.                        the effects that produc-
                      The energy saving bene-                                    ing electricity may have
                                                    The plant with the highest
                      fits of CFLs and the posi-    exchange was Engineer-       on our environment.
                      tive impact on household      ing Services followed by
                      budgets and the environ-      Iron Plant.

                      Leading the Transformation Drive
                      We asked newly ap-            communicates on trans-       Evraz Highveld has a
                      pointed Transformation        formation policy develop-    footprint, there is a true
“Transformation is    and BBBEE Manager,            ment as well as advises      reflection of        socio-
                      Thabisile Mchunu, to          and supports company         economic upliftment in all
 important for the
                      tell us more about            committees, departments      possible aspects of hu-
     growth of the    transformation:               and stakeholders on          man enrichment—skills
    South African                                   transformation issues and    development, job creation
                      Thabisile, What      is a
                      Transformation       Man-     best practices.              for sustainability, and the
economy. It’s not
                                                                                  development and growth
  about spending                                                                  of small businesses.
                      A transformation man-
     money to get     ager should be someone
 points; it’s about   with an entrepreneurial                                    Why is transformation
                      spirit, and technical and                                  important?
                      business      sensitivity.                                  Transformation is impor-
      businesses      Someone who is commit-                                      tant for the growth of the
                      ted to influencing and pro                                  South African economy.
                      -actively executing di-                                     It‟s not about spending
    collaboration”    verse       programmes                                      money to get the points,
                      aimed at bridging the                                       it‟s about expanding
                      gap between the old and                                     businesses through col-
                      new cultures.       These                                   laborative structures and
                      programmes        include                                   processes. Communities
                      Broad Based Black Eco-                                      embracing diversity and
                      nomic       Empowerment           Thabisile Mchunu
                                                                                 growing together, will see
                      (BBBEE),          Socio-                                   their contributions play-
                      Economic Development,         What is Evraz High-
                                                    veld’s Transformation        ing a meaningful role in
                      and Diversity and Inclu-                                   taking this country to a
                      sion programmes. The          Policy?
                                                                                 bright future.
                      transformation manager        To ensure that wherever

  DECEMBER 2010                                                                                                  PAGE 3

  Stay Alert and Stay Safe This Festive Season
  The festive season is around the corner!                       During the festive season, ineffective management of
  Many companies close or employees go on holiday; but           shift work by the employee and inadequate sleep (both
  unfortunately companies who operate during this exciting       the duration and the quality of sleep) are the most com-
  time of the year experience a lot of work-related accidents.   mon causes of employee fatigue. Physical fatigue af-
  The most common cause of these accidents is employee           fects the employee‟s muscles to the degree that one‟s
  fatigue.                                                       fitness to do a task becomes unsafe. Muscle weakness
                                                                                                means that a person can
                                                                                                not exert the necessary
  What is fatigue?                                                                              force required to do the
  Fatigue is a fancy word                                                                       work.
  for exhaustion and em-                                                                       Mental fatigue affects the
  ployee fatigue or ex-                                                                        employee‟s level of con-
  haustion occurs when                                                                         sciousness and de-
  employees attempt to                                                                         creases one‟s attention or
  work after inadequate                                                                        concentration, which can
  sleep, or try to do tasks                                                                    be dangerous when per-
  that are physically or                                                                       forming tasks that require
  mentally strenuous, or                                                                       constant concentration.
  even when family con-
  flicts affect an em-
  ployee‟s concentration
  at work.                                                                                     Sleep is important
                                                                 Even during the festive season, the importance of sleep
  Workload, workplace conditions, and number of hours            cannot be over-emphasised, both the quantity of sleep
  worked are work-related factors which contribute about         and quality of sleep. To get the best sleep possible, try
  35% to employee fatigue. Non work-related factors are by       to control temperature changes, lighting conditions, and
  far the major contributors to employee fatigue and these       noise levels.
  include the inability to cope with work conditions or shift    Make sure you drink 6 to 8 glasses of water each day as
  work, the disruption of natural sleep rhythms in shift work-   this will help increase your concentration at work and
  ers, sleep disorders, family conflicts, and ineffective man-   keep your body temperature in check which will help you
  agement of shift work by the employee.                         sleep.

 Changes to Leave Policy
The following changes to the Leave Policy came into effect on
1 November 2010, as per Brief 688 from Human Resources.

An employee‟s leave only becomes              Accumulative and service leave
available after 12 months of service          before the completion of 12
with the Corporation have been com-           months
pleted. However, to avoid employees
taking unpaid leave before the com-         This leave is also subject to man-
pletion of 12 months service, employ-       agement approval and the normal
ees may apply for:                          leave application process.
                                            Leave days may not exceed the
  Non-accumulative leave portion of         accrued balance and such leave
  the annual leave before the com-          may not be cashed out.
  pletion of 12 months
          Mapochs Mine
          Local and Economic Development of the Community
          The Mapochs Mine has              The global credit crisis
          committed to design and           experienced during 2008
          implement Local and Eco-          and 2009 had a signifi-
          n o mi c   D e ve l o p m e n t   cant effect on the Corpo-
          (LED) projects for the            ration, which also nega-
          upliftment and socio-             tively affected the imple-
          economic development of           mentation of the LED pro-
          the surrounding commu-            jects.
          nity, which is in line with
          the Mineral and Petro-            These LED projects will
          leum Resource Develop-            be looked at more seri-
          ment Act, Act 28 of 2002          ously especially since
          (MPRDA).                          there has been a gradual
                                            recovery in the economy.

          Mapochs: Identified Projects
          Evraz Highveld,                                                Chicken Broiler and
          Mapochs, EMLM and the                                          Abattoir Project
          community of Roossene-
          kal embarked on a con-
                                                                         Roads Upgrade and
          sultative process to iden-
                                                                         Maintenance Project
          tify areas of concern relat-
          ing to the Social and La-
          bour Plan.                                                     Project Restore

          The following projects                                         This project involves the
          were identified:                                               development of an in-
                                                                         digenous nursery on
                                                                         land owned by Mpochs
            Integrated Town Plan-
            ning Project
                                                                         It will be beneficial to
            Clinic and Ambulance                                         both Mapochs Mine and
            Facilities and Service                                       the community as it
            Project                                                      involves rehabilitation of
                                                                         mined areas and the
            Horticulture and Agri-                                       employment of local
            cultural Livelihoods                                         community members.
            Project (Hydroponics)
                                                                         This project also has
          This project will have an                                      significant sustainability
            appropriate community                                        and empowerment po-
            development compo-                                           tential that will continue
            nent and the appropri-                                       long after the mine‟s
            ate training and imple-                                      reserves have been
            mentation models will                                        depleted.
            be designed for both
            commercial and house-
            hold application.

DECEMBER 2010                                                                                                   PAGE 5

How are we doing on Health and Safety?
                                   Lots of incidents occur         safety, and that of their fellow
                                   within Evraz Highveld that      employees.
                                   are more people oriented
                                   than condition oriented.        A brief glance at Evraz High-
                                   We have to ask ourselves,       veld, including Mapochs
                                   are we missing a particular     Mine, safety statistics per
                                   ingredient to this person-      quarter of 2010 show:
                                   environment task formula?
                                                                   The top 3 types of injuries
                                    Each of us has a respon-       sustained up to 4 October
                                    sibility to be aware of        2010:
Although Health and Safety       what the hazards are, what
should be embedded within        the sources, actions and            Burns - 7                        Remember:
each task that is performed,     situations are that can bring       Amputations - 5
it is highly apparent that a     harm to us as we carry out                                           Never take
                                                                     (including partial amputa-
lot of ground still needs to     our tasks.                          tions)                           short cuts, no
be covered.                      Each employee has a duty            Fractures - 4
                                 to take care of their own                                            matter how


                                                                                                      they may

                                                                                                      seem to be.

                                                                                                      Your life is

                                                                                                      determine by

                                                                                                      your actions.

                                                                                                      Stay Safe!

With one fatality at the Mine      open is the line of commu-        New employees must be
this year, 19 lost time inju-      nication?                         oriented in their respective
ries, 41 non-lost time inju-                                         environments to
ries and 127 first aid cases       Observing and reporting           ensure proper
for Evraz Highveld as a            any unsafe conditions is          and safe work.
whole (to 4 October), it is        crucial for the safety of the
imperative that:                   person doing the job.             Employees
                                                                     must know who
  Supervisors and employ-          Proper tools and the cor-         their SHE repre-
  ees jointly ensure that risk     rect frame of mind are in         sentatives are,
  assessments are con-             place.     Being aware of         and how they
  ducted and discussed pro-        what you are doing plays a        can be of assis-
  actively.                        vital role in executing a         tance on Health
                                   task safely. Is it safe to        and Safety is-         Not the best place to take a
  Any unclear instructions         answer your cellphone             sues.
  are sorted out before a          whilst doing fault finding on                                   lunch break!
  task is executed - how           a live electrical panel?
              PAGE 6

                                Evraz Highveld Helps eMalahleni Water
                                On 12 November 2010, Mr Ndlovu,                    aligned by Evraz Highveld techni-
                                acting Head of Department Water                    cians using laser alignment equip-
                                and Sanitation from the eMalahleni                 ment.
Did you know?                   local     municipal                                                   The delivery and
 All raw water supplied
                                council requested                                                   discharge    water
to the city of eMalahleni       Evraz Highveld to                                                   pipes were rein-
and      surrounding            assist with the in-                                                 stalled.
communities         and         stallation of a wa-
industry is pumped              ter pump which                                                        New       bearing
from      Witbank dam                                                                               cooling water pipes
                                had been repaired.
pump station.        The
                                                                                                    were    assembled
pump       station   has        After the necessary
capacity for six pumps,                                                                             and installed.
                                planning and prepa-
of which four are
                                ration work, the
                                pump was installed                                                  On Thursday, 18
The four pumps in
                                by Evraz Highveld                                                   No ve mb er     the
operation are KSB WKN
350/2 two stage pumps
                                employees       on                                                  pump was started
capable of delivering           Wednesday, 17 No-                                                   by a municipal
approximately 450 litres        vember.                                                             employee, the per-
per second at          a                                                                            son responsible for
pressure of 17 bar.
                                The following work
                                was completed on                                                    the Witbank dam
When all four pumps                                                                                 pump station, in
a re    in   o p e ra t i o n
                                pump No. 2 at the
                                Witbank dam pump                                                    the presence of
simultaneously a total
quantity of 1 300 litres        station:                                                            the Evraz Highveld
per second can be                                                                                   foreman, Hennie
                                  Old coupling re-
pumped.                                                                                             Naude, the person
                                 moved from motor
The pumps are driven                                                                                responsible for the
by two 200V, 1045 kW                                                                                pump installation.
electric motors. Each            New coupling sup-
pump        weighs
                                 plied, machined in
approximately    three
tons.                            Evraz Highveld‟s central workshops
                                 and fitted to the motor and pump                Recommissioning of the pump was
                                 shafts.                                         successful and it was returned to ser-
                                                                                 vice by the municipal employee.
                                 The pump was installed into its posi-
                                 tion and the pump and motor was

                                       Suretha hits the right notes
                                       Suretha Burger has been employed         recently won Gold in the Eisteddfod mu-
                                       at Evraz Highveld since February         sic competition held in Middelburg, and
                                       2007, operating the company‟s            added this achievement to her trophy
                                       switchboard through Braille and the      won in New York for the Pop Division
                                       Jaws System, both aids for people        when she represented South Africa in
                                       with visual impairment.                  the international competition, where she
                                       Suretha‟s visual impairment means        also received a special award for the
                                       she can only distinguish between light   Broadway category.
                                       and dark.                                This follows gold medals in the Pop and
                                       Evraz Highveld‟s musical maestro         Broadway categories in the Talent for
                                                                                Africa national competition.

                   EVRAZ HIGHVELD NEWS
DECEMBER           2010                                                                                        PAGE        7

Furnace 7 Conversion to Open Slag Bath
Evraz Highveld recently             also forms part of the major    The design of the furnace is
approved the rebuild of             arguments for complete con-     however contracted to Hatch,
Furnace 7 to Open Slag              version to OSB operation at     who has designed all three
Bath (OSB) operation.               the Iron Plant.                 previous OSB furnaces.
This project forms part of the
company‟s strategy to in-           Project approval was
crease steel output, but more       given on 10 Septem-
importantly vanadium produc-        ber 2010, and the
tion.                               project design phase
Furnace 7 has reached the           started in October
end of its refractory campaign      2010. The complete
life and resulted in some run-      furnace design and
outs in the past 12 months,         procurement proc-
causing significant damage to       ess is aimed to be
the plant and suffering large       finished in February
losses in liquid metal output.      2011,     whereafter
                                    Furnace 7 will be
                                    switched out early
It was decided to convert the       March 2011.
furnace from Submerged Arc
Furnace (SAF) to OSB opera-
tion, while it will be switched     The construction phase is       Hatch has expertise in all
off for the refractory reline.      currently estimated to be 4.5                                     Furnace 7 is
                                                                    engineering fields and is also
The first Open Slag Bath fur-       months, stretching from         very familiar with the unique     expected to reach
nace was commissioned in            March 2011 until end July       OSB operation due to its in-      full production in
July 2005, the second in De-        2011. The total cost of the     volvement with New Zealand
cember 2006 and the latest in       project will be in excess of    Steel and Evraz Highveld,         August 2011 and
December 2007. Since the            R175 million with an approxi-   who are the only two compa-       to be the pinnacle
first furnace was commis-           mate payback of 29 months.      nies that utilise the OSB con-
                                                                                                      of the furnace
sioned, the OSB operation                                           figuration to produce pig iron.
has proved itself to increase                                                                         operations at
vanadium output as well as          The project team is consid-
                                    ered to be well balanced for                                      Evraz Highveld
liquid iron production. It also
reduces operational costs           such a large and strategic
due to reduced electrode            project. All the op-
paste consumption and a             erational and engi-
reduced labour intensive tap-       neering personnel
ping practice.                      were intimately in-
                                    volved in all three
                                    previous     conver-
One of the most significant         sions and therefore
savings that the OSB configu-       very familiar with
ration provides is the ability to   the project scope
utilise a cheaper coal. This        and typical risks. It
proved to be a valuable attrib-     is for this reason
ute, since coal in South Africa     that Evraz Highveld
will only increase in price as      decided to manage
the demand for high quality         the project from
coal increases.                     within its own re-
Reduced power consumption           sources.
                                                          Evraz Highveld Steel and Vanadium Limited
                                                          is a vertically integrated steel and vanadium
                                                          slag producer. Evraz Highveld obtains iron
        Evraz Highveld Steel and                          ore from its own Mapochs mine.
        Vanadium Limited
                                                          The Corporation strives to create superior
        Old Pretoria Road
        Portion 93 of the farm Schoongezicht              value and benefits on a sustainable basis
         308 JS                                           across economic cycles for all stakeholders,
        eMalahleni                                        by developing the business into a low cost
        Mpumalanga                                        steel and vanadium slag producer.
        Phone: 013 690 9911
        Fax: 013 690 9293                                 The Corporation has implemented an inte-
                                                          grated SHEQ management system in line
                                                          with the relevant standards and specifica-

                  Evraz New Leaders Programme
               Seven Evraz Highveld future leaders will be         Participants work on projects that they could be
               participating in the Evraz Executive Educa-         appointed to manage upon completion of the pro-
               tion Programme next year from March to Au-          gramme.
               gust. This is the first team from Evraz High-
     Roger     veld to take part, with more teams expected
                                                                   Launched two years ago, over 100 employees have
   Ferreira,   to participate in the future.
                                                                   since graduated. Our team will have the opportunity
    Kefilwe    The programme is designed to develop a new                                   to meet people from
   Mothupi,    generation of lead-                                                          Evraz globally and share
      Pavel    ers to ensure conti-                                                         best practices with them;
  Tatyanin,    nuity of manage-
                                                                                            broaden personal experi-
               ment for the com-                                                            ence, gain new knowl-
               pany, and to go                                                              edge and develop strate-
               someway in ad-                                                               gic planning, leadership,
               dressing the short-                                                          project management and
               age of efficient man-                                                        presentation skills; attend
  and Scott
               agers in production                                                          lectures by and discus-
       Mac-    and technical fields                                                         sions panels with the best
    Donald.    in the steel industry                                                        internationally-recognised
    Yolandi    in general.                                                                  business trainers and
 Bezuiden-     The key objective is                                                         experts; study at an inter-
       hout    to identify high-potential employees and help       nationally recognised business school; and present
  and Jaco     them grow to be successful managers who un-         their ideas and establish open communication with
               derstand and share the company‟s strategy and       Evraz Group top executives; and ultimately boost
               values, and who possess the necessary knowl-        their career prospects.
               edge and skills to contribute to Evraz‟s growth.